Business Wire | Aug 5, 2020 04:30PM EDT

Q2 Holdings, Inc. Announces Second Quarter 2020 Financial Results

Aug. 05, 2020

AUSTIN, Texas--(BUSINESS WIRE)--Aug. 05, 2020--Q2 Holdings, Inc. (NYSE:QTWO), a leading provider of digital transformation solutions for banking and lending, today announced results for its second quarter ending June 30, 2020.

GAAP Results for the Second Quarter 2020

* Revenue for the second quarter of $97.6 million, up 26 percent year-over-year and up 6 percent from the previous quarter.

* GAAP gross margin for the second quarter of 45.5 percent, down from 48.4 percent for the prior-year quarter and up from 42.5 percent from the first quarter of 2020.

* GAAP net loss for the second quarter of $39.0 million, compared to GAAP net losses of $17.3 million for the prior-year quarter and $34.1 million from the first quarter of 2020.

Non-GAAP Results for the Second Quarter 2020

* Non-GAAP revenue for the second quarter of $98.9 million, up 27 percent year-over-year and up 5 percent from the previous quarter.

* Non-GAAP gross margin for the second quarter of 53.9 percent, up from 52.8 percent for the prior-year quarter and up from 53.1 percent for the first quarter of 2020.

* Adjusted EBITDA for the second quarter of $8.1 million, compared to $3.2 million for the prior-year quarter and negative $0.1 million for the first quarter of 2020.

For a reconciliation of our GAAP to non-GAAP results, please see the tables below.

"Despite general market uncertainty related to the COVID-19 pandemic, we had a solid quarter to close out the first half of the year," said Matt Flake, CEO of Q2. "We were able to land several Tier 1 customers amidst a challenging buying environment, in addition to a record number of renewals for our digital banking business. I was pleased with our strong user growth in the quarter, which I believe is an encouraging sign that we're well-equipped to continue operating in a remote model as long as is necessary. While we remain cautious in our second half outlook based on a typical seasonally slower third quarter and uncertainty around the ongoing challenges with the global pandemic and upcoming U.S. election, we have proven that we can continue to serve customers and grow our business as we work through these unprecedented challenges together."

Second Quarter Highlights

* Signed a Tier 1 digital banking contract with an $11 billion bank on the West Coast for our retail and commercial solutions with an existing Centrixcustomer.

* Signed a new Tier 1 digital banking contract for our retail and commercial solutions with a $5 billion bank in the Midwest.

* Signed two new Tier 1 PrecisionLender contracts, including a $12 billion bank in the Midwest and a $10 billion bank in the Northeast.

* Signed a new Tier 1 Cloud Lending contract with a European bank, representing the largest EMEA deal in Cloud Lending's history.

* Exited the second quarter with approximately 16.3 million registered users on the Q2 platform, representing 20 percent year-over-year and 6 percent sequential growth from the previous quarter.

* Completed registered common stock offering in May, raising net proceeds of more than $311 million.

"We are pleased to have delivered second quarter results, which exceeded the high end of our non-GAAP revenue and adjusted EBITDA guidance," said Jennifer Harris, CFO of Q2. "The revenue achievement was bolstered in part by the success-based fees associated with funded applications processed through our PPP solution in the quarter. We also ended the quarter with cash, cash equivalents and investments of $388.9 million as a result of the capital raise in the quarter, which we believe effectively positions us to capitalize on the long-term market opportunity."

Financial Outlook

As of August 5, 2020, Q2 Holdings is providing guidance for its third quarter of 2020 and revised guidance for its full-year 2020, which represents Q2 Holdings' current estimates of the anticipated impacts of the COVID-19 pandemic on Q2 Holdings' operations and financial results. The financial information below represents forward-looking non-GAAP financial information, including an estimate of non-GAAP revenue and adjusted EBITDA. GAAP net loss is the most comparable GAAP measure to adjusted EBITDA. Adjusted EBITDA differs from GAAP net loss in that it excludes items such as depreciation and amortization, stock-based compensation, acquisition-related costs, interest, income taxes, unoccupied lease charges, partnership termination charges, and the impact to deferred revenue from purchase accounting. Q2 Holdings is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Q2 Holdings has not provided guidance for GAAP net loss or a reconciliation of the foregoing forward-looking adjusted EBITDA guidance to GAAP net loss. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

Q2 Holdings is providing guidance for its third quarter of 2020 as follows:

* Total Non-GAAP revenue of $102.0 million to $104.0 million, which would represent year-over-year growth of 28 percent to 30 percent.

* Adjusted EBITDA of $6.5 million to $7.5 million.

"Our overachievement during the quarter, combined with our proven ability to operate effectively in a remote environment and quickly develop and deliver services, like our PPP solution, to our customers provides us with the confidence to raise our full-year revenue and adjusted EBITDA guidance. As we move into the back half of the year, we will continue to exercise caution in spending while putting ourselves in a position to accelerate investments as our customers and prospects regain confidence in their purchasing decisions," said Harris.

Q2 Holdings is providing guidance for the full-year 2020 as follows:

* Total Non-GAAP revenue of $398.5 million to $402.5 million, which would represent year-over-year growth of 26 percent to 27 percent.

* Adjusted EBITDA of $21.0 million to $23.0 million, representing 5 percent to 6 percent of non-GAAP revenue for the year.

Conference Call Details

Date: August 6, 2020

Time: 8:30 a.m. EDT

Hosts: Matt Flake, CEO / Jennifer Harris, CFO

Conference ID: 7368366

Registration: http://www.directeventreg.com/registration/event/7368366

Please join the conference call at least 10 minutes early to ensure the line is connected. A live webcast of the conference call and financial results will be accessible from the investor relations section of the Q2 website at http://investors.q2.com/.

An archived replay of the webcast will be available on this website on a temporary basis shortly after the call.

About Q2 Holdings, Inc.

Q2 is a financial experience company dedicated to providing digital banking and lending solutions to banks, credit unions, alternative finance, and fintech companies in the U.S. and internationally. With comprehensive end-to-end solution sets, Q2 enables its partners to provide cohesive, secure, data-driven experiences to every account holder - from consumer to small business and corporate. Headquartered in Austin, Texas, Q2 has offices throughout the world and is publicly traded on the NYSE under the stock symbol QTWO. To learn more, please visit Q2.com.

Use of Non-GAAP Measures

Q2 uses the following non-GAAP financial measures: non-GAAP revenue; adjusted EBITDA; non-GAAP gross margin; non-GAAP gross profit; non-GAAP sales and marketing expense; non-GAAP research and development expense; non-GAAP general and administrative expense; non-GAAP operating expense; non-GAAP operating income (loss); non-GAAP net income; non-GAAP net income per share; and pro forma weighted-average diluted number of common shares outstanding. Management believes that these non-GAAP financial measures are useful measures of operating performance because they exclude items that Q2 does not consider indicative of its core performance.

In the case of non-GAAP revenue, Q2 adjusts revenue to exclude the impact to deferred revenue from purchase accounting adjustments. In the case of adjusted EBITDA, Q2 adjusts net loss for such items as interest, taxes, depreciation and amortization, stock-based compensation, acquisition-related costs, unoccupied lease charges, partnership termination charges and the impact to deferred revenue from purchase accounting. In the case of non-GAAP gross margin and non-GAAP gross profit, Q2 adjusts gross profit and gross margin for stock-based compensation amortization of acquired technology, acquisition-related costs, and the impact to deferred revenue from purchase accounting. In the case of non-GAAP sales and marketing expense, non-GAAP research and development expense, and non-GAAP general and administrative expense, Q2 adjusts the corresponding GAAP expense to exclude stock-based compensation. Non-GAAP Operating Expense is calculated by taking the sum of non-GAAP sales and marketing expense, non-GAAP research and development expense, and non-GAAP general and administrative expense. In the case of non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP net income (loss) per share, Q2 adjusts operating loss and net loss, respectively, for stock-based compensation, acquisition-related costs, amortization of acquired technology, amortization of acquired intangibles, unoccupied lease charges, partnership termination charges, and the impact to deferred revenue from purchase accounting, and with respect to non-GAAP net income, amortization of debt discount and issuance costs. In the case of pro forma diluted weighted-average number of common shares outstanding, we adjust diluted weighted-average number of common shares outstanding by the weighted-average effect of potentially dilutive shares.

There are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income (loss). As a result, these non-GAAP financial measures have limitations and should be considered in addition to, not as a substitute for or superior to, the closest GAAP measures, or other financial measures prepared in accordance with GAAP. A reconciliation to the closest GAAP measures of these non-GAAP measures is contained in tabular form on the attached unaudited condensed consolidated financial statements.

Q2's management uses these non-GAAP measures as measures of operating performance; to prepare Q2's annual operating budget; to allocate resources to enhance the financial performance of Q2's business; to evaluate the effectiveness of Q2's business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of Q2's results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communication with our board of directors concerning Q2's financial performance.

Forward-looking Statements

This press release contains forward-looking statements, including statements about: the impacts of and uncertainty surrounding the COVID-19 pandemic on Q2 and its customers, and Q2's response thereto; Q2's ability to continue to operate in a remote model; seasonal impacts on the third quarter; uncertainty surrounding the upcoming election; Q2's ability to continue to serve customers and grow its business; the transition to digital financial solutions and Q2's market opportunity; Q2's ability to quickly develop and deliver services; expected expenses in the latter half of 2020; Q2's ability to position itself to accelerate investments as customers and prospects regain confidence; and, Q2's quarterly and annual financial guidance. The forward-looking statements contained in this press release are based upon Q2's historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ materially from those described herein include the adverse impacts of the COVID-19 pandemic on Q2's business operations and on global economic and financial markets, including on Q2's customers, partners and suppliers and employees and business, as well as risks related to: (a) the risk of increased competition in its existing markets and as it enters new sections of the market with Tier 1 customers, new markets with Alt-FIs and fintechs and new products and services; (b) the risk that the market for Q2's solutions does not grow as anticipated, in particular with respect to Tier 1 customers and Alt-FI and fintech customers; (c) the risk that Q2's increased focus on selling to larger Tier 1 customers may result in greater uncertainty and variability in Q2's business and sales results; (d) the risk that changes in Q2's market, business or sales organization negatively impacts its ability to sell its products and services; (e) the challenges and costs associated with selling, implementing and supporting Q2's solutions, particularly for larger customers with more complex requirements and longer implementation processes, including risks related to the timing and predictability of sales of Q2's solutions and the impact that the timing of bookings may have on Q2's revenue and financial performance in a period; (f) the risk that errors, interruptions or delays in Q2's products or services or Web hosting negatively impacts Q2's business and sales; (g) risks associated with data breaches and breaches of security measures within Q2's products, systems and infrastructure and the resultant harm to Q2's business and its ability to sell its products and services; (h) the impact that a slowdown in the economy, financial markets and credit markets may have on Q2's customers and Q2's business sales cycles, prospects and customers' spending decisions and timing of implementation decisions, particularly in regions where a significant number of Q2's customers are concentrated; (i) the difficulties and risks associated with developing and selling complex new solutions and enhancements with the technical and regulatory specifications and functionality required by customers and governmental authorities; (j) the risks inherent in technology and implementation partnerships that could cause harm to Q2's business; (k) the difficulties and costs Q2 may encounter with complex implementations of its solutions and the resulting impact on reputation and the timing of its revenue from any delayed implementations; (l) the risk that Q2 will not be able to maintain historical contract terms such as pricing and duration; (m) the risks associated with managing growth and the challenges associated with improving operations and hiring, retaining and motivating employees to support such growth; (n) the risk that modifications or negotiations of contractual arrangements will be necessary during Q2's implementations of its solutions or the general risks associated with the complexity of Q2's customer arrangements; (o) the risks associated with integrating acquired companies and successfully selling and maintaining their solutions; (p) the risks associated with anticipated higher operating expenses in 2020 and beyond; (q) litigation related to intellectual property and other matters and any related claims, negotiations and settlements; (r) the risks associated with further consolidation in the financial services industry; (s) risks associated with selling Q2 solutions internationally; and (t) the risk that Q2 debt repayment obligations may adversely affect its financial condition and cash flows from operations in the future and that Q2 may not be able to obtain capital when desired or needed on favorable terms.

Additional information relating to the uncertainty affecting the Q2 business is contained in Q2's filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Q2's website at http://investors.q2.com/. These forward-looking statements represent Q2's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Q2 disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

Q2 Holdings, Inc.Condensed Consolidated Balance Sheets(in thousands) June 30, December, 31 2020 2019

(unaudited) (unaudited)Assets Current assets: Cash and cash equivalents $ 376,257 $ 100,094

Restricted cash 3,464 3,468

Investments 12,687 32,325

Accounts receivable, net 33,585 22,442

Contract assets, current portion, net 1,049 872

Prepaid expenses and other current assets 8,862 6,354

Deferred solution and other costs, current portion 18,815 15,609

Deferred implementation costs, current portion 9,820 5,171

Total current assets 464,539 186,335

Property and equipment, net 50,298 39,252

Right of use assets 33,282 35,388

Deferred solution and other costs, net of current 31,328 29,220portionDeferred implementation costs, net of current 15,686 15,848portionIntangible assets, net 203,986 223,861

Goodwill 462,274 462,023

Contract assets, net of current portion and 18,028 15,189allowanceOther long-term assets 2,158 2,318

Total assets $ 1,281,579 $ 1,009,434

Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued liabilities $ 42,860 $ 65,976

Deferred revenues, current portion 68,172 57,850

Lease liabilities, current portion 8,812 9,140

Total current liabilities 119,844 132,966

Convertible notes, net of current portion 435,880 424,784

Deferred revenues, net of current portion 33,089 32,954

Lease liabilities, net of current portion 33,707 36,079

Other long-term liabilities 11,567 3,239

Total liabilities 634,087 630,022

Stockholders' equity: Common stock 5 5

Additional paid-in capital 964,185 622,692

Accumulated other comprehensive income (loss) (52) 14

Accumulated deficit (316,646) (243,299)

Total stockholders' equity 647,492 379,412

Total liabilities and stockholders' equity $ 1,281,579 $ 1,009,434



Q2 Holdings, Inc.Condensed Consolidated Statements of Comprehensive Loss(in thousands, except per share data) Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019

(unaudited) (unaudited) (unaudited) (unaudited) Revenues^ (1) $ 97,581 $ 77,646 $ 189,961 $ 148,942

Cost of revenues^ (2) 53,203 40,052 106,310 77,236(3)Gross profit 44,378 37,594 83,651 71,706

Operating expenses:Sales and marketing ^ 16,310 15,866 36,194 31,671(2)Research and 23,642 19,118 48,600 36,775development ^(2)General and 17,203 14,079 36,313 27,939administrative^ (2)Acquisition related 1,127 1,977 (840) 4,695costs^ (4)Amortization of 4,491 905 8,982 2,120acquired intangiblesPartnership 13,244 - 13,244 -termination chargesUnoccupied lease 668 - 668 -charges ^(5)Total operating 76,685 51,945 143,161 103,200expensesLoss from operations (32,307) (14,351) (59,510) (31,494)

Other income (6,599) (3,217) (13,064) (5,424)(expense), netLoss before income (38,906) (17,568) (72,574) (36,918)taxesBenefit from (65) 237 (505) 276(provision for)income taxesNet loss $ (38,971) $ (17,331) $ (73,079) $ (36,642)

Other comprehensiveloss:Unrealized gain(loss) on 108 97 (14) 210available-for-saleinvestmentsForeign currency 3 (22) (52) (10)translationadjustmentComprehensive loss $ (38,860) $ (17,256) $ (73,145) $ (36,442)

Net loss per commonshare:Net loss per common $ (0.76) $ (0.39) $ (1.46) $ (0.83)share, basic anddilutedWeighted averagecommon shares 51,241 44,978 49,911 44,382outstanding, basicand diluted ^(1) Includes deferred revenue reduction from purchase accounting of $1.3million and $2.8 million for the three and six months ended June 30, 2020,respectively.



^(2) Includesstock-basedcompensation expenseas follows:

Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019

Cost of revenues $ 1,904 $ 1,428 $ 5,312 $ 2,976

Sales and marketing 1,390 1,596 4,144 3,402

Research and 3,109 2,473 6,879 4,485developmentGeneral and 4,380 4,072 8,984 7,602administrativeTotal stock-based $ 10,783 $ 9,569 $ 25,319 $ 18,465compensation expense ^(3) Includes amortization of acquired technology of $5.5 million and $1.9million for the three months ended June 30, 2020 and 2019, respectively, and$10.9 million and $3.6 million for the six months ended June 30, 2020 and2019, respectively.

^(4) The six months ended June 30, 2020 includes a $2.9 million reduction toestimated contingent consideration as a result of the actual contingentconsideration calculated as of the final measurement date of March 31, 2020.

^(5) Unoccupied lease charges include costs related to the early exit fromour California facilities, partially offset by anticipated sublease incomefrom these facilities for the three and six months ended June 30, 2020.



Q2 Holdings, Inc.Condensed Consolidated Statements of Cash Flows(in thousands) Six Months Ended June 30, 2020 2019

(unaudited) (unaudited)Cash flows from operating activities:Net loss $ (73,079) $ (36,642)

Adjustments to reconcile net loss to net cash fromoperating activities:Amortization of deferred implementation, solution and 8,608 6,056other costsDepreciation and amortization 26,046 11,796

Amortization of debt issuance costs 945 545

Amortization of debt discount 10,177 5,230

Amortization of premiums on investments 83 183

Stock-based compensation expenses 26,065 19,040

Deferred income taxes 311 (347)

Other non-cash charges 940 (112)

Changes in operating assets and liabilities (27,310) (24,428)

Net cash used in operating activities (27,214) (18,679)

Cash flows from investing activities:Net maturities of investments 19,556 34,196

Purchases of property and equipment (14,775) (10,864)

Purchases of intangible assets - (288)

Capitalization of software development costs (398) -

Net cash provided by investing activities 4,383 23,044

Cash flows from financing activities:Proceeds from issuance of common stock, net of 311,636 195,581issuance costsProceeds from issuance of convertible notes, net of - 307,288issuance costsPurchase of capped call transactions - (40,765)

Proceeds from exercise of stock options to purchase 4,216 8,422common stockPayment of contingent consideration (16,862) -

Net cash provided by financing activities 298,990 470,526

Net increase in cash, cash equivalents, and 276,159 474,891restricted cashCash, cash equivalents, and restricted cash, 103,562 110,156beginning of periodCash, cash equivalents, and restricted cash, end of $ 379,721 $ 585,047period

Q2 Holdings, Inc.Reconciliation of GAAP to Non-GAAP Measures(in thousands, except per share data) Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019

(unaudited) (unaudited) (unaudited) (unaudited) GAAP revenue $ 97,581 $ 77,646 $ 189,961 $ 148,942

Deferred revenue reduction 1,321 - 2,763 -from purchase accounting

Non-GAAP revenue $ 98,902 $ 77,646 $ 192,724 $ 148,942

GAAP gross profit $ 44,378 $ 37,594 $ 83,651 $ 71,706

Stock-based compensation 1,904 1,428 5,312 2,976

Amortization of acquired 5,452 1,941 10,929 3,573technologyAcquisition related costs 233 71 491 71

Deferred revenue reduction 1,321 - 2,763 -from purchase accountingNon-GAAP gross profit $ 53,288 $ 41,034 $ 103,146 $ 78,326

Non-GAAP gross margin:Non-GAAP gross profit $ 53,288 $ 41,034 $ 103,146 $ 78,326

Non-GAAP revenue 98,902 77,646 192,724 148,942

Non-GAAP gross margin 53.9% 52.8% 53.5% 52.6%

GAAP sales and marketing $ 16,310 $ 15,866 $ 36,194 $ 31,671expenseStock-based compensation (1,390) (1,596) (4,144) (3,402)

Non-GAAP sales and $ 14,920 $ 14,270 $ 32,050 $ 28,269marketing expense GAAP research and $ 23,642 $ 19,118 $ 48,600 $ 36,775development expenseStock-based compensation (3,109) (2,473) (6,879) (4,485)

Non-GAAP research and $ 20,533 $ 16,645 $ 41,721 $ 32,290development expense GAAP general and $ 17,203 $ 14,079 $ 36,313 $ 27,939administrative expenseStock-based compensation (4,380) (4,072) (8,984) (7,602)

Non-GAAP general and $ 12,823 $ 10,007 $ 27,329 $ 20,337administrative expense GAAP operating loss $ (32,307) $ (14,351) $ (59,510) $ (31,494)

Deferred revenue reduction 1,321 - 2,763 -from purchase accountingPartnership termination 13,244 - 13,244 -chargesStock-based compensation 10,783 9,569 25,319 18,465

Acquisition related costs 1,361 2,048 (348) 4,766

Amortization of acquired 5,452 1,941 10,929 3,573technologyAmortization of acquired 4,491 905 8,982 2,120intangiblesUnoccupied lease charges 668 - 668 -

Non-GAAP operating income $ 5,013 $ 112 $ 2,047 $ (2,570)(loss) GAAP net loss $ (38,971) $ (17,331) $ (73,079) $ (36,642)

Deferred revenue reduction 1,321 - 2,763 -from purchase accountingPartnership termination 13,244 - 13,244 -chargesStock-based compensation 10,783 9,569 25,319 18,465

Acquisition related costs 1,361 2,048 (348) 4,766

Amortization of acquired 5,452 1,941 10,929 3,573technologyAmortization of acquired 4,491 905 8,982 2,120intangiblesUnoccupied lease charges 668 - 668 -

Amortization of debt 5,632 3,227 11,122 5,774discount and issuancecostsNon-GAAP net income (loss) $ 3,981 $ 359 $ (400) $ (1,944)

Reconciliation fromdiluted weighted-averagenumber of common sharesas reported to pro formadiluted weighted averagenumber of common sharesDiluted weighted-average 51,241 44,978 49,911 44,382number of common shares,as reportedWeighted-average effect of 1,870 2,628 - -potentially dilutivesharesPro forma diluted 53,111 47,606 49,911 44,382weighted-average number ofcommon shares Calculation of non-GAAPincome (loss) per share:Non-GAAP net income (loss) $ 3,981 $ 359 $ (400) $ (1,944)

Pro forma diluted 53,111 47,606 49,911 44,382weighted-average number ofcommon sharesNon-GAAP net income (loss) $ 0.07 $ 0.01 $ (0.01) $ (0.04)per share Reconciliation of GAAP netloss to adjusted EBITDA:GAAP net loss $ (38,971) $ (17,331) $ (73,079) $ (36,642)

Depreciation and 13,029 5,975 26,046 11,796amortizationStock-based compensation 10,783 9,569 25,319 18,465

(Benefit from) provision 65 (237) 505 (276)for income taxesInterest (income) expense, 6,584 3,173 12,859 5,351netAcquisition related costs 1,361 2,048 (348) 4,766

Unoccupied lease charges 668 - 668 -

Deferred revenue reduction 1,321 - 2,763 -from purchase accountingPartnership termination 13,244 - 13,244 -chargesAdjusted EBITDA $ 8,084 $ 3,197 $ 7,977 $ 3,460



Q2 Holdings, Inc.Reconciliation of GAAP to Non-GAAP Revenue Guidance(in thousands) Q3 2020 Guidance Full Year 2020 Guidance Low High Low High $ $ $ $GAAP revenue 101,055 103,055 394,150 398,150

Deferred revenue reduction from 945 945 4,350 4,350 purchase accounting $ $ $ $Non-GAAP revenue 102,000 104,000 398,500 402,500



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CONTACT: MEDIA CONTACT: Tiffany Francis Q2 Holdings, Inc. O: 737-236-3309 tiffany.francis@q2.com

CONTACT: INVESTOR CONTACT: Josh Yankovich Q2 Holdings, Inc. O: 512-682-4463 josh.yankovich@q2.com