Revenue jumps for Austin’s Q2 Holdings

May 9, 2014
Austin American Statesman

Q2 Holdings, Austin’s newest public company, posted significant increases in revenue in the first quarter, while its net loss widened

The Austin-based company on Thursday reported first quarter revenue of $16.8 million, a 31 percent increase from the same quarter a year earlier

Q2 Holdings reported a net loss of $5.6 million, or 39 cents a share, compared with $2.5 million, or 22 cents a share, for the year-earlier quarter

In March, Q2 Holdings raised $101 million in an initial public offering by selling 7.8 million shares at $13 each

Founded in 2004, the company provides electronic banking services to more than 300 banks and credit unions. Q2 Holdings’ banking and credit union customers have 3.5 million users, a 33 percent increase over the number of users a year ago

Software sold by Q2 Holdings allows a bank’s customers to do anything that they would do at a bricks-and-mortar bank. That allows smaller banks to compete with the largest industry players, which is driving the company’s revenue growth, said CEO Matt Flake

The IPO will allow the company to continue expanding, Flake said, including plans to grow its workforce. Q2 Holdings currently has 450 employees, the majority of them in Austin. It plans to be above 500 workers by the end of the year and is hiring in areas including sales, marketing and development

“We’ve got a very strong balance sheet of $90 million-plus, which we will use to invest in products and in hiring people with diverse backgrounds that have curiosity in them and are willing to get behind a passion and a purpose,” Flake said

Q2 Holdings said it expects second quarter revenue of $17.9 million to $18.2 million. For fiscal 2014, Q2 Holdings said it expects revenue of $74 million to $75 million, compared with analysts’ expectations of $73.08 million

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