Shares of Q2 Holdings sharply increase

Aug 11, 2014
Austin Business Journal

Shares of software maker Q2 Holdings Inc. increased nearly 20 percent Friday after it reported robust user growth and beat analysts’ second-quarter earnings projections released


The Austin-based company, which employs about 450 workers, develops software for the banking industry and raised $90 million with an initial public offering in March


Shares reached $15.76 in late-afternoon trading before settling at $15.24, up $2.35 per share, or 18 percent


Late Thursday, Q2 Holdings posted a second-quarter loss of $4.6 million, or 14 cents per share, on revenue of $19.1 million. That compared with a loss of $3.7 million, or 31 cents per share, on revenue of $14 million during the same period last year. It beat analysts’ estimates for non-GAAP numbers, reporting an 11 cent loss per share compared with analysts’ prediction of a 15-cent loss. Q2 Holdings (NYSE: QTWO) released the financial results after the markets closed


Q2 Holdings also finished the three-month period ended June 30 with about 3.9 million registered users, a 36 percent year-over-year growth and 13 percent quarter-over-quarter growth


The company also boosted its full-year revenue guidance, projecting total 2014 revenue between $76.2 million and $76.8 million. If it hits that, year-over-year growth will be about 35 percent, according to a filing with the U.S. Securities and Exchange Commission


Q2ebanking was formed as CBG Holdings Inc. in 2005 and changed its name to Q2 Holdings in March 2013. Its operating subsidiary is known as Q2 Software Inc


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