Q2 Holdings Q4 Earnings: What To Expect

Radek Strnad /
2022/02/14 5:48 am EST

Banking software provider Q2 (NYSE:QTWO) will be announcing earnings results tomorrow after market hours. Here's what to expect.

Last quarter Q2 Holdings reported revenues of $126.7 million, up 22% year on year, in line with analyst expectations. It was a decent quarter for the company with revenue guidance for the next quarter roughly in line with what analysts were expecting.

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This quarter analysts are expecting Q2 Holdings' revenue to grow 20.6% year on year to $131.5 million, slowing down from the 25.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.

Q2 Holdings Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Q2 Holdings's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Unity (NYSE:U) delivered top-line growth of 43.3% year on year, beating analyst estimates by 6.81% and Doximity (NYSE:DOCS) reported revenues up 66.7% year on year, exceeding estimates by 13.4%. Unity traded up 17.5% on results, Doximity was up 24%. Read our full analysis of Unity's results here and Doximity's results here.

Investors in the vertical software segment have had steady hands going into the earnings, with the stocks up on average 1.62% over the last month. Q2 Holdings is up 1.34% during the same time, and is heading into the earnings with with analyst price target of $113.4, compared to share price of $63.28.

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The author has no position in any of the stocks mentioned.