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Q2 Holdings, Inc. (Nasdaq: QTWO) | Company Profile, History, Competitors

 

Q2 Holdings, Inc. (NASDAQ: QTWO) is a provider of cloud-based virtual banking solutions to regional and community banks. It was founded in 2005 and headquartered in Austin TX.

Q2 Holdings provides services to regional banks including virtual banking, account management, check deposit, customer support and customer analytics. Q2 offers an integrated service across desktop and mobile platforms.

Business Model

Q2 provides integrated delivery of virtual banking tools across voice, online, mobile and tablet. For the customer, it offers an unified interface and a single point of contact. Below are Q2 product offerings.
  • Q2Online: Browser-based virtual banking solution, offering services like account access, check balancing, bill pay, recurring payments, online security and other services. Q2 also supports Automatic Clearing House (ACH) bank transfers and payroll, state, federal tax payments and domestic/international fires.
  • Q2themes: Announces financial institutions to provide personalized themes for banking customers, including features like languages, font styles and designs.
  • Q2mobility App: Offers banking customers a mobile banking experience on smartphones and tablets. Customers can transfer funds, make payments, view e-statements and perform general banking services. The app is offered on Android and iOS operating systems.
  • Q2mobile Check Deposits: Allows banking customers to deposit a check remotely using a camera-enabled smartphone or tablet
  • Q2text: Allows banking customers to interact with Q2 by texting/chatbox
  • Q2voice: Allows banking customers to conduct banking activity over the phone through voice banking. Also, provides customers with alerts by telephone.
  • Q2claritiy: Provides financial institutions with analytics on their customers including service utilization, interactions and usage.
  • Q2 Risk & Fraud Detection: Helps financial institutions spot suspect or fraudulent transactions.

Pricing

Q2 sells products on a subscription model. They are structured as term licenses for five to six years. Subscription fees are based on the number of offerings purchased, number of banking customers, and number of bill pay transactions processed. Subscription fees are billed monthly although some banking customers purchase for longer subscription periods.

History

The company was founded in 2005. In 2013, it changed its name from Q2ebanking to Q2 Holdings, Inc. In 2015, Q2 acquired Centrix Solutions, a provider of fraud detection tools which the company has partnered since 2007.

Competitors

Q2's main virtual banking competitors are Bottomline, First Data and ACI Worldwide. QTWO also competes against Fiserv, Fidelity National Information Services and Jack Henry in core processing.

Management

Matthew P. Flake (CEO): Matthew Flake serves as CEO since 2013. Prior, he served as VP Sles and Marketing at Q2.

Jennifer N. Harris (CFO): Jennifer Harris serves as CFO since 2013. Prior, she was Controller at Q2. She had also worked at Blackbaud, Convio and Motive.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $57 
$79 
$109 
$150 
$194 
 Gross Profit $21 
$33 
 $50 
 $73 
 $95 
 Operating Profit($17)($19)($25)($36)($27)
 Net Income($18)($20)($25)($36)($26)
 EPS($0.77)($1.51)($0.67)($0.92)($0.63)


Q2 Holdings, Inc.
 
  Ticker     NASDAQ: QTWO
  Industry Technology
  Founded 2005
  Headquarters Austin, TX
  Revenues
$194mm (2017)
  Employees 742 (2017)
  Website q2ebanking.com