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Upturn AI SWOT - About
QTWO 
Q2 Holdings (QTWO)
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Upturn Advisory Summary
04/01/2025: QTWO (4-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
AI Based Fundamental Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Analysis of Past Performance
Type Stock | Historic Profit 136.33% | Avg. Invested days 77 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.95B USD | Price to earnings Ratio - | 1Y Target Price 107.79 |
Price to earnings Ratio - | 1Y Target Price 107.79 | ||
Volume (30-day avg) 896428 | Beta 1.63 | 52 Weeks Range 49.56 - 112.82 | Updated Date 04/1/2025 |
52 Weeks Range 49.56 - 112.82 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.64 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -5.53% | Operating Margin (TTM) -0.86% |
Management Effectiveness
Return on Assets (TTM) -2.12% | Return on Equity (TTM) -7.98% |
Valuation
Trailing PE - | Forward PE 36.76 | Enterprise Value 5043870019 | Price to Sales(TTM) 7.1 |
Enterprise Value 5043870019 | Price to Sales(TTM) 7.1 | ||
Enterprise Value to Revenue 7.24 | Enterprise Value to EBITDA 117.61 | Shares Outstanding 60728000 | Shares Floating 58233888 |
Shares Outstanding 60728000 | Shares Floating 58233888 | ||
Percent Insiders 3.07 | Percent Institutions 105.04 |
Analyst Ratings
Rating 4.13 | Target Price 102.71 | Buy 3 | Strong Buy 7 |
Buy 3 | Strong Buy 7 | ||
Hold 5 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Q2 Holdings
Company Overview
History and Background
Q2 Holdings, Inc. was founded in 2004. It provides cloud-based digital banking solutions for financial institutions. Initially focused on security solutions, Q2 evolved into a comprehensive digital banking platform. Key milestones include its IPO in 2014 and subsequent acquisitions to expand its product offerings.
Core Business Areas
- Digital Banking Platform: Provides online and mobile banking solutions, including account management, bill pay, funds transfer, and security features, primarily for community banks, credit unions and larger financial institutions.
- Lending Solutions: Offers digital lending platforms that streamline the lending process for financial institutions, enabling efficient loan origination, underwriting, and servicing.
- Data and Analytics: Provides data-driven insights and analytics to help financial institutions understand customer behavior, improve decision-making, and enhance their digital strategies.
Leadership and Structure
Q2 Holdings is led by CEO Matt Flake. The organizational structure includes functional departments such as sales, marketing, product development, engineering, and customer support, each reporting to senior management.
Top Products and Market Share
Key Offerings
- Q2 Digital Banking Platform: Provides core digital banking functionality. Market share is estimated to be around 15% of the community bank and credit union digital banking platform market. Competitors include Fiserv (FISV), Jack Henry & Associates (JKHY), and nCino (NCNO). Revenue is not broken out solely for this product.
- PrecisionLender: Cloud-based commercial lending platform acquired in 2019. Enables improved pricing and profitability of commercial loans. Exact market share data is unavailable. Competitors include Baker Hill and Sageworks (now part of Abrigo).
Market Dynamics
Industry Overview
The digital banking platform industry is experiencing significant growth, driven by increasing consumer demand for online and mobile banking services. Key trends include personalization, enhanced security, and integration with fintech solutions.
Positioning
Q2 Holdings positions itself as a provider of innovative and secure digital banking solutions for community and regional financial institutions. Its competitive advantages include its focus on customer experience, its comprehensive platform, and its strong security features.
Total Addressable Market (TAM)
The TAM for digital banking platforms is estimated to be in the billions of dollars. Q2 Holdings is well-positioned to capture a significant portion of this market due to its established customer base and expanding product portfolio.
Upturn SWOT Analysis
Strengths
- Strong customer relationships
- Comprehensive digital banking platform
- Focus on security
- Experienced management team
- Scalable cloud-based infrastructure
Weaknesses
- Dependence on financial institutions
- Slower revenue growth recently
- High customer concentration
- Limited international presence
Opportunities
- Expansion into new markets
- Development of new products and services
- Acquisitions of complementary businesses
- Increased adoption of digital banking
- Partnerships with fintech companies
Threats
- Increased competition
- Cybersecurity threats
- Economic downturn
- Changing regulatory landscape
- Consolidation in the financial services industry
Competitors and Market Share
Key Competitors
- FISV
- JKHY
- NCNO
- TEMN
Competitive Landscape
Q2 Holdings competes with larger, more established players in the digital banking platform market. Its advantages include its focus on community and regional financial institutions and its strong security features. Disadvantages include smaller scale and limited resources compared to its competitors.
Major Acquisitions
PrecisionLender
- Year: 2019
- Acquisition Price (USD millions): 510
- Strategic Rationale: Expanded Q2's lending solutions portfolio and provided access to a broader customer base in the commercial lending market.
Growth Trajectory and Initiatives
Historical Growth: Q2 Holdings experienced rapid growth in its early years, driven by the increasing adoption of digital banking. However, growth has slowed in recent years due to increased competition and market saturation.
Future Projections: Analysts project moderate revenue growth for Q2 Holdings in the coming years. Profitability is expected to improve as the company scales its operations and reduces costs.
Recent Initiatives: Recent initiatives include the launch of new lending solutions and investments in data analytics capabilities.
Summary
Q2 Holdings is a key player in the digital banking platform market, particularly serving community and regional financial institutions. While the company faces stiff competition, its focus on customer experience and security gives it an edge. Revenue growth has slowed, and profitability remains a challenge. Future success hinges on expanding its product offerings and penetrating new markets, while controlling costs.
Similar Companies
- FISV
- JKHY
- NCNO
- TEMN
- ADYX
- FNGO
Sources and Disclaimers
Data Sources:
- Company filings, Analyst reports, Industry publications, Third-party market research
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It does not constitute financial advice. Market share data are estimates and may vary. Financial data is for illustrative purposes.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Q2 Holdings
Exchange NYSE | Headquaters Austin, TX, United States | ||
IPO Launch date 2014-03-20 | CEO & Chairman of the Board Mr. Matthew P. Flake | ||
Sector Technology | Industry Software - Application | Full time employees 2476 | Website https://www.q2.com |
Full time employees 2476 | Website https://www.q2.com | ||
Q2 Holdings, Inc. provides digital solutions to financial institutions, financial technology companies, FinTechs, and alternative finance companies (Alt-FIs) in the United States. The company offers Digital Banking Platform, an end-to-end digital banking platform that supports its financial institution customers in their delivery of retail, SMB, and commercial functionalities across digital channels; and risk and fraud solutions that are designed to enhance the security and integrity of digital banking operations, including real-time security analytics and behavioral analysis, event-driven validation for non-transactional fraud management, electronic transaction dispute management, ACH file monitoring and risk reporting, and check and ACH positive pay systems for commercial users. It also provides Q2 Innovation Studio, an application program interface and software development kit based open technology platform that allows financial institution customers and other partners to deploy customized experiences and the financial services to end users; and Helix, a cloud-native, real-time core processing platform that combines the services and functionality for companies and financial institutions. In addition, the company offers digital lending and relationship pricing solutions that provide tools for managing commercial lending deposits and fee-based transactions comprising loan pricing and negotiation tools, treasury pricing and fee-based service structuring, AI assistance for relationship managers, end-to-end loan origination and servicing, automation of lending activities, and support services to diverse loan types and asset classes, as well as portfolio management services, such as analysis, performance, reporting, and trend identification. The company was formerly known as CBG Holdings, Inc. and changed its name to Q2 Holdings, Inc. in March 2013. Q2 Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.
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