Latest news with #HankSeale
Yahoo
08-05-2025
- Business
- Yahoo
Q2 Holdings's (NYSE:QTWO) Q1: Beats On Revenue, Stock Soars
Banking software provider Q2 (NYSE:QTWO) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 14.6% year on year to $189.7 million. Guidance for next quarter's revenue was better than expected at $193 million at the midpoint, 0.8% above analysts' estimates. Its GAAP profit of $0.07 per share was significantly above analysts' consensus estimates. Is now the time to buy Q2 Holdings? Find out in our full research report. Q2 Holdings (QTWO) Q1 CY2025 Highlights: Revenue: $189.7 million vs analyst estimates of $186.6 million (14.6% year-on-year growth, 1.7% beat) EPS (GAAP): $0.07 vs analyst estimates of -$0.01 (significant beat) Adjusted Operating Income: $32.7 million vs analyst estimates of $29.96 million (17.2% margin, 9.1% beat) The company slightly lifted its revenue guidance for the full year to $779.5 million at the midpoint from $775.5 million EBITDA guidance for the full year is $172.5 million at the midpoint, above analyst estimates of $168.1 million Operating Margin: 1.2%, up from -8.6% in the same quarter last year Free Cash Flow Margin: 19.9%, similar to the previous quarter Market Capitalization: $4.94 billion Company Overview Founded in 2004 by Hank Seale, Q2 (NYSE:QTWO) offers software-as-a-service that enables small banks to provide online banking and consumer lending services to their clients. Sales Growth Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Q2 Holdings grew its sales at a 11.7% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds. Q2 Holdings Quarterly Revenue This quarter, Q2 Holdings reported year-on-year revenue growth of 14.6%, and its $189.7 million of revenue exceeded Wall Street's estimates by 1.7%. Company management is currently guiding for a 11.6% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 10.4% over the next 12 months, similar to its three-year rate. Despite the slowdown, this projection is above the sector average and implies the market is forecasting some success for its newer products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.
Yahoo
16-04-2025
- Business
- Yahoo
Vertical Software Stocks Q4 Results: Benchmarking Q2 Holdings (NYSE:QTWO)
As the Q4 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the vertical software industry, including Q2 Holdings (NYSE:QTWO) and its peers. Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company. The 14 vertical software stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 3.3% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.1% since the latest earnings results. Founded in 2004 by Hank Seale, Q2 (NYSE:QTWO) offers software-as-a-service that enables small banks to provide online banking and consumer lending services to their clients. Q2 Holdings reported revenues of $183 million, up 12.9% year on year. This print exceeded analysts' expectations by 1.7%. Overall, it was a very strong quarter for the company with EBITDA guidance for next quarter exceeding analysts' expectations. 'We delivered strong fourth-quarter results to cap off a great year,' said Matt Flake, chairman and CEO, Q2. The stock is down 19.1% since reporting and currently trades at $74.51. Is now the time to buy Q2 Holdings? Access our full analysis of the earnings results here, it's free. Founded by the former head of Google's enterprise business, Upstart (NASDAQ:UPST) is an AI-powered lending platform facilitating loans for banks and consumers. Upstart reported revenues of $219 million, up 56.1% year on year, outperforming analysts' expectations by 20.1%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts' expectations. Upstart delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 40.8% since reporting. It currently trades at $39.84. Is now the time to buy Upstart? Access our full analysis of the earnings results here, it's free. Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC's (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing. PTC reported revenues of $565.1 million, up 2.7% year on year, exceeding analysts' expectations by 1.9%. Still, it was a softer quarter as it posted full-year EPS guidance missing analysts' expectations. As expected, the stock is down 23.1% since the results and currently trades at $145.68. Read our full analysis of PTC's results here. Used to manage the multi-year expansion of the Panama Canal that began in 2007, Procore (NYSE:PCOR) offers a software-as-service project, finance, and quality management platform for the construction industry. Procore reported revenues of $302 million, up 16.2% year on year. This number beat analysts' expectations by 1.4%. Aside from that, it was a weaker quarter as it recorded full-year guidance of slowing revenue growth. The company added 113 customers to reach a total of 17,088. The stock is down 20.1% since reporting and currently trades at $60. Read our full, actionable report on Procore here, it's free. With the name chosen to reflect the idea of a repeating pattern or rhythm in electronic design, Cadence Design Systems (NASDAQ:CDNS) offers a software-as-a-service platform for semiconductor engineering and design. Cadence reported revenues of $1.36 billion, up 26.9% year on year. This result was in line with analysts' expectations. More broadly, it was a mixed quarter as it also produced a solid beat of analysts' billings estimates but full-year revenue guidance slightly missing analysts' expectations. The stock is down 13.7% since reporting and currently trades at $259.21. Read our full, actionable report on Cadence here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
04-04-2025
- Business
- Yahoo
3 Russell 2000 Stocks Facing Headwinds
The Russell 2000 is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial. Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here are three Russell 2000 stocks to steer clear of and some alternatives to watch instead. Market Cap: $4.59 billion Founded in 2004 by Hank Seale, Q2 (NYSE:QTWO) offers software-as-a-service that enables small banks to provide online banking and consumer lending services to their clients. Why Are We Hesitant About QTWO? 11.7% annual revenue growth over the last three years was slower than its software peers Bad unit economics and steep infrastructure costs are reflected in its gross margin of 50.9%, one of the worst among software companies Suboptimal cost structure is highlighted by its history of operating losses At $70.01 per share, Q2 Holdings trades at 6.3x forward price-to-sales. If you're considering QTWO for your portfolio, see our FREE research report to learn more. Market Cap: $3.06 billion Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ:LAUR) is a global network of higher education institutions. Why Does LAUR Fall Short? Demand for its offerings was relatively low as its number of enrolled students has underwhelmed Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Low returns on capital reflect management's struggle to allocate funds effectively Laureate Education is trading at $19.50 per share, or 14.5x forward price-to-earnings. Check out our free in-depth research report to learn more about why LAUR doesn't pass our bar. Market Cap: $1.03 billion Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE:SPHR) hosts live entertainment events and distributes content across various media platforms. Why Are We Out on SPHR? Annual revenue growth of 1.7% over the last five years was below our standards for the consumer discretionary sector Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders Sphere Entertainment's stock price of $27.40 implies a valuation ratio of 22.1x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including SPHR in your portfolio, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
