Q2 Holdings, Inc. (NYSE:QTWO) Q3 2018 Earnings Conference Call Transcript
Nov 07, 2018 • 08:30 am ET
Good morning, my name is Emily, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q2 Holdings Q3 2018 Conference Call. (Operator Instructions) Thank you.
Bob Gujavarty, Vice President of Investor Relations, you may begin your conference.
Welcome to the Q2 Holdings Conference Call for the Third Quarter ended September 30, 2018. I'm Bob Gujavarty, Vice President of Investor Relations and with me today on the call, are Matt Flake, our CEO and Jennifer Harris, our CFO. As a reminder, today's conference call is being rebroadcast live via webcast. In addition, a replay of the call will be available on our website following the call. By now, you should have received a copy of our press release that was distributed yesterday afternoon. If you have not, it is available on the investor relations section of our website.
Before beginning, we must caution you that today's remarks in this discussion, including statements made during the question-and-answer session, contain forward-looking statements. These statements are subject to numerous important factors, risks and uncertainties, which could cause actual results to differ from the results implied by these or other forward-looking statements. Also, these statements are based solely on present information and are subject to risks and uncertainties that can cause actual results to differ materially from those projected in the forward-looking statements. For additional information, please refer to our filings with the Securities and Exchange Commission and the risk factors contained therein and other disclosures. We do not undertake any duty to update any forward-looking statements.
During this call, we'll be referring to both GAAP and non-GAAP financial measures. We believe that non-GAAP measures are representative, how we internally measure the business, and they're reconciled to GAAP in the tables attached to our press release, which is available on our investor relations website. The non-revenue financial measures we'll discuss today are non-GAAP unless we state the measure is a GAAP number. Any non-GAAP outlook we provide has not been reconciled to the comparable GAAP outlook because, among other things, we cannot reliably estimate our future stock-based compensation expense, which is dependent on our future stock price. Since we expect our future stock-based compensation expense to have a significant impact on our future GAAP financial results, a reconciliation is not available on a forward-looking basis without unreasonable effort.
Let me now turn the call over to Matt.
Matthew P. Flake
Thanks, Bob. I'll start today's call by sharing our revenue performance and user growth from the third quarter of 2018. I'll then discuss some business highlights from the quarter before handing the call over to Jennifer for a detailed look at our financials. In the third quarter, we generated revenue of $60.5 million, up 21% year-over-year and up 3% sequentially. We had a particularly strong quarter of user growth as well, ending the quarter with more than 12.3 million registered users on the Q2 platform, up 24% year-over-year and 8% from the previous quarter.
I'll start my prepared remarks