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Update: Q2 Holdings - Weak Guidance Has Me Moving The Name To Actively Managed From Set And Forget

Q2 Holdings, Inc. (QTWO) reported a strong Q4 and full year 2014, which was expected and confirmed my longer-term bull thesis. However, I'm moving the company from "set and forget" to "actively managed" on guidance - QTWO guided full year 2015 revenue growth of between 31-34% which is down 5% at the high end of guidance from full year 2014 revenue growth of 39%. I expect QTWO to beat the high end of guidance and to raise incrementally throughout the year as I feel that the full year number is conservative and doesn't price in the company's newest generation of its platform or its launch of a treasury banking product. Ideally, I would like to see QTWO report full year 2015 revenue in the 39-41% range so I'm not asking for much.

Getting back to the results QTWO reported:

  • Total fourth quarter revenue of $22.1 million, up 41 percent