Q2 Holdings Inc
For the period ended Dec 31, 2023. Filed Feb 21, 2024.
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FY2023 · Filed Feb 21, 2024
QTWO$75.33+1.5%Stored close · as of Nov 10, 2026
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Item 8. Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Year Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Cash flows from operating activities: | |||
| Net loss | $(65,384) | $(108,983) | $(112,746) |
| Adjustments to reconcile net loss to net cash from operating activities: | |||
| Amortization of deferred implementation, solution and other costs | 25,848 | 23,270 | 24,496 |
| Depreciation and amortization | 71,707 | 61,659 | 54,833 |
| Amortization of debt issuance costs | 2,104 | 2,719 | 2,038 |
| Amortization of debt discount | — | — | 25,824 |
| Amortization of premiums and discounts on investments | (3,192) | (302) | 1,117 |
| Stock-based compensation expense | 79,188 | 65,157 | 55,903 |
| Realized loss on investments | 482 | 17 | — |
| Deferred income taxes | 636 | 1,611 | 180 |
| Allowance for credit losses | (213) | 179 | (25) |
| Allowance for sales credits | (13) | (55) | 39 |
| Loss on disposal of long-lived assets | 55 | 109 | 389 |
| (Gain) loss on extinguishment of debt | (19,312) | — | 1,513 |
| Lease impairments | 4,075 | 11,669 | 2,008 |
| Changes in operating assets and liabilities: | |||
| Accounts receivable, net | 4,090 | 286 | (10,072) |
| Prepaid expenses and other current assets | (787) | 494 | 532 |
| Deferred solution and other costs | (17,412) | (7,599) | (12,776) |
| Deferred implementation costs | (14,954) | (12,243) | (12,847) |
| Contract assets, net | 3,693 | (1,101) | (4,165) |
| Other long-term assets | 5,576 | 7,312 | 7,851 |
| Accounts payable | 9,353 | (548) | 1,757 |
| Accrued liabilities | (492) | (9,845) | 104 |
| Deferred revenues | (3,092) | 10,212 | 15,743 |
| Deferred rent and other long-term liabilities | (11,664) | (7,462) | (10,604) |
| Net cash provided by operating activities | 70,292 | 36,556 | 31,092 |
| Cash flows from investing activities: | |||
| Purchases of investments | (76,865) | (292,984) | (124,034) |
| Maturities of investments | 220,776 | 162,521 | 149,176 |
| Purchases of property and equipment | (5,673) | (11,142) | (19,754) |
| Capitalized software development costs | (24,970) | (18,910) | (5,865) |
| Business combinations, net of cash acquired | — | (5,040) | (64,652) |
| Net cash provided by (used in) investing activities | 113,268 | (165,555) | (65,129) |
| Cash flows from financing activities: | |||
| Payment for maturity of 2023 convertible notes | (10,908) | — | — |
| Payment for repurchases of convertible notes | (149,640) | — | (63,692) |
| Proceeds from bond hedges related to convertible notes | — | — | 26,295 |
| Payments for warrants related to convertible notes | — | — | (19,655) |
| Proceeds from capped calls related to convertible notes | 139 | — | — |
| Proceeds from exercise of stock options and ESPP | 8,397 | 5,882 | 5,892 |
| Net cash provided by (used in) financing activities | (152,012) | 5,882 | (51,160) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 182 | (802) | (167) |
| Net increase (decrease) in cash, cash equivalents and restricted cash | 31,730 | (123,919) | (85,364) |
| Cash, cash equivalents and restricted cash, beginning of period | 201,902 | 325,821 | 411,185 |
| Cash, cash equivalents and restricted cash, end of period | $233,632 | $201,902 | $325,821 |
| Supplemental disclosures of cash flow information: | |||
| Cash paid for taxes, net of refund | $2,622 | $875 | $1,027 |
| Cash paid for interest | $2,651 | $2,891 | $3,104 |
| Supplemental disclosure of non-cash investing and financing activities: | |||
|---|---|---|---|
| Shares acquired to settle the exercise of stock options | $— | $— | $(200) |
| Stock-based compensation for capitalized software development | $3,149 | $2,396 | $— |
| Capitalized software development costs included in accounts payable and accrued liabilities | $— | $492 | $— |
| Property and equipment acquired and included in accounts payable and accrued liabilities | $478 | $353 | $3,004 |
| Property and equipment acquired through tenant improvement allowance | $— | $— | $9,692 |
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