Q2 Holdings Expands Growth Streak in Q1

Fintech companies have been benefiting from the COVID-19 pandemic as more business moves online and more people take advantage of digital banking. Q2 Holdings (NYSE: QTWO), which develops cloud-based solutions for community banks, continued to see high revenue growth in the first quarter.

Revenue grew 30% to $92.4 million, but gross margin was down to 42.5% from 47.8% in the prior year. Much of that was attributable to employee-related expenses. Net loss widened to $34.1 million from $19.3 million the prior year and $15.7 million in the previous quarter. Most of the came from the acquisition of PrecisionLender in October 2019, and the other portion came from new hires.

Source Fool.com