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Stock impact report

3 Reasons to Avoid QTWO and 1 Stock to Buy Instead [Yahoo! Finance]

Q2 Holdings, Inc. (QTWO) 
Last q2 holdings, inc. earnings: 2/19 04:30 pm Check Earnings Report
Company Research Source: Yahoo! Finance
This may have investors wondering how to approach the situation. Is now the time to buy Q2 Holdings, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it's free Why Is Q2 Holdings Not Exciting? Even though the stock has become cheaper, we're swiping left on Q2 Holdings for now. Here are three reasons why QTWO doesn't excite us and a stock we'd rather own. 1. Weak ARR Points to Soft Demand While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. Q2 Holdings's ARR came in at $921 million in Q4, and over the last four quarters, its year-on-year growth averaged 11.2%. This performance was underwhelming and suggests that increasing competition is causing challenges in se Show less Read more
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