Q2 Holdings, Inc.

call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. We kindly ask that you limit your questions to one and one follow-up with additional questions being received if time permits. Thank you. I would now like to turn the call over to Josh Yankovich, Investor Relations. Sir, please begin.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for our first quarter 2025 conference call. With me on the call today are Matt Flake, our CEO, Jonathan Price, our CFO, and Kurt Coleman, our president, who will join us for the Q&A portion of the call. This call contains forward-looking statements that are subject to significant risks and uncertainties, including, among other things, with respect to our expectations for the future operating and financial performance of Q2 holdings and for the financial services industry. Actual results may differ materially from those contemplated by these forward-looking statements, and we can give no assurance that such expectations or any of our forward-looking statements will prove to be correct. Important factors that could cause actual results to differ materially from those reflected in the forward-looking statements are included in our periodic reports filed with the SEC, copies of which may be found on the Investor Relations section of our website, including our quarterly report on Form 10-Q for the first quarter of 2025 and the press release distributed this afternoon regarding the financial results we will discuss today. Forward-looking statements that we make on this call are based on assumptions only as of the day discussed. Investors should not assume that these statements will remain operative at a later time, and we undertake an obligation to update any such forward-looking statements discussed in this call. Also, unless otherwise stated, all financial measures discussed on this call other than revenue will be on a non-GAAP basis. A discussion of why we use non-GAAP financial measures and a reconciliation of the non-GAAP measures to the most comparable GAAP measures is included in our press release, which is available on the Investor Relations section of our website and in our Form 8-K filed today with the SEC. We have also published additional materials related to today's results on our investor relations website. Let me now turn the call over to Matt.

Thanks, Josh. I'll start today's call by sharing our first quarter results and highlights from across our business. I'll then hand the call over to Jonathan to discuss our financial results in more detail and provide updated guidance. In the first quarter, we delivered results above the high end of our guidance, generating revenue of 189.7 million dollars. up 15% year-over-year. We also generated adjusted EBITDA of $40.7 million, representing 21.5% of revenue. And we generated free cash flow of $37.8 million. We started the year with solid sales performance highlighted by five total enterprise and Tier 1 deals, complemented by continued execution in Tier 2 and 3. In terms of net new highlights, we signed a Tier 1 relationship pricing deal in the quarter with a bank that will use our solutions to improve commercial relationship profitability across both lending and deposit product lines. The enterprise and Tier 1 success in the quarter was also driven by significant expansion activity within our existing customer base. For example, we had a top 50 U.S. bank sign an expansion deal for our risk and fraud solutions in the quarter. In our last call, we talked about the rising cost and complexity of fraud management. And this deal demonstrates the growing demand we're seeing for best in class fraud solutions. In this case, the bank signed a deal to expand their utilization of one of our fraud products, adding roughly the equivalent of a tier one digital banking deal and bookings value to the partnership in the process. Fraud mitigation is a top priority for our customers. and one we believe will remain prioritized regardless of the macroeconomic backdrop. We also continue to see Q2 Innovation Studio drive both net new momentum and stronger relationships with existing customers. As an example, United Federal Credit Unions uses a variety of Q2 solutions and Innovation Studio partners, including targeted features aimed at payment flexibility and member-driven interactions, to more than triple digital engagement with those features across its member base. While we continue to drive investment into R&D, the breadth of our partner ecosystem continues to separate us in the market because of our ability to deliver innovation quickly, and stories like United's provide a great example of the kinds of outcomes customers are able to drive with the combined power of our platform and innovation studio. We also have another strong quarter of renewal activity, which is particularly exciting on the heels of the single largest renewal quarter in company history in fourth quarter of 2024. In the first quarter of 2025, we signed renewals with three of our top 10 largest customers across digital banking, Helix, and relationship pricing. These large renewals are a vote of confidence in the strength of our partnership and the criticality of our solutions. And in times of economic uncertainty, we have historically seen expansion and renewal activity accelerate. As we have discussed on previous calls, we have had strong renewal bookings over the past several quarters, and we believe we will see a similar renewal opportunity set in 2025 and 2026 compared to what we had available over the past two years. Looking ahead, I do want to provide a few remarks on our outlook for the remainder of the year. I believe our business is durable due to the mission critical nature of our products, our strong and diverse customer base, and the fundamentals of our model that have helped us execute well in other recent periods of macro uncertainty. The pandemic, rising rates, and the events in the banking sector from March of 23 underscored the importance of deposit gathering, and our solutions are essential in helping customers attract, retain, grow, and protect deposits. We expect that focus on deposits to persist and has been a tailwind to our sales efforts over the last several quarters. We have a highly strategic and diverse customer base across our solution areas, and we believe our regional and community financial institution customers play an essential role in supporting the economy, including in challenging times. In terms of what we see here in early May 2025, we continue to see a solid pipeline for the remainder of the year with a strong overall renewal and expansion opportunity ahead of us. With that, I'll hand the call over to Jonathan to discuss our financial performance from the first quarter in more detail and provide our updated guidance for 2025.