Q2 Holdings: Bull Case Centers On Margin Expansion And Land-And-Expand Strength

  • Q2 Holdings posted strong 2024 financials with 11.5% revenue growth, expanding margins, and a net profit, reinforcing my 'Buy' rating. The company's successful land-and-expand strategy drives significant customer revenue growth, implying healthy net revenue retention and fueling operating leverage. Q2's valuation is justified by its superior growth compared to peers, with potential for multiple expansion as margins and cash flow improve.