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Matt Flake, the CEO and President of Q2 Holdings, Inc. (QTWO), Interviews with The Wall Street Transcript

67 WALL STREET, New York - June 10, 2014 - The Wall Street Transcript has just published its Business and Application Software Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Cloud Computing Secular Trends - Application Software Consolidation Activity - Cloud Computing and SaaS Trends - Larger IT Systems Upgrades - B2B Recovery - Paradigm Shifts in Software - Software-Defined Data Centers - Business Services Capex Spending

Companies include: Q2 Holdings, Inc. (QTWO) and many more.

In the following excerpt from the Business and Application Software Report, the CEO and President of Q2 Holdings, Inc. (QTWO) discusses company strategy and the outlook for this vital industry:

TWST: You mentioned a high retention rate. Can you quantify that?

Mr. Flake: Let me give you the actual churn rate. The actual churn rate is less than 5% every year. Historically, our revenue retention rates have been in excess of 100% as we continue to demonstrate an ability to increase the monthly revenue per customer over the life of their agreement. So we have a very low churn. You don't see that in many SaaS companies.

TWST: What is your agenda for the next 12 to 24 months?

Mr. Flake: We are focused on several areas. Obviously, mobile is a critical part of our strategy. Taking all of the features and functions from the desktop, and driving those features to mobile devices - including retail and business banking functionality - is critical. We believe the ability to run your business from your mobile phone or your tablet with consistent work flows to the desktop will be key.

We also have a significant focus around security. We built a risk and fraud analytics product about three years ago that stopped $12 million in fraud last year and is doing a fantastic job this year as well. We're going to continue to invest in security; because of our single-platform architecture, we are able to see all of the behaviors - desktop, voice, mobile and tablet - so we have a rich data set which is helping us better determine whether somebody is who they say they are. You think about things like the Target breach. It's a very complex problem, and our banks are laser-focused on security. Risk and fraud analytics has been a strong upsell for us.

We're also investing in analytics for marketing purposes. Our customers believe in service, and providing relevant offers that help their account holders, now requires analytics because people aren't coming in to the branches as often. Analytics used for marketing will help a bank potentially cross-sell something to somebody based on his or her profile, or life stage or transaction history.

TWST: Do you see any limiting factors to achieving these goals within the time frame that you've indicated? Are there any limiting factors in terms of capital or people or regulations or such?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.