Q2 Holdings files for Austin’s first IPO of 2014

Austin could soon have its first IPO of the year: Q2 Holdings has filed to raise up to $138 million in an initial public offering of stock.

Founded in 2004, the company provides electronic banking services to more than 300 banks and credit unions.

Q2 said the number of shares to be sold and the price range for the proposed offering have not yet been determined. J.P. Morgan Securities and Stifel Nicolaus & Co are the lead underwriters in the Q2 offering.

The company’s revenue increased 41 percent to $41.2 million in the nine months ended Sept. 30, compared with the same quarter the previous year, according to a securities filing. The company’s net loss widened to $11.3 million from $5.9 million.

Q2 said it plans to list its stock under the symbol “QTWO,” but did not say on which exchange it plans to list.

Battery Ventures of Boston and Adams Street Partners of Chicago invested $20 million in Q2 in April. That brought the total it has raised to $40 million.

In July, Q2 unveiled its new 85,000-square-foot headquarters at Aspen Lake One, near U.S. 183 and Texas 45. At the time, Q2 had 350 employees and was planning for growth. The new offices are equipped to handle 500 workers, officials said.

The company’s banking and credit union customers have more than 3 million active users of tablets, smartphones or online banking.

Q2 software allows “anytime, anywhere, any device banking,” CEO Matt Flake said in July. “Whatever device you use, it’s the same experience.”

A bank’s customers can do anything on the Q2 software that they would do at a brick-and-mortar bank. That allows smaller players to compete with the biggest banks, he said.

“Bank of America, Chase and Wells Fargo, that’s who we view as competitors,” Flake said. “We’re building technology for the community banks and credit unions to compete.”

Q2 is the first Austin-area company to file for an IPO this year. Last year, Central Texas had five offerings: oil and gas company Jones Energy Inc.; online coupon company RetailMeNot; natural gas compression service provider USA Compression Partners; spinal-device maker LDR Holding Corp. and energy startup Ideal Power.

Staff writer Laylan Copelin contributed to this report.

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