QTWO - Q2 Holdings says First Republic represented 2.5% of 2022 revenue

2023-05-01 14:55:33 ET

Q2 Holdings ( NYSE: QTWO ) disclosed that failed regional lender First Republic Bank ( NYSE: FRC ) is a customer of Q2 and accounted for around 2.5% of its total revenue for the year ended Dec. 31, 2022, according to an SEC filing dated Monday.

The company noted no individual customer represents over 4% of total revenue, underscoring its "diversified customer base." For the year, Q2's ( QTWO ) top customers together represented less than 25% of its total sales.

Shares of Q2 ( QTWO ), which provides cloud-based digital solutions to U.S.-based regional and community financial institutions, slid 2.4% in mid-afternoon trading, extending its year-to-date slump to 11.6%.

Earlier on Monday, the Federal Deposit Insurance Corporation took over FRC and sold most of its assets to JPMorgan Chase ( JPM ) in what was the second biggest bank failure in U.S. history.

"Q2 is actively monitoring the financial services and broader financial markets and assessing the impacts that events may have on Q2’s customers, third-party relationships and operations," it said.

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