Q2 Holdings (QTWO) stock soared 9.05% in the intraday session on Thursday, driven by the company's impressive fourth-quarter 2024 earnings performance and robust outlook for the future.

The digital banking solutions provider reported better-than-expected Q4 results, with earnings per share of $0.52 surpassing the consensus estimate of $0.46. Revenue rose 12.9% year-over-year to $183.05 million, also exceeding analysts' expectations of $179.92 million.

The strong Q4 performance was driven by record bookings, with the company signing 25 Tier 1 and enterprise deals in 2024, the highest in its history. Subscription revenue, which accounts for 79% of total revenue, grew 16% year-over-year, fueled by new customer wins and cross-selling to existing customers.

Q2 Holdings also reported a substantial improvement in profitability, with adjusted EBITDA margins expanding by 630 basis points compared to the prior-year quarter. The company generated robust free cash flow of $107 million for the full year, representing an 85% conversion rate as a percentage of adjusted EBITDA.

During the earnings call, management highlighted the company's strong momentum, driven by its differentiated platform and innovative solutions, particularly in areas such as fraud management and commercial banking. They expressed confidence in continued growth opportunities, backed by a solid pipeline and favorable demand environment.