Good afternoon, my name is Mike and I will be your conference operator today. At this time I would like to welcome everyone to the Q2 Holdings Third Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be question-and-answer session. (Operator Instructions). Thank you. Mr. Bob Gujavarty, you may begin your conference.

Thank you, good afternoon. Let me begin by highlighting our participation at several investor events this quarter. We’ll be attending the RBC TMT Conference in New York on November 11th, the Stifel One-on-One Conference in Chicago on November 13th, the ROTH One-on-One Conference in San Francisco on November 18th and the BMO TMT Conference on December 9th. Welcome to Q2 Holdings third quarter 2014 earnings call for the period ending September 30, 2014. I’m Bob Gujavarty, Vice President of Investor Relations and with me today on the call is Matt Flake, our President and CEO and Jennifer Harris, our CFO. As a reminder today’s conference call is being broadcast live via webcast. In addition, a replay of the call will be available on our website following the call. By now you should have received a copy of our press release that was distributed this afternoon. If you’ve not, it is available on the Investor Relations section of our website. Please remember that certain statements made during this call, including those concerning our business and financial outlook for the fourth quarter and full year 2014, our growth opportunities and expectations, our long-term financial targets, anticipated improvement in gross margins and operating margins, areas of strategic focus and investments, our market opportunities and anticipated demand for our products, the benefits of our products including our new 4.0 release and the strategic advantages they offer to our customers, anticipated benefits from our partnership with NAFCU, and our momentum with credit union customers, expected advantages of and demand for our unified platform offerings, continued investment in additional product offerings for our current customers and our ability to continue innovating and meeting customer expectations, future product improvements and functionality, our ability to implement new customers on schedule, particularly our tier 1 customers whose implementations are…

Thanks Bob and thanks to all of you for joining us today for our third quarter earnings call. During the call I will provide a high level overview of our financial results from the quarter, share details on several strategic sales wins and discuss some key business developments. I will then turn the call over to our CFO, Jennifer Harris who will take you through the financial results in more detail, including our outlook for the fourth quarter and full year 2014. We are pleased to announce another quarter of exceeding guidance. During the third quarter we generated total revenue of $21 million beating the high end of our guidance of $19.8 million and up 47% year-over-year. In addition we are pleased to announce that we exited the quarter with a record 4.1 million registered end users on our platform representing a 39% year-over-year increase. The third quarter saw the organization executing on multiple fronts from sales to partnerships to delivery. During today’s call I would like to highlight two key sales wins in order to provide some examples of how Q2 solutions are playing a central role in the transformation underway in the financial services industry. We continued to add new bank customers during the quarter. The first is a bank headquartered in the Southeastern United States. This bank recognized the value of upgrading to Q2’s platform to replace their core provider’s online system. This bank has a strong commercial focus and one of its critical strategic initiatives is to complete with money center banks for commercial business without sacrificing the look and feel of their retail solution. With our single platform the bank will deliver a consistent, modern and intuitive user experience driving their brand strategy of unifying both retail and commercial experiences. With our integrated commercial functionality…

Thanks, Matt. We are pleased to had delivered third quarter results that exceeded our guidance for revenue and adjusted EBITDA. I will briefly review our results for the third quarter before finishing with updated guidance for the fourth quarter and full year 2014. Total revenue for the third quarter was $21 million, an increase of 47% year-over-year and above the high end of our guidance of $19.8 million. Our increased revenue in the third quarter was principally the result of strong growth in subscription revenue. Subscription revenue benefited from a full quarter contributions of customers that went live late in the second quarter as well new customer go live and organic user growth from existing customers. Subscriptions and services revenue were also up quarter over quarter as a result of merger activity in the quarter which contributed over $500,000 of revenue to the quarter. Historically merger activity has been favorable to Q2 resulting in a net gain of registered users but the timing and magnitude of merger activity is difficult to predict. Transaction base revenue increased in actual dollars but continue to decline as a percentage of total revenue and represented 22% of total revenue in the quarter down from 24% in the year ago period. As a reminder I would like to briefly recap our revenue model and key drivers of growth. We priced our solutions based on the number of solutions purchased by our customers and the number of registered users utilizing our solutions. We earn additional revenues based on the number of bill pay and certain other transaction that registered users performed on our virtual banking solution in excess of the levels included in our standard subscription fee. As a result our revenue grows as we add new customers as our existing customers buy more solutions from…

Thanks, Jennifer. I would like to close by saying, we have a passion for remaining connected with our partner intuitions. Over the past 30 days I have had the opportunity to meet with over 50 of our customers in person. The overwhelming message from them is that they are optimistic about the future and they believe that our technology will be the great equalizer in there transformation from brick and mortar to the virtual branch. I speak for the entire Q2 team when I say we are extremely excited about carrying our momentum into the fourth quarter and 2015. With that let me turn it over to the operator for questions.

(Operator Instruction). Your first question is from Sterling Auty with JPMorgan.

Yeah, thanks. Hi guys, couple of quick questions here. So in the quarter looking at the revenue generation the subscriber ads were great but the revenue was even stronger than I would have thought given the level of adds that you had, transaction revenue came down as a percentage so is it that the number of solutions that customers went live within the quarter is bigger than what you’ve typically seen or something else that might be driving kind of an ARPU on the customer basis?

Hi, Sterling this is Jennifer. So remember that the growth in users is not necessarily linear, it’s a step function and it’s also a function of timing of when customers go live. So we actually saw a lot of customers in the Q2 time frame go live in June leading to a huge increase in registered users in Q2 but you didn’t have a significant impact to the Q2 revenue. We now in Q3 have a full quarter of those plus we had a good number of go lives in Q3 that happened in the July and August time frame. So you are seeing the timing difference in the step function of adding those users.

Perfect, that helps a great deal. As you look to the fourth quarter any additional color you can give in terms of expectation on go lives and the timing of them so we can peel out the same impacts for the next quarter?

Yeah, so it’s really hard because things can change with the bank and their readiness to go live and remember that we are coming up on the holidays with Thanksgiving and Christmas and if you don’t get the banks live by Thanksgiving or at least the first week of December then they tend to push and go into the next quarter but I would also remind you, as Matt mentioned, on the last quarter call that Umpqua is still in their friends and family testing phase and so we haven’t seen -- we have seen minimal users from Umpqua and they are still on target to begin to rolling out to all their users in Q4 and continuing in the Q1 of next year. So it really does depend on the timing and the bank’s readiness.

Okay, and then last question Matt. Can you just give us some color and commentary around how you feel the ramping up the latest rounds of sales reps that you’ve added, how their productivity is coming along and your expectation for additional sales investments and sales hires?

How I feel about them? I feel great, they continue -- we’re getting veterans from the space they are able to leverage their relationship and experience and so Jennifer and Steve are pushing really hard on productivity, feel really good about that and as far as don’t forget the relationship management team as well they are cross selling into the existing base. We had our biggest cross sell quarter in the history of the company in Q3 and they did a fantastic job there as well. So we continue to keep pushing down the pipe and I think from the momentum in the pipeline I am confident in our progress and I feel good about the momentum we have and I look forward to giving a full year recap in February on the total progress we made for the year.

Great thanks.

Thanks Sterling.

Next question is from Tom Rodrick with Stifel.

Yes hi guys Matt Van Vliet on for Tom. Thanks for taking my question. The first one in regard to the 4.0 release you talked about 10% of your users have already migrated over. What’s the outlook for the remaining 90%? And what benefits from both an operational and I guess revenue standpoint might we see on 4.0 are there additional capabilities that are easier to sell through that or is it just a operational update here?

Yes, so a couple things there. I don’t know exactly what the numbers would be, we would hope to probably have more than 50% of the end users on the system by the end of ‘15 and the benefits of 4.0 are pretty simple. Number one it puts more pressure on the competition around design and look and feel and so it has more features and functions in it. So it’s a tool for us to sell more products. We see that momentum in the sales pipeline. From a bankers perspective we are driving more efficiency so they are able to consolidate more legacy systems on the backend, offer more commercial functionality, helps them compete with the larger banks. And then from us, any time you have a new release of software you bring efficiencies to the business, our business Q2. So hopefully that will add to our focus of trying to get the profitability and increase margins and all that stuff we’ve talked about. So it is a -- really impressed with the execution of the team of delivering 10% of our customers on that platform and having customers that are referenceable and happy about it.

Okay. And then the recognition by the National Association of the Credit Unions here, what do you think that means to the sales pipeline and how maybe does that reference to the Bankers Association endorsement that you have received in the past?

Yes, that’s what I was going to compare it to, we signed the American Banker Association endorsement in October of last year. We got PR out of it, we got to speak at their events, they publicized us and pushed us out in to the marketplace and it’s a trusted advisor to the banks. The same thing is going to happen with NAFCU. We’re going to begin to get PR out of them, it’s a great organization. We think it’s a best trade organization in the credit union space. PR speaking events as well as it helps us build our brand on the credit union side. We are not as -- our adoption rate is not as high on the credit union side as they are on the bank side. So we just think it’s going to continue the momentum there. We’re really happy with the endorsement where we think it’s going to create a lot more momentum than already have in the credit union space just like American Bankers did for us on the bank side.

All right great, thank you guys.

Thank you Matt.

Our next question is from Richard Davis with Canaccord.

Hey thanks. So payment security is kind of a hot button these days for banks of size. How do you feel you are positioned for this and kind of where are you headed so if maybe you can flesh that out, and then I have a follow-up.

Yes so we are not a payments company but we do originate payments. We are the only vendor in the space that has organically build fraud analytics and [inaudible] risk and fraud analytics. And so last year we stopped $12 million of fraud and we continue to see our product differentiate itself by stopping fraud with our best practices and we also add to it as well. So a differentiator for us when we sell into a bank or credit union is our fraud analytics product and you see an uplift on the ticket and it really is a competitive advantage for us. So we are passionate about our security offerings that we have and it’s a differentiator for us as we go win deals.

Got it. And this one maybe harder but do you think you can get like EBITDA upside next quarter if you took like a slug of your balance sheet cash and took five points on the Bears this weekend against the [inaudible]?

First of all I don’t bet on [Bailer].

No comment.

Yes no, I like the way you think though.

That was great, I will let you guys go, thanks, Matt.

Thanks.

(Operator Instructions) And next question is from Matt Hedberg with RBC Capital Markets.

Yes hi thanks, it’s Dan [inaudible] for Matt Hedberg, thanks for taking the question. Apple recently introduced Apple Pay. I was just curious if you had any thoughts around this any potential impact your target market could impact your business positively or otherwise? Thanks.

Yes, thanks. In terms of day-to-day impact no I don’t think so but in terms of big picture yes I think anytime there is a technology that moves consumers towards electronic or digital channels it’s positive for us. So making people think about their money on their phone drives more account holders to use their phone to log into online banking I think anytime you do a purchase one of the things that goes through your head is hopefully how much money do you have. And so that’s the information we provide and community banks and credit unions as I mentioned at the beginning of the call, we have met with a lot of them over the last 30 days. They are still trying to get their arms around it but we think it’s a positive for us in the long run and we look forward to Apple Pay coming out and whatever else payment technologies come out.

Thank you.

Thanks.

There are no further questions at this time. This concludes today’s conference call. You may now disconnect.