Digital banking software provider Q2 Holdings (NYSE: QTWO) will be announcing earnings results this Wednesday after market hours. Here’s what to expect.

Q2 Holdings beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $195.1 million, up 12.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ annual recurring revenue estimates and a solid beat of analysts’ billings estimates.

Is Q2 Holdings a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Q2 Holdings’s revenue to grow 13% year on year to $197.8 million, in line with the 12.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Q2 Holdings has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.

Looking at Q2 Holdings’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Agilysys delivered year-on-year revenue growth of 16.1%, beating analysts’ expectations by 3.1%, and Cadence Design Systems reported revenues up 10.1%, topping estimates by 0.9%. Agilysys traded up 22.7% following the results while Cadence Design Systems was down 3%.

Read our full analysis of Agilysys’s results here and Cadence Design Systems’s results here.

Investors in the vertical software segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Q2 Holdings is down 5% during the same time and is heading into earnings with an average analyst price target of $98.43 (compared to the current share price of $62.61).

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