Digital banking software provider Q2 Holdings (NYSE: QTWO) will be reporting results this Wednesday afternoon. Here’s what investors should know.

Q2 Holdings beat analysts’ revenue expectations last quarter, reporting revenues of $208.2 million, up 13.8% year on year. It was a satisfactory quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations but a significant miss 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, the market is expecting Q2 Holdings’s revenue to grow 13.1% year on year, slowing from the 14.6% increase it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Q2 Holdings has a history of exceeding Wall Street’s expectations.

Looking at Q2 Holdings’s peers in the vertical software segment, only Cadence Design Systems has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 18.7%.

There has been positive sentiment among investors in the vertical software segment, with share prices up 7.2% on average over the last month. Q2 Holdings is up 5.2% during the same time and is heading into earnings with an average analyst price target of $75.46 (compared to the current share price of $49.00).

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