Qualys (QLYS) 1 Nov 172017 Q3 Earnings call transcript

Good day, everyone, and welcome to the Qualys Third Quarter 2017 Earnings Conference Call. This call is being recorded. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions for asking a question will be given at that time. I would now like to turn the call over to Joo Mi Kim, Vice President, FP&A and Investor Relations. ma'am. ahead, go Please

welcome third and call. XXXX to afternoon quarter Qualys' earnings Good

me results and and CFO. our to Melissa Philippe our Joining discuss chairman are today Courtot, our Fisher, CEO,

today's set that would XX-Q that from statements forward-looking relate these with this in information or latest differ we could operating to forth a our press no that to I performance. assumptions our include SEC, or generally the started, cause undertake to events events. statements. filings future differ on we on financial obligation release and as get today will and result in Factors update we remind Before as materially results materially you of including our future our and future statements of Actual call make remarks statements forward-looking new Form may are like are based Any to today, XX-K. that or results these

During of and this today's release. call, we measures. included to earnings measures GAAP A in press GAAP is financial non-GAAP non-GAAP will present both reconciliation

Philippe. turn and call the our With remarks, information to release, I'd prepared are investor website. accompanying a reminder, like with As available presentation to press on over an that, supplemental the

Cloud profits you and Melissa driven Thank QX on Apps. by quarter and another call compliance Cloud and continued very integrated Platform to pleased applications report its security revenues earnings and everyone the and of our Mi Joo welcome call. to are suite performance Qualys we our I with both of adoption strong

shared advantage the will you an to competitive clearly approach to build accelerated impressive guidance and XXXX our cloud unique it. on cloud again solutions of premise. for or both be with revenues EPS by have more can delivered increasingly the view platform non-GAAP given vulnerable as advantage results very bottom additional provide are color long Melissa created and dual give environment. both raise scalable year the highly us We the and regulated that in platform full an a underscore a we end to on the and pleased These taking This migration and top

know, are maintain anymore such against all in as regulations effective enterprise WannaCry which in to integrate, crippling and we traditional coping are point with deploy, not attacks difficult protecting inherently as As such solutions, and GDPR. new

as our in and of make not ago. of is adoption solutions. a well and XX% have complexity solutions to bolted be bolster built have This As a strategic Management to expansion the the businesses to approach solution customers Vulnerability as our platform and requirements our security transformation Furthermore, true accelerate order where now need compliance their posture. sizes new security in are for digital stack fact and to critical additional Enterprise platform X looking consolidate of transformation. more a their year result, by or compared security while companies compliance underscored and on. XX% a to the These now reduce solutions security must to This now improving all of cost deployed approach our the that, customers requires

large increase itself increase the over a deals new this continued last represents Cloud and and existing saw the XX customers. X This quarter also both the manifest the Agents in million last number with We with of this XX% almost purchased adoption to contributed quarter months. our through over of

added Vulnerability signed Management with scope multi-million but of cloud As dollar Cloud expanded their an AssetView. a who a we leading and Agent only not example, provider the expansion

Vulnerability limited customer Additionally, this and Solutions service PCI our Management we a only Web was this dollar company previously multi-million healthcare encompassing existing had Protection; Application signed an large on annual quarter a used a and with who both Threat basis. deal

new Vulnerability in with saw in As deployment. fully deal six-figure deploy Europe as WannaCry to new begun We this past, a and quarter increase deal customers many had you customer size customers partial GDPR Management with well. a European enterprises environment; we their are worldwide, know, signed as the impacting in

significant before, stickiness our with sizes our we deal record points conference Enterprises. we XXth We and Cassandra Networks and our profitability. reporting where was of the as our benefit by Transformation source and our XXX at of of Kafka, Digital we as the prospects. engines. Annual Vegas billion Conference index weeks well as – to Securing Enabling data well As open as and a The attendance platform additional additional we've ago, customers addition the our From few expansion discussed demonstrated Las our like Qualys Elasticsearch, and of both there in now evidenced hosted larger our over as theme had A by backend which customers analytics

will to business, an of during approach, We our which find investor presentation, in adoption delivering list be the will online. their worldwide the cloud or XXXX, of also Enterprises solutions we order to cannot is showcased IT their rapidly assets, adoption businesses. you which properly This technologies are true platform solutions impressive and suite the Qualys requires now could additional remediated, unprecedented that power identify retool vulnerable, security which accelerating traditional our and underscoring scalability, all of accuracy which deliver be global vulnerabilities something in premise, at and Enterprises are IT also to cloud excels. effectively speed enterprise endpoints. whether on ensure in or and need is the on

on the that that started to hybrid is cloud-based such retool need at to Because added than part cloud-based Soudani, transformation enables hybrid build such better how enterprises in conference to to He Les and security this believe private evidenced Microsoft, COO, they as security Generale's IT a adopted architecture. also in journey is combination Fortune public with digital had to of our bolted built Societe we how their of vendors Securing than gives the rather Cloud cloud-based a enabler and transformation, security toward spoke that an and Cloud into an initiatives impediment. accelerate security month that now the and is keynote. architectures clouds. my we adopt Oracle. outcomes. including by of technology requires needs the Qualys business Apple, global about become head vital Our us XX a world digital needs cloud security their a Infrastructure rather infrastructure, clouds, fact moving for have Assises, compliance Platform be He new it architecture such France, the Amazon, I Earlier this our and that visibility This start. XX% Khaled their leading into Platform in mind, Monaco, as leaders solution introduced significant

new to to the pleased by generation have Center most tools announce to global Ernst are and latest our component expand from that continue partnerships key Young of Texas, We in we prevention where threats. Security armed of advanced can and and their & to a Cyber with monitor streamline they environments, been next be detection client selected

to certification being We receptive are the also starting solutions. more to to market market cloud-based make our inroads Federal FedRAMP in and due the

became are of by both certified Service Following Secret selection the to Capitol we our the QX. platform and the FedRAMP customers pleased in Qualys Police private Lockheed that announce cloud Martin,

of events mandates. detection the variety release centralized of provide availability and we compliance to that by and delivers the simple suspicious changes and tasks, to the mandated activity that as complexity IOC. infrastructure, exceptions control FIM consolidate quarter, Compromise, the of difficult and an global regulations. indicate and the costly extremely activity violations, activity IT operating and unique. a IOC both This the and Qualys activity activity to changes to solution which variants, part malware, of Qualys centrally continued of activity. solutions, detecting off we increasing resulting may require customers threat expand File and detects of Then now, Indication and cost across administrative manage integrate. systems of that we general they from on cloud-based number network, point reduces own to of or patching our By to This compliance-related the all offer, policies scalable Monitoring, centralized enable we are and achieve and enterprise logs number daunting visibility of the Integrity compliance prescriptive is and unknown customers system a costly presence change customers file provide of normal with of with offerings, expanding on known systems our and continuous and increasingly malicious applications devices security deploy actor solutions endpoint have or a of their report highly to change on or FIM challenges quite behavioral tracks eliminating way view

in served acquisition passive and the Nevis Once in operation. provide ForeScout. existing increased us and to on adjacent Our Nevis with integrated our we response vulnerabilities capabilities scanning, we Networks web our more a solutions of Qualys, for enter their the our strategic to visibility IoT customers. view market QX, closed In reduce devices enable allows within us also from will customers is is our across and our and inspection, the threats this holistic mitigation Nevis to we of our India markets or and a whether into Networks to team additional of and on a This from cloud devices. expertise currently such fully benefit and against deep significant premise, give drastically endpoints. The technology packet the by with spend provide known protect accelerate opportunity platform provide acquisition move with us Pune, stickiness applications response. domain as as will the relationship platform integrated acquisition the of of The that into platform,

which company. the presence for We strengthen see commercial India, opportunity significant our as acquisition to Nevis we also a expect our in

now company Management. all strategic it a DevOps, both a QA, continues encompass advantage us. for our competitive for and is advantage employees of as and Customer cost This including across our Speaking Ops, Support Engineering, be Product to there Pune, operations a XXX departments, major

built Pune. facing on believe which premise the their scalability see earned in has strategic We that helps their our a them platform customers that will and summary, and we greater endpoint heavily strongly vital secure accuracy and visibility, secure vendor transformation while customers invest to digital true positioned continue believe increasingly best our helping continue us a offers trust as call and you. we their to In in are to compliance we years, delivering to to environments. to current Thank by We security detail. them them us ever the over customers our platform than It forge are is a revenues, their recurring many stacks. profitability. help approach, We that with positioned ahead their our of achieving build industry-leading With turn that, allowed results over Melissa posture financial transformation. has strong improve will while this foundation I better consolidate believe and discuss to digital

terrific third and profits with a had and We Philippe, quarter both Thanks, expectations. good afternoon. exceeding our revenues

We sizes growing Qualys. XX% and QX year-over-year. revenue The leading existing geographic continue record by and new renewals quarter to year-over-year, customers, healthy grew strategic our a see driven as year-over-year our upside deal and markets coupled positioning the in with with We in drove market both saw sizes margins demand for From in good to upsells. the continued XX% in latter platform very cloud strong from geographies. saw perspective, demand both customer increase we this growth Deal conditions. all new strong

QX, In new as we fact, both Bookings last Management Cloud than performance bookings. saw This more in we customers driven than new in as year-over-year EMEA strong drove new customer Agent in with Threat well for growing acceleration for product sizes quarter, by Protection record in Vulnerability the Consistent for meaningful Vulnerability deal in year-over-year. more category. XXX%. doubled EMEA had Management bookings

bookings that last Policy Including an Agent, X% from since we in or convert Policy million either quarter. released Cloud Vulnerability Compliance, acceleration the total bookings Agent new X.X quarter, Cloud These mostly from and the XX which products approximately million includes Cloud for associated Agent. product last last up as subscription XXXX renewals include Compliance, to Management sold Cloud are the New XX% contributed Agents due quarter. of to months, in of X.X to

technology a percent may the Qualys adoption with with and Monitoring and quarter, Integrity you our ago, as million, from or points of their three including basis XX% newly from this rising points basis of XXX approximately FX. File year the also Platform, from XX% solutions. recall, up quarter Agent Enterprise quarter to in third the saw deals, new solutions in released and represents more these the approximately spend $XX.X which XXXX average Multi-product is Cloud help should Our continues over increased contract year-over-year. our Revenues impact many and underpinning of negative as on customers front-loading of to increase well, the solutions the of benefited rate adoption which growth therefore, XX% MSSP revenues. of more In were There XX% normalized QX was revenue XXX growth XXXX. a we our QX, third of quarter IOC

deferred Turning revenue at balance, year-over-year. revenue September to deferred balance for FX, grown September revenue the $XXX approximately deferred greater was our XXXX, XX% the million XX, XX% of our have balance impact Normalized our balance from XX, would current current XXXX. as than

Before our profitability flow, moving I are on metrics that call results. specified, discussing remind of the non-GAAP expense to be cash and unless to would this profitability otherwise like I and everyone will all

business of periods and all been section million, Gross our of to available million compared conform from full of the Website. compared $X.X was of head the or in metrics EPS XX% that achieved from XXXX expense the increase R&D third higher items. of efficiencies a profit provided year-over-year reclassified expense in year-over-year year-over-year flow QX third quarter financial year-over-year which and non-recurring million, have in non-GAAP third prior profits. we $XX.X XX% to growth to we were billings in exclude in to our to million, by X% QX, year-over-year in GAAP marketing of our quarter QX release and quarter quarter Capital margin of million spend. the in and expenses due increase and count $XX.X year-over-year XX% million quarter presentation. to cash to a period growth the by the offset expansion the India, costs. earlier year-over-year benefited XX% This EPS increase in our increased XX%, higher Adjusted was is Sales Because XXXX, XX% The quarter. was largely XX% In in third-party by also XXXX as quarter a for includes increased in cost Net $X.X non-GAAP XXXX. for press XX% of in third amounts gross earnings third XXXX. G&A million to increased was was today Operating the $X.X non-GAAP of Nevis. a $XX.X month of in related Our in in QX from an reconciliation $XX.X tables the to headquarters XXXX. and Out A primarily or despite in in by to million, the count contributed have third X% same increase expense the our EBITDA $XX.X the lower of from XXXX. build-out. flat note excited at of XXXX. higher on period's third to by certain we're margin to in $X.X million, $X.X current of operations, is added stock-based in operating year-over-year, Nevis Investors cash was operations GAAP and and the increased for $XX count. XX% as increase compared representing to due $XX.X count. to head to increased quarter head to the expenditures team, operations this development measures team from million in the compensation this driven and Also $XX.X million and contributed million million. the year-over-year, greater primarily to also in new XX% Research head XX% one our issued

be new XXXX between to of CapEx spend Total million, office $XX $X between headquarters expectation is related be now related $XX prior expected a QX million. and CapEx $XX and $XX $XX build-out between in to CapEx quarter $X total be expect for million and $X million, $X CapEx the new the $XX from our up XXXX to to We our operations related of million. to fourth another to and the of to to

also acquisition We of QX. the in Nevis $X.X on million Networks spent

million terms based well FX million, in MSSP $XX.X fourth year-over-year an the the of be of quarter XX% on XX% the expect to to $XX.X estimated the XXXX, representing In we to range as as guidance, our for previously impact contract. mentioned current growth of of revenues from rate normalized forecasts

continue in however look a areas, model, will of number operating to high for given quality XXXX invest We full highly and in QX operational scalable expect now expansion. talent our we year margin

to the per $X.XX to share, fourth $X.XX expect range the of be We in $X.XX $X.XX the range to quarter share. EPS GAAP of be XXXX expected non-GAAP while EPS per diluted of diluted for to is in the

XXXX raising guidance be and full to both earnings. our delighted for year are We revenues

are We of $XXX.X in the again, to of guidance revenue range bottom to $XXX.X for the million and now from to end of prior our full million. XXXX million raising year $XXX.X top the $XXX.X range be million

personally our results to from raising to to compliance platform $X.XX range enthusiasm security $X.XX and have EPS can guidance reflect from secure believe the their financial $X.XX that strong total few $X.XX cost are We We premise $X.XX. consolidate our to cloud-based $X.XX non-GAAP GAAP on than customers $X.XX user our them our are and to visibility that EPS and enable how a customers range digital platform guidance to and transformation for $X.XX security. is appreciative for and of our to applications better our are ago, integrated and competitive conference how solutions. of at stacks to a saw weeks and ownership our strategic solution a I they At lower

be of would to and questions. model that enable revenues top-tier with Philippe believe happy to any scalable margins. boast and us With to our continue coupled We your our will grow to positioning, that, I our answer unique continue competitive

you. Thank

from Needham Company. & line of question the comes Henderson first of Alex Our

open. Your line is

Thanks.

it bit be end even with thinking of XXXX? India, Obviously, guidance about like the of about going forward. your of the that a looks is be to your structure giving your investments into the the teens growth at range towards way the and going Is OpEx I we actually just for model low-XXs. the upper top-line maybe in like little forward. structure to But wanted forward end So, probably XXXX the it without teens sounds growth the range as to move talk right the lower in ought

record by operating this have, performance a our we as So reflects scalable quarter what our margins. model demonstrated

however, as QX We our invest, have to by consistent will next to that, highly margin allows will years. With to very can sequential give on us Having with model, that continue said we contraction. a prior which healthy continue implies regards you guidance, our boast see invest call scalable guidance, margins. to earnings we XXXX and which

that. Just if I follow-up could, one on

So closed? deal the when Nevis exactly did

It closed on August XX.

August Thanks. XX.

you. Thank

Our next JPMorgan. comes of Sterling from question Auty

Your open. line is

Happy Thanks guys. Halloween.

Same to you.

kind of I'm GDPR, So curious.

about for Do talked I strong out results – moved think, number You was that think initially past And that? seeing a a pointed Europe. I initiative? specific by we've driven in of traction you are deal distraction GDPR, think vendors. you actually

security think of and which understand security, X,XXX their accelerate IT, it's the security is to people transformation. and than transformation essentially, the was that starting him. companies means got handle or issue building digital more Khaled it, that set because you've could to forced, and accelerating better the you've into of that good now infrastructure fine got Société much all, privacy major that It's security I bolt-on becoming the that Enterprise but their up in for a And it's because This your you have velocity reporting shift. have solutions. to the think now he's to and Soudani, the to And it's I regulator the of strategy fundamentally than they entire revenue the GDPR, many U.S., that entire improving another build rethink of first Europe, corporation a to And COO has to if their Europe, and the security security, people add I X% of because of don't which to pass coming about business. prove a fundamental people all DevOps for on impact and deeper is huge, Générale the that think to digital now requirement huge onerous Absolutely compliance in and the a traditional fundamentally the cannot speech something both U.S. notion especially so things security of much components – security much it's of GDPR look have it like got at the course, been the impose their customers. could is a to you lot data That's guardian of shift. the as of the okay, of regulators That the

same a so have lucky, And in think we for way a other of which the were not I architecture, because vendors. lot we right is the

makes Maybe their others. vertical U.S. on some bit us give terms one what you think, saw I in vendors decent of year of the Government, a That Federal, you demand of given Can for for was sense. U.S. experience, and end? out little fiscal question, other your not a maybe

we So Again, not all us, other which between XX% the at in it's like Federal. vendors, very positioned revenues to are typically the of different. for XX% all are

We have X%. only

scalability, say have the fact everything to ability not only Azure again, exactly That But their put So world solution big. our when I government for really is deliver that are pretty the And all we comfortable across us, entire government And or means it's cloud on on premise on cloud the cloud yet needs is solution. are to importantly, more they what AWS. stack the that cloud-based really solutions. because immediacy, gravy. and network now the require solution,

now just the customer. Service course, So, with Qualys a cloud. Secret is And, now we mentioned now we that's which what saw has a private Lockheed, of

the coming again. to finally, us is market now, So

gain. But it's time mean, to the very of government very time, takes – as some new well going take and know, us, all lengthy. it's for complex you all So It's procurement it's is for course, I us. so

everything to gain. We have lose nothing to here,

you. Thank

Breza of Robert Northland Capital from comes question Markets. next Our

please. question, Your

the in well. seeing at awake some, seen tea companies or intently? was not from kind the of, about with night causes could or of, the well think, execute Europe Philippe, you about, U.S. We've of if on it's questions. just Yeah. I stay macro leaves backdrop, some Are kind curious, environment, talk the you some anything prior tune more think I macro a that so to whether and you

I it we Microsoft so cloud have we – that at click we think to so any compliance No, company Nothing provision for security that's agent the can, have on us, and example, of mouse, install, give and are do. are nothing environment absorb Azure. will continuous because a agent, integrated just Qualys click a Microsoft customer a Azure the have the when the to is posture view positioned the the Like, This integrated. of into to on essentially totally which well also essentially link for of Azure, again, ability Azure, deliver our can in now we way ability to secure. Microsoft They a it.

That's into to that it. So security they game. they this environment, really way new are or it's are we to cloud whether ability private, the integrate or see whether build the security public

I So, that thinking of GDPR get. could onerous because we you is of that on the the penalties mentioned see earlier, accelerating Sterling, question that, as

they be ahead I've Because and I'm – able revenues not of point candidly make harder, during Lord, to environment, should to RSA may is times a Galileo, be harder say, secure really going becoming to as want game keynotes my So and that secure in many the not in that quite put invest like transformation house my getting so impossible, the base. thank I mentioning X% your going computing digital the felt (XX:XX) to I that you it? didn't sure arrest. to to network to America, current I'm been the which if that in of I'm not over years fine, me

that to network-based more environment. much Enterprise need environment a to we move then So, from cloud-based client/server

your to cetera. around comments follow-up the customers cloud, to Microsoft moving a as Azure Maybe and workloads et

your terms you applications, being that the the running expanding how – increase back think as et Azure of cetera, addresses seen customers IP scanned, be have As workload, need model, cloud, whether of we scanned about business should AWS, think in toward are or moving seeing those sit elements IP number cetera, or overall and et we they're because et to or being addresses expansion obviously, still more cetera. more But... they're you the the scanned, in or different about

this Correct. that's is – sorry, go on. an (XX:XX), interesting Well, a yeah

No. I'm done. Thank you.

Okay.

question. a very interesting that's So,

is In parts that your critical cannot critical today just your a applications. look one critical at your fact, there add here. two moving realize servers, On and you perimeter hand, few customers –

is so got with connects if have these to complete on interconnected everything, your now well, IT. also your very got everything because environment. – really environment And IoT as that You've you've soon that significantly a on to visibility prefer, of entire devices increase, you the scope

the that that are the you as some IT since we reduces, of moving course, course, number But on cloud, these assets it so to so even work. have going lot we they of that been to much time, are customers, today, into of still see may existing you been assets on-premise with at the customers assets. same the XX at are XX% our old Now Qualys expansion under look of room still – grow there's world of a have have that for there's scanning within maybe years, which of to in their

then, need environments. their the those which scan more. in cloud that they've today, vulnerabilities And to assets, to identify or to they on got are do course, assets now of solution have So

is the do platform, you unique So, that Qualys with of the both. same thing very

a Does it's customers. sense? for that So win-win our make

you. Thank

question next comes Cap. Our from Michael Kim of Imperial

Your line is open.

guys. good Hey afternoon

partnerships, MSPs. other think and consultants about or greater partners market? focus see do to exploring or routes E&Y to regards a opportunity with new do global Just the like you with How

Yeah, absolutely.

established the all So, well Qualys happening have Indian now, Wipro, some first with position of Tata, both which recall Qualys may outsourcers, very as but previous Accentures, today, that as customers what as HCL, saw, from of the all, our a we you the partners. is calls we cetera, significant are et the

outsourcers really the Indian so Ernst transformation can, digital by focusing cloud-based accelerate not the to and see transformation again architectures, prefer, we in retooling fact, anymore now Young virtualization. building if & these way is companies consolidation customers the provide not they on absolutely which which are also virtualization, Now helping the center through digital data like you only their and of

has then, Now of at containerization, course, as look it's you've security the a the moved, got and technology to whole.

– this advantage that's it, and able from fact this so an big partners, simple. to to we, it's cut is again that of new be So in have fit have cloud software Qualys the solution Enterprise initiative doesn't architecture a you that into is to here this

So essentially, companies partners future, companies we a we of their next with coming other see see we're securing Young, or that from security data for as strategic pleased very the We Ernst becoming brand-new center would with that I call, which it. for and very and these, essentially & generation course, digital of accelerate are center. helping are outsourcers, partner and their transformation strategic

Thank you.

Our Suppiger next Erik question comes from of JMP.

is line Your open.

good taking Thanks and Yeah. a very question on for congrats the quarter.

Thank you.

last then bit nice had you Can can Agent you that? dynamics talk what about are secondly, give Cloud around little acceleration in has couple quarters. the of we on reference know a And the The a for think have of count, I count. I a frame penetration we your but had? what you've customer sense think don't a customer good kind us of endpoint changing

at sense this can give So penetration of what us some point? you've of kind you had

a means extension natural we doing Cloud same, from Vulnerability and natural our a already the are Policy It's Management. customers, the Compliance which have still extension. very that speaking, generally Agent is So which

Cloud kind is, customer a As Trojan Every well. Agent for us. of, Horse you know, today start new essentially taking strategy this as

don't scanning ability really way – any it time the solution you as the – and they recall, look that fetch and much may only really don't don't doesn't it Agent, real you have Management expand better need now doesn't makes to it Cloud this – take you to need gives more it either. you a our to traffic Vulnerability credentials, so they provide at because and is much not them it immediacy the And you Compliance Windows,

the now since same new Monitoring with File next – endpoint, time, we Vulnerability that generation are they pleased very the But are the So, what and really which slew scan have of we don't of endpoint which at because pushing have is detection us this enabler going to now really Indication good, more our they Compromise, a Compliance are them. endpoint Management we of the that shipped services, on an are very of the that leaves is the of at Indication really our start Integrity you and Compromise, network. of

network, more agent prefer, we beauty going that's for very more track But is and now which have help the and on And course, of course, endpoints. again solution. the will architecture. we are acceleration IOCs, in have services other if many are you the you of these very our And that even as our So, that's it. strong the our our then, of the to Cloud us we out And of now if continue, of that, today, Agent to making unique traction, never still are start endpoints. is endpoint to why the the Agent on see we

penetration estimate shows how which opportunity, much is Policy standpoint, Agents. X%, customers our fully current But deployed that from so, approximately customer customers understates Compliance or VM percent even grow. Cloud similar Agent base, out And the with to just room our because solutions, we the of of to have have Cloud our a not we also, their

customer opportunity for growth. more huge within our there's so base And

you. Thank

of question Gur Stifel. Our next from comes Talpaz

Your line is open.

Thanks taking question. Great. for my

And campaign. this adoption, as the vulnerabilities and between a announcement your you just, speaking, Can serve correlation sort Ransomware specifically hit you the So, release, driver deal to you in broadly impact given the of of, Was a seen ransomware press talk solution? more NotPetya have was pretty by just ransomware related natural ransomware? in made which Maersk, about here? notably customer interesting of the

let And explain. Absolutely. me

what did, crippling for So vulnerability a WannaCry, companies. And essentially a and rude that's exploiting that which pervasive that very ransomware essentially a companies. a is lot WannaCry is of awakening vulnerability, then

today, WannaCry. APTs Before customer, they discover was so Maersk a which which your everybody example, But business now just cripple of certain was Qualys gave idea. not an on are number targeted, as Nobody which and vulnerable an to after devices, effectively focused has today a to are and can they the we things. okay, go

we existing you're course, which customer shines we where Qualys do entire you immediately, are to without if fantastic environment, having we you more remember feat, have because tell that's scanning absolutely can you points even your we today, a indexed, start Elasticsearch Qualys which immediately end, and engineering will Then, So search and we more. of an our to through is back now and data which tell billion XXX growing.

not allows And give we as you got course, now, exposed, through you go them. where discovering dashboard, even tell we this would immediately see remediation, follow remediation, which then which you everything, to are to you exposed. is immediately So and of are is as follow can so course, you important, you've of but the through ThreatPROTECT, the two where the you only seconds, in

So the more trying scalability as going course, the into detection, And, that very the to continue unique IOC highlighting to and business. detect essentially been and new of of – be the at interesting capability now moment our created the infection. it's has is we moving has of something ransomware

So this to into that we extension platform side. more starting response that are go, we build to to are the into is of course, starting our go

that the and if to take, direction of deadlines platform that now, to WannaCry, responding detect that's vulnerable are of here. to our capable the short, expand taking. ability today, to course, absolutely occurring. going attack But are you devices an story will But make is not of also going because and us I'm our we some course, of to give being serves time, So we

Thank you.

Our next Hardt. from question Ryan comes Monness, of Flanagan Crespi,

Your open. line is

such talent head Silicon kind an in that have heard for the does hiring. you offset that We've a or fact as Valley. a of had there? you about Has of, large problem Pune, in a count act been I scarcity the guys, question

Yeah.

was a of end huge our decision the essentially need because, can scalable Qualys a solution. you that about technology you injection fantastic you re-architect see lot been coming. the I, all two course, has years now with do end it of new no, Lord, made So, back Sumedh to ago five you and to issue. fact, things. in And we our One thank and And now see here in injected to them are investor that integrate a great, job. The challenge a open single have need back done but and source end. make to open-source where absolutely of is them we has And can this into that's back presentation, that

able could to we been because ago. years in that find Pune – very Now I would not and have not we And if will talent. to Sumedh made the the five candidly have not we invest decision to, do job,

to difference Now can India talent. And really And, big India. by The years specifically, we for that difficult India still the that way, And think advantage, decision that profits. generate fantastic doing I still thanks in need ago. so went we are time very, glad we investing of in India; we terms we We can we the to Silicon discovered we massive in the go Valley, find talent to four very we continuing cost. it's made for while do the that cost. cost, of now to that huge course, didn't the – the investment are

in looking us a in years And inorganically, five we'll we we're to with first we've may are company where where a at acquisition one we're the and our benefit and whereas have be acquisitions, ago, position also platform position ready. I for is talent made the not add think given added been

while model who ready. were push to a of first to us doing that's solution spending being our lot the growth by more we acquisitions, build want to In a now trying able to our having other no, platform. additional also our Correct, in to trying were platform about before because money past, to it's platform advantage accelerate of the people explain, all integrate the

we is we sense. can we it way But foreign that buy a or can for there only DNA So that them. to us if architecture also foreign the such them, that DNA designed buy either is also and makes take we build in take them that it.

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Thank you.

Our comes Matt next Capital Markets. question Hedberg from RBC of

open. Your line is

taking new to for questions. continue a my be Thanks Philippe, Great. of driver bookings. products

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code. may that Support, Officer, have So, in attract what DevOps, the now Chief one uniquely, because Ops, give is really of under in have that very we we as done recall, Customer just under Product our all we And Engineering, India you we the opportunity and why India. one cloned Product them top instead that can writing we also talent really Sumedh, contribute reasons that's of Management QA, to roof

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application that's three prefer, Elasticsearch, was team, our App or by Cloud you example, if small. If you team, are So that tell for I done it. people,

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well, And my today than Monitoring I and I Philippe is, Cloud another I these of mentioned positioned File better technology for new the is Agent and as Integrity Matt, IOC. in underpinning previously add, mentioned prepared solutions like some would that we're reason think remarks as even why

easier much added it for X that deployed, Cloud makes Agents with now And to it customers adopt solutions. million having these so

Absolutely.

you. Thank

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Your question please.

long-term Okay, Is of function deal great. QX? primarily ask the on a and deferred. big wanted the I Thank Melissa, you. to deceleration from that MSSP

the sold The QX. not Actually, MSSP exceeding a of deferred the deceleration in pre-pay is of of long-term in deals amortization amount result it's really the existing multi-year deal. deals

cash reason. if now And recall, So, regular that's in levels had of QX in pre-pay the flow, talked we're back We than you we usual. to multi-year deals, large terms had pre-pay by and we number higher that focus a current of and our about was we on multi-year deferred of that's don't force customer our our sales way. intend drive don't because don't drive business we contracts, – business we really and requests. do a our It's driven one-year deals more majority to is

Thank you.

Our next of KeyBanc Rob Owens question comes Capital. from

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terms any – Liz This weighted? Hi. perception to impact the profile Rob being if demand? of impact Related you the the and curious your on end front And Vulnerability question, for the business high on Owens. Management think Equifax in Thanks. overall what ransomware Verity do quarter maybe maybe is more to had of

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you. Thank

from Srini comes of Summit question next Our Nandury Redstone.

question, please. Your

your deployed All taking Nevis departure attached certainly you have my IoT devices a it premises to for comment looks going to right. network, question. regarding right from be like, Thank on the monitor which now? into on is you solution be cloud it'll Philippe, your ForeScout and acquisition, model, or the

No.

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So have essentially, at will tell you look some way the to the people market, be we you, agentless.

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have highly back scalable to need you end. So a

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my have you're landscape. the mainly seeing any there? into competitors, little Tenable, seeing Philippe answered. your competitive dig to a of But from questions that RapidX, been bit changes (XX:XX), wanted Most Are different you anything just

analytics mean, clear doing as becoming that think mentioned RapidX and (XX:XX). That's really I an earlier, this today focusing everybody, their creating I DR are so is is the through they is of more platform. for I what the strategy very on more they're inside acquisitions,

execute for to that of that, strategy. that's course, So on them

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other deliver, the cannot hand, you really, on AWS On premise.

will if do have they rebuild to they – So, to will that. all they want that, have of

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Thank you.

Melissa Our Morgan final question comes the of from of line Franchi Stanley.

is line open. Your

of on comment And could business. of for your I the in. you relationship with the health have me at expanded beginning think was Great. I squeezing just you MSSP if Thank your you a know you number relationships. year, I IBM. Philippe, wondering of the that also

that's you? the if – So becoming if just overall any a if have channel you and more change there's view wondering any for in strategic

So that's a good question.

new our existing So, happening for a fine. race What because have generation MSSP the really is MSSP with there going they business is built see is generation, I doing to that be to go thing we to Qualys they technology. years we to have and ago, if we back their new four did, realized that own absolutely as well. inject needed Like retool we

our containerize now of everything the platform. But finished it. do, just we have we virtualization We entire that

tell to you, just moves so So fast. technology

like with a what that, see really against Ernst & like different opportunities, and that's – So MSSPs. compete more companies a once technology come others Young existing, moves trying it architecture to with newer the gives with and fast we established to

for quite platform that the are the we people for Army or Swiss So us, have race the frankly, us, And leverage. can Swiss here more on. a – is we

architecture. to the this obviously, easy integrate environment, in right because very got are we've We

them of, for more see a, opportunity us. we as kind So

closing to this turn Thank to over call you. time, Ma'am? the Mi Joo Kim back any for At like I'd remarks.

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day. participation, this gentlemen, conference. and for have a and your wonderful concludes today's Ladies you Thank