Qualys (QLYS) 13 Feb 182017 Q4 Earnings call transcript

Good day, everyone, and welcome to the Qualys Fourth 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.

Additionally, we do invite you to email any additional questions to ir@qualys.com. to President, call FP&A like Mi to now Vice Kim, and would turn over the Joo I Investor Relations. ma'am. ahead, go Please

Thank earnings and and afternoon you, Qualys’ Gene. quarter fourth welcome full call. to XXXX year Good

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

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

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

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

our XXX at included great year closed the normalized headcount and that growing our full and XX% MSSP call. FX We and Melissa while for margin quarter with revenue pleased time to EBITDA full-time strong XX% almost continued earnings report everyone growth XX% annual employees. record QX same you, Joo, and of another to welcome Thank I are revenues XXXX to profitability. both and

and XXXX worldwide gains has the These plethora with report across the results a customers share previously, managed Fortune X turn the and to record end enables allowing Agents cloud-based of XXXX at momentum the XX%. XXX XX% of a penetration the amount while in to which wallet solution we drastically and and happy cost into X a platform evidenced twelve XX% by and increased, their platform. consolidate the end-points Qualys transformation XX,XXX security share from mentioned Agent in Agents, XX% our reduce complexity leading as are in are initiatives. with and maintaining of XX and as security months, and million XX% and times security our and compliance customers digital fact, centrally us deploying last are expand environments. of attract had is increase our cloud these on-premises, we purchased at Cloud and to subscriptions as Fortune build ended to number enterprises over we customers almost ability, them QX of the help Cloud XXXX had of position continued in over Cloud fact see customers to And we We end driven our stack by new well. the their market our leading of to reflect This our quarter. in unique our the helping on compliance that of These of XXXX from been last the This compliance is self-updating, over the that standardized have companies our that

have compared of or a enterprise three XX% more to customers ago. deployed our now XX% In year fact, solutions

Management Market. Assessment in the Worldwide Qualys to the Qualys second X% Our Worldwide and Vulnerability position is the has approximately IDC, announcement According for Worldwide No. our a and number the in today the in X position that been Segment of by Security year further Market competitive has Vulnerability Vulnerability fifth in validated Security Management row. and position

revenues As and services mostly know, revenues. software competing you are vendors’ contain perpetual

a subscription ratably. as understated As is recognized fact Qualys’ share in revenue is market model,

our for to well expanding solution continue set both progress our customers, on organically acquisition. We as through as

quarter this a iOS, sheet expanding developed technology company malware which and within comprehensive enables in another bring mobile integrate that a acquire signed own After potential we footprint happy as on well base. Their well architected term your This well platform. both provide let devices. platform, enterprise-owned to and in as security, as prevent, detect will platforms discovery, which India, to enterprises we we mobile to be technology uniquely customer you we to endpoints, employee-owned our I to our Android response know able respond and as into into and devices, enterprises plan agent to both for corporate-owned has our inventory, am compliance solution Windows integrate and our

expand leaders solutions to cloud Our residency competitors. environment, private our provide well unmatched cloud our to offerings. is and our by cloud allowed provide is unmatched private to us competitive global seconds platform territories a on-premise ability as architecture, companies scale, inventory, subject ability IT in by technology to cloud choose policies. why or their deliver This immediacy. to to inventory, then secure solution in data our asset be will in as two This thanks accuracy or and has our strict we Furthermore, within IT uniquely regulations global

you to a enabling in an global and expertise Availability More of that Qualys as also expand of domain us of our new several In Engineering, August, to detection us scale. as of now of File in FIM, expand in scanning, let Monitoring, addressable we real-time added the during market. our joined with cloud NetWatcher We inspection, NetWatcher, our important Configuration major Business significant released our Correlation reach Security have recently, platform Strategic SCA. launched XXXX for to respectively, capabilities Assessment, Nevis applications us which VP Integrity customers intelligence us our acquired acquired threat packet point Alliances QX was which also including we into ForeScout. Shelton, by us the Kenneth to served our additional passive partnerships Indication customers. with Platform, MSSPs market, into adding partnerships IOC, addressable These The and and Networks, which enable completed the of we Compromise, acquisitions. known in VP us and market applications cost-effective XXXX, expand help currently XXXX, solutions provide more and and General such deep co-founders manner. enable groundbreaking additional Suhy to as Real-time Threat year for to expand Development talent our management Scott value first our all we have solutions to we provides new remind two In me as

and a near we to this and correlate speeds cloud high components light in addition to of releases, significantly information sensor to our from millions a for our distributed process, invested store technology added manner product coming In new in of ingest, us devices. passive platform innovative year. analyze, data volume agents, at We scanners, analyzers, enable and

We have over elastic having customers amounts almost XXX indexed billion the gives large clusters query to index our points X-second This security results. of our in search instant visibility data. data providing without them

the CEO talented We our see significant of recently we and hired our grow Bill Federal who of Group and continue in as CEO segment was Qualys. growth to General Wildrock attract Wave opportunity the to continue business, broaden formerly for to We Security and people of Systems, As Federal. VP platform Qualys. our Solms, we Manager

who for Neeraj Getronics, our hired India. came from also Sharma, VP We as of Ops

who Additionally, Amit BMC, in and us of functions for Finance, managed Godbole, previously as financal India Symantec large VP joined India.

strategic our XX% continuing in Pune. and rates talent of expand R&D, operations as now advantage add we have at India our an can our We support cost important employees world favorable in represent to we presence to structure. and customer are class This

of solutions, and XXXX, and the new expansion of customer we further of features adoption As and look release our base our expecting we into offerings. many growth are customer

Assessment, expand current Inventory Container plans Access and well to development markets. will Inventory our Cloud Discovery, Assessment, release Cloud Security a adjacent as Network Management Secure include Passive strategy seek product continue Security accelerate Patch be of our Acquisitions part we Security, to Management, into as and and Certificate of Control Our Management. as the Certificate and

As technologies, similar security of in in will for such, we a a today opportunities approach invest manner we designation to acquisitions. our compliance related stage million from $XX which to venture and in investing, announced early

current will enable which performing continue closing, cash employee we excess generate our as we in program, we for in stock one Qualys security of from the to In grants dilution noted. to best M&A, for was announced repurchase our reduce use pleased XXXX, are of our Additionally, us that million share analysts $XXX acquisitions. shareholders as very and today

grow winning a product continue evidenced leading With renewal an of finally, key to partnerships. and discuss our maintaining performance and Melissa a to new building in recurring up about excited very expanding see a for and portfolio that, as our, the picking are we momentum and industry financial We And fully in our by XXXX integrated our strategy to top business, as you. strategy partnership new XXXX. our as trends. balanced line turn and our results one, up-sell strong while Two, business I’ll we financial guidance foundation call profitability. over revenues, reflected of strong the business, with opportunity product as Thank

good afternoon. Thanks, Philippe, and

successfully great revenue by XX% are our record in as all new I'd note year stated XX% released and over features otherwise. for despite enhancements non-GAAP start, XX%, growth investment year products, in figures to figures, like revenues unless I billings EBITDA Qualys another year financial achieving was several except the Before continued while we growing of in XXXX. business, that including and XXXX and margins for headcount

X XXXX, end we the had amount in at sold Cloud As times mentioned, we XXXX. Philippe sold the million Agents of three

solutions category, and be we solution continues Agent experienced newer technology we VM-related for customers of platform, existing saw adoption both our by results adoption IOC, and strategic newly these customer provide of a re-acceleration new Protection. solid as solutions Cloud foundation of influenced for also for is bookings very recall, and Management Management including good released many customers solutions. underpinning a in In like as Threat a growth customers. to Vulnerability FIM our may Agent our Vulnerability you partly Cloud from XXXX, of these the and new Our

In doubled XXXX from fact, the the in from than to XXXX percent released contribution year. new XX% bookings more since products previous of

in multiple average Continued is customers adoption for and contributor a of cloud revenues enterprise meaningful sizes XXXX. with a expansion to apps Qualys we our in deal saw larger platform

four generated example, on we with level more XXXX, annual XXXX, in the of only customers enterprise solutions As an saw end of the At purchasing more generated $XXX,XXX end revenue. solutions. approximately enterprise customers of at revenue purchasing average or three or that

revenues quarter were fourth delighted the which Revenues growth Turning fourth and to XX% in profits exceeded quarter we over $XX.X the now normalized are on our rate of MSSP that XXXX results, the our fourth from million, impact expectations. contract negative quarter the both from points a XXXX. QX revenue well of basis points basis There as was as FX. approximately XX represents growth XX approximately

existing in from sizes and we existing We to quarter up of year to performance EMEA positioning from demand Qualys a XX% by continued our to our the Vulnerability strong strategic saw solutions very increased as Management upsells in and XX% enterprise XX% of ago or both perspective, healthy this customers product quarter, XX% leading continued this the and demand growing Compliance see percent From new and customers. their QX cloud deal three to and increase customers quarter the rose with The renewals driven average categories. perform platform Policy year-over-year. in year-over-year. terms well, markets. in more saw continue a in from revenue We strong

We continued good very from both growth Protection. Cloud and Threat to see Agent

bookings Cloud New or to total are of include and Compliance, products XXXX convert approximately the the contributed bookings to mostly Agent, in XX% These renewals associated Cloud Vulnerability since Agent. to Management product subscription that due new which quarter. either includes Policy released

balance team. fourth current the XX% as on the XX% $XX was in Normalized quarter would an of of margin the fourth balance, revenue was XX, to includes compared $XX.X quarter as year-over-year from XX% $XXX deferred million, than million Gross XXXX for revenue the deferred XXXX. to in billings, of balance current QX which gross XX% the a one of outperformance same $XX.X year-over-year. XX% fourth by for year. change XXXX. approximately the quarter margin fourth our Operating December increase QX, In of at Netwatcher by XX, from in greater our revenue month profit was XX% to to December grown EBITDA FX, QX drove from in quarter revenue quarter XXXX, expense quarter Turning current $XX.X deferred in XX% XX% the our million increased million. the expenses fourth our of XXXX. year-over-year the balance XXXX. to deferred of have impact is up revenues representing XXXX, million Adjusted increased revenue, in Calculated the last plus XX% current for

million Lauren over Marketing higher that year, year talent of significant Nevis, higher increased year, technology taxes. million excited Development Kenneth part X% $X.X Netwatcher headcount Net year have The on X over to or shows. billings expense G&A Sales costs or year, payroll & increase as due primarily in $X.X provided or in Research trade only Scott, to in higher same headcount. XXXX not in to XX% fourth cash flow We’re operations quarter to due driven the period & to higher year-over-year but greater to expense year increased expense largely joined and growth and to as $XX. over well $XX.X from Like XX%, as and by increased spend by headcount with our operating us $XX.X in was million XXXX. million million, us. well. cash in and the by the primarily profits. compared related XX% driven increased

was for benefited flow QX improvements XX% in of $X.X new and in quarter million were $XX.X flow for in $X.X the excluding XXXX. our also $X.X for the in million of payment, headquarters fourth the business year-over-year Out cash XXXX, from was our grown million expenditures cash reimbursement quarter have Our fourth would to build new operations this compared the million $XX.X operating $X.X Capital QX. our operating out. headquarters; of million, leasehold million of

Now, like XXXX to talk guidance. revenues. to I’d about you Starting with

guidance from which revenue For to the XX% a XX%. $XXX.X rate growth our million million, full XXXX, is to $XXX.X year of represents

in $XX.X a the XXXX, revenues rate be representing to to quarter $XX.X XX% year-over-year we million first growth to range XX%. of of of expect For million, the

people we continue XXXX and invest year so to the will expect operations, in Given and roughly be growth opportunities full to margin of ahead we us, systems operating flat.

be range in XXXX XXXX $X to of $X We of in in million expenditures $XX in expect to to to of and be million capital the the million million. range QX $XX

statement XXX, be from income will upsell by XXXX of of impacted which the expensed. Our requires positively commissions previously adoption which new our and capitalization bookings, the were

estimate impact margins this capitalize XXX our over five these basis commissions approximately to years We expect and operating to by points.

this driven decline has calls earnings which our in share. Additionally, XXXX guidance, tax another and tax in per Qualys. provides growth in reform and driver and cash our of effective for non-GAAP a illustrated XX% rate for meaningful growth flow EPS XX% That earnings is

As continues our to share evolve. expect we metrics we new XXXX, business into to as enter

initiatives two with and announced part continual allocation. efforts as operational meaningful increase and in profitable Additionally, XXXX XXXX due generate to cash to reviewed as generate and we’ve consistently as value. finished our We model, important grow have cash we we well, our expect we highly our capital to $XXX shareholder today in continually investments million cash because of

initiatives part investing. million announced to we’ve of $XX of for accelerate growth through our venture First, the M&A, as designation

strong delivered on transformation better set, dilution customers and we continue both to industry-leading employee delighted top growth application visibility our cloud consolidate stacks of and impressive components our secure position well our profitability. we’re is first year, share two technology to grants expanding and a achievements $XXX Additionally, and their us for These the helping this and for suite repurchase focused security. We and announce our conclusion, M&A. program an completed our execute delivered through for In market acquisitions. solution digital platform million plan offsetting new to into the open We from share and guidance. EPS baked which quarter repurchases, program line

sustainable both Philippe Our unique Qualys, be platform questions. that, would in now growth happy operational I and of and the answer economic to model enable and leverage any With for your and future.

[Operator question comes Wells Fargo. first Instructions] Siti Panigrahi of Our from

open. now is line Your

at you anything get a going quarter. GDPR good on as such some view this a growth wanted or level, on Qualys. seen expectation just of that have security year spending, I your help for like drive IT the just to Congrats drivers, Philippe, your macro to and

discussed I there times, the so and think what business what think, we a our two overall Qualys. quite spending few -- I is questions here, as driving what is drives

demand security fact would the continued absolutely we at the obviously huge careful sense we say the So that I that [ph] see what [seemingly] driving taxes is more spending are not here see consolidate subsiding everywhere amount in the but so contraction very that is stack. more with what we our that all is same We Do purchasing. see more see of is much because us wiser that’s exactly too spending. platform for And good don’t the our that the what does. course money of buyers

As all as people what is everything, interconnected the know. far business realize that that you don’t fact naturally because secure almost is drives what is Qualys everything concerned, cannot with you

our are less. of So that’s more essentially now the solution VM a, deploying customers not

very GDPR that So major course see element is particularly. is Europe that We not, an don’t see we good. in as a driver. of that but

I forces too to is the GDPR a think is the company that security onerous. in cost we it see of compliance what rethink because

we accelerate accelerating So security we as board our into means quite then few solutions do building very other to platform. business. and of is companies. which And initiative their of course, see companies retuning thinking GDPR their Generale of and essentially for IT their transformation, the with a That’s that, a good Societe what

across changes which cloud platform the have Qualys cloud on-premise endpoints have happening, we Give which to So are allows favorable very unique environments. for globally visibility, for that created stacks. consolidate us, all deploys you see that we this essentially absolutely you and because

So extremely positioned. I we well are think

are look products you and that as contribute new significantly It's are What to [indiscernible] good on the the what you XXXX expect to you guidance, XXXX. adoption, new cloud mentioned. but into in a All right. see products

our the have going Indication telling things. deliver So our by to with services our Customers see in received I adoption detection right we are all that know, of of what today are think you the same Compromise. other And integrity absolutely we won mention, we of GA with doing well services we customers. the monitoring scenario. start very are to those we file We

be would months us it's In which to the the today for going is course of difficult we which of accelerate them to see few data today faster other went you received. well customers enough able all very one we lot new adoption So tell for to the that. to points from than in is road. one. But say to And of hit have services

Thank you.

First next with question Smith Our from comes Analysis. Howard

line Your open. now is

First, NetWatcher, or Melissa, inorganic kind revenue from balances effect numbers. any effect, there just is and billings housekeeping. material deferred or of

transaction NetWatcher small. The are No, very immaterial. numbers

of then customer And terms the Perfect. additions over in year. new the

like at good So some have being talked large landing about penetrating existing company you do nice better strategy. of there? there. And most significant exceptionally capabilities kind and as of that Where to you But customers. harvesting acquisition the feel way you doing are are Are of as customers. some year still have metrics the or to it the seems of a we emphasis new job forward you would logo of terms get your you where new put you to in far there exiting kind

and price XX% from you the XX XX% XXX. the penetration our as to fact of are to seen, the end have we to accelerated also now top significantly proud we the of that So at going essentially XX%, Fortune very of Fortune

the So because very unique a at have end well we we scalability. continue penetrating high

ability now and really mid-market because services the we to world. see penetration that to start this for the huge an our we a have at opportunity we we Now new accelerate SME now more have see on

small to medium market deals. the we the enterprise, a are people. do A and starting large XXX a $XX,XXX mean I which We SME which to today between XXXX was year. as deal characterize significant is company

deals we $XXX,XXX. see even today to $XXX,XXX, Now of

many because customers. course opportunity a many there is So we see of unique very

more going we are to have totally being structure, you service So more now aggressive see integrated. that

the there So way is aggressive this cloud are which also to into integration also capabilities by the unique. going all moving be the very much is cloud with platform and we more quite are in midmarket,

we big very So also a potentially see expansion, there. expansion

you. Thank

Our Joel next with from BTIG. comes Fishbein question

open. now is line Your

right again one did. that in about I prepared of Congratulations if now. part will the part the forward. that have be on and mentioned M&A you have room of And guys for you M&A still I that’s are But ask may, the excellent saying remarks Is execution you can. going I DNA for a like two lot I the to if excited It's your still there then one near-term looks Philippe, plate you guys. is in DNA. Melissa acquisitions very or the Philippe on for just one more. going that the

Yes, absolutely.

rearchitect do to we We In that see capabilities. try first about Also fact, customers do long provide know asking to in into are everything, to as we thoughtful that way. the at because you that that do careful very measured companies a a redo us don’t line. road. jump a will everything really to in is because we this boost not We our have where a position top integrating we

very of premium not have to pay already few value U.S. same see third, that with $XXX prefer, entered get based. where which and exactly have Nevis today with where are we have [indiscernible] mentioned we essentially million you to be we them a them our have do and do absolutely and new new to done you the sheet inject, a if want companies to this we that’s just revenues I that term have the and company this these pay and absolutely to you have will NetWatcher, cloud we you into same everything re-architect technology So in what are that And will or have platform then into DNA can because want acquisition that thing. we

integrate good to one. and pay this price. reasonable we away have from companies can shying very very So yes, aggressively we are to that look we at that which But, continue technology are we going small

business of company have, is Microsoft to engineers device we acquire you how the and engineer. have how million dollar their of really That’s you are and saying, was many okay, metrics old are in a do Microsoft engineers We okay, would like a formula. we and pay what per some string many

that to And have derive some of we that this the so sense? have done metric that few we we acquisition today the are and interesting starting the works. with make Does in

Mellissa, much talked feels Is more Yes. great like the feels time. guidance And past it a very are we margins XXXX follow-up. and you in go. you which left are that I model how flat XXXX have the there as know leverage before, understandable expanded about makes but at It Obviously, not quick leverage have guys considering same the like sense. just is there guided for margins there giving and growth still long-term. to still accelerated But is case you

Yes. I that. would with agree

believe We accelerate margins. continue there to is an revenue to and opportunity expand growth

in we are that opportunities invest margins. but expanding growth to maintains going are us, to of in an And leading way we that able we said do be margins. to investment it's the continuing Given and up year a industry ended we XXXX, ahead still

of will flat there is the As opportunity believe now margins we future. kept be for but absolutely the

you. Thank

Melissa of Morgan next Stanley. Franchi question Our from comes

Your open. line is

on business what you quarter. talked wondering you just are how competition. you management I that in then touch acceleration could about and accelerated seeing vulnerability driving in terms Philippe, if the am of what's the

get essentially, go secure acceleration everywhere. you people to you variabilities then realize the as that and what know that have finally cannot don’t as you So far

the think, and And that the nothing to subscription. of gone because So the pretty want it's we especially I that uniquely costs vis-à-vis that’s easy go old few end It In market our is to to our I good for of they for make, that. high existing servers have accept differentiate with competitors at days words said and with the customers, of to penetration huge perimeters we the well alluded should so I And doing really deploy. of the competition other some have [indiscernible] scale business. back very the almost earlier. as are the enterprise us critical the, competition, point expanding our

us they they XX dollars here using there a our and Qualys, that essentially or yes, XX% few and the of some other Fortune platform. Fortune may expand say So, of on of we are Fortune the when Qualys on have but XX% XXX, servers means or XXX vulnerability for management XX% applications

instance. this one is This true standardization. So is small really just not

concerned, far momentum show here. as RapidX you the you significant to restarting two out that saw then] RapidX to lose if clearly the spending, [older IDC as which competition so to month the So and know [ph] is compared like look Tenable, reports last is RapidX, you

check the vulnerability times you which numbers As I most in methodology. from I always numbers. numbers. Scanning, their we management the IDC Web their the the This in acquisition is -- really can XXXX see are They believe a $X few IDC, I in to Application think space, mentioned believe the Quite that. that their saw of growth added of came which million

really environment is for are years. yet. this not what And Tenable through went So -- strong Tenable, is over we the them

gear really fact performance. we In the go to are up not in selling to

this we their strong to upgrade also is against because They are [investors] very are there compete consulting, stronghold. think going to are big Tenable [ph], the in they them to time trying IO. I which

see much So you aggressive are well. going to as also more there

So Tenable we the large don’t deployment. in see really

did we a home their fact have recently a solutions with grown which major few quite provider. cloud replace we of In

So good is over them competition sleep essentially. there all losing is in but I all my which not am the

you. Thank

with JPMorgan. Sterling Our Auty from next question comes

now Your line open. is

from know going looks from tonight. points basis we Sterling guided XXXX? ASU on Ader to in is tailwind are investment. some XXXX, our for is be what maybe there XXX being growth flat margins headcount like XX% Jackson but kind for With incremental side. with This in Questions I of XXX. the It factoring

spent. if was so would be to where be encapsulated are that we And and going wondering that

budgeting for each similar spend headcount and do in new platform. first in year for but what's function, across in going storage there servers system the look I and we HRIS and on growth that needed. year we we spending also There of the at would expect Yes. system. putting other When is be our FP&A systems process, is this planning in in this terms time will

going So add are is areas other there to that to it.

you look headcount so of is specifically, expansion are there at they if way also our India. And misleading significant bit because

at in look two an done with India. have this the you acquisition is and the acquisition If acquisitions we Nevis,

We sheet India. in acquisition that another are planning term is

the the So if headcount in have we for obviously perspective, look almost ratio. a India, you X:XX cost

significant and of established a with aggressively. hiring because here will operation India that’s continue there have we close we in that stronghold So good advantage have to now very there people we a quite XXX

you. Thank

comes Our next Meisner from Anne with Susquehanna. question

Your is line open. now

First question Philippe. for is

As investing in you're that a more your federal for looks and believe the of VP opportunity it would should is that mentioned, the space, an to I market federal? go should just to I be see revenue an kind expect area wondering, which the in is was and vertical expect the a we And presence new to Qualys. for grow you that of lot you GM from terms this inflection like point year huge contribution

space. up to if side expand, we absolutely. -- you the of And are to So our mission. the in from That’s we question yes, have part as partnerships also well federal also first the have your partner essentially prefer, gearing the answer the is, in fact

come absolutely because what problem, a need. has they and so for are scale satisfying there not of only so complacency to are certified, of and And the the absolutely, cost government. course federal they is the none Today, think, receive, most federal In down more more hopeful fundamentally, far boost the the have market FedRAMP As not federal we but in successful slowing are revenues, we them. that year. terms really, have And September, spent. a as know we attacks at the you which essentially budget has second be growth get are could revenues to modest the end still of in really while is But standard. XXXX when very terms we the it in going be it's to because takes We is solutions we help they and maintain time, believe question the I update. the of are generating current can need the because we we of may pretty

come, our fundamentally. has So time

you. Thank

Baird. Our comes Noland from with next question Jayson

Your line open. is now

XXX. follow a Mellissa, on up

think I FQX be basis would and of that Is starting pennies said of upside points you there. couple impact. of that XXX a in

guidance. That into is already starting but in baked QX our that���s

into impact will adoption the But already renewal and depend said, other as obviously our that of on quarter. you get by are new the we the what obviously So bookings the And the baked as guidance. commission mix of we end is it's expenses. official into our versus share going to ultimately

and products question have structure a And got on on you a And question lot of guess, nice products, for Philippe, the year. and of and I you a us have overlay a are team new pipeline is a there introduction structured you this intro launched as the product what new new product. you say is you management, be Could that a would works sales how how that the, and interesting. remind account sales

Yes.

platform. are enabled already of first all the in is new our important services So probably most that all the point

existing more forth. from to did the your trial appliances directly may we few application some for you customers, So so This In and request have cases for pretty a provision. and ask minor. is already can you a

buy. And and so really can you try

So that facilitates the It's absolutely deployment, our model. unique with the sales.

yes, is SMEs. have concerned as specifically, far sales as overlay force Now an of we

In some management fact, team. subject report in the them experts, project the in structure with changes we made make matter recently itself our we some, now

engineering they go fundamentally closer so we So on get market, feedback the product, could are accelerate to could the to from this feedback. customers and who

into pumped be back of directly So kind engineering.

this work make much could new solution we So quicker.

sales it's And where which our people we multi-million market bit lead fed force segmenting finally serve us force of at account, quite because the think kind reflects, force on also - are create a looking more reflects much and I sales are have now change business And also type are And a create have, launching aggressively better. more large to support adding sales so see we itself, to and again, the sales the generation. of we with going services which structure dollar new the different new solutions we essentially but you more structure awareness accounts. the force a now is sales and of the not to sales done but that’s because absolutely we important the account that’s very dedicated

with which us our So that. these all and XXXX a us they But competition for vis-à-vis transparently be integrate a is that because integrated. point differentiator services, year solution and all going they fantastic to totally huge are in of for new to absolutely, become still they try it's

So that’s where we are.

So I confident. think we are very

you. Thank

Gur comes Our from next Stifel. question with Talpaz

now line open. Your is

seen products. actually expand land customers in about our multi-product Speros primarily you have success agent Chris drivers on Cloud the customers is This the talk Can and your that strategy? have deployed Gur. of you multiple Specifically Agent for

everywhere. No, from it's

good say, essentially that summarize, delivering hear together. works. don’t of many fact, I hype security works we solutions advertise. and deploys all and as that other care It these In building are do what that solutions it to you we if will We

and you are that if you a So try can customer.

page the go customers So and the everybody. market. push effective we We it's things let don’t with into our for so home

adapt, renewal are we the do. A power we of have it a at and are it we I far now very customer services profitable what course sure more continuously enabled. pace and and them more growth, that known Qualys and And improve growth well we course very course their will there that growing innovate. having is of that rate more continuously works the the good how So and that’s they every of more become the to think to growing service sticky just base, we is and own very well. that of make do the And we

Suppiger question comes Erik from with next Our JMP.

is line now Your open.

Congratulations on a good very quarter.

us Cloud You other much Can range. in that new had is of how product services? sense give Agent any you XX% for billings versus the the talked

Which, Agent, as positively we we Yes. Agent the Erik. Trojan our It's a today Cloud for I horse move solution. have share still very as mentioned, Cloud new as mostly adoption of

that solutions new Our the rely on Agent.

a how XX% not of Agent the Cloud us component rapidly of is give you that sense growing? Can

growing have been continued both they of both Cloud portion those. They is very Protection mostly which It's overwhelming And Agent a are Cloud and well. well. to do very

mentioned we Integrity GA ago. adoption the earlier, I as We and a of And detection of to see launched start of few months now just File Indication Compromise. the Yes. Monitoring

think Europe quarter? Did business, was comments you in you any I that on North American how going said how then the And was well. Okay. have performing

the performing, business some is new well. because in is quite up has American So In momentum that services. now customers this Europe Europe the -- of in by we expanding bigger by revenues U.S. not as in to increased performing had networks fueled something been big, our growth predicted vulnerability are adding new Europe existing from the saw bigger because growth is essentially, have or network so as as their customers. solution Europe, But more that as the been we sells you management driven may essentially I see well recall

So combination deployment the more coming services. is from but and addition new of services, works more on of in the growth now that other a VM of

put together. So very,

Thank you.

Our final Patrick Research. Arete question from Colville comes with

line now Your is open.

quarter. a couple of Great got questions. I

flat factor and the You to is that a mentioned on NetWatcher billings it Is 'XX. side? is for And immaterial that immaterial op guide? also your behind cost fiscal guidance, year revenue guidance margin the

give reminder, company don’t financial with billings statements. guidance, to a very early revenue And just No. we it's Overall, immaterial give guidance. as really stage show, we a our as

be GDPR they kind for customer, will a And Okay. related using? customer, products which of typical

across of of thing and demonstrate the that that the So your forces essentially have the big with to the GDPR a privacy obviously data you regulator to been you GDPR security the is customers. good guardian

have program is compliance So is management Qualys a strong where where strong program of product very part of which, very very course excels. this a that and

it's so deploy will is cost that going the prove we time. and us when Why, accelerate fortune Qualys. is job. solutions. natural not What we futile, even bit for to with because There unique speak their to that to GDPR a Security future are forcing we of and see are has we a that And transformation continue in happening would take each never do that to that a growing us bigger software something part other. are are difficult expensive, company little trying solutions because if very is It's good is with driver Europe realize is a us. to So do, a a natural start. change say, very what doing long to it to regulator and a here they

fundamentally what most everybody Europe spoken thinking. you that on that’s every, is So prefer, here. I now have in is the That map with, of those CIO, if same

announced. like solution by the security And of name now we our the And digital so then question game let's the is bolting on this becomes the accelerate enterprise cloud. cannot transformation, the Generale is, publicly platform another extremely Societe throwing additional need the cannot this our cloud We already cloud, you cloud And because to where security in. add-on. from unique build secure is private continue really

going itself. the need our of So only does. capable inside Not platform architecture exactly you what to this but that’s be of platform our new cloud entire and cloud Agent,

can about to extremely more into you positioned security that we can transformation. company hear today us we your well So are digital as built claim April. that only to during the loudly are speaking RSA And the help going probably in who our

I over questions to conference no Mi turn Kim. in Ms. I further the show would to back Thank so queue you. like Joo

at you in month forward Summit Cyber seeing XXXX thank call. this JMP year fourth and Security all you We in quarter the and Stanley of Conference Austin, many Gene, earnings San our to XXXX Technology Conference, for attending Thanks, TMT and full later look Security Francisco. Texas, Morgan Jeffries

Thank Ladies and Thank for gentlemen, participation. you conference. today's you. that very much conclude does your

day. Have disconnect. all may You a wonderful