Qualys (QLYS) 30 Oct 182018 Q3 Earnings call transcript

Good day, everyone, and welcome to Qualys Third Quarter 2018 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 Natasha Asar, 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

visibility. I that of there watch is at short in and IT, as single-pane-of-glass in of earlier you, position and www.qualys.com/visibility a reinforced Thank earnings of the results security position in leading as month European leading growth the and you yourself. environments. revenue Securite, security La I welcome customers our is unique view security to to Assises it clouds in without security in could Such de our keystone report met assets, view continued endpoints, and soon Les compliance with -second when our IoT call. to cloud-based and see I to to strategic stacks for compliance competitive. you To QX mobile, and the invite well Natasha, OT consolidate as experience on-premises two video They Monaco because everyone Melissa partner both pleased was conference they security a a in visibility and need effect, These across This fact current unifying platform are and reflect security at all that no they and accelerate profitability. so many transformation France. by competitive a as as Qualys as GDPR the compliance of shared their remain with move their digital part me their capabilities

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provides policy-based simplify layered-in and that capabilities the solution end-to-end in presence through the applications, container the protection, remediation response also security. So, further

OT, including in We Awan Engineering, have of date, and Cloud as acquisitions as applications employees with organic complement and expect In and compliance our application on also availability key providers-hosted Platform summary, more expanding Kinsella web visibility web accusations IoT VP and containers, devices. Asif our all our Security. applications, IT quick to to and line side, coverage Qualys assets customer-owned SaaS joined web integration into Cloud comprehensive our general providing innovation, of across QX with the Security provide CTO In Container including our global Platform security Container XXXX. made John applications, APIs,

good DHS infrastructure platform DHS win critical Qualys large were be make Qualys' Assessment the competitive has penetrating support and the delighted was protecting DHS deployment and progress a displacement. NCATS, initiatives used We to election in market. National in in Cybersecurity the Services, mission. continue with licensed which Technical federal for to security. of a multi-product will We

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Thanks, good afternoon. Philippe and

Before I all note like unless are except that otherwise. non-GAAP start, stated figures revenue, financial for I'd to

customer. highlights. more adoption our Agent were $XX.X from rose up a up adoption with this to the continued the a $XX.X platform strong our to Cloud accelerated third the the Agents year last and solutions as for XX.X% $X.X to million or Platform rose reflect up competitive the quarter, quarter XX% for Revenues million a customers following four XXXX XX QX XX% from continued and Cloud quarter, purchased more XX% last customers ending months, growth like mentioned, Platform share million of results Philippe XX% increase Qualys QX. year. with Approximately, financial Qualys healthy Agents percentage Cloud adoption. of I'd months over enterprise enterprise from over three represents purchased with year ago, Cloud operational and or financial percentage As were ago. of in continues this which to by million XX $X the solutions quarter position same a

bookings. from released to orders of contributed And our products XXXX, total higher in in SME bookings saw number our SMB, since historical down total Protection we New driven solid average and did size This both Cloud Agent quarter, in year-over-year increase growth X%. the XXXX the from customers. approximately QX Threat result by deal up from XX% and growth positive XX% of PCI pull

enterprise However, XX% customers deal the average year-over-year. for grew our size

continues model for the and expect was third increase flow. scalable generate the EBITDA for $XX.X XXX Our approximately margins full-year to operating now representing compared We margins cash same quarter margin year. million, Adjusted drive XX% basis a XXXX XX% last of to significant to quarter industry-leading as points.

For EBITDA adjusted would for be ASC the comparability margin QX still normalized impact amortization XX% of specifically of purposes, XXX, commissions. the

our In Pune. the generated the $XX.X in inherent and this catch-up and R&D research to for million, have a are profitable fact would third decline addition operational quarter development, effect, of in as of efficiencies XXXX expense cash efforts X% R&D in continue highly capitalization. expense we quarter year-over-year. slight a software delighted invest benefited our Adjusted sequentially to recruitment operating strong our from model, in flow with of this for in We grown successful

flow year-to-date, same the cash increased XX% However period has year. versus last

We position We and expenditures, principal to including cash continue in to of and obligations, million due $XX.X payments repurchase lease competitive used invest under Cloud we our confident we generate financial platform. into we strong leading shares. Qualys. QX, In to operations on spent back our million $X.X our XXX,XXX from capital model capital the remain

our This million As in an minimize repurchase additional repurchase to our share directors such, open program of has million dilution will resulting to authorized shareholders. market of current board continue $XXX capacity. $XXX.X program, two-year

than QX strong deferred a current in September of revenue year XX% balance Current as billings a $XXX.X ago. greater XX% million greater of year XX, million XXXX, $XX.X the have ago. We were or than

negatively billings large growth in was by deal QX impacted QX. we a close Our current expect that rate to

of of remains Our range now to our end XXXX are business healthy million. $XXX.X revenue the we and million in top $XXX.X guidance, outlook full-year maintaining a

quarterly the As consistently billings our and we business. focused do communicated, are have we of on manage growth not to long-term

nature We raising the for to year Platform I are feel your unique million applications our given of see expenditures security of be Cloud And a new non-GAAP fourth We we in any $X.XX IT, QSC. quarter, as of Philippe and of the range would XXXX well fiscal to very integrated groundbreaking the range be that, compliance as $X.X $X.XX. $X.X also guidance million. you which will our happy answer at and questions. EPS capital well-positioned to With expect to to

the Our or first question of comment comes from line Daniel Ives from Wedbush.

open. is Your line

Thank you.

like So, organic over in regards of you guys from position you How in perspective? strength of things is to my year look product from terms into versus M&A you the about in are thinking question going an perspective are end. to obviously a year next

So, this is Philippe.

the on same So, we continue strategy.

additional easily which term is and engineering will container we our technology, recent of the or allows of essentially you faster could that will If our have markets. accelerate as And is well complete move the acquisition in strategy technology – our M&A much first really one which two recall, hot which either are been into guiding previous us security. integrate developments easily much, now identifying have accelerate that very – enough, to more us exactly seen, you Layered been we current market the has this new so we Cloud into or what has as we as wanted the Platform is as all, that acquisition of to Insight, what entrance

XXXX, it there because significant being believe I too quite we see been, much the very today. So inflation far said, absolutely question, to this as mentioning an we money your been by space, has much fundamentally, We will We've earlier, how opportunities money same. that was prudent being into we answer our poured be in VCs do the we pay see in believe.

think a so I see phase, entering is opportunities. the of consolidation into industry lot we a

to which second, the allow easily. cash as integrate mean, So, will have a we platform having we of the us solutions pretty more have I advantage well. And

to But, is is for a work we're we of doing front in I good This terms a very see a say acquisitions. (XX:XX). used XXXX think singular good I few So, deliberate. in prudent. again, outlook very position. additional we're And

you're from then, phenomenal. when R&D, – mean, coming that, especially you guidance out over relative I just I would let the just How the Melissa. you is you're not and Maybe especially look, do spending. kind on opportunities some pedal the if the could big competitors, pretty balance that talk hear expense you there competitors spending just money And marketing me giving with mean they're XXXX, how your sales Okay. and just way just controls and think to about of I about able for anecdotally – to significantly? putting year. of especially that metal know to

Thanks, Yes. Dan.

all, So feel putting R&D this in behind actually by industry-leading capitalization. obviously quarter we software those of was our mentioned, as proud the depressed or we're of are first clarify this significant I maybe of both in margins but repeat, sort To areas. efforts like catch-up artificially we

So and a sequentially didn't invest quarter, to obviously if as just have perspective this we in catch-up grown. and continue it comps impacted said, is R&D we actually marketing XXX. would ASC by I from Sales have this

because well. we continue to for QX So we as our a there. quarter in user big to have invest sales terms continue is to continue and of us anticipate conference, spend and would annual we in that marketing we XXXX

stupid think very of it's I'll moderate understand, something. probably here is day, important to One and the which end add thing the I fundamentally. Yes, (XX:XX) the at

long beginning very and have If cloud can grow the if the we since and we forever structured sell understood live solutions. company, we way if you you can look have way can additional customers certainly at as that you the you based -- profitably you your sell more in them software totally and a forever, if them enterprise you than services, can renewing, are

So – the that that's core the core reason. has been

expanded having have capability, of through our very I again the customers we Now, earlier. just services that to free the continue thanks low acquisition platform, to cost mentioned

can us essentially distribute then it a these already planet. across services. use services free from doesn't to much that to cost the now So, customers additional is there, free we service we through course, in and platform got the of these And upsell

all a So the services us to combination the maintain of model. such essentially of It's sales free help and the really model. architecture profitable continue about

Awesome.

Okay, congrats.

great a quarter. Just Thanks.

Thank you.

Dan. Thanks,

you. Thank

question line Henderson from Alex comes of or the Needham. next from comment Our

open. Your line is

Thanks. that's right us for that I bit to sale was take of quarter, XQ? is fourth the hoping to nut. pretty any X% think XQ size -- like on nut number on it. you $XXX,XXX grow $XXX,XXX could I and If the sense or of way the is little at the terms give assume And what not much there's R&D you're attached were of on looks it it in in, I a the if cost? a words, that? $XXX,XXX revenues the of bringing the of in other acquisition, catch-up, be in you'd that where about So sequentially, that to versus good X% R&D wasn't to

Yes.

question take So, last first. let the me

$XXX,XXX. So on a about non-GAAP basis, it's

forward. add color numbers, with Layered about the strategic when because acquisition can amount So solution. the some the as so give really that forefront at we Insight, you I'll was bit then to combined modeling. little like want the – of might our around obviously a this us I'll so the that and then catch-up With nature existing wouldn't feel probably mentioned, do I quarters, financials for to security is container a puts just Philippe continue that going talk regards three And for first the you

XXXX. another an $X In expenses through baked employment relative not paid tied is our be another terms to -- it's our so material overall The pay $XX into perspective, there's employees price structure. transaction going expense really expense million. $X is million for QX key of The to tied transaction of to from an details, to earn-out guidance. And million

the like already I very brilliant the will has kind have or as numbers point. small, GE, specific and a their to and brilliant. fact know scalability, would to us, having the And architecture a their others security to for you small I they with this that team what release, other have containers. what for in attracted have, a the albeit they Yes. a a they And and that you prospect. prefer of containers of right say from have know may one are really of They press said drift, always customers that have what goes combine doing, few GE built quote architecture you plus but of now customers Melissa an be a similar impressive, Instead seen containers and that's essentially and on is they're add are into the we they built and gives quite that container that people, that the customers, superior – would very quarters three an come ephemeral architecture that of of Qualys and container if agent unique assessment to managing containers are and Qualys sort the we fact, technology to good significant enforcement which a absolutely

And so runtime. so that and real-time. is application to about you start All forth really speak and now, can protection

solution two taking world our now containers powerful storm. very, strategic I'm it's the is And a solution. very are that This have know – we this we by acquisition So a very combines, all really sure made.

sequentially year-over-year fourth is kind quick edged or fourth If The growth I quarters under question. us could after it that just wondering XX%. the just a in why XX% I quarter that was if could, pushing give And back last of you little granularity four quarter? might be of for rate around over bit decelerating of one

Yes.

business. half than comps very even perspective, than a from we more we remember, first QX. in we QX earlier, Alex, as second if Alex, a mentioned the tougher have have comparable And the So, actually you and healthy half in

XX% was ago in year the QX. So, in XX% number QX versus growth

rate. impacting growth that's the So, is what

you. Thank Okay.

you. Thank

question Sterling next line of from JPMorgan. Auty or from comment Our the

open. is line Your

guys. is This Thank Sterling Ader on Good actually for evening, tonight. Jackson Great. you.

Jackson. Hi,

the really revolves question space. our And around federal

that to to try that guys head deals space progress your is made clear outside with Philippe, You number going of, How initiatives the and a tracking you would have of DHS. federal the it that in internal that you're plans? say you into mentioned large relative

Oh, I think we are absolutely delighted.

we've the which the Qualys, marketplace is we ready before traits to the thought enter of knew the cloud. because patient one been marketplace know, for of not deciding the finally – market you As was we

Now it is.

are think mentioned the I fact positioned. And appreciate having of deploy. here DHS today, as Qualys, was that well scale at scale. is it of it's cost. I all course -- customers, and it's the when federal So the our we quality, and we about do And course, a externally now that What absolutely you having look of they us selecting displacement. the scale competitive market,

the said, in we have it we we're takes This a in going always federal established because Calsoft, being federal now have the with We a the premier I space. time a significant relationship – scale. significant player strong is believe to the of the And which So procurement. distributor. become -- very really market

we So the pieces VP of attracted all Marketing now which while essentially Federal. is together, Cindy for our Product putting Stanton,

new starting initiatives. are we a So lot of

to federal very, there's very fact happy, are have presence more which the with market we and So, come. we at our done in

to anticipate going is So we don't so in XXXX. significant – revenues time, but take

the year of of orders The know, beginning fiscal tendency federal more you around the in model, our or the at come the other deliver to revenue the we as have one. As end the service. take we

revenues, it So is going would in XXXX. more be – term to this of in

road we to to However, have we in very in marketplace report. that happy would anticipate more which be

Sure.

the quick to then on Okay. little CapEx bit? reason And a side. to out expected up quarter, the Anything here is call in CapEx a why Melissa, pop Understood. follow-up, fourth

guidance we Yes, didn't as until it's doesn't in of which paid we really up shows show expensed just cash get on paid, our – had CapEx million. had it a QX actually cash then. get still in for so timing shared the the $XX statement on more million QX, flow full-year CapEx that to But flow track issue. We we're then up in statement $XX

you. right. Thank All

Thank you.

the Our next or from Talpaz of comes Gur question from Stifel. comment line

open. is line Your

still Hi passive this I beta, is they're initial but about talk asset inventory the Chris Speros customers tool you've received that know for in concerning Gur. product? both and can the actually the feedback you scanning from on

So a this is response. positive huge, huge

this is game fact, absolutely In a changer.

just something this been recently. working understand you So is we've not

years In using fact, about it is CMDB, took their the XX Tivoli. scans Sachs the was saw saw Goldman This of for when full ago. we inventory But opportunity result that then which that audit time we has. the our us real not us the of – absolutely only scan, but give the agent which we the and everything technology that mastering to device

missing Now, the piece scanning. today, was the passive

weeks. is XX is essentially have users which asset, we couple of known today, So go part one beta of more the than which going to GA a in

the inventory have you of So put asset complete in real-time view our to essentially. you your now today, can word agent, every

with today CMDBs, scanning unknown. for two the that passive beta we're synchronize now which the You essentially entering and will give ways us the

see see and devices look just passive -- published, the then that which unknown you to log again encourage And www.qualys.com/visibility, to I connect that we at I the discovering to in will so network always anything -- that's we video at and that's fingerprint them. scanning you

that's essentially huge cars another their similar So devices that for all streets. did task planet, undertaken, have with what Google very which the mapping to essentially to fingerprinting on the we the is

mapping here that we with machine do we devices. And to these all of learning. use are course, So

which huge undertaking. has already we So effort a been have

correlate acquired year, on your on course on next and because we cetera. that et the source the will on it to almost devices we index your all report provide your be technology Qualys, that that, the and OT It's application truth platform, web we have our more on you together, of you few environment, course, year, containers, unique a of cloud analyze, servers, more want devices. be it's of next all endpoint, again your and combine when IT during of now and, we what's security. with instantly. with your to mobile, of it's Early your agent from very So launch not on on endpoint, mobile have with on-premise XMobility all it's the of And and able only

than now we data that, we'll more X close indexed year-end, have anticipate trillion. to by indexed XXX points So billion essentially elastic search have today on clusters. our We

really again, get is there. it took this to heavy us and, XX lifting So years

excited So we're our and so are customers. very

the primarily or initial the for Great. to And at add-on sale Are quarter. Multi-product thanks from point sourced is more customer impressive multiple willing in growth this of was sales? color the adopt customers being there. growth products

It's I both, initially historically. general, we and would new taking in had do on but more see we products say than that, multiple customers

once our we believe other global And And significantly of course, have file instantly. detection of additional everywhere. going the asset we part can also indication Trojan again, to And that this strategy inventory have that of realize, deliver services platform. cetera, we IT now being integrity of also as agent, power be, sure that monitoring, agent of like kind is our is et our you horse to that compromises, that's I'm with there the is absolutely Yes. a interesting almost

the solution, cloud, few can building their to and consolidate that, would make further beauty that. of the And see customers are and costly companies agent, is them another system, you I point which do. help almost solution after penetrate And of So with of very the and if We very help current ineffective. becoming stack really ability as important something very part we that that's prefer. our the can inventory. in our that nervous we We're the

the them. security so, transformation. one But And them essentially help digital good thing the that's also build for into

selling, change, to software few we're companies, see but solution the architectural We of we and enterprise an solutions. solution, IT very can doing frictionless do an business a becoming powerful into believe, new platforms, from what So a also so that essentially today delivery a Azure model see moving model cloud-based of extremely at the the also change. Amazon, same today moving time I is

into So very we are solution easily our embedding them.

the customers an understand sure where to you need not everything people. needs absolutely need What envisioning that onboard done. to people make sales while even environment what works; be essentially will to that would So essentially much is you

enough significantly cost our It's frictionless, the management sales is sales fortune, right have our we the I elephant. the has say platform, that I they essentially guys, model. the And question about delivery enhance what way, I on right the business it's you're So you et all what do these invoice don't in not they about right right physical procurement, Amazon deliver, by people you, spending self call where look a building, done, architecture, that's, think sales with a force when force. cetera. exactly work, prefer, model, they see if This fulfillment, the and sales. you new all you the No, which the the essentially increasing

effectively. they of which so and good not your put news I Amazon a going, companies, very way Qualys. is on course that goods distribute news very for good is (XX:XX) You of but IT the That's for think lot is

the Thanks for color. Great. Appreciate it.

Thank you.

JMP line next question Securities. from comes Suppiger Our from or comment Erik of the

is open. line Your

range terms Cloud exclude that little that The the XXX,XXX, ongoing volumes I had deal, that think And a the consistent quarterly that then kind of I about of question. think on with Agent, quarter. Is think bit about of could right? if deal? in added which talk a we prior a that you I we X you the unit Can is basis? units, you that is for provider think you Thanks taking million that service took said

What and more Yes, now fact to agent adapted is it's into predict. starting the see very the to here cloud. difficult you more really is our be that

In asset you very very, also it's goes agent. a fact, the you into our of wherever agent, ideal inventory the to IT but and small give beauty solutions the solution; cloud can it our that's the agent is the put global

environment that So, agents is. of our and this you into that's cloud see adoption could what it

anticipating we're So we'll of see of that those. course more

is the then So you dynamics One into growth cloud more the now the endpoint, and dynamic, have enterprise, and the you moving cloud. prefer, have more two other here. if is – in which the you

here. us you for of at have different any kind hard because stage it's to so, two this model – to give And dynamics hard you

Can Okay. what think in the depressed third of us slipped into billings a Melissa, QX. for talked about terms a And we you being of deal had then in might had quarter sense you you that give billings in QX? because

our by the called out. a we year we to fact talked would Well, what we adoption. was And remarks, multi-product Agent Cloud it about revenue I healthy XX% is it to so that's guidance business year. But that's think that have the our full well for strong meaningful, obviously we have earlier, adoption earlier as as you why back reflected I and point

billings to again now one I moving. cloud would also the Yes, earlier is what that is that really and the mentioned thing aligned on I add

deals, what we are So see new type. node, also more by that billings are now a based monthly into model the that prefer, moving hour, you by doing the these is consumption we if cloud all

Again, billing. doesn't we revenues. does that's So being our it beauty change our the XXX% based. of But the subscription it that see affect again

we're really new So to very may model hard. consumption that start of you see kind we pushing Amazon start these that looking based to as going a is to see forward know.

now per doesn't course model node that that's doesn't So change of anything and hour. all unlike these billings, cloud I providers affects companies, an that the And we comment why it revenues the that, just the are naturally because much. it us are hourly into made reason for very it affect going or the other earlier following

very to good model change do as So we're in a well. business position that

we're revenues revenues. outperform less that's and and rate billings on Right, still Philippe on to why the were lower us – as we that's growth would able for become because relevant said, focused billings why even despite managing

a providers? model, towards consumption to deal more opportunities does move providers based that those of When change Okay. size the

you of it's entire the because about if IT will, commercialization prefer. sector all It

will affect. it yes, So

here discussing again significantly cost. However you're less of

while building be Apple just the to look force essentially when here be – And sales In is, customer more little sales as you have speak, store, additional today will you and fact, we have you and today there. person an go you I give based. don't to a which an go you buy not a bit that when analogy

you think Everything which the going. orchestration. Microsoft where commissioned, person a is our way I being click, technical call entire you industry have Somebody with demonstrated what will transparent inform click. We've that click, you. we is And that's

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velocity have acceleration. you So significant

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good. you. Thank Very

Thank you.

next from Analysis. the question line of comes or comment Our Smith First Howard from

Your open. line is

solid Congratulations Yes. continued Thank on you. results.

you. Thank

actually The the numbers lead it's of kind the early ecosystem you first with of question CertView about impact becoming signs of up. to you has effort? to community people's through them with getting addition, of gen clearly sign Can the other maybe talk that do the people the attention put having out, CloudView, qualitatively products getting part and

good success a So very no, we everywhere. it's –

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change we that have so customers, account a slightly call of now we them. technical our very Now have large as in kind created we managers

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deal. You're so standardized on our let's bigger a platform, get

That's affecting you out that's sequentially rates and there Is year-over-year? that call of growth real FX color Melissa. kind or impact materially quick would for just great any

material. No, nothing

thanks. Okay

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eliminate So today this but have but never is is really which doing something we Melissa not that, past seriously we'll would soften. completely the now at least in looking at been

that's do soon. very so And which something we're to going able be to

Great. you. Thank

Thank you.

of Melissa from Franchi Our Morgan next question from comment line the or comes Stanley.

Your is line open.

up on my question. billings taking for on commentary follow the Okay. the to Thanks wanted I slowdown.

in the less impact pay and out deal QX driving magnitude can I appreciate degree maybe think to from look as those what versus quarter? So were you quarter, you as those that were slippage you the to impacts kind we of if it's go. the But then – at were what in two to that the pay billings go, relevant those growth the of slowdown? XX% what headwinds given If as maybe current we this more parse you're move going becoming impacts, about XX%

within the pricing when concessions, end of enterprise quarter, of trough fall we In do we get against just the at manage the and essentially quarter when not we the let's mention, fact, is if concession. on the you we deal say software the which don't -- that billings,

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but few a speaking you're of days maybe And so or only few not weeks a much.

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good. sounds Thank very you Okay, much.

you. Thank

from question RW next comment of Our Baird. Jonathan or Ruykhaver comes the from line

line Your is open.

you're been you've be to around around why Philippe afternoon, expressed sluggish. adoption seeing some the sound continues and yet, Philippe, endpoint Can and that year, the opportunity with the hasn't it you like agent, Melissa. about adoption last that just the opportunity confidence issues does talk stronger? over of Good

at sluggish all. not say all, First will of I

Yes.

agents fantastic endpoints. We some XXX,XXX at – the have deployments, agents XXX,XXX

agents would nine very essentially believe at know is look another this ITs inventory the beneficiary going but if to agent. you crazy. what things you on course Security, is don't defenses. we're we're don't absolutely today being good have you be makes putting also But to, that's to if being the that protect. at it's where fact secure However, IT like that global That's as try of the very I effective then our And you their have the of said, don't we not that? accelerate, what protect, are the very first course, absolutely a the of like putting beneficiary that to a That's one. asset will poor you game who cannot endpoints; industry there that that not know. of you – a you IT of in have because, inclined confident fast is big what very penetration companies, changer because secret is what again, lot as

that really I will So help penetration. continuing us that think

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our today. make that's will and And also technology, that if So in life what believe essentially I my done ubiquity agent five times more strategy. prefer, pervasive. becoming you our I've that's

don't the agents, combined with of class new global to that's pushing that a that even absolutely that again, I I've really really means scanning – it asset passive ubiquity. my count anymore what what with in times, life. we need And today, four now, really done And I'm that point the at reach now, are we IT inventory We or five what have now.

specific been recently? if have I released that products uptick contribution you're appreciate with in some of seeing higher, that maybe driving products new success bookings. may Impressive, Philippe. talk more terms especially with color, notable Can product you about to it the that

is So agent. one. the still one big number the driver the That's

ThreatPROTECT. to said, natural being this a see we well. addition It's Monitoring picking start very up, However, the File as Integrity

see that are that adoption. absolutely the I'm significant we're a these one we going to see. So convinced

inventory a a iTime its the coming, synchronization well inventory, to of with this quite make with really We (XX:XX) sense. of already course with have big lot as ServiceNow the of adoption and going behind, our is

moving. Container Insight, to the And so hot. think is game in we're crazy. with our is another Security So think changer world uniquely changing mean have already here are Layered solution containers that of the we and I addition I (XX:XX) Container Container be going today, positioned I there absolutely believe I Security. are is security

going So to hot. be this very is

of Still should Our not having of web we now is application well. deployment much have issue traction is Application containerized are it. Scanning our the one we Web doing because firewall, with the which

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very you Thank much. Great.

Thank you.

Colville from Our Arete or comment next line comes the Patrick Research. question from of

is open. line Your

there. Can just my on Hey, question. would color could a for you you more Just service a purchased give by million Thanks which taking provide any this me be are context very agents bit useful. X provider?

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Yes.

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much. so you Thank

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you. any additional turn the over back showing queue in I Thank to time. remarks. questions the I'm would this closing conference audio like to for no at management

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gentlemen, thank you and This program. today's Ladies in for participating conference. the concludes

have now may Everyone, You a day. disconnect. wonderful