Qualys (QLYS) 9 May 202020 Q1 Earnings call transcript

Good day, everyone, and welcome to Qualys First Quarter 2020 Earnings Conference Call. This call is being recorded. [Operator Instructions]

I would now like to turn the call over to Vin Rao, VP, Corporate Development and Investor Relations. Please go ahead.

to quarter welcome earnings and afternoon, Qualys XXXX first call. Good

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

today's set that I 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 get performance. assumptions our include SEC, or generally the would cause undertake to events events. statements. filings future differ on we on financial obligation release and as we today will and result in Factors update started, 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

investor the website. remarks, are release, prepared available supplemental and a reminder, financial As on historical press our presentation spreadsheet

like call Philippe. over turn that, to to With I'd the

We solutions cloud has clear secure, our interconnected not profound not designed work. remote will and working highly remote of to government industry, delivery security have that on healthy security and is new and connectivity, have to accelerate clear hope a were for and the Vin, that reinvent, are continuity earnings for again. the the open families business, organizations America as chains. Thank you, rethink that size migration if and and COVID-XX, their business to agencies that It world now your include it our and going and current QX of and become welcome, plans soon, everyone, the you This after and call. plans are all safe, and most also to their impact to supply will be streamline

of In working fact, home. other most most our workforce, ourselves. suddenly have these we from experienced Unlike companies, we

moved and not because and scalable workers, work application, enterprise secure in had we able continuously but a of to for our short computers many period we laying Fortunately, architectural also early remote patch validities years cloud-based foundational a were robust, only cloud time. the with platform, spent under very monitor

our As a engineering matter launching was, free a initiative continue and much development Protection in Endpoint a cloud-based without we result, disruption. fact, business could service the genesis Remote in This days. of for

by the now our engineering and powerful our leveraging and strong cloud our large Pune. at first, For talent customers platform community of for in base

continuous which computers, As and and close employ to – them a of companies instant of prospects security result, our up teams for patches allows the clinical easily we to have from new gain this XX% see missing free XX% XXX customers' which offering, cloud. today, nearly remote for signed visibility vulnerabilities

content impact X.X patches of a represents delivery This securely prospects. VPN and to and network, vendors' from are X.X bandwidth. endpoints, XXX,XXX deployment on directly and delivered new there cloud from agents little from the million existing on external The website ensuring is million no customers approximately

days Security Management and later Agents Platform, We prelude passive couple will service new in and a who in the and malware extend Event fact, the a to bringing detection are to to for weeks which, another the detection will capabilities, planning this the year. the as summer now of for power a EDR, add to free we plan adopt XX capabilities of our malware our market and well Cloud technology those to in be Cloud offering release

scale the in handle we more unify necessary cloud-based unique on of all recognize via we large data. messages our to and more determination our IT, us X building the a as over Kafka compliance the a needed highly per to security computing analysis importance second made such X writes day petabytes million indexing is log Qualys end moving of than scalable to and trillion significant pumping the we our have capturing volume and build on, and data new capabilities back handle than So data, clusters, hybrid of Early telemetry with years ElasticSearch environment. points that Internet a well sensors, X investment on what the the our our makes the Today, Cassandra now bus engine. the X billion as across allows platform via

times, with quarter. another result, profitability. revenue of solution This by sources, the disparate year underscored the and terms a in need now to paid good XX workforce, dispersed Agent environment subscriptions, over in quarter remote this growth and acceleration Cloud difficult is IT, compliance collect from our in security drove, is and a are or XXX% continued easily deployable from growth not prior such what in do As our cloud-based and million data with

financial assets, in and and and identified Discovery and of Inventory the IT unknown across a with ServiceNow We adoption fact, Container XXX environments, continue new customers actively gain from to with Discovery our modules the synchronized good end-of-life the We the added service. XXX known using paying companies new solid to Inventory X,XXX in have all quarter installed a We companies this order see app using of software up and leading over their Inventory, our and company CMDB. paid visibility our signed It now Asset IT this as Cloud and free multiple services Global saw existing almost solution of and Discovery growth solutions Asset quarter our well. over

more solutions, this and they existing competitor, opportunity the of also a one a Also, which newer security correlated, to effectively FIM, compliance provide acquired of our add could environment. many posture, and like Assessment, view entire be of Container single large used in a their Security a existing their to but data competitor bank, across only far Security, not consolidate cost of Cloud VMDR, the and all adopt the continuous as where many could solution had security stack, accurate to

in to strong see the customer adoption continued Management Patch Finally, mid-market.

developed quarter, as one-click playbooks and well. pleased with in or in Security remediation available strong also strong are on customers now and automatically to ability announce the the which Azure all with as Standard interest Vulnerability Security as Security providing are Management Microsoft Qualys seeing application Azure our to images we is virtual Edition. Qualys machines We're seeing recommendation, within Container containers Security month and This update. reported variabilities Azure software including and jointly we large that to configuration Center that Center, deploy are are solution customers Center a the solution visibility no Azure, customers into Microsoft to This analyzes for to create issues, also

a with a environment already single remediate that vulnerability app. management Conference entire success. was event in by to where we platform vulnerability in and integrates VMDR Security held in Asset takes and Management, patch global continuously a Inventory during XX, is providing the a power Our unveiled vulnerabilities next Detection on in and Vulnerability GA, VMDR, IT Discovery real-time April VMDR orchestration. or respond level We demonstrating single hybrid huge assessment RSA and the how detection misconfiguration assets built-in are and across QX, Response, virtual compromised the with now live to which variable from detect to

and XXX trial people which signed new a for X,XXX live after registered have than prospects. to our this VMDR over organizations were up event, customer event, More VMDR XX%

priorities shake For to concluded example, the the ElasticSearch use up Head that going space, its workflows in, and Cyber as management of of at MSSP our well Defense VMDR Orange focus given its is capabilities. inventory, partners Security as risk-based Research one on of strong vulnerability

security saw requirements customers will Vulnerability the and Armor Anywhere solution meet newly environment. now integrate provide to opportunity application, holistic Qualys part with the In fact, the of have access Armor Anywhere Threat to VTM visibility entire Management, Armor their announced across the and VMDR hybrid VMDR a as offering managed to

to inventory, threat configuration asset discovery detection Cloud Agents the assessment, embedded patch to platform and Armor with vulnerability fully Qualys deliver are and including customers. Armor and prioritization control, integrated

Gartner fully Insights subscription scale solution, saving Agents Cloud self-updating as that and Qualys light-weight deployment, recognized VMDR Scanners Customers Virtual with quarter, costs software a for and a administration was on priced deploy to branded are Choice In global addition, deploy. real-time, drastically effortless Assessment. Vulnerability a this and and as to is Peer easy

highlighted quarter a the application Ovum, during data report research in game-changing at you Our market-leading was www.qualys.com/phones/whitepapers/ovum. firm consulting can review also and the by VMDR and it

and existing In subscription. which QX seven of included XX nearly adopted QX, renewal up existing into VMDR customers in new top for our customers, XXX customers, renewed approximately customers, VMDR,

technology is laying from million the subscription In VMDR, agent, of Indication Vulnerability for security Management fact, Management, File Agents ubiquity XX come. subscription, the Policy more Cloud Monitoring, X.X were of of Compromise, and million compliance platform new paid Certificate of to our Management, for our which upcoming Compliance, IT came seven which and X Inventory Asset namely foundation million and with Patch out Integrity agent and the solutions,

our videos, which application conference, we Cloud addition, now applications, we workflow Google of Cloud this Qualys can the build GCP. a VMDR impromptu Also, easily on In quarter, announced at at Qualys GCP past availability multiple you access Agent month, to general participated GCP. of earlier Customers within the user this a in including game-changing streamlined platform, also activate number www.qualys.com/qsc/XXXXsan-francisco. our can

coming innovate foundation for we offering And many to year, of the security efforts earlier, underscore live changing. drastically videos the market, a current of next-generation properly solutions SIEM and saw the this a in the and while and of offered in end rapidly as with our and of with industry These we These the We summer. EDR the at continue on the time mentioned our verge took in EDR, mind. the VMDR, architecture plethora this early expect leadership which becoming this deliver network we ago. April the fact vendors need of with for build as is corporate position the our to by transformation our inadequate, went a as major of to and being are beta is quite which first, that

similar will and to and deliver to VMDR our providing capabilities IoT detection OT response to additional In by addition, or environments response and our efforts. capabilities cloud, to analysis Cloud our offering, scanning across we detection our efforts SaaS, current network Agent passive capabilities significant mobile, adding extension

different. be be we're a driver focused which foundation cloud-based COVID-XX more current In significant Looking to disruptions. faster increasing Companies fortunate and revenues the model, is going of after reducing going environment, a stable believe short-term are profitable highly we forward, is solutions. have we the on be to which withstand business going flexibility, can a to to costs, recurring believe uncertain a adoption of while world to

have to nature the and of greater in many business become profitability. critical model, industry, companies is our our which visibility fact have than because that to in of security mention recurring, solutions the not times, our such very a other Finally, our even mission stellar XXX% difficult

will I Melissa for over XXXX. and guidance that, financial turn Melissa? our and to discuss to results full-year With the the fiscal call second

afternoon, analysts and Thanks, we healthy. good reiterate Philippe, Philippe's comments everyone everyone. safe are on would hope and and all like and that investors call I our to the

I'd of figures note well adoption Before future are penetration like on prior foundation Agent growth non-GAAP, for strong and as unless I period, comparisons financial to industry-leading all multi-product except growth Cloud revenue, the and revenue otherwise. and which with the based our year as start, We're for that delighted lays increasing to are stated VMDR, the subscriptions profitability. rates

deals quarter QX highlights include: invoiced somewhat offset note the of anniversary in million. positively prepaid multiyear operational subscriptions, revenue XXXX for than billings of rather and amounts financial XXXX by at calculated was first current grew that QX $XX.X a Please timing XX.X% the by impacted and QX our were in large to XXXX, QX few XXXX. Our their

more average QX more Our accelerated with the in increase subscriptions months, Agents from of as single adoption Agent over in solutions the the million XX% contributed customer. by last to to XX% a increased million X XX%. XXXX. Cloud approximately of percentage of products XX% the XX-months for from continued customers new XX%. million up from or XX rose Platform enterprise bookings Qualys Cloud X%. Paid XX%, XX.X Qualys XX.X enterprise size since solutions were XXXX with quarter purchased released and from quarter, this ended total customers to a up deal to three And four annual percentage increased

as coming more metric this to the we renew includes VMDR, quarters. into VMDR investors less expect it do become customers Since for relevant over VM

for as integration going adoption adoption, renewal strong As QX, in customers, a such do a X%. new plan on we the this renewal plan VMDR our this to VMDR Because result, apps, to of who we multiple was not metrics providing is renewed relevant rates. forward, an of metric subscription. the percent up should increase into introduce but In VMDR quarter, VMDR

to superior million, QX flow. continues of our quarter $XX.X flow EPS XXXX model platform first versus XX%. and first margins was scalable was up drive cash of representing for EBITDA for million, Our $XX.X the grew margin XX%. XXXX free cash generate the And XX%. significant a quarter Adjusted XX%

of CapEx headquarters M&A the one-time build-out flow our grew payments, our related to XX%. Pune Excluding related free and cash

to the In repurchase QX, Qualys, including shares. our obligations under operations of the million for expenditures $X.X invest build-out headquarters capital for Pune as continued including, XXX,XXX from well we on operations, as to principal and into $X.X outstanding our we in generated million capital cash million expenditures of payments back capital $XX.X lease

an program, This authorized ample additional in share advantage market repurchase $XXX gives approximately has take in stock million million $XXX dislocations. share two-year capacity open us of resulting any market potential capacity. repurchase Board current to Our

Now on thoughts potential share on impact to year. business COVID-XX I want this the our from our

ourselves sustainable profitable and Philippe business other mentioned, model. company companies we strong. fortunate As to of because fundamentals a relative our have remains we strong, The consider

sheet balance we the and $XXX and debt. healthy of cash a of quarter, of marketable the no as have million with We have securities, end

the of discussed, with or minimal, more business and Our from customers. seeing to QX. of as renewal we've with dollar $XXX,XXX across our over X enterprise months, exposure number customers And trailing of XX% X% date, are expansion customers a in had geographies travel sectors solid gross bookings XX% our renewal revenues retail, To of we these of segments. XX% hospitality XX-month five-plus consistent enterprise less solutions. XXXX. And customers at existing our Qualys increased and by the all approximately had to of in is last customers our rate XX we over XX end the rates in annual came the than

nearly Additionally, subscription, into business performance. is because financial our visibility good have we XXX% our

$XXX million. XXXX Our million is to year fiscal updated guidance revenue for range $XXX

new on updated Our quarters purchases assumes other revenues small revenue similar the organizations operations medium-sized impacted fiscal defer companies that may to and that of spend. year solutions that may by next companies, and to be as in focus XXXX business guidance few need our reduce they

what and $X.XX Because highly year, investing to guidance our of we for similar XXXX competitive non-GAAP intend to the Our model, beginning the future updated to we a revenue growth. fiscal EPS at range year continue is at planned our $X.XX. position profitable maintain of drive for to level in order strong

We expect maintain QX last $XX $X.XX. million quarter. $X we strong guidance per and Impacting estimate interest million, non-GAAP will result $XX.X QX income we quarter approximately in $X.XX recent our versus by cash continue in $X.XX interest revenue And for is produce lower our to decline EPS is guidance margins to EPS our million in for non-GAAP which provided what guidance rates, the to flow. industry-leading and to XXXX is

to of shelter in occur the $X.X timing Pune second $X $X the been Pune India half to expect our spend range quarter, the under headquarters months, million been will pushed approximately in includes in now the build-out million million, which has expect planned million Because of original our For place, our expenditures for operating out of and has spend of the a of we second the capital also a that be we on $X few year. headquarters.

comments, both and value and well our as to to We stronger our well during period as XX the as we our our very underlying uncertainty provided by investing model this To believe and community we highly cloud follow-on this, Philippe's us from positioned revenue platform our of feel global continue, due will future enables for profitability. scalable model. growth helping emerge operational apps

answer With any that, your Philippe and I to are happy questions. of

first [Wedbush Your comes of Ives Instructions] Daniel line [Operator the question from Securities].

you. Thank Yes.

the to terms March? handle of you're customers, So maybe day-to-day, of versus from about to about doing could a month navigate what customers? in of sort you backdrop. And can from comment COVID-XX doing you talk, day-to-day, Maybe the April just you're on partners what Philippe, talk a

Okay.

So maybe I this let – straightforward. me is pretty yes, mean,

We some good Today, get easy many it's are that they of going assuming, us payment we are essentially companies our do, course, to relatively what extend with terms bankrupt. see balance to payment sheets asking for we customers. got very close are customers which terms, is to going course, our of because not we're of to believe that

in our by industry not we that the travel As affected much and are industries. Melissa other business mentioned,

So fortunately, there. fortunate we are

the which want unique course, need king, weather coming, cash they you also then all Customers, and spend. to Because, see shutdown. a and – economical very us to give reduce weather we we to that that also, of is opportunity. So what need

gain I a as discussing they opportunity but stack replace platform. significant centralized only allow operate consolidation them because their solutions to of these one So [ph] of less is very everything discount, is we our access Docker we with of people from cost to having adopt everything have easily visibility, Qualys, multiple they can instead everything good speak if done you self-updating, the virtual Siebel you extend not can the about solutions. or advantage in scope, need us course, it said, reduce what because solution, then put in and Systems, customers, also And of much because

So that's the general trend.

all discussion have this day they of every customers, our very are So with and almost we positive.

difference we is April, March see that between not solid. and As frankly, our Quite as business the much. far

pushed by impacted as We early slightly in We in or say, the fact – have so I again – so that significantly we somehow out, good. was very upsell that QX were essentially this – some in the time. again we had impacted, all were pushed difficult really out. new that's the discuss. kind not feel all and discussion, also some by, of would But and business

and Well, job. Great. Okay. again thanks good

Thank you.

of [JP next Sterling Your question Morgan]. line from comes the Auty

for Thanks is for guys, the on Hi, Sterling. Matt taking this question.

In terms situation impacted current hiring of has how at plans, all? hiring, the your if

glad question flocking People are are really have to that a position. because in I'm that we Well, unique very you Qualys.

So continuously opportunity they their our people worried of shining quality. the today, quantity. unique a in been don't But is deliberate hiring’s. for in go now we as have go which And We are one very always fact, of We companies. few star. lot We have for a with hiring. we because see Qualys, companies are the

interviewing conference, of fact, been a course, in continuing via have we're and lot, video we hiring. So

no there's we deliberate. are very but So hiring again freeze,

And Got applications you you. positively products you current – they're say feel impacted to for? by Qualys situation? terms be of quick preference would a Which shift which then just the one Have you seen follow-up. customer in more Thanks. in using are are going

another as well. that's that's great a question Yes, –

in for application now And detect to most, going to up at we're the the that announce the planning is So and a free call. the weeks obviously, launched a weeks, the I've is why everything set earnings to in Protection is which has a That do for that patch the us soon, the across come, response, summer. very couple record we're Endpoint – malware. our next-generation add next mentioned three the fantastic And essentially hot. which deliver which that. unique, can EDR, as during been us big companies the, to of remote Service, to few which Internet, very time very we in That's absolutely with ability is ability

you there. that's a know need – what need you to out really only very not to obviously hot you market be And have because

have of in all iOS also that the and cetera MAC Windows also obviously agents Container have our Cloud for Android Security So agents, the so of a and beauty but today, world is a agent there's new and and the Linux, we and then for forth. now the et version, we

extremely well positioned. So we're

many of incredible. So we very, because the our mentioned, and bullish put it's very fact, some are, in architecting, performance platform, these many, of of we as of years

into build one single one to bringing happen that But platform. really scale built information in company the at any didn't all has Qualys which And it day. for at today, and

EDR solutions today, many positive. have So you example, false exist, they for eliminate, problem as could the they of

And so difficult. you how remotely? positive false manage, Very do

remotely. false So you to be better positive. have minimum able to a then And you everything need

soon, the and So do agent, we side, capabilities our response introducing very all is the are processes things. which these in killing other to

– well very we're well So extremely positioned.

Yes.

we and prepared attractive that Just is multiple our positioned on in one. very into it's talked a this VMDR in integrating also we this view to environment very add comment, to Philippe's remarks, well because proposition, applications about value

And for – solutions see expect so Cloud the is, to with then talked customers we've we foundation which have which benefit increased our drives as upsells about, paid continued stickiness, adoption. proliferation of have the strong it And for and lay multiple do us laid solutions. of additional Agents, further

also Melissa, to see, what absolutely want lot Yes. competitors game of that, And really, really to, that scared mention some a because you. true I will it's course, very Thank key Melissa. of changer. yes, forgot – add – VMDR is are The to of it's our a they

it's just record result And is the app. a all bundle try to so not place. a provide we VMDR, This everything workflows as that, then the single all paint oh, bundle a And into solution. when of one can of and have No, we solutions. data of it's a to where they

detect So whether global is, want this IT figure your network, out essentially inventory, create group. what assets device, decide create connect ability that that devices the the any instantly, assets is manage to the to to you device your then

patching, now look we and on cetera. soon everything and to of far cloud, And also now to prioritization going ability have ahead competition are that vulnerabilities, of applications, you we et new at have your finish a has totally which the So go containers, the and endpoint, quarantine. is could are the remediation prioritize, premise, web engine, then, course, by then

the happening, a for Detection soon, from your beginning having that's application with do new up and offering, to cloud applications, one and that and and the all And you all the to in will endpoints all Response. response very and same the as to the the OT of mobile And remediation identifying have and as response. your then app you to detection the EDR, SaaS again, of thing that well So Vulnerability and we it Management, environment. your see single why IoT or course, identifying going capabilities environment we're call

of the built All collect done that have ability but all we've one and we platform time, telemetry the it the that. to the that took and of power It Nobody, because bring now. telemetry has that place. nobody built us but of into

guys. Great. I color all appreciate the Thanks. there

next question Your comes from the [Rosenblatt line Securities]. of Kim Yun

just Thank doing adoption, is you was cloud you. customer – quarter Phillipe you and sequentially adoption, assuming I this But is that it you was driven? VMDR of Is hope driven. are the about also Melissa, to your regards as more regards which million can Hi, your if in it well? agents, Cloud am a to talk Or Are and in cloud seeing are one well Even think, end-point a you where you based? overall mile. the In X seeing – guys purchasing exclude strength the it safe. you are the I more Agents? growth by environments Cloud Agent strength probably adoption strongest, broad the in

Yes.

good another very Now question as this well. is

is it's So the reality that, everywhere.

of could millions that agents, agents. we handle to fact, the hundreds XX and if to of not You have realize billions handle today of agents, in million

have to right have You the architecture.

So some us, it took obviously, time.

you update to them, this. You them, you deploy need need need to

work, lot there's engineering So behind scenes. of the a

which, course, on, we the progression, we're very scanning, traditional good, give with you So but of replacing slower our real-time. a early doesn't started

we So that's started. where initially

are Now we today, of branching course, out. now

the agents. and endpoints, that XXX to mentioned course, And know process capabilities. now where companies, or other the And so you no real all I free your as installed of out being X.X you need you are we then, have course, That, delivered the cloud is generating what we're into agent really of to upgrade cloud. There's another have installed, service, now therefore, in see of course architecture. greenfield, the branching to million earlier, that of

internal have to data need to platforms. you as need So pump And a view up have these agents and granular then the connectors to from inside more more to well. have you

that's all We So able that scale. at architecture, of to where and lot needed the about be a again, work. it's to it's deploy

it accident, to today, the We so back have into and to are the doing course, adding have the and the not computing continuously and need the petabytes we bring you analytics, It's collect these and that end. learning power the agents platform, we're, data. Then because need back analytics more into now. you of by nine more changes machine

So real-time. that we can really data in treat

We ElasticSearch cluster very very, you milliseconds, about very, is have time a again today response which if prefer. so on XXX real-time

no, It's So changed. this is already that simple.

Yes.

did add to in of Just acceleration a VMDR about. Cloud on yes, excited significant play we which you very saw big Yun, And out, pointed adoption, as Agent we're role it.

actually separate So customer that one That's from VMDR. million. large that is X up to

Cloud Agent proliferation in it before we unveiled, potential drive why did was in adoption, the how we excited had is of talked Agents, us big it a about to and because very role this additional gives it the free and driving Service, at play VMware about upside not formally Cloud remote adoption so internally Protection So with were and both also, the future we've for paid also as out, us. included that's that's pointed Endpoint Philippe but the seen endpoint. good the in And subscription,

and around the there VM just Okay, I environment overall have the just dynamics in market, great. market. the core VM pricing a core question

the dynamics was in Can your the the lower about release. range, talk typically. end at core market ASP your in X% just probably Just your of you market? That's saw VM press up

to out our bring Every course, say, dynamics would because going us the accelerating. with, of not is customers, adoption of top-line because, This even fast, already they some because, of available find some it's you're revenues is very they VMDR discussed allows in think VMDR. it. and dropped need VMDR of tactics of I going are see plans have even believe. we was I And the are to No, we ship, customers solution the clear be before was to the, – questionable the adoption, It profitable. absolutely we which is our competitors, their love very to

today of And VMDR, we what – with they the don't to what's purpose trying have now have.

So they far below. so are

could yes, Do So price, you what's prioritization? scanning, No, of, you you things? can on you traditional that you deploy you about don't. don't. the IT just capabilities? have the you assets all the have real quality? drop that global purpose don't. the agents Do a No, maybe have very inventory No, good these – Do but other what

kind very position So it of this strong tactic. fend off to puts very, us in a pricing

market. And so we VMDR the feel about very good

position in I to now a think gain really market go are share. we and

Great. you so Thank Okay. much.

Thank you.

next from Company]. Nick [Cowen comes of Your Yako question line the and

questions. guys. The especially my this maybe a And just for can in these Hey, environment. hoping be when Thanks the you could now we gaining offerings, has paid traction up in company then the could you all market of it discuss the show that see I in seem free likelihood; was to users good customers. number convert taking into numbers?

very Okay. a That's good question, also.

So we which a we done last in services with call the free have India, quarter, mentioned, account that, I representative, team the what we in changing. have the is think, I built as well these help Pune, offerings there They buying as on-boarding customers not and the of trials, free these at they are end and the to to there day, patterns because are as are technical sell.

easier more more it's go now that people COVID a essentially shop today, to and and – more you to try to store. buy. Like more more it's much the online after Today, and than realize word, where

with people, them very so same course, these and cost-effective good about a so way established of we is generation. can then now properly, are services we a relationship already all free here, discuss because the upsell. happening lead And to then do these we thing potential have And onboard then essentially

the things our And free job, we words, that, service, do but want not do this the more. to with customer. one entrap all, if also In the It's you you pay not services of we other need do entirely. free

more So we cross-sell. tendency have the to

a the longer a very in So little value and Qualys. a it gives but the way, experience takes customers bit of good also it

start to we complementary of way customers which with part software, for we example, And like CMDB. your ability like see our now, are that your inventory, by to the see, the with the for IT which so detect, asset example the solutions, paying today now, end-of-life additional it’s adopting synchronization global VMDR,

a because, the the very service We buy. and and this to And so install channel, platform need don't people little don't I provide we're us position. need try It is costs in available good we free to again, think, to delivery. very It's all anything. go

way, it's So powerful marketing Digital in of We've a very hired, the by of Marketing just India. machine. VP

marketing machine. more which and do more to really call going creating machine, those a we're So the and of formidable I programs

machine machine, So now the formidable building are platform well. we a a itself, formidable as and have marketing we with

of have going a have their the just, believe day. subscription they're very just And pace business, to important, it's sales a because going renew customers not ultimately right? at deploy our letting that to we're at it's as that not salespeople products to is buy sticky, force, end a to pushing the not customer in Because add on, own we is to is very model opposed – to not

So we this our but distribution effective platform has pointed stickiness it's the the it very Philippe – is believe the model, channel, because service the of also cost out, solution. as increases

Okay. one follow-up maybe you, Great. for Melissa. And

in to expect for about that deferred. prepared the relates year, talk embedded you some to do guide? the it underlying was assumptions, if deals some wondering you outlook for maybe you new the could your of full-year just As remarks macro in get mentioned your solutions I

go Yes. that. Happy Nick. Thanks to into

the talked had VMDR. good impact I based and pointed in new on out, we we that, solutions guidance was of potential the new was adoption what upsell bookings. to about And a So quarter, explained you as and

Also, so well the to the rates range degree the this potential by lower which impacted impact end. impact to on business around we're assuming the the at of that as in COVID seeing is the as of customers, is amount range especially the And QX. while end some to-date, lower really retention we're not at

like a it gives to dollars VMDR attractive cautious, appropriately very given Now of us a to the lower actually we actually end we but feel uncertainty rates, doesn't lot and renewal want be for around increase value the proposition really drive COVID-XX. us,

Thanks guys. sense. Make

Thank you.

And closing the Philippe for floor Okay. now yours. is remarks,

Okay.

for much your call very and you attending earnings thank questions. So our

application, the positioned mentioned very talent, VMDR our during challenging we are with to our to but and I be game-changing grow times, fortunate these apps, feel including platform call. while obviously cloud of So as pool top-notch well continuing our

I healthy. serve again. stronger So we Thanks you and our is and remain to global shareholders. safe employees of emerged than back the country very ever all community, hope And that soon. in business

conclude does This call. conference today's

disconnect. may You now