Qualys (QLYS) 5 Nov 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Qualys Third Quarter 2020 Investor Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Vin Rao, Vice President, Corporate Development and Investor Relations. Please go ahead, sir.

Good afternoon, and welcome to Qualys Third Quarter 2020 Earnings Call.

discuss and are: CFO. Joo to Chairman Courtot, today CEO; and Mi me our Philippe results our Joining Kim, our

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

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

release, the to With presentation website. this available As to are a in and our prepared I'd the remarks call on Philippe. like turn over that, reminder, press

earnings Thank everyone, welcome, Vinayak, our to you, QX and call.

you begin and Let we safe. families that by and me are healthy saying your hope

With customers. priority remotely, our remains the ongoing employees, workforce top and COVID-XX operate and providing our our pandemic, continues to partners support for

our allows to us business of successfully this nature the environment. that dynamic in fortunate work are We operate

of and good pleased the adapt Joo another to able quarter. set been have accomplish and quarter report out are in growth to the to and to challenges set profitability. -- results I Mi deliver we We had current revenue the results terms we last

our approximately and adopted the are misconfiguration with that that in Qualys representing from platform new compliance from global are vulnerabilities VMDR, across And have environment paid entire compromised Currently, to X VMDR Compliance; strong single already power vulnerable includes IT million continuously Cloud of security integrated Inventory; not Vulnerability to customers and growth environment Agent Endpoint time subscription Qualys Qualys over Management which the and across detect a to X,XXX only by XX% more in remediate penetration or proliferate or taken the real XXX entire solutions the visibility on next lightweight quarter. Management, hybrid Detection Management; in technology and Response; the natively growth also being nearly Agent the other of response orchestration. underlying is: building the paid This XX it's Cloud Agent, assets is Integrity Certificate the IT customers. multifunction, huge helps is for IT Agents in and year's Policy had Asset provides because We our Global with Inventory, providing but it. foundation our prior and further bundled turn Asset that Management File Patch Since further EDR, application. VMDR has with driving Multi-Vector VMDR VMDR success sets and Response; a also come. of to Global Cloud is Certificate customers level Monitoring; our upcoming our platform, which Detection it IT for now, a Cloud upsell

backend asset network a reachability general quarter, detection single app. response, vector and solution. our and telemetry and for This all context Multi-Vector the endpoint assessment, EDR discovery, of in-depth unifies This Multi-Vector our in accurate misconfiguration, different availability announced we exploits, like with solution powerful cloud-based vulnerabilities

to as goes insight out context and Qualys, and beyond leverages of to response events integration built the natively Platform, part correlate provide asset that Connector their contextualized fact, Multi-Vector of information response. hunting an of and to consolidated EDR into killing vulnerabilities, with such or allows Service of CMDB us traditional accuracy easily end-to-end respond while it of into and rapid and quickly, to response to helps automate EDR securities as the exploits, responses power, consistent their machine helps Graph consolidation learning endpoint false software source removing of solutions providing and for the dramatically as and providing up-to-date uniquely the Service intelligence, attack combination quarantining ServiceNow Multi-Vector global truth uninstalling single billions orchestrating company As comprehensive future to new our fixing processes environment. by scale a synchronization with files the stack. Cloud across encompasses the carry threat entire Multi-Vector set EDR VMDR enabling X-way Also, complete inventory across to endpoints ServiceNow, reduce its greatly Qualys The with it app the by a such cycle, or workflow makes are also in a allows positives. life number analytics the before patching easier Thus, provide unprecedented IT attacks endpoints, on real-time and Qualys new EDR threat Graph and compromised. customers reduce our Multi-Vector capabilities load time and we Program. Since hybrid now an and hybrid EDR misconfiguration preventing This comprehensive environment. providing data always reliably are their

free patches to Cloud using see Endpoint cloud-based obtain the remote of of and We Qualys good have real-time vulnerabilities. continue misconfiguration prospects, including deploy Protection all Agent service In and critical well XXX application, missing its currently and variabilities approximately instant our offering. installed adoption XXX Remote companies, to remotely a view for actively of critical this their customer Solution, as which continuous cloud-based architecture deliver computers and leverages visibility as addition, we

solid In IT quarter newer Asset Inventory growth paid this -- Discovery our terms Global paid and with we our of solution, saw Inventory Asset application.

healthcare strong to our of and over application customer to this In Patch easily as remote software bandwidth the adoption services several a in Discovery Asset all given effectively the both visibility the order multiple large competing In a in without and Management mid-market across solution Inventory environment, paid synchronize the ServiceNow continued end-of-life with identifying Management and unknown our fact, of module to added installed QX, their CMDB. IT firm financial the managed Global limited quarter our gain on Patch organization available known and well assets leading its large endpoints VPN patch ability as see gateways. customers. using selected with

we growth has Compliance. Finally, Container our application Policy adoption Security that financial also and institution a respected saw deployed robust regional VMDR for from already with

reduce VMDR well addressing front, next-generation the can Now addition services leverage the and their view combine will managed large the go-to-market Multi-Vector Cloud its Cyber MSSP with Multi-Vector EDR, this Next with just expanding product the amount Integrity our Platform, also Managed Infosys' consulting, the platform, relationship midsized Agent or increased EDR point of address customers broad extend and sensors for the to going is to of security from the into initial that of Cloud the next-generation were service multiple Powered telemetry Cloud our and security and the customers with use of to in-house of leader needs environment Cloud Qualys fully EDR of a movement breadth Multi-Vector integrating providers, and the can as on of needs the the We companies. significantly in spread of of security pleased Patch network and MSSPs, other information from Qualys endpoint. This lack their suite secure breaches beyond global Management, a Qualys given VMDR offering. functionalities. announce vast while compromise. Security Monitoring both the Agent lateral Qualys collect across Platform the to Service digital and environment small VMDR as that File to a hybrid to Infosys, resources of by

to across is visibility of its Services Cyber now deliver patch clients IT Canada have configuration app integrated via via requirement VMDR assessment, offering to as the detection Canada VMDR and Cyber Management, Qualys holistic entire Risk to Intelligence VTM, Agents offering. control, a access embedded meet and environment. to inventory, their their threat part Deloitte Threat Center fully APIs addition, provide Deloitte Vulnerability the Qualys discovery including customer. now Deloitte solution asset and Qualys prioritization with and Deloitte's are Cloud hybrid vulnerability In

expanded allowing on all to server week customers customers of perform at scanning the on-premise and we Defender available integration an Arc, cost. capability additional Management platform, vulnerability Qualys of outside servers Vulnerability Finally, to Microsoft for with including Azure multi-cloud is of This Azure announced Azure last server. no

aggressively invest to additional continue in platform We the expanding solutions. of our cloud capabilities and developing

also available in solution Additional are we provide that enthused module Linux ahead, introduce to of is: to IT That Detection Multi-Vector next defenses plan coming call Security, for we DR, in DR, containerized Asset Response which Container we Cloud Looking application Granular few SaaS capabilities that Mobile the and Global now protection Runtime DRs, for Access run offering months. the and and time which DR will about GA; as and additional EDR beta; such extension be also our Inventory; environment. Control out are

with or addition, as the and expand passive technology, our of available across and call response while or our the management XDR in capabilities finally, to now we investment platform our forthcoming has located by platform live what also sales as talent and been drive ICS; well stack be base their sales integrate open security capacity, employees massive engineering solutions, endpoint, for System, new in Data possible Similar Pune The to marketing QX platform, IoT, on-premise, of current single-pane-of-glass EPP, EDR we a update traditional our the customers entered devices; easily these end to will solutions in XXXX. -- assets QX called what and cloud endpoint cost of and initiatives because In go providing effectively These beta scanning with the now or on seamlessly for will XXXX; increased significant planning of XX all of view an Industrial design significantly building Platform efforts environment. Things platform, of extension cloud incremental Cloud opportunity and mobile we're compliance market and solution with combined it them partners, will will profitable Control a consolidate operational protection future over strong OT; us front, now which allow our is Multi-Vector we in Internet are our to that, and and there. growth. all now our and major Lake/Analytics/SIEM, DRs, made our solutions detection on XXX to that investment has development coverage

currently we be showcase We X you X,XXX I presentation conference, will upcoming more which virtual leisure XX. to could this like this the have at our attend November QSC, XX-day And invite And will at you to Conference. would registered. to to own also or event and Qualys your Security people a than new solution personally from listen

You can for agenda conference the register www.qualys.com/QSC/XXXX/virtual. the at and access

As demand when of launched mentioned the our Chief the and earlier, replays Cloud forthcoming on they the well evolution our platform will conference, presented. at EDR and the recently as the will Lake/Analytics/SIEM are day initiative available President be discuss Data extension. Platform our Officer, At solution or Thakar, Sumedh as Multi-Vector of Product of session end XDR

Container of API discuss vulnerability compliance management, on to Our the providing Zoom; web opportunity our to such will Head and our Jabil; Information we to at solution, Product and security view security of attendees forthcoming And at Cloud also Manager share to have customers our Informatica. senior application and security our listen and Operation at next-generation approach management present and solutions. updates the risk risk-based engineers Security will as Security the

while and be sales the Our our distribution growth our well margins. highly a as future investments balancing MSSPs industry-leading will Incremental of on and remain driven technical or marketing, maintaining channel, Qualys mentioned with enabling profitability. growth further focus addition earlier, to qualified Platform partnerships Cloud remains us continues individual. The grow focus in to serves as as strong -- by as with with

driving Operation. sales On continued has in growth welcome and will are front, development for for role the French important the extensive experience David to company. play business an we the back David hiring Field in and pleased Americas as EVP

years growth seek IoT we coverage and as organic complemented our IT our M&A have our part be Finally, as as across, and been assets to innovation, provide development our of accelerate comprehensive complemented into and adjacent continues cloud, more markets. of our environments. product have over platform well expand Acquisitions strategy couple endpoint, security -- the to a mobile, containers all on-premise, to across again, compliance expanding product global and OT visibility past cloud

as visibility, our the increasing potentially to Our with as adoption customer well environments solution In breadth of of base and expand fiscal us to financial them disciplined quarter our to small over year reached spend. where their to Cloud greater Cloud reduce scalability customers compliance companies With innovative the our Mi call guidance their the full XXXX. enabling overall of the and acquisitions in Platform Joo our a will and offer I Agent conclusion, stack while that, consolidate has and across ultimately and technology. level accuracy manner maturity we and drastically acquire turn continue now enable for can results explore to security, IT fourth to discuss the

Thank Philippe, good and you, afternoon.

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

and highlights duration revenues million. shorter third note current multiyear $XX.X XXXX Our of of include: and as was amount as the subscriptions invoicing. for requests grew for the XXXX billings impacted XX% operational prepaid financial by timing our well QX calculated to QX Please quarter negatively

X% a purchased a XX% this million the Cloud size QX up in over quarter million increased XX single XXXX. average XX from subscription, Agent by to for X%. million the last X up And months, VMDR ended up deal increased QX. quarter, Cloud VM Our months XX QX the renewed Paid were XX subscriptions XX% of from in for Agents in renewal customer. customers, into in and

QX, on a Our up scalable continued XX%. principal our $XX.X and and of cash grew confident EBITDA from foundation of cash expanding back was free continues expenditures flow. quarter million for revenue EPS capital capital platform was margin the shares. We for generate cash flow the Adjusted third our business XX% operations, margin representing nearly million, XXXX drive outstanding and to representing margins to XX%. obligations; superior model, generated by XX%. of significant applications. we remain XXXX QX And the quarter million, model In million $XX.X invest for of a third XX% XXX,XXX suite we into driven and XXX% repurchase including Qualys, our under $XX.X operations lease to of including: $XX.X payments recurring our in versus

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

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

full of our of now from the We range prior raising are to in range EPS non-GAAP guidance $X.XX. the be $X.XX $X.XX to to year $X.XX

EPS million, produce guidance expect QX non-GAAP for margins XXXX to cash is maintain We revenue and for flow. strong million and industry-leading continue to And our to $XX.X to is $XX.X $X.XX. $X.XX in

Pune $X for of million our headquarters. capital For $X the build-out fourth range of approximately million, which includes expect million we be quarter, the to expenditures the in to $X

by mentioned, solution, we our We our of other value I due well well the robust apps any and and that, future. Cloud as to highly we VMDR profitable and of our are our scalable as the uncertainty to underlying provided Platform the questions. optimistic period very Multi-Vector Philippe As this and answer by of operational during EDR and model. Philippe company's adoption happy about are the With launch XX remain positioned very feel excited

[Operator Instructions].

with Yun from first Our Markets. question Kim comes Loop Capital

update with to solid partnership the particular to Joo that Can group quarter, Center? recall the us a is Microsoft conference. Can jam-packed. Azure, announced especially on and -- session in last a I Security high-level the Azure on just that question attendance with regard guys year's from Congrats Mi. this you you the Philippe user to was integration seem especially last year you

well. we the we This Microsoft that is here mentioned partnership Cloud expanded private have Azure which if is into initiative that platform. cloud is here is as as is integration What platform doing remarkable have entire Azure Arc, remarks with of done my now in very well. Cloud is, prepared because to our prefer, their this move you And I

Microsoft the well. partnership is, so big customer goes very again, a And very as this Qualys well. is

So to do importantly, of fully we of providers as other with And engineering earning doing working the very are, seamlessly team the the same. respect unique. work to I integrate to our solution think and, cloud course, is the

Okay. Great. added And beyond guys then, Philippe, have obviously, your your you product -- core portfolio VM expanded today.

So see without more cloud-based core to new you're just more some and wondering when new products? add of customer today, beginning are you customers access like they product VM especially the these adding get to as more

question. is Yes. good No, this very a

what large we customer start that more what are with called our realize of have detection also that what lot is for app. say more the into In SIEM becoming see, customers of to done They our very have and and these and response platform announced, is uniquely a fusing uniquely is really all strategic. DRs that fact, wait and and clearly, we we X large we're very that

immediately all have ability time. ability and respond, that immediately detect to the real you to So the in of

SX of of ability visibility to you example, to the Office for buckets to only so And SaaS which repeat, then XDR will we there's -- we fusing do DR, but have from SaaS the to against different these -- misconfiguration which analytics will DRs will we Salesforce.com; XXX, to, fix it. done all you have. have competes the course Cloud CrowdStrike. DR, pane or now and is applications the glass solution to And your VMDR, of which the full -- just also then, not And like allow the EDR, the identify same have our allow that

cost -- that you, key with you that's automation that the so much it's the all eliminate. workflow you for all of realize And how So we security can and today.

looking needs what platform go earlier, the it XDR the is XX of been platform X then, at of partners. interesting going course, I it of very And that of And at entering part design only with companies beta address our -- that QX. And address very early customers, small company. large very the needs we which by is have the are to is as so with we beta GA also the large but now in our going and of end QX not mentioned the

Our platform is totally scalable.

of really and our with your we So strategic, more more very solutions as well as to and Qualys adopt more which, becoming from see us wants looking on question, all XDR marketplace, And customers, the large pretty then to again, answer -- course, solution are of is they the at really course, low that coming really of soon. everything. simplifies end the it

an we have spectrum. across arrows attract new have customers. to because our applications, And we offering in absolutely entire that have we So the quiver multiple of course, cuts then, now multiple

there. to And user everything if are you really sell. then, a DR we in centrally So conference, into generate or as market. And bring, for have our platform, platform now see, Asset Global very, of been register it's now new companies. the -- solutions. will Inventory our example, for put are, prefer, is becoming DR, which and self-updating. of to we is SaaS that's When the we more weeks, IT because many interesting Cloud building suddenly, us all all the this course, also marketing is It's cannot new becoming our you has very a And we and course, a you few agent, and customers in that go And additional if once we ability then managed, a grow customer, it's then the strategy can and fact, SaaS new you DR, now totally platform. for

to itself. a is Platform, Does our to a channels sense? building now solutions marketing build that worldwide. many, companies bring So essentially platform essentially the we we're more And many which make Cloud distribution

you. Yes. Joo for a quick have Mi, I question one

customers just Or On to that And by of the mainly increase? did is the that XX% the broad-based? driven contribute is X% upgrade increase, ASP quarter, ASP -- who increase ASP to in much the VMDR large then that is more customers? also that

Yes.

to concentrated VMDR pleased just with you they versus might deal renew where So spending neutral With adoption, as same more last larger And is bit offset we I spending who customers. when adoption the X% for to in due very XX%. the from customer customers increasing the with XX% Qualys been year-to-date. a multiple not impact bit And VMDR in before, increase might expected, is a little that have are broadly subscribed reasons the terms said, of into a broad-based, they on by little stated more quarter to this has it revenue less. used average see size to to be solutions, increase VM-only

So seeing overall, are this revenue-neutral impact. we broadly year, a

and we that increase bookings come next this retention expect going forward, for continued really to upsell the leaves we an growth However, foundation year. believe really drive and that witness with in

the telemetry but the said would in -- like -- collects important is the, only you about vulnerability application is VMDR, really, this solutions, what side from And the what I is that's what the this next-generation one context. thing data, that which product and to is many the Yes. that DR, absolutely us is for all Mi which all not the other understand gives of to vulnerability Joo box, to management that have and management also

have any you to be inventory, know devices there. -- network. the context, because all that's, And very of So the is already status the our XDR in if VMDR, that platform of the significant you a we cetera, data, bring which connect that is deploy you on now going for you course, et

And so significant. absolutely this is

agent X response. strategy you a at embark network are any solutions. -- Seven as later, with horse months collecting. also Significant and who see, management ElasticSearch indexing lot were passive And it's the detection why is looks a some by have at become give and now analysis. X we we IT ago, you which behind is, our So which And this which trillion scanning, of of we clusters, telemetry. to combined that significant solution the also pushes scale we when trillion. data point can were we're of vulnerability package X the months Asset the that collects the makes Global way, -- we that But you Inventory which which us than our again, idea, that's major operate, data scale indexing at other Trojan

next Our Chokshi from Capital. comes question Nehal with Northland

question. Simple

$X.X revenue. increase in a Q-o-Q had million You

it's X I the Or the VMDR over on this past X, Is is years. more largest think simply adoption? here? something going there

attributable will It's not because we VMDR long-term neutral. the It's drive strategy, next it great. bookings believe growth Yes. to VMDR been turning the year. that the broadly is This and adoption a and it's revenue growth overall year,

take had outperform, we if our you So guidance look what revenue bookings expected. of we better high-end at than in a growth, the did revenue beat came because our

not We our both on seeing the upsell momentum closing the and in bookings strong retention rate. with the VMDR, specific and well as new overall, the are that coming maintaining just as to deals

of So onetime that guess broad it point driving in stronger to some theme at what why expect was I'm would I continue? expected? there sort Can to in you you did than is nature? Or bookings come

I it's onetime wouldn't say in nature.

New deals better than what came we expected. had in

typically right, are well of up. expand when potential pipeline upsell and, look we both do their course, as coming new existing respect at to guide a we is the So what customers that as with renewals take revenue, in to and the with we customers play,

that this happened just it anticipated. new than so so linearity. had we better had bookings what We better quarter, had we And

is at line might take if this it And look said And what And year-over-year. we've be we you the -- current at might that or of indicated take of at that revenue, it our reason. indicative necessarily and a XX% so you that not the part be But growth. are billings always was in outperformed because seeing X% business was current a year-over-year. if momentum not billings, revenue, look growing we we

is for Yes also this which is doing about well. and Patch example, very driving solution. Management, specifics more The

optimistic moving Container our And DR we Cloud very mentioned, well. our coming. Security coming, DR again, I've as our about SaaS also have We is are very

X, that by that So solution. end solution. In at having companies, unique, additional look what words, not application. console they they is URI, whereby different if X again, all this we cloud. other or is have new With required, X, they ultimately other applications these that to us, And single solutions essentially single platform, down on you very -- up whether the access all X X it's cloud single a X different are

you the are integrated. of so And your at and workflows power a lot fingertips essentially have all

one So you rivers. from routes that and it's creates multiple, say can routes prefer, coming if big

comes Seyrafi Our FBN Shebly from next Securities. question with

Congrats on the results. strong

You from said that few current than X%, -- But expected. your down a Joo were billings that Mi, quarters by digits you bookings ago. double better said grew

can And think those of whether your a double grew in First mentioned duration were by you all, you in soon? bookings also rebound percentage? metrics there say I that changes digit you in Do script to multiyear. expect

Yes.

great So question.

deals. typically, So negative some impact But multiyear don't haven't bookings, to we we've guide we and shared point to is, from bookings previously. what we had can

to that it. example I'd like one give that's So

there's multiyear have you way current bookings. the in it's of a on the deferred year, reflected the no second deal, is not If current indicative the because change spending,

because invoicing that in at that we've one impact in as do that uptick contracts our to continue. and respect that's we deals And expect increases, With shorter the request, duration And reason. so to close multiyear continue we length expect to QX. seen we

QX are quarter, We of we this over kind or seeing less that time. it in of diminish and expect decrease to

there will and puts so continued And takes. be

or because you billing. Another business indicative billings not the reason upfront manage quarterly might bookings be trending or is don't of be why current the

anniversary so the initial because that, are the that of deal. renewals we at have of not done And

potentially another positive be a negative that impact. might So or

part these normalize it's of different this reason So hard why scenarios. perfectly growth is to for all the rates account to

that what COVID-related so this the forth. and And mention that essentially only billings short-term where thing year. the are And asking people payment is COVID the very terms for we do specifically some is we is

not renewal at the is be this to So repeated time.

take look bit one over a the years. for we've seen our the multiyear been of And at have all we've what deals, right, historically prepaying typically, is upfront is for Right. if you factor customers, seen XX% might

seeing COVID, Now COVID-related of the concession, X/X relief than and onetime we're because we're that. less seeing of

seeing into year. are both well margin as continue we this And don't billings impact so on cash but expect the to we as next flow now, right current

Okay. line you and puts gross the about year-to-year? And on the margin also, can which talk declined and sequentially takes

Yes.

multiple put margin D&A. the one in And different assets is, gross expanding the by our impacted So is does into that and impact factors. data timing basically, centers we're are service, which

So just at to a timing. the it line, quarter-over-quarter. by X% you if take our increased it with depreciation And do look had

new term, to we We as the have that because into data will one over headwinds is like California. currently in Vegas. it see benefit, we Las And and some expect are more the Las transition expanding or cheaper we centers the Vegas. than we cost-effective longer in Dubai do right, But

And so margin do contraction. that the with to has gross

Our question comes Alex from Henderson Needham. next with

the strategy you're to type But Obviously, you capacity, granularity? additions you you as and now do capacity of capacity your and about a I go the that of tone building a around more doing can your the some stuff. and delve about that aggressively just change market Infosys built MSSPs it. into you're in with wanted to platform out somewhat what I of hear building talk little sales out to commentary said has sell. the into with That's bit

Yes.

in all, our of change not first it's strategy. So a

that cart there's prefer, work. the horse. platform, mature enough. Our if get sales, that's we the integrated, until words And really you've the strategy, solution lot before other you is always Difficulty] In say always [Technical solution a really this no to the and we we always need got pushing of put all get

really, And would point of where a reached first the we more further of platform say will adjacent ship as today, I the our absolutely, course, So and have goal maturity today, once we to really is impressive. [Technical these scales. such. platform is into have I really completed that XDR, the we Difficulty] I of wins has engineering of masters, expansion platform solutions. web number market, be the mean but lot a mentioned There our

that It's operate. have the scale which We than are more at the managing absolutely incredible, X we petabytes. passed we --

like that need distribution thing the is we enterprise Cloud software, now today, So Platform channel. the understand the is to

a happening and more flock platform and So we see shift build that cannot to today today, huge anymore. because more we Qualys create MSSPs

early, course, return, more they Difficulty] of that becoming user and itself conference if going more today, fact, you also comes own want listen always a don't too you that Gap] have want always it's into more [Audio we distribute to Difficulty] -- that now should the all to provide tell. in to has time to we're it. view good, I solution. distribution. their be building take and we're reach advertise enough that that our platform, distribution used fact, you effectively and [Technical say time But not Also Difficulty] in that more that. take I've been, I platform out come, to is to very to that content, this, the the platform Thing is strongly which because has will [Technical register more said I of see [Technical as you degeneration, our the And good you -- cost that don't that come. Before

beefing we're so are specifically, embark So up essentially of what we doing now, discussed strategic having more our earlier. This now we question our as is expansion, so the we team now about course, focus, in we're MSSP. could your alliance answer to

is management. second The

of VP now the EMEA, have and VP General Americas. EMEA, for We for Manager

added byproduct also be look have we call, the line, executive to there the only We [Technical Difficulty] VPs sell go-to-market. at for VPs or significant, what

also we're our So capability. expanding marketing

spend of marketing. a of spending more if highly because we dollars amount have need of stable go to So of the our financial structure, prefer which platform, you price, XX% to in also

that's So are. we where

that's call So I it. what

to much easier and the much an marketing And building is platform we're the marketing. platform. build to Now it course, build it's engineering than of quicker

Or you follow-up. moving when I that move is more predominantly seeing would bit applications the as around they a infrastructure when I the talk to you cloud transformation? application you cloud protecting start digital coming you on from Cloud traditional workloads? it If more Platform about DevOps-driven, into or what are modern Could Are applications Kubernetes-driven, or describe seeing could little driven? in

Insight morning, Yes, them acquisition thought that longer fully have made. yes. we the It Layered into we you know This integrate bit to what this if fact than took I a announced don't containers. the that finally us recall now --

really, is that's, look allows containerization. distribute at today, what really so to you And application when microservices you containerization

are, entire do. at which we DevOps we the change made scale ourselves, was at platform, on huge which So absolutely our a

So we're the really one today, today. are DevOps of operating which

both is yes so -- you ways. If

you at course, take now take yes, because differentiate existing do of So in the you Container ones, absolutely that care we have you from now APIs the containerization when of of more can all fact, look to other solution every that is Security the to have protection. application, we and, more here us web and application the of today, make which

philosophy, prefer. analyze if detection. is then you same the of We found, DR, again, notion that but So

So that's today got. we've

protection deal. another costly, if complex detecting. very cannot that's purpose is the protect your very what That's of So or you really or if

of is can cost you I if diagnostics the detection that and protection but the and -- course, and always really and cure. this to that So analogy between the give automate allow sale response point --

a more traditional also are you going the seeing viewpoint to mean penetration I So cloud? are as cloud Is you coming guy the but in system first clearly, exact is as the moving customers cloud answer are starting not cloud customers technologies, your -- platform that from eventually to sure talk the that you in percentage for and of your he's comes, you're the your to that the modern a only? Kubernetes-centric well coming to you born point more seeing I companies about that understood adoption? Can move customers. of cloud meaningful your applications, to to I'm legacy answer.

meaningful [Audio a it's disruptive. become Difficulty] to not No, percentage. Gap] [Technical

Fodderwala Hamza Our from next question with Stanley. Morgan comes

you. maybe Philippe, first for question

go-to-market as like brought to multiple on to work products tweaks to as the sales platform more some edges sales the a has -- this do be now broader David of selling seems restructuring is try maybe there of Or coming on platform really organization any the the the around There's to are new been to VMDR. you traction obviously I'm sort a perspective, wondering, that you've from done expect expand Americas. you But EVP story? So it of together. platform? broader a align good with selling or

no, So good not just a it's this this sales much is the question. okay, is -- It's not force. very -- so

So selling bottom-up force, now the essentially so force can in have the speak sales sales the is strengthening essentially we with what been past. of we're that we doing management more, essentially

when now have change We the with we the no that really course, that, we're because a to got C-level the example fry. more really past, management. of more. in force have transformation, in significantly for just The quite interested they've a sales is vulnerability much than, C-level remains, is not occupies technical their per that In speak position more we're in to bigger management. much vulnerability fish digital frankly, but to offer in view, Because,

have now we So all together. coming these pieces

then of matter the beefed charge experts, and model in solution the course, of our product having So we've mentioned And we going which few call in this, broader briefly who from course, that are and, engineering as remarks, partners have force. We our we of my to force. now management hunter more. people that's that around we're doing people subject also not line. with What there are now that changed. still we EDR, And add the have a who of sales in essentially what we're of our prepared to expanding I expanded a have in specialized our support up that specialized standpoint, got while much farmers, is are sales

now we in-charge attracted today So -- have we is of the who line. somebody VMDR product

is product is line, somebody the somebody And product a more in-charge Policy going IT Assets product add of we're the Compliance like who line, of that. now in-charge of attracted to have who in-charge few the EDR Global who is Inventory We line. is somebody

managers So right that but is, they an have the from ensure the the we as fact, It's what are, course, to responsibility engineering their as not we matter the that is them -- well experts. standpoint, in of thing And mission under the also they product live. just subject of go-to-market. do

more structure we change the doing the in that important that's here are company. So

show, now as going very very, very this a I mentioned, and we have essentially again, soon. today very And As to disruptive again platform. believe, is -- broad we

commentary Got Joo it. maybe bookings. I billings Joo Mi, follow-up on I the may. for And appreciate versus Mi, if a then so just

us far. you had. And that's pipeline some of that So think VMDR like, improved and and standpoint, as from be guys about growth seems made about sales think But QX some generate you're you it from how newer growth just a to supposed right. how a going color could, Because likely mentioned QX in the any in into healthy year. going maybe so to a revenue perspective, But going continue be of pace we the of that obviously, out should to you that pretty pace booking perspective of from the revenue from forward, if are sequentially, seeing qualitative give that forward? were strong to products a to pushed next have do the you the bookings investments

XX% to Our QX for.. like is XX%

on Joo can I Mi, my breaking I think you're end. up hear now.

Okay.

revenue said, product So hard of be. new when impact on I the and will in adoption, terms tell, to it's

So think be us cautious. bit we little prudent guide, for typically, it's when that we to a

the guidance, dig don't the adoption that into revenue new expected to we revenue we So have. product contribution and the to

from will will for revenue where we QX now, similar it VMDR, neutral. for it that we're mostly be be -- example, So assume as

this product product to seeing existing the that first and is However, year, well that think business really we're launches year next as new revenue that the QX from into we continued opportunities. we year with half to new that going year acceleration do growth well as expect the in is adoptions a next and new all of in bookings come as as addition in some contribution meaningful products the customers from as

Brian comes Essex Goldman from Sachs. question next of Our

the on in that give the Philippe, if with you And your be way particularly add more base? little of may seeing installed could how might go and large you bit that you're quantify can if in your that that I customers associated as Any percentage around anticipate a enterprise you the to versus more may channel? channel, as color us platform that you we through customer traction of smaller market. maybe wonder revenue customers MSSP kind adoption

No, Yes. good that's question. a broad and so

also we don't directly So and the a about we I that sell channels, have about so so we -- we have hybrid model, remember me whereby we sell-through the but -- which let exactly XX... -- -- essentially, essentially mix, essentially it's mentioned

XX-XX.

direct XX% XX-XX. and channel. XX%

of amount the XX%. is disclosed MSSPs, what within, Now

However, more with with in traditional recent the [Audio see some what to at etcetera. that Deloitte, the point Difficulty] could, probably so fairly Gap] we you we I -- course can and channels tell that the time, [Technical of

knocking MSSPs more have we our on So doors.

bottom will you come. so the And more line. to That's announcements see

Great. That's very a helpful. just And maybe, Joo follow-up. Mi,

for in last playing spending guess, that the triangulating operating range, upside need guidance, spending a looking XQ? Is there environment mostly last as to kind guidance similar quarter, pretty was that similar like But quarter, looks Just if steep it to into marketing? some at for of the is that board? some lower-than-expected ramp-up that of to seemed that, OpEx. get margins understand guide. with to sales I model, it might though I And to across so, that where flexibility come maybe Or baked for return-to-normal and of might from? Is we it element or

Yes.

side. marketing and sales the on mostly it's QX, For

to for margin reimbursement year, of had that And expect And is overall, one-off that expect EBITDA the the with we incur as it's margin we was was that would but some there out in out and mid-XXs. QX that margin, other for thought as the Pune QX. QX, even though QX it So would to investment pushed Pune in above the ending virtual, spend we QX, end of But pushed in implied expansion moving unfortunately We that in employees QSC, be or mid-XXs. to QX opportunities QX, have are that In we had thought expenses that's be QX. the in the additional onetime happen to occurring EBITDA the going into related well year we pushed the had be to some expenses office out. QX. we to some COVID-related in to

some we so French. leaders sales, new in scalable including the always said, given our upside anticipate David margin, hire And to an with But that we there's did model. business

invest onboard So sales drive to we effectively so and write and to expect continue if to can them I we force. employees that the

question from JPMorgan. Auty Sterling with comes next Our

on Matt Sterling. is This for

on for relationships expanding on could really if focused give about additional you're You you any with more the what that color Wondering expanding talked geographies MSSPs. relationship.

So that's that's… -- yes, no,

I -- hear I don't you. Philippe, can't Hey,

Okay.

-- this is So better now? that

Yes. Yes, hear now can you. I

Okay.

global have is of MSSPs, kind you more saying the So that regional the ones ones. what and I was two

we a So we totally whether all -- company. global us of coming are and really they them are our or to regional global, see

example, And already, lot So course, we as have lot worldwide. for telcos, we are which of customers a have a of of well. our MSSPs local

portion of have MSSPs. a we significant So

they it generating much Now the not in dollars that about were past all VMDR. because just was

Qualys. a -- is We MSSP for very IBM have probably customer good

if on, because and to today, interested on their on capital more can has with now reduce revenues, cannot been the that because very fact now but the it's And that business to have. cost difficult because send therefore, and but -- human gain these more to cost not profitable and very operate So and platform generate the the these make providing the this as that sticky. and, they in are not profitable only of they better need result then Because problem are of their MSSPs is we day. service the that, you remotely you more And the even they people. is a end offer more at get of respond, capabilities, of a Qualys all a business becoming -- can we the other things response have, consolidation, a which of which

to created at since to gives barrier except at the we in we plan. the together which that And significant ourselves. which the just the with to the So need that beginning, not them a then the companies entry Difficulty] put was also for [Technical us we scale have pieces a put park, walk knew

very question last That's And then from helpful. side. one Great. our

revenue that some So we the in was committed Do dynamics you're XXXX? guidance really that with growth? bookings laid XXXX, indicate you've targets you could of talked growth. obviously, I accelerate the here billings should between but not and wondering, trends that think the about asking on would you that how revenue seeing regards about to for think the

cross-sell lays be increased a retention providing of some bookings the next positive opens year seeing full the from and as momentum. Yes. we when the foundation With very launches up the terms we're the think it new guidance investment expect lines, that of an course, we next because opportunity product budget that in on year. believe We're given upsell a what optimistic year including well as once XXXX. and do more We new really color post-COVID. product give of as for impact we We VMDR quarter will said, and, do for

to like the And Courtot I'm showing this questions turn at remarks. now further further to for time. over I any not back Philippe any call would

Okay.

our suite very et this us a Multi-Vector cetera, position including cetera, our with much with that environment the unfortunately, very and believe, Cloud applications, is very call integrated. as our for We're the do pleased looking our your positioned, in are quarter. compliance and you to we And are our we XDR despite in, progress et of And at are positive of discussed, forthcoming for challenging you also feel very again. next VMDR, we thank we year fully So all that earnings IT way, fortunate questions. essentially, Platform and as we And and just attending security app EDR, we we well. extremely well discussed broad very all --

have not And want. content, this attend platform in cat you but you really really select good effective. recording is, need encourage the can really training, different that so to And for us even will again I big for would many, the link which of et to that user attend allow they you, to very you we're see, the I when everybody. as also a the you the can have many marketing at you because is cetera. customers, run we that that our course, we So only cetera, skinned really look what conference. creating, don't et guarantee to sessions you of very advantage the as beginning It's that again, distribute trials,

-- house in on door, open automatic we And a so So lock door that's the lock my I package, then here. happening everybody what way see with That's now is what today, the buy wins I put my -- somebody with can finger. And that's with things. broad again a market my delivers the when in the today response. you

So doing that's essentially security. what for Qualys is

much, thank and that, with the you continue forward again, to So looking discussion. very

Okay. Thank you.

you for Ladies and Thank this gentlemen, you. participating. Thank conference call. today's concludes

disconnect. now may You