Qualys (QLYS) 6 May 212021 Q1 Earnings call transcript

Thank you for standing by, and welcome to Qualys' First Quarter 2021 Investor Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference maybe recorded. [Operator Instructions] I would now like to hand the call over to your host, VP of Investor Relations and Corporate Development, Blair King.

begin. may You

Good XXXX Latif. welcome Qualys' to Thank call. afternoon quarter earnings first you, and

Joining discuss CFO. today and me to Joo our Sumedh Mi CEO, Thakar, Kim, our our results are

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

present a GAAP investor non-GAAP earnings available press included During Investor are this non-GAAP release. GAAP both of the is prepared website. section remarks and our release, A Relations the call, on as financial And reconciliation in press measures today's presentation to of reminder, will and we measures.

the So Sumedh. with call to that, I'd like turn to over

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

success the as on continued to pleased working team, our interim We of been progress and our the another well of our Qualys both growth I the taking role as Board good quarter February, to reflecting strategic on report agendas. and with are of healthy customers, Company. CEO ensure profitability revenue closely have financial in Since

excited our Qualys the focused squarely like continued grew enhancing the year-over-year for take making XX% I CEO, We of of subscriptions, the with to journey. cybersecurity next on in am eligible to the in renewal Company quarter go-to-market would Qualys next I'm motion. another for appointed opportunity the have of VMDR. we space on newly Cloud as and to the now I experienced force confident leadership significant a I to as and will Philippe our in and phase its am thank purchasing his which to very As platform level QX for well VMDR growth. paid growth Agent innovation million, strong XX customers XX% of lead

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of QX multiple and solution Asset a Management As Inventory single purchased solution VMDR, standardize company breed security agents. Module, XXX in their our Patch Fortune point a together paid to endpoint on EDR over example, best an agent

with solutions, In Microsoft the scanning for terms in Container Azure solid growth saw our Security container solution paid other quarter registries. newer by led we our of

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well strong solutions like with Management in providers GCP their cloud Vulnerability Qualys default HCL we build VMDR displacing MSSP addition, building strategic In is partnerships security continue like as solutions where competing enhancing partners Qualys with Azure go-to-market and as with to our offering. towards now Microsoft

experience with been business. last execution. leadership to business the year, organization, value worldwide momentum. delivering and business. sales of and I'm as was serving growth drive as platforms this well than marketing joining spending and Today, effect sales value that strategy CRO amplified plan. for top on as and as cybersecurity Another Qualys' us upcoming make growth on of XX our time sustainable key incremental as focus our team mentioned, Officer so of of Allan the I've as and as to years product my for EDR companies, we're we're teams investments, driving and with our XDR next Armed substantive investment that To well-positioned has of executive new creation revenue that in return investments Multi-Vector leading focus following customers the as priorities well performance of CRO in maximize the and of go-to-market the He our majority the my planning pleased starting technology outcomes, initiatives our go-to-market and including the all be Peters our management believe of aspects building in a the with an release VMDR with to candidate global appropriate one Pairing continuing our the of We my SaaS on of will responsible week. innovation successful to leading scaling is for previously more launch and be solution, Trustwave. execute industry look long-term confidence growth previously Revenue to customer industry and shareholders. area announce sales profitable Allan underpin to in go-to-market new Chief will partner sales our and

assume time, solutions, including growth enablement Marketing and of Vice competitive XDR We management the as In balanced profitability. role soon the call, Klaus on Executive solution. of to Moser be Manager and to enhancing with the the Company to move a Operations, stated functions At SME Field Operations and the Sales for also to Americas and its continues approach our our SMB sales sustained I of addition our newer with advantage recently prior Digital we're also other well appointed beyond vulnerability future President, and General Qualys in businesses. increase released our conclusion, same

Our remains and on drive to strategic sales Paired value initiative, a disruptive global focused with leading technologies. focused well with growing I'll the and over quarter positioned year call further powerfully Mi and the believe and XXXX. leadership long-term we strong we're guidance direction our second go-to-market and financial fiscal customers full both that, quarter shareholders. turn to Joo discuss for With first for to results our

afternoon. good and Sumedh, Thanks,

large In to prepaid the Revenues XXXX period, as expect stated billings quarter and have all on to that, are of QX positive Before unless amount figures grew highlights. invoicing. a operational impact year calculated note the timing closed of subscriptions another to strong for on report quarter QX, shorter current late and Please I calculated XX% multiyear as after first our based pleased points. and by non-GAAP few billings otherwise. that are percentage was to note and end start, the a I'd of except impacted we a negatively duration the financial quarter this renewal following revenue, rates by for in current to million. reflected $XX.X the We're like growth to well comparisons reverse the XXXX prior financial

total with vulnerability twelve of increased for the million QX last to XXXX, cloud up our Our management months. average in size to quarter over the renewal last months XX% million non-strategic purchased the XX deal from subscriptions XX% alliance of twelve the months, QX. VMDR, similar and up over solution ended bookings for X% in XX paid and contributed in VMDR approximately increased agent customers XX XX%

significant and a model for the increased $XX.X quarter to Non-GAAP and platform continues XX%. superior million, XXXX and we last of $X.X was the our XX% drive our XXX,XXX operations first operations; Qualys an XXXX recurring up was for Adjusted million first $XX.X margins foundation cash flow million, cash to we generated outstanding margin first confident XXXX free quarter year, million representing by the generate We and suite of capital from flow. $X.XX of EPS scalable of repurchase $XX.X of continued remain for a to to our of invest XX% nearly cash QX, the XX% Our EBITDA shares. our expanding driven quarter versus $X.XX, into business applications. margin. including, XXX% expenditures revenues on from In in back representing for model,

We year are raising revenues be and delighted both non-GAAP full for XXXX guidance to our EPS.

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

revenue to to non-GAAP the $X.XX. to million, XX%. growth our the of now And $X.XX from of We in for second range to raising XX% are rate the the full to a expect to of prior of range represents be which be $X.XX range guidance EPS million quarter, $XX.X year $XX.X in we $X.XX

that, the I to expect range expenditures We non-GAAP of capital the QX confident expected $X.XX. answer in to million to in $X.XX $X happy of financial our competitive range are and EPS model platform. position leading to are With your cloud million. to due be strong remain of We be questions. and any $X in to our Sumedh

the [Operator Matt question Instructions] from RBC of of first Hedberg comes Our line Markets. Capital

Your open. is line

the in renewal Is Is that it'd additional late you prepaid well? into few renewal? provide? quarter into point that a account there timing Dan any color for does It's You that the Or Matt Bergstrom said second percentage could late here. just some and duration the of take be benefit Hedberg. as

combination. It's in

large impact a a as a a to renewal meaningful the points it and percentage we negative usually of call have it quarter, we enough when was So in by whole. have late couple out,

the to We this how current been is billings past. with in consistent and expect reverse, that are have

Now at we current see if manage quarterly our you'll billings, look don't you take to some a because fluctuation. billings,

bookings. higher QX, anticipate see a billings current less relative we more what is negative So in impact QX the QX to to reverse or so we'll in

helpful. I That's XXX to you've maybe got in India? you the there. employees then And with know Great. here. It's could over been headlines just COVID talk

that Or here already. is been action guess, I incremental there the is remotely working any recently? happen needed I think everyone's to that's case?

Yes.

very all of the I India, last presence and it. a have large we think quite well in We that's doing address remotely for been important have aspect do our plus. to year employees over working a

have needed. remote at safe point, seeing impact go from meaningful are our in used who output But their any are out our severely. So with of employees providing what Qualys to working we we to in But monitoring already those are working been obviously, environment operation. And stay at and is our impacted this don't see terms we to hearts very the assistance where that that homes. our employees, situation,

of from Our Yun next question Loop Capital Markets. comes Kim

is open. Your line

solid the a to on congrats start Mi, Joo and year. Sumedh

on Just very want specific question be here. one to

year start anniversarize And Cloud upon renewal, consistent and the XX% since rate. expecting? time? renewal renewal is, who you to with in regard we we to start just starting start XX% to overall, the how adoption VMDR this what stabilizing renew as cycle or the off, rate second seems targeting perhaps your should downtick overall at - this to upgrade half of can last the about rate and number strategy? Is quarter rate customers are that platform be First, the to in and think adoption VMDR that Agent didn't the And

adopt, really need one. I was around a make the obviously, think of to VMDR, VMDR, last the way started. different year, operational released think, capabilities Yes. them need that that the push initial QX environment. is to combination I I can and when we see And that that within take it's they many that we customers

to because we to able being time benefit working terms to them our them with renewal pushy respond to vulnerabilities really the the eligible down that And don't in customers. coming or are tracking go are them amount to are the And to - were of VMDR expect that of of number for that are reduction it's were that not way the that VMDR attacks the I customers that converted with taking is they we're We're up. numbers ensure that to this the in so consume to in quarter.

get see - rest available incremental additional coming through year, in customers see, QX, we'll they budget So the allocation, resources as VMDR. ready, of you we have up will additional will conversions maybe the incremental of their they see as to continue

So going we'll that keep hope is - our see see number up. to

environments deployments hyperscaler Okay. Great. customers? driven second of you on And of from on like hyperscale from sense is AWS primarily seeing higher environments securing that existing mix much customers those and coming business channels? a your Or secured how traditional by versus is, sales me driven by business give by question Azure? are your new can deployments is or you just qualitative And your on environments - any then us

Yes.

today that hybrid of it's they we break right? of it customers a lot large A way. necessarily But combination, customers don't I infrastructure. our today, lot large down - have do think a a our

Or which have within running overall - while that we're environment certain be devices strong, we have units devices certain license. could large that they're also business they So of well. in remote in the endpoints, multi-cloud deployment other that their or are as with of their also other they hyperscale very environment numbers we may part are environment also where seeing types

look are ability high-quality environment, as But that, cloud cloud reports, metrics, to getting that perspective, clearly then vulnerabilities the So to we're migrating at ensure their these when just necessarily fix were their to environment, in really who want auditor's are they the not customers from that way. Qualys kind you in they tracking it from same getting on-prem of the they environment.

architecture being we integration, really them a lot have multiple So have architecture a to these of to of them environments. we cloud-based And to that that easy work of kind and our help have migration. capabilities built-in itself in very already with lends of part Qualys be

with have to in capability well the that by scanning the GCP back as provided Qualys well Azure that that is, we embedded integrated who those directly sort Customers bringing as Azure also Azure. may through and And we in workloads of Azure leveraging be this by have. environments are end, supplied is And so Qualys.

in In So well there's we end that the Qualys back cetera. these scanning are native leveraging also cloud that way embedded assessment, additional security cloud we are solutions. capabilities into as native around to configuration et as provide the environments cases,

question comes Our Auty JPMorgan. of from next Sterling

Your open. line is

you Sterling. half guidance. development. could are the in product a second what implying I of bit for hoping give the especially slowdown color was it's more on considering year, like Maya just It on year on in that seems some the you is of full the bit a This a of just back new

just outlook. So considering in for hoping what that you're

Yes.

So of revenue year. the we make we take return look the look increase the as is near-term when from well trajectory, at in some potential investments to bookings what as we a plan at that different in additional

So the to the full because QX, are momentum now. take And the we million from the revenue the the will see growth. is we midpoint at had include look didn't $X million, at a the new. it $XXX place, we if potential on of around newer that guidance. right see take meaningful year-over-year we business consideration of increase a we our upsells that of that it at example, products currently - uptick to doesn't adoption significant outperform see guided it's because year, kind we last million a you by annual look And of at quarter for primarily such the additional initiatives in In we now. XX% taking what relative VMDR raising $XXX CRO, said, and guidance, did into hiring don't have is that we relatively what With land of EDR or that potential still as, to

So there that the is in included haven't definitely guidance. we upside

comes Fishbein Truist. next Joel of from Our question

Your line is open.

a couple more the can go-to-market to to specifics little on months detail bit the of Sumedh, just that be give plan reinvigorate you us growth? next some changes over focused you the on of around

Yes.

so - one expand aspect are is of all focus capabilities platform EDR. the that TAM the VMDR, really - think creating we the our of about these additional I on ensuring to with

do capabilities ensuring have And we to focusing can see agents, in they ready perspective, need as on that these we closely EDR, their customers to that for different consolidate another and then another in initially, given purchase one I these coming that in that vulnerability the that's examples can So single upsell we're another that to of that to in value I had existing we're with can ensure multiple were we some to one there asset have leverage and Qualys too. so a upsell customers that that we're environment. the providing them rest We've with are through work seeing here on really they of a to products gave I find the the year capabilities customer, "Well, patching, board, that getting that get inventory? that, other they from of management, agent solutions customers are why saying, four already for for a now opportunities for - all of is that the work board obviously model our ensure success solution." bringing salespeople technical where on, what at Alan we're the SaaS service,

of a And solutions paid could be for sometimes, those couple years.

where to opportunity going additional come one bringing it We're with really takes can on on maybe focus on business, So to Alan, up. on focus going marketing. we to focus enablement. But we're for digital sales having that time

we're there's focus So on. that a areas going few different to

ensure So - more business, marketing product to our it's closely owners and our to or appreciate been with with taking business and our additional associated we getting that of vulnerability we've can model addition closely we really that management work help our focus are be customers I they That's then our working also business way that security able enabled sellers the sales whether have, we sales to our that that have the so we ensure in bringing detection solutions team being whether really more it's marketing or enhancing as detection been the and selling them the sales as line terms be in it's helping aspect the can which for drive the can closely much for product are have And market. that much application business, well directly, team. that these to additional with closely the product whether team. sales really organization specific with aspect out

follow-up, one if And Okay. I may.

deal a a XDR competitive deal? call out other dynamics customer, took of Can I around called you products. You color and right, and - that that large I any that? you around they I believe a on the with EDR, heard around us and if the pricing think, The lot give

gave time I those of between other they look the market vulnerability them. had Yes. were customer at the capabilities management couple VMDR. weaponized are in the Because ability that looking vulnerability they started as short. a The leveraging, as at management bringing, is the of to were risk vulnerability being speed was paramount I they that to and today, extremely a the solution out vulnerabilities solutions, individuals the product to mitigate different and example think, The for that was which coming

work additional that them the them - agent overall leverage to XX-day to model we also other responding intrigued was free provide were same get to essentially give only that have then vulnerability so they things wanted with so at, the a as and because report, POC like threats POC, service, the agent, install the so monitoring giving and separate is platform. at also our with give to that They that for with to them other always to value same "Can mitigate rest the are look their used they the doing looking And end-of-life, on you also broad ability our see to that's I the get agent, are and solutions have point patching can something of capability?" them And under that they once we say, solutions, response EDR what quite and that. risk of was helping that to the system not the see able

patch so which pricing management, in put a otherwise latest volume-based that that, they management it of and And would - is And obviously, we Qualys, have modules that, perspective. modules from EDR. a for purchased And we them on pricing. the place individual from we we combination was license based have felt - obviously, the that a do paid not from vulnerability gave asset inventory, effectively, pricing like just

price cost-effective different relative agent this four that I customer a software those all that operationalize agents felt lot Qualys much agents, four solutions. with and to them integrating plus to view, more than the from single cost So do to one of single that platforms something a that to deploying the point licensing of and think was and different quicker on having then their multiple give was

from Our of next Morgan question comes Stanley. Fodderwala Hamza

is line open. Your

CEO. Sumedh, on your as formal congratulations appointment

Thank you.

then other say consolidating what market you And to would parts variety this your out. Can up year a the sort also of at relative talked because rolling be had to sort around right, you're approach? of XCR from also with surfaces next different coming of last competitors lot on a comment solution on and of you the multi-vector that ability I are the EDR one some displacement, question of of able who solutions. different sort sort to garner security you maybe your your following about a the telemetry So attack technologies of

who curious, from just play into do I'm often you deals these do go you technology So standpoint? when a

Yes.

embedded biggest at no think are is architecture if I is, what that have that's is. I have Qualys the way across the think we infrastructure matter advantage infrastructure sensors of we you type entire it the look that

only. or is have very So Today, agents. natively Qualys data agent-based which we approach an collects agent-led from only don't

deep non-agent in have to We environment scans. very that are assets the able do

that able We to look that are on have. being information have at connections the cloud made sensors additional telemetry we environment, in passively collect were network that information connectors passive that to

continuous that information. have. about this And previously, providing back points today collecting the platform comes And into we then X have end, We're platform. have that We about being really talked trillion that's seven really all we also as applications with have information of and are information well. are entire architecture where the And centralized there that as sensors in gone are that it scanners collating the indexed the are data we we an ElasticSearch. making scalable with of through data highly

lot it's file to monitoring registry as that alerts. in from sensors, we on data or a Qualys' integrity or visibility files it's So that or what related happening into own comes asset, related whether already network whether is have of to collecting processes connections or

is being done. Obviously agent. with capabilities VMDR, already - same those kind EDR covered that that's So and and of by the

deploy environment few it up does on collecting. sensors vendors on multiple printer a about are you've our data a and last now last data firewall platform a time and the of be data that adjusted log the opens going data into actually agent have platform. other on sources any a over can add that so an value. providing And integrate back different end, that we potential SIM XDR also to be Qualys the to all simplified the to can cannot Like, the customer and that not data the with what this the that be need to addition things is can that, typical in with - the what much the actual of XDR focusing cannot solution this one logs data already side, we to they solutions year telemetry then that are provide those, we environment. a into collected this that SIM, our focusing different agent because in But on. that large may then this your correlated to is visibility that additional into which an is put the compromised, collect addition in start And that to Qualys - come directly buy is EDR we and collector, take does seen a XX do, On are device. proxy on the and more capabilities cannot are amount those we a for response And Qualys printer. have, logs, capability, there with lot so you example, see has context put otherwise, that they and buy a year providing from Because multiple

what that reach have collect analyze action our doesn't it data, to means so actions. scanner, we can once clients now and to deploy solutions SOR start platform, is take immediately aspect response from that sources, information take agent, So to with our our the third-party and go that set another of that response the we our that customer

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risk the also through We mitigation give you same to the we sort that's the solution. are and on the all sort And where specific looking that feature in just a market comparison compete agent. EDR of of feature,

some That of drive for what quick order things maybe doing follow-up Got just capabilities. of to within gain the XDR MSSP you very sort it. response perspective, ecosystem? adoption, in to From and traction that. really And incident talking important are channel you're a the to seems be a more go-to-market with about a

sort you bit can of little talk So efforts there? go-to-market your a about

they we've MSSP, rather been towards with more the trend of trying move of if recent - platform themselves than offers partners. solutions. look security on are is if MSSP I the looking some their more so saw Sure. deploy the with I these issues that always resources you they And a mean, to helping the well-partnered happening with can the very at you mean customer to put

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partnerships or can to already to we solution are on the But at can some look or partners So strategic that to MSSP an create of looking some customers. looking providing their ways focus integrated conversations of more who they that we and then platform, them you leverage their leverage with they the already service level. at have it's even that done, Armor whether with start at Qualys of more recent Infosys have at if

So of MSSP top on integrate the platform that. service working partners those as then and new-age looking I the are we sort to of of think doing that's the provide core partners our MSSP what they're with are where who or

from Our Needham. Henderson of go next Please ahead. comes Alex question

very if explain you could in mechanics do be it with quarter you mechanics hoping But in the was from clarify helpful. expected have could to go VMDR that I that the to XX% caused wouldn't that in would that has the number. to to a I'm decline We occurred the certainly it caused XQ. happen, XX% the that seasonality. assuming that something

Yes, a to not just it's Alex, clarify, it's - decline.

take up in a look respective we core group the what that a quarter. at at for customers are So look we is renewal of

really those to up was are QX last quarter, renewal, upgrade had the it for So for a VMDR customers where who from chance time they first example, the VM.

In So happened up year, out what into of last XX% in launched renewing of QX, ended was that VMDR. QX. we customers, VMDR board

our it's anniversary. first-year So

And entire already management up into have at X been taking year, those who adopted been purchased for last VMDR. we've so XX% And in while, the And solutions, actually with them VMDR. had them. renewed a look VMDR percentage customer base, a customers converted obviously, of the in remaining out of now who QX, discussions has vulnerability that

at think really to the share there. because is they take anniversary, terms other did And including is bookings. we that total is have The that why customer about contribution So it from if specific LTM in look bookings, booking, XX% look of that the contribution because a percentage total at pretty if a what you first-year significant it, perspective, it's you it this solutions out we taking includes need.

with contribution continue So percentage we share anticipate to to to adoption. do we forward. We bookings that are to going continue increase, very pleased metric the will that and

just is - a that X% does that net get the the XX% the contribution with the have year So customers to opportunity? additive from prior from mechanically,

quarter. the the total That's total, No. No. in

Okay.

wanted full The second on an call lake question some haven't efficacy? all proper update to stable, the relative you And timeline content is if wondering that out really about actually or where give of us the are right of data where the you maturity? and I could data at you're in that is, calls. degree this pulling to terms talked building of I delivers improved up was ask are lake, to extent in what on your recent in is yourself getting to you satisfying or content you the eroded it the the

Yes.

I XDR that want don't lake. about data Qualys you've a from that data want additional and with into it we've that think customers seen data because lake information. our They as transformed when bringing started that we that a customers, solution initially just our data essentially lake into feedback talking as already integrated

private our our a EDR So has on beta. our is been environment production That deployed and reported already as today solution. focus really in

are internally, to we make it We sure that. where the that we is Qualys, way So that in test leveraging already today we anticipate. it's are working

a for huge undertaking As us you engineering and an platform can is from in to and perspective to area imagine, build go this this that out.

cloud-based that, And so working the thing this the speed that out. how ingest EPS our there's we we learnings quickly building is a there, of in can of kind of how solution can as ingest, lot

that the we time sources. that and learn through coming private as enough a beta pulling pull fixing additional beta engaged we can a couple to already we'll is couple that through on and learning beta that where that across where ultimately public few months, private GA as bumps a data So on once today, that customers lines. have in. start get us, more And have then process, we we we go that may be are deployed Qualys it as and and We're more customers of are for over the feel release other working of insight, new data any and we with to open the bring we good next

where we the terms executed that already good so it think, we're have that like through far road customers to this are, out on of and I solidified point just having an the out a at timeline don't for today, place that in have the exact year. in to then we map And our system there. have can to GA. with plan point we get feel we get it working XDR We where some are and I yet ensure we the

than far it you whatsoever, to out and that fully opposed done, public you're issues sustained mode complete, it's year, Is that this getting more in to at when beta so what out get as about So the talking point. say no it you've - done

Both.

is goal Our the QX, that also can purchasing. a then our beta out as the couple months. of in to we get by get out that start next customers product And goal is this

high of the And - the out has lake of efficacy? terms outcomes reasonably proven it's the that predicting been that the as in efficacy data

Yes.

we see where the to buy the with own for right not is and where something solutions. I comparing solutions now of integrate can having customers added advantage additional with they're seeing amount that and we getting think close of deploy internal sit multiple this and are we efficacy similar to feel environment, that our really

map additional where delivering and be fixing clarity terms various see the the other So we in are and on that the we we're feel on we will where right few of we road next here track the functionality the over months. of

do acquisitions on SentinelOne data to your from in more on down? to or it's while both and to have compressed, compressed similar that in of and significantly ability costs. endpoints terms you Have - data do their still thought done expect searches an So expect CrowdStrike bring their lowering do - through costs you trying to or data upload those something bring even ingestion to

already always had for look around leveraging points you if at, bare ElasticSearch. the And very we're last years. indexing a Yes. multiple in mean, elastic strategy X metal I we trillion data

our million achieved for already on Cassandra in rights second X high extremely we lives per that platform. have We

platform we we ability see scalability what of the amount feel data. large endpoint is pretty to the from feel the and differentiate and ourselves CrowdStrike we from So endpoint focus and platform. to good Where data maybe for now, collecting the we and that the SentinelOne the about right it a and the additional on selling data ingest

endpoints. XDR Our beyond well solution goes

the then on with endpoint from type along to already the firewall it solutions, same of data on not So into information container you gives data broader only endpoint bringing collecting top EDR what and it. proxy the sway from we telemetry scan-based security a information, infrastructure. routers, only that, itself have of agent And the this - the our solutions other be and the many enrich solutions have cloud kind we on log with from collecting that of then log but cannot the that visibility and to threat ability we'll focus have that security with strong of firewalls aspect the agent, see an see don't switches, we an have plus devices, devices EDR collecting devices like that agent, passive have outside that network of of printers, and necessarily devices to already much

that if then that the context, could running So or So shell right? Qualys obligation only a a context, compromised you're can lot vulnerability as has overall, be and web on bringing brings application be put, well. solutions these a focused but then web adding injection a the SQL infrastructure of that that

point your a So traditional feel a of is just what we doing we're the because are lot scope, we endpoint of much has that collecting solutions data at. are that that broader looking outside

nobody Okay. congratulations glad decision could One possibly right Revenue well-deserved. the our be new Board It's I'm your the CEO. certainly And was being there did. permanent on Chief last from it the to the for and choice CEO, Officer. that in bringing made perspective, else comment. Congratulations And on the

of You've and the Sumedh. done hard most things, lifting these constructing

So it's -

Alex. for Thank kind Thank you much, very you words. the

Our from the question of Shebly of line Securities. comes Seyrafi FBN

Yes.

So I billings growth the current QX. want to on be clear for expectation

to it couple from expect think of I accelerate a said you QX. you points

you QX. to please we digits and back next the half double reasonable think in that. several rate secondly, growth the X% what then do current means that And in going forward? confirm years? go assume think over I second growth just So is billings a you And Do

Yes.

Shebly, on current clarify billings. the just to So

some meaningful - bit see fluctuations. we manage we So don't of quarterly billings, we'd give to like because when to a little color

percentage per So were we rate what current to some unexpected, relative to couple guide to point se. bookings. negative terms like we is on current had But of our of billings growth don't we guiding impact QX, billings in

we that that expect we call So in and reverse QX. out, to

QX lower. was is it bookings means current billings you rate what think if to So in actual about growth compared growth is it X.X%, as

We expect QX. that reverse to in

to So higher. be expect to bookings, compared billings we

and the as a that proxy trajectory we business the current of the inform our in best why trying annual revenue headed give. this to on because momentum bookings guidance the where pointing to terms supports was that actually guidance. for keep we're and momentum, it's And really So of business point our that guidance and

$XXX So annual had guided $X by revenue a million. we keep last guidance, million if the to at million We quarter. increased our at to you - that revenue $XXX look midpoint

the rate growth implied year total the now for So is XX%.

So for I of terms current kind in point business that outlook to Qualys. trying your determine of the to would

goes you in of comment you VMDR earlier the an customers it think the - you Do idea of you increasing several though QX. start think do next I over for renewing is the over to now down ticked what have metric of - goes expect quarters? And that even going VMDR with Okay. percentage example? kind that it made XX%, target Do

think I are I of though mean, year, bit last - QX in I that. little we big started towards working the that. Yes. certainly deployment We think even of part in QX of really don't of we the VMDR a had

first-year as anniversary last of early think QX I is VMDR of still to year. build in rolls converted stages, conversion which additional the we were So expect top out, what VMDR on of

know to but to making, the us the quarters go-to-market with percentage for don't that is be, ticking few next something that and are agents. that changes that right the motion to going what so will now, rate opportunity we're up And we we and hoping to continue that start I create more think push with keep is right the

think QX? - Okay. in the public be for to expect that you the I you QX? fiscal that GA me Or is a able mean XDR one purchase goes you QX. expect And SIEM made Does beta comment customers is, launch, last to it it in just in

QX. in GA that's No,

then GA in is beta in public QX. for plan Our QX and

Thank over for remarks. to Sumedh call you. Thakar, closing time, to At back I'd CEO, turn the this like

and addressable value that and industry for to very shareholders. leading and the including efforts market. as well VMDR, EDR multivector on you We're up new our company. activities this competitive in on great same offering, as will developments for marketing our profitability well our ramping applications disrupting I'm XDR and these the with in forthcoming Thank while driving earnings further be honored the long-term attending marketplace our other time, very capitalize excited. we're position right. and be more industry-leading I maintaining our positioned our to for couldn't of all creation flex solutions the call your expand cloud platform, At sales All questions.

our and especially the who impact would and engineering continues hard healthy. be Thank hope Lastly, difficult of there. faced work over our innovation operations and not you your to you safe pandemic in much. current this of team, solutions despite tireless efforts of by market pace without family all new bringing the situation talented many, possible I remain given to very India

Thank This for concludes today's conference call. you participating.

now disconnect. may You