Qualys (QLYS) 5 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Qualys Third Quarter 2024 Investor Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Blair King, Investor Relations. ahead. go please Sir,

Good Call. welcome Michelle. Quarter Qualys' XXXX Earnings afternoon, you, to and Third Thank

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

remarks events started, results I could may performance. that to that forward-looking Before we future today to financial would include future get release will cause relate forth differ Actual our results our differ Factors materially remind from SEC, set press like these you our materially or generally Form XX-K. the operating in with statements that or today's latest XX-Q and statements. filings are our to including and

to that as as a update based we statements or this on result on of forward-looking new of call events. we assumptions and information are obligation these Any today, future statements make no undertake

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

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

customers. was to innovation commitment All Mr. you, King, call. and leadership, cybersecurity of for technology to outcome quarter third right. our quarter successful earnings welcome QX for Qualys, reflecting Thank ongoing another rapid our our and transformation

an I have siloed too stakeholders. to to from dev too on have top are way the focused true left business tools teams, spoken multiple risk to product IT inability management creating few and personally I shift the articulate months, that the and CEOs findings many time, As struggling security in who to run XX marketing dashboards many many with are to and the leading overwhelming last

in members. stop in can in CFO, a pressure organization mitigated to only era risk risk and of Board timely if modern ushered it risk manner. of and whack-a-mole the and spend rationalize and There event the their management Risk to we performed security CEO a feeling next the with ROI the their security recent risk is context remediated operationalized implementing operations articulate spend the are our They is to establish immediate Diego, San by the in a Okta TruRisk process by of playing Qualys cybersecurity the desire solution which center. is partners, At design QSC Enterprise an be Wizz, innovation technology AWS, and ROC. world's real-time several including management of transforms announcing first with cohesive a the findings, platform Defender, Management enterprise-wide financial The by siloed via Forescout. consolidating risk data is with from and Oracle, non-Qualys GA the Microsoft and result ETM into cloud-based Solution, single risk actionable provides intelligence data quantification. risk cyber security threat context and prioritize organizations remediate impact cyber to AI-powered that unique business insights comprehensive and unifies properly aggregates

in now many see market. at vulnerabilities across being and Unlike quualys.com. comprehensively ETM-powered all the early the quantification capabilities, you days that greenfield scale their that to single ROC management. comprehensive, goes and significant the provides I to opportunity some detail data in the early on remediation exposure is is a a and risk the expose beyond management in no provide exposure based collect Qualys market only sensors coordinated, view We of from ETM a platforms watch VMDR, Qualys our reality. the parallels enterprise-wide video encourage industry between new this opportunity of including risk describing ETM, security cloud, identity, has endpoint, existing the remediation more repositories, findings is at patching risk is gold tools for on-prem standard proactive code and ROC capabilities. set container, cybersecurity along orchestration and IoT environment, remediation new remote a market OT With Cyber customer in and transformed with multiple

the ETM managed will on We deliver to which services service also enable a mROC, managed risk as many operations providers Qualys announced center.

with in announcements CISOs soon, to their within are impacted associated to risk immediately their and their to new at teams these of commence Qualys' their assets cybersecurity app, QSC to to IT and TruRisk Lastly, overall identify lower pleased and we going directly instant additional frictionless a which business, innovation. own insights click with threats AI data both we advance notified ETM, on several Diego, history TruRisk their to announced going With discounts a empowering Alongside a call marking out-of-the-box Qualys executives can actionable environment, and business. are risk a ability make customers in to C-level IoT With button. security ETM, teams transfer delivered potential the potentially incident. immediate impact Qualys allowing be and and prevailing by GA to specific map shared residual ETM security ROC for their security the milestone equipped to GA insurance company premium cyber of and vertical with San materiality their existing into from remediation another the well preemptively assets is of score this customers we we provide to their with the of simple XX-year Qualys risk our Eliminate other TruLens now and were Total of a a trending of capabilities,

necessary pioneering environment the our cybersecurity new these others risk an in several operations security differentiators on environment, and customers the and reduce with to coming both platform. our approaches regulatory road threat streamline arm key navigate are and complex are on to map quarters, cost. We These along with management, tools increasingly categories our

Qualys Qualys business into to With broad of many our base, and recognition. their embracing translated help customer notable our Moving already customers update. enviable an to adoption has stack, and re-architect industry consolidate VMDR

category for Qualys' solution customer management believe as our environments risk-based in today further the the leading VMDR in continues recently approach the fourth and by We platform for represent recognized to placement GigaOm a investments to a the high consecutive a As was validates and future. year. securing as management vulnerability TruRisk the leader in announced, watermark and vulnerability with Qualys' comprehensive

track demonstrated Qualys' only solution patch especially to value delivering not lands, adoption, the and new fueling of record cybersecurity management also customers, increase greater logo Given platform areas VMDR with management cloud EASM, in helping TruRisk is but to our security. with asset for

their recent multiple help one In was Qualys of solutions Let team. and me was wins, illustrate of operations. security IT large federal government of QX, use agency to my security across using tools a becoming favorite legacy previously to consolidate couple share a companies their why turn management to fortify security, DevOps which next-gen wins customer. This cases new a customer variety and and a risk their Qualys manage

multiple and the a meets their level-ready efforts. to solution using government in existing to cloud-based right using costs with also siloed natively displaced elongated point vendors operational multiple associated In looking addition the X to bookings operating increasing agency integrated with Qualys migrate on-prem deployments, remediation FedRAMP gate. a frustrated binding the of modules deployment complexity of high-impact systems CISA solutions, was the of inefficiencies X-figure out that the directives, we of

and of them I'm standards. customer state to competitive included able and EDR. deployments pleased our and the with that federal, Patch are Policy looking to with IRAP and well this win, agencies ACSC ongoing strategic investments their Though country's management through our is aid the recently win TruRisk that level. the local cybersecurity opens initial protected leverage now to Qualys VMDR comply strategies as These Compliance with ESM, Continuing for a testament Management, provide highly unified achievement organizations we asset commercial -- in dashboards a requirements to expand Australian evaluated had business that an to natively and PSPF state This insights This while in significant of automation and global most States. meet stringent the has customer the assessed advantage expansion, Australia as integrated that and United government our security competitive win government to government central X-figure their a at upsell existing announce door the compliance solutions greater a full with any large separate taking with platform. alongside agency and

Our successful is managed and extensive delivered bundled services. being and vulnerability a service to highly through as E&Y. assessment for provider selected follows management cybersecurity has a Qualys' by a vetting process state competitive government approval into the Victorian service Qualys

momentum are financial evaluation providers, a monitoring seeing with daily. the added with tools. anomalies, company of customer competing the Today, CNAPP customer a the their point TruRisk detection, actively to to natively upsell miss from selected services complexity Cloud of scale and Qualys to security assess closing determined that runtime and ability platform booking to this mid-X-figure scalable, their to its a our XXX, Through risk Turning consolidate leveraging we to security hindered in over lacked this Total TotalCloud solution, single alternative Global operations, insights their XX,XXX detecting their container cloud container integration and integrated highly integration remediating cluster. CNAPP this deployments and is Enterprise Kubernetes preventing while hosts, dashboard which in combine risk CSAM solution zero-day through with attacks compliance a VMDR proactive millions with solutions customer to existing code through ITSM risk gaps management images

necessary for capabilities represent and and the Qualys. against significant opportunity provide These to long-term cloud defend hygiene growth visibility, automation adversaries a today's

security cost seamlessly recognized to more by guide July cloud application for also challenges, security its drives leadership are Our platforms. and time customers recently With Qualys less. natively modern transformation the cloud-native market cybersecurity platform our better integrated more and understand solutions how on delivered to partner growing protection in market saves was Gartner XXXX in solve outcomes, beginning

see our and new brand expansion spending customer strengthening $XXX deal our and also a our We us just result, with customers to to year the or of strategic QX program continue continues by As registration embraced the XX% with market. a to isn't and we where cross-sells. it's happening prioritized believe customers, position increase ago grew $XXX,XXX more from awareness in Consolidation reflect an partners partner in in

consolidate In they natively challenges, our to Qualys Qualys a the quarter our cyber we long and grow partner we the modern will resources that, -- gap the in Joo Enterprise and results communicates our platform to maintain turn fourth summary, fewer platform. to value as in we rearchitect invest believe the the opportunity remediate over evolve of at further discuss and full the with brings further for for get security unique security further as more this and can strategic security their to highly between to With I to XXXX. year outlook and Mi With quarter initiatives term, call competition. aimed to continue best-in-class key solve third measures, profitability tools, our extending differentiated position environment looking proposition comprehensively that customers using a integrated strengthen risk and to believe customers choice TruRisk

Sumedh, good Thanks, and afternoon.

I'd Before stated like for growth that start, I period figures on are all except to are the non-GAAP and prior comparisons financial rates revenue, unless to note based year otherwise.

channel quarter to X% contribution, XX% year revenues results. $XXX.X to of continuing to Revenue third Turning million, making compared grew increase up to a XX% with total its ago.

ecosystem at with our some revenue partner budget sentiment, the which net persist higher U.S. able XX% XXX% channel unchanged foreseeable believe X%, stabilization but ongoing we expansion XXX%, our the grew came XX%, grow saw selling from of XX% in U.S. our gross commitment continued ahead was at mix which grew last we X%. QX, the remained in but In by performance, direct, for environment, approximately to leverage result our the of quarter. up rate which dollar retention upsell Reflecting business, drive will largely and partners a our stronger rate outside grew growth, future. from XX%, As international scrutiny respectively. to XX%, revenues were and outpacing was domestic to growth

a positive the We see for growth continue achieving consecutive rate business, quarter. in to fifth double-digit new growth a trend

to of made bookings. these cybersecurity power Security QX. cybersecurity underpinning is help terms X% TotalCloud LTM The and our to up TruRisk XX% bookings Cloud Enterprise the LTM theme of combined new management contribution and of scale. bookings, customers In CNAPP, bookings foundational LTM at in Solutions, of product platform XX% management consolidate of patch results up asset made

and XX% and XX% EBITDA profitability. ago. year third Operating adjusted market us. sustainable margin $XX.X primarily model, in in opportunities to a XXXX of scalable of the investments million, business by an to million, front the marketing in XX% representing a quarter XX% our was by a margin QX to at increased Reflecting aimed Turning for sales $XX.X capturing driven increase expenses compared

quarter long-term intensity compared continue of cash the we XXXX and believe returns. As drive investment marketing In our success and capital for our third shares. will prior $XX.X XX% cash EPS the in million, outstanding we to the margin be generated share and enablement, XXX,XXX and focus sales on Qualys, increase year. wallet back free productivity, we customer of including was repurchase to was to operations to able invest expenditures our and into to we QX, from flow continue we $X.XX, $X.X and in XX% $XX.X representing million a million

of quarter, revenues. let had share us As starting remaining we end the With of our guidance, repurchase that, program. with million $XXX.X the turn to in

year the XXXX, For are the guidance compares million million $XXX.X last a our $XXX.X revenue This be full revenues expecting of we million X%. $XXX.X quarter. which growth to of to now in million, range rate $XXX.X to of represents to

with change today, the EBITDA X% in Shifting customers margin XXXX business range guidance. full guidance of dollar Factoring to QX. high new the to expect pipeline the deal cash expect net quarter $XXX.X fourth to million, million this current profitability on no our lighter flow a of better-than-expected to mid- of in This quarter and X%. in rate meaningful continued growth and representing the XXs. For year XXXX, profitability mid-XXs expansion margin we we scrutiny rate to $XXX.X existing in free based assumes be in revenues from the in

$X.XX. EPS year to expect from the $X.XX prior We of of full to $X.XX up range to in be range the $X.XX,

For fourth $X.XX to XXXX, EPS in the to $X.XX. of we expect the be of range quarter

the our of Our gross QX $X.X efficiencies range of $XX range by XXXX expected Adding additional for planned are pressured million in million. to fourth capital greater some the currently data of and $XX operational making centers to be to our to margin quarter we million medium- expenditures to are investments in in long-term XXXX $X.X the of marginal certain reduce million achieve These sales, Sumedh that, context, and in investments costs. in sales vertical With program questions. QX, anticipate engineering expect driving marketing a With enhancing continue and in supporting G&A. and to to we would prioritize pipeline, our in in I operating and to federal X%, any respect your in an expanding modest aimed we increase at in more increases and contraction to happy answer approximately partner QX. similar expenses, with be investment of and more

Instructions]. question our first from William Blair. [Operator And with Ho comes Jonathan

of on be the that can help just product It marketing quite us about Congratulations well changes that the talk Sumedh, results. side? on strong what that you you've implemented moving a maybe maybe -- quarter. bit little you've could seems forward. the some seen And did impact understand like that products this

question. Yes. Great Thank you.

sort for of -- think been there's the really messaging the the I which -- and see talking platformization pane So messaging where risk is risk what customers single about, of quantification aligning a we of business and really lot around different helping bundling. talking and bundling and opportunity glass products sake of overall things people just different modules that have is to we about around the

as is we together sort on bringing how The that. you perspective. the we really that risk money that really we're you in perceive the a to proportionate of how made struggle from which end business announcement of is the much operationalization and of around us, much cybersecurity for articulate a day, even to CISOs the lot to directly spend doing risk big launch things is QSC, a think cybersecurity I all ROC, which

to So you how on the much decide if view different you you of how spend don't business, necessarily you areas much on have do cybersecurity. should a of risk good the have how

of risk is of started the have we modules and have product with management, message focused of that realigning journey just And on to in individual course, last instead our we and the couple on. product the really months marketing products, really, messaging so

articulate third-party risk can data to have risk, management, keep quantification But you you have really conversation tools and risk capabilities very Qualys replacing the are the platform in platform single tools, but bring and view that essentially your that can being simplistic across able with you conversation so of to the into getting in tools you if you what can that your not saying, the different Board. we the these existing we that to like, a score of so give we're into is all those, bringing the

is that And extremely well. resonating

terms how are have marketing, entity? end that of things new I in that we have tools I What together, mean have lot the So does different people in the factors business? consolidate bring these different really mROC, a way particular at for it are the to announced want risk change QSC saying, of announcement of the ROC this as data to when to product at understanding our business a what or do of the And mean well is the so many purpose much affecting as does the event. marketing, it them very so in risk

Excellent. towards And bit you the should and the about then direction new strength you the this sort quarter this retention of together? things positive bundles trend talk maybe and just expect can we to the the of saw for given net just terms new Joo products of in that Mi, a put you release little

a few the especially Yes, upsell, and really with pleased we outperformance quarters after totter rate. down expansion were a tick consecutive of in the

increased to that up So XXX%. it's back to report we're pleased

in tick longer business QX said, what we're term the right the with based for current of guidance, will that and continue to no purposes seeing guidance deals in we up. optimistic we see is play. material that are assuming now. change material we we're that Now for on assuming no today, the improvement the What are But in the in

And the with next Roger Boyd from question UBS. comes

channel. the on touch I want to

numbers. are with clearly momentum sound just could strong new there. expand to up growth continue extent the mROC. to showing revenue you the pretty And there, offerings the a platform contributor I with wonder you're seeing on XQ opportunities It's particularly billings pretty material in was the if the You channel what maybe But confident that to unlocking here? in

Yes.

we I partners, us, years think high X.X happy ago a more to are year, focusing with business around with our deal we level, sort channel X the at bring increasing rates. started to journey of really partners

And strategy, seeing right, upsells. positive what is and we are think that strategy, business partner-first the looking to as new forward So embracing our momentum, seeing both really are momentum we're which for is there. we for I

partners how us, bring our them say, can do enable but towards and mROC, to resell meaningful provide deal now a not the how to more more work we the with to looking helping of We're with we and to some just pivot these launch partners customer. the services

relevant For that ability quantification technical course, service, service time, MDRs they can few managed in have of after provide of a where take can risk remediation now they a is then, risk excited so ingest long partners different fresh that packaging the years, reporting reporting advisory ability the ongoing risk have been service tools, but have they to data something monitoring now and that customers, the they on, SOCs actually and the prioritization, are service focusing service that are meaningful a a to a and around providing a Board been from ROC, service multiple around actually some packages. to around to new lot Board that have actually a a especially our cybersecurity services really a

a first up insurance can if managed you a our cyber as this actually as with providers fatigue on a to invest cyber the us, for even out premium partner risk worked us channel center, partnership And AT&T our is say risk score. because we're we just with operations you True getting to talking benefit essentially of mROC and saying a a certain alert and scores see on level give many lower amount that risk that can give in just to expanding from meaningful partner, Blue that help companies we ROC company that service so partners with focus to actually signed have have we the like out too that can set and building up this discount insurance

not we are across doing we services this do we a products can lot for the embrace actually board about partners capabilities is our that what So things creating that service really see on we and of reselling and top strategy just taking how capabilities. do of and offer the and partner that and

with And our comes next Colville Scotiabank. question from Patrick

were were guess Joo I a Sumedh current of there succinctly pulled guess, performance, on was print. want signed that remind highly deals XQ on Or that XQ? XQ? XQ there that mean pushed the there this phrased focus from The I in current I Mi. to and into the billings which impressive. I'm performance? kind kind maybe question healthy for very were specifically Congratulations is, with is maybe me in any any more any I quarter of one-offs were is deals getting billings

we There -- course out the outside but any In business. were the pushed normal deals some pulled not and have do quarter, and of then given that forward. get

it was perspective. typical at does billing the the the by for contract customers. billings, terms schedule quarter it from a a impacted and so that take you With get said, And current that look when

would the we say performance based XX% posted, on higher billing just just bookings than the I the schedule. that is And it that

on basis, billings. that lumpiness you of an And LTM even is year-to-date so of out basis at the current to smooth take a guide that look do things in to if kind or one we the helps

I so business today. say that would we that's probably indicative of see the momentum more And

Very helpful.

I And on so want guess zoom you to now, I guess, said. but I this on just I what mean touched exactly you in

to be basis, best So this kind we normalized might single-digit kind an year. of more of the providing basis? double-digit things performance high appreciate you're quarter? But not a I right a view forward-looking a like on level should early kind like Or of of is next guide. is mid- level, get the using to LTM that expect what way

give QX best with give year. I look little in be is guy on next indication right more now, or can can to a would It's guidance. current Yes. the line gains, less we say commenting because focus revenue growth for of too the on we like the early that But that the

are revenue to that it guiding to And growth current in billings, X% for I QX. we're we direction. expecting more be trend rate So or less X% to would say that

The comes question from next Kingsley Crane.

for it's team. I'm results. sure impressive whole Really the gratifying

a little Just perspective. over on want to bit TruRisk and get those more be next Total It drove going with product and more from AI like a couple seems years. quarters the what granular strength are the to meaningful really of that

Great had with that. business new of Yes. question. as some We're that NRR we think seen, stuff moderate with of that QX of quarter. see -- growth to happy have good multiple sort we this we Glad to quarters looking a happy pipeline, we're business little expect the -- mentioned, the I the a Look, at see overall, up to we quarter. about in bit. We're Julie new happy tick though, saw the

But the upsells that QX. new that, saw in TotalCloud deals good that we federal said happy a some having our we're the been well with from momentum side federal we of and also good with has QX bookings evolving solution perspective. performance like And saw kind business been investments and we our and making, from as how have

with tools. VM than VMDR is solutions management of vulnerability really more just people you management as buying scan-only patch or As shifting part saw, rather

Cybersecurity Management Asset in the of and to then Patch that of Management Management and and bookings see reflected are LTM new CSAM Patch being XX% bookings XX% so VMDR. bookings as total in And addition game you

them coming with are we are management to providing they're from capabilities solution saying cloud another driving seeing VMDR itself. new in net so also the just And new first purchase scanning-only the us -- because itself. scanning-only security of buy product management, that solution to We're are a buying solution, asset buying the cybersecurity first these moving the purchase people are they're patch of business some instead that in

"Hey, with then AI more we early very positive driving deploy resources, an we're is this now the very, operations Total and are LLM around more risk team AI into certify saying, also some around next security to continue of ETM and IT conversations don't guys because teams a center more marketing and product right idea to security AI of ready what And to coming test lot getting the most it, they're is form to year, as so perspective. put production seeing customers TotalCloud the have what you any happening from security some teams today training, can

a time. so this really point AI jailbreakes that almost a looking for with shoot like Qualys up for and and And perfect what tests of or scanner a vulnerabilities at common they're thumbs point for providing is Total and down recipe some the the AI giving thumbs AI of

momentum So we're seeing that well. building as up

established at And so forward are Management, as looking Patch who we Cybersecurity continuing against customers cloud-only with security cloud we get bringing into more momentum next to against of also, we in solution here are the consolidation that ETM year, were Management, looking them, is ROC Asset those on And highlighted as we the in seeing high. players interest ones market. the very, that the seeing amount wins very we are the seeing one as We're that well. then and the are of wins

CISOs. Our Advisory Board, Strategic

test their and try key of Board. point of their management this a this, they We eagerly to that waiting contention are hitting really are and them seeing with a lot seeing

the And of so we years. opportunities growth really get couple like up for AI growth couple next ETM some on feel as potential we are next of nice cloud, over very, us very federal, into with the building and years

the Product are appropriate you departure just It learned step the mean, cash, had in of you That's back do, helpful. over things have feel which what the been months? have Sumedh, seems it and planned. Great. you really like I bandwidth? in Chief And a operationally seems the back well. Officer Do September, circling like take of to past wanted like couple you going I

Yes, I do.

just good to always it's places, to what a back can you people talk that impact and other get And wonderful each in think make. like I to get see. most

And a in really just struggling in stepped people were this is wonderful of period lakes really together, so product calling very that teams way different up able with, I which branding kinds a think Center, as I quick Operations Risk security it's we describing of the management, resonated and names come and product all to and it data are brought marketing of instead with of well.

And this just that together came coming instead some with literally up offering what and marketing very terms customers operations a from of the and cyber product fancy we creativity operationalize saying, risk. sitting of product risk that our it's management just names, center our team them eventually helps are like and

out in the some able that I'm with to the -- clarity we from as messaging really for we're so ourselves being of and enthusiasm Qualys bigger, of just management crispness of really the coming you're a into see scanning that coming broader finding messaging much platform the and a seeing vulnerabilities. and vulnerability and that scanner and And the have just team not is evolved together, now risk

Joel question comes And next the from with Fishbein Truist.

product interested Sumedh, the product And just what when management TruRisk very Love -- it differentiated does And the revenue eliminate is? Really very it on come seems you early market? expect when to from question. in do feedback altogether? to go follow hear a like specifically up to to the platform

Joel. Thanks,

question. I ask like You that. product always a

interesting. very So it's Element really is TruRisk --

that the us. management hasn't the ago So has history if time, distributed customer and have, of a vulnerability I helped for you spend not ready there we Management between differentiator competition pushback mean, years Patch real that our our today and solution But lot introduced vulnerability Management, us management market Patch a to were really solution our a and really which up. that patching the now was the few at the when with recall become scanning and has I evolve has analysts picked been quite really for

cetera. some on questions from from Qualys and XXXX, they a our are customer deployed patching, of the number there in just would to we this while patches agents So that the customers in management vulnerability are anybody our patching significant in date, were scanning uptake million year some patch XX devices vendor, initially at have buy right? et looking And cycle

The more However, patches something go also little run security customer patching wrong. challenge, team deploy, operational and and of environment that opportunities that sometimes. we It's IT bit in is you right? more battle a the could an team, political into between so a

is And is though on hesitation it so there required. patching,

up So not issue without only that nice it but mitigate patch ability we done, with we have that a very also management patching. provides to Eliminate, come packaging now TruRisk have the does with the

very our deploying prevent and can how attacker agents about some attackers the make attacking even device device, without changes to go deploy specific will a being successful because patch. study that a the actually we mitigations So can from we small

provides the mitigate isolation. because we're are allows something is now of this something now patch really, the not cannot looking And capability to that because management And they're look, those customers we're but it really saying, us patching, buy capability risk. a who buying also, forward buying mitigate really our buy can to that

of And patch, take I'm I so highly risk, look, saying, we're a because it if going cannot I seeing has some kind actually they're machine environments cannot the much too risk. where that I cannot take the mitigate. regulated just way to off and network

something quarter. is production packaging this just that this rolled out And so to

that as that. get messaging they but the helps so available for Board helps being can is there internally, actually we we about members, it the and patch no them challenge it this solutions challenge them And to address our where to because are talk zero-day devices out, also very address optimistic were attacked, IT Advisory political we Strategic start provide

bring purchase buy capability where additional say, And capability. to resistant can momentum patch well, buy and actually can forward mitigate existing that the mitigate the of customers who next actually just eliminate patching, for now also can we upgrade and I'm our this so that year not that as they management but I here's early back to who are an you have allows to "Hey, you because those part go patch now say, looking I'm

lots So getting And customers as to we momentum to we be of year. it, using adopter for interesting see broadly and we're optimistic roll out this opportunities. something this will more that more next in early start

Davidson. next from with question the And Kessinger D.A. comes Rudy

on revenue billings. Similar curious in Patrick's quarter. particularly quarter, the revenue strong and to the a on I'm guess, question, on Congrats I outperformance

think, Or else deals? in the upsell, And expectations? I if company, One it or than anything on was of expected a not just the But particular, if was that large largest to upsell it of broad-based curious to your your a I'm primary being as your like it? better driver. sounds upsell public it handful better was largest, guide, relative was it upsell than

From less net we expansion Yes. results really reviewing performance conservative We been QX, pleased the more because rate. take tick in potential the quarters, a dollar with were you it's if continued or how we've was from underperforming it an we perspective, of were to the not upsell and were QX. been but in broad-based, just only a because look at recent down

rate primarily upsell work the with to by deals back our dollar up quarter really was And finally XXX% we the so in performance, execution, to our going getting that with. focused had net expansion driven the

then we're And logos some the the seeing because share, that, to another It's able new continued helped to definitely get a take new bookings momentum market addition you're where as in in. in new double-digit well growth. business

upsell, expect a to that to And looking continue. then see rate the on on deals on new expect we success anticipate And business upsell the the of a QX, today. lighter so don't we we that We based similar don't quarter. do

to Okay. That's the to current leave in I X% then on billings calculated question to an you're answer the QX you helpful. guiding range said in revenue. And X% that earlier,

that CCB to was for trailing QX, for XX-month In clear, be to Just CCB or for X% QX X%.

Yes. QX CCB.

from And Matt RBC. with question our next comes Hedberg

but on to maybe the quarter. be really new more an start maybe this and lot that Sumedh, you was you have a what maybe month from some comment curious seen momentum. on bit a the of a of you're based I'm idiosyncratic to macro seem on durability can trends through guess of nature you've channel provide durability if QX, more the color driven, now they curious, on kind trends, seeing. I these these could versus contributions I of product the first of positivity of

our if exercise Advisory Strategic think where in that conversations momentum, different We user the gave look with Mumbai the and interest we et Board. put we just are to that saw as CISOs San as products money the well the to Diego, you that having, like cetera. we AI, conference in at fun we the on had I did this

think real and teams to continue move a we We need focus randomly and and get ask start more there's to just tools and on I real can't dev in more this a desire to just everything. alerts IT direction. buy to fix

and to your So outcome the go to and how not conversation aligning with keeping that one while business of get into you sort figuring factors of the having this view replace. having tools different risk out do

momentum the to TotalCloud replace think is more or us seems around very opportunities I get looking and AI to real.

the I it extra of there there is is cycles think the longer. deal are still reality -- scrutiny but -- deals where the where on macro is

with level I quite think the the we're that encouraged conversations, I interest of has positive. So momentum, of think been all the

Now translate in something how our are pipeline have, that need the I focusing is combination that a happy we cetera. did we execution, some does term, how of with then to and we think QX that it's quarter-over-quarter of in short which build the on et

piece, ROC quite patching what I we capabilities look the you at security at these mean, differentiated. from you look nearest look you Illuminate, different if if I at if I given the has. ETM, are is, these quite AI have, at you look that are differentiated what at think look if competition

longer So say, cybersecurity as come I I areas be continue the quarters. essentially sort in look to to starting couple to that forward see make of bigger stable time trying -- is the of and rather of for a people I just what term, than focus focus years in X, I on the is next the next to the are to think going impact things these have, X back to

of interest is real. the think I So and that all

lumpy the that the to in close, have how going deals is think be few quarters. last of we I as I think seen some

And a Or just Is of what wanted typically answers is for guidance pretty partially a end later But the helpful. sort question business -- layers just maybe of it maybe that kind to this super a new I to on is your Mi, said that for point I seeing? a is that. to answer next into that know you're for as last clarification. just question. that's year you that of of something my Joo guys? just point Well, assumes put you trends even trend go quarter strong conservatism finer you of the

the It's that trend definitely we're today. seeing not

we're new trend us. outlook is year-to-date that on well and think seen at commenting have bookings the we've for pipeline that per se. where business the What been I'm the deals looking kind the I very based on performing of the

lighter a to pipe seeing we would are see for We than like QX.

for just of that a fact that that, of because double-digit say don't bit which QX, that, a I'm had the we've to continuing to I'm out growth, won't quarter consecutive continue see not in to I So of look, bookings pointing XXXX. little great. it new necessarily color fifth QX. giving was

of ago. know, Just the informed IFRS mean, to right, couple as add to that, is made QX a I you quarters pipeline in by

encouraging QX right? for forward has essentially, just sort in bringing to made marketing calling to and important QX out back for pipeline this that quarters from came it been trend really have few at what point. have that is we understand and we we look kind momentum a where of to, that last And think on of we the us I are with has made so changes the see quite the been over just changes

Trevor Walsh our And next with question from Citizens. comes

of you around know had already I a risk. lot Sumedh, questions

I from high maybe So view. wanted -- to super out back just a high-level

views. deck slide of and kind guys being kind understand good different a consolidator around coming tools the quantifying of had You in that there those get in you just from or the some totally out where are are all all risk the different of way

around view had kind roll to of to or us maybe you risk X you you things Can customers management? as consolidator or of look the going lean you the what's Qualys think customer tell like from enterprise that are on out maybe X the conversations just be to risk that

excellent question. an Yes,

that, doing quantification, primarily, of companies of that tools tools. dollar are and the are billions spend all good of some right? are quantification actually lot dollars anything remediation they're that mean these Qualys some there of form some then perspective, a finding some data smaller from value are at at if not from And quantification. of of they're done. a remediation job tool and they're there don't if doing pulling a focusing of consolidation pulling day, doesn't the end think doing really staring but them good any they're doing all, at not building of neither necessarily the you dashboards data the And get you the is So nice if from doing on a multiple I job

our any because, is or of first the a foundational and so of findings those And about partnerships is of time The in part are the already a start high and take the sources that that in their which some is are lot asset very are these already of ROC customers in -- findings to Qualys. they of large of just who all, element already information using. from with announced the Qualys story vendors they to additional plug a inventory, ETM with that Qualys can customers interest we now ROC level with key

so to -- able that And platform. a consolidate on being that scalable to being have able inventory,

the findings can help who Board a really part. are risk provide and visibility where of and and scoring, actually another capability a that have provide right? Board actually But scalable with are relevant consolidating fixed could able millions that create have the you we don't some then differentiator, you the the take most part ultimately, to some for can the So use. platform a numbers, ultimately, but customers that really lot they that to the proven bring folks is being giving things of reporting some we report you stuff you Like which get remediation and to millions is and

from my conversation says going an collected able to score that million single $XX multiple next say money across that from report Zero our out having and that they that is about to gave a the our it's or tools my fact operationalize a of big which I $XXX going and risk the example, something with big is of day putting that, for are indication these CISOs can't this for do score what in easier But instead lose and that possibility a different that tools to going So company go high Board is feedback outcome in the to possibility that has all center, that silos, or easier million And unit cybersecurity what talk going giving there are risk there operations Trust bringing business it's trend to business and multiple are and to going day. lot this, per a a actually million for can and when whether go ask for pieces us come to is an has the the budget, multiple vendors is a Zero Trust loss I a out and that if of get. we workflow. it in around something that different place I'm the that explain the bring say, that a we I'm me lot as you're one next than a the is is is to a rather $XX that

score them the possibility which day XX%, level. is $XX these have the X is spend a put losing look, our in take you $XXX,XXX which And conversation controls a to is acceptable risk say, to bring when high, we like can higher, to then place. to can say, much will have And of down that I to better million my CFO to much then it's an -- more the asking thing to how can for in being explain going that risk conversation money rather actually in return things actually saying, able -- other security get to to they're safer. without "Oh, we're going than big that going what make just deploy for and to and next that, for came prove easier saying than is lot down. a that you And

is value is And high in fast where so a of already data because initial the the is enthusiasm to lot the that that's Qualys. very very time

when because for data to the to into have the your our other how go of you value I'm for I competing can excited give together say, they tools. hour you prospects who side, or of solutions, true in protracted they come the partners, have that X security score. give I me different can replacement. next our don't think show a of sellers battle and can get all They maybe and risk business walk away okay, X

existing have We're feeds something. than modules solutions, already feed also and to other integrated looking again scoring at they which are then go because more adopting modules having into customers pull TruRisk these to with the rather into

ETM business only a the see with So not lot our well. ROC as the for things -- for of there's but that customers, we from positive

as have on the not And is really holistic But across different taken on few fronts. the the -- our other well. a see, executing only to of also insurance, product quarters so forming the going for we focus approach as can be risk the as as of insurance the market well end as next cyber marketing cyber transfer really the but it, you mROC

score just their visibility So we're really to It's how management. Board quite at and here. comprehensive -- that's really what like. customers look It's can this not a a they one provide

the quick kind made color Great. around in sales I One for the marketing investments and I follow-up the on effect operating Joo some can. there. of quarter and of appreciate expenses the Mi, if

metrics of a off? that whether and whether making how are or different kind you paying choices of seeing, like these just the that about a from these quarters give just now investments you're maybe otherwise. thinking than for a Can been sense the few you whether you're maybe that's the how channel theme ROI of a we're few or deeper kind are seeing think revenue not around overall us levels billings just I it's tracking it's investments, or

the tracking we perspective, The bookings the way obviously sales And haven't takes. the generate increase that sales that and of been puts that way ramp seen is you an have on for we metric because a overall just is each significant able from of we've direct measure one mean, to force kind headcount. we're ROI, productivity, much sales of metrics how I the standard that

been year, presales business, growing bookings the we've by in working digits. indicated who has on the new new sales well double fact as really been doing bookings this the that reps have We are business

done side, we at the that Now renewals haven't a area for this well as the year. you on and if look upsell, in take post-sales

And year. growth overall make to really so to accelerate what the sure set properly is we're next really trying us at look that do for a sales to taking the structure is up

go be to of taking addition been when comes tried this the in that we through initiatives as partners. to channel, at will in And kind a that it the trying invest to we've a sharing from portal, MSSP year planning, up We're XX how out look all campaigns We've our that to sure it's we channel whether impact which at perspective and setting and work profitability. will incentivized different they're then see ones we look ones the XXXX into should partners. continue making which rebates taking from dealer with that the or like

with next Bayer. question comes Kothari our And Shrenik from

really Sumedh, quarter the sounded last I Congrats on great and Summit the enthusiastic about at Sector you asked time and the first it. about federal quarter. had the Public quite

QX. in wins great some highlighted You

color quantify of help looking from like can the standpoint you here. is potential terms of mentioned any the robust still a pipeline XQ you uplift just terms And in or the expectations beyond to momentum if So that your just or the budget federal in relative seasonality. pretty

a products go-to-market I deepening there? talk how and If there, to quick expand and can relation into new and relationships to have about agencies follow-up. specific departments you like then in strategies And specifically federal federal

year focus an is way. of so us last in Federal for or -- the big over a area a

I our where a that to new on interest from team out our focused highlighted upsell Bill years, the this Qualys practice, are for our doing these bigger in people mean of to and medium sales perspective these sort cost different one work team X, drop level getting Qualys in federal indicators hired name FedRAMP we there. out solutions that are X focused news get that's what definitely and different there our we agencies, and names one to And quarter have really single X-figure the is federal building of conference consolidating always for the net marketing work in partners, the on space, the and multiple replacing and good driving that figures name our Of that's with did a up platform. are build is certification to the we tools. few with helped X Typically, favor in really of is is first well. as we focused get in complexity course, But Hawkins deal we good

momentum. we see So the

way. as I But is business bit budgets little think, into is you are the as know, we years. positive that next lumpy seeing federal overall, momentum get a QX we few

build out to time practice where amount. significant takes it a think it's that federal I

And seeing the seeing we are with to then so that federal right But of outcome into and looking investment what year forward we're continuing next side the we're on now. pleased that.

Very helpful, Sumedh.

Just a quick for follow-up Mi. Joo

digits mentioned expected at second to half. last to what revenue and for right, the a mirror mid-single the of if schedule, on growth can like of growth into scheduling delve said in kind perhaps of compared change of if bit kind in billings touched you it I terms You of billing quarter terms all kind heard in more

the Just upsides trying missing to kind of understand if might there contributing relative which the in are factors any revenues. to be

a billings tends trying trajectory. it looking to in there it or -- current as bookings current use definitely to lumpiness fluctuate, billings, proxy is for Yes. and business The when performance you're

And was were were deals pushed nothing that on. There There I that's commenting then forward. some significant really and was out was what to that highlight. pulled so

bookings So current than nothing billings as this the to happened performance. example, it's And than abnormal an performance. be significant. But billings or growth growth higher a happen to bookings the be lower quarter, reverse then current last quarter,

So you see that that lumpiness. and fluctuations

really use on if trying a bookings, it probably you're that to basis for LTM say using more would I that an is accurate. as So proxy

And our with Kim comes question Capital. next Loop Yun from

good Sumedh, continued to around new solid see First, congrats on execution. bookings solid products.

new Is is give sales new process driven If that around go-to-market these for seeing with traction kind you new for instance, products? some customers And renewal also, of products, by what insights you primarily there into a these new can for us the process? are products?

as mean, is Management, I at basically coming if Yes. Judy LTM XX% these talked products. of it, from asset you bookings Patch look cybersecurity right, net about new management,

for And execution focusing is really to conversation on scanning point the things. is enablement, patch thanks that so go been team have a scanner our really other don't to training ability bit and inventory little saying the scan no the our this there oh, talk scanner sales have you the is than really in Dino not without in of, and and better sellers sales is the you if to an of ROI about comprehensive of cannot

is of Qualys only that platform so And really ability all the X have together. these the is to providing

we vulnerability vulnerability said workflow, had at Qualys the is putting session it is their if helping the they market, they look this in of is holistically is have perspective, decision may say, we VM scanner is at QSC satisfied the from even and the so M management back and that make management at important. our they And where a customers to in management what that scanning current be with the process

is and and we when cannot patch positioning a offer solution, sellers in our the goes the patch and management. as customer They're in provide because sellers management. new competing giving going are not business advantage they so And packaging that comprehensive back now the to -- offering us

you I In doing he that of CISO said, said, case, one them to our to talked They a Qualys. fact, then that management. did came should in competition well, a he and logo patch and new just said talk board, on of to go is

that management to we're want much okay, not evolving product scan of is stuff. tool, vulnerability say, a we are as capabilities so something people differentiating that seeing on just we new as focusing just are are to And these which scanning out

products So getting are new momentum.

with TotalCloud, right had happy we good Cloud, we're Total quarter a said, now. I with As that and

people even So to new cloud it but I scanning-only doesn't look coming buy to laptops. say, well, at business are and solution, net desktops seeing could us a we scan then my my

cloud like well with which the are something at a solution good might security. very as comprehensive we Qualys, providing where we are So though cloud not go again is only,

devices assess also We same the as your the to all of well context. provide ability other in

a scanner. really better focus than newer the going been of this sellers a is than and on lot quarter, focus your saying us has just our enablement putting been getting articulate for scanner so key And of our and messaging to we've rather sort

Okay. Great.

products to that? of is make Or independent want the Just sure, driven though, is selling it new around process? by the these renewal

Sorry, what the process?

renewal. The

these really selling you product? in Are Yes. renewals? Or independent products conjunction new really, with is it of the renewal

No, yes. both. Yes, no,

the yes, So I -- get question. the

new some their adjusting existing customers spend in which that is talked to XX% cases, who bookings buying and more was LTM come we XX% cybersecurity Patch the then that about overall, or are on of some more Management And Management. either coming and net be to right? patching Qualys, So is spend VM Qualys, Asset the new Management includes that Patch for buying logos might to additional on

So We're places. that both it's seeing in both.

because are net we because Patch these we capabilities don't we the to with we see and creating attracting customers, existing Management new have Asset competition. Management, logos are upsell So new and that Cybersecurity also opportunities to

for call, to will and today's This conference participation. like everyone would disconnect. may now you conclude thank your We