Qualys(QLYS) - 2024 Q4 - Annual Report

Financial Performance - Revenues for 2024 reached $607,571 thousand, a 9.6$554,458 thousand in 2023[317]. - Gross profit for 2024 was $496,089 thousand, up 10.9$446,973 thousand in 2023[317]. - Net income for 2024 increased to $173,680 thousand, representing a 14.6$151,595 thousand in 2023[320]. - Basic net income per share rose to $4.72 in 2024, up from$4.11 in 2023, reflecting a 14.8% increase[317]. - Total revenues for the year ended December 31, 2024, reached $607.6 million, up 9.6$554.5 million in 2023[403]. - The net income for the year ended December 31, 2024, was $173.7 million, up 14.6$151.6 million in 2023[458]. - Revenue from the United States for the year ended December 31, 2024, was $354.6 million, while foreign revenue was$253.0 million[459]. Assets and Liabilities - As of December 31, 2024, Qualys reported total assets of $973.5 million, an increase from$812.6 million in 2023, representing a growth of approximately 20%[313]. - The company had $575.3 million in cash, cash equivalents, and marketable securities as of December 31, 2024, with no material decrease in fair value expected from a hypothetical 100 basis point increase in interest rates[293]. - The company reported a net accumulated deficit of$189.2 million in 2024, reduced from $228.1 million in 2023, indicating an improvement in financial health[313]. - The Company had total long-lived assets of$71.3 million as of December 31, 2024, compared to $55.0 million in 2023[459]. - The total fair value of marketable securities due within one year was$185,571,000, while those due after one year through five years totaled $186,367,000 as of December 31, 2024[385]. Cash Flow and Investments - Cash flow from operating activities for 2024 was$244,094 thousand, slightly down from $244,605 thousand in 2023[323]. - The company repurchased common stock worth$139,875 thousand in 2024, compared to $170,800 thousand in 2023[323]. - The Company has total purchase commitments of$56.4 million as of December 31, 2024, with $25.1 million due in 2025[415]. - The company incurred advertising costs of$2.9 million in 2024, which is a decrease from the previous years[361]. Stock-Based Compensation - The total stock-based compensation expense for the year ended December 31, 2024 was $77.1 million, an increase of 11.8$69.1 million in 2023[439]. - The intrinsic value of options exercised in 2024 was $24.0 million, compared to$41.7 million in 2023, indicating a decrease of 42.0%[431]. - The aggregate fair value of RSUs vested in 2024 was $56.2 million, up from$55.7 million in 2023, reflecting a 0.9% increase[435]. - The company recognized stock-based compensation expenses related to PRSUs of $12.4 million in 2024, a significant increase from$7.4 million in 2023[440]. - The number of shares authorized for issuance under the 2021 Employee Stock Purchase Plan was 600 thousand, with 59 thousand shares issued in 2024[428][429]. Research and Development - The company anticipates continued investments in sales and marketing, infrastructure, and research and development to support growth and innovation[290]. - Research and development expenses for 2024 were $111,852 thousand, a slight increase from$110,472 thousand in 2023[317]. Deferred Revenues and Contracts - Deferred revenues increased to $395.7 million in 2024 from$364.9 million in 2023, indicating a growth of approximately 8.4%[313]. - The Company recognizes revenue from subscriptions ratably over the contract terms, which generally last one year, with some contracts extending up to five years[352]. - Deferred revenues as of the balance sheet date consist of customer contracts billed or cash received that will be recognized in the future, with the current portion expected to be recognized within one year[358]. Foreign Currency and Derivatives - Qualys has designated cash flow hedge forward contracts with notional amounts of €51.4 million, £20.3 million, and Rs.4,381.0 million to mitigate foreign currency risks[291]. - The company utilizes derivative financial instruments to reduce foreign currency exchange risks, primarily through foreign currency forward contracts with maturities of 13 months or less[350]. - The total foreign exchange losses, net for the year ended December 31, 2024, were $3,192,000, compared to losses of$697,000 in 2023[393]. Tax and Compliance - The effective tax rate for the Company was 17.2% for the year ended December 31, 2024, compared to 15.1% in 2023[449]. - The Company reported a deferred tax asset of $94.6 million as of December 31, 2024, compared to$72.4 million in 2023[450]. - The unrecognized tax benefits increased to $12.1 million as of December 31, 2024, from$11.9 million in 2023[452].