Financial Data and Key Metrics Changes - Revenues grew 10% to $164.1 million, with channel contributions increasing to 49% of total revenues from 46% a year ago [21][22] - Adjusted EBITDA for Q2 was $73.4 million, representing a 45% margin compared to 47% a year ago [23] - Free cash flow was $32.4 million, representing a 20% margin compared to 33% in the prior year [24] - EPS for Q2 grew 11% to $1.68 [24] Business Line Data and Key Metrics Changes - Patch management and cybersecurity asset management combined accounted for 16% of total bookings and 26% of new bookings on an LTM basis [23] - Cloud security solutions, Total Cloud SINA, made up 5% of LTM bookings [23] Market Data and Key Metrics Changes - International revenue grew by 15%, outpacing domestic growth of 7% [22] - The number of customers spending $500,000 or more grew 7% year-over-year to 212 [12] Company Strategy and Development Direction - Qualys is pioneering a new risk operation center category in cybersecurity, focusing on proactive risk management rather than just detection [6][7] - The company is expanding its ETM solution and introducing identity security management to address the evolving cybersecurity landscape [10][11] - A new flexible pricing model, Qualys units (QLUs), allows customers to access the entire platform and utilize modules of their choice [18] Management's Comments on Operating Environment and Future Outlook - The management noted ongoing macroeconomic uncertainty but expressed optimism about improving net dollar expansion rates, which increased to 104% [32][33] - The company expects revenue growth for the full year 2025 to be in the range of $656 million to $662 million, representing an 8% to 9% growth rate [25][26] - Management emphasized the importance of continued investment in sales and marketing to drive growth and capitalize on market opportunities [27] Other Important Information - Qualys received FedRAMP High authorization, positioning it as a modern alternative for federal, state, and local agencies [16] - The company is focusing on expanding its partner ecosystem to drive growth and enhance its market presence [17] Q&A Session Summary Question: Insights on the macro environment and guidance conservatism - Management acknowledged a stable but challenging environment, with customers being cautious about spending [32] Question: Performance of mROC messaging - Management noted that partners are excited about the proactive risk management capabilities offered by mROC, differentiating it from traditional SOC services [35] Question: Bridging revenue and billings growth - Management indicated that current billings growth is expected to align with revenue growth guidance of 6% to 8% [41] Question: Expectations for the federal vertical post-FedRAMP High - Management expressed optimism about future opportunities in the federal sector, although immediate impacts are not expected [46][48] Question: Impact of Qualys Flex pricing - Management reported positive feedback on the new pricing model, which allows customers to access multiple modules without purchasing additional SKUs [51] Question: Revenue outperformance and guidance - Management attributed revenue outperformance to a more conservative initial guidance due to macro uncertainties, but noted strong execution in the first half of the year [58]