Financial Data and Key Metrics Changes - Revenues grew 10% to $159.9 million, with channel contributions increasing to 49% of total revenues from 45% a year ago [19][20] - Adjusted EBITDA for Q1 was $74.8 million, representing a 47% margin, consistent with the previous year [22] - Free cash flow was $107.6 million, maintaining a 57% margin compared to the prior year [22][23] - EPS for Q1 was $1.67, with full-year EPS guidance raised to $6.00 - $6.30 from a prior range of $5.50 - $5.90 [23][24] Business Line Data and Key Metrics Changes - Patch management and cybersecurity asset management accounted for 15% of total bookings and 24% of new bookings on an LTM basis [21] - Total Cloud CNAP made up 5% of LTM bookings, reflecting customer demand for comprehensive risk management [21] Market Data and Key Metrics Changes - U.S. revenue grew 6%, while international revenue grew 16%, indicating stronger performance outside the U.S. [20] - Customers spending $500,000 or more increased by 6% year-over-year to 2,003 [15] Company Strategy and Development Direction - The company is focusing on a partner-first strategy to drive growth, emphasizing the consolidation of security tools and risk management [60][73] - Qualys aims to enhance its Total AI and TruRisk capabilities to address evolving threats associated with AI technologies [10] - The company is advancing its managed risk operations (MROC) services to provide a centralized approach to pre-breach risk management [16] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainty affecting customer spending and decision-making cycles, leading to a more cautious outlook [28][29] - Despite challenges, the company remains confident in its long-term growth potential and ability to gain market share [15][18] - Guidance for full-year revenue growth is set at 7% to 8%, with expectations of increased scrutiny on new business growth [24][25] Other Important Information - The company has made progress towards achieving FedRAMP high certification, which is expected to fuel growth [17] - Qualys has repurchased 9.6 million shares since February 2018, returning nearly $1.1 billion to shareholders [23] Q&A Session Summary Question: Thoughts on the macro environment and customer spending - Management observed that cybersecurity remains a priority, but there is increased scrutiny on spending and longer decision cycles [28] Question: Customer journey with the Risk Operations Center (ROC) - The ROC consolidates risk signals from multiple tools, providing actionable insights and remediation plans, which helps customers save time and resources [31][32] Question: Impact of macro challenges on deals - No material deals were pushed or pulled; however, there was some pushback on anticipated upsell rates from existing customers [37] Question: Competitive landscape and response to competitors expanding into network-based VM - Management expressed confidence in Qualys's focus on prioritizing and remediating vulnerabilities rather than just identifying them [39][40] Question: Growth in Total Cloud CNAP and audit readiness - The Total Cloud CNAP is still in early stages but has seen growth, with audit readiness becoming a significant area of focus for customers [78][81]

Financial Data and Key Metrics Changes - For the full year 2024, the company reported revenue growth of 10% to $607.6 million, with adjusted EBITDA margin at 47% and net income increasing by 16% to $229 million, resulting in an EPS of $6.13 [21][22]. - In Q4 2024, revenues also grew by 10% to $159.2 million, with free cash flow reaching $41.9 million, representing a 26% margin compared to 22% in the prior year [22][25]. Business Line Data and Key Metrics Changes - Cloud management and cybersecurity asset management combined accounted for 15% of total bookings and 24% of new bookings in 2024 [24]. - The channel contributed 48% of total revenues in Q4, up from 44% a year ago, with revenues from channel partners growing by 18% compared to a 3% growth in direct revenues [22][23]. Market Data and Key Metrics Changes - International revenue growth was 15%, outpacing domestic growth of 7%, with the U.S. and international revenue mix at 58% and 42%, respectively [22][23]. - The company anticipates a stable selling environment in 2025, with ongoing budget scrutiny expected to persist [23]. Company Strategy and Development Direction - The company is focusing on evolving its platform to provide a comprehensive risk analytics and quantification solution, enhancing its strategic relevance and market opportunity [6][8]. - The introduction of the Enterprise TruRisk Management solution aims to set a new standard in proactive cyber risk management, allowing customers to operationalize a modern risk operations center [10][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's market position and growth opportunities, emphasizing the importance of continuous innovation and delivering value to customers [19][20]. - The company expects revenue growth in 2025 to be in the range of $645 million to $657 million, representing a growth rate of 6% to 8% [26][27]. Other Important Information - The company announced a $200 million increase to its share repurchase program, bringing the total available amount for share repurchases to $343.4 million [26]. - The departure of the Chief Revenue Officer is noted, with plans to oversee the sales organization and continue focusing on a partner-first strategy [18][39]. Q&A Session Summary Question: Thoughts on creative packaging opportunities for products - Management indicated that they are exploring feedback from early adopters to enhance broader platform adoption and pricing strategies [31]. Question: Plans for balancing time and hiring key leaders after CRO departure - Management reassured that the sales leadership team is strong and capable, with a focus on execution and partner-oriented strategies [32][34]. Question: Changes expected in sales motion post-CRO departure - Management highlighted a focus on executing sales growth with a strong sales head group and leveraging partnerships for new business [38][39]. Question: Early customer feedback on TotalAI and competitive dynamics - Management noted positive early feedback on TotalAI, emphasizing its unique capability to secure AI workloads and the growing interest from customers [40][44]. Question: Performance in Q4 relative to guidance and expectations - Management explained that better linearity in renewals and invoicing cycles contributed to stronger Q4 performance, while Q1 guidance reflects a more conservative outlook [50][52]. Question: New logo bookings growth expectations for 2025 - Management anticipates weaker growth in new logo bookings for 2025, focusing on partner-led strategies for acquiring new customers [53][55]. Question: Opportunities in the federal vertical - Management expressed excitement about the potential in the federal market, especially with the anticipated FedRAMP High certification [60][61]. Question: Go-to-market strategy for Enterprise TruRisk Management (ETM) - Management emphasized that ETM is a comprehensive solution that enables proactive risk management, with a focus on leveraging partnerships for broader market reach [66][71].