Qualys (QLYS) FY Conference June 03, 2025 10:20 AM ET Speaker0 Stock conference. Today's session is going to be with Qualys. My name is Jonathan Ho, and I'm the analyst for William Blair and Company. With us today are Sumit Dakar, the CEO, and Jume Kim, the CFO of the company. Before we begin, I'm required to inform you that a complete list of research disclosures is available as well as conflicts of interest at our website at www.williamblair.com. We'll have the company present an overview of the business ...

Group 1: Cybersecurity Industry Overview - Cybercrime has become a multi-trillion dollar issue, with its scope reportedly tripling over the past decade, making cybersecurity spending essential for businesses despite economic uncertainties [1] - The cybersecurity industry is expected to remain resilient as businesses prioritize protection against financial and reputational damage from breaches [13] Group 2: Company Profile - Tenable - Tenable is a leader in vulnerability management, focusing on proactive cybersecurity to help businesses address network weaknesses before exploitation [2] - The company has a market capitalization of approximately $3.7 billion, positioning it as one of the more affordable stocks in the cybersecurity sector [3] Group 3: Product Portfolio and Innovation - Tenable's Nessus platform is the most widely deployed vulnerability assessment solution, capable of identifying over 99,000 vulnerabilities with high accuracy and low false positive rates [5] - The launch of the Tenable One platform in 2022 integrates various cybersecurity products into a comprehensive exposure management solution, leveraging AI for vulnerability identification and risk assessment [6][7] Group 4: Financial Performance - In the first quarter of 2025, Tenable reported revenue of $239.1 million, an 11% increase year-over-year, surpassing management's forecast of $233 million [9] - Non-GAAP earnings per share for the quarter were $0.36, reflecting a 44% growth compared to the previous year, although the company reported a GAAP loss of $22.9 million due to stock-based compensation and acquisition costs [10][11] Group 5: Future Outlook and Market Potential - Management has slightly revised down its full-year revenue estimate from $976 million to $975 million and adjusted non-GAAP earnings-per-share guidance from $1.56 to $1.48 [12] - Tenable's stock is trading at a price-to-sales ratio of 4, making it cheaper than many peers, despite slower revenue growth compared to competitors like CrowdStrike [14][16] - The company is experiencing increased success in acquiring high-value customers, with plans to launch a new version of Tenable One that could enhance its market position [17] - Tenable has significant growth potential within its estimated $33 billion addressable market, particularly with the Tenable One platform attracting higher-spending clients [18]