Qualys (QLYS) FY Conference Summary Company Overview - **Company**: Qualys (QLYS) - **Date of Conference**: August 12, 2025 - **Key Speakers**: CEO Sumedh Thakkar, CFO Jimmy Kim Key Points Financial Performance - **Growth**: Reported a 10% growth with a 45% EBITDA margin, indicating strong financial health [4][5] - **Net Retention Rate**: Increased from 103% to 104%, reflecting positive customer engagement and renewal rates [5] Market Dynamics - **Macro Environment**: The macroeconomic environment remains stable, with customers taking time to consider larger purchases [4] - **Vulnerability Management Evolution**: The shift towards unified risk management platforms is gaining traction as organizations face overwhelming amounts of vulnerability findings [7][10] Product Development and Strategy - **Unified Platform**: Qualys is transitioning to a unified platform for risk management, integrating vulnerability management, asset management, and patch management [7][10] - **Agentic AI Capabilities**: Introduction of agentic AI to enhance operational efficiency and reduce manual efforts in risk management [20][22] - **Federal Market Focus**: Qualys has achieved FedRAMP High certification, positioning itself to capture growth in the federal sector, which has historically been less than 5% of revenue [35][36] Competitive Landscape - **Consolidation in Security Tools**: Customers are overwhelmed by the number of security tools, leading to a demand for consolidation while maintaining best-of-breed solutions [11][14] - **Partnership Strategy**: Transitioning from a 60/40 direct to partner sales model to a 51/49 mix, emphasizing the importance of partners in scaling the business [39] Future Outlook - **Growth Projections**: Anticipated growth rate for the second half of the year is projected at 5-7%, with a full-year growth expectation of 6-8% [45] - **Investment in R&D**: R&D expenses grew by 15% year-over-year in Q2, reflecting ongoing investment in new products and market strategies [28] Additional Insights - **Talent Acquisition**: The company has successfully leveraged its engineering team in Pune, India, to maintain a competitive edge in talent acquisition and product development [31][32] - **Managed Risk Operations Center (MROC)**: Launched to provide partners with a new offering in risk management, allowing them to generate more service revenue [42][43] Conclusion - Qualys is positioned for continued growth through strategic investments in technology, partnerships, and a focus on federal opportunities, while navigating the complexities of the cybersecurity landscape and evolving customer needs [47][48]