Investor Presentation Security and Compliance for the Digital Transformation Sumedh Thakar, President and CEO Joo Mi Kim, CFO November 4, 2025 Safe harbor This presentation includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this presentation include, but are not limited to, the following list: Our expectations and beliefs regarding t ...

Core Insights - Qualys, Inc. reported a revenue growth of 10% year-over-year for Q3 2025, with revenues reaching $169.9 million compared to $153.9 million in Q3 2024 [3][6] - The company raised its revenue guidance for the full year 2025 to a range of $665.8 million to $667.8 million, reflecting a 10% growth over 2024 [12] Financial Performance - **Revenue**: Q3 2025 revenues increased by 10% to $169.9 million from $153.9 million in Q3 2024 [3] - **Gross Profit**: GAAP gross profit rose by 14% to $142.1 million, with a gross margin of 84% in Q3 2025 compared to 81% in Q3 2024 [4] - **Operating Income**: GAAP operating income increased by 33% to $60.0 million, representing 35% of revenues, up from 29% in Q3 2024 [5] - **Net Income**: GAAP net income for Q3 2025 was $50.3 million, or $1.39 per diluted share, a 9% increase from $46.2 million, or $1.24 per diluted share, in Q3 2024 [6] - **Adjusted EBITDA**: Adjusted EBITDA grew by 19% to $82.6 million, accounting for 49% of revenues, compared to 45% in Q3 2024 [7] - **Operating Cash Flow**: Operating cash flow increased by 48% to $90.4 million, representing 53% of revenues [8] Business Highlights - Qualys received FedRAMP High Authorization for its GovCloud Platform, enhancing its ability to support federal agencies [15] - The company launched a marketplace of AI-powered agents to improve cyber risk operations [15] - Qualys was recognized with two Pwnie Awards for its Threat Research Unit, which supports its Enterprise TruRisk Management Platform [15] - The company appointed May Mitchell as Chief Marketing Officer to lead global marketing strategies [15] Future Guidance - **Q4 2025 Guidance**: Expected revenues between $172.0 million and $174.0 million, indicating 8% to 9% growth year-over-year [11] - **Full Year 2025 Guidance**: Revenue guidance raised to $665.8 million to $667.8 million, with GAAP net income per diluted share expected between $5.23 and $5.30 [12]

Core Insights - Qualys' Threat Research Unit (TRU) won two prestigious Pwnie Awards for "Epic Achievement" and "Best Remote Code Execution (RCE)" at DefCon 2025, highlighting its leadership in cybersecurity research and commitment to responsible vulnerability disclosure [1][2] Group 1: Awards and Recognition - The Pwnie Awards recognize extraordinary contributions to identifying and resolving critical vulnerabilities, with Qualys' TRU team being acknowledged for uncovering significant vulnerabilities in OpenSSH [2] - The specific vulnerabilities recognized include CVE-2024-6387, a rare signal handler race condition leading to exploitable heap corruption, and CVE-2025-26465, a machine-in-the-middle attack affecting FreeBSD [5] Group 2: Company Leadership and Strategy - Qualys emphasizes its legacy of groundbreaking vulnerability research, which differentiates it in a competitive market, and aims to provide premium research that enhances security teams' understanding of exploit impacts [2][3] - The TRU team has been nominated for 14 Pwnie Awards over the last five years, winning four, reinforcing Qualys' position as a trusted innovator in securing modern digital infrastructure [2] Group 3: Collaboration and Community Impact - The collaboration with open-source maintainers and the security community was crucial for rapid patches and strengthening security baselines, reflecting a shared commitment to a safer internet [3] - Qualys' approach to responsible disclosure benefits both customers and the broader cybersecurity ecosystem, ensuring effective resolution of vulnerabilities [2][3] Group 4: Company Overview - Qualys, Inc. is a leading provider of cloud-based security, compliance, and IT solutions, serving over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100 [4] - The Qualys Enterprise TruRisk Platform automates vulnerability detection, compliance, and protection across various IT environments, showcasing the company's innovative capabilities [5]

Qualys Enterprise TruRisk Platform - Qualys is transforming its focus to leverage risk analytics for desired business outcomes with the Qualys Enterprise TruRisk Platform[12] - The Qualys Enterprise TruRisk Platform offers comprehensive risk reduction by eliminating cyber risk, saving time, reducing MTTR, and consolidating the IT-security stack[19, 20] - The Qualys Enterprise TruRisk Platform provides a single view across the entire global hybrid-IT environment, consolidating the stack for better security outcomes, with no hardware to buy or manage[30] Market Opportunity and Customer Base - Qualys estimates its current total addressable market at $55 billion in CY2025E, expanding to $79 billion in CY2028E[34] - Qualys has a blue-chip global customer base, including over 10,000 subscription customers[36] - Qualys serves 72% of the Forbes Global 50, 55% of the Forbes Global 500, and 33% of the Forbes Global 2000[36] Financial Performance - Qualys' revenues grew from $490 million in 2022 to $608 million in 2024, with a 11% CAGR[44] - Adjusted EBITDA increased from $219 million in 2022 to $283 million in 2024, representing a 14% CAGR[44] - The Adjusted EBITDA margin was 47% in 2024[44] - Free cash flow was $232 million in 2024, with a free cash flow margin of 38%[49]

Core Insights - Qualys, Inc. will report its financial results for Q2 2025 on August 5, 2025, after market close [1] - A conference call and live webcast will be held on the same day at 5:00 p.m. Eastern Time to discuss the financial results [2] Company Overview - Qualys is a leading provider of cloud-based security, compliance, and IT solutions with over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100 [3] - The company offers a platform that automates security and compliance solutions, aiming for improved agility, business outcomes, and cost savings [3] Product Offering - The Qualys Enterprise TruRisk Platform utilizes a single agent for continuous security intelligence and automates vulnerability detection, compliance, and protection across various IT environments [4] - Qualys has established strategic partnerships with major cloud service providers like Amazon Web Services, Google Cloud Platform, and Microsoft Azure, enhancing its vulnerability management capabilities [4]

Core Insights - Qualys, Inc. has opened a new office in Washington, D.C. to expand its support for the growing public sector customer base amid escalating cyber threats and the need for operational efficiency [1][4][5] Industry Context - Government agencies are currently facing challenges such as shrinking budgets, limited resources, and an increasing frequency and sophistication of cyberattacks, which heightens the pressure on teams responsible for protecting sensitive data and critical infrastructure [2] Company Strategy - To address these challenges, public sector organizations are transitioning from reactive defense to proactive risk management, with Qualys leading this shift through the introduction of the Risk Operations Center (ROC) model. This model allows agencies to unify visibility, prioritize significant threats, and automate responses, thereby enhancing cyber resilience and operational efficiency [3] Commitment to Public Sector - The expansion of Qualys' operations is a continuation of its commitment to serving public sector agencies, as evidenced by its support for numerous federal entities and its progress towards achieving FedRAMP High Authorization for its cloud platform, which aligns with the stringent security and compliance requirements of government customers [4] Leadership Perspective - The CEO of Qualys emphasized that the new office represents a strategic investment in the federal space, aiming to provide public sector agencies with efficient and powerful solutions to mitigate cyber risks [5] Product Offering - Qualys offers the Enterprise TruRisk Platform, which utilizes a single agent to deliver critical security intelligence and automate vulnerability detection, compliance, and protection across various IT environments, including on-premises, cloud, and mobile devices [6]

Qualys Enterprise TruRisk Platform - Qualys is transforming its focus to deliver desired business outcomes leveraging risk analytics with the Qualys Enterprise TruRisk Platform[10, 12] - The Qualys Enterprise TruRisk Platform offers comprehensive risk reduction by eliminating cyber risk, saving time, reducing MTTR, and consolidating the IT-security stack[20, 21] - The platform provides one view across the entire global hybrid-IT environment, allowing customers to consolidate their stack for better security outcomes, with no hardware to buy or manage[31] Market Opportunity and Customer Base - Qualys estimates its current total addressable market at $55 billion in CY2025E, expanding to $79 billion in CY2028E[35] - Qualys has a blue-chip global customer base of over 10,000 subscription customers[37] - 72% of the Forbes Global 50, 55% of the Forbes Global 500, and 33% of the Forbes Global 2000 are Qualys' subscription customers[37] Financial Performance - Qualys' 2024 revenues reached $608 million, with an adjusted EBITDA of $283 million, representing a 47% adjusted EBITDA margin[45] - The company's Q1 2025 revenues were $160 million, with an adjusted EBITDA of $75 million, maintaining a 47% adjusted EBITDA margin[45] - Qualys generated $232 million in free cash flow in 2024[50] - The company's adjusted EBITDA margin of 47% in 2024 is higher than the peer median of 25% for select security and SaaS companies[53]

Core Insights - Qualys, Inc. has become the Major Partner and official Cybersecurity Partner of the San Francisco Unicorns for the 2025 Cognizant Major League Cricket season, highlighting its commitment to community engagement and support for local sporting events [1][3][5] Group 1: Partnership Details - The partnership includes the Qualys logo prominently displayed on the Unicorns' matchday and training jerseys, as well as branding opportunities across various media assets [4] - Qualys aims to reflect its values of innovation and determination through this partnership, aligning with the Unicorns' mission to promote cricket in the U.S. [3][5] Group 2: Team and Event Information - The San Francisco Unicorns debuted in Major League Cricket in 2023 and are set to play their first three games of the 2025 season at the Oakland Coliseum, starting with a match against Washington Freedom on June 12 [6][9] - The team features top international cricket talents, including Cooper Connolly, Jake Fraser-McGurk, and Matt Short, promising exciting performances for fans [3][9] Group 3: Company Overview - Qualys, Inc. is a leading provider of cloud-based security, compliance, and IT solutions, serving over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100 [10] - The company specializes in automating security and compliance solutions, offering significant cost savings and improved business outcomes for organizations [10][11]