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 - Revenues grew by 10% to $159.9 million, with channel contributions increasing to 49% of total revenues compared to 45% a year ago [19][20] - Adjusted EBITDA for Q1 was $74.8 million, representing a 47% margin, consistent with the previous year [23] - Free cash flow was $107.6 million, maintaining a 57% margin compared to 57% in the prior year [23] - EPS for Q1 was $1.67, with full-year EPS guidance raised to a range of $6.00 to $6.30, up from the prior range of $5.50 to $5.90 [24][25] Business Line Data and Key Metrics Changes - Patch management and cybersecurity asset management combined 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 solutions [21][22] Market Data and Key Metrics Changes - U.S. and international revenue mix was 57% and 43%, respectively, with international growth outpacing domestic growth [20] - Customers spending $500,000 or more grew by 6% year-over-year to 2,003 [14] 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 solutions [62] - The introduction of the Risk Operations Center (ROC) aims to help organizations manage cyber risks proactively, reducing the chance of breaches [7][10] - The company is expanding its Total AI and TruRisk capabilities to address evolving threats associated with AI technologies [9] Management's Comments on Operating Environment and Future Outlook - Management noted that while cybersecurity remains a priority, there is increased scrutiny on spending and longer decision-making cycles due to macroeconomic uncertainty [28][29] - The company expects revenue growth for the full year 2025 to be in the range of 7% to 8%, with a cautious outlook on new business growth [25][58] Other Important Information - The company has made progress towards achieving FedRAMP high certification, which is expected to fuel growth [16] - The company has repurchased 9.6 million shares since the start of its repurchase program, returning nearly $1.1 billion in cash to shareholders [23] Q&A Session Summary Question: Thoughts on the macro environment and customer spending - Management observed that cybersecurity remains important, but there is more scrutiny on spending and longer decision cycles [28][29] Question: Customer journey with the ROC - The ROC consolidates risk signals from multiple tools, providing actionable insights and remediation plans, which helps customers save time and resources [30][32] Question: Impact of macro challenges on deals - No material deals were pushed or pulled; however, there was some pushback on upsell rates from existing customers [37] Question: Competitive landscape and response to competitors - Management expressed confidence in their approach to vulnerability management, focusing on prioritizing and remediating significant risks rather than just identifying vulnerabilities [40][41] Question: Growth in Total Cloud CNAP and audit readiness - The Total Cloud CNAP is still in early stages but has seen growth, with a focus on helping customers prepare for audits and manage risks effectively [76][79]

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 - International revenue grew 16% compared to 6% growth in the U.S., with a revenue mix of 57% U.S. and 43% international [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, with an emphasis on consolidating security tools and enhancing risk management capabilities [18][62] - Qualys aims to expand 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 and plans to certify additional strategic partners [16][62] 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 scrutinized budget environment [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 continued adoption of cloud-native security solutions [24][25] Other Important Information - The company has repurchased 9.6 million shares since February 2018, returning nearly $1.1 billion to shareholders [23] - Qualys is on track to achieve FedRAMP high certification, which is expected to fuel growth [17] 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][38] 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 [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][80]