Financial Data and Key Metrics Changes - Revenues grew 10% to $164.1 million, with channel partners contributing 49% of total revenues compared to 46% a year ago [22] - Adjusted EBITDA for Q2 was $73.4 million, representing a 45% margin compared to a 47% margin a year ago [24] - Free cash flow was $32.4 million, representing a 20% margin compared to 33% in the prior year [25] - EPS for Q2 grew 11% to $1.68 [25] Business Line Data and Key Metrics Changes - Patch management and cybersecurity asset management combined made up 16% of total bookings and 26% of new bookings on an LTM basis [24] - Cloud security solutions, Total Cloud SINA, accounted for 5% of LTM bookings [24] Market Data and Key Metrics Changes - 15% growth outside the U.S. was ahead of domestic business growth, which was 7% [23] - The number of customers spending $500,000 or more grew 7% from a year ago to 212 [12] Company Strategy and Development Direction - The company is pioneering a new risk operation center category in cybersecurity, focusing on proactive risk management rather than just detection [7] - The introduction of a fully reimagined agentic AI platform aims to manage cyber risk across multi-vendor environments [8] - The company is expanding its partner ecosystem and driving deep technology integrations to enhance growth [18] Management's Comments on Operating Environment and Future Outlook - The management noted ongoing macroeconomic uncertainty but expressed optimism about improving net dollar expansion rates [31][32] - The guidance for full-year 2025 revenues is expected to be in the range of $656 million to $662 million, representing a growth rate of 8% to 9% [26] - The company plans to continue investing in sales and marketing and engineering to drive long-term growth [28] Other Important Information - The company received FedRAMP High authorization, positioning it as a modern alternative for federal, state, and local agencies [17] - The launch of a new pricing model allows customers to purchase Qualys units, providing access to the entire platform [20] Q&A Session Summary Question: Insights on the macro environment and guidance conservatism - Management indicated that the environment remains stable but challenging, with customers being cautious about spending [31] Question: Performance of mROC messaging - The mROC concept is resonating well with customers, providing a proactive risk management solution that differentiates from traditional offerings [34] Question: Bridging revenue and billings growth - Management noted that current billings could indicate bookings performance, with expectations of 6% to 8% growth for the year [40] Question: Expectations for the federal vertical in Q3 - Management expects FedRAMP High to create opportunities over the next few quarters, although immediate impact is not anticipated [44] Question: Impact of Flex pricing on larger commitments - Early feedback on the new pricing model has been positive, allowing customers to access multiple modules without purchasing additional SKUs [51] Question: Drivers of revenue outperformance - Management attributed revenue outperformance to improved execution and a more conservative guidance framework due to macro uncertainties [58] Question: Improvement in gross retention and net retention - The improvement is attributed to both reduced macro headwinds and effective execution in customer discussions [78]

Financial Data and Key Metrics Changes - Revenues grew 10% to $164.1 million, with channel contributions increasing to 49% of total revenues from 46% a year ago [21][22] - Adjusted EBITDA for Q2 was $73.4 million, representing a 45% margin compared to 47% a year ago [23] - Free cash flow was $32.4 million, representing a 20% margin compared to 33% in the prior year [24] - EPS for Q2 grew 11% to $1.68 [24] Business Line Data and Key Metrics Changes - Patch management and cybersecurity asset management combined accounted for 16% of total bookings and 26% of new bookings on an LTM basis [23] - Cloud security solutions, Total Cloud SINA, made up 5% of LTM bookings [23] Market Data and Key Metrics Changes - International revenue grew by 15%, outpacing domestic growth of 7% [22] - The number of customers spending $500,000 or more grew 7% year-over-year to 212 [12] Company Strategy and Development Direction - Qualys is pioneering a new risk operation center category in cybersecurity, focusing on proactive risk management rather than just detection [6][7] - The company is expanding its ETM solution and introducing identity security management to address the evolving cybersecurity landscape [10][11] - A new flexible pricing model, Qualys units (QLUs), allows customers to access the entire platform and utilize modules of their choice [18] Management's Comments on Operating Environment and Future Outlook - The management noted ongoing macroeconomic uncertainty but expressed optimism about improving net dollar expansion rates, which increased to 104% [32][33] - The company expects revenue growth for the full year 2025 to be in the range of $656 million to $662 million, representing an 8% to 9% growth rate [25][26] - Management emphasized the importance of continued investment in sales and marketing to drive growth and capitalize on market opportunities [27] Other Important Information - Qualys received FedRAMP High authorization, positioning it as a modern alternative for federal, state, and local agencies [16] - The company is focusing on expanding its partner ecosystem to drive growth and enhance its market presence [17] Q&A Session Summary Question: Insights on the macro environment and guidance conservatism - Management acknowledged a stable but challenging environment, with customers being cautious about spending [32] Question: Performance of mROC messaging - Management noted that partners are excited about the proactive risk management capabilities offered by mROC, differentiating it from traditional SOC services [35] Question: Bridging revenue and billings growth - Management indicated that current billings growth is expected to align with revenue growth guidance of 6% to 8% [41] Question: Expectations for the federal vertical post-FedRAMP High - Management expressed optimism about future opportunities in the federal sector, although immediate impacts are not expected [46][48] Question: Impact of Qualys Flex pricing - Management reported positive feedback on the new pricing model, which allows customers to access multiple modules without purchasing additional SKUs [51] Question: Revenue outperformance and guidance - Management attributed revenue outperformance to a more conservative initial guidance due to macro uncertainties, but noted strong execution in the first half of the year [58]

Oracle TodayORCLOracle$215.39 +8.35 (+4.03%) 52-Week Range$118.86▼$216.60Dividend Yield0.93%P/E Ratio49.63Price Target$196.74Add to WatchlistOracle’s NYSE: ORCL stock market has reached a boil. A combination of factors, resulting from years of work positioning the company, including results, guidance, and trends in analysts' sentiment, is driving this market, and it is likely to head higher. Much higher. The technical outlook in late June was bullish. After rebounding from its sharp early-year correction, ...