Qualys(US:QLYS)2025-02-06 23:00Financial Data and Key Metrics Changes - For the full year 2024, the company reported revenue growth of 10% to $607.6 million, with adjusted EBITDA margin at 47% and net income increasing by 16% to $229 million, resulting in an EPS of $6.13 [21][22]. - In Q4 2024, revenues also grew by 10% to $159.2 million, with free cash flow reaching $41.9 million, representing a 26% margin compared to 22% in the prior year [22][25]. Business Line Data and Key Metrics Changes - Cloud management and cybersecurity asset management combined accounted for 15% of total bookings and 24% of new bookings in 2024 [24]. - The channel contributed 48% of total revenues in Q4, up from 44% a year ago, with revenues from channel partners growing by 18% compared to a 3% growth in direct revenues [22][23]. Market Data and Key Metrics Changes - International revenue growth was 15%, outpacing domestic growth of 7%, with the U.S. and international revenue mix at 58% and 42%, respectively [22][23]. - The company anticipates a stable selling environment in 2025, with ongoing budget scrutiny expected to persist [23]. Company Strategy and Development Direction - The company is focusing on evolving its platform to provide a comprehensive risk analytics and quantification solution, enhancing its strategic relevance and market opportunity [6][8]. - The introduction of the Enterprise TruRisk Management solution aims to set a new standard in proactive cyber risk management, allowing customers to operationalize a modern risk operations center [10][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's market position and growth opportunities, emphasizing the importance of continuous innovation and delivering value to customers [19][20]. - The company expects revenue growth in 2025 to be in the range of $645 million to $657 million, representing a growth rate of 6% to 8% [26][27]. Other Important Information - The company announced a $200 million increase to its share repurchase program, bringing the total available amount for share repurchases to $343.4 million [26]. - The departure of the Chief Revenue Officer is noted, with plans to oversee the sales organization and continue focusing on a partner-first strategy [18][39]. Q&A Session Summary Question: Thoughts on creative packaging opportunities for products - Management indicated that they are exploring feedback from early adopters to enhance broader platform adoption and pricing strategies [31]. Question: Plans for balancing time and hiring key leaders after CRO departure - Management reassured that the sales leadership team is strong and capable, with a focus on execution and partner-oriented strategies [32][34]. Question: Changes expected in sales motion post-CRO departure - Management highlighted a focus on executing sales growth with a strong sales head group and leveraging partnerships for new business [38][39]. Question: Early customer feedback on TotalAI and competitive dynamics - Management noted positive early feedback on TotalAI, emphasizing its unique capability to secure AI workloads and the growing interest from customers [40][44]. Question: Performance in Q4 relative to guidance and expectations - Management explained that better linearity in renewals and invoicing cycles contributed to stronger Q4 performance, while Q1 guidance reflects a more conservative outlook [50][52]. Question: New logo bookings growth expectations for 2025 - Management anticipates weaker growth in new logo bookings for 2025, focusing on partner-led strategies for acquiring new customers [53][55]. Question: Opportunities in the federal vertical - Management expressed excitement about the potential in the federal market, especially with the anticipated FedRAMP High certification [60][61]. Question: Go-to-market strategy for Enterprise TruRisk Management (ETM) - Management emphasized that ETM is a comprehensive solution that enables proactive risk management, with a focus on leveraging partnerships for broader market reach [66][71].