Slide 1: Investor presentation
@ Qualys. Investor presentation Securing the digital transformation and helping build a safer world - one app at atime Philippe Courtot, Chairman and CEO Melissa Fisher, CFO July 31s, 2018
Slide 2: Safe harbor
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 lim
Slide 3: Market and Investment Opportunity
Market and Investment Opportunity The Power of the Qualys Cloud Platform | | One stack to consolidate traditional enterprise security/compliance solutions and secure the digital transformation
Slide 4: Investment highlights
Investment highlights Uniquely positioned to capitalize on stack consolidation and move to the cloud Scalable business model and industry-leading profitability Multiple levers of recurring revenue growth Industry-leading Cloud Security and Compliance Platform @ Qualys.
Slide 5: Large expanding market opportunity
Large expanding market opportunity Qualys Cloud Platform the vehicle for TAM expansion seth nea ? . . . . “, . * : 20%Qualys growth” ¢{ CAGR 14% © Cloud Security 8% IT Asset Management 8% m= Web Security: SaaS @ 16% Network and Edge 10% wm Security Policy and Compliance 13% «= Vulnerability Assessme
Slide 6: Blue chip global customer base
Blue chip global customer base 74% of the Forbes Global 50, 46% of Global 500, and 25% of Global 2000 standardized on Qualys 9 of the top 10 in Software 10,300+ Customers es] 8 of the top 10 in Consumer Discretionary LBD ¥ rotomtemargee ally accenture AVAYA NISSAN ecco men + By | 8 of the top 10 in
Slide 7: Scalable go-to-market model
Scalable go-to-market model Market segmentation & key strategic partners ENTERPRISE Large enterprise (Over 5,000 employees) SME & SMB 2017 Small / medium business (Up to 5,000 employees) REVENUES New Existing New Existing Direct customers | customers customers | customers 60% accenture S atst © REC
Slide 8: Attractive value proposition for partners
Attractive value proposition for partners High-margin recurring revenue with no capex VAS Outsourcing resellers providers . ; 7 . verizon” SecureWerks accenture @ copnizan OPTIV captors Pp we sysnet. Vv — ne & A & G = — A HCL fosys RKON = F mesresy atat In | ror LAC EY bai Al PASS — contaot | ear 5
Slide 9: Strong global presence
Strong global presence 10,300+ 130+ 6 68 47 Customers Countries Shared Platforms Private Clouds Locations ® Qualys locations
Slide 10: Qualys Cloud Platform and 2018 Roadmap
Qualys Cloud Platform and 2018 Roadmap
Slide 11: Qualys Cloud Platform
Qualys Cloud Platform Unified approach to detection, orevention & response Integrated Suite of oe CA vM || cm || TP Pc || Pcl loc _— Applications Analytics and “ . ey : . katka ORACLE @ceph elastic SOM redis i coy Reporting Engines % ® cassandra 8 Qik Tenors Distributed © (o) - © & : © e © Hardware
Slide 12: Global visibility across environments enables superior security
Global visibility across environments enables superior security Scalable, self-updating & centrally managed Physical Legacy data centers Corporate infrastructure Continuous security and compliance scanning g Virtual Private cloud infrastructure Virtualized infrastructure Continuous security and comp
Slide 13: Qualys Cloud Platform produces results in one place anytime, anywhere
Qualys Cloud Platform produces results in one place anytime, anywhere Via dynamic and customizable dashboards and centrally managed, self-updating, integrated Cloud Apps ina single-pane-of-glass Uls (AssetView, CloudView, CertView...) 250+ billion Data Points Indexed on Elasticsearch Clusters 1+ tri
Slide 14: Robust pure cloud platform serves as a scalable distribution channel
Robust pure cloud platform serves as a scalable distribution channel Scalable, Micro-services, DevOps @ceph ®ceph cassandra CAs) & elastic & elastic & elastic Qi Is ORACLE ORACLE ORACLE ORACLE VM PC WAS WAF FIM Scanner Service Ni tgs tf a 5 ee a a Agent . Service Reporting Analytics loc Indexing Tag
Slide 15: Qualys Cloud Platform enables vendor and stack consolidation
Qualys Cloud Platform enables vendor and stack consolidation IT Security RAPID) © tenable McAfee SQNetlo. RAPIDF (WZ symantec Otenable’ "A Trustwave" network secu Compliance Monitoring ( fs) RAPIDYF) VERACODE ' @IMPERVA PER Web Application Security Carbon Black. © evident.io &G Twistlock. New Servic
Slide 16: Increasing number of Apps delivered through the Qualys Cloud Platform
Increasing number of Apps delivered through the Qualys Cloud Platform ASSET MANAGEMENT Asset Inventory b ntain full, instant visibility of all your bal IT assets IT SECURITY Vulnerability Management and protect agains! Continuously ¢ attacks, any ndication of Compromise endpoints to COMPLIANCE MONIT
Slide 17: Platforms and integrations
SIEM Tools Ticketing Systems PLATFORMS VULNERABILITY MANAGEMENT COMPLIANCE RUNTIME SECURITY
Slide 18: Additional apps to come
Additional apps to come Q3 2018 Patch Management Cross platform unified patch management to respond quickly to critical vulnerabilities Passive Network Discovery Discover and classify all live devices in your network in real-time Global IT Asset Inventory Discover all IT assets within hybrid environ
Slide 19: Scalable Business Model
Scalable Business Model @ Qualys.
Slide 20: Revenues
Revenues Strong and consistent organic revenue growth Outperforming market and gaining share ($ in millions) ° . 9 ‘ CAGR $231 oo tae $198 . $164 23% $134 """ $133 J i; 2014 2015 2016 2017 Q2 2017 Q2 2018 YTD YTD @ Qualys.
Slide 21: Adoption of new solutions (APPS) fuels growth and profitability
Adoption of new solutions (APPS) fuels growth and profitability Quarterly revenues vs. customers $ millions . 20+ - $100 | 10 apps °** Q2’17 $0 2008 2010 2013 2015 2017 ==" Quarterly revenues —— Customers 20 @ Qualys.
Slide 22: Increasing Cloud Agent Adoption
Increasing Cloud Agent Adoption (Units in millions) Number of Cloud Agents Sold LTM LT™ LT™ LTM Q3 2017 Q4 2017 Q1 2018 Q2 2018 a @ Qualys.
Slide 23: Platform adoption accelerating
Platform adoption accelerating % of Enterprise customers % of Enterprise customers % of Enterprise customers with 2+ solutions with 3+ solutions with 4+ solutions 19% ae - 19% * a 1% 9 1% 4% Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 @ Qualys. nN
Slide 24: Multiplier effect
Multiplier effect Enterprise customers with 4+ solutions spend over 5x that of 1-solution customers ($ in thousands) ett, $300 $274 * 54x * of 1-solution * 3 ". average - 3 $192 $207 *. o @ ¢ $200 > ee = 3 $133 KY a 95 3% $100 $ 2 $49 $51 $50 $52 $0 LTM LTM LTM LTM Q2 FY15 Q2 FY16 Q2 FY17 Q2 FY18 —
Slide 25: Our largest customers spend an average of LTM $1M+ with Qualys
Our largest customers spend an average of LTM $1M+ with Qualys ($ in millions) 61 $80 $68 wn oO 2 $60 oO 3 $ s40 a 4 23 2 $29 $20 i a a $0 LTM LTM LTM LTM Q2 2015 Q2 2016 Q2 2017 Q2 2018 Note: Customer count is defined as customers with greater than $500K in annual revenue 24 60 40 20 Customers
Slide 26: Platform enables scalable operational model
Platform enables scalable operational model Revenue per S&M headcount $1.0M $1.1M ‘St 2M $0.9M | 2014 2015 2016 2017 High sales leverage % of Customer Support, Operations, and R&D headcount in India "58% * 46% 36% ail 2014 2015 2016 2017 Leveraging low cost geos @ Qualys.
Slide 27: 2018 Revenue and Non-GAAP EPS Growth
2018 Revenue and Non-GAAP EPS Growth Quarterly Annual Quarterly Annual Revenues Revenues Non-GAAP EPS Non-GAAP EPS $278.6 $71.2 $230.8 $1.48 $1.09 $68.2 $0.59 $0.38 Actual Guidance Actual Guidance Actual Guidance Actual Guidance Q2 FY18 Midpoint FY17 Midpoint Q2 FY18 Midpoint FY17 Midpoint Q3 FY18 F
Slide 28: 45% 40% 50% 35% 40% 30% 30% 25% 20% 20% 10% 15% 0% 10%
45% 40% 50% 35% 40% 30% 30% 25% 20% 20% 10% 15% 0% 10% 5% -10% 0% -20%
Slide 29: Industry-leading margins
Industry-leading margins Q1 CY2018 EBITDA margin vs. select Security and SaaS peers aLys 38% Peer average: 9% Source: JPMorgan
Slide 30: Industry-leading Performance
Industry-leading Performance Q1 CY2018 Rule of 40 vs. select Security and SaaS peers QLYS Security 60% SaaS Rule of 40 (40%) Source: JPMorgan 29
Slide 31: Unique advantages of the Qualys Cloud Platform
Unique advantages of the Qualys Cloud Platform =s No hardware to oe @ buy or manage Nothing to install or manage, and all services are accessible in the cloud via web interface. Qualys operates and maintains everything () Always Up-to-date Qualys has the largest knowledge base of vulnerability signa
Slide 32: Appendix
Appendix
Slide 33: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ in millions) 2014 2015 2016 2017 @2 2017 Q2 2018 YTD YTD Net income $30.2 $15.9 $19.2 $40.4 $29.1 $19.4 Depreciation and amortization of ns 14.0 16.6 19.8 9.6 12.8 property and equipment Amortization of intangible assets 0.4 0.4 0.4 0.8 0.2 1.5 Interest expense 0
Slide 34: Reconciliation of Non-GAAP Net Income
Reconciliation of Non-GAAP Net Income ($ in millions, except per diluted share metric) GAAP Net income Stock-based compensation Intangible asset amortization (1) Acquisition-related expense (2) Tax adjustment Non-GAAP Net income Non-GAAP Net income per diluted share 2017 oa $40.4 $10.3 27.0 7.0 0.5