Slide 1: Investor Presentation
Investor Presentation
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 li
Slide 3: Qualys Cloud Platform
Qualys Cloud Platform Provides Continuous View of Global IT Assets and of their Security & Compliance Posture Consolidates 10 enterprise Security & Compliance solutions and more to come… ALL centrally managed, self updating and natively sharing information Drastically reducing infrastructure, operat
Slide 4: Investment Highlights
Investment Highlights Leading SaaS Security and Compliance Solutions Cloud Platform Uniquely Positioned to Capitalize on Move to Cloud and Vendor Consolidation Multiple Levers of Recurring Revenue Growth Industry-Leading Profitability 4
Slide 5: Evolution of Qualys Cloud Platform
Evolution of Qualys Cloud Platform Current Qualys Beginning Additional Solutions Re-architecture Cloud Platform 2006 2006 – 2011 2011 – 2013 2013 – Current Today Qualys Offers 10 Enterprise Security & Compliance Solutions Vulnerability Management Policy Compliance Web Application Security 5
Slide 6: Only Cloud Platform Serving VM, Policy Compliance and Web Security Markets
Only Cloud Platform Serving VM, Policy Compliance and Web Security Markets Highly Scalable Architecture Integrated Suite of Applications 3B Scans Qualys API Reporting & Dashboards Remediation & Workflows 100B Detections Analytics and Reporting Erlang Distributed Correlation ElasticSearch Clusters 1T
Slide 7: Global Infrastructure Currently Processing 3 Billion Scans Annually
Global Infrastructure Currently Processing 3 Billion Scans Annually Millions of Scans per Year 3500 3000 Public Clouds 2500 Private Clouds US and EU 2000 Physical and 1500 Virtual 1000 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 10
Slide 8: More New Solutions Coming
More New Solutions Coming New Solutions will Increase TAM and Potential Share of Wallet Integrated Suite of Applications 2016-2017 Beta Hardware Virtual Cloud Agent Passive API Qualys Cloud Platform 8
Slide 9: Organic Platform Enables Vendor Consolidation
Organic Platform Enables Vendor Consolidation Vulnerability Management Policy Compliance Web Application Security New Services to Come New Services 9
Slide 10: AssetView Brings Visibility Across Millions of IT Assets in Seconds
AssetView Brings Visibility Across Millions of IT Assets in Seconds And Provides Customizable, Dynamic Dashboards Instant Query Vulnerability across million Risk Analysis of IT Assets dashboard Unified Synchronization Assets’ View with Splunk, ServiceNow Dynamic and & Others customizable dashboards
Slide 11: Blue Chip Global Customers Base
Blue Chip Global Customers Base 60% of the Forbes Global 100 and 24% of the Forbes Global 2,000 8,800+ Customers 8 of top 10 in Software 8 of top 10 in Technology 8 of top 10 in Biotechnology DAIMLER 8 of top 10 in Retail 7 of top 10 in Banking 7 of top 10 in Media 6 of top 10 in Telecommunications
Slide 12: Qualys Global Presence
Qualys Global Presence Customers Countries Data Centers Private Clouds Locations 8,800+ 137 4 30 27 * Marked are Qualys locations 12
Slide 13: Large Market Opportunity
Large Market Opportunity Qualys is gaining share Qualys‘s Current Total Addressable Market* $5.3B $0.7B $1.7B Web Security: SaaS $2.8B $0.4B Security Policy and $1.2B Compliance $1.1B Vunerability Assessment: Application $0.6B $1.6B Vunerability Assessment: $0.8B Device CY2014 CY2019E * Qualys’s cur
Slide 14: Global Go-to-Market Strategy and Execution
Global Go-to-Market Strategy and Execution
Slide 15: Platform Enables Service Cost-Effectively to All Customer Segments
Platform Enables Service Cost- Effectively to All Customer Segments ENTERPRISE SME SMB Consultants Enterprise Suite Express Suite Express Lite Suite Consultant Suite 5,000+ 250 – 5,000 Below 250 Consultant Employees Employees Employees Groups 15
Slide 16: Scalable, Global and Balanced Sales Model
Scalable, Global and Balanced Sales Model 2015 Enterprise SMB & SME REVENUES Large Enterprise Small / Medium Business (Over 5,000 employees) (Up to 5,000 employees) Direct 60% New Existing New Existing Customers Customers Customers Customers Channel 40% 16
Slide 17: High-Margin Recurring Revenue with No Capex
High-Margin Recurring Revenue with No Capex Highly Attractive to Partners MSSPs Outsourcing VAS Consultant Telcos Providers Resellers Auditors 17
Slide 18: SaaS Platform Enables Cost-Effective Marketing Through Try and Buy
SaaS Platform Enables Cost-Effective Marketing Through Try and Buy AssetView FreeScan SSL Labs New free service for FreeScan generates Most popular SSL Asset Inventory and 25% of leads inflow Test on the Internet CMDB integrations Free tool to test 250K unique users Connects security drive all Qualy
Slide 19: Financial Highlights and Business Model
Financial Highlights and Business Model
Slide 20: High Visibility Business Model
High Visibility Business Model SaaS Subscription Model Subscription, recurring revenue business No professional services, license or maintenance revenues Billing Model Annual subscriptions, paid in advance Average contract length 1.1 years Billings charged to deferred revenue and amortized over term
Slide 21: Platform Enables Multiple Revenue Growth Drivers
Platform Enables Multiple Revenue Growth Drivers Current Customers Expansion of IP coverage on-premise Expansion of coverage to cloud applications and endpoints Adoption of additional platform products to consolidate vendors New Customers Displacement of legacy point solutions Cloud hosting provider
Slide 22: Strong Organic Revenue Growth
Strong Organic Revenue Growth Outperforming Market and Gaining Share ($M) $164 $134 $108 $91 $95 $77 2012 2013 2014 2015 2015 H1 2016 H1 22
Slide 23: Powerful Land and Expand Model
Powerful Land and Expand Model $45 $40 $35 8,800+ $30 $25 $20 $15 Initial Solution Expansion of Initial Solution Additional Solutions Future Products $10 2009 2010 2011 2012 2013 2014 2015 Revenues ($M) Customers Quarterly Revenues vs. Customers 23
Slide 24: Platform Adoption Increasing
Platform Adoption Increasing % of Enterprise customers with 3+ Qualys products has approximately doubled in the last 3 years Percent of Enterprise Customers with Three or More Qualys Products 21% 17% 13% 11% Q2 FY13 Q2 FY14 Q2 FY15 Q2 FY16 * PCI excluded in the product count for Enterprise customers
Slide 25: Platform Enables Scalable Operational Model
Platform Enables Scalable Operational Model Revenue per % of Customer Support, S&M Headcount Operations, and R&D Headcount in India $1.0M 36% $0.9M 28% $0.8M 15% 2013 2014 2015 2013 2014 2015 High Sales Productivity Leveraging Low Cost Geos 25
Slide 26: Increasing Adjusted EBITDA & Operating Cash Flow
Increasing Adjusted EBITDA & Operating Cash Flow ($M) $66 $57 40.2% 34.5% $41 $32 $32 $34 31.0% 23.7% 33.7% $25 36.4% $22 $17 $14 16.1% 23.9% 23.2% 14.9% 2012 2013 2014 2015 2016 H1 2012 2013 2014 2015 2016 H1 Operating Adjusted Adjusted EBITDA Operating Cash Flow EBITDA Margin (%) Cash Flow Margin
Slide 27: Industry-Leading Margins
Industry-Leading Margins 2015 EBITDA Margin vs. Select Security Peers and SaaS Peers SaaS Qualys 34% Security Peer Avg: (2%) * Source: JPMorgan 27
Slide 28: Qualys Cloud Platform
Qualys Cloud Platform Provides Continuous View of Global IT Assets and of their Security & Compliance Posture Uniquely Positioned to Leverage the Adoption of Cloud Technology and Vendor Consolidation Multiple Levers of Recurring Revenue Growth Large and Growing Customer Base with Increasing Adoption
Slide 29: Appendix
Appendix a sete = | () network WEB APP SECURITY COMPLIAN THREAT ITORING ww) PROTECTION 29
Slide 30: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA $ thousands H1 2016 2015 2014 2013 2012 Q1 ‘16 Q2 ‘16 Net Income 8,321 15,865 30,244 1,541 2,221 4,783 3,538 Other (income) expenses, net (208) 286 634 268 425 (168) (40) Provision for (benefit from) 5,196 8,655 (21,631) 500 358 2,982 2,214 income taxes Depreciation