Slide 1: Investor Presentation
Investor Presentation Philippe Courtot, Chairman and CEO Melissa Fisher, CFO
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: Investment Highlights
Investment Highlights Leading SaaS Security and Compliance Solutions Cloud Platform Uniquely Positioned to Capitalize on the Move to the Cloud and Stack Consolidation Multiple Levers of Recurring Revenue Growth Industry-Leading Profitability 3
Slide 4: Qualys Cloud Platform
Qualys Cloud Platform Provides continuous view of global IT assets and 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, operatio
Slide 5: Qualys: The Next-Gen Security Platform
Qualys: The Next-Gen Security Platform Next-Gen Next-Gen Next-Gen Next-Gen Public Cloud Incumbents Public Cloud Infrastructure Applications Infrastructure Applications * Source: Morgan Stanley 5
Slide 6: True Extensible Cloud Platform
True Extensible Cloud Platform Consolidates 10+ on-premise solutions Integrated Suite of Applications 3B Scans Qualys API Reporting & Dashboards Remediation & Workflows 100B Detections Analytics 1T and Distributed Correlation ElasticSearch Clusters Reporting Engines Solr Lucene Idexing Oracle & BFFS
Slide 7: Global Infrastructure
Global Infrastructure Currently processing 3 billion scans and indexing 9 billion data points Millions of Scans per Year 3,500 3,000 Public Clouds 2,500 Private Clouds US and EU 2,000 Physical and 1,500 Virtual 1,000 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 7
Slide 8: AssetView brings 2s visibility across millions of IT assets
AssetView brings 2s visibility across millions of IT assets Provides customizable, dynamic dashboards Instant query Vulnerability across millions Risk Analysis of IT assets dashboard Unified Synchronization assets’ view with Splunk, ServiceNow Dynamic and & others customizable dashboards 8
Slide 9: More new solutions coming
More new solutions coming New solutions will increase TAM and potential share of wallet Integrated Suite of Applications CURRENT 2017 RELEASES Hardware Virtual Cloud Agent Passive API Qualys Cloud Platform 9
Slide 10: Organic platform enables vendor and stack consolidation
Organic platform enables vendor and stack consolidation Vulnerability Management Policy Compliance Web Application Security New services to come New Services 10
Slide 11: Blue Chip Global Customers Base
Blue Chip Global Customers Base 70% of the Forbes Global 50 and 25% of the Forbes Global 2000 standardized on Qualys 9,300+ Customers 9 of top 10 in Major Banks 9 of top 10 in Software 8 of top 10 in Consumer Discretionary DAIMLER 8 of top 10 in Consumer Staples 8 of top 10 in Technology 6 of top 10
Slide 12: Qualys Global Presence
Qualys Global Presence Expanding our sales capacity Customers Countries Data Centers Private Clouds Locations 9,300+ 137 5 30 27 Note: Marked are Qualys locations. 12
Slide 13: Large Market Opportunity
Large Market Opportunity Qualys has taken the #1 market-share position over IBM and HP in the $1.6-billion-dollar Vulnerability Assessment Market 20% Qualys Growth (1) 12% CAGR CAGR $7.0B 1% Other Security $0.8B $0.8B 8% Web Security: SaaS $4.0B $1.9B 10% Security Policy and Compliance $0.8B $0.5B $
Slide 14: Platform enables cost-effective service to all customer segments
Platform enables cost-effective service 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 14
Slide 15: Scalable Go-to-Market Model
Scalable Go-to-Market Model Market Segmentation & Key Strategic Partners ENTERPRISE SME & SMB 2016 REVENUES Large Enterprise Small / Medium Business (Over 5,000 employees) (Up to 5,000 employees) Direct 58% New Existing New Existing Customers Customers Customers Customers Channel 42% 15
Slide 16: Attractive High-Margin Recurring Revenue with No Capex for Partners
Attractive High-Margin Recurring Revenue with No Capex for Partners MSSPs Outsourcing VAS Consultant Telcos Providers Resellers Auditors 16
Slide 17: Strong and Consistent Organic Revenue Growth
Strong and Consistent Organic Revenue Growth Outperforming market and gaining share (in millions) $198 22% CAGR $164 $134 $108 2013 2014 2015 2016 17 17
Slide 18: Strong Growth in VM and Other Security Solutions
Strong Growth in VM and Other Security Solutions VM Solutions* Other Security Solutions* % Year-over-Year Revenue Growth % Year-over-Year Revenue Growth 49% 42% 38% 19% 19% 19% 26% 14% 2013 2014 2015 2016 2013 2014 2015 2016 % share 83% 80% 77% 76% 17% 20% 23% 24% of total revenues *VM Solutions inc
Slide 19: Powerful Land and Expand Model
Powerful Land and Expand Model Quarterly Revenues vs. Customers (in millions) $55 $50 $45 $40 Current $35 9,300+ $30 Initial Solution $25 $20 Expansion of Initial Solution $15 Additional Solutions $10 2009 2010 2011 2012 2013 2014 2015 2016 Future Products Quarterly Revenues Customers 19
Slide 20: Platform Adoption Accelerating
Platform Adoption Accelerating % of Enterprise customers with 3+ Qualys products has tripled in the last 3 years Percent of Enterprise Customers with Three or More Qualys Products 26% 20% 16% 12% Q4 2013 Q4 2014 Q4 2015 Q4 2016 Note: PCI excluded in the product count for Enterprise customers because
Slide 21: Multiplier Effect
Multiplier Effect Enterprise customers with 3+ products spend more than 3x 1-Product Customers (in thousands) $160 2016: Over 3x $144 of 1 Product Average $123 $120 $105 $100 $91 $91 $86 Revenues $80 $70 $40 $37 $41 $43 $37 $0 2013 2014 2015 2016 Enterprise Customers w/ Enterprise Customers w/ Enter
Slide 22: Increasing Number of Customers with Average Spend >$100K
Increasing Number of Customers with Average Spend >$100K (in millions) $120 420 367 331 $100 350 Cumulative Revenues $103 264 $80 280 Customers 222 $83 $60 210 $63 $40 $48 140 $20 70 $0 0 2013 2014 2015 2016 Note: Customer Count is defined as customers with greater than $100K average spend in the gi
Slide 23: 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 $1.1M 46% $1.0M $0.9M 36% $0.8M 28% 15% 2013 2014 2015 2016 2013 2014 2015 2016 High Sales Leverage Leveraging Low Cost Geos 23
Slide 24: Increasing Adjusted EBITDA & Operating Cash Flow
Increasing Adjusted EBITDA (in millions) & Operating Cash Flow $68 $66 $68 $57 34% $41 34% 40% $32 34% $25 $17 24% 31% 16% 23% 2013 2014 2015 2016 2013 2014 2015 2016 Adjusted Adjusted EBITDA Operating Operating Cash EBITDA Margin (%) Cash Flow Flow Margin (%) 24
Slide 25: Industry-Leading Margins and Scalable Business Model
Industry-Leading Margins and Scalable Business Model SaaS 2015 EBITDA Margin vs. Qualys Security Select Security Peers and SaaS Peers 34% FY16 FY15 Peer Avg: (2%) * Source: JPMorgan 25
Slide 26: MSSP Contract
MSSP Contract • Signed in Q1 FY16; consolidates hundreds of MSSP’s customers previously billed annually to 1 invoice paid quarterly • Estimated revenue impact • 2016: $3.2 million of estimated one-time bump to revenues • 2017: $0.7 million of estimated one-time bump to revenues • Estimated current d
Slide 27: Revenue Guidance Range
Revenue Guidance Range (in thousands) Q1 FY17 FY 2017 Revenue Guidance Range $52,000 $53,000 $224,000 $228,000 Y/Y Revenue Change under US GAAP 12.4% 14.6% 13.2% 15.2% Less: Estimated Impact of MSSP Contract (2.1%) (2.2%) (1.5%) (1.6%) Signed in Feb 2016 Less: Estimated Foreign Exchange Impact (1.1%
Slide 28: Summary
Summary Leading SaaS security and compliance solutions cloud platform Uniquely positioned to leverage the adoption of cloud technology and stack consolidation Multiple drivers of recurring revenue growth Scalable profitable business model with industry-leading margins 28
Slide 29: Appendix
Appendix ff “NETWORK * security ASSET DISCOVERY. 4 WEB APP SECURITY COMPLIAN' THREAT MONITORING o PROTECTION 29
Slide 30: Qualys Integrated Cloud Suite
Qualys Integrated Cloud Suite Web Vulnerability PCI Application Management Compliance Scanning Web Continuous Policy Application Monitoring Compliance Firewall Security Certification: AssetView Assessment SSL Scanning Questionnaire File Integrity ThreatPROTECT Passive Scanning Monitoring Indication
Slide 31: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA (in thousands) 2016 2015 2014 2013 Q1 ‘16 Q2 ‘16 Q3 ‘16 Q4 ‘16 Net Income 19,224 15,865 30,244 1,541 4,783 3,538 4,996 5,907 Other (income) expenses, net (322) 286 634 268 (168) (40) (230) 116 Provision for (benefit from) 11,205 8,655 (21,631) 500 2,982 2,214 3,221