Qualys, Inc. · NASDAQ:QLYS
Qualys — Q4 2021 Earnings Presentation
29 slides from Qualys's earnings presentation, Feb 10, 2022
Slide 1: Investor Presentation
Investor Presentation Security and Compliance for the Digital Transformation Sumedh Thakar, president and CEO Joo Mi Kim, CFO February 10, 2022
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 Industry-leading cloud security and compliance platform Multiple levers of recurring revenue growth Scalable business model and industry- leading profitability Uniquely positioned to capitalize on stack consolidation and move to the cloud 3
Slide 4: Advantages of the Qualys Cloud Platform
Advantages of the Qualys Cloud Platform One view across the entire global hybrid-IT environment, allowing customers to consolidate their stack for better IT, security and compliance visibility Available as a Public or No hardware to Lower Easy to deploy buy or manage operating costs and maintain on-
Slide 5: Securing IT Infrastructure with Qualys
Securing IT Infrastructure with Qualys Continuously Reducing Time to Resolution with Context Global Asset Inventory Risk Mitigation Threat Detection & Response Discover all managed & unmanaged DevOps – Shift Left Anti Malware Protection Hardware and Software Inventory Continuous Vulnerability Detect
Slide 6: Global Visibility Across Hybrid IT Environments
Global Visibility Across Hybrid IT Environments Enabling superior security with scalable, extensible, self-updating & centrally managed platform Active Scanners Cloud Agents 6+ billion 50,000+ 75 million 2+ trillion IP Scans/Audits a Year Scanner appliances Cloud Agents across Security Events collec
Slide 7: Qualys VMDR
Qualys VMDR Bringing Vulnerability Management to the Next Level Identify all known and unknown assets Automatically detect all known and unknown IT assets everywhere for a complete, categorized inventory enriched with details such as vendor lifecycle information and much more. Analyze vulnerabilitie
Slide 8: Qualys Multi-Vector EDR
Qualys Multi-Vector EDR Providing Context Beyond the Endpoints Endpoint Detection & Asset Management Protection Dynamic discovery of endpoints Malware & exploit protection software and hardware inventory Detection & analysis on MITRE Automated deployment of security tools Security incident analysis,
Slide 9: Qualys Context XDR
Qualys Context XDR Complete Context, Enhanced Remediation, Improved Productivity Risk Posture Asset Criticality Continuous vulnerability mapping across the Dynamically tag and prioritize high value entire software catalog – OS and third-party assets in real time applications Qualys Cloud Agent drive
Slide 10: Integrated IT, Security & Compliance Apps
COMPLIANCE IT SECURITY Policy Compliance Vulnerability Management, Detection & Response 20+ Security Configuration Assessment Threat Protection PCI Compliance Continuous Monitoring File Integrity Monitoring Security Assessment Questionnaire Patch Management Integrated IT, Security Multi-Vector Endpo
Slide 11: Cloud Platform Enables Vendor & Stack Consolidation
Cloud Platform Enables Vendor & Stack Consolidation IT Security Compliance Web App Security Asset Management Cloud/Container Security 11
Slide 12: Large Expanding Market Opportunity
Large Expanding Market Opportunity 1.42x Expand $51B $36B $14.0B $9.7B $13.3B $10.2B $9.1B $4.9B $6.8B $4.9B $2.1B $1.7B $4.2B $5.4B CY2022E CY2025E VM & Assessment Compliance IT Asset Management Cloud Security Endpoint Security Security Analytics & Orchestration Source: IDC, Gartner, Qualys estimat
Slide 13: Blue Chip Global Customer Base
Blue Chip Global Customer Base 66% of the Forbes Global 50, 46% of Global 500, and 25% of Global 2000 standardized on Qualys 10,000+ Subscription Customers DAIMLER Note: A customer is defined as any customer with subscription revenue at the measurement date 13
Slide 14: Scalable Go-to-Market Model
Scalable Go-to-Market Model Market segmentation & key strategic partners ENTERPRISE MID-MARKET 2021 REVENUES Large enterprise Small / medium business (Over 5,000 employees) (Up to 5,000 employees) 59% New Existing New Existing Direct customers customers customers customers CHANNEL 41% Indirect 14
Slide 15: Attractive Value Proposition for Partners
Attractive Value Proposition for Partners High-margin recurring revenue with no capex / maintenance costs Cloud Provider Outsourcing Value Added MSSPs Partners Providers Resellers Consultants 15
Slide 16: Strong Organic Revenue Growth
Strong Organic Revenue Growth ($ in millions) 14% CAGR $411 $363 $322 Revenues $279 2018 2019 2020 2021 16
Slide 17: Number of Cloud Agents Sold
New Apps Enabled by Cloud Agents (Units in millions) Number of Cloud Agents Sold 75 70 64 61 LTM LTM LTM LTM Q1 2021 Q2 2021 Q3 2021 Q4 2021 17
Slide 18: Increasing VMDR Penetration
Increasing VMDR Penetration 36% VMDR Customer Penetration (%) 32% 28% 24% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Note: The penetration rate represents the percent of accounts with VMDR divided by total accounts with revenue in the quarter 18
Slide 19: Platform Adoption Driving Higher Customer Spend
Platform Adoption Driving ($ in millions) Higher Customer Spend 20% Growth Aggregate Revenues $151 $125 $105 $81 LTM LTM LTM LTM Q4 2018 Q4 2019 Q4 2020 Q4 2021 Number of 72 94 108 126 Customers Note: Customer count is defined as customers with $500K or more in annual revenue 19
Slide 20: Cloud Platform Enables Scalable Operational Model
Cloud Platform Enables Scalable Operational Model Revenue per % of Customer Support, S&M headcount Operations, and R&D headcount in India $1.4M 79% $1.2M 69% 2018 2021 2018 2021 Leveraging low cost, High sales leverage high talent geos 20
Slide 21: Continued EBITDA Growth
Continued EBITDA Growth ($ in millions) $191 $200 48% $180 $170 46% $160 $138 $140 44% $120 $109 42% $100 40% $80 $60 38% $40 36% $20 $0 34% 2018 2019 2020 2021 Adjusted EBITDA 39% 43% 47% 46% margin Adjusted EBITDA 21
Slide 22: Increasing Free Cash Flow
Increasing Free Cash Flow ($ in millions) $200 $176 44% $180 $150 42% $160 $131 $140 40% $120 $101 $100 38% $80 36% $60 $40 34% $20 $0 32% 2018 2019 2020 2021 Free cash flow 36% 41% 41% 43% margin Free Cash Flow 22
Slide 23: Capital Allocation
Capital Allocation (in millions) Returning Cash to Shareholders via Share Repurchases $140.0 $130 $127 $120.0 $100.0 $85 $86 $80.0 $60.0 $40.0 $20.0 2018 2019 2020 2021 Weighted Average Diluted Shares 41.9 41.3 40.7 40.1 Outstanding Share Repurchase Amount 23
Slide 24: Industry Leading Margins
Industry Leading Margins QLYS 47% 2020 Adjusted EBITDA margin vs. Security select Security and SaaS peers SaaS Peer Median: 13% Source: Nasdaq IR Insight 24
Slide 25: Industry Leading Performance
Industry Leading Performance 2020 Rule of 40 vs. Security select Security and SaaS peers SaaS QLYS 60% Rule of 40 Source: Nasdaq IR Insight Note: 2020 Revenue Growth % + EBITDA Margin % 25
Slide 26: Appendix
Appendix
Slide 27: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ in millions) 2018 2019 2020 2021 Net income $57.3 $69.3 $91.6 $71.0 Depreciation and amortization of property 25.2 25.1 26.6 29.2 and equipment Amortization of intangible assets 3.7 6.1 6.3 6.7 Provision for (benefit from) income taxes (1.8) 10.6 10.5 18.4 Stock
Slide 28: Reconciliation of Non-GAAP Free Cash Flows
Reconciliation of Non-GAAP Free Cash Flows ($ in millions) 2018 2019 2020 2021 GAAP Cash flows provided by operating activities $125.5 $160.6 $180.1 $200.6 Purchases of property and equipment (22.8) (27.6) (29.6) (24.4) Principal payments under finance lease obligations (1.6) (1.7) (0.1) (0.1) Non-G
Slide 29: Revenue by Geographic Area
Revenue by Geographic Area ($ in millions) 2018 2019 2020 2021 United S tates 185.9 206.6 230.4 250.8 % of total revenue 67% 64% 63% 61% F oreign 93.0 115.1 132.5 160.4 % of total revenue 33% 36% 37% 39% Total Revenues $278.9 $321.6 $363.0 $411.2 Note: Amounts may not sum due to rounding. 29