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 multiple enterprise security & compliance solutions and more to come… ALL centrally managed, self updating and natively sharing information Drastically reducing infrastructure, ope
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 multiple 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 Indexing Oracle
Slide 7: Global Infrastructure
Global Infrastructure Currently processing 3 billion scans and indexing over 25 billion security 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 20
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 7 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) 22% CAGR $198 $164 $134 $108 15% CAGR $53 $46 2013 2014 2015 2016 Q1 2016 Q1 2017 17
Slide 18: Strong Growth in VM and Other Security Solutions
Strong Growth in VM and Other Security Solutions VM Solutions* Other Security Solutions* Revenues % Year-over-Year Revenue Growth 19% $151 19% 19% $127 14% $107 $90 26% 21% 12% 38% $47 49% $36 $40 42% $37 23% $27 30% $18 $13 $11 2013 2014 2015 2016 Q1 Q1 2013 2014 2015 2016 Q1 Q1 2016 2017 2016 2017
Slide 19: Strong Customer Retention Drives Land and Expand
Strong Customer Retention Drives Land and Expand 2016 Customer Quarterly Revenues vs. Customers Retention (in millions) $55 89% $50 $45 78% $40 9,300+ $35 $30 $25 $20 $15 Enterprise $10 2009 2010 2011 2012 2013 2014 2015 2016 SME & SMB Quarterly Revenues Customers 19
Slide 20: Platform Adoption Accelerating
Platform Adoption Accelerating % of Enterprise customers with 3+ Qualys products has more than doubled in the last 3 years Percent of Enterprise Customers with Three or More Qualys Products 27% 21% 17% 12% Q1 2014 Q1 2015 Q1 2016 Q1 2017 Note: PCI excluded in the product count for Enterprise custome
Slide 21: Multiplier Effect
Multiplier Effect Enterprise customers with 3+ products spend almost 4x 1-Product Customers Almost 4x (in thousands) of 1 $159 Product $160 Average $136 $120 $110 $100 Revenues $80 $40 $36 $40 $42 $42 $0 LTM Q1 2014 LTMQ1 2015 LTM Q1 2016 LTM Q1 2017 Enterprise Customers w/ Enterprise Customers w/ 1
Slide 22: Increasing Number of Customers with Average Spend >$100K
Increasing Number of Customers with Average Spend >$100K (in millions) $140 420 355 379 $120 $109 350 Cumulative Revenues $100 283 $93 242 280 Customers $80 $70 210 $60 $54 140 $40 $20 70 $0 0 LTM Q1 2014 LTM Q1 2015 LTM Q1 2016 LTM Q1 2017 Note: Customer Count is defined as customers with greater t
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 61% $57 35% $41 34% 34% $32 32% $32 $25 37% 40% 34% $17 24% $17 $17 $16 31% 16% 23% 2013 2014 2015 2016 Q1 Q1 2013 2014 2015 2016 Q1 Q1 2016 2017 2016 2017 Adjusted Adjusted EBITDA Operating Operating Cash EBITDA Margin (%) C
Slide 25: Industry-Leading Margins and Scalable Business Model
Industry-Leading Margins and Scalable Business Model Qualys 2016 EBITDA Margin vs. 34% Select Security and SaaS Peers SaaS Security Peer Average: (1%) * Source: JPMorgan 25
Slide 26: Revenue Guidance Range
Revenue Guidance Range (in thousands) Q2 FY17 FY 2017 Revenue Guidance Range $54,300 $55,100 $225,000 $228,000 Y/Y Revenue Growth under US GAAP 12.0% 13.7% 13.7% 15.2% Plus: Estimated Impact of MSSP Contract 2.0% 2.1% 1.5% 1.6% Signed in Feb 2016 Plus: Estimated Foreign Exchange Impact 1.5% 1.5% 1.4
Slide 27: 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 27
Slide 28: Appendix
Appendix ff “NETWORK * security ASSET DISCOVERY. 4 WEB APP SECURITY COMPLIAN' THREAT MONITORING o PROTECTION 28
Slide 29: 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 30: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA (in thousands) 2016 2015 2014 2013 Q1 ‘17 Q1 ‘16 Net Income 19,224 15,865 30,244 1,541 21,930 4,783 Other (income) expenses, net (322) 286 634 268 (453) (168) Provision for (benefit from) 11,205 8,655 (21,631) 500 (13,821) 2,982 income taxes Depreciation and amortiz