Slide 1: Investor Presentation
Investor Presentation Melissa Fisher, CFO New York City, December 8th, 2016
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 Move to 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 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 5: 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 and Reporting Distributed Correlation ElasticSearch Clusters 1T Engines Solr Lucene Idexing Oracle & BFFS
Slide 6: 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 million Risk Analysis of IT assets dashboard Unified Synchronization assets’ view with Splunk, ServiceNow Dynamic and & Others customizable dashboards 6
Slide 7: More New Solutions Coming
More New Solutions Coming New solutions will increase TAM and potential share of wallet Integrated Suite of Applications CURRENT TO COME Hardware Virtual Cloud Agent Passive API Qualys Cloud Platform 7
Slide 8: 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 8
Slide 9: Blue Chip Global Customers Base
Blue Chip Global Customers Base 60% of the Forbes Global 100 and 24% of the Forbes Global 2000 9,200+ 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 6
Slide 10: Qualys Global Presence
Qualys Global Presence Expanding our Sales Capacity Customers Countries Data Centers Private Clouds Locations 9,200+ 137 5* 30 27 * Data centers include the one upcoming in India Note: Marked are Qualys locations. 10
Slide 11: Large Market Opportunity
Large Market Opportunity Qualys is gaining share 11% 22% Qualys Growth (1) CAGR $6.1B CAGR $0.8B 1% Other Security $0.7B $3.6B 12% Web Security: SaaS $1.7B $0.8B $0.4B 10% Security Policy and Compliance $1.2B $1.1B Vulnerability Assessment: Application $0.6B 16% $1.6B $0.8B Vulnerability Assessment:
Slide 12: 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 12
Slide 13: Scalable Go-to-Market Model
Scalable Go-to-Market Model Market Segmentation & Key Strategic Partners ENTERPRISE SME & SMB 2015 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% 13
Slide 14: 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 14
Slide 15: Strong Organic Revenue Growth
Strong Organic Revenue Growth Outperforming market and gaining share (in millions) 22% 22% CAGR $164 $146 $134 $120 $108 $91 2012 2013 2014 2015 2015 Q3 2016 Q3 YTD YTD 15
Slide 16: Qualys Solutions Continue to Grow 20%+
Qualys Solutions Continue to Grow 20%+ New VM-related solutions contributing to VM growth % Year-over-Year Revenue Growth VM Solutions* Other Security Solutions* 58% 49% 42% 38% 40% 19% 19% 19% 20% 27% 15% 14% 2012 2013 2014 2015 2015 Q3 2016 Q3 2012 2013 2014 2015 2015 Q3 2016 Q3 YTD YTD YTD YTD %
Slide 17: Powerful Land and Expand Model
Powerful Land and Expand Model Quarterly Revenues vs. Customers (in millions) $55 $50 $45 Current $40 9,200+ $35 $30 Initial Solution $25 $20 Expansion of Initial Solution $15 Additional Solutions $10 2009 2010 2011 2012 2013 2014 2015 2016E* Future Products Quarterly Revenues Customers Note: 2016E
Slide 18: Strong Net Dollar Expansion Rates
Strong Net Dollar Expansion Rates 105% 106% 106% 105% 104% 104% 2012 2013 2014 2015 2015 Q3 2016 Q3 Note: Net dollar expansion rate is calculated by dividing implied monthly recurring revenues at the end of the respective period of customers who were also customers at the end of the one year ago per
Slide 19: Significant Opportunity Remains to Grow Customer Base
Significant Opportunity Remains to Grow Customer Base Qualys Only 3% of Qualys Only 1% of Global Enterprise Market Global SMB & SME Market QLYS QLYS Customers Customers 3% 1% Global Enterprise Company Count Global SMB & SME Company Count 37K 1.4M Note: Global Enterprise Company Count includes compan
Slide 20: Significant Opportunity Remains for Upsell in the Installed Base
Significant Opportunity Remains for Upsell in the Installed Base Customers with subscription to respective Qualys products as of Q3 2016 10,000 9,000 Penetration 8,000 7,000 Customers 70% 6,000 5,000 4,000 3,000 29% 2,000 1,000 8% 0 20
Slide 21: Platform Adoption Increasing
Platform Adoption Increasing % of Enterprise customers with 3+ Qualys products has doubled in the last 3 years Percent of Enterprise Customers with Three or More Qualys Products 23% 20% 18% 15% 12% 9% 2012 2013 2014 2015 2015 Q3 2016 Q3 Note: PCI excluded in the product count for Enterprise customer
Slide 22: Increasing Number of Customers with Average Spend >$100K
Increasing Number of Customers with Average Spend >$100K (in millions) 420 $120 $120,000,000 420 348 $100 350 $100,000,000 350 Cumulative Revenues 277 286 $90 Customers 280 $80 232 247 $80,000,000 280 $76 192 $68 $60 210 $60,000,000 210 $57 $51 $40 140 $40,000,000 140 $41 $20 70 $20,000,000 70 $00 $
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 $1.0M 36% $0.9M 28% $0.8M 15% 2013 2014 2015 2013 2014 2015 High Sales Leverage Leveraging Low Cost Geos 23
Slide 24: Increasing Adjusted EBITDA & Operating Cash Flow
Increasing Adjusted EBITDA & Operating Cash Flow (in millions) $66 $57 $49 $55 40% 34% 34% $41 $32 38% 31% 24% $25 $22 $17 $14 24% 23% 16% 15% 2012 2013 2014 2015 2016 Q3 2012 2013 2014 2015 2016 Q3 YTD YTD Operating Adjusted Adjusted EBITDA Operating Cash Flow EBITDA Margin (%) Cash Flow Margin (%)
Slide 25: Industry-Leading Margins and Scalable Business Model
Industry-Leading Margins and Scalable Business Model SaaS 2015 EBITDA Margin vs. Qualys Select Security Peers and SaaS Peers Security 34% Peer Avg: (2%) * Source: JPMorgan 25
Slide 26: 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 26
Slide 27: Thank You
Thank You mfisher@qualys.com Qualys, Inc. Confidential
Slide 28: Appendix
Appendix |“ NETWORK security . THREAT PROTECTION COMPLIAN MONITORING 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) 9M 2016 2015 2014 2013 2012 Q1 ‘16 Q2 ‘16 Q3 ‘16 Net Income 13,317 15,865 30,244 1,541 2,221 4,783 3,538 4,996 Other (income) expenses, net (438) 286 634 268 425 (168) (40) (230) Provision for (benefit from) 8,417 8,655 (21,631) 500 358 2,982 2,214 3,