Slide 1: Investor presentation
@ Qualys. Investor presentation Philippe Courtot, Chairman and CEO Melissa Fisher, CFO August 24, 2017
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: 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 Scalable business model and industry-leading profitability @ Qualys.
Slide 4: Qualys Cloud Platform
Qualys Cloud Platform Delivers 2-second visibility across all global IT assets and the continuous view of their security & compliance posture Consolidates multiple enterprise security & compliance solutions and more to come... All centrally managed, self updating and natively sharing information Dra
Slide 5: Qualys Cloud Platform
Qualys Cloud Platform A new unified approach to prevention and response 2-second visibility across all of your global IT assets (on premise, endpoints and cloud assets) Continuous assessment of your global security & compliance posture Identify compromised assets Consolidate all your security and co
Slide 6: Qualys: A Next-gen Security and Compliance Platform
Qualys: A Next-gen Security and Compliance Platform Next-gen public cloud infrastructure mous amazon webservices BE Microsoft Google Cloud Platform Cc Alibaba Cloud allyun.com Source: Morgan Stanley Next-gen infrastructure Incumbents APPDYNAMICS Geamai cloudera cocker 3 bme © FireEye otftetlie (©) M
Slide 7: Available as a Public or on-premises Private Cloud
Available as a Public or on-premises Private Cloud
Slide 8: See the results in one place anytime, anywhere
See the results in one place anytime, anywhere Via dynamic and customizable dashboards and centrally managed, self-updating, integrated Cloud Apps ina single-pane-of-glass Uls (AssetView, CloudView, CertView...) 28+ billion Data Points Indexed on Elasticsearch Clusters 1+ trillion Security Events 99
Slide 9: Qualys Cloud Platform Apps
Qualys Cloud Platform Apps ASSET MANAGEMENT Asset Inventory instant visibility of all your Cloud Inventory (Beta) Inventory of all your cloud assets across AWS, Azure, GCP and others Certificate Inventory (Beta in Sep) Inventory of TLS/SSL d 1 certificates on a global scale IT SECURITY Vulnerability
Slide 10: Qualys Cloud Platform enables vendor and stack consolidation
Qualys Cloud Platform enables vendor and stack consolidation IT Security RAPIDI tenable Compliance Monitorin McAfee SaNetio. RAPID = symantec g tenable "A Trustwave’ Web Application Security JfS¥r me New services in the making CARBON . BI K @ evident.io <®FireEye New Services ~ ae o Forescour ~@TANI
Slide 11: Blue chip global customer base
Blue chip global customer base 70% of the Forbes Global 50 and 25% of the Forbes Global 2000 standardized on Qualys F) 9 of the top 10 in Major Banks 9,300+ Customers 9 of the top 10 in Software LD 2 rojtontectwotosies ally accenture es] 8 of the top 10 in Consumer Discretionary avaya () Bayer seein
Slide 12: Strong global presence
Strong global presence 9,300+ 120+ 5 40 27 Customers Countries Data Centers Private Cloud Locations © Marked are Qualys locations 12 @ Qualys.
Slide 13: Large market opportunity
Large market opportunity Qualys has taken the #1 market-share position over IBM and HP in the $1.6B Vulnerability Assessment Market werent, . : 20% Qualys growth® ¢ CAGR 1% © Other Security 8% Web Security: SaaS 10% #® Security Policy and Compliance 22% ® Vulnerability Assessment: App 13% ®™ Vulnera
Slide 14: Scalable go-to-market model
Scalable go-to-market model Market segmentation & key strategic partners ENTERPRISE Large enterprise (Over 5,000 employees) SME & SMB Small / medium business (Up to 5,000 employees) New Existing customers | customers New Existing customers | customers ©) CH Hewlett Packard Computacenter Enterprise r
Slide 15: Attractive value proposition for partners
Attractive value proposition for partners High-margin recurring revenue with no capex Consultant Outsourcing VAS auditors providers resellers ) _-- . Vv . > y verizon” SecureWerks accenture @ coerizan OPTIV — conputacnter pwe sysnet. —) © Hewlett Packard 4 A = 7 Ener et HCL Infosys 44 & vac bai COMP
Slide 16: Strong and consistent organic revenue growth
Strong and consistent organic revenue growth Outperforming market and gaining share ($ in millions) eet nny +" 22% *,, CAGR oe. — cree $198 "18% 0°07 3 $164 * Normalized* ," 5 $134 re > o $108 2 - $95 $108 2013 2014 2015 2016 @22016 @22017 YTD YTD “Normalized for MSSP and FX 16 @ Qualys.
Slide 17: Strong growth in VM and Other Security Solutions
Strong growth in VM and Other Security Solutions ($ in millions) VM Solutions* | | Revenues 19% 9 4% S107 $127 21% 1% i i i "TL 2013 2014 2015 2016 2016 2017 YTD YTD Other Security Solutions* — % Year-over-year revenue growth 49% 38% 76% ; 42% a $47 | 29% 23% $18 $27 alae 7 2013 2014 2015 2016 2016
Slide 18: Strong customer retention drives land and expand
Strong customer retention drives land and expand ($ in millions) Quarterly revenues vs. customers $60 $50 a 40 $30 @ Initial solution $20 sw Expansion of initial solution a $10 s Additional solutions 2010 2012 2014 2016 Future products =——= Quarterly revenues === Customers 18 @ Qualys.
Slide 19: Platform adoption accelerating
Platform adoption accelerating % of Enterprise customers with 3+ Qualys products has more than doubled in the last 3 years Percent of Enterprise customers with 3 or more Qualys solutions : 28% ° 22% 18% : 7 Q2 2014 Q2 2015 Q2 2016 Q2 2017 Note: PCI excluded in the product count for Enterprise custom
Slide 20: Multiplier effect
Multiplier effect Enterprise customers with 3+ products spend 4x 1-product customers ($ in thousands) $175 . me $140 ~ 4x °: o> $150 . : ZE ¢i05 $111 - of 1-product : go § $102 - average g 3 $100 _ a Ds $75 vere >o L ° $50 : : $25 $37 $41 $42 $41 $0 LTM LTM LTM LTM Q2 2014 Q2 2015 Q2 2016 Q2 2017 —E
Slide 21: Increasing number of customers with annual revenue >$500K
Increasing number of customers with annual revenue >$500K ($ in millions) $60 45 45 40 a 50 ¢ $ 31 $44 35 o $40 30 5 > 24 g $30 2s § g $30 20 2 3S $20 15 é $10 als {0 = $0 fe) LTM LTM LTM LTM Q2 2014 Q2 2015 Q2 2016 Q2 2017 Note: Customer count is defined as customers with greater than $500K in annu
Slide 22: Platform enables scalable operational model
Platform enables scalable operational model Revenue per S&M headcount . . : $11M - $1.0M il | . 2013 2014 2015 2016 High sales leverage 22 % of Customer Support, Operations, and R&D headcount in India - . » 46% | 36% 28% 15% 2013 2014 2015 2016 Leveraging low cost geos @ Qualys.
Slide 23: Increasing adjusted EBITDA & operating cash flow
Increasing adjusted EBITDA & operating cash flow ($ in millions) $68 $66 $68; 2013 2014 2015 2016 Q2 Q2 2013 2014 2015 2016 Q2 Q2 2016 2017 2016 2017 YTD YTD YTD YTD 5 Adjusted __ Adjusted EBITDA 1 Operating — Operating cash EBITDA margin (%) cash flow flow margin (%) 23 @ Qualys.
Slide 24: Industry-leading margins and scalable business model
Industry-leading margins and scalable business model 2016 EBITDA margin vs. select Security and SaaS peers al | | Source: JPMorgan 24 @ Qualys.
Slide 25: Revenue guidance range
Revenue guidance range ($ in thousands) Q3 FY17 FY 2017 Revenue guidance range $58,200 $58,900 $226,800 $228,300 Wy cevenue growth under 14.1% 15.5% 14.6% 15.3% Plus: estimated impact of MSSP contract signed in 1.5% 1.5% 1.6% 1.6% Feb 2016 Plus: estimated foreign exchange impact 11% 11% 11% 11% Esti
Slide 26: Summary
Summary Leading SaaS security and compliance solutions cloud platform Uniquely positioned to capitalize on the move to the cloud and stack consolidation Multiple levers of recurring revenue growth Scalable business model and industry-leading profitability 26 . Infrastructure \ Security Endpoint Secu
Slide 27: Appendix
Appendix \ Infrastructure Security Endpoint Security Cloud Security Compliance oo | 27 @ Qualys.
Slide 28: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA ($ in thousands) Net income Other (income) expenses, net Provision for (benefit from) income taxes Depreciation and amortization of property and equipment Amortization of intangible assets Stock based compensation One-time tax related expense Adjusted EBITDA 2016 20
Slide 29: Reconciliation of revenues
Reconciliation of revenues ($ in thousands) Revenues Y/Y revenue growth under US GAAP Plus: impact of MSSP contract signed in Feb 2016 Plus: foreign exchange impact Normalized revenue growth 29 Q2 2017 YTD $108,423 14.5% 2.1% 1.3% 17.9%