2023 Revenue Growth of 13%
Year-Over-Year
Q4 Revenue Growth of 10%
Year-Over-Year
2023 GAAP EPS: $4.03; Non-GAAP EPS: $5.27
Q4 GAAP EPS: $1.08; Q4 Non-GAAP EPS: $1.40
Announces $200
Million Increase to Share Repurchase Program
FOSTER
CITY, Calif., Feb. 7, 2024
/PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading
provider of disruptive cloud-based IT, security and compliance
solutions, today announced financial results for the fourth quarter
ended December 31, 2023. For the quarter, the Company reported
revenues of $144.6 million, net
income under United States Generally Accepted Accounting Principles
("GAAP") of $40.6 million, non-GAAP
net income of $52.8 million, Adjusted
EBITDA of $65.8 million, GAAP net
income per diluted share of $1.08,
and non-GAAP net income per diluted share of $1.40.
"In 2023, we continued to execute against our strategic vision
of helping organizations consolidate security tools on a natively
integrated platform to measure, communicate, and eliminate cyber
risk," said Sumedh Thakar, president
and CEO of Qualys. "Our financial results, growing scale, and
increased module adoption demonstrate customers are starting to
leverage the breadth and depth of the Qualys Enterprise TruRisk
Platform to transform their security stack for transparent risk
assessment, measurable business results, and lower TCO. Looking
ahead, we believe we're well positioned as the fundamental risk
management platform for the future and remain committed to further
advancing our position in the market with a balanced approach to
growth and profitability."
Fourth Quarter 2023 Financial Highlights
Revenues: Revenues for the fourth quarter of 2023
increased by 10% to $144.6 million
compared to $130.8 million for the
same quarter in 2022.
Gross Profit: GAAP gross profit for the fourth
quarter of 2023 increased by 14% to $117.4
million compared to $103.1
million for the same quarter in 2022. GAAP gross margin was
81% for the fourth quarter of 2023 compared to 79% for the same
quarter in 2022. Non-GAAP gross profit for the fourth quarter of
2023 increased by 14% to $120.2
million compared to $105.7
million for the same quarter in 2022. Non-GAAP gross margin
was 83% for the fourth quarter of 2023 compared to 81% for the same
quarter in 2022.
Operating Income: GAAP operating income for the
fourth quarter of 2023 increased by 35% to $41.5 million compared to $30.7 million for the same quarter in 2022. As a
percentage of revenues, GAAP operating income was 29% for the
fourth quarter of 2023 compared to 23% for the same quarter in
2022. Non-GAAP operating income for the fourth quarter of 2023
increased by 28% to $60.8 million
compared to $47.4 million for the
same quarter in 2022. As a percentage of revenues, non-GAAP
operating income was 42% for the fourth quarter of 2023 compared to
36% for the same quarter in 2022.
Net Income: GAAP net income for the fourth quarter
of 2023 increased by 43% to $40.6
million, or $1.08 per diluted
share, compared to $28.3 million, or
$0.74 per diluted share, for the same
quarter in 2022. As a percentage of revenues, GAAP net income was
28% for the fourth quarter of 2023 compared to 22% for the same
quarter in 2022. Non-GAAP net income for the fourth quarter of 2023
was $52.8 million, or $1.40 per diluted share, compared to $38.9 million, or $1.01 per diluted share, for the same quarter in
2022. As a percentage of revenues, non-GAAP net income was 37% for
the fourth quarter of 2023 compared to 30% for the same quarter in
2022.
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP
financial measure) for the fourth quarter of 2023 increased by 20%
to $65.8 million compared to
$55.1 million for the same quarter in
2022. As a percentage of revenues, Adjusted EBITDA was 46% for the
fourth quarter of 2023 compared to 42% for the same quarter in
2022.
Operating Cash Flow: Operating cash flow for the
fourth quarter of 2023 decreased by 23% to $33.8 million compared to $43.8 million for the same quarter in 2022. As a
percentage of revenues, operating cash flow was 23% for the fourth
quarter of 2023 compared to 34% for the same quarter in 2022.
Fourth Quarter 2023 Business Highlights
- Showcased the Company's innovation and leadership to more than
500 customers and partners at its annual Qualys Security Conference
(QSC) in Orlando, Florida.
- Announced the results of a Return on Investment (ROI) study
conducted by leading analyst firm IDC, which found organizations
achieved $5.1M per year in benefits
from leveraging Qualys and a three-year ROI of 403%.
- Qualys released small-to-medium sized business (SMBs) and
small-to-medium enterprises (SMEs) offerings of Qualys' VMDR with
TruRisk, Patch Management and Endpoint Detection and Response (EDR)
for the AWS Marketplace.
Full Year 2023 Financial Highlights
Revenues: Revenues for 2023 increased by 13% to
$554.5 million compared to
$489.7 million for 2022.
Gross Profit: GAAP gross profit for 2023 increased by 16%
to $447.0 million compared to
$386.9 million for 2022. GAAP gross
margin was 81% for 2023 compared to 79% in 2022. Non-GAAP gross
profit increased by 15% to $457.3
million for 2023 compared to $397.6
million for 2022. Non-GAAP gross margin was 82% in 2023
compared to 81% in 2022.
Operating Income: GAAP operating income for 2023 was
$163.1 million compared to
$130.5 million for 2022. As a
percentage of revenues, GAAP operating income was 29% for 2023
compared to 27% for 2022. Non-GAAP operating income for 2023 was
$235.2 million compared to
$189.6 million for 2022. As a
percentage of revenues, non-GAAP operating income was 42% for 2023
compared to 39% for 2022.
Net Income: GAAP net income for 2023 increased by 40% to
$151.6 million, or $4.03 per diluted share, compared to $108.0 million, or $2.74 per diluted share for 2022. As a percentage
of revenues, GAAP net income was 27% for 2023 compared to 22% for
2022. Non-GAAP net income for 2023 was $198.1 million, or $5.27 per diluted share, compared to non-GAAP net
income of $146.5 million, or
$3.72 per diluted share for 2022. As
a percentage of revenues, non-GAAP net income was 36% for 2023
compared to 30% for 2022.
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial
measure) for 2023 increased by 19% to $259.1
million compared to $218.6
million for 2022. As a percentage of revenues, Adjusted
EBITDA was 47% for 2023 compared to 45% for 2022.
Operating Cash Flow: Operating cash flow for 2023
was $244.6 million compared to
$198.9 million for 2022. As a
percentage of revenues, operating cash flow was 44% for 2023
compared to 41% for 2022.
Full Year 2023 Business Highlights
Market Recognition
- Qualys' VMDR was recognized by SC Awards Europe as the best
vulnerability management solution, and peer review site G2 named
Qualys' VMDR the top Risk-based vulnerability product in its summer
2023 G2 Grid Report.
- CRN recognized Qualys as a leader in its 2023 Cloud 100 list
for relentless innovation in cloud-based technology
development.
- The Qualys Threat Research Unit (TRU) has received prestigious
Pwnie award nominations for work on RenderDoc, marking the fifth
consecutive year of recognition for their exceptional contributions
to cybersecurity research.
Products & Features
- Unveiled the Qualys Enterprise TruRisk Management platform to
provide a unified view of cyber risk, empowering customers to bring
security and vulnerability findings from third-party security
solutions into the Qualys platform.
- Unified Cloud Workload Protection (CWP), Cloud Security Posture
Management (CSPM), Cloud Detection and Response (CDR),
Infrastructure as Code (IaC), and Container Security and brought an
organically integrated agent and agentless TotalCloud Cloud Native
Application Protection Platform (CNAPP) solution to market.
- Introduced GovCloud, a FedRAMP Ready (High Impact Level)
vulnerability and patch management platform that comprehensively
meets Executive Orders and National Institute of Standards and
Technology (NIST) compliance and helps federal agencies improve
their security posture.
- Harnessed technology from our acquisition of Blue Hexagon and
extended our cloud-scale deep learning Artificial Intelligence (AI)
to discover and identify relationships and patterns within our own
highly integrated data lake that are invisible and undetectable in
traditional signature-based solutions.
- Introduced Qualys' First-Party Software Risk Management, to
enable application security teams to detect, prioritize and
remediate vulnerabilities within company-developed software and
embedded open-source components.
Business Developments
- The inaugural Qualys Environmental, Social and Governance (ESG)
report was launched to showcase the company's robust adherence to
responsible business practices and sustainable operations.
- The relationship between Qualys and Cowbell was expanded as
Cowbell added Qualys' External Attack Surface Management (EASM)
real-time intelligence feed to access clients' risk posture.
- Expanded Qualys VMDR offering with new packages for small
enterprises and small/medium businesses to offer simple,
easy-to-deploy, all-inclusive security solutions to manage,
remediate and protect against cyber threats and reduce risk.
- Launched Qualys' inaugural 2023 TruRisk Research Report,
offering a reliable resource for security practitioners seeking
data-driven, real-world, and actionable perspectives on
vulnerabilities and trends critical to organizations across all
industries and sizes.
- Mazars integrated Qualys' cybersecurity solutions into its
Cybersecurity Managed Services offering to empower customers with
unprecedented insights into their risk postures with integrated
vulnerability detection, prioritization and remediation
capabilities.
- Demonstrated the company's cutting-edge innovation and industry
leadership to over 1,000 participants during the Qualys Security
Conferences held throughout the year in Orlando, Florida, London and Munich.
- Launched a virtual thought leadership Cyber Risk Series holding
three events in 2023 with more than 3,500 attendees offering
insightful content on PCI DSS and compliance, reducing risk and
attack surface management.
Financial Performance Outlook
Based on information as of today, February 7, 2024, Qualys
is issuing the following financial guidance for the first quarter
and full year fiscal 2024. The Company emphasizes that the guidance
is subject to various important cautionary factors referenced in
the sections entitled "Legal Notice Regarding Forward-Looking
Statements" and "Non-GAAP Financial Measures" below.
First Quarter 2024 Guidance: Management expects
revenues for the first quarter of 2024 to be in the range of
$144.5 million to $146.5 million, representing 11% to 12% growth
over the same quarter in 2023. GAAP net income per diluted share is
expected to be in the range of $0.84
to $0.92, which assumes an effective
income tax rate of 22%. Non-GAAP net income per diluted share is
expected to be in the range of $1.27
to $1.35, which assumes a non-GAAP
effective income tax rate of 21%. First quarter 2024 net income per
diluted share estimates are based on approximately 37.9 million
weighted average diluted shares outstanding for the quarter.
Full Year 2024 Guidance: Management expects
revenues for the full year of 2024 to be in the range of
$600.0 million to $610.0 million, representing 8% to 10% growth
over 2023. GAAP net income per diluted share is expected to be in
the range of $3.11 to $3.43. This assumes an effective income tax rate
of 22%. Non-GAAP net income per diluted share is expected to be in
the range of $4.95 to $5.27. This assumes a non-GAAP effective income
tax rate of 21%. Full year 2024 net income per diluted share
estimates are based on approximately 37.9 million weighted average
diluted shares outstanding.
Qualys has not reconciled non-GAAP net income per diluted share
guidance to GAAP net income per diluted share guidance because
Qualys does not provide guidance on the various reconciling cash
and non-cash items between GAAP net income and non-GAAP net income
(i.e., stock-based compensation, amortization of intangible assets
from acquisitions and non-recurring items). The actual dollar
amount of reconciling items in the first quarter and full year 2024
is likely to have a significant impact on the Company's GAAP net
income per diluted share in the first quarter and full year 2024. A
reconciliation of the non-GAAP net income per diluted share
guidance to the GAAP net income per diluted share guidance is not
available without unreasonable effort.
Investor Conference Call
Qualys will host a conference call and live webcast to discuss
its fourth quarter and full year 2023 financial results at
5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Wednesday, February 7, 2024. To access the
conference call by phone, please register here. A live webcast of
the earnings conference call, investor presentation and prepared
remarks can be accessed at
https://investor.qualys.com/events-presentations. A replay of the
conference call will be available through the same webcast link
following the end of the call.
Investor Contact
Blair King
Vice President, Investor Relations and Corporate Development
(650) 801-6299
ir@qualys.com
About Qualys
Qualys, Inc. (NASDAQ: QLYS) is a pioneer and leading provider of
disruptive cloud-based Security, Compliance and IT solutions with
more than 10,000 subscription customers worldwide, including a
majority of the Forbes Global 100 and Fortune 100. Qualys helps
organizations streamline and consolidate their security and
compliance solutions onto a single platform for greater agility,
better business outcomes, and substantial cost savings.
The Qualys Cloud Platform leverages a single agent to
continuously deliver critical security intelligence while enabling
enterprises to automate the full spectrum of vulnerability
detection, compliance, and protection for IT systems, workloads and
web applications across on premises, endpoints, servers, public and
private clouds, containers, and mobile devices. Founded in 1999 as
one of the first SaaS security companies, Qualys has strategic
partnerships and seamlessly integrates its vulnerability management
capabilities into security offerings from cloud service providers,
including Amazon Web Services, the Google Cloud Platform and
Microsoft Azure, along with a number of leading managed service
providers and global consulting organizations. For more
information, please visit www.qualys.com.
Qualys, Qualys VMDR® and the Qualys logo are
proprietary trademarks of Qualys, Inc. All other products or names
may be trademarks of their respective companies.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements generally relate to future events or our future
financial or operating performance. Forward-looking statements in
this press release include, but are not limited to, quotations of
management and statements related to: the benefits of our existing,
new and upcoming products, features, integrations, acquisitions,
collaborations and joint solutions, and their impact upon our
long-term growth; our ability to advance our value proposition and
competitive differentiation in the market; our ability to address
demand trends; our ability to maintain and strengthen our category
leadership; our ability to solve modern security challenges at
scale; our strategies and ability to achieve and maintain durable
profitable growth; statements regarding our share repurchase
program; our guidance for revenues, GAAP EPS and non-GAAP EPS for
the first quarter and full year 2024; and our expectations for the
number of weighted average diluted shares outstanding and the GAAP
and non-GAAP effective income tax rate for the first quarter and
full year 2024. Our expectations and beliefs regarding these
matters may not materialize, and actual results in future periods
are subject to risks and uncertainties that could cause actual
results to differ materially from those projected. These risks
include our ability to continue to develop platform capabilities
and solutions; the ability of our platform and solutions to perform
as intended; customer acceptance and purchase of our existing
solutions and new solutions; real or perceived defects, errors or
vulnerabilities in our products or services; our ability to retain
existing customers and generate new customers; the budgeting cycles
and seasonal buying patterns of our customers; general market,
political, economic and business conditions in the United States as well as globally; our
ability to manage costs as we increase our customer base and the
number of our platform solutions; the market for cloud solutions
for IT security and compliance not increasing at the rate we
expect; competition from other products and services; fluctuations
in currency exchange rates; unexpected fluctuations in our
effective income tax rate on a GAAP and non-GAAP basis; our ability
to effectively manage our rapid growth and our ability to
anticipate future market needs and opportunities; and any
unanticipated accounting charges. The forward-looking statements
contained in this press release are also subject to other risks and
uncertainties, including those more fully described in our filings
with the Securities and Exchange Commission, including our Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q.
The forward-looking statements in this press release are based
on information available to Qualys as of the date hereof, and
Qualys disclaims any obligation to update any forward-looking
statements, except as required by law.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with
GAAP, Qualys provides investors with certain non-GAAP financial
measures, including non-GAAP gross profit, non-GAAP gross margin,
non-GAAP operating expenses, non-GAAP operating income, non-GAAP
net income, non-GAAP net income per diluted share, Adjusted EBITDA
(defined as earnings before interest expense, interest income and
other income (expense), net, income taxes, depreciation,
amortization, and stock-based compensation) and non-GAAP free cash
flows (defined as cash provided by operating activities less
purchases of property and equipment, net of proceeds from
disposal).
In computing non-GAAP financial measures, Qualys excludes the
effects of stock-based compensation expense, amortization of
intangible assets from acquisitions, non-recurring items and for
non-GAAP net income, certain tax effects. Qualys believes that
these non-GAAP financial measures help illustrate underlying trends
in its business that could otherwise be masked by the effect of the
income or expenses that are excluded in non-GAAP gross profit,
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP
operating income, non-GAAP net income, non-GAAP net income per
diluted share, Adjusted EBITDA and non-GAAP free cash flows.
Furthermore, Qualys uses some of these non-GAAP financial
measures to establish budgets and operational goals for managing
its business and evaluating its performance. Qualys believes that
non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP operating income, non-GAAP net income, non-GAAP
net income per diluted share, Adjusted EBITDA and non-GAAP free
cash flows provide additional tools for investors to use in
comparing its recurring core business operating results over
multiple periods with other companies in its industry.
Although Qualys does not focus on or use quarterly billings in
managing or monitoring the performance of its business, Qualys
provides calculated current billings (defined as total revenues
recognized in a period plus the sequential change in current
deferred revenue in the corresponding period) for the convenience
of investors and analysts in building their own financial
models.
In order to provide a more complete picture of recurring core
operating business results, the Company's non-GAAP net income and
non-GAAP net income per diluted share include adjustments for
non-recurring income tax items and certain tax effects of non-GAAP
adjustments to achieve the effective income tax rate on a non-GAAP
basis. The Company's non-GAAP effective tax rate may differ from
the GAAP effective income tax rate as a result of these income tax
adjustments. The Company believes its estimated non-GAAP effective
income tax rate of 21% in 2024 is a reasonable estimate under its
current global operating structure and core business operations.
The Company may adjust this rate during the year to take into
account events or trends that it believes materially impact the
estimated annual rate. The non-GAAP effective income tax rate could
be subject to change for a number of reasons, including but not
limited to, significant changes resulting from tax legislation,
material changes in geographic mix of revenues and expenses and
other significant events.
The presentation of this non-GAAP financial information is not
intended to be considered in isolation or as a substitute for
results prepared in accordance with GAAP. A reconciliation of the
non-GAAP financial measures discussed in this press release to the
most directly comparable GAAP financial measures is included with
the financial statements contained in this press release.
Management uses both GAAP and non-GAAP information in evaluating
and operating its business internally and as such has determined
that it is important to provide this information to investors.
Qualys,
Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands,
except per share data)
|
|
|
Three Months
Ended December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues
|
$
144,570
|
|
$
130,849
|
|
$
554,458
|
|
$
489,723
|
Cost of revenues
(1)
|
27,130
|
|
27,748
|
|
107,485
|
|
102,788
|
Gross
profit
|
117,440
|
|
103,101
|
|
446,973
|
|
386,935
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development (1)
|
27,471
|
|
27,810
|
|
110,472
|
|
101,186
|
Sales and marketing
(1)
|
31,941
|
|
28,302
|
|
111,691
|
|
97,221
|
General and
administrative (1)
|
16,559
|
|
16,316
|
|
61,741
|
|
57,981
|
Total operating
expenses
|
75,971
|
|
72,428
|
|
283,904
|
|
256,388
|
Income from
operations
|
41,469
|
|
30,673
|
|
163,069
|
|
130,547
|
Other income (expense),
net:
|
|
|
|
|
|
|
|
Interest
income
|
5,563
|
|
2,266
|
|
16,905
|
|
5,191
|
Other income
(expense), net
|
560
|
|
1,458
|
|
(1,323)
|
|
(2,038)
|
Total other income,
net
|
6,123
|
|
3,724
|
|
15,582
|
|
3,153
|
Income before income
taxes
|
47,592
|
|
34,397
|
|
178,651
|
|
133,700
|
Income tax
provision
|
6,999
|
|
6,071
|
|
27,056
|
|
25,708
|
Net income
|
$
40,593
|
|
$
28,326
|
|
$
151,595
|
|
$
107,992
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
1.10
|
|
$
0.75
|
|
$
4.11
|
|
$
2.81
|
Diluted
|
$
1.08
|
|
$
0.74
|
|
$
4.03
|
|
$
2.74
|
Weighted average shares
used in computing net income per share:
|
|
|
|
|
|
|
|
Basic
|
36,845
|
|
37,781
|
|
36,879
|
|
38,453
|
Diluted
|
37,748
|
|
38,480
|
|
37,602
|
|
39,344
|
(1) Includes
stock-based compensation as follows:
|
|
|
|
|
|
|
|
Cost of
revenues
|
$
2,045
|
|
$
1,567
|
|
$
7,300
|
|
$
5,305
|
Research and
development
|
5,357
|
|
4,521
|
|
21,091
|
|
14,585
|
Sales and
marketing
|
3,654
|
|
3,007
|
|
12,234
|
|
9,837
|
General and
administrative
|
7,463
|
|
6,456
|
|
28,454
|
|
23,681
|
Total stock-based
compensation, net of amounts capitalized
|
$
18,519
|
|
$
15,551
|
|
$
69,079
|
|
$
53,408
|
Qualys,
Inc.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in
thousands)
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
203,665
|
|
$
173,719
|
Restricted
cash
|
1,500
|
|
—
|
Short-term marketable
securities
|
221,893
|
|
147,608
|
Accounts receivable,
net
|
146,226
|
|
121,795
|
Prepaid expenses and
other current assets
|
26,714
|
|
30,216
|
Total current
assets
|
599,998
|
|
473,338
|
Long-term marketable
securities
|
56,644
|
|
59,206
|
Property and equipment,
net
|
32,599
|
|
47,428
|
Operating leases -
right of use asset
|
22,391
|
|
33,752
|
Deferred tax assets,
net
|
62,761
|
|
45,412
|
Intangible assets,
net
|
9,715
|
|
12,801
|
Goodwill
|
7,447
|
|
7,447
|
Noncurrent restricted
cash
|
1,200
|
|
2,700
|
Other noncurrent
assets
|
19,863
|
|
18,857
|
Total
assets
|
$
812,618
|
|
$
700,941
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
988
|
|
$
2,808
|
Accrued
liabilities
|
43,096
|
|
42,592
|
Deferred revenues,
current
|
333,267
|
|
293,728
|
Operating lease
liabilities, current
|
11,857
|
|
13,060
|
Total current
liabilities
|
389,208
|
|
352,188
|
Deferred revenues,
noncurrent
|
31,671
|
|
23,490
|
Operating lease
liabilities, noncurrent
|
16,885
|
|
29,121
|
Other noncurrent
liabilities
|
6,680
|
|
7,013
|
Total
liabilities
|
444,444
|
|
411,812
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
37
|
|
37
|
Additional paid-in
capital
|
597,921
|
|
512,486
|
Accumulated other
comprehensive loss
|
(1,704)
|
|
(1,947)
|
Accumulated
deficit
|
(228,080)
|
|
(221,447)
|
Total stockholders'
equity
|
368,174
|
|
289,129
|
Total liabilities and
stockholders' equity
|
$
812,618
|
|
$
700,941
|
|
|
|
|
|
|
|
|
Qualys,
Inc.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in
thousands)
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
Cash flow from
operating activities:
|
|
|
|
Net income
|
$
151,595
|
|
$
107,992
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization expense
|
26,991
|
|
34,622
|
Provision for credit
losses
|
547
|
|
590
|
Loss on disposal of
property and equipment
|
—
|
|
6
|
Loss on non-marketable
securities
|
533
|
|
—
|
Stock-based
compensation, net of amounts capitalized
|
69,079
|
|
53,408
|
Amortization
(accretion) of premiums (discount) on marketable securities,
net
|
(5,712)
|
|
833
|
Deferred income
taxes
|
(16,636)
|
|
(20,251)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(24,978)
|
|
(13,387)
|
Prepaid expenses and
other assets
|
(3,407)
|
|
3,878
|
Accounts
payable
|
(1,578)
|
|
2,107
|
Accrued liabilities
and other noncurrent liabilities
|
451
|
|
3,867
|
Deferred
revenues
|
47,720
|
|
25,189
|
Net cash provided by
operating activities
|
244,605
|
|
198,854
|
Cash flow from
investing activities:
|
|
|
|
Purchases of
marketable securities
|
(306,812)
|
|
(178,788)
|
Sales and maturities
of marketable securities
|
242,432
|
|
347,837
|
Purchases of property
and equipment
|
(8,786)
|
|
(15,361)
|
Purchases of
intangible assets
|
—
|
|
(8,620)
|
Net cash (used in)
provided by investing activities
|
(73,166)
|
|
145,068
|
Cash flow from
financing activities:
|
|
|
|
Repurchase of common
stock
|
(170,800)
|
|
(317,344)
|
Proceeds from exercise
of stock options
|
45,576
|
|
24,483
|
Payments for taxes
related to net share settlement of equity awards
|
(22,346)
|
|
(17,615)
|
Proceeds from issuance
of common stock through employee stock purchase plan
|
6,077
|
|
4,445
|
Net cash used in
financing activities
|
(141,493)
|
|
(306,031)
|
Net increase in cash,
cash equivalents and restricted cash
|
29,946
|
|
37,891
|
Cash, cash equivalents
and restricted cash at beginning of period
|
176,419
|
|
138,528
|
Cash, cash equivalents
and restricted cash at end of period
|
$
206,365
|
|
$
176,419
|
Qualys,
Inc.
RECONCILIATION OF
NON-GAAP DISCLOSURES
ADJUSTED
EBITDA
(unaudited)
(in thousands,
except percentages)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
$
40,593
|
|
$
28,326
|
|
$ 151,595
|
|
$ 107,992
|
Net income as a
percentage of revenues
|
28 %
|
|
22 %
|
|
27 %
|
|
22 %
|
Depreciation and
amortization of property and equipment
|
5,080
|
|
7,688
|
|
23,904
|
|
28,936
|
Amortization of
intangible assets
|
771
|
|
1,161
|
|
3,087
|
|
5,686
|
Income tax
provision
|
6,999
|
|
6,071
|
|
27,056
|
|
25,708
|
Stock-based
compensation
|
18,519
|
|
15,551
|
|
69,079
|
|
53,408
|
Total other income,
net
|
(6,123)
|
|
(3,724)
|
|
(15,582)
|
|
(3,153)
|
Adjusted
EBITDA
|
$
65,839
|
|
$
55,073
|
|
$ 259,139
|
|
$ 218,577
|
Adjusted EBITDA as a
percentage of revenues
|
46 %
|
|
42 %
|
|
47 %
|
|
45 %
|
Qualys,
Inc.
RECONCILIATION OF
NON-GAAP DISCLOSURES
(unaudited)
(in thousands,
except per share data)
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP Cost of
revenues
|
$
27,130
|
|
$
27,748
|
|
$
107,485
|
|
$
102,788
|
Less: Stock-based
compensation
|
(2,045)
|
|
(1,567)
|
|
(7,300)
|
|
(5,305)
|
Less: Amortization of
intangible assets
|
(746)
|
|
(1,076)
|
|
(2,987)
|
|
(5,347)
|
Non-GAAP Cost of
revenues
|
$
24,339
|
|
$
25,105
|
|
$
97,198
|
|
$
92,136
|
GAAP Gross
profit
|
$
117,440
|
|
$
103,101
|
|
$
446,973
|
|
$
386,935
|
Plus: Stock-based
compensation
|
2,045
|
|
1,567
|
|
7,300
|
|
5,305
|
Plus: Amortization of
intangible assets
|
746
|
|
1,076
|
|
2,987
|
|
5,347
|
Non-GAAP Gross
Profit
|
$
120,231
|
|
$
105,744
|
|
$
457,260
|
|
$
397,587
|
GAAP Research and
development
|
$
27,471
|
|
$
27,810
|
|
$
110,472
|
|
$
101,186
|
Less: Stock-based
compensation
|
(5,357)
|
|
(4,521)
|
|
(21,091)
|
|
(14,585)
|
Less: Amortization of
intangible assets
|
(25)
|
|
(85)
|
|
(100)
|
|
(339)
|
Non-GAAP Research and
development
|
$
22,089
|
|
$
23,204
|
|
$
89,281
|
|
$
86,262
|
GAAP Sales and
marketing
|
$
31,941
|
|
$
28,302
|
|
$
111,691
|
|
$
97,221
|
Less: Stock-based
compensation
|
(3,654)
|
|
(3,007)
|
|
(12,234)
|
|
(9,837)
|
Non-GAAP Sales and
marketing
|
$
28,287
|
|
$
25,295
|
|
$
99,457
|
|
$
87,384
|
GAAP General and
administrative
|
$
16,559
|
|
$
16,316
|
|
$
61,741
|
|
$
57,981
|
Less: Stock-based
compensation
|
(7,463)
|
|
(6,456)
|
|
(28,454)
|
|
(23,681)
|
Non-GAAP General and
administrative
|
$
9,096
|
|
$
9,860
|
|
$
33,287
|
|
$
34,300
|
GAAP Operating
expenses
|
$
75,971
|
|
$
72,428
|
|
$
283,904
|
|
$
256,388
|
Less: Stock-based
compensation
|
(16,474)
|
|
(13,984)
|
|
(61,779)
|
|
(48,103)
|
Less: Stock-based
compensation
|
(16,474)
|
|
(13,984)
|
|
(61,779)
|
|
(48,103)
|
Less: Amortization of
intangible assets
|
(25)
|
|
(85)
|
|
(100)
|
|
(339)
|
Non-GAAP Operating
expenses
|
$
59,472
|
|
$
58,359
|
|
$
222,025
|
|
$
207,946
|
GAAP Income from
operations
|
$
41,469
|
|
$
30,673
|
|
$
163,069
|
|
$
130,547
|
Plus: Stock-based
compensation
|
18,519
|
|
15,551
|
|
69,079
|
|
53,408
|
Plus: Amortization of
intangible assets
|
771
|
|
1,161
|
|
3,087
|
|
5,686
|
Non-GAAP Income from
operations
|
$
60,759
|
|
$
47,385
|
|
$
235,235
|
|
$
189,641
|
GAAP Net
income
|
$
40,593
|
|
$
28,326
|
|
$
151,595
|
|
$
107,992
|
Plus: Stock-based
compensation
|
18,519
|
|
15,551
|
|
69,079
|
|
53,408
|
Plus: Amortization of
intangible assets
|
771
|
|
1,161
|
|
3,087
|
|
5,686
|
Less: Tax
adjustment
|
(7,046)
|
|
(6,187)
|
|
(25,615)
|
|
(20,563)
|
Non-GAAP Net
income
|
$
52,837
|
|
$
38,851
|
|
$
198,146
|
|
$
146,523
|
GAAP Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
1.10
|
|
$
0.75
|
|
$
4.11
|
|
$
2.81
|
Diluted
|
$
1.08
|
|
$
0.74
|
|
$
4.03
|
|
$
2.74
|
Non-GAAP Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
1.43
|
|
$
1.03
|
|
$
5.37
|
|
$
3.81
|
Diluted
|
$
1.40
|
|
$
1.01
|
|
$
5.27
|
|
$
3.72
|
Weighted average shares
used in GAAP and non-GAAP net income per share:
|
|
|
|
|
|
|
|
Basic
|
36,845
|
|
37,781
|
|
36,879
|
|
38,453
|
Diluted
|
37,748
|
|
38,480
|
|
37,602
|
|
39,344
|
Qualys,
Inc.
RECONCILIATION OF
NON-GAAP DISCLOSURES
FREE CASH
FLOWS
(unaudited)
(in
thousands)
|
|
|
Twelve Months
Ended
December 31,
|
|
2023
|
|
2022
|
GAAP Cash flows
provided by operating activities
|
$
244,605
|
|
$
198,854
|
Less:
|
|
|
|
Purchases of property
and equipment, net of proceeds from disposal
|
(8,786)
|
|
(15,361)
|
Non-GAAP Free cash
flows
|
$
235,819
|
|
$
183,493
|
Qualys,
Inc.
RECONCILIATION OF
NON-GAAP DISCLOSURES
CALCULATED CURRENT
BILLINGS
(unaudited)
(in thousands,
except percentages)
|
|
|
Three Months
Ended
December 31,
|
|
2023
|
|
2022
|
GAAP Revenue
|
$ 144,570
|
|
$ 130,849
|
GAAP Revenue growth
compared to same quarter of prior year
|
10 %
|
|
19 %
|
Plus: Current deferred
revenue at December 31
|
333,267
|
|
293,728
|
Less: Current deferred
revenue at September 30
|
(307,179)
|
|
(278,947)
|
Non-GAAP Calculated
current billings
|
$ 170,658
|
|
$ 145,630
|
Calculated current
billings growth compared to same quarter of prior year
|
17 %
|
|
12 %
|
View original
content:https://www.prnewswire.com/news-releases/qualys-announces-fourth-quarter-and-full-year-2023-financial-results-302056234.html
SOURCE Qualys, Inc.