Qualys (QLYS) investor relations material

Financial performance and growth outlook

• Achieved 10% growth with 45% EBITDA margin in the recent quarter, reflecting strong profitability.

• Net retention rate improved from 103% to 104%, driven by customer adoption of broader capabilities.

• Full-year growth expected at 6–8%, with second half growth moderating to 5–7% due to tougher comparisons.

• Continued investment in R&D and sales/marketing, with R&D expense growing 8% in Q1 and 15% in Q2.

• Margin contraction anticipated in the near term as investments ramp, with future margin expansion expected as partner/direct revenue mix stabilizes.

Product innovation and platform strategy

• Evolving from vulnerability management to a unified risk management platform, integrating asset, patch, and configuration management.

• Announced identity security posture management, integrating with existing tools for a consolidated risk view.

• Launched agentic AI capabilities to automate risk triage and reduce operational overhead, including a cyber risk agent marketplace.

• AI adoption is increasing productivity across development, support, and sales, enabling faster product delivery.

• Customers value flexibility to consolidate tools while retaining best-of-breed solutions for specialized needs.

Go-to-market, partnerships, and federal sector expansion

• Partner-driven revenue mix shifted from 60/40 direct/partner to 51/49, supporting scalable growth.

• Managed Risk Operations Center (MROC) launched with initial partners, enabling partners to offer risk management services and drive upsell opportunities.

• Federal sector identified as a major growth opportunity, with recent achievement of FedRAMP High certification for the unified platform.

• Federal customers are transitioning from on-prem to cloud-based solutions, leveraging the risk operations center for efficiency.

• Ongoing investment in building out the federal team and expanding presence in Washington, DC.