Revenue Growth of 17% Year-Over-Year
GAAP EPS:
Raises 2022 Revenue Guidance to
Announces
"We had a great start to the year with continued revenue growth acceleration and strong cash flow generation," said
First Quarter 2022 Financial Highlights
Revenues: Revenues for the first quarter of 2022 increased by 17% to
Gross Profit: GAAP gross profit for the first quarter of 2022 increased by 19% to
Operating Income (Loss): GAAP operating income for the first quarter of 2022 was
Net Income: GAAP net income for the first quarter of 2022 was
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2022 increased by 22% to
Operating Cash Flow: Operating cash flow for the first quarter of 2022 increased by 37% to
First Quarter 2022 Business Highlights
- Leveraging
Qualys' single agent approach, we unveiled our Context XDR application to natively integrate and correlate asset and risk-based context vulnerability management, patching, EDR and File Integrity Monitoring security telemetry with additional third-party data integration to provide and prioritize high-fidelity threat detection and response. - Continuing our innovation of Qualys Cloud Platform, we further enhanced our Patch Management offering by adding advanced remediation features. Qualys Patch Management seamlessly integrates with Qualys VMDR® to remediate vulnerabilities by deploying patches or applying configuration changes on any device regardless of its location. This new advanced remediation update allows teams to use one application to detect, prioritize and fix vulnerabilities regardless of the remediation method required and enables teams to run actions before or after or even without deploying patches at all.
- Introduced our next major upgrade to our Multi-Vector EDR solution. This natively integrated solution on the Qualys Cloud Platform leverages our single agent approach to IT security and compliance solutions to further enhance our threat hunting and risk mitigation capabilities. As part of this launch,
Qualys successfully participated in its first year of MITRE Engenuity Evaluations for Multi-Vector EDR, which detected the simulated adversary throughout the attack chain. - Following a successful
Qualys Security Conference (QSC) held virtually and live inLas Vegas last year, we launched in Q1 our QSC roadshow inAtlanta . This is the first stop in our ten-city tour, including upcoming events inLondon ,Chicago ,New York ,San Francisco andSydney .
Financial Performance Outlook
Based on information as of today,
Second Quarter 2022 Guidance: Management expects revenues for the second quarter of 2022 to be in the range of
Full Year 2022 Guidance: Management now expects revenues for the full year of 2022 to be in the range of
Investor Conference Call
Investor Contact
Vice President, Investor Relations and Corporate Development
(650) 801-6299
ir@qualys.com
About
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,
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 new and upcoming products, features, integrations, collaborations and joint solutions, and their impact upon our long-term growth; our guidance for revenues, GAAP EPS and non-GAAP EPS for the second quarter and full year 2022; and our expectations for the number of weighted average diluted shares outstanding and the GAAP and non-GAAP effective income tax rate for the second quarter and full year 2022. 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; the length of our sales cycle; the impact of the ongoing COVID-19 pandemic and related public health measures on our business and the global economy; 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; any unanticipated accounting charges; and general market, political, economic and business conditions in
The forward-looking statements in this press release are based on information available to
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP,
In computing non-GAAP financial measures,
Furthermore,
Although
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 are adjusted for non-recurring income tax items and tax effect 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 24% in 2022 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.
|
|||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
(Unaudited) |
|||
(in thousands, except per share data) |
|||
Three Months Ended March 31, |
|||
2022 |
2021 |
||
Revenues |
|
|
|
Cost of revenues(1) |
24,002 |
21,680 |
|
Gross profit |
89,418 |
75,076 |
|
Operating expenses: |
|||
Research and development (1) |
23,107 |
17,749 |
|
Sales and marketing(1) |
20,142 |
17,989 |
|
General and administrative(1) |
12,634 |
42,043 |
|
Total operating expenses |
55,883 |
77,781 |
|
Income (loss) from operations |
33,535 |
(2,705) |
|
Other income (expense), net: |
|||
Interest expense |
- |
(4) |
|
Interest income |
518 |
746 |
|
Other income (expense), net |
(710) |
(244) |
|
Total other income (expense), net |
(192) |
498 |
|
Income (loss) before income taxes |
33,343 |
(2,207) |
|
Income tax provision (benefit) |
7,933 |
(2,435) |
|
Net income |
$ 25,410 |
$ 228 |
|
Net income per share: |
|||
Basic |
$ 0.65 |
$ 0.01 |
|
Diluted |
$ 0.64 |
$ 0.01 |
|
Weighted average shares used in computing net income per share: |
|||
Basic |
38,992 |
39,209 |
|
Diluted |
40,001 |
40,430 |
|
(1)Includes stock-based compensation as follows: |
|||
Cost of revenues |
$ 1,080 |
$ 875 |
|
Research and development |
3,287 |
2,215 |
|
Sales and marketing |
2,031 |
1,628 |
|
General and administrative |
5,347 |
33,484 |
|
Total stock-based compensation |
$ 11,745 |
|
|
|||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(Unaudited) |
|||
(in thousands) |
|||
|
|
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 166,287 |
$ 137,328 |
|
Short-term marketable securities |
290,851 |
267,960 |
|
Accounts receivable, net |
89,294 |
108,998 |
|
Prepaid expenses and other current assets |
26,752 |
32,112 |
|
Total current assets |
573,184 |
546,398 |
|
Long-term marketable securities |
82,360 |
111,198 |
|
Property and equipment, net |
63,377 |
61,854 |
|
Operating leases - right of use asset |
34,569 |
37,016 |
|
Deferred tax assets, net |
29,986 |
25,087 |
|
Intangible assets, net |
4,839 |
6,545 |
|
|
7,447 |
7,447 |
|
Restricted cash |
1,200 |
1,200 |
|
Other noncurrent assets |
17,588 |
17,814 |
|
Total assets |
$ 814,550 |
$ 814,559 |
|
Liabilities and Stockholders' Equity |
|||
Current liabilities: |
|||
Accounts payable |
$ 2,477 |
$ 1,296 |
|
Accrued liabilities |
37,083 |
32,504 |
|
Deferred revenues, current |
266,934 |
257,872 |
|
Operating lease liabilities, current |
12,044 |
12,608 |
|
Total current liabilities |
318,538 |
304,280 |
|
Deferred revenues, noncurrent |
31,117 |
32,753 |
|
Operating lease liabilities, noncurrent |
33,284 |
35,914 |
|
Other noncurrent liabilities |
4,976 |
4,898 |
|
Total liabilities |
387,915 |
377,845 |
|
Stockholders' equity: |
|||
Common stock |
39 |
39 |
|
Additional paid-in capital |
485,676 |
477,323 |
|
Accumulated other comprehensive income (loss) |
(670) |
1,007 |
|
Accumulated deficit |
(58,410) |
(41,655) |
|
Total stockholders' equity |
426,635 |
436,714 |
|
Total liabilities and stockholders' equity |
$ 814,550 |
$ 814,559 |
|
|||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
|||
(Unaudited) |
|||
(in thousands) |
|||
Three Months Ended |
|||
2022 |
2021 |
||
Cash flow from operating activities: |
|||
Net income |
$ 25,410 |
$ 228 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||
Depreciation and amortization expense |
8,982 |
9,078 |
|
Bad debt expense |
141 |
138 |
|
Loss on disposal of property and equipment |
5 |
- |
|
Stock-based compensation |
11,745 |
38,202 |
|
Amortization of premiums (accretion of discounts) on marketable securities |
762 |
967 |
|
Deferred income taxes |
(5,095) |
(5,162) |
|
Changes in operating assets and liabilities: |
|||
Accounts receivable |
19,563 |
14,819 |
|
Prepaid expenses and other assets |
6,067 |
(6,083) |
|
Accounts payable |
599 |
107 |
|
Accrued liabilities |
3,435 |
1,686 |
|
Deferred revenues |
7,426 |
3,874 |
|
Net cash provided by operating activities |
79,040 |
57,854 |
|
Cash flow from investing activities: |
|||
Purchases of marketable securities |
(81,800) |
(115,610) |
|
Sales and maturities of marketable securities |
84,915 |
145,044 |
|
Purchases of property and equipment |
(7,639) |
(6,259) |
|
Net cash provided by (used in) investing activities |
(4,524) |
23,175 |
|
Cash flow from financing activities: |
|||
Repurchase of common stock |
(46,581) |
(31,029) |
|
Proceeds from exercise of stock options |
2,569 |
2,264 |
|
Payments for taxes related to net share settlement of equity awards |
(3,631) |
(17,643) |
|
Proceeds from issuance of common stock through ESPP |
2,086 |
- |
|
Net cash used in financing activities |
(45,557) |
(46,408) |
|
Net increase in cash, cash equivalents and restricted cash |
28,959 |
34,621 |
|
Cash, cash equivalents and restricted cash at beginning of period |
138,528 |
75,332 |
|
Cash, cash equivalents and restricted cash at end of period |
|
|
|
|||
RECONCILIATION OF NON-GAAP DISCLOSURES |
|||
ADJUSTED EBITDA |
|||
(Unaudited) |
|||
(in thousands) |
|||
Three Months Ended March 31, |
|||
2022 |
2021 |
||
Net income |
|
$ 228 |
|
Depreciation and amortization of property and equipment |
7,276 |
7,433 |
|
Amortization of intangible assets |
1,706 |
1,645 |
|
Income tax provision (benefit) |
7,933 |
(2,435) |
|
Stock-based compensation |
11,745 |
38,202 |
|
Other income (expense), net |
192 |
(498) |
|
Adjusted EBITDA |
|
|
|
||||
RECONCILIATION OF NON-GAAP DISCLOSURES |
||||
(Unaudited) |
||||
(in thousands, except per share data) |
||||
Three Months Ended March 31, |
||||
2022 |
2021 |
|||
GAAP Cost of revenues |
|
|
||
Less: Stock-based compensation |
(1,080) |
(875) |
||
Less: Amortization of intangible assets |
(1,621) |
(1,620) |
||
Non-GAAP Cost of revenues |
|
|
||
GAAP Gross profit |
|
|
||
Plus: Stock-based compensation |
1,080 |
875 |
||
Plus: Amortization of intangible assets |
1,621 |
1,620 |
||
Non-GAAP Gross Profit |
|
|
||
|
|
|
||
Less: Stock-based compensation |
(3,287) |
(2,215) |
||
Less: Amortization of intangible assets |
(85) |
(25) |
||
|
|
|
||
GAAP Sales and marketing |
|
|
||
Less: Stock-based compensation |
(2,031) |
(1,628) |
||
Non-GAAP Sales and marketing |
|
|
||
GAAP General and administrative |
|
|
||
Less: Stock-based compensation |
(5,347) |
(33,484) |
||
Non-GAAP General and administrative |
$ 7,287 |
$ 8,559 |
||
GAAP Operating expenses |
|
|
||
Less: Stock-based compensation |
(10,665) |
(37,327) |
||
Less: Amortization of intangible assets |
(85) |
(25) |
||
Non-GAAP Operating expenses |
|
|
||
GAAP Income (loss) from operations |
|
|
||
Plus: Stock-based compensation |
11,745 |
38,202 |
||
Plus: Amortization of intangible assets |
1,706 |
1,645 |
||
Non-GAAP Income from operations |
|
|
||
GAAP Net income |
|
$ 228 |
||
Plus: Stock-based compensation |
11,745 |
38,202 |
||
Plus: Amortization of intangible assets |
1,706 |
1,645 |
||
Less: Tax adjustment |
(3,297) |
(10,313) |
||
Non-GAAP Net income |
|
|
||
Non-GAAP Net income per share: |
||||
Basic |
$ 0.91 |
$ 0.76 |
||
Diluted |
$ 0.89 |
$ 0.74 |
||
Weighted average shares used in non-GAAP net income per share: |
||||
Basic |
38,992 |
39,209 |
||
Diluted |
40,001 |
40,430 |
|
|||
RECONCILIATION OF NON-GAAP DISCLOSURES |
|||
FREE CASH FLOWS |
|||
(Unaudited) |
|||
(in thousands) |
|||
Three Months Ended |
|||
2022 |
2021 |
||
GAAP Cash flows provided by operating activities |
|
|
|
Less: Purchases of property and equipment, net of proceeds from disposal |
(7,639) |
(6,259) |
|
Non-GAAP Free cash flows |
|
|
|
|||
RECONCILIATION OF NON-GAAP DISCLOSURES |
|||
CALCULATED CURRENT BILLINGS |
|||
(Unaudited) |
|||
(in thousands) |
|||
Three Months Ended |
|||
2022 |
2021 |
||
GAAP Revenue |
|
$ 96,756 |
|
Plus: Current deferred revenue at |
266,934 |
218,898 |
|
Less: Current deferred revenue at |
(257,872) |
(213,494) |
|
Non-GAAP Calculated current billings |
|
|
|
Calculated current billings growth compared to same quarter of prior year |
20% |
6% |
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