8-K
false 0001107843 0001107843 2022-08-08 2022-08-08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

August 8, 2022

 

 

Qualys, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35662   77-0534145
(State or other jurisdiction
of incorporation)
 

(Commission

File Number)

  (IRS Employer
Identification No.)

 

919 East Hillsdale Boulevard
Foster City, California 94404
(Address of principal executive offices, including zip code)

(650) 801-6100

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading
Symbol(s)

 

Name of each exchange

on which registered

Common stock, $0.001 par value per share   QLYS   NASDAQ Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 2.02

Results of Operations and Financial Condition.

On August 8, 2022, Qualys, Inc. (“Qualys”) issued a press release announcing its financial results for the quarter ended June 30, 2022. In the press release, Qualys also announced that it will hold a conference call on August 8, 2022, to discuss its financial results for the quarter ended June 30, 2022. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit No.

  

Description

99.1    Press release issued by Qualys, Inc. dated August 8, 2022
104    Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  QUALYS, INC.
By:  

/s/ Joo Mi Kim

  Joo Mi Kim
  Chief Financial Officer

Date: August 8, 2022

EX-99.1

Exhibit 99.1

 

LOGO

Qualys Announces Second Quarter 2022 Financial Results

Revenue Growth of 20% Year-Over-Year

GAAP EPS: $0.67; Non-GAAP EPS: $0.89

Raises 2022 Revenue Guidance to $488.0-$489.5 million

Raises 2022 GAAP EPS Guidance to $2.39-$2.44

Raises 2022 Non-GAAP EPS Guidance to $3.50-$3.55

FOSTER CITY, Calif., August 8, 2022 Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the second quarter ended June 30, 2022. For the quarter, the Company reported revenues of $119.9 million, net income under United States Generally Accepted Accounting Principles (“U.S. GAAP”) of $26.6 million, non-GAAP net income of $35.3 million, Adjusted EBITDA of $54.4 million, GAAP net income per diluted share of $0.67, and non-GAAP net income per diluted share of $0.89.

“We are pleased to report another quarter of strong revenue growth and cash flow generation,” said Sumedh Thakar, president and CEO. “We continue to execute well across both our go-to-market and platform innovation agendas, yielding strong competitive differentiation and multiple growth drivers in our business, including our evolving partner ecosystem. Partners remain strategic to our growth strategy, and with continued investment in our partner programs, we believe we will be able to leverage their large distribution networks to drive profitable growth.”

Second Quarter 2022 Financial Highlights

Revenues: Revenues for the second quarter of 2022 increased by 20% to $119.9 million compared to $99.7 million for the same quarter in 2021.

Gross Profit: GAAP gross profit for the second quarter of 2022 increased by 21% to $94.8 million compared to $78.2 million for the same quarter in 2021. GAAP gross margin was 79% for the second quarter of 2022 compared to 78% for the same quarter in 2021. Non-GAAP gross profit for the second quarter of 2022 increased by 21% to $97.5 million compared to $80.6 million for the same quarter in 2021. Non-GAAP gross margin was 81% for both the second quarter of 2022 and the second quarter of 2021.

Operating Income: GAAP operating income for the second quarter of 2022 was $33.0 million compared to $29.4 million for the same quarter in 2021. As a percentage of revenues, GAAP operating income was 28% for the second quarter of 2022 compared to 29% for the same quarter in 2021. Non-GAAP operating income for the second quarter of 2022 increased by 20% to $47.3 million compared to $39.6 million for the same quarter in 2021. As a percentage of revenues, non-GAAP operating income was 39% for the second quarter of 2022 compared to 40% for the same quarter in 2021.

Net Income: GAAP net income for the second quarter of 2022 was $26.6 million, or $0.67 per diluted share, compared to $21.1 million, or $0.53 per diluted share, for the same quarter in 2021. As a percentage of revenues, GAAP net income was 22% for the second quarter of 2022 compared to 21% for the same quarter in 2021. Non-GAAP net income for the second quarter of 2022 was $35.3 million, or $0.89 per diluted share, compared to $31.6 million, or $0.79 per diluted share, for the same quarter in 2021. As a percentage of revenues, non-GAAP net income was 29% for the second quarter of 2022 compared to 32% for the same quarter in 2021.


Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2022 increased by 16% to $54.4 million compared to $46.7 million for the same quarter in 2021. As a percentage of revenues, Adjusted EBITDA was 45% for the second quarter of 2022 compared to 47% for the same quarter in 2021.

Operating Cash Flow: Operating cash flow for the second quarter of 2022 decreased by 38% to $33.8 million compared to $54.4 million for the same quarter in 2021. As a percentage of revenues, operating cash flow was 28% for the second quarter of 2022 compared to 55% for the same quarter in 2021.

Second Quarter 2022 Business Highlights

 

   

Qualys VMDR continues to receive industry recognition with a win in the Fortress Security Awards Threat Detection Category and being named a finalist in the best vulnerability management category for both the US and Europe SC Media Awards.

 

   

Introduced a major upgrade to VMDR with TruRisk to give security, cloud operations and IT teams unprecedented insights into their risk posture and drag and drop orchestration to prioritize and quickly respond to the most critical threats.

 

   

Leveraging Qualys’ single agent approach, we debuted a new solution, Custom Assessment and Remediation (CAR), opening the Cloud Platform by enabling security teams to swiftly respond to zero-day threats and conduct compliance audits of custom applications.

 

   

Launched an enhanced Partner Program to empower partners by making our renowned Cloud Platform and its more than 20 IT security and compliance applications available with additional support and resources to help expand joint business and drive new customer acquisition.

 

   

We continued our successful 10-city Qualys Security Conference (QSC) roadshow with events in London, Chicago, New York and San Francisco.

Financial Performance Outlook

Based on information as of today, August 8, 2022, Qualys is issuing the following financial guidance for the third quarter and full year fiscal 2022. 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.

Third Quarter 2022 Guidance: Management expects revenues for the third quarter of 2022 to be in the range of $124.5 million to $125.1 million, representing 19% growth over the same quarter in 2021. GAAP net income per diluted share is expected to be in the range of $0.56 to $0.58, which assumes an effective income tax rate of 26%. Non-GAAP net income per diluted share is expected to be in the range of $0.85 to $0.87, which assumes a non-GAAP effective income tax rate of 24%. Third quarter 2022 net income per diluted share estimates are based on approximately 39.2 million weighted average diluted shares outstanding for the quarter.

Full Year 2022 Guidance: Management now expects revenues for the full year of 2022 to be in the range of $488.0 million to $489.5 million, representing 19% growth over 2021, up from the previous guidance range of $484.0 million to $486.5 million. GAAP net income per diluted share is expected to be in the range of $2.39 to $2.44, up from the previous guidance range of $1.91 to $1.95. This assumes an effective income tax rate of 23%. Non-GAAP net income per diluted share is expected to be in the range of $3.50 to $3.55, up from the previous guidance range of $3.13 to $3.17. This assumes a non-GAAP effective income tax rate of 24%. Full year 2022 net income per diluted share estimates are based on approximately 39.4 million weighted average diluted shares outstanding.

Investor Conference Call

Qualys will host a conference call and live webcast to discuss its second quarter financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Monday, August 8, 2022. To access the conference call by phone, please register here and you will be provided with dial in details. 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 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 third 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 third 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 United States as well as globally. 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) and principal payments under finance lease obligations).

In computing non-GAAP financial measures, Qualys excludes the effects of stock-based compensation expense, amortization of intangible assets from acquisitions, and non-recurring items and the related 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 quarterly billings, 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) to assist investors and analysts in assessing its operating performance.

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 third quarter and full year 2022 is likely to have a significant impact on the Company’s GAAP net income per diluted share in the third quarter and full year 2022. 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.

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.


Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2022     2021     2022     2021  

Revenues

   $ 119,893     $ 99,702     $ 233,313     $ 196,458  

Cost of revenues (1)

     25,046       21,552       49,048       43,232  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     94,847       78,150       184,265       153,226  

Operating expenses:

        

Research and development (1)

     24,791       19,805       47,898       37,554  

Sales and marketing (1)

     23,730       17,770       43,872       35,759  

General and administrative (1)

     13,333       11,213       25,967       53,256  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     61,854       48,788       117,737       126,569  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     32,993       29,362       66,528       26,657  

Other income (expense), net:

        

Interest expense

     —         —         —         (4

Interest income

     839       567       1,357       1,313  

Other income (expense), net

     (1,710     (80     (2,420     (324
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     (871     487       (1,063     985  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     32,122       29,849       65,465       27,642  

Income tax provision

     5,526       8,707       13,459       6,272  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 26,596     $ 21,142     $ 52,006     $ 21,370  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share:

        

Basic

   $ 0.69     $ 0.54     $ 1.34     $ 0.55  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.67     $ 0.53     $ 1.31     $ 0.53  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in computing net income per share:

        

Basic

     38,738       39,099       38,864       39,154  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     39,689       40,077       39,844       40,253  
  

 

 

   

 

 

   

 

 

   

 

 

 

(1) Includes stock-based compensation as follows:

        

Cost of revenues

   $ 1,273     $ 841     $ 2,355     $ 1,716  

Research and development

     3,541       2,582       6,828       4,797  

Sales and marketing

     2,305       1,086       4,334       2,714  

General and administrative

     5,701       4,044       11,048       37,528  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stock-based compensation

   $ 12,820     $ 8,553     $ 24,565     $ 46,755  
  

 

 

   

 

 

   

 

 

   

 

 

 


Qualys, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

 

     June 30,
2022
    December 31,
2021
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 120,965     $ 137,328  

Short-term marketable securities

     298,124       267,960  

Accounts receivable, net

     97,692       108,998  

Prepaid expenses and other current assets

     34,959       32,112  
  

 

 

   

 

 

 

Total current assets

     551,740       546,398  

Long-term marketable securities

     80,122       111,198  

Property and equipment, net

     57,830       61,854  

Operating leases - right of use asset

     33,451       37,016  

Deferred tax assets, net

     35,426       25,087  

Intangible assets, net

     3,365       6,545  

Goodwill

     7,447       7,447  

Restricted cash

     1,200       1,200  

Other noncurrent assets

     18,430       17,814  
  

 

 

   

 

 

 

Total assets

   $ 789,011     $ 814,559  
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 2,132     $ 1,296  

Accrued liabilities

     37,987       32,504  

Deferred revenues, current

     275,725       257,872  

Operating lease liabilities, current

     11,545       12,608  
  

 

 

   

 

 

 

Total current liabilities

     327,389       304,280  

Deferred revenues, noncurrent

     28,358       32,753  

Operating lease liabilities, noncurrent

     31,335       35,914  

Other noncurrent liabilities

     5,091       4,898  
  

 

 

   

 

 

 

Total liabilities

     392,173       377,845  

Stockholders’ equity:

    

Common stock

     39       39  

Additional paid-in capital

     493,725       477,323  

Accumulated other comprehensive income (loss)

     (625     1,007  

Accumulated deficit

     (96,301     (41,655
  

 

 

   

 

 

 

Total stockholders’ equity

     396,838       436,714  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 789,011     $ 814,559  
  

 

 

   

 

 

 


Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(in thousands)

 

     Six Months Ended
June 30,
 
     2022     2021  

Cash flow from operating activities:

    

Net income

   $ 52,006     $ 21,370  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation and amortization expense

     17,552       17,869  

Bad debt expense

     297       152  

Loss on disposal of property and equipment

     5       12  

Stock-based compensation

     24,565       46,755  

Amortization of premiums on marketable securities

     1,158       2,029  

Deferred income taxes

     (10,861     (722

Changes in operating assets and liabilities:

    

Accounts receivable

     11,009       13,983  

Prepaid expenses and other assets

     (1,085     (6,014

Accounts payable

     917       947  

Accrued liabilities

     3,830       3,032  

Deferred revenues

     13,458       12,827  
  

 

 

   

 

 

 

Net cash provided by operating activities

     112,851       112,240  
  

 

 

   

 

 

 

Cash flow from investing activities:

    

Purchases of marketable securities

     (177,171     (201,411

Sales and maturities of marketable securities

     173,922       205,143  

Purchases of property and equipment

     (11,150     (12,911

Proceeds from disposal of property and equipment

     —         6  
  

 

 

   

 

 

 

Net cash used in investing activities

     (14,399     (9,173
  

 

 

   

 

 

 

Cash flow from financing activities:

    

Repurchase of common stock

     (117,813     (63,252

Proceeds from exercise of stock options

     9,073       4,438  

Payments for taxes related to net share settlement of equity awards

     (8,161     (21,017

Proceeds from issuance of common stock through employee stock purchase plan

     2,086       —    

Principal payments under finance lease obligations

     —         (90
  

 

 

   

 

 

 

Net cash used in financing activities

     (114,815     (79,921
  

 

 

   

 

 

 

Net increase in cash, cash equivalents and restricted cash

     (16,363     23,146  

Cash, cash equivalents and restricted cash at beginning of period

     138,528       75,332  
  

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

   $ 122,165     $ 98,478  
  

 

 

   

 

 

 


Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

ADJUSTED EBITDA

(Unaudited)

(in thousands)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2022     2021     2022     2021  

Net income

   $ 26,596     $ 21,142     $ 52,006     $ 21,370  

Depreciation and amortization of property and equipment

     7,097       7,145       14,372       14,578  

Amortization of intangible assets

     1,474       1,646       3,180       3,291  

Income tax provision

     5,526       8,707       13,459       6,272  

Stock-based compensation

     12,820       8,553       24,565       46,755  

Other income (expense), net

     871       (487     1,063       (985
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 54,384     $ 46,706     $ 108,645     $ 91,281  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin as a % of revenues

     45     47     47     46


Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2022     2021     2022     2021  

GAAP Cost of revenues

   $ 25,046     $ 21,552     $ 49,048     $ 43,232  

Less: Stock-based compensation

     (1,273     (841     (2,355     (1,716

Less: Amortization of intangible assets

     (1,389     (1,621     (3,009     (3,241
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Cost of revenues

   $ 22,384     $ 19,090     $ 43,684     $ 38,275  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Gross profit

   $ 94,847     $ 78,150     $ 184,265     $ 153,226  

Plus: Stock-based compensation

     1,273       841       2,355       1,716  

Plus: Amortization of intangible assets

     1,389       1,621       3,009       3,241  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Gross Profit

   $ 97,509     $ 80,612     $ 189,629     $ 158,183  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Research and development

   $ 24,791     $ 19,805     $ 47,898     $ 37,554  

Less: Stock-based compensation

     (3,541     (2,582     (6,828     (4,797

Less: Amortization of intangible assets

     (85     (25     (171     (50
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Research and development

   $ 21,165     $ 17,198     $ 40,899     $ 32,707  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Sales and marketing

   $ 23,730     $ 17,770     $ 43,872     $ 35,759  

Less: Stock-based compensation

     (2,305     (1,086     (4,334     (2,714
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Sales and marketing

   $ 21,425     $ 16,684     $ 39,538     $ 33,045  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP General and administrative

   $ 13,333     $ 11,213     $ 25,967     $ 53,256  

Less: Stock-based compensation

     (5,701     (4,044     (11,048     (37,528
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP General and administrative

   $ 7,632     $ 7,169     $ 14,919     $ 15,728  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Operating expenses

   $ 61,854     $ 48,788     $ 117,737     $ 126,569  

Less: Stock-based compensation

     (11,547     (7,712     (22,210     (45,039

Less: Amortization of intangible assets

     (85     (25     (171     (50
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Operating expenses

   $ 50,222     $ 41,051     $ 95,356     $ 81,480  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Income from operations

   $ 32,993     $ 29,362     $ 66,528     $ 26,657  

Plus: Stock-based compensation

     12,820       8,553       24,565       46,755  

Plus: Amortization of intangible assets

     1,474       1,646       3,180       3,291  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Income from operations

   $ 47,287     $ 39,561     $ 94,273     $ 76,703  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP Net income

   $ 26,596     $ 21,142     $ 52,006     $ 21,370  

Plus: Stock-based compensation

     12,820       8,553       24,565       46,755  

Plus: Amortization of intangible assets

     1,474       1,646       3,180       3,291  

Plus (Less): Tax adjustment

     (5,619     265       (8,917     (10,048
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Net income

   $ 35,271     $ 31,606     $ 70,834     $ 61,368  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Net income per share:

        

Basic

   $ 0.91     $ 0.81     $ 1.82     $ 1.57  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.89     $ 0.79     $ 1.78     $ 1.52  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in non-GAAP net income per share:

 

     

Basic

     38,738       39,099       38,864       39,154  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     39,689       40,077       39,844       40,253  
  

 

 

   

 

 

   

 

 

   

 

 

 


Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

FREE CASH FLOWS

(Unaudited)

(in thousands)

 

     Six Months Ended
June 30,
 
     2022     2021  

GAAP Cash flows provided by operating activities

   $ 112,851     $ 112,240  

Less:

    

Purchases of property and equipment, net of proceeds from disposal

     (11,150     (12,905

Principal payments under finance lease obligations

     —         (90
  

 

 

   

 

 

 

Non-GAAP Free cash flows

   $ 101,701     $ 99,245  
  

 

 

   

 

 

 


Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

CALCULATED CURRENT BILLINGS

(Unaudited)

(in thousands)

 

     Three Months Ended
June 30,
 
     2022     2021  

GAAP Revenue

   $ 119,893     $ 99,702  

Plus: Current deferred revenue at June 30

     275,725       228,180  

Less: Current deferred revenue at March 31

     (266,934     (218,898
  

 

 

   

 

 

 

Non-GAAP Calculated current billings

   $ 128,684     $ 108,984  
  

 

 

   

 

 

 

Calculated current billings growth compared to same quarter of prior year

     18     26