0001107843-24-000016 | 10-Q | XBRL Viewer

Segment and Geographic Area Information (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

Revenue by geographic area, based on the customer's billing address, is as follows:


	Three Months Ended March 31,
	2024		2023

	(in thousands)
United States	$	86,436	$	78,016
Foreign	59,369		52,667
Total revenues	$	145,805	$	130,683

Long-lived assets, which consist of Property and equipment, net and Operating leases - right of use asset, by geographic area, are as follows:


	March 31, 2024		December 31, 2023

	(in thousands)
United States	$	39,325	$	42,622
India	20,223		9,952
Rest of world	2,014		2,416
Total Long-lived Assets	$	61,562	$	54,990

Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

The Company leases certain offices, computer equipment and its shared cloud platform facilities under non-cancelable operating leases for varying periods through 2029. While under the Company's lease agreements the Company has options to extend its certain leases, the Company has not included renewal options in determining the lease terms for calculating its lease liabilities, as these options are not reasonably certain of being exercised. Lease expense was $3.8 million and $4.0 million for the three months ended March 31, 2024 and 2023, respectively.

Supplemental cash flow information related to operating leases was as follows:


	Three Months Ended March 31,
	2024		2023

	(in thousands)
Cash payments included in the measurement of lease liabilities	$	3,621	$	3,905
Lease liabilities arising from obtaining right-of-use assets	$	12,347	$	—

The weighted average remaining lease term and the weighted average discount rate of the Company's operating leases were as follows:


	March 31, 2024		December 31, 2023
Weighted average remaining lease term (years)	4.1		3.1
Weighted average discount rate	6.7	%	5.2	%

Maturities of the Company's operating lease liabilities as of March 31, 2024 are as follows:


	(in thousands)
2024 (remaining nine months)	$	9,402
2025	9,862
2026	8,586
2027	8,532
2028	5,644
2029 and thereafter	1,741
Total minimum lease payments	43,767
Less: interest	(5,937)
Present value of net minimum lease payments	$	37,830

The operating lease payments in the table above exclude approximately $19.4 million of legally binding minimum lease payments for a lease signed during the three months ended March 31, 2024 that has yet to commence.

Fair Value of Financial Instruments - Summary of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Foreign currency forward contracts, asset	$ 590	$ 111
Foreign currency forward contracts, liability	677	1,986
Designated as Hedging Instrument
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Foreign currency forward contracts, asset	552	63
Foreign currency forward contracts, liability	544	1,502
Not Designated as Hedging Instrument
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Foreign currency forward contracts, asset	38	48
Foreign currency forward contracts, liability	$ 133	$ 484

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 39,731	$ 29,105

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Stockholders' Equity and Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Schedule of Stock Option Activity

A summary of the Company’s stock option activity during the three months ended March 31, 2024 is as follows:


	Outstanding Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in thousands)			(Years)	(in thousands)
Balance as of December 31, 2023	1,447	$	97.98	6.5	$	142,302
Granted	89	$	168.24
Exercised	(46)	$	60.33
Canceled	(26)	$	119.79
Balance as of March 31, 2024	1,464	$	103.02	6.6	$	93,624
Vested and expected to vest as of March 31, 2024	1,293	$	98.39	6.3	$	88,616
Exercisable as of March 31, 2024	771	$	74.64	4.7	$	71,126

Schedule of RSU Activity

A summary of the Company’s RSU activity, inclusive of PRSU activity, during the three months ended March 31, 2024 is as follows:


	Outstanding RSUs		Weighted Average Grant Date Fair Value Per Share
	(in thousands)
Balance as of December 31, 2023	1,074	(1)	$	133.60
Granted	187	(2)	$	168.24
Vested	(149)	(3)	$	143.89
Forfeited	(86)	(4)	$	135.63
Balance as of March 31, 2024	1,026	(5)	$	140.47
Outstanding and expected to vest as of March 31, 2024	815		$	138.10

(1)Included 139 thousand PRSUs granted to certain executive officers in 2023, 2022 and 2021.

(2)Included 156 thousand PRSUs granted to certain executive officers in the three months ended March 31, 2024.

(3)Included 64 thousand PRSUs granted to certain executive officers in 2023, 2022 and 2021.

(4)Included 59 thousand PRSUs granted to certain executive officers in 2023, 2022 and 2021.

(5)Included 172 thousand PRSUs granted to certain executive officers in 2024, 2023, 2022 and 2021.

Schedule of Stock-Based Compensation Expense in Statements of Operations

The following table shows a summary of the stock-based compensation expense included in the condensed consolidated statements of operations:


	Three Months Ended March 31,
	2024		2023

	(in thousands)
Cost of revenues	$	2,020	$	1,592
Research and development	5,303		4,960
Sales and marketing	3,739		2,454
General and administrative	7,969		7,027
Total stock-based compensation, net of amounts capitalized (1)	$	19,031	$	16,033

(1)Total stock-based compensation expense capitalized was de minimis during the three months ended March 31, 2024.

Schedule of Share Repurchase Program

The Company's share repurchase program was authorized by the board of directors as follows:


Announcement Date	Authorized Dollar Value
	(in millions)
February 12, 2018	$	100.0
October 30, 2018	100.0
October 30, 2019	100.0
May 7, 2020	100.0
February 10, 2021	100.0
November 3, 2021	200.0
May 4, 2022	200.0
February 9, 2023	100.0
February 7, 2024	200.0
Total as of March 31, 2024	$	1,200.0

Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 253,084	$ 251,127
Less: accumulated depreciation and amortization	(222,893)	(218,528)
Property and equipment, net	30,191	32,599
Computer equipment
Property, Plant and Equipment [Line Items]
Computer equipment	180,860	179,002
Computer software
Property, Plant and Equipment [Line Items]
Total property and equipment	26,139	26,133
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	20,924	20,924
Scanner appliances
Property, Plant and Equipment [Line Items]
Total property and equipment	18,449	18,369
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 6,712	$ 6,699

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, net of allowance	$ 1,099	$ 778
Preferred stock, par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000	20,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, shares issued (in shares)	36,962	36,909
Common stock, shares outstanding (in shares)	36,962	36,909

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment, Net

Property and equipment, net, consists of the following:


	March 31, 2024		December 31, 2023

	(in thousands)
Computer equipment	$	180,860	$	179,002
Computer software	26,139		26,133
Leasehold improvements	20,924		20,924
Scanner appliances	18,449		18,369
Furniture, fixtures and equipment	6,712		6,699
Total property and equipment	253,084		251,127
Less: accumulated depreciation and amortization	(222,893)		(218,528)
Property and equipment, net	$	30,191	$	32,599

Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2024

Revenue Recognition [Abstract]

Revenue from Contracts with Customers

The Company records deferred revenue when cash payments are received or due in advance of its performance obligations offset by revenue recognized in the period. Revenues of $131.0 million and $113.8 million were recognized during the three months ended March 31, 2024 and 2023, respectively, which amounts were included in the deferred revenue balances of $364.9 million and $317.2 million as of December 31, 2023 and 2022, respectively.

The Company's payment terms vary by the type and location of its customers. The term between invoicing and when payment is due is not significant. In certain circumstances, based on the credit quality of the customer, the Company requires payment before the products or services are delivered to the customer.

The following table sets forth the expected revenue from all remaining performance obligations as of March 31, 2024:


	(in thousands)
2024 (remaining nine months)	$	163,231
2025	141,528
2026	63,966
2027	7,421
2028	496
2029 and thereafter	110
Total	$	376,752

Revenues allocated to remaining performance obligations represents the transaction price of noncancelable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals. The Company applied the short-term contract exemption to exclude the remaining performance obligations that are part of a contract that has an original expected duration of one year or less.

From time to time, the Company enters into contracts with customers that extend beyond one year, with certain of its customers electing to pay for more than one year of services upon contract execution. The Company concluded that these contracts did not contain a financing component.

Revenues by sales channel are as follows:


	Three Months Ended
	March 31,
	2024		2023

	(in thousands)
Direct	$	80,126	$	75,093
Partner	65,679		55,590
Total	$	145,805	$	130,683

The Company utilizes partners to enable and accelerate the adoption of its cloud platform by increasing its distribution capabilities and market awareness of its cloud platform as well as by targeting geographic regions outside the reach of its direct sales force. The Company's channel partners maintain relationships with their customers throughout the territories in which they operate and provide their customers with services and third-party solutions to help meet those customers’ evolving security and compliance requirements. As such, these partners may offer the Company's IT security and compliance solutions in conjunction with one or more of their own products or services and act as a conduit through which the Company can connect with these prospective customers to offer its solutions. For sales involving a channel partner, the channel partner engages with the prospective customer directly and involves the Company's sales team as needed to assist in developing and closing an order. When a channel partner secures a sale, the Company sells the associated subscription to the channel partner who in turn resells the subscription to the customer. Sales to channel partners are made at a discount and revenues are recorded at this discounted price over the subscription terms. The Company does not have any influence or specific knowledge of its partners' selling terms with their customers. See Note 11, "Segment and Geographic Area Information" for disaggregation of revenue by geographic area.

Deferred costs to obtain contracts are as follows:


	March 31, 2024		December 31, 2023

	(in thousands)
Current	$	6,052	$	5,858
Noncurrent	$	12,141	$	11,844

For the three months ended March 31, 2024 and 2023, the Company recognized $1.6 million and $1.4 million, respectively, of amortization expense relating to deferred costs to obtain contracts in sales and marketing expense in the condensed consolidated statements of operations. During the same periods, there was no impairment loss related to the deferred costs to obtain contracts.

As of December 31, 2022, the net carrying value of the Company’s accounts receivable, current deferred revenues, and noncurrent deferred revenues were $121.8 million, $293.7 million and $23.5 million, respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Description of Business	Description of Business Qualys, Inc. (the “Company”, "we", "us", "our") was incorporated in the state of Delaware on December 30, 1999. The Company is headquartered in Foster City, California and has wholly-owned subsidiaries throughout the world. The Company is a leading provider of cloud-based information technology ("IT"), security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber-attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on Qualys' Enterprise TruRisk Platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the financial position, results of operations and cash flows for the interim periods. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2024 or for any other future annual or interim periods. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 22, 2024.
Use of Estimates	Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, allowance for credit loss, the valuation of goodwill and intangible assets, leases, stock-based compensation and income tax provision. Actual results could differ from those estimates and such differences may be material to the accompanying unaudited condensed consolidated financial statements.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07 requiring enhanced segment disclosures. The ASU requires disclosure of significant segment expenses regularly provided to the chief operating decision maker ("CODM") included within segment operating profit or loss. Additionally, the ASU requires a description of how the CODM utilizes segment operating profit or loss to assess segment performance. The requirements of the ASU are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company's annual reporting requirements will be effective for fiscal 2024 and interim reporting requirements will be effective beginning with the first quarter of fiscal 2025. Early adoption is permitted and retrospective application is required for all periods presented. The Company is in the process of analyzing the impact of the ASU on related disclosures. In December 2023, the FASB issued ASU 2023-09 requiring improvements to income tax disclosures. The new ASU requires disclosure of disaggregated information about the effective tax rate and income taxes paid. The requirements of the ASU are effective for annual periods beginning after December 15, 2024 and are to be applied on a prospective basis. Companies can choose to early adopt and apply the guidance retrospectively. The Company is in the process of analyzing the impact of the ASU on related disclosures. There have been no material changes to the Company’s significant accounting policies set forth in "Note 1" of Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The computations for basic and diluted net income per share are as follows:


	Three Months Ended March 31,
	2024		2023

	(in thousands, except per share data)
Numerator:
Net income	$	39,731	$	29,105
Denominator:
Basic weighted average shares	36,955		37,068
Effect of potentially dilutive shares:
Stock options	471		489
Restricted stock units	292		110
Employee stock purchase plan	5		2
Diluted weighted average shares	37,723		37,669
Net income per share:
Basic	$	1.08	$	0.79
Diluted	$	1.05	$	0.77

Schedule of Potentially Dilutive Shares Excluded from Diluted Net Income Per Share Calculation

Potentially dilutive shares not included in the calculation of diluted net income per share because doing so would be anti-dilutive are as follows:


	Three Months Ended March 31,
	2024	2023

	(in thousands)
Stock options	325	990
Restricted stock units	—	365
Employee stock purchase plan	—	14
Total anti-dilutive shares	325	1,369

Stockholders' Equity and Stock-based Compensation - Share-based Compensation and Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Outstanding Options
Beginning balance (in shares)	1,447
Granted (in shares)	89
Exercised (in shares)	(46)
Canceled (in shares)	(26)
Ending balance (in shares)	1,464	1,447
Weighted Average Exercise Price
Beginning balance (in USD per share)	$ 97.98
Granted (in USD per share)	168.24
Exercised (in USD per share)	60.33
Canceled (in USD per share)	119.79
Ending balance (in USD per share)	$ 103.02	$ 97.98
Stock Options Additional Disclosures
Vested and expected to vest (in shares)	1,293
Vested and expected to vest (in USD per share)	$ 98.39
Weighted average remaining contractual life, balance (in years)	6 years 7 months 6 days	6 years 6 months
Weighted average remaining contractual life, vested and expected to vest (in years)	6 years 3 months 18 days
Aggregate Intrinsic Value	$ 93,624	$ 142,302
Vested and expected to vest as of March 31, 2024	$ 88,616
Outstanding options, exercisable (in shares)	771
Weighted average exercise price, exercisable (in USD per share)	$ 74.64
Weighted average remaining contractual life, exercisable (in years)	4 years 8 months 12 days
Exercisable as of March 31, 2024	$ 71,126

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

The components and changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2024 and 2023 were as follows:


	Available-for-sale debt securities		Cash flow hedges		Total

	(in thousands)
Balances at December 31, 2023	$	108	$	(1,812)	$	(1,704)
Change in unrealized gains (losses) during the period	(436)		1,222		786
Amount reclassified into income during the period	—		218		218
Tax effect	29		(336)		(307)
Net change during the period	(407)		1,104		697
Balances at March 31, 2024	$	(299)	$	(708)	$	(1,007)











Balances at December 31, 2022	$	(2,705)	$	758	$	(1,947)
Change in unrealized gains (losses) during the period	1,131		(443)		688
Amount reclassified into income during the period	—		(534)		(534)
Tax effect	—		222		222
Net change during the period	1,131		(755)		376
Balances at March 31, 2023	$	(1,574)	$	3	$	(1,571)

The effects on income before income taxes of amounts reclassified from AOCI to the condensed consolidated statements of operations were as follows:


	Three Months Ended March 31,
	2024		2023

	(in thousands)
Reclassification of AOCI - Cash flow hedges
Revenues	$	(279)	$	1,136
Cost of revenues	15		(139)
Research and development	37		(383)
Sales and marketing	3		(23)
General and administrative	6		(57)
Total	$	(218)	$	534

There was no reclassification of AOCI to other income (expense), net related to Available-for-sale debt securities during the three months ended March 31, 2024 and 2023.

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022		37,362
Beginning balance at Dec. 31, 2022	$ 289,129	$ 37	$ 512,486	$ (1,947)	$ (221,447)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	29,105				29,105
Other comprehensive income, net of tax	376			376
Issuance of common stock upon exercise of stock options (in shares)		61
Issuance of common stock upon exercise of stock options	2,328		2,328
Repurchase of common stock (in shares)		(584)
Repurchase of common stock	(67,032)		(7,014)		(60,018)
Issuance of common stock upon vesting of restricted stock units (in shares)		108
Taxes related to net share settlement of equity awards (in shares)		(43)
Taxes related to net share settlement of equity awards	(5,105)		(5,105)
Issuance of common stock through employee stock purchase plan (in shares)		29
Issuance of common stock through employee stock purchase plan	2,988		2,988
Stock-based compensation	16,033		16,033
Ending balance (in shares) at Mar. 31, 2023		36,933
Ending balance at Mar. 31, 2023	267,822	$ 37	521,716	(1,571)	(252,360)
Beginning balance (in shares) at Dec. 31, 2023		36,909
Beginning balance at Dec. 31, 2023	368,174	$ 37	597,921	(1,704)	(228,080)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	39,731				39,731
Other comprehensive income, net of tax	$ 697			697
Issuance of common stock upon exercise of stock options (in shares)	46	46
Issuance of common stock upon exercise of stock options	$ 2,770		2,770
Repurchase of common stock (in shares)		(105)
Repurchase of common stock	(18,029)		(627)		(17,402)
Issuance of common stock upon vesting of restricted stock units (in shares)		149
Taxes related to net share settlement of equity awards (in shares)		(66)
Taxes related to net share settlement of equity awards	(11,808)		(11,808)
Issuance of common stock through employee stock purchase plan (in shares)		29
Issuance of common stock through employee stock purchase plan	3,608		3,608
Stock-based compensation	19,059		19,059
Ending balance (in shares) at Mar. 31, 2024		36,962
Ending balance at Mar. 31, 2024	$ 404,202	$ 37	$ 610,923	$ (1,007)	$ (205,751)

Fair Value of Financial Instruments - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	$ 336,793	$ 333,113
Unrealized Gains	194	525
Unrealized Losses	(494)	(390)
Fair Value	336,493	333,248
Cash, excluded	206,900	149,000
Cash equivalents
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	66,917	54,707
Unrealized Gains	0	4
Unrealized Losses	(4)	0
Fair Value	66,913	54,711
Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	180,127	222,168
Unrealized Gains	16	85
Unrealized Losses	(256)	(360)
Fair Value	179,887	221,893
Long-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	89,749	56,238
Unrealized Gains	178	436
Unrealized Losses	(234)	(30)
Fair Value	89,693	56,644
Commercial paper \| Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	45,752	54,254
Unrealized Gains	1	32
Unrealized Losses	(35)	(7)
Fair Value	45,718	54,279
Corporate bonds \| Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	28,822	23,013
Unrealized Gains	8	1
Unrealized Losses	(111)	(149)
Fair Value	28,719	22,865
Corporate bonds \| Long-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	58,771	33,337
Unrealized Gains	94	285
Unrealized Losses	(206)	(22)
Fair Value	58,659	33,600
Asset-backed securities \| Long-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	12,074	13,785
Unrealized Gains	72	102
Unrealized Losses	(2)	(6)
Fair Value	12,144	13,881
U.S. Treasury and government agencies \| Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	105,553	144,901
Unrealized Gains	7	52
Unrealized Losses	(110)	(204)
Fair Value	105,450	144,749
U.S. Treasury and government agencies \| Long-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	18,904	9,116
Unrealized Gains	12	49
Unrealized Losses	(26)	(2)
Fair Value	18,890	9,163
Money market funds \| Cash equivalents
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	11,466	87
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	11,466	87
U.S. Treasury and government agencies \| Cash equivalents
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	53,851	54,620
Unrealized Gains	0	4
Unrealized Losses	(3)	0
Fair Value	53,848	$ 54,624
Commercial paper \| Cash equivalents
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	1,600
Unrealized Gains	0
Unrealized Losses	(1)
Fair Value	$ 1,599

Segment and Geographic Area Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 segment
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 273,783	$ 203,665
Restricted cash	0	1,500
Short-term marketable securities	179,887	221,893
Accounts receivable, net of allowance of $1,099 and $778 as of March 31, 2024 and December 31, 2023, respectively	115,629	146,226
Prepaid expenses and other current assets	36,112	26,714
Total current assets	605,411	599,998
Long-term marketable securities	89,693	56,644
Property and equipment, net	30,191	32,599
Operating leases - right of use asset	31,371	22,391
Deferred tax assets, net	66,565	62,761
Intangible assets, net	8,943	9,715
Goodwill	7,447	7,447
Noncurrent restricted cash	1,200	1,200
Other noncurrent assets	20,961	19,863
Total assets	861,782	812,618
Current liabilities:
Accounts payable	645	988
Accrued liabilities	48,246	43,096
Deferred revenues, current	332,128	333,267
Operating lease liabilities, current	10,046	11,857
Total current liabilities	391,065	389,208
Deferred revenues, noncurrent	31,311	31,671
Operating lease liabilities, noncurrent	27,784	16,885
Other noncurrent liabilities	7,420	6,680
Total liabilities	457,580	444,444
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock: $0.001 par value; 20,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023	0	0
Common stock: $0.001 par value; 1,000,000 shares authorized, 36,962 and 36,909 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	37	37
Additional paid-in capital	610,923	597,921
Accumulated other comprehensive loss	(1,007)	(1,704)
Accumulated deficit	(205,751)	(228,080)
Total stockholders’ equity	404,202	368,174
Total liabilities and stockholders’ equity	$ 861,782	$ 812,618

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenues	$ 145,805	$ 130,683
Cost of revenues	27,198	26,954
Gross profit	118,607	103,729
Operating expenses:
Research and development	27,530	27,795
Sales and marketing	29,408	25,628
General and administrative	16,908	15,128
Total operating expenses	73,846	68,551
Income from operations	44,761	35,178
Other income (expense), net:
Interest income	6,123	2,397
Other expense, net	(1,399)	(216)
Total other income, net	4,724	2,181
Income before income taxes	49,485	37,359
Income tax provision	9,754	8,254
Net income	$ 39,731	$ 29,105
Net income per share:
Basic (in USD per share)	$ 1.08	$ 0.79
Diluted (in USD per share)	$ 1.05	$ 0.77
Weighted average shares used in computing net income per share:
Basic (in shares)	36,955	37,068
Diluted (in shares)	37,723	37,669

Leases- Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Weighted average remaining lease term (years)	4 years 1 month 6 days	3 years 1 month 6 days
Weighted average discount rate	6.70%	5.20%

Net Income Per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Net Income Per Share

The computations for basic and diluted net income per share are as follows:


	Three Months Ended March 31,
	2024		2023

	(in thousands, except per share data)
Numerator:
Net income	$	39,731	$	29,105
Denominator:
Basic weighted average shares	36,955		37,068
Effect of potentially dilutive shares:
Stock options	471		489
Restricted stock units	292		110
Employee stock purchase plan	5		2
Diluted weighted average shares	37,723		37,669
Net income per share:
Basic	$	1.08	$	0.79
Diluted	$	1.05	$	0.77

Potentially dilutive shares not included in the calculation of diluted net income per share because doing so would be anti-dilutive are as follows:


	Three Months Ended March 31,
	2024	2023

	(in thousands)
Stock options	325	990
Restricted stock units	—	365
Employee stock purchase plan	—	14
Total anti-dilutive shares	325	1,369

Leases - Minimum Annual Lease Payments (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Leases [Abstract]
2024 (remaining nine months)	$ 9,402
2025	9,862
2026	8,586
2027	8,532
2028	5,644
2029 and thereafter	1,741
Total minimum lease payments	43,767
Less: interest	(5,937)
Present value of net minimum lease payments	$ 37,830

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For certain of the Company’s financial instruments, including certain cash equivalents, accounts receivable, accounts payable and accrued liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances.

The Company measures and reports certain cash equivalents, marketable securities, derivative foreign currency forward contracts at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities.

Level 2 - Valuations based on other than quoted prices in active markets for identical assets and liabilities, including quoted prices for identical assets or liabilities in less active or inactive markets, quoted prices for similar assets or liabilities in active markets, or inputs other than quoted prices that are observable for substantially the full term of the assets or liabilities.

Level 3 - Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.

The Company's financial instruments consist of assets and liabilities measured using Level 1 and 2 inputs. Level 1 assets include a highly liquid money market fund, which is valued using unadjusted quoted prices that are available in an active market for an identical asset. Level 2 assets include fixed-income U.S. Treasury and government agency securities, commercial paper, corporate bonds, asset-backed securities and derivative financial instruments consisting of foreign currency forward contracts. The securities, bonds and commercial paper are valued using prices from independent pricing services based on quoted prices of identical instruments in less active or inactive markets, quoted prices of similar instruments in active markets, or industry models using data inputs such as interest rates and prices that can be directly observed or corroborated in active markets. The foreign currency forward contracts are valued using observable inputs, such as quotations on forward foreign exchange points and foreign interest rates.

The following table sets forth by level within the fair value hierarchy the fair value of the Company's financial assets and liabilities measured at fair value on a recurring basis:


	March 31, 2024
	Level 1		Level 2		Fair Value

	(in thousands)
Money market funds	$	11,466	$	—	$	11,466
Commercial paper	—		47,317		47,317
U.S. Treasury and government agencies	—		178,188		178,188
Corporate bonds	—		87,378		87,378
Asset-backed securities	—		12,144		12,144
Foreign currency forward contracts	—		590		590
Total assets	$	11,466	$	325,617	$	337,083
Foreign currency forward contracts	$	—	$	677	$	677
Total liabilities	$	—	$	677	$	677


	December 31, 2023
	Level 1		Level 2		Fair Value

	(in thousands)
Money market funds	$	87	$	—	$	87
Commercial paper	—		54,279		54,279
U.S. Treasury and government agencies	—		208,536		208,536

Corporate bonds	—		56,465		56,465
Asset-backed securities	—		13,881		13,881
Foreign currency forward contracts	—		111		111
Total assets	$	87	$	333,272	$	333,359
Foreign currency forward contracts	$	—	$	1,986	$	1,986
Total liabilities	$	—	$	1,986	$	1,986

There were no transfers between Level 1, Level 2 and Level 3 categories during the three months ended March 31, 2024 and 2023.

Cash equivalent and investments

The Company's cash equivalents and marketable securities consist of the following:


	March 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

	(in thousands)
Cash equivalents: (1)
Money market funds	$	11,466	$	—	$	—	$	11,466
Commercial paper	1,600		—		(1)		1,599
U.S. Treasury and government agencies	53,851		—		(3)		53,848
Total	66,917		—		(4)		66,913
Short-term marketable securities:
Commercial paper	45,752		1		(35)		45,718
Corporate bonds	28,822		8		(111)		28,719

U.S. Treasury and government agencies	105,553		7		(110)		105,450
Total	180,127		16		(256)		179,887
Long-term marketable securities:
Corporate bonds	58,771		94		(206)		58,659
Asset-backed securities	12,074		72		(2)		12,144
U.S. Treasury and government agencies	18,904		12		(26)		18,890
Total	89,749		178		(234)		89,693
Total	$	336,793	$	194	$	(494)	$	336,493

(1)Excludes cash of $206.9 million.


	December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

	(in thousands)
Cash equivalents: (2)
Money market funds	$	87	$	—	$	—	$	87
U.S. Treasury and government agencies	54,620		4		—		54,624
Total	54,707		4		—		54,711
Short-term marketable securities:
Commercial paper	54,254		32		(7)		54,279
Corporate bonds	23,013		1		(149)		22,865

U.S. Treasury and government agencies	144,901		52		(204)		144,749

Total	222,168		85		(360)		221,893
Long-term marketable securities:
Corporate bonds	33,337		285		(22)		33,600
Asset-backed securities	13,785		102		(6)		13,881
U.S. Treasury and government agencies	9,116		49		(2)		9,163
Total	56,238		436		(30)		56,644
Total	$	333,113	$	525	$	(390)	$	333,248

(2)Excludes cash of $149.0 million.

The following table summarizes the gross unrealized losses and fair value of the Company's marketable securities that were in an unrealized loss position aggregated by length of time:


	March 31, 2024
	Less than 12 months				12 months or longer				Total
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
	(in thousands)
Commercial paper	$	44,391	$	(36)	$	—	$	—	$	44,391	$	(36)
Asset-backed securities	—		—		687		(2)		687		(2)
Corporate bonds	45,533		(233)		8,705		(84)		54,238		(317)
U.S. Treasury and government agencies	142,202		(65)		12,864		(74)		155,066		(139)
Total	$	232,126	$	(334)	$	22,256	$	(160)	$	254,382	$	(494)


	December 31, 2023
	Less than 12 months				12 months or longer				Total
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
	(in thousands)
Commercial paper	$	24,838	$	(7)	$	—	$	—	$	24,838	$	(7)
Asset-backed securities	—		—		1,485		(6)		1,485		(6)
Corporate bonds	—		—		20,717		(171)		20,717		(171)
U.S. Treasury and government agencies	43,373		(18)		18,172		(188)		61,545		(206)
Total	$	68,211	$	(25)	$	40,374	$	(365)	$	108,585	$	(390)

The Company considered the extent to which any unrealized losses on its marketable securities were driven by credit risk and other factors, including market risk, and if it is more-likely-than-not that the Company would have to sell the security before the recovery of the amortized cost basis. At March 31, 2024 and December 31, 2023, the unrealized losses related to its marketable securities were due to rising market interest rates compared to when the investments were initiated. The Company does not believe the unrealized losses represent credit risk, and the Company does not intend to sell any of the securities in an unrealized loss position and it is not likely that the Company would be required to sell these securities before recovery of their amortized cost basis, which may be at maturity. Thus, no credit loss was recognized for the Company's marketable securities for the three months ended March 31, 2024 and 2023.

The following summarizes the fair value of marketable securities by contractual maturity:


	March 31, 2024
	Amortized Cost		Fair Value

	(in thousands)
Due within One Year	$	247,044	$	246,801
Due after One Year through Two Years	49,810		49,762
Mature over Two Years	27,865		27,786
Asset-backed securities	12,074		12,144
Total	$	336,793	$	336,493

Non-Marketable Securities

During the fiscal year ended December 31, 2018, the Company invested $2.5 million in preferred stock of a privately-held company. The fair value of the investment is not readily available, and there are no quoted market prices for the investment. The Company accounts for the investment at cost less impairment and will measure the investment at fair value when the Company identifies observable price changes. The investment is assessed for impairment whenever events or changes in circumstances indicate that the fair value of the investment is less than carrying value. During the second quarter of 2023, the Company identified an observable price change in the investment and recognized an immaterial unrealized loss in other income (expense), net of the condensed consolidated statement of operations. The investment is included in other noncurrent assets on the condensed consolidated balance sheets. The Company has not received any dividends from the investment.

Derivative Financial Instruments

Designated cash flow hedges

The Company enters into foreign currency forward contracts to reduce the risk of variability in future cash flow due to foreign currency exchange rate fluctuation from certain forecasted subscription revenue orders billed in British Pound ("GBP") and Euro ("EUR") and operating expenses incurred in Indian Rupee ("INR"), which are designated as cash flow hedges. Hedge effectiveness is assessed at inception and at each reporting period utilizing regression analysis. Unrealized foreign exchange gains or losses related to those designated cash flow hedge contracts are recorded in accumulated other comprehensive income ("AOCI") and will be reclassified into revenues or operating expenses, respectively, in the same periods when the hedged transactions are recognized in earnings.

As of March 31, 2024, the Company had designated cash flow hedge forward contracts with notional amounts of €46.1 million, £16.0 million and Rs.4,068.0 million. As of December 31, 2023, the Company had designated cash flow hedge forward contracts with notional amounts of €48.5 million, £14.6 million and Rs.4,042.0 million.

As of March 31, 2024, a net unrealized loss of $0.8 million before tax on the foreign currency forward contracts for GBP and EUR reported in AOCI is expected to be reclassified into revenue within the next 12 months. As of March 31, 2024, an immaterial amount of unrealized loss before tax on the foreign currency forward contracts for INR reported in AOCI is expected to be reclassified into operating expenses within the next 12 months.

Non-designated forward contracts

The Company also uses foreign currency forward contracts to hedge certain foreign currency denominated assets or liabilities, which are not designated as cash flow hedges. Unrealized foreign exchange gain or losses related to the non-designated forward contracts are recorded in other income (expenses), net and offset the foreign exchange gain or loss on the underlying net monetary assets or liabilities.

As of March 31, 2024, the Company had non-designated forward contracts with notional amounts of €10.7 million, £8.6 million, Rs.990.0 million, and Canadian Dollar ("C$" or "CAD") 1.0 million. As of December 31, 2023, the Company had non-designated forward contracts with notional amounts of €19.2 million, £6.0 million, Rs.440.0 million, and C$1.0 million.

The following summarizes the fair value of derivative financial instruments as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023

	(in thousands)
Assets
Foreign currency forward contracts designated as cash flow hedge	$	552	$	63
Foreign currency forward contracts not designated as hedging instruments	38		48
Total	$	590	$	111
Liabilities
Foreign currency forward contracts designated as cash flow hedge	$	544	$	1,502
Foreign currency forward contracts not designated as hedging instruments	133		484
Total	$	677	$	1,986

The Company presents its derivative assets and derivative liabilities at gross fair values in the condensed consolidated balance sheets. However, under the master netting agreements with the respective counterparties of the foreign exchange contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. The potential offset to both assets and liabilities under the right of set-off associated with the Company's foreign currency exchange contracts are immaterial as of March 31, 2024 and December 31, 2023. The derivatives held by the Company are not subject to any credit contingent features negotiated with its counterparties. The Company is not required to pledge nor is entitled to receive cash collateral related to the above contracts. The counterparties to these derivatives are large, global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material.

The following summarizes the gains (losses) recognized from forward contracts and other foreign currency transactions in other income (expense), net in the condensed consolidated statements of operations:


	Three Months Ended March 31,
	2024		2023

	(in thousands)
Net gains from non-designated forward contracts	$	512	$	259
Other foreign currency transactions losses	(1,941)		(425)
Total foreign exchange losses, net	$	(1,429)	$	(166)

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Supplemental Cash Flow Information for Operating Leases

Supplemental cash flow information related to operating leases was as follows:


	Three Months Ended March 31,
	2024		2023

	(in thousands)
Cash payments included in the measurement of lease liabilities	$	3,621	$	3,905
Lease liabilities arising from obtaining right-of-use assets	$	12,347	$	—

Schedule of the Average Remaining Lease Term and the Weighted Average Discount Rate of Operating Leases

The weighted average remaining lease term and the weighted average discount rate of the Company's operating leases were as follows:


	March 31, 2024		December 31, 2023
Weighted average remaining lease term (years)	4.1		3.1
Weighted average discount rate	6.7	%	5.2	%

Schedule of Lease Maturities

Maturities of the Company's operating lease liabilities as of March 31, 2024 are as follows:


	(in thousands)
2024 (remaining nine months)	$	9,402
2025	9,862
2026	8,586
2027	8,532
2028	5,644
2029 and thereafter	1,741
Total minimum lease payments	43,767
Less: interest	(5,937)
Present value of net minimum lease payments	$	37,830

Segment and Geographic Area Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment and Geographic Area Information

Under ASC 280 Segment Reporting, operating segments are defined as components of an entity about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in one segment and has only one reportable segment. The Company’s chief operating decision maker is the Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States.

Revenue by geographic area, based on the customer's billing address, is as follows:


	Three Months Ended March 31,
	2024		2023

	(in thousands)
United States	$	86,436	$	78,016
Foreign	59,369		52,667
Total revenues	$	145,805	$	130,683

Long-lived assets, which consist of Property and equipment, net and Operating leases - right of use asset, by geographic area, are as follows:


	March 31, 2024		December 31, 2023

	(in thousands)
United States	$	39,325	$	42,622
India	20,223		9,952
Rest of world	2,014		2,416
Total Long-lived Assets	$	61,562	$	54,990

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Fair Value of Financial Instruments - Amounts Recognized In Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Net gains from non-designated forward contracts	$ 512	$ 259
Other foreign currency transactions losses	(1,941)	(425)
Total foreign exchange losses, net	$ (1,429)	$ (166)

Net Income Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income	$ 39,731	$ 29,105
Denominator:
Basic weighted average shares (in shares)	36,955	37,068
Stock options (in shares)	471	489
Retired stock units (in shares)	292	110
Employee stock purchase plan (in shares)	5	2
Diluted weighted average shares (in shares)	37,723	37,669
Net income per share:
Basic (in USD per share)	$ 1.08	$ 0.79
Diluted (in USD per share)	$ 1.05	$ 0.77

Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible asset amortization expense	$ 0.8	$ 0.8

Accumulated Other Comprehensive Income (Loss) - Components and Changes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 368,174	$ 289,129
Other comprehensive income, net of tax	697	376
Ending balance	404,202	267,822
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,704)	(1,947)
Change in unrealized gains (losses) during the period	786	688
Amount reclassified into income during the period	218	(534)
Tax effect	(307)	222
Other comprehensive income, net of tax	697	376
Ending balance	(1,007)	(1,571)
Available-for-sale debt securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	108	(2,705)
Change in unrealized gains (losses) during the period	(436)	1,131
Amount reclassified into income during the period	0	0
Tax effect	29	0
Other comprehensive income, net of tax	(407)	1,131
Ending balance	(299)	(1,574)
Cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,812)	758
Change in unrealized gains (losses) during the period	1,222	(443)
Amount reclassified into income during the period	218	(534)
Tax effect	(336)	222
Other comprehensive income, net of tax	1,104	(755)
Ending balance	$ (708)	$ 3

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Fair Value of Financial Instruments - Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Foreign currency forward contracts	$ 677	$ 1,986
Fair Value, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Money market funds	11,466	87
Commercial paper	47,317	54,279
U.S. Treasury and government agencies	178,188	208,536
Corporate bonds	87,378	56,465
Asset-backed securities	12,144	13,881
Foreign currency forward contracts	590	111
Total assets	337,083	333,359
Foreign currency forward contracts	677	1,986
Total liabilities	677	1,986
Level 1 \| Fair Value, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Money market funds	11,466	87
Commercial paper	0	0
U.S. Treasury and government agencies	0	0
Corporate bonds	0	0
Asset-backed securities	0	0
Foreign currency forward contracts	0	0
Total assets	11,466	87
Foreign currency forward contracts	0	0
Total liabilities	0	0
Level 2 \| Fair Value, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Money market funds	0	0
Commercial paper	47,317	54,279
U.S. Treasury and government agencies	178,188	208,536
Corporate bonds	87,378	56,465
Asset-backed securities	12,144	13,881
Foreign currency forward contracts	590	111
Total assets	325,617	333,272
Foreign currency forward contracts	677	1,986
Total liabilities	$ 677	$ 1,986

Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2024

Revenue Recognition [Abstract]

Schedule of Expected Revenue from Performance Obligations

The following table sets forth the expected revenue from all remaining performance obligations as of March 31, 2024:


	(in thousands)
2024 (remaining nine months)	$	163,231
2025	141,528
2026	63,966
2027	7,421
2028	496
2029 and thereafter	110
Total	$	376,752

Schedule of Revenue by Sales Channel

Revenues by sales channel are as follows:


	Three Months Ended
	March 31,
	2024		2023

	(in thousands)
Direct	$	80,126	$	75,093
Partner	65,679		55,590
Total	$	145,805	$	130,683

Schedule of Deferred Costs to Obtain Contracts

Deferred costs to obtain contracts are as follows:


	March 31, 2024		December 31, 2023

	(in thousands)
Current	$	6,052	$	5,858
Noncurrent	$	12,141	$	11,844

Intangible Assets, Net- Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Cost	$ 41,887	$ 41,887
Accumulated Amortization	(32,984)	(32,212)
Total intangibles	8,903	9,675
Intangible assets, net	8,943	9,715
Intangible assets not subject to amortization
Finite-Lived Intangible Assets [Line Items]
Intangible assets not subject to amortization	$ 40	$ 40
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	4 years 7 months 6 days	4 years 7 months 6 days
Cost	$ 40,141	$ 40,141
Accumulated Amortization	(31,368)	(30,667)
Total intangibles	$ 8,773	$ 9,474
Patent licenses
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	14 years	14 years
Cost	$ 1,387	$ 1,387
Accumulated Amortization	(1,346)	(1,322)
Total intangibles	$ 41	$ 65
Assembled workforce
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	2 years	2 years
Cost	$ 359	$ 359
Accumulated Amortization	(270)	(223)
Total intangibles	$ 89	$ 136

Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reclassification of AOCI - Cash flow hedges
Revenues	$ 145,805	$ 130,683
Cost of revenues	(27,198)	(26,954)
Research and development	(27,530)	(27,795)
Sales and marketing	(29,408)	(25,628)
General and administrative	(16,908)	(15,128)
Other expense, net	(1,399)	(216)
Reclassification out of Accumulated Other Comprehensive Income \| Cash flow hedges
Reclassification of AOCI - Cash flow hedges
Revenues	(279)	1,136
Cost of revenues	15	(139)
Research and development	37	(383)
Sales and marketing	3	(23)
General and administrative	6	(57)
Total	(218)	534
Reclassification out of Accumulated Other Comprehensive Income \| Available-for-sale debt securities
Reclassification of AOCI - Cash flow hedges
Other expense, net	$ 0	$ 0

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Indemnifications The Company from time to time enters into certain types of contracts that contingently require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company's bylaws, under which it must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers for liabilities arising out of their relationship, and (iii) contracts under which the Company may be required to indemnify customers or resellers from certain liabilities arising from potential infringement of intellectual property rights, as well as potential damages caused by limited product defects. To date, the Company has not incurred and has not recorded any liability in connection with such indemnifications. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors.

Fair Value of Financial Instruments - Summary of the Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Amortized Cost
Due within One Year	$ 247,044
Due after One Year through Two Years	49,810
Mature over Two Years	27,865
Asset-backed securities	12,074
Amortized Cost	336,793	$ 333,113
Fair Value
Due within One Year	246,801
Due after One Year through Two Years	49,762
Mature over Two Years	27,786
Asset-backed securities	12,144
Fair Value	$ 336,493	$ 333,248

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income tax provision	$ 9,754	$ 8,254
Income tax rate, percentage	19.70%	22.10%
Unrecognized tax benefits	$ 11,200		$ 11,900
Unrecognized tax benefits effecting the tax rate	$ 6,500		$ 6,100

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table sets forth by level within the fair value hierarchy the fair value of the Company's financial assets and liabilities measured at fair value on a recurring basis:


	March 31, 2024
	Level 1		Level 2		Fair Value

	(in thousands)
Money market funds	$	11,466	$	—	$	11,466
Commercial paper	—		47,317		47,317
U.S. Treasury and government agencies	—		178,188		178,188
Corporate bonds	—		87,378		87,378
Asset-backed securities	—		12,144		12,144
Foreign currency forward contracts	—		590		590
Total assets	$	11,466	$	325,617	$	337,083
Foreign currency forward contracts	$	—	$	677	$	677
Total liabilities	$	—	$	677	$	677


	December 31, 2023
	Level 1		Level 2		Fair Value

	(in thousands)
Money market funds	$	87	$	—	$	87
Commercial paper	—		54,279		54,279
U.S. Treasury and government agencies	—		208,536		208,536

Corporate bonds	—		56,465		56,465
Asset-backed securities	—		13,881		13,881
Foreign currency forward contracts	—		111		111
Total assets	$	87	$	333,272	$	333,359
Foreign currency forward contracts	$	—	$	1,986	$	1,986
Total liabilities	$	—	$	1,986	$	1,986

Schedule of Cash Equivalents and Marketable Securities

The Company's cash equivalents and marketable securities consist of the following:


	March 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

	(in thousands)
Cash equivalents: (1)
Money market funds	$	11,466	$	—	$	—	$	11,466
Commercial paper	1,600		—		(1)		1,599
U.S. Treasury and government agencies	53,851		—		(3)		53,848
Total	66,917		—		(4)		66,913
Short-term marketable securities:
Commercial paper	45,752		1		(35)		45,718
Corporate bonds	28,822		8		(111)		28,719

U.S. Treasury and government agencies	105,553		7		(110)		105,450
Total	180,127		16		(256)		179,887
Long-term marketable securities:
Corporate bonds	58,771		94		(206)		58,659
Asset-backed securities	12,074		72		(2)		12,144
U.S. Treasury and government agencies	18,904		12		(26)		18,890
Total	89,749		178		(234)		89,693
Total	$	336,793	$	194	$	(494)	$	336,493

(1)Excludes cash of $206.9 million.


	December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value

	(in thousands)
Cash equivalents: (2)
Money market funds	$	87	$	—	$	—	$	87
U.S. Treasury and government agencies	54,620		4		—		54,624
Total	54,707		4		—		54,711
Short-term marketable securities:
Commercial paper	54,254		32		(7)		54,279
Corporate bonds	23,013		1		(149)		22,865

U.S. Treasury and government agencies	144,901		52		(204)		144,749

Total	222,168		85		(360)		221,893
Long-term marketable securities:
Corporate bonds	33,337		285		(22)		33,600
Asset-backed securities	13,785		102		(6)		13,881
U.S. Treasury and government agencies	9,116		49		(2)		9,163
Total	56,238		436		(30)		56,644
Total	$	333,113	$	525	$	(390)	$	333,248

(2)Excludes cash of $149.0 million.

Schedule of Gross Unrealized Losses and Fair Value of Marketable Securities in an Unrealized Loss Position

The following table summarizes the gross unrealized losses and fair value of the Company's marketable securities that were in an unrealized loss position aggregated by length of time:


	March 31, 2024
	Less than 12 months				12 months or longer				Total
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
	(in thousands)
Commercial paper	$	44,391	$	(36)	$	—	$	—	$	44,391	$	(36)
Asset-backed securities	—		—		687		(2)		687		(2)
Corporate bonds	45,533		(233)		8,705		(84)		54,238		(317)
U.S. Treasury and government agencies	142,202		(65)		12,864		(74)		155,066		(139)
Total	$	232,126	$	(334)	$	22,256	$	(160)	$	254,382	$	(494)


	December 31, 2023
	Less than 12 months				12 months or longer				Total
	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses
	(in thousands)
Commercial paper	$	24,838	$	(7)	$	—	$	—	$	24,838	$	(7)
Asset-backed securities	—		—		1,485		(6)		1,485		(6)
Corporate bonds	—		—		20,717		(171)		20,717		(171)
U.S. Treasury and government agencies	43,373		(18)		18,172		(188)		61,545		(206)
Total	$	68,211	$	(25)	$	40,374	$	(365)	$	108,585	$	(390)

Schedule of the Fair Value of Cash Equivalents and Marketable Securities by Contractual Maturity

The following summarizes the fair value of marketable securities by contractual maturity:


	March 31, 2024
	Amortized Cost		Fair Value

	(in thousands)
Due within One Year	$	247,044	$	246,801
Due after One Year through Two Years	49,810		49,762
Mature over Two Years	27,865		27,786
Asset-backed securities	12,074		12,144
Total	$	336,793	$	336,493

Schedule of Derivative Instruments

The following summarizes the fair value of derivative financial instruments as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023

	(in thousands)
Assets
Foreign currency forward contracts designated as cash flow hedge	$	552	$	63
Foreign currency forward contracts not designated as hedging instruments	38		48
Total	$	590	$	111
Liabilities
Foreign currency forward contracts designated as cash flow hedge	$	544	$	1,502
Foreign currency forward contracts not designated as hedging instruments	133		484
Total	$	677	$	1,986

Schedule of Gains (Losses) Recognized from Forward Contracts and Other Foreign Currency Transactions in Other Income (Expense)


	Three Months Ended March 31,
	2024		2023

	(in thousands)
Net gains from non-designated forward contracts	$	512	$	259
Other foreign currency transactions losses	(1,941)		(425)
Total foreign exchange losses, net	$	(1,429)	$	(166)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 30,191		$ 32,599
Depreciation and amortization	4,500	$ 6,500
Scanner Appliances and Other Computer Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, net	9,600		10,100
Scanner Appliances and Other Computer Equipment Not Placed In Service
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 6,100		$ 6,400

Fair Value of Financial Instruments - Narrative (Details) € in Millions, ₨ in Millions, £ in Millions, $ in Millions, $ in Millions	Mar. 31, 2024 USD ($)	Mar. 31, 2024 EUR (€)	Mar. 31, 2024 GBP (£)	Mar. 31, 2024 INR (₨)	Mar. 31, 2024 CAD ($)	Dec. 31, 2023 EUR (€)	Dec. 31, 2023 GBP (£)	Dec. 31, 2023 INR (₨)	Dec. 31, 2023 CAD ($)	Dec. 31, 2018 USD ($)
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Investments										$ 2.5
Foreign Exchange Contract \| Designated as Hedging Instrument \| Cash Flow Hedging
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Derivative		€ 46.1	£ 16.0	₨ 4,068.0		€ 48.5	£ 14.6	₨ 4,042.0
Foreign Exchange Contract \| Not Designated as Hedging Instrument
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Derivative		€ 10.7	£ 8.6	₨ 990.0	$ 1.0	€ 19.2	£ 6.0	₨ 440.0	$ 1.0
Foreign Exchange Contracts for GBP and Euro \| Designated as Hedging Instrument \| Cash Flow Hedging
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months	$ 0.8

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	Description of Business and Summary of Significant Accounting Policies Description of Business Qualys, Inc. (the “Company”, "we", "us", "our") was incorporated in the state of Delaware on December 30, 1999. The Company is headquartered in Foster City, California and has wholly-owned subsidiaries throughout the world. The Company is a leading provider of cloud-based information technology ("IT"), security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber-attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on Qualys' Enterprise TruRisk Platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the financial position, results of operations and cash flows for the interim periods. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2024 or for any other future annual or interim periods. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 22, 2024. Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, allowance for credit loss, the valuation of goodwill and intangible assets, leases, stock-based compensation and income tax provision. Actual results could differ from those estimates and such differences may be material to the accompanying unaudited condensed consolidated financial statements. Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07 requiring enhanced segment disclosures. The ASU requires disclosure of significant segment expenses regularly provided to the chief operating decision maker ("CODM") included within segment operating profit or loss. Additionally, the ASU requires a description of how the CODM utilizes segment operating profit or loss to assess segment performance. The requirements of the ASU are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company's annual reporting requirements will be effective for fiscal 2024 and interim reporting requirements will be effective beginning with the first quarter of fiscal 2025. Early adoption is permitted and retrospective application is required for all periods presented. The Company is in the process of analyzing the impact of the ASU on related disclosures. In December 2023, the FASB issued ASU 2023-09 requiring improvements to income tax disclosures. The new ASU requires disclosure of disaggregated information about the effective tax rate and income taxes paid. The requirements of the ASU are effective for annual periods beginning after December 15, 2024 and are to be applied on a prospective basis. Companies can choose to early adopt and apply the guidance retrospectively. The Company is in the process of analyzing the impact of the ASU on related disclosures. There have been no material changes to the Company’s significant accounting policies set forth in "Note 1" of Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Net Income Per Share - Anti-dilutive Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	325	1,369
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	325	990
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	0	365
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	0	14

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Lease expense	$ 3.8	$ 4.0
Leases not yet commenced	$ 19.4

Stockholders' Equity and Stock-based Compensation - Summary of Restricted Stock Unit Activity (Details) - $ / shares shares in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Restricted stock units
Outstanding RSUs
Beginning balance (in shares)	1,074
Granted (in shares)	187
Vested (in shares)	(149)
Forfeited (in shares)	(86)
Ending balance (in shares)	1,026	1,074
Outstanding and expected to vest (in shares)	815
Weighted Average Grant Date Fair Value Per Share
Beginning balance (in USD per share)	$ 133.60
Granted (in USD per share)	168.24
Vested (in USD per share)	143.89
Forfeited (in USD per share)	135.63
Ending balance (in USD per share)	140.47	$ 133.60
Outstanding and expected to vest (in USD per share)	$ 138.10
Performance-based Restricted Stock Units \| Executive Officer 1
Outstanding RSUs
Granted (in shares)		139	139	139
Performance-based Restricted Stock Units \| Executive Officer
Outstanding RSUs
Granted (in shares)	156
Performance-based Restricted Stock Units \| Executive Officer 2
Outstanding RSUs
Granted (in shares)		64	64	64
Performance-based Restricted Stock Units \| Executive Officer 3
Outstanding RSUs
Granted (in shares)		59	59	59
Performance-based Restricted Stock Units \| Executive Officer 4
Outstanding RSUs
Granted (in shares)	172	172	172	172

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flow from operating activities:
Net income	$ 39,731	$ 29,105
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	5,239	7,444
Provision for credit losses	193	119
Stock-based compensation, net of amounts capitalized	19,031	16,033
Accretion of discount on marketable securities, net	(1,915)	(259)
Deferred income taxes	(4,111)	(4,241)
Changes in operating assets and liabilities:
Accounts receivable	30,404	19,890
Prepaid expenses and other assets	(10,126)	(1,289)
Accounts payable	(335)	(1,215)
Accrued liabilities and other noncurrent liabilities	8,892	(2)
Deferred revenues	(1,498)	1,228
Net cash provided by operating activities	85,505	66,813
Cash flow from investing activities:
Purchases of marketable securities	(61,340)	(46,010)
Sales and maturities of marketable securities	71,463	69,709
Purchases of property and equipment	(2,051)	(4,037)
Net cash provided by investing activities	8,072	19,662
Cash flow from financing activities:
Repurchase of common stock	(18,029)	(66,551)
Proceeds from exercise of stock options	2,770	2,328
Payments for taxes related to net share settlement of equity awards	(11,808)	(5,105)
Proceeds from issuance of common stock through employee stock purchase plan	3,608	2,988
Payment of acquisition-related holdback	(1,500)	0
Net cash used in financing activities	(24,959)	(66,340)
Net increase in cash, cash equivalents and restricted cash	68,618	20,135
Cash, cash equivalents and restricted cash at beginning of period	206,365	176,419
Cash, cash equivalents and restricted cash at end of period	$ 274,983	$ 196,554

Intangible Assets, Net - Expected Amortization Expense in Future Periods (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024 (remaining nine months)	$ 2,132
2025	2,556
2026	2,477
2027	1,738
Total intangibles	$ 8,903	$ 9,675

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The components and changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2024 and 2023 were as follows:


	Available-for-sale debt securities		Cash flow hedges		Total

	(in thousands)
Balances at December 31, 2023	$	108	$	(1,812)	$	(1,704)
Change in unrealized gains (losses) during the period	(436)		1,222		786
Amount reclassified into income during the period	—		218		218
Tax effect	29		(336)		(307)
Net change during the period	(407)		1,104		697
Balances at March 31, 2024	$	(299)	$	(708)	$	(1,007)











Balances at December 31, 2022	$	(2,705)	$	758	$	(1,947)
Change in unrealized gains (losses) during the period	1,131		(443)		688
Amount reclassified into income during the period	—		(534)		(534)
Tax effect	—		222		222
Net change during the period	1,131		(755)		376
Balances at March 31, 2023	$	(1,574)	$	3	$	(1,571)

Schedule of Amounts Reclassified from AOCI to the Statements of Operations

The effects on income before income taxes of amounts reclassified from AOCI to the condensed consolidated statements of operations were as follows:


	Three Months Ended March 31,
	2024		2023

	(in thousands)
Reclassification of AOCI - Cash flow hedges
Revenues	$	(279)	$	1,136
Cost of revenues	15		(139)
Research and development	37		(383)
Sales and marketing	3		(23)
General and administrative	6		(57)
Total	$	(218)	$	534

Stockholders' Equity and Stock-based Compensation - Schedule of Repurchase Agreements (Details) - USD ($) $ in Millions	Mar. 31, 2024	Feb. 07, 2024	Feb. 09, 2023	May 04, 2022	Nov. 03, 2021	Feb. 10, 2021	May 07, 2020	Oct. 30, 2019	Oct. 30, 2018	Feb. 12, 2018
Authorized Dollar Value
Stock repurchase program, authorized amount	$ 1,200.0									$ 100.0
Additional authorized amount		$ 200.0	$ 100.0	$ 200.0	$ 200.0	$ 100.0	$ 100.0	$ 100.0	$ 100.0

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 39,731	$ 29,105
Other comprehensive income (loss), net of tax
Net change in unrealized gains (losses) on available-for-sale debt securities, net of tax	(407)	1,131
Net change in unrealized gains (losses) on cash flow hedges, net of tax	1,104	(755)
Other comprehensive income, net of tax	697	376
Comprehensive income	$ 40,428	$ 29,481

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Revenue Recognition [Abstract]
Revenue from contract with customer, revenue recognized	$ 131,000	$ 113,800
Deferred revenue			$ 364,900	$ 317,200
Amortization expense related to deferred costs	1,600	1,400
Impairment loss related to deferred contract costs	0	$ 0
Carrying value of accounts receivable				121,800
Deferred revenues, current	332,128		333,267	293,700
Deferred revenues, noncurrent	$ 31,311		$ 31,671	$ 23,500

Property and Equipment, Net

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net, consists of the following:


	March 31, 2024		December 31, 2023

	(in thousands)
Computer equipment	$	180,860	$	179,002
Computer software	26,139		26,133
Leasehold improvements	20,924		20,924
Scanner appliances	18,449		18,369
Furniture, fixtures and equipment	6,712		6,699
Total property and equipment	253,084		251,127
Less: accumulated depreciation and amortization	(222,893)		(218,528)
Property and equipment, net	$	30,191	$	32,599

As of March 31, 2024 and December 31, 2023, physical scanner appliances and other computer equipment that are or will be subject to leases by customers had a net carrying value of $9.6 million and $10.1 million, respectively, including assets that had not been placed in service of $6.1 million and $6.4 million, respectively.

Depreciation and amortization expenses relating to property and equipment were $4.5 million and $6.5 million for the three months ended March 31, 2024 and 2023, respectively, which were mainly recorded in cost of revenues in the condensed consolidated statements of operations.

Stockholders' Equity and Stock-based Compensation

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Stockholders' Equity and Stock-based Compensation

Equity Incentive Plans

Restated 2012 Equity Incentive Plan

On June 8, 2022 ("Effective Date"), the Company's stockholders approved the Amended and Restated 2012 Equity Incentive Plan (the "Restated 2012 Plan"). Under the Restated 2012 Plan, the Company is authorized to grant to eligible participants incentive stock options, nonstatutory stock options, restricted stock, restricted stock units ("RSUs"), stock appreciation rights, performance units and performance shares. Pursuant to the relevant plan provisions, 3,072 thousand shares were available for grant under the Restated 2012 Plan on the Effective Date. In addition, any outstanding awards or options granted under the previous version of the 2012 Equity Incentive Plan (“Previous 2012 Plan”) will be added back to the shares available for grant under the Restated 2012 Plan if they expire unexercised or are otherwise forfeited after the Effective Date. Any remaining shares available for grant under the Previous 2012 Plan as of the Effective Date were no longer available for future grants under the Restated 2012 Plan.

As of March 31, 2024, 1,660 thousand shares were available for grant under the Restated 2012 Plan.

2021 Employee Stock Purchase Plan

On June 9, 2021, the Company’s stockholders approved the 2021 Employee Stock Purchase Plan (the “ESPP”). A total of 600 thousand shares were authorized for issuance to eligible participating employees upon adoption of the ESPP. The ESPP provides for consecutive 6-month offering periods beginning on or about August 16 and February 16 of each year. Eligible employees who elect to participate can contribute from 1% to 15% of their eligible compensation through payroll withholding. During any offering period, contribution rates cannot be changed. However, eligible employees may withdraw from the current offering period. Any contributions made prior to each purchase date in the case of withdrawal or termination of employment will be refunded. On each purchase date, eligible participating employees will purchase the shares at a price per share equal to 85% of the lesser of (i) the fair market value of the Company's stock on the first trading day of the offering period or (ii) the fair market value of the Company's stock on the purchase date (i.e., the last trading day of the offering period).

During the three months ended March 31, 2024, 29 thousand shares were issued in connection with the purchase of common stock by participating employees. As of March 31, 2024, 465 thousand shares were available for future purchases.

Stock Options

Stock options granted under the Restated 2012 Plan and Previous 2012 Plan (collectively, the Plans) generally vest based on continued service over four years and expire ten years from the date of grant.

A summary of the Company’s stock option activity during the three months ended March 31, 2024 is as follows:


	Outstanding Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in thousands)			(Years)	(in thousands)
Balance as of December 31, 2023	1,447	$	97.98	6.5	$	142,302
Granted	89	$	168.24
Exercised	(46)	$	60.33
Canceled	(26)	$	119.79
Balance as of March 31, 2024	1,464	$	103.02	6.6	$	93,624
Vested and expected to vest as of March 31, 2024	1,293	$	98.39	6.3	$	88,616
Exercisable as of March 31, 2024	771	$	74.64	4.7	$	71,126

Restricted Stock Units

RSUs granted under the Plans generally only contain a service-based vesting condition that is typically satisfied over four years.

Performance-based Restricted Stock Units ("PRSUs") granted under the Plans contain both service-based and performance-based vesting conditions. During the three months ended March 31, 2024, the Company granted PRSUs to its executive officers and certain other members of its senior leadership team. The performance-based vesting condition is satisfied upon the achievement of certain Company annual performance targets, including revenue growth and adjusted EBITDA margin, set by the Compensation and Talent Committee of the board of directors of the Company. The target PRSUs are scheduled to vest in three equal annual installments over a three-year period. Each annual installments at 200% of the annual target will be considered granted when the performance targets for the corresponding performance year is determined and approved. The actual number of the PRSUs earned and eligible to vest ranges from 0% to 200% of the annual target number of PRSUs granted based on the weighted-average achievement of such Company annual performance metrics set for the corresponding annual performance period. The vesting and release of the first and second installment is capped at 100% of the target number at the end of the first and second year, respectively, with cumulative achievement over 100%, if any, to be vested and released at the end of the third year, together with the vesting of the third installment. For PRSUs granted under the Plans, any unvested PRSU award may be accelerated in part or in full upon the occurrence of certain events, such as death or disability, or a change in control, as defined in the grant agreement.

A summary of the Company’s RSU activity, inclusive of PRSU activity, during the three months ended March 31, 2024 is as follows:


	Outstanding RSUs		Weighted Average Grant Date Fair Value Per Share
	(in thousands)
Balance as of December 31, 2023	1,074	(1)	$	133.60
Granted	187	(2)	$	168.24
Vested	(149)	(3)	$	143.89
Forfeited	(86)	(4)	$	135.63
Balance as of March 31, 2024	1,026	(5)	$	140.47
Outstanding and expected to vest as of March 31, 2024	815		$	138.10

(1)Included 139 thousand PRSUs granted to certain executive officers in 2023, 2022 and 2021.

(2)Included 156 thousand PRSUs granted to certain executive officers in the three months ended March 31, 2024.

(3)Included 64 thousand PRSUs granted to certain executive officers in 2023, 2022 and 2021.

(4)Included 59 thousand PRSUs granted to certain executive officers in 2023, 2022 and 2021.

(5)Included 172 thousand PRSUs granted to certain executive officers in 2024, 2023, 2022 and 2021.

Stock-based Compensation

The following table shows a summary of the stock-based compensation expense included in the condensed consolidated statements of operations:


	Three Months Ended March 31,
	2024		2023

	(in thousands)
Cost of revenues	$	2,020	$	1,592
Research and development	5,303		4,960
Sales and marketing	3,739		2,454
General and administrative	7,969		7,027
Total stock-based compensation, net of amounts capitalized (1)	$	19,031	$	16,033

(1)Total stock-based compensation expense capitalized was de minimis during the three months ended March 31, 2024.

Of the total stock-based compensation expense in the table above, the Company recognized stock-based compensation expenses related to all PRSUs of $2.8 million and $1.3 million during the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, the Company had unrecognized stock-based compensation expenses of $23.7 million, $85.9 million, $11.9 million, and $0.8 million related to options, RSUs, performance-based RSUs, and ESPP purchase rights, respectively, which are expected to be recognized over weighted-average periods of 2.5 years, 2.6 years, 0.9 years, and 0.4 years, respectively.

Share Repurchase Program

The Company's share repurchase program was authorized by the board of directors as follows:


Announcement Date	Authorized Dollar Value
	(in millions)
February 12, 2018	$	100.0
October 30, 2018	100.0
October 30, 2019	100.0
May 7, 2020	100.0
February 10, 2021	100.0
November 3, 2021	200.0
May 4, 2022	200.0
February 9, 2023	100.0
February 7, 2024	200.0
Total as of March 31, 2024	$	1,200.0

Shares may be repurchased from time to time on the open market in accordance with Rule 10b-18 of the Exchange Act of 1934, including pursuant to a pre-set trading plan adopted in accordance with Rule 10b5-1 under the Exchange Act. All share repurchases have been made using cash resources. Repurchased shares are retired and reclassified as authorized and unissued shares of common stock. On retirement of the repurchased shares, common stock is reduced by an amount equal to the number of shares being retired multiplied by the par value. The excess amount that is retired over its par value

is first allocated as a reduction to additional paid-in capital based on the original cost of additional paid-in capital per share of identified issuances. The remaining amount is allocated to accumulated deficit.

During the three months ended March 31, 2024 and 2023, the Company repurchased 105 thousand shares and 584 thousand shares of its common stock for approximately $18.0 million and $66.6 million, respectively. As of March 31, 2024, approximately $265.7 million remained available for share repurchases pursuant to the Company's share repurchase program.

Excise tax on stock repurchases net of issue was immaterial to the Company's financial results and cash flows for the three months ended March 31, 2024 and 2023 and the Company's financial position as of March 31, 2024 and December 31, 2023.

Revenue from Contracts with Customers - Revenue by Sales Channel (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues	$ 145,805	$ 130,683
Direct
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues	80,126	75,093
Partner
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues	$ 65,679	$ 55,590

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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+ Details

Revenue from Contracts with Customers - Capitalized Cost to Obtain Contracts, Current and Noncurrent (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenue Recognition [Abstract]
Current	$ 6,052	$ 5,858
Noncurrent	$ 12,141	$ 11,844

Stockholders' Equity and Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	$ 19,031	$ 16,033
Cost of revenues
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	2,020	1,592
Research and development
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	5,303	4,960
Sales and marketing
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	3,739	2,454
General and administrative
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	$ 7,969	$ 7,027

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Intangible Assets, Net (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of the Carrying Value of Intangible Assets

The carrying values of intangible assets are as follows:


		March 31, 2024
(in thousands)	Weighted Average Life (Years)	Cost		Accumulated Amortization		Net Book Value
Developed technology	4.6	$	40,141	$	(31,368)	$	8,773
Patent licenses	14.0	1,387		(1,346)		41
Assembled workforce	2.0	359		(270)		89
Total intangibles subject to amortization		$	41,887	$	(32,984)	$	8,903
Intangible assets not subject to amortization						40
Total intangible assets, net						$	8,943


		December 31, 2023
(in thousands)	Weighted Average Life (Years)	Cost		Accumulated Amortization		Net Book Value
Developed technology	4.6	$	40,141	$	(30,667)	$	9,474
Patent licenses	14.0	1,387		(1,322)		65
Assembled workforce	2.0	359		(223)		136
Total intangibles subject to amortization		$	41,887	$	(32,212)	$	9,675
Intangible assets not subject to amortization						40
Total intangible assets, net						$	9,715

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of March 31, 2024, the Company expects amortization expense in future periods to be as follows:


	(in thousands)
2024 (remaining nine months)	$	2,132
2025	2,556
2026	2,477
2027	1,738

Total expected future amortization expense	$	8,903

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Cash payments included in the measurement of lease liabilities	$ 3,621	$ 3,905
Lease liabilities arising from obtaining right-of-use assets	$ 12,347	$ 0

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Wendy Pfeiffer [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On February 23, 2024, Wendy M. Pfeiffer, a member of our board of directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 2,000 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until May 23, 2025, or earlier if all transactions under the trading arrangement are completed. Prior to entering into the new Rule 10b5-1 trading arrangement in February 2024, Ms. Pfeiffer’s previous Rule 10b5-1 trading arrangement expired according to its terms because all the transactions under the arrangement were completed.
Name	Wendy M. Pfeiffer
Title	board of directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 23, 2024
Arrangement Duration	455 days
Aggregate Available	2,000
Sumedh Thakar [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On February 28, 2024, Sumedh S. Thakar, our Chief Executive Officer and a member of our board of directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 114,000 shares of our common stock, which represents the gross number of shares authorized to be sold during the duration of the plan, before excluding any shares withheld by the company to satisfy its income tax withholding in connection with the net settlement of the equity awards. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until May 28, 2025, or earlier if all transactions under the trading arrangement are completed.
Name	Sumedh S. Thakar
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 28, 2024
Arrangement Duration	452 days
Aggregate Available	114,000

Revenue from Contracts with Customers - Expected Revenue from All Remaining Performance Obligations (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 376,752
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 163,231
Remaining performance obligation, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 141,528
Remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 63,966
Remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 7,421
Remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 496
Remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 110
Remaining performance obligation, period

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's income tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company's quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pretax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company does business, tax law developments and possible outcomes of audits. The Company's estimated effective tax rate for the year differs from the U.S. statutory rate of 21% primarily due to non-deductible stock-based compensation expense, state taxes, the benefit of U.S. federal income tax credits, the impact of mandatory capitalization of research expenses for U.S. tax purposes, and the benefits related to foreign-derived intangible income deduction. The Company recorded an income tax provision of $9.8 million and $8.3 million for the three months ended March 31, 2024 and 2023, respectively, resulting in an effective tax rate of 19.7% and 22.1%, respectively. The increase in income tax provision for the three months ended March 31, 2024 compared to the three months ended March 31, 2023, was primarily due to tax effect of an increase in pretax income, partially offset by an increase in excess tax benefits arising from stock-based compensation and lower net capitalization of research and development expenses for tax purposes. As of March 31, 2024, the Company had unrecognized tax benefits of $11.2 million, of which $6.5 million, if recognized, would favorably impact the Company's effective tax rate. As of December 31, 2023, the Company had unrecognized tax benefits of $11.9 million, of which $6.1 million, if recognized, would favorably impact the Company's effective tax rate. The Company does not anticipate a material change in its unrecognized tax benefits in the next 12 months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Fair Value of Financial Instruments - Summary of Securities in Unrealized Loss Positions (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Less than 12 months
Fair value	$ 232,126	$ 68,211
Gross unrealized losses	(334)	(25)
12 months or longer
Fair value	22,256	40,374
Gross unrealized losses	(160)	(365)
Total
Fair value	254,382	108,585
Gross unrealized losses	(494)	(390)
Commercial paper
Less than 12 months
Fair value	44,391	24,838
Gross unrealized losses	(36)	(7)
12 months or longer
Fair value	0	0
Gross unrealized losses	0	0
Total
Fair value	44,391	24,838
Gross unrealized losses	(36)	(7)
Asset-backed securities
Less than 12 months
Fair value	0	0
Gross unrealized losses	0	0
12 months or longer
Fair value	687	1,485
Gross unrealized losses	(2)	(6)
Total
Fair value	687	1,485
Gross unrealized losses	(2)	(6)
Corporate bonds
Less than 12 months
Fair value	45,533	0
Gross unrealized losses	(233)	0
12 months or longer
Fair value	8,705	20,717
Gross unrealized losses	(84)	(171)
Total
Fair value	54,238	20,717
Gross unrealized losses	(317)	(171)
U.S. Treasury and government agencies
Less than 12 months
Fair value	142,202	43,373
Gross unrealized losses	(65)	(18)
12 months or longer
Fair value	12,864	18,172
Gross unrealized losses	(74)	(188)
Total
Fair value	155,066	61,545
Gross unrealized losses	$ (139)	$ (206)

Intangible Assets, Net

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

Intangible assets consist primarily of developed technology and patent licenses acquired from business or asset acquisitions. Acquired intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets.

The carrying values of intangible assets are as follows:


		March 31, 2024
(in thousands)	Weighted Average Life (Years)	Cost		Accumulated Amortization		Net Book Value
Developed technology	4.6	$	40,141	$	(31,368)	$	8,773
Patent licenses	14.0	1,387		(1,346)		41
Assembled workforce	2.0	359		(270)		89
Total intangibles subject to amortization		$	41,887	$	(32,984)	$	8,903
Intangible assets not subject to amortization						40
Total intangible assets, net						$	8,943


		December 31, 2023
(in thousands)	Weighted Average Life (Years)	Cost		Accumulated Amortization		Net Book Value
Developed technology	4.6	$	40,141	$	(30,667)	$	9,474
Patent licenses	14.0	1,387		(1,322)		65
Assembled workforce	2.0	359		(223)		136
Total intangibles subject to amortization		$	41,887	$	(32,212)	$	9,675
Intangible assets not subject to amortization						40
Total intangible assets, net						$	9,715

Intangible asset amortization expense was $0.8 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively. Intangible asset amortization expenses were primarily recorded in cost of revenues in the condensed consolidated statements of operations.

As of March 31, 2024, the Company expects amortization expense in future periods to be as follows:


	(in thousands)
2024 (remaining nine months)	$	2,132
2025	2,556
2026	2,477
2027	1,738

Total expected future amortization expense	$	8,903

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	Apr. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-35662
Entity Registrant Name	QUALYS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0534145
Entity Address, Address Line One	919 E. Hillsdale Boulevard, 4th Floor
Entity Address, City or Town	Foster City
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94404
City Area Code	650
Local Phone Number	801-6100
Title of 12(b) Security	Common stock, $0.001 par value per share
Trading Symbol	QLYS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		36,939,262
Entity Central Index Key	0001107843
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Stockholders' Equity and Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended
	Jun. 08, 2022	Jun. 09, 2021	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares available for grant (in shares)			1,660,000
Vesting period (in years)			4 years
Stock-based compensation			$ 19,031	$ 16,033
Shares repurchased and retired (in shares)			105,000	584,000
Shares repurchased and retired			$ 18,000	$ 66,600
Authorized repurchase amount remaining			265,700
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expenses, unrecognized			$ 23,700
Stock-based compensation, recognition period (in years)			2 years 6 months
Restricted stock units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expenses, unrecognized			$ 85,900
Stock-based compensation, recognition period (in years)			2 years 7 months 6 days
Granted (in shares)			187,000
Performance-based Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expenses, unrecognized			$ 11,900
Stock-based compensation, recognition period (in years)			10 months 24 days
Stock-based compensation			$ 2,800	$ 1,300
Performance-based Restricted Stock Units \| Executive Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period (in years)			3 years
Shares that will vest upon trigger (in percentage)			100.00%
Granted (in shares)			156,000
ESPP Shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expenses, unrecognized			$ 800
Stock-based compensation, recognition period (in years)			4 months 24 days
Minimum \| Performance-based Restricted Stock Units \| Executive Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting range (percentage)			0.00%
Maximum \| Performance-based Restricted Stock Units \| Executive Officer
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting range (percentage)			200.00%
The 2012 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation, additional shares available (in shares)	3,072,000
Vesting period (in years)			4 years
Expiration period			10 years
The 2021 Employee Stock Purchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares available for grant (in shares)			465,000
Shares authorized for issuance (in shares)		600,000
Offering period (in months)		6 months
Purchase price of stock, percentage		85.00%
Issuance of common stock through employee stock purchase plan (in shares)			29,000
The 2021 Employee Stock Purchase Plan \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
ESPP eligible percent to contribute		1.00%
The 2021 Employee Stock Purchase Plan \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
ESPP eligible percent to contribute		15.00%

Segment and Geographic Area Information - Revenue and Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 145,805	$ 130,683
Total Long-lived Assets	61,562		$ 54,990
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	86,436	78,016
Total Long-lived Assets	39,325		42,622
Foreign
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	59,369	$ 52,667
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Long-lived Assets	20,223		9,952
Rest of world
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Long-lived Assets	$ 2,014		$ 2,416

- Definition

+ References

+ Details