Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

November 4, 2013

 

 

Qualys, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35662   77-0534145

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

1600 Bridge Parkway

Redwood City, California 94065

(Address of principal executive offices, including zip code)

(650) 801-6100

(Registrant’s telephone number, including area code)

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

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

 

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

 

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

 

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

 

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

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On November 4, 2013, Qualys, Inc. (“Qualys”) issued a press release announcing its financial results for the quarter ended September 30, 2013. In the press release, Qualys also announced that it would be holding a conference call on November 4, 2013 to discuss its financial results for the quarter ended September 30, 2013. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

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

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit
No.

  

Description

99.1    Press release issued by Qualys, Inc. dated November 4, 2013.

 

2


SIGNATURES

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

 

  QUALYS, INC.
By:  

/s/ Philippe F. Courtot

 

Philippe F. Courtot

Chairman, President and Chief Executive Officer

Date: November 4, 2013

 

3


EXHIBIT INDEX

 

Exhibit
No.

  

Description

99.1    Press release issued by Qualys, Inc. dated November 4, 2013.

 

4

EX-99.1

Exhibit 99.1

 

LOGO  

Investors:

Don McCauley

Chief Financial Officer            

Qualys, Inc.

+1 (650) 801-6181

dmccauley@qualys.com

 

Media:

John Christiansen/Stacy Roughan

Sard Verbinnen & Co

+1 (415) 618-8750/+1 (310) 201-2040

jchristiansen@sardverb.com/sroughan@sardverb.com

   
   
   
   
   

QUALYS ANNOUNCES THIRD QUARTER 2013 FINANCIAL RESULTS

Revenue Growth of 19% Year-Over-Year

GAAP EPS of $0.04, Non-GAAP EPS of $0.08

REDWOOD CITY, CA – November 4, 2013 – Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of cloud security and compliance solutions, today announced financial results for the third quarter ended September 30, 2013. For the quarter, the Company reported revenues of $27.7 million, GAAP net income of $1.3 million, non-GAAP net income of $2.9 million, adjusted EBITDA of $5.7 million, GAAP earnings per diluted share of $0.04, and non-GAAP earnings per diluted share of $0.08.

“We are pleased to report another solid quarter as we continue to execute against our strategic plan, drive momentum throughout our business and deliver growth through the expansion of the QualysGuard platform with new capabilities and offerings,” said Philippe Courtot, Chairman and Chief Executive Officer of Qualys.“ This past quarter we expanded the reach of our security and compliance cloud solutions into the small business market with our Express Lite Offering and broadened our reach into enterprises and government agencies with the introduction of the QualysGuard Private Cloud Platform on VCE Vblock Systems, which we have successfully sold to large financial institutions, telecommunications companies and government agencies. At our User Conference in Las Vegas, we also showcased to hundreds of customers and partners the new innovations to our cloud security platform, including our Continuous Monitoring Solution for Perimeters and new Cloud Agent technology that enables customers to scan millions of mobile devices within their IT infrastructures. Driven by continued product innovation and momentum, we expect to end the year on a strong note as we continue to leverage the strength of our cloud platform and SaaS business model to grow revenues and increase value to our customers and shareholders.”

Third Quarter 2013 Financial Highlights

Revenues: Revenues for the third quarter of 2013 increased by 19% to $27.7 million compared to $23.4 million in the same quarter last year. Revenue growth was driven by a combination of increased sales of subscriptions for additional solutions to existing customers, as well as sales of subscriptions to new customers.

Bookings: Four-Quarter Bookings (a non-GAAP financial measure) were $113.3 million for the four-quarter period ended September 30, 2013, an increase of $14.6 million, or 15%, compared to $98.7 million for the four-quarter period ended September 30, 2012. The increase in Four-Quarter Bookings was primarily due to sales of subscriptions for additional solutions to customers, as well as sales of subscriptions to new customers.


Gross Profit: GAAP gross profit for the third quarter of 2013 increased by 14% to $21.3 million compared to $18.7 million in the same quarter last year. GAAP gross margin was 77% for the third quarter of 2013 compared to 80% in the same quarter last year. Non-GAAP gross profit for the third quarter of 2013 increased by 14% to $21.4 million compared to $18.8 million in the same quarter last year. Non-GAAP gross margin was 77% for the third quarter of 2013 compared to 80% in the same quarter last year. The decrease in gross margin percentages was related to increased depreciation resulting from higher levels of capital expenditures and related operations costs to support the growth of the Company’s business, including the deployment of new solutions and the expansion of its data center infrastructure.

Operating Income: GAAP operating income for the third quarter of 2013 decreased to $1.5 million compared to $1.7 million in the same quarter last year. GAAP operating margin decreased to 5% for the third quarter of 2013 compared to 7% in the same quarter last year. Non-GAAP operating income for the third quarter of 2013 increased to $3.1 million compared to $2.7 million in the same quarter last year. Non-GAAP operating margin decreased to 11% for the third quarter of 2013 compared to 12% in the same quarter last year.

Net Income: GAAP net income for the third quarter of 2013 was $1.3 million, or $0.04 per diluted share, compared to $1.7 million, or a $0.06 per diluted share, in the same quarter last year. Non-GAAP net income for the third quarter of 2013 was $2.9 million, or $0.08 per diluted share, compared to a non-GAAP net income of $2.7 million, or $0.10 per diluted share, in the same quarter last year.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2013 increased by 23% to $5.7 million compared to $4.6 million in the same quarter last year. As a percentage of revenues, adjusted EBITDA remained constant at 20% in the third quarter of 2013 compared to the same quarter last year.

Third Quarter 2013 Business Highlights

New Customers:

 

    New customers included: American International Group (AIG), Barnes & Noble, Clorox, The City of Glendale CA, Humana, McGraw-Hill, Montana State University, Suncor Energy, VMware, Volkswagen of America, UConn Health Center, and the University of Cincinnati.

 

    Hosted more than 600 customers and partners at the 11th Annual Qualys Security Conference in Las Vegas, where attendees and industry experts shared best practices and discussed how to protect IT Infrastructures from cyber-attacks and how to manage compliance more effectively.

New Products and Functionalities:

 

    Showcased key expansions to the QualysGuard Platform at the Qualys Security Conference, including:

 

    Continuous Security Monitoring for Internet facing systems allowing customers to continuously monitor their mission critical assets and to be alerted to any security vulnerabilities or misconfigurations that may lead to a cyber-attack.

 

    New Cloud Agent technology that can be seamlessly installed on mobile devices enabling customers to collect security and compliance postures for mobile assets to drive remediation efforts across highly distributed networks with large populations of mobile users.


    Enhanced Malware Analysis and Detection capabilities on extracted documents from inbound traffic using URL and IP address reputation solutions and correlating detection events with the intelligence acquired from QualysGuard vulnerability audits to reduce false positives.

 

    Released a new version of Qualys BrowserCheck, the Company’s popular, free service that helps consumers and businesses keep their browsers and plug-ins up-to-date in an effort to protect against harmful online content and malicious software. The latest version now includes expanded support for Macs and enables users to automatically run daily scans that can detect the status of browsers, plug-ins, system settings, security software, missing patches and applications that could expose them to cyber threats.

 

    Announced a significant expansion of capabilities for securing web applications with a Web Application Firewall service (WAF), now in beta on Amazon EC2 and as virtual machines for on-premise deployments, which allows organizations to mitigate vulnerabilities automatically before they are remediated. Qualys is also working on delivering a Cloud Web Application Log Analysis and a Remediation/Exploit console that is expected to be available in beta in the first quarter of 2014.

Industry Recognition:

 

    Received highest rating of “Strong Positive” in Gartner’s MarketScope for Vulnerability Assessment1 for fifth consecutive time.

 

    QualysGuard Web Application Scanning (WAS) received Gold in SearchSecurity.com 2013 Readers’ Choice Award for Application Security.

 

    IDC ranked Qualys number 1 for Worldwide Device Vulnerability Assessment Revenue Share for 2012 for the fifth consecutive year.

 

1  Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


Financial Performance Outlook

Fourth Quarter 2013 Guidance: Management expects revenues to be in the range of $28.5 million to $29.0 million. GAAP net income per diluted share is expected to be in the range of $0.00 to $0.02 and non-GAAP net income per diluted share is expected to be in the range of $0.03 to $0.05 based on approximately 36.7 million weighted average diluted shares outstanding for the quarter.

Full Year 2013 Guidance: Full year 2013 guidance remains unchanged with management expecting revenues to be in the range of $106 million to $108 million. GAAP EPS is expected to be in the range of $0.02 to $0.06 per diluted share and non-GAAP EPS is expected to be in the range of $0.16 to $0.20 per diluted share based on approximately 35.8 million weighted average diluted shares outstanding for the full year.

Investor Conference Call

Qualys will host a conference call and live webcast to discuss its third quarter 2013 financial results today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To access the conference call, dial (877) 881-2609 in the U.S. or +1 (970) 315-0463 for international participants with conference ID #71970739. The live webcast of Qualys’ earnings conference call can also be accessed at investor.qualys.com. A replay of the conference call will be available through the same webcast link following the end of the call.

About Qualys, Inc.

Qualys, Inc. (NASDAQ: QLYS), is a pioneer and leading provider of cloud security and compliance solutions with over 6,000 customers in more than 100 countries, including a majority of each of the Forbes Global 100 and Fortune 100. The QualysGuard Cloud Platform and integrated suite of solutions help organizations simplify security operations and lower the cost of compliance by delivering critical security intelligence on demand and automating the full spectrum of auditing, compliance and protection for IT systems and web applications. Founded in 1999, Qualys has established strategic partnerships with leading managed service providers and consulting organizations including Accuvant, BT, Dell SecureWorks, Fujitsu, NTT, Symantec, Verizon, and Wipro. The company is also a founding member of the Cloud Security Alliance (CSA). For more information, please visit www.qualys.com.

Qualys, the Qualys logo and QualysGuard are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to: continued revenue growth and overall momentum in our business; the expansion of our platform with new capabilities and offerings; our expectations regarding strategic investments in our business; our expectations regarding the release dates of our new products; our guidance for revenues, GAAP net income per diluted share and non-GAAP net income per diluted share for the fourth quarter and full year of 2013; and our expectations for the number of weighted average diluted shares outstanding for the fourth quarter and full year of 2013. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; our ability to retain existing customers and generate new customers; the market for cloud solutions for IT security and compliance not continuing to develop; competition from other products and services; and general market, political, economic and business conditions. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the three months ended June 30, 2013, filed with the Securities and Exchange Commission on August 7, 2013. The forward-looking statements in this press release are based on information available to Qualys as of the date hereof, and Qualys disclaims any obligation to update any forward-looking statements, except as required by law.


Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Qualys monitors non-GAAP measures of Four-Quarter Bookings, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA.

Qualys monitors Four-Quarter Bookings to understand sales trends for its business. Qualys believes this metric provides an additional tool for investors to use in assessing its business performance in a way that more fully reflects current business trends than reported revenues and reduces the variations in any particular quarter caused by customer subscription renewals. Qualys believes Four-Quarter Bookings reflects the material sales trends for its business because it includes sales of subscriptions to new customers, as well as subscription renewals and upsells of additional subscriptions to existing customers.

Qualys also monitors non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA to evaluate its ongoing operational performance and enhance an overall understanding of its past financial performance. Qualys believes that these non-GAAP metrics help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses, as well as the related tax effects, that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA. Furthermore, Qualys uses these measures to establish budgets and operational goals for managing its business and evaluating its performance. Qualys also believes that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods with other companies in its industry.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.


Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     2013     2012  

Revenues

   $ 27,749      $ 23,382      $ 78,923      $ 66,763   

Cost of revenues (1)

     6,415        4,634        18,134        13,423   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     21,334        18,748        60,789        53,340   

Operating expenses:

        

Research and development (1)

     5,151        5,076        15,739        15,325   

Sales and marketing (1)

     10,411        8,797        30,739        27,827   

General and administrative (1)

     4,277        3,154        12,226        8,811   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     19,839        17,027        58,704        51,963   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     1,495        1,721        2,085        1,377   

Other income (expense), net:

        

Interest expense

     (7     (38     (37     (153

Interest income

     115        1        273        2   

Other income (expense), net

     (84     60        (370     (44
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     24        23        (134     (195
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before provision for income taxes

     1,519        1,744        1,951        1,182   

Provision for income taxes

     210        77        372        77   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 1,309      $ 1,667      $ 1,579      $ 1,105   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common stockholders

   $ 1,307      $ 415      $ 1,577      $ 264   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to common stockholders:

        

Basic

   $ 0.04      $ 0.07      $ 0.05      $ 0.05   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.04      $ 0.06      $ 0.04      $ 0.04   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used in computing net income per share attributable to common stockholders:

        

Basic

     32,088        5,843        31,789        5,540   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     36,247        26,545        35,704        25,972   
  

 

 

   

 

 

   

 

 

   

 

 

 

(1)       Includes stock-based compensation as follows:

        

Cost of revenues

   $ 103      $ 68      $ 307      $ 195   

Research and development

     253        167        697        484   

Sales and marketing

     363        349        804        856   

General and administrative

     902        443        2,000        1,048   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stock-based compensation

   $ 1,621      $ 1,027      $ 3,808      $ 2,583   
  

 

 

   

 

 

   

 

 

   

 

 

 


Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2013     2012      2013     2012  

Net income

   $ 1,309      $ 1,667       $ 1,579      $ 1,105   

Change in foreign currency translation gain (loss), net of zero tax

     (12     41         (73     (17

Available-for-sale investments:

         

Change in net unrealized gain on investments, net of zero tax

     52        —           37        —     

Less: reclassification adjustment for net gain included in net income

     (1     —           (9     —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Net change, net of zero tax

     51        —           28        —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Other comprehensive income (loss), net

     39        41         (45     (17
  

 

 

   

 

 

    

 

 

   

 

 

 

Comprehensive income

   $ 1,348      $ 1,708       $ 1,534      $ 1,088   
  

 

 

   

 

 

    

 

 

   

 

 

 


Qualys, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

 

     September 30,
2013
    December 31,
2012
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 42,118      $ 34,885   

Short-term investments

     58,748        83,547   

Accounts receivable, net

     25,022        24,545   

Prepaid expenses and other current assets

     5,116        4,377   
  

 

 

   

 

 

 

Total current assets

     131,004        147,354   

Restricted cash

     —          114   

Long-term investments

     24,805        —     

Property and equipment, net

     22,493        18,148   

Intangible assets, net

     2,492        2,811   

Goodwill

     317        317   

Other noncurrent assets

     564        1,574   
  

 

 

   

 

 

 

Total assets

   $ 181,675      $ 170,318   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current Liabilities:

    

Accounts payable

   $ 1,097      $ 2,031   

Accrued liabilities

     7,950        7,803   

Deferred revenues, current

     61,389        56,497   

Capital lease obligations, current

     1,071        1,183   
  

 

 

   

 

 

 

Total current liabilities

     71,507        67,514   

Deferred revenues, noncurrent

     8,456        8,616   

Income taxes payable, noncurrent

     684        594   

Other noncurrent liabilities

     533        1,231   

Capital lease obligations, noncurrent

     —          808   
  

 

 

   

 

 

 

Total liabilities

     81,180        78,763   

Stockholders’ equity:

    

Common stock

     32        31   

Additional paid-in capital

     174,056        166,651   

Accumulated other comprehensive loss

     (1,080     (1,035

Accumulated deficit

     (72,513     (74,092
  

 

 

   

 

 

 

Total stockholders’ equity

     100,495        91,555   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 181,675      $ 170,318   
  

 

 

   

 

 

 


Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)

 

     Nine Months Ended  
     September 30,  
     2013     2012  

Cash flows from operating activities:

    

Net income

   $ 1,579      $ 1,105   

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

    

Depreciation and amortization expense

     7,050        5,397   

Bad debt expense

     211        182   

Loss on disposal of property and equipment

     12        3   

Stock-based compensation

     3,808        2,583   

Non-cash interest expense

     —          24   

Amortization of premiums on investments

     188        —     

Changes in operating assets and liabilities:

    

Accounts receivable

     (688     (2,884

Prepaid expenses and other assets

     229        147   

Accounts payable

     (939     (542

Accrued liabilities

     (608     (1,529

Deferred revenues

     4,732        6,415   

Other noncurrent liabilities

     (383     (232
  

 

 

   

 

 

 

Net cash provided by operating activities

     15,191        10,669   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of investments

     (113,689     —     

Sales and maturities of investments

     113,524        —     

Purchases of property and equipment

     (10,364     (8,104

Release of restricted cash

     114        —     
  

 

 

   

 

 

 

Net cash used in investing activities

     (10,415     (8,104
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Proceeds from exercise of stock options

     3,374        1,998   

Income tax benefits from exercise of stock options

     59        —     

Principal payments under capital lease obligations

     (920     (1,763

Payment of consideration related to acquisition

     —          (1,000

Payment for offering costs in connection with initial public offering

     —          (560
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     2,513        (1,325
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (56     16   
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     7,233        1,256   

Cash and cash equivalents at beginning of period

     34,885        24,548   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 42,118      $ 25,804   
  

 

 

   

 

 

 

Non-cash investing and financing activities:

    

Purchases of property and equipment included in accrued liabilities

   $ 731      $ —     

Vesting of early exercised common stock options

   $ 204      $ 86   

Deferred offering costs not yet paid

   $ —        $ 1,973   

Issuance of common stock for acquisition of license

   $ —        $ 51   


Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

FOUR-QUARTER BOOKINGS

(Unaudited)

(in thousands)

 

     Four Quarters Ended  
     September 30,  
     2013      2012  

Revenues

   $ 103,580       $ 87,416   

Deferred revenues, current

     

Beginning of the Four-Quarter Period

     51,693         40,413   

Ending

     61,389         51,693   
  

 

 

    

 

 

 

Net change

     9,696         11,280   
  

 

 

    

 

 

 

Four-Quarter Bookings

   $ 113,276       $ 98,696   
  

 

 

    

 

 

 


Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

EBITDA AND ADJUSTED EBITDA

(Unaudited)

(in thousands)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     2013      2012  

Net income

   $ 1,309      $ 1,667      $ 1,579       $ 1,105   

Depreciation and amortization of property and equipment

     2,452        1,739        6,731         5,066   

Amortization of intangible assets

     105        112        319         331   

Interest expense

     7        38        37         153   

Provision for income taxes

     210        77        372         77   
  

 

 

   

 

 

   

 

 

    

 

 

 

EBITDA

     4,083        3,633        9,038         6,732   

Stock-based compensation

     1,621        1,027        3,808         2,583   

Other (income) expense, net

     (31     (61     97         42   
  

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted EBITDA

   $ 5,673      $ 4,599      $ 12,943       $ 9,357   
  

 

 

   

 

 

   

 

 

    

 

 

 


Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended      Nine Months Ended  
     September 30,      September 30,  
     2013      2012      2013      2012  

GAAP gross profit

   $ 21,334       $ 18,748       $ 60,789       $ 53,340   

Plus:

           

Stock-based compensation

     103         68         307         195   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP gross profit

   $ 21,437       $ 18,816       $ 61,096       $ 53,535   
  

 

 

    

 

 

    

 

 

    

 

 

 

GAAP income from operations

   $ 1,495       $ 1,721       $ 2,085       $ 1,377   

Plus:

           

Stock-based compensation

     1,621         1,027         3,808         2,583   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP income from operations

   $ 3,116       $ 2,748       $ 5,893       $ 3,960   
  

 

 

    

 

 

    

 

 

    

 

 

 

GAAP net income

   $ 1,309       $ 1,667       $ 1,579       $ 1,105   

Plus:

           

Stock-based compensation

     1,621         1,027         3,808         2,583   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income

   $ 2,930       $ 2,694       $ 5,387       $ 3,688   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income attributable to common stockholders

   $ 2,927       $ 671       $ 5,382       $ 881   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income per share attributable to common stockholders:

           

Basic

   $ 0.09       $ 0.11       $ 0.17       $ 0.16   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

   $ 0.08       $ 0.10       $ 0.15       $ 0.14   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average shares used in computing non-GAAP net income per share attributable to common stockholders

           

Basic

     32,088         5,843         31,789         5,540   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted

     36,247         26,545         35,704         25,972   
  

 

 

    

 

 

    

 

 

    

 

 

 


Qualys, Inc.

NET INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     2013     2012  

Numerator:

        

Net income

   $ 1,309      $ 1,667      $ 1,579      $ 1,105   

Net income attributable to participating securities

     (2     (1,252     (2     (841
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common stockholders - basic

     1,307        415        1,577        264   

Undistributed earnings reallocated to participating securities

     1        1,249        —          839   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common stockholders - diluted

   $ 1,308      $ 1,664      $ 1,577      $ 1,103   
  

 

 

   

 

 

   

 

 

   

 

 

 

Denominator:

        

Weighted-average shares used in computing net income per share attributable to common stockholders - basic

     32,088        5,843        31,789        5,540   

Effect of potentially dilutive securities:

        

Convertible preferred stock

     —          17,597        —          17,597   

Common stock options

     4,159        3,105        3,915        2,829   

Contingently issuable shares related to an acquisition

     —          —          —          6   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares used in computing net income per share attributable to common stockholders - diluted

     36,247        26,545        35,704        25,972   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income per share attributable to common stockholders

        

Basic

   $ 0.04      $ 0.07      $ 0.05      $ 0.05   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.04      $ 0.06      $ 0.04      $ 0.04