Qualys (QLYS) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Business performance and outlook

• Net new business has shown double-digit growth for four consecutive quarters despite a challenging macro environment.

• Net retention rate declined to 102% from 108% year-over-year, prompting increased focus on customer value and sales training.

• No significant macro improvement is assumed for the near term; focus remains on execution and ROI-driven investments.

• New product launches in the second half of the year are expected to impact bookings growth in the following year.

• Federal business expansion is anticipated, with FedRAMP High certification expected later this year.

Product innovation and platform strategy

• Vulnerability management (VM) remains foundational, with a shift toward outcome-driven solutions like patch management and mitigation.

• Recent launches include mitigation capabilities and AI security solutions, with further investment in AI security planned for next year.

• TotalCloud solution and cloud security offerings are gaining traction, with potential for increased wallet share as customers seek platform consolidation.

• Certificate management and machine identity are integrated into the platform, reducing the need for siloed tools.

• New enterprise risk management platform will unify DevOps, runtime, and cloud findings to prioritize and remediate based on actual risk.

Industry trends and customer needs

• Customers are optimizing cybersecurity spend, focusing on risk reduction and consolidation of tools.

• Cloud security is a fast-growing segment, with customers preferring integrated solutions over point products.

• Certificate lifecycle management is gaining importance due to evolving security standards and quantum computing threats.

• Tool sprawl remains a concern; platform consolidation is increasingly valued for operational efficiency and security outcomes.

• AI workload visibility and security are emerging needs, addressed by leveraging existing asset management deployments.