Qualys (QLYS) UBS Global Technology and AI Conference summary

Product strategy and innovation

• Emphasis on vulnerability management as a core risk management tool, with a shift toward actual remediation and ROI focus rather than just reporting.

• Platform approach consolidates asset discovery, scanning, prioritization, and patch management, driving customer adoption and efficiency.

• Introduction of Risk Operations Center (ROC) and enterprise risk management platform to aggregate risk data, quantify risk, and provide actionable board-level reporting.

• Launch of TruRisk Eliminate expands remediation beyond patching, offering mitigation for zero-day vulnerabilities and device isolation.

• TotalAI provides AI security assessment, addressing growing demand for AI risk management as organizations move LLMs into production.

Financial performance and outlook

• Achieved 14% billing CCB growth in Q3, attributed to improved internal execution and macro environment stabilization.

• Net dollar expansion rate stabilized and increased to 103% after previous declines, reflecting successful upsell and cross-sell efforts.

• Q4 expected to be more challenging due to tough comps, with guidance for billings growth in line with 8% revenue growth.

• Indirect channel revenue grew 17% in Q3, while direct sales lagged, prompting budget reallocation for 2025.

• Microsoft OEM wind-down created a 1% headwind in 2024, but impact will be immaterial next year.

Execution and organizational changes

• Hired first CRO and improved alignment between product, marketing, and sales, leading to five consecutive quarters of double-digit new business growth.

• Simplified go-to-market messaging around ROC and platform capabilities, resonating with CISOs and improving customer awareness.

• Focus on educating partners and customers about new solutions, aiming for a unified risk score and streamlined product offering.

• CPO role remains central to product and marketing integration, with leadership additions considered as needed.