“With our FedRAMP high-ready platform anticipating FedRAMP high certification in 2025 and our continued investment in federal GTM, we are excited about the opportunity as the federal government looks to change the way things have been done in the past with costly on-prem solutions and move to cloud-based, more effective, and cost-efficient solutions for cybersecurity risk management.”

In context

“Sumedh Thakar (President and CEO): Thank you, Blair, and welcome to our fourth quarter earnings call. Looking back to last year, I can truly say that 2024 was a year of incredible product innovation and rebranding of Qualys as we celebrate our 25th year anniversary. As one of the first SaaS security companies in the world, we have continuously strived to exceed market expectations and serve as the leader when it comes to software technology and cybersecurity. The message is clear. Today's CISOs want to anchor cybersecurity conversations around business reflection and the impact of their cybersecurity spend. The market wants a platform that enables them to speak a unified language of risk to their boards and business partners while letting their teams pick the underlying platform and best-of-breed solutions for specific areas in cybersecurity, rather than an aspirational goal of consolidating 50 different cybersecurity vendors into one. Recognizing the difficulty and complexity of implementing and utilizing multiple security solutions from numerous security vendors, we have evolved our platform, previously focused on vulnerability scanning and telemetry collection, to become a full-featured risk analytics and quantification platform bringing data analytics and insights with embedded AI models to customers while giving them the flexibility to continue to leverage their existing security tools. The net result for customers is a vendor-neutral outer layer that provides full visibility and risk scoring for an organization's entire attack surface, aggregates and correlates all security findings, leveraging over 25 threat feeds, and powers a single AI-driven workflow that centralizes, quantifies, articulates, prioritizes, and remediates cyber risk, delivering the efficiencies of consolidation. The rebranding and continuous enhancement result from our unwavering focus on product, our customers' needs, and addressing their challenges with innovative new solutions. In 2024, this collaboration led to significant platform enhancements that bolstered our strategic relevance and furthered our market opportunity. We introduced Trulicity Eliminate to extend our remediation capabilities. We enhanced our cybersecurity asset management capabilities with patent-pending technologies to turn previously unknown internal and external-facing assets into security-managed assets in real-time. We brought the micro-attack prioritization matrix into the Qualys tools platform. Unified cloud infrastructure entitlement management, CIM, container runtime protection, Kubernetes posture management, fast security posture management, and our AI-powered truth insight capabilities into our total cloud CNAP platform with multi-cloud IT SME integration, strengthening our market position and further fixing the power of our platform. We went GA with our enterprise tourist management solution, setting a new gold standard in the industry for proactive cyber risk management and planting the flag for organizations to operationalize a modern risk operation center, ROC, at scale. In less than a quarter since going GA with ATM, we have seen strong interest with currently over 50 active prospects for POC. Our ATM solution goes beyond current continuous threat exposure management, CTM platforms, with our ability to speak business language, effect remediation actions, and partner with cyber insurance underwriters. We believe these innovations will allow our customers to standardize on a trusted platform like Qualys, layering on top of their other existing cybersecurity solutions. With a long track record of solving the most challenging cybersecurity challenges, challenging use cases for our customers, Qualys pioneered the cybersecurity patching category, seamlessly integrating it into our platform and bridging the gap between IT and security teams. Last year, we successfully deployed over 100 million patches with Qualys Agent, eliminating over 100 million potential incidents in our customer environment. Despite this achievement, our journey has shown that patching alone is simply not enough. This is why we introduced Trulicity Eliminate, which revolutionizes patching by empowering organizations to isolate critical assets or implement compensating controls, protecting against zero-day vulnerabilities and configurations when patches are not available or feasible to deploy. This is a major competitive advantage, and our innovation does not stop there. We recently introduced Truist Uninstall as a fourth component to our Truist Eliminate package. Truist Uninstall allows organizations to hunt for, detect, and uninstall end-of-life software, misused or unused applications, and other forms of tech debt while removing one of the most highly exploited attack paths available to adversaries with a simple click of a button. In cloud, our innovation engine continues to execute at a high level. We believe we are increasingly well-positioned to expand our share of the evolving cloud market as CISOs look to evolve their space approach into multi-cloud environments as well. Advancing our competitive differentiation, we recently brought many new capabilities into our agent and agentless total cloud Synapse solution, including comprehensive attack path analysis, enhanced risk quantification leveraging your risk insight capability, and automated no-code, low-code cloud workflow remediation. The latest release, which we call Total Cloud 3.0, unleashes an organization's ability to easily visualize the entire blast radius of an asset's attack path and systematically identify, prioritize, and resolve critical threats for pre-runtime and runtime protection. As a result, Total Cloud 3.0 is streamlining operations with an unparalleled outside-in and inside-out perspective of an organization's cybersecurity posture for secure cloud consumption. In our view, Total Cloud 3.0 is one of the most comprehensive CNAP solutions available in the market today, and its growing momentum is a strong testament to the assurance customers place in Qualys every day. Finally, with the introduction of Qualys Total AppSec, we are now providing customers with the ability to expand their app sec assessments into expanding attack surfaces with the use of APIs for B2B and mobile apps. Qualys Total AppSec includes comprehensive inventory and credit assessment of their web applications and APIs with unified malware detection and automated response. Moving on to the business update. Over the past several months, I personally met with many customers, prospects, and partners. These conversations all center around the same topic. Customers require a holistic view of the cyber risk when it is quantified and prioritized, articulated in terms of risk to their business, and remediated to an acceptable level in a single integrated workflow. Given Qualys' blueprint for delivering these requirements with greater value to customers, our technologies are not only fueling new local land but also helping to increase broader platform adoption, especially in the areas of VMDR cybersecurity management, patch management, cloud security, and now the risk operation center delivered by Qualys ATM. With thousands of customers consolidating on Qualys' enterprise risk platform, let me again share a couple of recent wins which illustrate why these companies are turning to Qualys to help unify their solution security tools, quantify cyber risk in their environment, and fortify their security operations. First, an existing global 100 multinational insurance company security team with multiple tools in their environment faced increasing personnel costs and struggled with limited visibility into their overall risk profile. Through a highly competitive RFP process, this customer chose Qualys and launched an initial collapse of their security stack. They ingested data from other cybersecurity tools into the Qualys platform, enriched asset context with business information brought by their CMDB integration, and centralized the remediation. This includes the purchase of eight Qualys modules and deploying VPN to begin orchestrating the ROC, resulting in a seven-figure annual bookings fee. We are now quickly migrating numerous data sources to the Qualys platform and delivering the outcome of consolidation and quantifiable risk and automated response aligned with business priorities. Turning to the momentum we see with the Total Cloud Synapse solution, in a mid-six-figure booking upside with a global shipping conglomerate, this existing VMDR cybersecurity asset management, vulnerability scanning, and customer assessment remediation customer launched and initiated the further unification of their security stack and replaced its incumbent cloud-only security vendor. Through its evaluation, this customer remarked that alternate point solutions added complexity to their operations, lacked integration, and missed detection, which hindered their ability to assess risk and consolidate their security tools. Today, through a highly scalable natively integrated CNAP solution, this customer is leveraging the Qualys Enterprise Service platform to combine insights built to run by the proactive risk management while actively detecting anomalies, preventing zero-day attacks, closing security gaps, and remediating risk with IBM integration through a single dashboard across its on-prem, hybrid, and multi-cloud assets. These capabilities provide the visibility and automation necessary to defend against today's adversaries and represent a significant long-term opportunity for Qualys. With seamlessly integrated solutions, they would deliver natively on our platform to solve modern security challenges, more and more Qualys customers are beginning to understand how cybersecurity transformation drives better security outcomes, saves time, and costs less. As a result, customers spending $500,000 or more with us in Q4 grew 13% from a year ago to 207. Consolidating workflows is not just happening with customers. It is also embraced and prioritized by our partners. Underscored by an increasingly strong mix of new business and significant growth, we continue to endorse our partner-first sales motion. Partner-led deal registration and win rates increased in Q4. In addition, with the launch of ETM, many of our security service providers are now deeply engaged for the first time in delivering new managed risk operations and ROC services encompassing risk quantification, security tool integration, risk monitoring, and Gotcha. Similar to how MSSPs monetized the SOC for post-breach response, the MROC is now a new frontier for MSSPs to capitalize on the centralized and automated approach to pre-breach risk management. Partners are actively spearheading these new initiatives with Qualys as their MROC platform of choice. Turning to our executive team update, I would like to congratulate Dino DiMarino, our Chief Revenue Officer, who has decided to accept a CEO role at another company. I wish Dino well and thank him for his contributions during his tenure at Qualys. As we continue to focus on executing our product-led growth vision and partner-first strategy, I plan to oversee the sales organization while continuing to grow and scale the sales group. We are fortunate to have a talented next-level team of regional sales leaders who are energized by our competitive position in the market and ready to drive our business forward. With our FedRAMP high-ready platform anticipating FedRAMP high certification in 2025 and our continued investment in federal GTM, we are excited about the opportunity as the federal government looks to change the way things have been done in the past with costly on-prem solutions and move to cloud-based, more effective, and cost-efficient solutions for cybersecurity risk management. In summary, I could not be more confident in our market position and opportunities for growth over time. Our leadership as a trusted security platform is a clear reflection of Qualys' dedication to continuous innovation, delivering value to customers, and transforming cybersecurity risk management. Looking ahead to 2025, we will continue our disruptive innovation further as well as our go-to-market investment and execute our strategic vision with a balanced approach to long-term growth and profitability. With that, I'll turn the call over to Joo Mi to further discuss our fourth quarter results and outlook for the first quarter and full year 2025.”