Qualys Announces Second Quarter 2017 Financial Results
REDWOOD CITY, Calif., Aug. 2, 2017 /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of cloud-based security and compliance solutions, today announced financial results for the second quarter ended June 30, 2017. For the quarter, the Company reported revenues of $55.3 million, net income under Generally Accepted Accounting Principles ("GAAP") of $7.2 million, non-GAAP net income of $10.1 million, Adjusted EBITDA of $20.4 million, GAAP earnings per diluted share of $0.18 and non-GAAP earnings per diluted share of $0.26.
"We reported strong results across the board for our second quarter driven by continued customer adoption of the Qualys Cloud Platform and its integrated Cloud Apps, further underscoring our highly scalable architecture and business model and the unique advantages it brings to our customers," said Philippe Courtot, chairman and CEO of Qualys. "Our Cloud Platform and integrated Cloud Apps are clear differentiators in the market as we help customers worldwide streamline their security and compliance solutions, reduce their spend drastically and at the same time, allow them to build security into their digital transformation initiatives for global visibility and better business outcomes. In addition, we were delighted to announce on Tuesday the acquisition of Nevis Networks, a network analysis and mitigation security company, based in Pune, India."
Second Quarter 2017 Financial Highlights
Revenues: Revenues for the second quarter of 2017 increased by 14% to $55.3 million compared to $48.5 million for the same quarter in 2016. Normalized for the impact of FX (foreign exchange) and the MSSP (Managed Security Service Provider) contract, revenues increased by 18% over the same quarter in 2016.
Gross Profit: GAAP gross profit for the second quarter of 2017 increased by 13% to $43.1 million compared to $38.2 million for the same quarter in 2016. GAAP gross margin percentage was 78% for the second quarter of 2017 compared to 79% for the same quarter in 2016. Non-GAAP gross profit for the second quarter of 2017 increased by 13% to $43.7 million compared to $38.6 million for the same quarter in 2016. Non-GAAP gross margin percentage was 79% for the second quarter of 2017 compared to 80% for the same quarter in 2016.
Operating Income: GAAP operating income for the second quarter of 2017 was $9.0 million compared to $5.7 million for the same quarter in 2016. Non-GAAP operating income for the second quarter of 2017 was $15.5 million compared to $11.8 million for the same quarter in 2016.
Net Income: GAAP net income for the second quarter of 2017 was $7.2 million, or $0.18 per diluted share, compared to $3.5 million, or $0.09 per diluted share, for the same quarter in 2016. Non-GAAP net income for the second quarter of 2017 was $10.1 million, or $0.26 per diluted share, compared to non-GAAP net income of $7.5 million, or $0.20 per diluted share, for the same quarter in 2016.
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2017 increased by 30% to $20.4 million compared to $15.7 million for the same quarter in 2016. As a percentage of revenues, Adjusted EBITDA was 37% for the second quarter of 2017 compared to 32% for the same quarter in 2016.
Second Quarter 2017 Business Highlights
Select New Customers:
-- Avago Technologies (Broadcom), Crowley Maritime Corporation, Helen of
Troy, Kohlberg Kravis & Roberts & Co., LendingTree, Munich RE,
Pinterest, Spectrum Brands, SYNLAB Group, Telegraph Media Group, Valeo,
Xilinx.
Business Highlights:
-- Announced the acquisition of Pune, India-based Nevis Networks, expanding
Qualys' domain expertise in passive scanning and deep packet inspection
as well as accelerating its entrance into the mitigation and response
market segment, natively from the Qualys Cloud Platform.
-- Released purpose-built content, workflows and reporting in Qualys Cloud
Platform to provide customers with continuous IT asset visibility, data
collection and risk evaluation for compliance with the European Union
(EU) General Data Protection Regulation (GDPR). This also helps
customers with ongoing protection of personal data across global IT
environments and third parties.
-- Launched a 30-day free unlimited service to businesses worldwide to
identify and track remediation of assets exploitable by the WannaCry
ransomware virus that has impacted hundreds of thousands of computers
around the world.
At Black Hat Qualys:
-- Unveiled new Qualys positioning and a Logo refresh highlighting the new
unified and simplified approach to prevention and response the Qualys
Cloud Platform and its Cloud Apps bring to the market, helping customers
consolidate their IT security and compliance stacks and build security
into their digital transformation initiatives.
-- Corporate Brochure:
https://www.qualys.com/docs/corporate-brochure.pdf
-- CIO/CISO Brochure: https://www.qualys.com/docs/ciso-brochure.pdf
-- Unveiled CloudView App Framework, which gives customers the full insight
across all their cloud environments - inventory, configuration and
continuous view of their security and compliance postures - and
showcased its first two components, Cloud Inventory (CI) and Cloud
Security Assessment (CSA). CloudView allows customers to expand their
vulnerability management program to the cloud with configuration
scanning capabilities and simplified workflows to assess, report,
monitor and remediate security-related configuration issues based on the
Center for Internet Security (CIS) benchmark. Currently in beta.
-- Unveiled CertView App Framework, which provides discovery and management
of digital certificates, and showcased its first two components,
Certificate Inventory (CRI) and Certificate Assessment (CRA), scheduled
for beta in September and for general availability before the end of Q4.
At the Gartner Security & Risk Management Summit:
-- Showcased four disruptive new Cloud Apps in the Qualys Cloud Platform:
-- Container Security: A new cloud-based Qualys solution that enables
customers to address security for containers in their DevOps
pipeline and deployments across cloud and on-premises environments.
Currently in beta.
-- File Integrity Monitoring: This highly scalable and centralized
solution reduces the cost and complexity of detecting policy and
compliance-related changes mandated by increasingly prescriptive
regulations such as the Payment Card Industry Data Security Standard
(PCI DSS). Currently in beta and scheduled for general availability
before the end of Q3.
-- Indication of Compromise: This service detects activity and
behavioral changes on the endpoint and delivers customers a
continuous view of suspicious activity that may indicate the
presence of known malware, unknown variants, or threat actor
activity on devices both on and off the network. Currently in beta
and scheduled for general availability before the end of Q3.
-- Security Configuration Assessment: A new add-on to Qualys
Vulnerability Management that allows customers to expand their
vulnerability management program with configuration scanning
capabilities and simplified workflows to assess, report, monitor and
remediate security-related configuration issues based on the CIS
benchmark.
-- Announced that the FedRAMP-certified Qualys Cloud Platform now supports
the requirements laid out in the 2017 White House Executive Order (EO)
on Strengthening the Cybersecurity of Federal Networks and Critical
Infrastructure. The Qualys Cloud Platform's integrated out-of-the-box
support for the Defense Information Systems Agency Security Technical
Implementation Guides (DISA-STIG) and the National Institute of
Standards and Technology Cybersecurity Framework (NIST CSF) reduces the
time and cost for agencies to meet EO requirements.
Financial Performance Outlook
Third Quarter 2017 Guidance: Management expects revenues for the third quarter of 2017 to be in the range of $58.2 million to $58.9 million, representing 14% to 16% growth over the same quarter in 2016 or estimated 17% to 18% growth normalized for the impact of FX and the MSSP contract. GAAP net income per diluted share is expected to be in the range of $0.13 to $0.15, which assumes an effective income tax rate of 19%. Non-GAAP net income per diluted share is expected to be in the range of $0.21 to $0.23, which assumes an effective non-GAAP income tax rate of 36%. Third quarter 2017 EPS estimates are based on approximately 40.0 million weighted average diluted shares outstanding for the quarter.
Full Year 2017 Guidance: Management now expects revenues for the full year 2017 to be in the range of $226.8 million to $228.3 million, up from the previous guidance range of $225 million to $228 million. Expected growth over the full year 2016 is 15% or estimated 17% to 18% growth normalized for the impact of FX and the MSSP contract. GAAP net income per diluted share is now expected to be in the range of $1.02 to $1.06, up from the previous guidance range of $1.00 to $1.06. This assumes an effective income tax rate of (36%), up from the previous assumption of (55%). Non-GAAP net income per diluted share is now expected to be in the range of $0.87 to $0.91, up from the previous guidance range of $0.81 to $0.86. This assumes an effective non-GAAP income tax rate of 36%. Full year 2017 EPS estimates are now based on approximately 39.9 million weighted average diluted shares outstanding, up from the previous assumption of 39.6 million.
Investor Conference Call
Qualys will host a conference call and live webcast to discuss its second quarter 2017 financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Wednesday, August 2, 2017. To access the conference call, dial (877) 881-2609 in the U.S. or +1 (970) 315-0463 for international participants with conference ID # 48213309. The live webcast of Qualys' earnings conference call, prepared remarks, and investor presentation can also be accessed at https://investor.qualys.com/events.cfm. A replay of the conference call will be available through the same webcast link following the end of the call.
Investor Contact
Joo Mi Kim
Vice President, FP&A and Investor Relations (650) 801-6100
ir@qualys.com
About Qualys, Inc.
Qualys, Inc. (NASDAQ: QLYS) is a pioneer and leading provider of cloud-based security and compliance solutions with over 9,300 customers in more than 120 countries, including a majority of each of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline their security and compliance solutions and build security into digital transformation initiatives for greater agility, better business outcomes and substantial cost savings. The Qualys Cloud Platform and its integrated Apps deliver businesses critical security intelligence continuously, enabling them to automate the full spectrum of auditing, compliance and protection for IT systems and web applications across on-premises, endpoints and elastic clouds. Founded in 1999, Qualys has established strategic partnerships with leading managed service providers and consulting organizations including Accenture, BT, Cognizant Technology Solutions, Deutsche Telekom, Fujitsu, HCL Technologies, HP Enterprise, IBM, Infosys, NTT, Optiv, SecureWorks, Tata Communications, Verizon and Wipro. The company is also a founding member of the Cloud Security Alliance. For more information, please visit www.qualys.com.
Qualys and the Qualys logo 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: the growth of our business, including adoption of our existing solutions and our new offerings to both existing and new customers; our expectations regarding the introduction of new solutions; the capabilities of our platform; the expansion of our partnerships and the related benefits of such partnerships; our strategy and our business model and our ability to execute such strategy; our guidance for revenues, GAAP EPS and non-GAAP EPS for the third quarter and full year 2017, and our expectations for the number of weighted average diluted shares outstanding and effective income tax rate for the third quarter and full year 2017. 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; the ability of our platform and solutions to perform as intended; customer acceptance and purchase of our existing solutions and new solutions; real or perceived defects, errors or vulnerabilities in our products or services; our ability to retain existing customers and generate new customers; the budgeting cycles, seasonal buying patterns and length of our sales cycle; our ability to manage costs as we increase our customer base and the number of our platform solutions; the market for cloud solutions for IT security and compliance not increasing at the rate we expect; competition from other products and services; fluctuations in currency exchange rates, unexpected fluctuations in our effective tax rate on a GAAP and non-GAAP basis, our ability to effectively manage our rapid growth and our ability to anticipate future market needs and opportunities; any unanticipated accounting charges; and general market, political, economic and business conditions in the United States as well as globally. 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 quarter ended March 31, 2017, filed with the Securities and Exchange Commission on May 5, 2017. 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 operating measures of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP net income per diluted share. In computing these non-GAAP financial measures, Qualys excludes the effects of stock-based compensation expense and non-recurring expenses. Qualys also monitors Adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, other (income) expense, net and non-recurring expenses) and free cash flow (defined as cash provided by operating activities less purchases of property and equipment, and capitalized software development costs). Estimated impact of the MSSP contract signed in February 2016 refers to the difference between the estimated revenue recognized under the new terms in the MSSP contract and the estimated revenue that would have been recognized without the MSSP contract, assuming an appropriate renewal rate. The percentage impact is the net benefit, only in the contract year in which it occurred. Qualys believes that these non-GAAP operating 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 expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share and Adjusted EBITDA.
Furthermore, Qualys uses these operating measures to establish budgets and operational goals for managing its business and evaluating its performance. Qualys monitors free cash flow as a liquidity measure to provide useful information to management and investors about the amount of cash generated by the Company that, after the acquisition of property and equipment and capitalized software development costs, can be used for strategic opportunities, including investing in its business, making strategic acquisitions and strengthening the balance sheet. Qualys also believes that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non- GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and free cash flow provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods with other companies in its industry. Non-GAAP net income per diluted share for the three and six months ended June 30, 2016 excludes approximately $0.7 million of non-recurring expenses related to the remittance of payroll taxes from year 2013 through May 2016. During this same period, the Company has not excluded amounts related to other non-recurring items from non-GAAP net income per diluted share because the Company has considered such amounts to be immaterial in any given quarter during such period.
We have not reconciled non-GAAP net income per diluted share guidance to GAAP net income per diluted share because we do not provide guidance on the various reconciling cash and non-cash items between GAAP net income and non-GAAP net income (i.e., stock-based compensation and non-recurring expenses). The actual dollar amount of reconciling items in the third quarter and full year 2017 is likely to have a significant impact on the Company's GAAP net income per diluted share in the third quarter and full year 2017, respectively. Accordingly, a reconciliation of the non-GAAP net income per diluted share guidance to the corresponding non-GAAP net income per diluted share is not available without unreasonable effort.
In order to provide a more complete picture of recurring core operating business results, the Company's non-GAAP net income and non-GAAP net income per diluted share include tax adjustments required to achieve the effective tax rate on a non-GAAP basis, which could differ from the GAAP effective tax rate. The Company believes its estimated non-GAAP effective tax rate of 36% in 2017 is a reasonable estimate under its global operating structure. The Company intends to re-evaluate the non-GAAP effective tax rate on an annual basis. However, it may adjust this rate during the year to take into account events or trends that it believes materially impact the estimated annual rate. The non-GAAP effective tax rate could be subject to change for a number of reasons, including but not limited to, significant changes resulting from tax legislation, material changes in geographic mix of revenues and expenses and other significant events.
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 Six Months Ended
June 30, June 30,
2017 2016 2017 2016
---- ---- ---- ----
Revenues $55,302 $48,466 $108,423 $94,714
Cost of revenues (1) 12,153 10,260 24,447 19,811
------ ------ ------ ------
Gross profit 43,149 38,206 83,976 74,903
Operating expenses:
Research and development (1) 10,525 9,488 20,348 17,597
Sales and marketing (1) 15,383 14,728 31,397 28,895
General and administrative (1) 8,232 8,278 15,566 15,102
----- ----- ------ ------
Total operating expenses 34,140 32,494 67,311 61,594
------ ------ ------ ------
Income from operations 9,009 5,712 16,665 13,309
Other income (expense), net:
Interest expense (1) (1) (3) (14)
Interest income 541 290 1,022 540
Other expense, net (180) (249) (206) (318)
---- ---- ---- ----
Total other income (expense),
net 360 40 813 208
--- --- --- ---
Income before income taxes 9,369 5,752 17,478 13,517
(Benefit from) provision for
income taxes 2,167 2,214 (11,654) 5,196
----- ----- ------- -----
Net income $7,202 $3,538 $29,132 $8,321
====== ====== ======= ======
Net income per share:
Basic $0.19 $0.10 $0.79 $0.24
===== ===== ===== =====
Diluted $0.18 $0.09 $0.74 $0.22
===== ===== ===== =====
Weighted average shares used in computing net
income per share:
Basic 37,277 35,120 36,887 34,869
====== ====== ====== ======
Diluted 39,535 38,143 39,207 37,988
====== ====== ====== ======
(1) Includes stock-based compensation as
follows:
Cost of revenues $536 $423 $1,037 $802
Research and development 1,505 1,493 2,726 2,788
Sales and marketing 1,129 1,389 2,213 2,638
General and administrative 3,277 2,017 4,803 3,791
Total stock-based compensation $6,447 $5,322 $10,779 $10,019
====== ====== ======= =======
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
---- ---- ---- ----
Net income $7,202 $3,538 $29,132 $8,321
Available-for-sale investments:
Change in net unrealized gain (loss) on
investments, net of tax (29) 80 (80) 273
Less: reclassification adjustment for
net realized gain (loss) included in
net income, net of tax 20 2 2 50
--- --- --- ---
Net change (9) 82 (78) 323
--- --- --- ---
Other comprehensive income (loss), net (9) 82 (78) 323
--- --- --- ---
Comprehensive income $7,193 $3,620 $29,054 $8,644
====== ====== ======= ======
Qualys, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
June 30, December 31,
-------- ------------
2017 2016
---- ----
Assets
Current assets:
Cash and cash
equivalents $130,572 $86,737
Short-term
investments 148,290 157,119
Accounts
receivable,
net 46,359 47,024
Prepaid
expenses and
other
current
assets 19,055 9,808
Total current
assets 344,276 300,688
Long-term
investments 45,003 45,725
Property and
equipment,
net 42,768 39,401
Deferred tax
assets, net 35,622 16,590
Intangible
assets, net 801 987
Goodwill 317 317
Restricted
cash 1,200 1,200
Other
noncurrent
assets 1,959 2,096
----- -----
Total assets $471,946 $407,004
======== ========
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts
payable $1,924 $2,051
Accrued
liabilities 13,836 13,317
Deferred
revenues,
current 124,738 114,964
Total current
liabilities 140,498 130,332
Deferred
revenues,
noncurrent 16,701 15,528
Other
noncurrent
liabilities 8,685 2,731
Total
liabilities 165,884 148,591
Stockholders' equity:
Common stock 38 36
Additional
paid-in
capital 277,020 266,794
Accumulated
other
comprehensive
loss (235) (156)
Retained
earnings
(accumulated
deficit) 29,239 (8,261)
Total
stockholders'
equity 306,062 258,413
Total
liabilities
and
stockholders'
equity $471,946 $407,004
======== ========
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Six Months Ended June 30,
2017 2016
---- ----
Cash flows from operating activities:
Net income $29,132 $8,321
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization
expense 9,783 7,828
Bad debt expense 296 106
Loss on disposal of property and
equipment 2 39
Stock-based compensation 10,779 10,019
Amortization of premiums and
accretion of discounts on
investments 850 390
Excess tax benefits from stock-
based compensation - (3,713)
Deferred income taxes (20,897) (85)
Excess tax benefits included in
deferred tax assets 8,368 -
Changes in operating assets and liabilities:
Accounts receivable 369 1,833
Prepaid expenses and other assets (1,067) (83)
Accounts payable (206) (2)
Accrued liabilities 109 4,886
Deferred revenues 10,947 4,237
Other noncurrent liabilities 477 685
--- ---
Net cash provided by operating
activities 48,942 34,461
------ ------
Cash flows from investing activities:
Purchases of investments (102,665) (87,364)
Sales and maturities of investments 111,288 75,156
Purchases of property and equipment (13,179) (8,966)
Net cash used in investing
activities (4,556) (21,174)
------ -------
Cash flows from financing activities:
Proceeds from exercise of stock
options 14,603 9,496
Excess tax benefits from stock-
based compensation - 3,713
Payments for taxes related to
employee net share settlement of
equity awards (15,154) -
------- ---
Net cash (used in) provided by
financing activities (551) 13,209
---- ------
Net increase in cash and cash
equivalents 43,835 26,496
Cash and cash equivalents at
beginning of period 86,737 91,698
Cash and cash equivalents at end of
period $130,572 $118,194
======== ========
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
EBITDA AND ADJUSTED EBITDA
(Unaudited)
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
---- ---- ---- ----
Net income $7,202 $3,538 $29,132 $8,321
Depreciation and
amortization of property
and equipment 4,854 3,885 9,564 7,609
Amortization of intangible
assets 109 109 219 219
Interest expense 1 1 3 14
(Benefit from) Provision
for income taxes 2,167 2,214 (11,654) 5,196
----- ----- ------- -----
EBITDA 14,333 9,747 27,264 21,359
Stock-based compensation 6,447 5,322 10,779 10,019
Other (income) expense, net (361) (41) (816) (222)
One-time tax related
expense - 716 - 716
--- ---
Adjusted EBITDA $20,419 $15,744 $37,227 $31,872
======= ======= ======= =======
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2017 2016 2017 2016
---- ---- ---- ----
GAAP Cost of revenues $12,153 $10,260 $24,447 $19,811
Less: Stock-based
compensation (536) (423) (1,037) (802)
---- ---- ------ ----
Non-GAAP Cost of revenues $11,617 $9,837 $23,410 $19,009
------- ------ ------- -------
GAAP Gross profit $43,149 $38,206 $83,976 $74,903
Plus: Stock-based
compensation 536 423 1,037 802
Non-GAAP Gross profit $43,685 $38,629 $85,013 $75,705
------- ------- ------- -------
GAAP Research and
development $10,525 $9,488 $20,348 $17,597
Less: Stock-based
compensation (1,505) (1,493) (2,726) (2,788)
Non-GAAP Research and
development $9,020 $7,995 $17,622 $14,809
------ ------ ------- -------
GAAP Sales and marketing $15,383 $14,728 $31,397 $28,895
Less: Stock-based
compensation (1,129) (1,389) (2,213) (2,638)
Non-GAAP Sales and
marketing $14,254 $13,339 $29,184 $26,257
------- ------- ------- -------
GAAP General and
administrative $8,232 $8,278 $15,566 $15,102
Less: Stock-based
compensation (3,277) (2,017) (4,803) (3,791)
Less: One-time tax related
expense - (716) - (716)
--- ---- --- ----
Non-GAAP General and
administrative $4,955 $5,545 $10,763 $10,595
------ ------ ------- -------
GAAP Operating expenses $34,140 $32,494 $67,311 $61,594
Less: Stock-based
compensation $(5,911) $(4,899) $(9,742) $(9,217)
Less: One-time tax related
expense - (716) - (716)
--- ---- --- ----
Non-GAAP Operating expenses $28,229 $26,879 $57,569 $51,661
------- ------- ------- -------
GAAP Income from operations $9,009 $5,712 $16,665 $13,309
Plus: Stock-based
compensation 6,447 5,322 10,779 10,019
Plus: One-time tax related
expense - 716 - 716
--- --- --- ---
Non-GAAP Income from
operations $15,456 $11,750 $27,444 $24,044
------- ------- ------- -------
GAAP Net income $7,202 $3,538 $29,132 $8,321
Plus: Stock-based
compensation 6,447 5,322 10,779 10,019
Plus: One-time tax related
expense - 716 - 716
Less: Tax adjustment (3,527) (2,030) (21,827) (3,535)
Non-GAAP Net income $10,122 $7,546 $18,084 $15,521
======= ====== ======= =======
Non-GAAP Net income per share:
Basic $0.27 $0.21 $0.49 $0.45
===== ===== ===== =====
Diluted $0.26 $0.20 $0.46 $0.41
===== ===== ===== =====
Weighted average shares used in computing
non-GAAP net income per share:
Basic 37,277 35,120 36,887 34,869
====== ====== ====== ======
Diluted 39,535 38,143 39,207 37,988
====== ====== ====== ======
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
FREE CASH FLOWS
(Unaudited)
(in thousands)
Six Months Ended June 30,
2017 2016
---- ----
GAAP Cash flows
provided by
operating
activities $48,942 $34,461
Less:
Purchases of
property and
equipment (13,179) (8,966)
------- ------
Non-GAAP Free
cash flows $35,763 $25,495
======= =======
Qualys, Inc.
RECONCILIATION OF U.S. GAAP REVENUE GROWTH AND CURRENT DEFERRED REVENUE GROWTH TO NORMALIZED GROWTH
(Unaudited)
(in thousands)
Reconciliation of U.S. GAAP Revenue Growth to Normalized Growth
Three Months Ended June 30,
2017 2016
---- ----
Revenues $55,302 $48,466
Y/Y Revenue
Change as
Reported
Under U.S.
GAAP 14.1% 21.5%
Plus: Impact
of MSSP
Contract
Signed in
Feb 2016 2.1% (2.8)%
Plus: Foreign
Exchange
Impact 1.4% 1.6%
--- ---
Normalized
Revenue
Growth 17.6% 20.4%
==== ====
Three Months Ended Year Ended
September 30, 2017 December 31, 2017
Revenue
Guidance Range $58,200 $58,900 $226,800 $228,300
Y/Y Revenue
Change as
Reported Under
U.S. GAAP 14.1% 15.5% 14.6% 15.3%
Plus: Estimated
Impact of MSSP
Contract
Signed in Feb
2016 1.5% 1.5% 1.6% 1.6%
Plus: Estimated
Foreign
Exchange
Impact 1.1% 1.1% 1.1% 1.1%
---
Estimated
Normalized
Revenue Growth 16.8% 18.2% 17.3% 18.1%
==== ==== ==== ====
Reconciliation of U.S. GAAP Current Deferred Revenue Growth to
Normalized Growth
As of June 30,
2017
---------------
Current Deferred Revenue $124,738
Y/Y Current Deferred
Revenue Change as Reported
Under U.S. GAAP 20.2%
Plus: Foreign Exchange
Impact 1.3%
---
Normalized Current Deferred
Revenue Growth 21.6%
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View original content:http://www.prnewswire.com/news-releases/qualys-announces-second-quarter-2017-financial-results-300498621.html
SOURCE Qualys, Inc.
