Qualys, Inc. (NASDAQ:QLYS) Q1 2024 Earnings Call Transcript

Joshua Tilton: Hey guys, can you hear me? I apologize in the background noise. I’m at this small cybersecurity conference called RSS.

Sumedh Thakar: We can hear you.

Joshua Tilton: Two quick ones for me. The first one is just, could you maybe talk about how the billings growth in the quarter, whether that was how that shook out relative to your expectations and how you see billings maybe growing for the rest of the year relative to the revenue guidance you just gave. And then my follow-up is great traction on the new customer, the new growth customer side of the business. I think you called out three straight quarters with double-digit growth. How do we see that? Like, where am I looking for that and what you guys disclosed so that I can kind of see this coming through in the numbers and how — and I guess is that on the partner — is that coming from the partner side? Is that coming from the direct side? Just maybe a little bit more color on where that new customer growth is coming from, how durable is it and how I can better see it in the numbers would be helpful. Thank you.

Joo Mi Kim: Yes. In terms of current billings, 8%, we were hoping to do better, but honestly, I think that it’s a fair representative of the business momentum that we see today because it does reflect the net dollar expansion rate having gone down by another percentage in Q1 offset partially by the traction — continuing traction in the new business. And so I would say that if you were to look for guidance in terms of the calculated current billings for the full year, we would say it would be roughly in line with our revenue guidance today, which is 8% to 10% for the full year. In terms of the new business, the reason why we decided to talk about new business this quarter is because we are seeing a trend like three consecutive quarters is something that we thought was meaningful in us — for us to talk about and disclose.

And majority of that is driven by our channel partners. So the growth is coming from channel partners and I think that if you were to look at the magnitude of it, you can probably tell based on the current billings growth of 8%, net dollar expansion rate of 4%, the rest would be coming from the new business.

Operator: Thank you. And I’m not showing no further questions in the queue. With that, this concludes today’s conference. Thank you for your participation in today’s conference. This does conclude the program and you may now disconnect. Everyone, have a great day.