Qualys, Inc. (NASDAQ:QLYS) Q4 2023 Earnings Call Transcript

And so without TotalCloud solution, we combine that into a single risk view as well to say. Or maybe your S3 bucket is fine but your user in O365 MFA is disabled and that same user has access to the cloud bucket. And so now you have a risk. So we are encouraged to see the early adoption of TotalCloud for net new customers and we do right now believe that investing in demand gen for cloud-specific demand will be something that we will be doing as part of our ’24 strategy.

Brian Essex: Got it. Super helpful. And maybe a quick follow-up for maybe for Joo Mi. Any thoughts on providing maybe some metrics so we can track some of these emerging segments outside of the core, I guess, VMDR-based risk management suite whether it’s EDR XDR or the cloud security maybe like a percentage of net new business attributable to the emerging segments. Just to get a sense of traction.

Joo Mi Kim: Yes. That’s a good point. We’ll think about it internally and as we always do to make sure that we disclose relevant metrics to provide more clarity and guidance.

Brian Essex: Got it. Super. Well, thank you very much. Appreciate all the clarity.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Hamza Fodderwala from Morgan Stanley.

Hamza Fodderwala: Hi. Good evening. Thank you for taking my question. I appreciate it. I just had one clarification around the Microsoft relationship. I understand they’re a partner as well as a customer on the customer front. Any comment there around this Microsoft commitment to Qualys as a customer going forward? Thank you.

Sumedh Thakar: We have a really good relationship with Microsoft. They are a partner with us. They internally used Qualys. I think those are two completely different teams and they have different goals and the team that is working on the Defender piece is they’re looking at their solution. The internal team is looking to make sure that they get the best solution out there and they have very good relationship with us. We continue to work with them. And so at this point the combined, sort of, with Azure the partner piece as well as their internal usage of Qualys within the low single digits as a percentage of revenue. And so while we continue to look at the opportunity to expand with them. At this point there is really no change from what we have seen or heard.

Hamza Fodderwala: Thank you.

Operator: Thank you. At this time there are no further questions. This concludes today’s conference call. Thank you for participating. You may now disconnect.