The following is a summary of the Qualys, Inc. (QLYS) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Qualys, Inc. reported a revenue growth of 8% amounting to $153.9 million in Q3 2024, driven by increased channel contributions, which now comprise 47% of the total revenue.

• Adjusted EBITDA was $69.7 million with a 45% margin, while operating expenses rose by 12% primarily due to heightened sales and marketing investments.

• The net dollar expansion rate improved to 103%, reflecting stronger upsell performance compared to the previous quarter.

• EPS for Q3 2024 was reported at $1.56, and the free cash flow stood at $57.6 million, representing a 37% margin.

Business Progress:

• Launch of Enterprise Threat Management (ETM), a comprehensive cloud-based risk operation platform, which integrates Qualys and non-Qualys data for real-time risk management.

• Significant new customer acquisitions and upsells, notably in the federal sector with multi-million-dollar deals, demonstrating successful expansion efforts in this vertical.

• Expansion into the Australian market with IRAP assessment at the Protected level and partnership with E&Y for delivering managed services.

• Qualys' focus on consolidating cybersecurity solutions has led to increased adoption rates, adding operational and cost efficiencies for clients.

Opportunities:

• The launch of new products like ETM and TruLens, along with innovations in artificial intelligence and cybersecurity risk management, presents significant market opportunities.

• Expansion in federal and international markets, particularly with new compliance and standards achievements, opens additional avenues for growth.

Risks:

• Concerns around prolonged deal cycles and ongoing budget scrutiny which could affect the sales pipeline and revenue growth in the near term.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.