Qualys, Inc.

Good day, and thank you for standing by. Welcome to the Qualis second quarter 2022 investor call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Blair King. Please go ahead.

Thank you, Crystal, and good afternoon and welcome, everyone, to Qualys' second quarter 2022 earnings call. Joining me today to discuss our results are Sumit Thakkar, the President and CEO, and Jumi Kim, our CFO. Before we get started, I would like to remind you that our remarks today will include forward-looking statements that generally relate to future events or future financial or operating performance. Actual results may differ materially from these statements. Factors that could cause results to differ materially are set forth in today's press release and our filings with the SEC, including our latest Form 10-Q and 10-K. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we will present both GAAP and non-GAAP financial measures. The reconciliation of GAAP to non-GAAP measures is included in today's earnings press release, And as a reminder, the press release, prepared remarks, and investor presentation are all available on the investor relations section of our website. So, I'd like to now turn the call over to Smed.

Thanks, Blair, and welcome everyone to our second quarter earnings call. We're pleased to report another quarter of continued revenue growth acceleration and cash flow generation as we drive a focused investment strategy for innovation and go-to-market scales. Despite global macroeconomic challenges and geopolitical uncertainties, growing cyber threats are driving CIOs and CISOs within organizations of all sizes to modernize their security platforms to reduce agents, cyber risk response times, operational complexity, as well as costs. Our continued strong growth reflects the commitment customers are making to the Qualys Cloud Platform to help drive these objectives. In Q2, there was a steady adoption of our vulnerability management detection and response, or VMDR solution, which is now deployed by 43% of customers worldwide. Key competitive VMDR wins in the quarter include a leading multinational chain of retail convenience stores, several global financial service companies, and public sector agencies, along with multiple new and existing customers down market, as well as in the Fortune 500. Further exhibiting our broader platform approach and expanding market opportunity, I will take a moment to share some of the successes we have seen with our customers and partners. First, on the customer front, an existing Europe-based Forbes 500 customer entered into a seven-figure competitive upsell agreement with us to expand its asset count with VMDR while adding patch management across their environment. Qualys was chosen over the competition given the platform's unified interface across public, hybrid, and multicloud assets, ease of use, superior performance, speed of detection, and automated patching capabilities without the need for a VPN. Next, a leading financial institution in the Middle East selected Qualys' cybersecurity asset management, VMDR, and patch management capabilities in a mid-six-figure new customer win. The ability to significantly enhance its security program with complete asset context, CMDB integration, alerting, and accurate response capabilities on a single integrated platform while consolidating agents were all key differentiators compared to vulnerability detection-only solutions in the market. We are executing our go-to-market agenda well, which includes our evolving partner ecosystem. Since launching our new partner program in May, we've already signed up two new large regional MSS partners in Europe and North America to further expand their ability to deliver managed cybersecurity services. Additionally, we're seeing an increase in new customer deal registrations by our partners. As our market share and brand awareness continues to strengthen, we are anticipating an increase in partner integration with our platform, which will further strengthen our strategic position, expand our ecosystem, and broaden our reach. On the platform side, this year has already been a strong year of innovation at Qualys. At our QSC event in San Francisco, attended by over 700 registrants, we showcased our thought leadership through the launch of VMDR 2.0 with TrueRisk, taking our differentiation in the market to the next level. With comprehensive risk scoring and ITSM integrations, customers can now focus on quickly identifying riskiest vulnerabilities on critical assets and help remediate with speed. Vulnerability management continues to be a cornerstone of customer security programs as they focus on improving their risk posture. Wallace's unified platform approach differentiates itself from other vulnerability reporting-only solutions by rapidly reducing risk for the most exploitable vulnerabilities with integrated patch management with the same agent. Our recent research shows that customers who scan and patch with Qualys as opposed to patching with alternate solutions can experience as much as 60% reduction in the meantime to remediate for the most exploitable vulnerabilities identified by CISA. Qualys' agents have deployed over 130 million patches for our customers validating our customers' desire to leverage vulnerability management platforms that help remediate vulnerabilities instead of just reporting on them. At Black Hat this week, we are featuring an organic extension to our cybersecurity asset management 2.0 application to include our recently announced external attack surface management capability. This new capability provides security and IT operational teams with unprecedented insights into blind spots and risk posture with a complete 360-degree view of all their known and unknown internet-exposed assets. Natively integrated with VMDR, this capability adds the external asset visibility to the already comprehensive internal asset visibility we provide on the platform instead of just adding another point solution for this feature. While many security software providers claim to offer a platform because they assemble an assortment of point products through acquisitions that are difficult to integrate, we don't see anyone coming close to offering the tightly integrated capabilities of our cloud-based platform. Especially in the current macroeconomic environment, we believe our organically developed and natively integrated platform that is also remediating and reducing risk can bring value to our customers as they get more security out of the single-callers platform. In summary, given our market opportunity, extendable platform for cyber risk detection, remediation and prevention, and speed of innovation, we believe we can continue to grow at scale, generate cash, and invest in key initiatives that will further extend the gap between Qualys and the competition. With that, I will turn the call over to Juning to discuss in more detail our second quarter results and outlook for the third quarter and full year 2022.