Qualys, Inc.

Good day and thank you for standing by. Welcome to QALY's fourth quarter 2023 investor call. At this time all participants are in a 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 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 1 again. 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, Investor Relations. Please go ahead.

Thanks, Gigi. Good afternoon and welcome to Qualys' fourth quarter 2023 earnings call. Joining me today to discuss our results are Sumit Thakkar, our President and CEO, and Jumi Kim, our CFO. Before we get started, I'd like to remind you that our remarks today will include forward-looking statements that generally relate to future events or our future financial or operating performance. Actual results may differ materially from these statements, and factors that could cause results to differ materially are set forth in today's press release and are filing with the SEC, including our latest Form 10-K and 10-Q. 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. A reconciliation of GAAP and non-GAAP measures is included in today's press release. And as a reminder, the press release prepared remarks and investor presentation are available on the investor relations section of our website. So with that, I'd like to turn the call over to Sumed.

Thank you, Blair, and welcome everyone to our fourth quarter earnings call. 2023 was a strong year for Qualys in terms of product innovation as we expanded our platform capabilities, strategic relevance in the industry, and market opportunity. We introduced software composition analysis in on-prem and cloud environments to identify open source software across the production environment of virtual images for our customers. We advanced our custom assessment and remediation capabilities into our agent-based VMDR and policy compliance solutions and launched a groundbreaking first-party software risk management solution. We deployed GovCloud, a FedRAMP high-impact level ready vulnerability and patch management cloud platform that meets President Biden's executive orders and NIST compliance. We harnessed technology from our acquisition of BlueHexagon and extended our cloud-scale deep learning AI to discover and identify relationships and patterns within our own highly integrated data lake that are invisible and undetectable in traditional signature-based solutions. We unified cloud workload protection, cloud security posture management, cloud detection and response, infrastructure as code, and container security, and brought an organically integrated agent and agentless cloud-native application protection platform, CNAP, to the market. And at QSC in November, we announced our enterprise tourist platform with which we now are embarking on the most innovative advancements to the platform in Qualys' history. A comprehensive enterprise-wide initiative aimed at holistically measuring, communicating, and eliminating cyber risk. The role of CISOs and security leaders is increasingly shifting away from just buying and deploying point security solutions towards being able to measure and articulate the amount of risk being posed to their business. C-level executives and boards are increasingly looking to monitor cyber risk and the risk reduction ROI from the cybersecurity spend. The Qualys Enterprise Tourist Platform is focused on helping security leaders measure, communicate, and eliminate cyber risk and become a partner in de-risking their business. The Qualys platform aggregates and orchestrates data from around 25 threat intelligence feeds, as well as third-party risk signals from non-Qualys products. to provide organizations with comprehensive AI-powered insights that translate risk signals into measurable scores and provide optimized remediation actions based on business impact. This single source of truth within a unified workflow and powerfully integrated dashboard empowers customers to effectively measure and communicate risk, secure cyber spend, add value, prioritize, and eradicate threats across on-prem cloud and multi-cloud environments and sets a new gold standard in the industry for risk management solutions. Continuing the space of disruptive innovation on the platform, we're also extending our remediation capabilities to include AI-powered patch management and several other mitigation solutions, including virtual patching, configuration updates, and compensating controls guided by the TrueRisk quantification technology. This new combination of capabilities, which we call TrueRisk Eliminate, uniquely softens organizational boundaries and enables security teams to apply flexible, automated, and intelligent risk-based response solutions to address cyber risks based on their organization's own unique operational characteristics, remediation timelines, and business objectives. Early customer feedback is quite encouraging and with over 54 million patches deployed on Qualys agents in just the last 12 months alone, we believe this new approach to eliminating cyber risk will not only help our customers transform their security operations, but further magnify our competitive differentiation in the market.