Good day, everyone, and welcome to the Qualys Second Quarter 2015 Investor Conference Call. This call is being recorded. At this time, all participants are in a listen only mode. I would now like to turn the call over to Don McAuley, CFO of Qualys. Please go ahead, sir.
Welcome to the Qualys 2nd quarter 20 15 investor conference call. I'm Don McAuley, CFO. I'm here with Philippe Courteau, our Chairman, President and CEO on this call. We would like to remind you that during the call, we expect to make forward looking statements within the meaning of the federal securities laws. Forward looking statements generally relate to future events or our future financial or operating performance.
Forward looking statements in this presentation include, but are not limited to the following list. Statements related to our business and financial performance and expectations for future periods, including the rate of growth of our business trends related to the diversification of our revenue base our ability to sell additional solutions to our customer base and the strength of demand for those solutions our plans regarding the development of our technology and its expected timing our expectations regarding the capabilities of our platform and solutions the anticipated needs of our customers our strategy the scalability of our strategy our ability to execute our strategy and our expectations regarding our market position the expansion of our platform and our delivery of new solutions the expansion of our development operations and support teams in India the expansion of our partnerships and the related benefits of those partnerships our ability to effectively manage our costs our plans to expand our sales force our plans to explore strategic acquisitions and finally, our expectations for the number of weighted average diluted shares outstanding and effective GAAP and non GAAP income tax rates for the Q3 and the full year 2015. Our expectations and beliefs regarding these matters may not materialize and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
These risks include those set forth in the press release that we issued earlier today as well as those more fully described in our filings with the Securities and Exchange Commission, including our quarterly report on Form 10 Q that we filed on May 7, 2015. The forward looking statements We also remind We also remind you that this call will include a discussion of GAAP and non GAAP financial measures. The non GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A discussion of why we present non GAAP financial measures and a reconciliation of the non GAAP financial measures discussed in this call to the most directly comparable GAAP financial measures are included in our earnings press release issued earlier today. Now to begin the discussion, Philippe will provide an overview of the company's performance for the Q2 2015.
Then I will cover our financial results and factors that drove the quarter in more detail as well as our outlook for the Q3 and full year 2015. Then we will open up the call for your questions. With that, I will now turn the call over to Philippe.
Thank you, Don, and welcome to all of you. The Q2 of 2015 was an excellent quarter. It included a number of strategic product releases as well as continued growth and success across all aspects of our business. While Don will cover the financial details of our performance for the quarter, I will share with you why I think these are exciting times for Qualys from growth and strategic perspective. I will start off with an overview of key highlights that are driving the momentum in our business and discuss in more details our new product releases.
As I mentioned on last quarter's call, we launched our Qualys Cloud Agent platform at the RSA Conference in April. This is a disruptive extension of our cloud security compliance platform as it expands our offerings to provide real time, continued security and compliance across all enterprise IT assets ranging from on premise devices and mobile endpoints to elastic cloud environment. In addition, these new technology liberates customers from the many challenges they face with conventional scanning solution such as scan time windows, credential management and batch reporting and allows them to build continuous monitoring programs more effectively. We have seen significant interest from our customers and have an impressive number of trials underway. As a result, we anticipate a more rapid adoption than we have seen in the past for other new offerings.
The product is now shipping for the Windows platform and will be available on Mac and Linux this month. We will be adding additional capabilities in the near future such as file integrity monitoring and indication of compromise detection capabilities. Now we're also making good progress with our new other solutions currently under development including the log management and analytics backend as well the malware detection and prevention both of which we expect to release in beta this year. Now let me give you key highlights on the state of our business. In the Q2, we added a number of important new accounts including Abdi, Advanced Micro Devices, British American Tobacco, the ABS, Juz Airbus, Cybersecurity, Holland America Line, LifePoint Hospitals, the National Football League, NFL, Prudential Financial, REIT Elsevier, Technology Services, Saudi Telecom, Thomas Cook, Tractor Supply and Verifone Systems.
We continue to see approximately 50% growth from our newer services, which include web application scanning, policy compliance, continuous monitoring and web application firewall. We again saw approximately 19% growth from our industry leading vulnerability management solution and this is despite the midwind that we have seen from currency fluctuation during the past 6 months. An indication of our continuing success in diversifying our cloud platform offering is that 60% of our customers have now purchased more than one solution. This is another data point on our land and expand trend line as these metrics if you recall stood at 30% at the end of 2013 and 54% at the end of 2014. It also underscores the success of our cloud platform and its adoption.
We continue to see strong demand for our private cloud platform, which allows customers to use our full suite of security and compliance solutions while keeping all the data on premise. Demand is particularly strong outside the U. S. Due to the data sovereignty requirements from our partners and customers. Now we can deliver the platform in a fully virtualized manner within Elastic Cloud environment.
Notably, during the quarter, we delivered our first deployment on the Amazon EC2 platform for Amazon. We continued expanding our strategic alliance and in Q2, we signed additional strategic partnerships with leading managed service providers including AT and T and Solutionary and NTC Group Security Now for a review of our financial performance and our guidance, I will turn the call over to Don.
Thanks, Philippe. Again, as previously mentioned, our Q2 2015 results were very good. Revenues grew in the second quarter to $39,900,000 which represents 23% growth over the Q2 of 2014. Our current deferred revenue balance is $87,400,000 as of June 30, 2015 which is 22% greater than the balance was 1 year ago. A quick review of some other revenue metrics.
For the Q2, the U. S. Represented 70 0.5% of revenues compared to 70.0 percent a year ago. Also, we derived 79% of 2nd quarter revenues from subscriptions to our vulnerability management solution and that compares to 82% in the Q2 of last year. GAAP gross profit increased by 26 percent to $31,700,000 in the Q2 of 2015 compared to 25 $100,000 in the prior year.
GAAP gross margin was 79% for the Q2 of 2015 compared to 78% a year earlier. Non GAAP gross margin was 80% for the Q2 of 2015 compared to 78% in the Q2 of last year. Adjusted EBITDA for the Q2 of 2015 increased by 81% to $13,100,000 compared to $7,200,000 a year earlier. Adjusted EBITDA as a percentage of revenues increased to 33% in the Q2 of 20 15 compared with 22% in the same quarter of 2014. Net cash from operations in the 1st 6 months of 2015 increased by 68 percent to $25,600,000 compared to $15,200,000 in the 1st 6 months of 2014.
Free cash flow this year increased by 74 percent to $15,000,000 compared to $8,700,000 in the 1st 6 months of last year. In the Q2 of 2015, capital expenditures were $4,300,000 compared to $2,700,000 in the Q2 last year. In the Q3, we expect capital expenditures to be in the range of $4,500,000 to $5,500,000 as we expand our cloud infrastructure to support more customers and add more solutions and functionality to our platforms. Moving on to earnings per share. For the Q2 of 2015, GAAP EPS was 0 point $9 per diluted share versus 0 point 14.
Now turning to our guidance, starting with revenues. For the 3rd quarter, we expect revenues to be in the range of $42,000,000 to $42,500,000 At the midpoint, this represents 23% growth over Q3 2014 revenues. For the full year 2015, our revenue guidance is unchanged as we expect revenues to be in range of $165,000,000 to $166,500,000 At the midpoint, this represents 24% growth over 2014 revenues. Now on to earnings per share. We expect GAAP EPS for the Q3 of 2015 to be in the range of 0 point $4 to $0.06 and non GAAP EPS is expected to be in the range of 0 point on dollars Our full year EPS estimates are based on approximately 38,600,000 weighted average diluted shares outstanding.
In summary, we remain very excited about the future of Qualys. We continue to work to drive growth within our current solutions and are seeing significant traction and interest with our new offerings such as our Cloud Agent platform. Over time, we expect to continue to leverage the power of the cloud platform to further drive shareholder value. Before we open up the call for Q and A, I'd just like to note for everyone that we will be holding our 2nd Qualys Investor Day meeting on October 7th. It will be held in Las Vegas on the afternoon before the Qualys Security Conference, which is our annual user conference.
That conference is being held on October 8 9. The investor meeting will include presentations from management focusing on our current platform and products as well as our exciting product pipeline for 2016 and beyond. Investors are also invited to attend our user conference, which is a unique opportunity to connect with current and prospective customers and partners along with our engineers as well as industry experts. With that, Philippe and I would be happy to answer any of your questions. Operator?
And our first question comes from the line of Sterling Auty with JPMorgan. Your line is open. Please go ahead.
Hi. This is actually Ken Talanian on for Sterling. Thank you for taking my question. I was wondering, is the rollout of the continuous monitoring product causing any pause in vulnerability management as customers decide which product to go with?
Not at all. This is Filippo speaking. Not at all. In fact the continuous monitoring is a natural extension of our vulnerability management solution. What it does is that it allows now to have alerts instead of just reports when you turn on the continuous security module which is an add on then what it does is that it allows you to essentially have alerts that you can directly integrate or send to your incident response system.
So they're totally complementary.
Okay. And just another one. I was wondering looking at the 3Q guidance, the growth looks
a little
bit shy of where the street was. And I was wondering if there's any FX in that estimate?
Yes. Well, we've like every software company, we've had kind of FX headwinds this year. And Q3 is will be another quarter with the there's such a large difference between the rate of the euro a year ago and today that yes, there is there are some headwinds in Q3.
Okay, great. Thanks guys.
Thank you. And the next question comes from the line of Philip Winslow with Credit Suisse. Your line is open.
Hi, guys. Thanks guys for taking my question. I wonder if you could just give some color on what you're seeing in the VM market. Obviously, on the last call, this is a big point of discussion sort of any thing that you point out this quarter versus where your head was 90 days ago? And then and also as you look at some of the newer products maybe just give us more color there as well sort of now that we're halfway through the year just the trends that you're seeing versus the beginning of the year?
Thanks.
So on the VIM side, I mean, we see still the same. Qualys, we continue essentially expanding our market penetration on the VM space. And what we see is the fact that companies now are realizing more than ever that you have to really know the assets that you have that you need to understand who owns them and as well as of course looking at their vulnerabilities. So today I think this is a cornerstone of security and I think companies are understanding that very well. So what we see is that with our cloud agents, we see in fact further expansion of both our vulnerability vulnerability management and as well as our policy compliance because now we can go to the endpoint.
One of the limitation of Qualys in the past was that we could not effectively address the security and compliance posture of the endpoint. Now with these agents, we can do that very effectively and this is essentially a continuation of the Verint Management application.
Got it. Thanks guys.
Thank you. The next question comes from the line of Steve Ashley with Robert W. Baird. Your line is open. Please go ahead.
Thank you very much. I remember and I understand that you focus on trailing 12 month current billings. But if you were to look at the way that a lot of us folk out here look at quarterly billings, last quarter that number was up 29%. And I remember Don you saying really didn't think that was representative of the trends in your business that 29%. The comparable number this quarter is up like 19% or 20 percent.
And I was just wondering if you had any comment on whether you thought that was representative of the growth rate of your business?
Yes. Well, just to thanks Steve. Remind everyone the point we were talking about here is that we felt that the deferred revenue opening deferred revenue balance at December 31 was on the light side because we saw a lot of Q4 short period upsells from our customers, which we kind of characterize as budget flush. And so that apparent 1 quarter bookings metric that you all calculate came out my point was that it was overstated the kind of quarter that we had. I think sometimes it understates a little bit too.
It's more in the ballpark this time, Steve.
Okay. And then I was just wondering, in terms of sales reps and hiring in general, if you could just update us on maybe headcount and how the hiring process went in the period?
So in terms of hiring, so we have done a few things. One is as you recall, we have a very highly leveraged model with a very strong partnership that we have. We added as I mentioned earlier AT and T and Solutionary that we continue expanding our partnerships extremely well. In fact, we have beefed up our strategical aligns team. In terms of our direct sales force, we are expanding our account.
It's we have just essentially by the way hired VP and General Manager for Europe. So we're adding middle management as well as the EVPs for worldwide sales. And we're absolutely actively recruiting and hiring. We have in fact quite a few offers which we have extended. And typically as you can see in the pattern of Qualys, we do most of our hiring in the second half of the year.
And so we anticipate to maintain the 20% to 25% additional headcount that we mentioned I think in the last earnings call that we're planning for the year. So we're continuing expanding. And with all the new services that we have, I mean, this is really the time for us to expand our sales force. We always have been careful of not expanding the sales force too early, because at the end of the day you end up with people which you pay a lot of money and they don't necessarily deliver. And so we have always had a balanced approach between the channels, between the direct sales force.
And you see that in the high really highly scalable model that we have built.
Great. Thank you.
Our next question comes from the line of Rob Owens with Pacific Crest. Your line is open. Please go ahead.
Great. And thanks for taking my question. Don, I think you may have partially answered this, but in and around the deferred revenue being down sequentially, I guess, given the new products that you have, given how security spending appears to be picking up as we look at other companies results. Can you speak to that? Is Q2 just I know seasonally this has always been kind of a one off quarter where sometimes it's flat from deferred revenue, sometimes it's up a little bit.
But what are the trends you're seeing there? And is this the aberration that you saw Q4 to Q1 kind of playing out in Q2? Maybe help us understand that a little bit.
Yes. So Q2 was a pretty normal quarter Rob in terms of the pace of the quarter and the composition of it. Last year deferred revenues were up just slightly. I think the year before they were down just slightly in Q2. So Q2 is usually about a flat quarter on deferred revenues, just the way it works out.
So nothing unusual. I think we're kind of seeing normal patterns in the business.
And then I think you answered Steve's kind of 20%. This is more the normalized growth rate if you will. So does that mean once we get beyond expectations for this year, we should see some slowing? Realizing you're not guiding to 16% at this point, but it does take a while for that to transition out in the model. So if 29% was a little too hot and 20% is more like it, do we see things come down from the 23%, 24% -ish that you're looking for this year?
Well, we don't want to get ahead of ourselves guiding beyond this year, Rob. But our pipelines are strong. Philippe was talking about the number of new products that are hitting this year. So we're optimistic about the business, but we're not getting ahead of ourselves guiding for next year yet.
Yes. And the other thing that I would add to what Doug said here is that today we're doing very big of sales. We thought we have multimillion dollar account. So of course timing is becoming we're not anymore kind of a business where the orders were coming $50,000 $100,000 We really do very significant upsells and all that as a timing effect if you So that's the nature of our business. But what I can say is that we have absolutely significant new businesses coming our way as well as very big upset from our customer base.
As you can see our platform is already today playing. So we are in fact not anymore that one, if you prefer, product company. We consolidate many applications. We should look at the end quality compliance, web application scanning, web application firewall. We are going to introduce file integrity monitoring, indication of compromise.
That's 6 vendors essentially that Qualys can consolidate which of course creates significant value for our customers. Because as you know one of the challenge of security is that there is far too many vendors and companies would really would prefer have less vendors. And the fact that we have that cloud platform where everything is not really managed and starts updating is a significant advantage.
Great. And then last one if I may. Did you give a customer count?
Are you willing to give a
customer count to close quarter?
Yes. We update that once a year, Rob, since it's not directly comparable for revenues. But I'll tell you, we're on the same kind of pace we were last year.
All right. Thanks guys.
Our next question comes from the line of Matt Hedberg with RBC Capital Markets. Your line is now open.
Yes. It's Dan Berg for Mac, Matt Hedberg. Following up on Phil's question, just curious how pricing is holding up in the core VM and then emerging products?
So pricing is holding very well. In fact, we have of course a long standing relationship with all of our customers and we're winning a lot of deals. So I think there is our competition in fact today tried essentially to compete with us against on price and we're holding extremely well.
Thanks. And then any changes in upsell trends this quarter? I know they're trending higher.
Same, same. I mean we're doing our business is not anymore as uniform as it used to be as I mentioned earlier. So we do sometimes very, very big upsells. So and I speak about $500,000 to $1,000,000 upsells. So of course it changes.
But upsells are generally speaking extremely strong. We see an adoption of these are if I look at the number of trial accounts that we have on our policy compliance application for example that has really picked up.
And then Don any large deals that came into the quarter much earlier or later than expected?
No. We saw normal patterns this quarter.
Thank you.
Thank you. Our next question comes from the line of Michael Kim with Imperial Capital. Your line is open. Please go ahead.
Hi, good afternoon guys. Can you talk a little about the MSP channel? Are you starting to see some acceleration contribution from some of these partnerships and a little greater sales leverage? And do you see this going forward as an area that where you anticipate expanding your focus?
Yes. This has been a continuous trend. I mean we have today quite a few MSSP partners. Today we can see now starting the Indian outsources, the HCL Tata Wipro etcetera are starting to bring business to us. So that the trend continues.
And again, we're adding a few more partners. Some are global, some are more local. So I think that the partnerships works very well, because what we provide to our partners is the ability to essentially be in business without having any expenses really. They can immediately be capable of delivering regulatory management services, policy compliance services, web application security services. And that's a very unique advantage that we have against the traditional enterprise software solutions where people have to install.
They are not multi tenant. So we still have a huge advantage here and are very natural fit for all these managed security service providers.
Great. And then just on private cloud platform, is this a deployment model that
you're seeing preferred by the majority
of the non U. S. Customers at this point? And are you seeing more demand in the U.
S. For private cloud?
So we're seeing more demand for the U. S. In private cloud with a very large organization with the banks as we are now starting to do more with them. We're also at the same time further virtualizing. I mentioned that we have been capable of totally virtualizing our platform.
Digital platform for Amazon themselves. So now we are essentially putting more efforts. So we could essentially distribute that cloud platform that private cloud platform very easily. The federal government is the natural customers for that in the U. S.
And large very large companies. We also have now our fully disconnected private cloud, which we mentioned last quarter is now delivered accepted by Siemens. It's operational. And we are now focusing essentially now with the federal government where we are anticipating to be FedRAMP compliant this month and as well as now having that disconnected private cloud that happens to the OOD Marketplace. So we're now gearing.
In fact, we're actively looking for a VP of Federal Operations, which report to our newly hired EVP of Global States Operation. And so we are in fact counting on that private cloud as a beachhead in federal and in large organizations. Outside of the U. S, what it does is that it really eliminates all the issues about the sovereignty of the data. And that's again combined with the fact that we can enable like we did Orange cybersecurity, Airbus, Cyber Defense, Southeast Telecom, etcetera, many companies where Telstra is in Australia, they can absolutely provide sovereign cloud services to the marketplace.
So in that sense, we are in a very unique position.
Great. Thank you very much.
Our next question comes from the line of Rob Reza with Wunderlich Securities. Your line is open. Please go ahead.
Hi. Thanks for taking my questions.
Just quickly, as you think about sales force and the capacity here and moving further out with the new additional products,
do you
feel like you're on pace with the added capacity given the dilution that comes from new products as the existing sales force has to learn those products? How do you kind of balance that relative to your growth projection? Thanks.
Could you repeat the question? I'm not so sure about the I'm not so sure that I understood the question.
The question is given the new product growth and how do you judge the capacity within the sales force to absorb the existing new products, maintain their focus on core VM and then yet drive 20% plus type growth for the industry?
Okay. Okay. Very good question, Pat. So what we're doing is like, first of all, what you have to understand is that what is again very unique with our model is that everything is centrally managed. Everything is self updating.
So you have all these different solutions out of the same platform. This is what MacAfee tries to do with EPOs that natural council where everything comes at your fingertips. So that's what we have and our model allows us to do that extremely well. So that's for the platform itself. Then of course we have different modalities which are a to approach that 2 ways.
We have what we call sufficient architects. In fact, we have hired quite a few of them recently, which are the experts on our modalities and are helping our sales force to essentially learn, present these various modalities as we increase. So we have that kind of initiatives if you prefer HR supporting the sales force in that effort as well as the partners. And then in terms of the sales force, we have divided our sales force into groups. So we have the group which is the new business and we have in fact been increasing our sales force season here in the U.
S. And then we have of course the farmers. Now it's much easier for the farmers to essentially present the new services to our customers already in this instance. We also start with the same platform and the customer can try. So already everything is enabled in our back end.
And this is what give us at the end of the day the leverage that you see in our financial numbers. We eliminate a lot of costs not only for ourselves, but also for our customers and partners. So we have that high leverage model. And all of these applications that we introduced are already enabled in the platform and it's very easy for our customers either prospective customers or
the Thank you.
Our next question comes from the line of Srini Nandari with Summit Research Partners. Your line is open. Please go ahead.
Thank you, Don and Philippe for taking my call. I appreciate this. I have a couple of questions on the guidance. First and foremost, on the FX headwind, seems to be pretty pronounced this quarter. Can you give us some color how much of a constant currency growth is for the next quarter?
Well, the kind of headwinds we saw this in the last quarter was about just about 1.7% on revenues and about 2.8% on deferred revenues. And in Q3, I think we expect a similar effect in Q3 and then it should start to dissipate after that.
Okay. On the I'm just trying to understand your modeling for modeling purposes on the AWS. You're assuming pretty much no revenue this year. Is that fair? Or is that it looks like it's a little bit conservative?
What do you mean on the AWS?
You guys are assuming no revenues from the AWS platform this year? Is that what it is?
No. We are no, no. No. We are with AWS, we have Amazon is a Qualys customer. So this is of course where it is a big Qualys customer for their own need.
And then on the AWS platform, we have in fact our virtual images that also provide the scanning and the web the vulnerability management and the web application scanning. So we don't today differentiate these revenues. They are essentially another if you prefer kind of appliances that our customers uses. It happens that they're virtualized it happens that they are certified to run AWS. But we are just using AWS as a platform for our
for taking my call.
Thank you. The next question comes from the line of Mike Sicos with Macquarie. Your line is open. Please go ahead.
Hi, guys. I don't know if I missed it in your earlier comments regarding the sales reps. Typically, we get a number regarding how many new hires there have been or what's the total capacity at this point. Did you guys give us an update regarding the number of sales reps you finished the quarter with?
No, didn't give an update. So we finished the quarter I think at 139 people today for Volley.
Okay. And with the new sales reps that you are hiring or has anything changed with the process, just regarding selling back into the existing customer base? Or where are the new hires going? Are they out hunting new customers? Or going back to the existing base and trying to upsell them with new solutions at this point?
It's combination of both. I mean, we're expanding both our new business teams as well as our existing customer team because of course we're getting more and more customers and you need to service them. And but as I'm sure you realize serving a customer which is doing $1,000,000 a year or $2,000,000 a year you don't need 2 people. So we have a significant leverage there with our renewal as we call them our renewal teams.
Okay. And just one more question if I could. Regarding the call it $0.05 of upside delivered in the Q2. I was just interested in the EPS guidance that you guys maintained for full year. Just wondering where the incremental expenses
the we are essentially going to be much more active in terms with the new services advertising them and doing some reach out campaigns. So that's where the additional expenses are coming from.
Okay. Thank you.
Thank you. Our next question comes from the line of John Lucia with JMP Securities. Your line is open. Please go ahead.
Hey, guys. Thanks for taking my questions. First question, you noted 60% of new customers had purchased more than one solution by the end of Q2. That's good when you compare it to the end of 2013, but that's only a 2% increase from 58% in Q1. A year ago, I think the increases were more like 6% to 7 percent each quarter.
So if you look at these metrics, it seems like cross selling has slowed to a degree over the last 6 to 9 months. And my question is, has the low hanging fruit been picked at this point and now cross selling has become a little more difficult? Or are you just going deeper in with those existing customers? I'd just like to get a more flavor on your expectations for cross selling going forward.
No. I don't think this is we see cross selling still very strong. And in fact with all the new services that we're coming with that will continue to increase. What is happening here I believe and that's something we may want to look into in more detail is because we have 3 businesses in Qualys. We have essentially the enterprise business.
We have the mid market business with Express as we call it. So we have Qualys Enterprise, Qualys Express and then we have Qualys SMB, which is companies very small companies. So there's much less upsell if you prefer in the SMT type of market that there is of course in the large enterprise. So you have also that phenomena here of the mix of customers. And of course the larger customer base is more on the SMB side than it is on the enterprise.
But on the enterprise side we have still very strong demand for more services.
Okay. And then I have one follow-up. Last quarter you guys talked about the VM business slowing to 19% and it sounds like the growth remained at that level in Q2. Can we think of 19% as the new normal? Or would you expect the growth to decline or increase from these levels?
No. I personally believe that the RVM business is going to continue growing more. And this is because again as I mentioned earlier with our cloud agents, with our agents, with our cloud agents, we can now go to the endpoint. And the endpoint is really where you have the volumes. So this is where you have significantly more endpoints that you have servers.
And so we see today both for the VM and for the policy compliance we see the potential big lift from these cloud agents. And again they've been very well accepted by our customers and we see that these new services ramping up faster than we have ever seen any new products.
Okay. Thank you.
Thank you. I am showing no further questions at this time. I would like to turn the call back to Philippe Courto for any further remarks.
Also thank you, operator. So let me share with you another key milestone for Qualys as I'm in fact speaking with you today from Black Hat from the Black Hat Conference in Las Vegas where we are launching and showcasing a revolutionary new service that we call AssetView that gives IT and security teams real time visibility and actionable data across millions of IT assets in seconds. AssetView is based on our cloud agent platform we just discussed and we're providing it as a free service. So with AssetView, IT and security teams can deploy our cloud agent at no cost for doing asset inventory and to get a complete picture of their global IT assets and query them in real time. In summary, with the launch of AssetView, IT and security teams can now answer the following questions and on a global scale such as how many assets do we have?
What are the attributes? Who uses them? Who manages them? Where are they located? And of course with our emergency management, policy compliance etcetera and how secure are they or are they being already compromised.
And this is all delivered from the single solution where everything is centrally managed and self updating our cloud platform and now customers can also integrate the data from these new services with their configuration management, database tools, CMDBs and asset management solutions. So as you can see with the expansion of our platform and the well received new services, we continue to invest and expand our sales and marketing efforts, broaden our partnerships globally, accelerate the business of our development operations and support teams in India, where we are today more than 100 people. I think we're now close to 120 people and are actively looking for strategic acquisition to further accelerate the enhancement of existing services and the development of new services as well as to enter new adjacent markets. So thank you for attending our earnings call today. Should you have any follow-up questions, Dan and I are available to you and we are looking forward to speaking with you over the next quarter and hope we can make it to our user conference in that regard in October.
Thank you very much.
Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program and you may all disconnect. Everyone have a great day.