Company: QLYS
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001107843-25-000038
Chunk: 205

Company: QUALYS, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 205
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 Customers

The Company records deferred revenue when cash payments are received or due in advance of its performance obligations offset by revenue recognized in the period. Revenues of $76.1 million and $66.8 million were recognized during the three months ended September 30, 2025 and 2024, respectively, and $330.2 million and $296.5 million were recognized during the nine months ended September 30, 2025 and 2024, respectively, which amounts were included in the deferred revenue balances of $395.7 million and $364.9 million as of December 31, 2024 and 2023, respectively. 

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The Company's payment terms vary by the type and location of its customers. The term between invoicing and when payment is due is not significant. In certain circumstances, based on the credit quality of the customer, the Company requires payment before the products or services are delivered to the customer.The following table sets forth the expected revenue from all remaining performance obligations as of September 30, 2025:(in thousands)2025 (remaining three months)$76,587 2026221,464 2027112,372 202822,730 20293,349 2030 and thereafter1,448 Total$437,950 Revenues allocated to remaining performance obligations represents the transaction price of noncancelable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals. The Company applied the short-term contract exemption to exclude the remaining performance obligations that are part of a contract that has an original expected duration of one year or less.From time to time, the Company enters into contracts with customers that extend beyond one year, with certain of its customers electing to pay for more than one year of services upon contract execution. The Company concluded that these contracts did not contain a financing component.Revenues by sales channel are as follows:Three Months EndedNine Months EndedSeptember 30,September 30,2025202420252024(in thousands)(in thousands)Direct$85,722 $81,636 $251,304 $242,065 Partner84,160 72,231 242,539 206,315 Total$169,882 $153,867 $493,843 $448,380 The Company utilizes partners to enable and accelerate the adoption of its cloud platform by increasing its