Company: QLYS
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001107843-25-000031
Chunk: 199

Company: QUALYS, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 199
---
 expenses, immediate expensing of certain capital expenditures, and other changes to the United States taxation of profits derived from foreign operations. As the legislation was signed into law after the close of the Company's second quarter, the impacts are not included in the Company's operating results for the six months ended June 30, 2025. The Company continues to evaluate the impact of OBBBA, but currently does not expect it to have a material impact on its estimated annual effective rate in 2025.

NOTE 11.                            Segment and Geographic Area Information

Under ASC 280 Segment Reporting, operating segments are defined as components of an entity about which separate financial information is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. The Company operates in one operating segment and has only one reportable segment. The Company’s chief operating decision maker is the Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States.The key measure of segment profit or loss that the CODM uses to allocate resources and in assessing performance is the Company’s consolidated net income, as reported on the Condensed Consolidated Statements of Operations. The CODM uses net income to monitor actual results against budgeted and prior period operating results for the purpose of evaluating operational efficiency, and to evaluate income generated from the assets in making strategic decisions on organizational resource allocation, as well as to benchmark segment performance against industry competitors. 

24

The CODM manages the business using consolidated expense information. The following table sets forth the Company's reported segment revenue, segment profit or loss, and significant segment expenses:Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024(in thousands)Revenues$164,062 $148,708 $323,961 $294,513 Less: Significant segment expensesCost of revenues (exclusive of stock-based compensation and amortization of intangible assets)26,258 23,803 52,454 48,234 Research and development (exclusive of stock-based compensation and amortization of intangible assets)25,286 21,934 49,336 44,136 Sales and marketing (exclusive of stock-based compensation)32,727 28,514 62,187 54,183 General and administrative (exclusive of stock-based compensation)9,699 8,532