Company: QLYS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001107843-25-000017
Chunk: 85

Company: QUALYS, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part II, Item 1A
Chunk 85
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ity regarding security breaches and incidents generally and the level of perceived threats to IT security;

•the announcement or adoption of new regulations and policy mandates or changes to existing regulations and policy mandates;

•the amount and timing of operating costs and capital expenditures related to the operations and expansion of our business;

•pace and cost of hiring employees;

•expenses associated with our existing and new products and services;

•the timing of sales commissions relative to the recognition of revenues;

•insolvency or credit difficulties confronting our customers, affecting their ability to purchase or pay for our solutions;

•our ability to integrate any products or services that we have acquired or may acquire in the future into our product suite or migrate existing customers of any companies that we have acquired or may acquire in the future to our products and services;

•future accounting pronouncements or changes in our accounting policies;

•our effective tax rate, changes in tax rules, tax effects of infrequent or unusual transactions, and tax audit settlements;

•the amount and timing of income tax that we recognize resulting from stock-based compensation;

•the timing of expenses related to the development or acquisition of technologies, services or businesses; and

•potential goodwill and intangible asset impairment charges associated with acquired businesses.

Further, the interpretation and application of international laws and regulations in many cases is uncertain, and our legal and regulatory obligations in foreign jurisdictions are subject to frequent and unexpected changes, including the potential for various regulatory or other governmental bodies to enact new or additional laws or regulations or to issue rulings that invalidate prior laws or regulations.

Each factor above or discussed elsewhere in this Quarterly Report on Form 10-Q or the cumulative effect of some of these factors may result in fluctuations in our operating results. This variability and unpredictability could result in our failure to meet expectations with respect to operating results, or those of securities analysts or investors, for a particular period. In addition, a significant percentage of our operating expenses are fixed in nature and based on forecasted trends in revenues. Accordingly, in the event of shortfalls in revenues, we are generally unable to mitigate the negative impact on margins in the short term by reducing our operating expenses. If we fail to meet or exceed expectations for our operating results for these or any other reasons, the trading price of our common stock could fall and we could face costly lawsuits, including securities class action suits.

If we do not successfully anticipate market needs and opportunities or are unable to enhance our solutions and develop new solutions that meet those needs and opportunities on a timely or cost-effective basis, we may not be able to compete