Company: QLYS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001107843-25-000009
Chunk: 83

Company: QUALYS, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 83
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Year EndedDecember 31,Change20242023$%(in thousands, except percentages)Total other income, net$22,626 $15,582 $7,044 45 %

Total other income, net increased by $7.0 million in 2024 compared to 2023, primarily due to an increase in interest income of $8.9 million driven by an increase in our average daily cash and investment balance, a non-recurring unrealized loss of $0.5 million on a non-marketable equity security recognized during 2023, partially offset by an increase in foreign currency loss of  $2.4 million.

46

Income tax provision

Year EndedDecember 31,Change20242023$%(in thousands, except percentages)Income tax provision$36,142 $27,056 $9,086 34 %

Income tax provision increased by $9.1 million in 2024 compared to 2023, primarily due to the tax effect of an increase in pretax income, increase in foreign withholding taxes, decrease in excess tax benefit from stock-based compensation compared to prior year, and decrease in other discrete tax adjustments. The increase in tax expense was partially offset by an increase in foreign derived intangible income benefit, an increase in research and development tax credits, and the recognition of an income tax benefit related to uncertain tax positions due to statute lapse.

For the year ended December 31, 2024, our income tax provision included a benefit of $2.5 million related to an increase in foreign derived intangible income benefit and research and development tax credits associated with our U.S. income tax return filed during the year. 

Key Operating and Non-GAAP Financial Performance Metrics

In addition to measures of financial performance presented in our consolidated financial statements, we monitor the key metrics set forth below to help us evaluate growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts and assess operational efficiencies.

Net Dollar Expansion Rate

We evaluate our ability to retain and grow existing customers by assessing our net dollar expansion rate on a last twelve months, or LTM, basis. This metric is used to appropriately manage resources and customer retention and expansion. We calculate the net dollar expansion rate on a foreign exchange neutral basis by dividing a numerator by a denominator, each defined as follows:

Denominator: To calculate our net dollar expansion rate as of the end of a reporting period, we first determine the annual recurring revenue, or ARR, from all active subscriptions as of the last