Company: QLYS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001107843-25-000009
Chunk: 81

Company: QUALYS, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 81
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 to see positive evidence, such as sustained achievement of sufficient profits, to meet a more likely than not stance that the valuation allowance should be reversed. The exact timing and amount of the valuation allowance release is subject to change based on the level of profitability achieved in future periods. Release of the valuation allowance would result in the recognition of deferred tax assets and a corresponding decrease to income tax expense in the period the release is recorded.

Results of Operations

The following table sets forth selected consolidated statements of operations data for each of the periods presented as a percentage of revenues:

Year Ended December 31,20242023Revenues100 %100 %Cost of revenues18 19 Gross profit82 81 Operating expenses:Research and development19 20 Sales and marketing21 20 General and administrative11 12 Total operating expenses51 52 Income from operations31 29 Total other income, net4 3 Income before income taxes35 32 Income tax provision6 5 Net income29 %27 %

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Comparison of Years Ended December 31, 2024 and 2023

Revenues

Year EndedDecember 31,Change20242023$%(in thousands, except percentages)Revenues$607,571 $554,458 $53,113 10 %

Revenues increased by $53.1 million in 2024 compared to 2023, driven by increased demand for our subscription services by our end customers. Of the total increase of $53.1 million in revenues, 69% was from customers existing at or prior to December 31, 2023, and the remaining 31% was from new customers added in 2024. Of the total increase of $53.1 million, 42% was from customers in the United States and the remaining 58% was from customers in foreign countries. In 2024, 54% of total revenues were direct and 46% of total revenues were through partners. Of the total increase of $53.1 million, 20% was direct and the remaining 80% was from partners. 

With our strong market position driving further demand for our solutions, we expect revenue growth from new and existing customers to continue.

Cost of Revenues

Year EndedDecember 31,Change20242023$%(in thousands, except percentages)Cost of revenues$111,482 $107,485 $3,997 4 %

Cost of revenues increased by $4.