Company: QLYS
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001107843-25-000031
Chunk: 211

Company: QUALYS, INC.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 211
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Total other income, net increased by $3.1 million for the six months ended June 30, 2025, compared to the same periods in 2024, primarily due to favorable changes in foreign currency of $3.3 million, partially offset by a decrease in interest income of $0.2 million.

Income tax provision

Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change20252024$%20252024$%(in thousands, except percentages)(in thousands, except percentages)Income tax provision$11,523 $10,412 $1,111 11%$22,296 $20,166 $2,130 11%

Income tax provision increased by $1.1 million for the three months ended June 30, 2025 compared to the same period in 2024, primarily due to the tax effect of an increase in pretax income and a decrease in excess tax benefits arising from stock-based compensation.

Income tax provision increased by $2.1 million for the six months ended June 30, 2025 compared to the same period in 2024, primarily due to the tax effect of a decrease in excess tax benefits arising from stock-based compensation compared to the prior year, and from an increase in pretax income. 

Key Operating and Non-GAAP Financial Performance Metrics

In addition to measures of financial performance presented in our condensed 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.

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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 day of the same reporting period in the prior year. This represents recurring payments that we expect to receive in the next 12-month period from the cohort of customers that existed on the last day of the same reporting period in the prior year.

Numerator: We measure the ARR for that same cohort of customers representing all active subscriptions as of the end of the reporting period