QUALYS, INC.QLYS

QUALYS, INC. Segments Disclosure

10-KFiled Feb 20, 20262 min read
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 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.
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:
Year Ended December 31,
202520242023
(in thousands)
Revenues
$669,125 $607,571 $554,458 
Less: Significant segment expenses
Cost of revenues (exclusive of stock-based compensation and amortization of intangible assets)
103,682 100,516 97,198 
Research and development (exclusive of stock-based compensation and amortization of intangible assets)
97,223 90,598 89,281 
Sales and marketing (exclusive of stock-based compensation)129,698 113,613 99,457 
General and administrative (exclusive of stock-based compensation)37,047 35,612 33,287 
Add: Other segment items (1)(375)(3,158)(1,323)
Less: Stock-based compensation76,966 77,133 69,079 
Less: Amortization of intangible assets2,557 2,903 3,087 
Add: Interest income25,251 25,784 16,905 
Less: Income tax provision48,508 36,142 27,056 
Consolidated net income$198,320 $173,680 $151,595 
(1)Other segment items included in segment net income includes interest expense, realized and unrealized gain/loss on foreign exchange transactions, and unrealized loss on non-marketable securities.

Revenue by geographic area, based on the customer's billing address, is as follows:
Year Ended December 31,
202520242023
(in thousands)
United States$377,470 $354,584 $332,315 
Foreign291,655 252,987 222,143 
Total revenues$669,125 $607,571 $554,458 
The measure of segment assets is reported on the balance sheet as total consolidated assets. Long-lived assets, which consist of Property and equipment, net and Operating leases - right of use asset, by geographic area, are as follows:
December 31,
20252024
(in thousands)
United States$50,183 $47,916 
India16,937 21,076 
Rest of world2,047 2,325 
Total long-lived assets$69,167 $71,317 

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 22, 2022
2020Feb 22, 2021
2019Feb 21, 2020
2018Feb 27, 2019
2017Feb 23, 2018
2016Feb 24, 2017
2015Feb 26, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesCommitmentsNew StandardsPay vs Performance