as of december 31 , 2014 , we had over 7,700 customers in more than 100 countries , including a majority of each of the forbes global 100 and fortune 100. in 2014 , 2013 and 2012 , approximately 70 % , 70 % and 68 % , respectively , of our revenues were derived from customers in the united states . we sell our solutions to enterprises and government entities primarily through our field sales force and to small and medium-sized businesses through our inside sales force . we generate a significant portion of sales through our channel partners , including managed service providers , value-added resellers and consulting firms in the united states and internationally . 39 we have had continued revenue growth over the past three years . our revenues increased from $ 91.4 million in 2012 to $ 108.0 million in 2013 , and reached $ 133.6 million in 2014 , representing period-over-period increases of $ 16.5 million , and $ 25.6 million , or 18 % and 24 % , respectively . we generated net income of $ 2.2 million in 2012 , $ 1.5 million in 2013 , and $ 30.2 million in 2014 . net income in 2014 includes a tax benefit of $ 23.7 million for recognition of our u.s. federal and certain state deferred tax assets . on september 28 , 2012 , our common stock commenced trading on the nasdaq stock market under the trading symbol “ qlys , ” and on october 3 , 2012 we closed our initial public offering . in our initial public offering , we sold and issued 7,836,250 shares and certain selling stockholders sold an additional 875,000 shares . the net proceeds to us from the offering were approximately $ 87.5 million , after deducting underwriting discounts and commissions , and before deducting total expenses in connection with this offering of $ 2.9 million . key 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 . replace_table_token_5_th adjusted ebitda we monitor adjusted ebitda , a non-gaap financial measure , to analyze our financial results and believe that it is useful to investors , as a supplement to u.s. gaap measures , in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance . we believe that adjusted ebitda helps illustrate underlying trends in our business that could otherwise be masked by the effect of the income or expenses that we exclude in adjusted ebitda . furthermore , we use this measure to establish budgets and operational goals for managing our business and evaluating our performance . we also believe that adjusted ebitda provides an additional tool for investors to use in comparing our recurring core business operating results over multiple periods with other companies in our industry . adjusted ebitda should not be considered in isolation from , or as a substitute for , financial information prepared in accordance with u.s. gaap . we calculate adjusted ebitda as net income before ( 1 ) other ( income ) expense , net , which includes interest income , interest expense and other income and expense , ( 2 ) provision for ( benefit from ) income taxes , ( 3 ) depreciation and amortization of property and equipment , ( 4 ) amortization of intangible assets and ( 5 ) stock-based compensation . 40 the following unaudited table presents the reconciliation of net income to adjusted ebitda for each of the periods presented . replace_table_token_6_th ( 1 ) net income and other ( income ) expense for fiscal years 2013 and prior have been adjusted for an immaterial error as further described in note 1 to our consolidated financial statements included elsewhere in this annual report on form 10-k. free cash flow we define free cash flow , a non-gaap measure , as net cash provided by operating activities less purchases of property and equipment and capitalization of software development costs . we monitor free cash flow as a liquidity measure because we believe it provides useful information to management and investors about the amount of cash we generated , that , after the acquisition of property and equipment and capitalized software development costs , can be used for strategic opportunities , including investing in our business , making strategic acquisitions and strengthening the balance sheet . we also believe free cash flow provides an additional tool for investors to use in comparing our recurring core business operating results over multiple periods . a limitation of using free cash flow as a means for evaluating liquidity is that free cash flow does not represent the total increase or decrease in cash and cash equivalents for the period because it excludes cash provided by or used in other investing and financing activities . in addition , it is important to note that other companies , including companies in our industry , may not use free cash flow , may calculate free cash flow in a different manner than we do , or may use other financial measures to evaluate their performance , all of which could reduce the usefulness of free cash flow as a comparative measure . a reconciliation of free cash flow to net cash provided by operating activities , the most directly comparable financial measure calculated and presented in accordance with gaap , is provided below : replace_table_token_7_th 41 limitations of adjusted ebitda and free cash flow adjusted ebitda and free cash flow , non-gaap financial measures , have limitations as analytical tools , and should not be considered in isolation from or as a substitute for the measures presented in accordance with u.s. gaap . story_separator_special_tag provision for income taxes replace_table_token_22_th provision for income taxes increased $ 0.1 million in 2013 compared to 2012 , primarily due to increases in foreign and state taxes and also due to a reduction of the liability for uncertain tax positions for closure of tax years in foreign jurisdictions on 2012. story_separator_special_tag style= `` font-family : arial ; font-size:10pt ; `` > was primarily attributable to proceeds of $ 84.5 million from our initial public offering , net of offering costs , and $ 2.1 million of proceeds from the exercise of stock options . these cash inflows were partially offset by prepayments on our capital lease obligations of $ 2.4 million and payment of non-contingent consideration related to our nemean acquisition of $ 1.0 million . contractual obligations our principal commitments consist of obligations under our outstanding leases for office space , third-party data centers and office equipment . the following table summarizes our contractual cash obligation at december 31 , 2014 and the effect such obligations are expected to have on our liquidity and cash flows in future periods : replace_table_token_24_th off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities . recent accounting pronouncements see note 1 to the consolidated financial statements in part ii , item 8 of this annual report on form10-k for a discussion of recent accounting pronouncements . critical accounting policies and estimates our consolidated financial statements are prepared in accordance with u.s. gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . on an ongoing basis , we evaluate our estimates and assumptions . our actual results may differ from these estimates under different assumptions or conditions . we believe that of our significant accounting policies , which are described in the notes to our consolidated financial statements , the following accounting policies involve the greatest degree of judgment and complexity and have the greatest potential impact on our consolidated financial statements . a critical accounting policy is one that is material to the presentation of our consolidated financial statements and requires us to make difficult , subjective or complex judgments for uncertain matters that could have a material effect on our financial condition and results of operations . accordingly , these are the policies we believe are the most critical to aid in fully understanding and evaluating our financial condition and results of operations . 51 revenue recognition we derive revenues from subscriptions that require customers to pay a fee in order to access our cloud solutions . customers generally enter into one year renewable annual subscriptions . the subscription fee entitles the customer to an unlimited number of scans for a specified number of networked devices or web applications and , if requested by a customer as part of their subscription , a specified number of physical or virtual scanner appliances . our physical and virtual scanner appliances are requested by certain customers as part of their subscriptions in order to scan it infrastructures within their firewalls and do not function without , and are not sold separately from , subscriptions for our solutions . customers are required to return physical scanner appliances if they do not renew their subscriptions . in some limited cases , we also provide certain computer equipment used to extend our qualysguard cloud platform into our customers ' private cloud environment . we assess the ability to separate multiple deliverables in accordance with the relevant accounting literature . we recognize revenues when all of the following conditions are met : ( a ) there is persuasive evidence of an arrangement ; ( b ) the service has been provided to the customer ; ( c ) the collection of the fees is reasonably assured ; and ( d ) the amount of fees to be paid by the customer is fixed or determinable . subscriptions for unlimited scans and certain limited scan arrangements with firm expiration dates are recognized ratably over the period in which the services are performed , generally one year . we recognize revenues for certain other limited scan arrangements , where expiration dates can be extended , on an as-used basis . we recognize the subscription of physical scanner appliances and other computer equipment as revenues ratably over the period of the subscription , which is commensurate with the term of the related subscription . because the customer 's access to our cloud solutions are delivered at the same time or within close proximity to the delivery of physical scanner appliances and the terms are commensurate for these services and equipment , we consider these elements as a single unit of accounting recognized ratably over the subscription term . costs of shipping and handling charges associated with physical scanner appliances and other computer equipment are included in cost of revenues . deferred revenues consist of revenues billed or received that will be recognized in the future under subscriptions existing at the balance sheet date . income taxes we are subject to taxes in the united states as well as other tax jurisdictions in which we conduct business . earnings from our non-u.s. activities are subject to local income tax and may be subject to u.s. income tax . income taxes are accounted for under the asset and liability method . deferred tax assets and liabilities are recognized for the tax impact of timing differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards . deferred tax assets and liabilities are measured using statutory tax rates and laws expected to apply to taxable income in the years in which those temporary differences are expected to

liquidity and capital resources since our inception , we had financed our operations primarily through proceeds from the issuance of our preferred stock , including $ 23.2 million invested by philippe f. courtot , our chairman , president and chief executive officer , and cash flows from operations . on october 3 , 2012 , we closed our ipo and received net proceeds of approximately $ 87.5 million after deducting underwriting discounts and commissions , and before deducting total expenses in connection with our ipo of $ 2.9 million . at december 31 , 2014 , our principal source of liquidity was cash , cash equivalents and short-term and long-term investments of $ 166.7 million , including $ 2.4 million held outside of the united states by our foreign subsidiaries . we do not anticipate that we will need funds generated from foreign operations to fund our domestic operations . however , if we repatriate these funds , we could be subject to u.s. income taxes on such amounts , less previously paid foreign income taxes . we have experienced positive cash flows from operations during the years ended december 31 , 2014 , 2013 and 2012 . we believe our existing cash , cash equivalents , short-term and long-term investments , and cash from operations will be sufficient to fund our operations for at least the next twelve months . we expect to spend approximately $ 17 million through december 31 , 2015 for capital expenditures , primarily related to infrastructure to support the anticipated growth in our business . our future capital requirements will depend on many factors , including our rate of revenue growth , the expansion of our sales and marketing activities , the timing and extent of our spending on research and development efforts , international expansion and investment in data centers . we may also seek to invest in or acquire complementary businesses or technologies .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources since our inception , we had financed our operations primarily through proceeds from the issuance of our preferred stock , including $ 23.2 million invested by philippe f. courtot , our chairman , president and chief executive officer , and cash flows from operations . on october 3 , 2012 , we closed our ipo and received net proceeds of approximately $ 87.5 million after deducting underwriting discounts and commissions , and before deducting total expenses in connection with our ipo of $ 2.9 million . at december 31 , 2014 , our principal source of liquidity was cash , cash equivalents and short-term and long-term investments of $ 166.7 million , including $ 2.4 million held outside of the united states by our foreign subsidiaries . we do not anticipate that we will need funds generated from foreign operations to fund our domestic operations . however , if we repatriate these funds , we could be subject to u.s. income taxes on such amounts , less previously paid foreign income taxes . we have experienced positive cash flows from operations during the years ended december 31 , 2014 , 2013 and 2012 . we believe our existing cash , cash equivalents , short-term and long-term investments , and cash from operations will be sufficient to fund our operations for at least the next twelve months . we expect to spend approximately $ 17 million through december 31 , 2015 for capital expenditures , primarily related to infrastructure to support the anticipated growth in our business . our future capital requirements will depend on many factors , including our rate of revenue growth , the expansion of our sales and marketing activities , the timing and extent of our spending on research and development efforts , international expansion and investment in data centers . we may also seek to invest in or acquire complementary businesses or technologies .
```    
 Suspicious Activity Report : as of december 31 , 2014 , we had over 7,700 customers in more than 100 countries , including a majority of each of the forbes global 100 and fortune 100. in 2014 , 2013 and 2012 , approximately 70 % , 70 % and 68 % , respectively , of our revenues were derived from customers in the united states . we sell our solutions to enterprises and government entities primarily through our field sales force and to small and medium-sized businesses through our inside sales force . we generate a significant portion of sales through our channel partners , including managed service providers , value-added resellers and consulting firms in the united states and internationally . 39 we have had continued revenue growth over the past three years . our revenues increased from $ 91.4 million in 2012 to $ 108.0 million in 2013 , and reached $ 133.6 million in 2014 , representing period-over-period increases of $ 16.5 million , and $ 25.6 million , or 18 % and 24 % , respectively . we generated net income of $ 2.2 million in 2012 , $ 1.5 million in 2013 , and $ 30.2 million in 2014 . net income in 2014 includes a tax benefit of $ 23.7 million for recognition of our u.s. federal and certain state deferred tax assets . on september 28 , 2012 , our common stock commenced trading on the nasdaq stock market under the trading symbol “ qlys , ” and on october 3 , 2012 we closed our initial public offering . in our initial public offering , we sold and issued 7,836,250 shares and certain selling stockholders sold an additional 875,000 shares . the net proceeds to us from the offering were approximately $ 87.5 million , after deducting underwriting discounts and commissions , and before deducting total expenses in connection with this offering of $ 2.9 million . key 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 . replace_table_token_5_th adjusted ebitda we monitor adjusted ebitda , a non-gaap financial measure , to analyze our financial results and believe that it is useful to investors , as a supplement to u.s. gaap measures , in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance . we believe that adjusted ebitda helps illustrate underlying trends in our business that could otherwise be masked by the effect of the income or expenses that we exclude in adjusted ebitda . furthermore , we use this measure to establish budgets and operational goals for managing our business and evaluating our performance . we also believe that adjusted ebitda provides an additional tool for investors to use in comparing our recurring core business operating results over multiple periods with other companies in our industry . adjusted ebitda should not be considered in isolation from , or as a substitute for , financial information prepared in accordance with u.s. gaap . we calculate adjusted ebitda as net income before ( 1 ) other ( income ) expense , net , which includes interest income , interest expense and other income and expense , ( 2 ) provision for ( benefit from ) income taxes , ( 3 ) depreciation and amortization of property and equipment , ( 4 ) amortization of intangible assets and ( 5 ) stock-based compensation . 40 the following unaudited table presents the reconciliation of net income to adjusted ebitda for each of the periods presented . replace_table_token_6_th ( 1 ) net income and other ( income ) expense for fiscal years 2013 and prior have been adjusted for an immaterial error as further described in note 1 to our consolidated financial statements included elsewhere in this annual report on form 10-k. free cash flow we define free cash flow , a non-gaap measure , as net cash provided by operating activities less purchases of property and equipment and capitalization of software development costs . we monitor free cash flow as a liquidity measure because we believe it provides useful information to management and investors about the amount of cash we generated , that , after the acquisition of property and equipment and capitalized software development costs , can be used for strategic opportunities , including investing in our business , making strategic acquisitions and strengthening the balance sheet . we also believe free cash flow provides an additional tool for investors to use in comparing our recurring core business operating results over multiple periods . a limitation of using free cash flow as a means for evaluating liquidity is that free cash flow does not represent the total increase or decrease in cash and cash equivalents for the period because it excludes cash provided by or used in other investing and financing activities . in addition , it is important to note that other companies , including companies in our industry , may not use free cash flow , may calculate free cash flow in a different manner than we do , or may use other financial measures to evaluate their performance , all of which could reduce the usefulness of free cash flow as a comparative measure . a reconciliation of free cash flow to net cash provided by operating activities , the most directly comparable financial measure calculated and presented in accordance with gaap , is provided below : replace_table_token_7_th 41 limitations of adjusted ebitda and free cash flow adjusted ebitda and free cash flow , non-gaap financial measures , have limitations as analytical tools , and should not be considered in isolation from or as a substitute for the measures presented in accordance with u.s. gaap . story_separator_special_tag provision for income taxes replace_table_token_22_th provision for income taxes increased $ 0.1 million in 2013 compared to 2012 , primarily due to increases in foreign and state taxes and also due to a reduction of the liability for uncertain tax positions for closure of tax years in foreign jurisdictions on 2012. story_separator_special_tag style= `` font-family : arial ; font-size:10pt ; `` > was primarily attributable to proceeds of $ 84.5 million from our initial public offering , net of offering costs , and $ 2.1 million of proceeds from the exercise of stock options . these cash inflows were partially offset by prepayments on our capital lease obligations of $ 2.4 million and payment of non-contingent consideration related to our nemean acquisition of $ 1.0 million . contractual obligations our principal commitments consist of obligations under our outstanding leases for office space , third-party data centers and office equipment . the following table summarizes our contractual cash obligation at december 31 , 2014 and the effect such obligations are expected to have on our liquidity and cash flows in future periods : replace_table_token_24_th off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities . recent accounting pronouncements see note 1 to the consolidated financial statements in part ii , item 8 of this annual report on form10-k for a discussion of recent accounting pronouncements . critical accounting policies and estimates our consolidated financial statements are prepared in accordance with u.s. gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . on an ongoing basis , we evaluate our estimates and assumptions . our actual results may differ from these estimates under different assumptions or conditions . we believe that of our significant accounting policies , which are described in the notes to our consolidated financial statements , the following accounting policies involve the greatest degree of judgment and complexity and have the greatest potential impact on our consolidated financial statements . a critical accounting policy is one that is material to the presentation of our consolidated financial statements and requires us to make difficult , subjective or complex judgments for uncertain matters that could have a material effect on our financial condition and results of operations . accordingly , these are the policies we believe are the most critical to aid in fully understanding and evaluating our financial condition and results of operations . 51 revenue recognition we derive revenues from subscriptions that require customers to pay a fee in order to access our cloud solutions . customers generally enter into one year renewable annual subscriptions . the subscription fee entitles the customer to an unlimited number of scans for a specified number of networked devices or web applications and , if requested by a customer as part of their subscription , a specified number of physical or virtual scanner appliances . our physical and virtual scanner appliances are requested by certain customers as part of their subscriptions in order to scan it infrastructures within their firewalls and do not function without , and are not sold separately from , subscriptions for our solutions . customers are required to return physical scanner appliances if they do not renew their subscriptions . in some limited cases , we also provide certain computer equipment used to extend our qualysguard cloud platform into our customers ' private cloud environment . we assess the ability to separate multiple deliverables in accordance with the relevant accounting literature . we recognize revenues when all of the following conditions are met : ( a ) there is persuasive evidence of an arrangement ; ( b ) the service has been provided to the customer ; ( c ) the collection of the fees is reasonably assured ; and ( d ) the amount of fees to be paid by the customer is fixed or determinable . subscriptions for unlimited scans and certain limited scan arrangements with firm expiration dates are recognized ratably over the period in which the services are performed , generally one year . we recognize revenues for certain other limited scan arrangements , where expiration dates can be extended , on an as-used basis . we recognize the subscription of physical scanner appliances and other computer equipment as revenues ratably over the period of the subscription , which is commensurate with the term of the related subscription . because the customer 's access to our cloud solutions are delivered at the same time or within close proximity to the delivery of physical scanner appliances and the terms are commensurate for these services and equipment , we consider these elements as a single unit of accounting recognized ratably over the subscription term . costs of shipping and handling charges associated with physical scanner appliances and other computer equipment are included in cost of revenues . deferred revenues consist of revenues billed or received that will be recognized in the future under subscriptions existing at the balance sheet date . income taxes we are subject to taxes in the united states as well as other tax jurisdictions in which we conduct business . earnings from our non-u.s. activities are subject to local income tax and may be subject to u.s. income tax . income taxes are accounted for under the asset and liability method . deferred tax assets and liabilities are recognized for the tax impact of timing differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards . deferred tax assets and liabilities are measured using statutory tax rates and laws expected to apply to taxable income in the years in which those temporary differences are expected to

