Qualys (NASDAQ: QLYS ) is a cloud-based enterprise cybersecurity company I have been following for a while. In the past I have covered the stock twice, with the most recent one in April last year, when I assignedAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in QLYS over the next 72 hours. I wrote this article ...

Financial Performance - Qualys, Inc. reported fourth-quarter earnings of $1.60 per share, exceeding the analyst consensus estimate of $1.35 per share [1] - The company achieved quarterly sales of $159.191 million, surpassing the analyst consensus estimate of $156.192 million [1] Strategic Insights - The CEO of Qualys highlighted the increasing adoption of the Qualys Enterprise TruRisk Platform by customers, indicating a transformation in their security stacks [2] - The company noted the success of newer product initiatives such as Cybersecurity Asset Management, Patch Management, and TotalCloud, contributing to its innovation and competitive edge [2] - Qualys anticipates FY25 adjusted earnings between $5.50 and $5.90 per share, with revenue projected between $645 million and $657 million [2] Market Reaction - Following the earnings announcement, Qualys shares fell by 3.4%, trading at $136.00 [3] - Analysts adjusted their price targets for Qualys, with Scotiabank lowering its target from $150 to $140, while Canaccord Genuity maintained a Buy rating but reduced its target from $170 to $163 [4]

Qualys, Inc. (QLYS) ended 2024 on a strong note with better-than-expected results for the fourth quarter. The company reported fourth-quarter 2024 non-GAAP earnings of $1.60 per share, which surpassed the Zacks Consensus Estimate of $1.35 and came above management’s guidance of $1.28-$1.38.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.The bottom line also witnessed a significant improvement from the year-ago quarter’s earnings of $1.40. The robust year-over-year growth was prim ...

Financial Data and Key Metrics Changes - For the full year 2024, the company reported a revenue growth of 10% to $607.6 million, with an adjusted EBITDA margin of 47% and net income increasing by 16% to $229 million [31][32] - In Q4 2024, revenues grew 10% to $159.2 million, with channel contributions rising to 48% of total revenues from 44% a year ago [32][33] - Free cash flow reached $231.8 million, representing 38% of revenue, and EPS for Q4 was $1.60 [31][36] Business Line Data and Key Metrics Changes - Patch management and cybersecurity asset management combined accounted for 15% of total bookings and 24% of new bookings in 2024 [34] - Cloud security solutions contributed 4% to 2024 bookings, indicating a growing focus on cloud security [34] Market Data and Key Metrics Changes - International revenue grew by 15%, outpacing domestic growth of 7%, with the US and international revenue mix at 58% and 42%, respectively [33] - The growth retention rate remained approximately at 90%, and the net dollar expansion rate was 103%, unchanged from the prior quarter [33] Company Strategy and Development Direction - The company is focusing on evolving its platform to provide a comprehensive risk analytics and quantification solution, integrating AI models and allowing customers to leverage existing security tools [10][11] - The introduction of the Enterprise True Risk Management (ETM) platform aims to enhance risk quantification and remediation capabilities, positioning the company as a leader in proactive risk management [96][98] - The company plans to continue its partner-first strategy, emphasizing collaboration with partners to drive growth and enhance service offerings [25][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market position and growth opportunities, particularly in the federal sector with anticipated FedRAMP high certification in 2025 [28][90] - The selling environment for 2025 is expected to remain stable, with ongoing budget scrutiny, but the company anticipates continued demand for cybersecurity solutions [33][39] Other Important Information - The board authorized an increase of $200 million to the share repurchase program, bringing the total available amount for share repurchases to $343.4 million [38] - The company is investing in federal go-to-market strategies and expanding its federal team to capitalize on modernization opportunities within government agencies [90] Q&A Session Summary Question: Thoughts on creative packaging opportunities - Management acknowledged the need for customers to articulate cybersecurity spend in terms of business risk and is exploring packaging opportunities around the adoption of ETM [46] Question: Changes expected in sales motion after CRO departure - Management plans to focus on execution and partner-oriented go-to-market strategies, leveraging existing sales leadership to drive business forward [50][56] Question: Early customer feedback on Total AI - Early feedback on Total AI has been positive, with customers expressing interest in leveraging AI security capabilities [66][67] Question: Factors driving better-than-expected Q4 performance - Management noted that better linearity in renewals and invoicing cycles contributed to Q4 revenue performance, despite a weaker pipeline [76][77] Question: Expectations for new logo bookings growth in 2025 - Management anticipates weaker growth in new logo bookings for 2025, focusing on partner-led strategies to drive new customer acquisition [83] Question: Opportunities in the federal vertical - Management is optimistic about opportunities in the federal sector, especially with the anticipated FedRAMP high certification, which could modernize federal cybersecurity solutions [90][91] Question: Go-to-market strategy for ETM - Management highlighted that ETM differentiates itself by providing comprehensive risk quantification and remediation, allowing for easier integration with existing tools [95][98]

Group 1: Earnings Performance - Qualys reported quarterly earnings of $1.60 per share, exceeding the Zacks Consensus Estimate of $1.35 per share, and up from $1.40 per share a year ago, representing an earnings surprise of 18.52% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Qualys posted revenues of $159.19 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.99% and increasing from $144.57 million year-over-year [2] Group 2: Stock Performance and Outlook - Qualys shares have increased approximately 4.1% since the beginning of the year, compared to the S&P 500's gain of 3.1% [3] - The future performance of Qualys stock will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.45 on revenues of $157.9 million, and for the current fiscal year, it is $6.04 on revenues of $652.1 million [7] Group 3: Industry Context - The Zacks Security industry is currently ranked in the top 8% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Investor Presentation Security and Compliance for the Digital Transformation Sumedh Thakar, President and CEO Joo Mi Kim, CFO February 6, 2025 Safe harbor This presentation includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this presentation include, but are not limited to, the following list: Our expectations and beliefs regarding t ...

Revenue Growth - Q4 2024 revenue increased by 10% year-over-year to $159.2 million, compared to $144.6 million in Q4 2023[3] - Full year 2024 revenue also grew by 10% to $607.6 million, up from $554.5 million in 2023[9] - For Q1 2025, management expects revenues to be between $155.5 million and $158.5 million, representing 7% to 9% growth year-over-year[20] - Full year 2025 revenue guidance is projected to be between $645.0 million and $657.0 million, indicating 6% to 8% growth over 2024[21] - Revenues for Q4 2024 reached $159.191 million, a 10% increase from $144.570 million in Q4 2023[38] - Non-GAAP calculated current billings for the three months ended December 31, 2024, were $192,827,000, a 13% increase from $170,658,000 in the same quarter of 2023[50] Profitability - GAAP net income for Q4 2024 rose by 8% to $44.0 million, or $1.19 per diluted share, compared to $40.6 million, or $1.08 per diluted share, in Q4 2023[6] - Non-GAAP net income for Q4 2024 was $59.4 million, or $1.60 per diluted share, compared to $52.8 million, or $1.40 per diluted share, in Q4 2023[6] - Net income for the full year 2024 was $173.680 million, compared to $151.595 million in 2023, representing a 15% year-over-year growth[38] - Non-GAAP net income per diluted share for Q4 2024 was $1.19, compared to $1.08 in Q4 2023, indicating a 10% increase[38] - The net income as a percentage of revenues for the twelve months ended December 31, 2024, was 29%, compared to 27% in 2023, indicating improved profitability[44] Cash Flow and Assets - Operating cash flow for Q4 2024 increased by 41% to $47.7 million, representing 30% of revenues, compared to 23% in Q4 2023[8] - Cash and cash equivalents rose to $232.182 million in 2024, up from $203.665 million in 2023, a 14% increase[40] - Total assets increased to $973.537 million in 2024 from $812.618 million in 2023, marking a 20% growth[40] - The net cash provided by operating activities for the twelve months ended December 31, 2024, was $244,094,000, nearly unchanged from $244,605,000 in 2023[42] - The company reported a net increase in cash, cash equivalents, and restricted cash of $27,017,000 for the twelve months ended December 31, 2024[42] Expenses and Compensation - Operating expenses for Q4 2024 totaled $80.741 million, compared to $75.971 million in Q4 2023, reflecting a 6% increase[38] - Stock-based compensation for the twelve months ended December 31, 2024, totaled $77,133,000, up from $69,079,000 in 2023, indicating an increase of approximately 11.5%[44] Industry Recognition and Product Development - The company received multiple industry recognitions, including being named a leader in various cybersecurity solution categories by Gartner and KuppingerCole[16] - Qualys launched several new products, including the Risk Operations Center and TruRisk Eliminate, enhancing its cybersecurity offerings[21] Future Projections - The company expects a non-GAAP effective income tax rate of 21% for 2025, which may be adjusted based on various factors[34] - Deferred revenues increased to $371.457 million in 2024 from $333.267 million in 2023, indicating strong future revenue potential[40] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $282,842,000, compared to $259,139,000 in 2023, reflecting a year-over-year increase of about 9.2%[44] - Free cash flows for the twelve months ended December 31, 2024, were $231,760,000, slightly down from $235,819,000 in 2023[48] - The company announced a $200 million increase to its share repurchase program[1]

mROC, powered by Qualys Enterprise TruRisk™ Management, accelerates revenue paths for partners helping CISOs articulate cyber risk as business risk FOSTER CITY, Calif., Feb. 5, 2025 /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced the Managed Risk Operations Center (mROC) Partner Alliance, allowing select Qualys partners to expand their revenue streams by offering advisory, onboarding, integration, and remediatio ...

Qualys (QLYS) is scheduled to report fourth-quarter 2024 earnings after market close on Feb. 6, 2025.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.For the fourth quarter, QLYS anticipates revenues between $154.5 million and $157.5 million. The Zacks Consensus Estimate for revenues is pinned at $156.1 million, indicating an improvement of 8% from the year-ago quarter’s revenues of $144.57 million.Qualys anticipates non-GAAP earnings per share between $1.28 and $1.38. The consensus ma ...

TotalAppSec integrates API security, web application scanning, and AI-driven malware detection into single risk-based approachFOSTER CITY, Calif., Feb. 3, 2025 /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced TotalAppSec, its new AI-powered application risk management solution to enable organizations to monitor and mitigate cyber risk from critical web applications and APIs. Qualys TotalAppSec unifies API securit ...