Qualys (QLYS, Financial) reported impressive first-quarter financial performance with revenue reaching $159.9 million, surpassing expectations of $157.09 million. This achievement is attributed to the company's successful rollout of new products and a growing demand for its comprehensive cybersecurity risk management solutions. According to Sumedh Thakar, the company president and CEO, the cloud-native architecture and innovation capabilities of Qualys set it apart in the cybersecurity sector.
The firm's Enterprise TruRisk Management solution is highlighted as a key driver for sustained customer relationships and pivotal in advancing cybersecurity stack consolidation. Real-time data, automation, and artificial intelligence are central to this new era of cyber risk management, reinforcing Qualys' position as an essential risk management platform poised for future growth.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Qualys Inc (QLYS, Financial) is $138.77 with a high estimate of $175.00 and a low estimate of $90.00. The average target implies an upside of 9.42% from the current price of $126.82. More detailed estimate data can be found on the Qualys Inc (QLYS) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Qualys Inc's (QLYS, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Qualys Inc (QLYS, Financial) in one year is $190.38, suggesting a upside of 50.12% from the current price of $126.82. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Qualys Inc (QLYS) Summary page.
QLYS Key Business Developments
Release Date: February 06, 2025
- Full Year Revenue: $607.6 million, a growth of 10%.
- Adjusted EBITDA Margin: 47% for the full year.
- Net Income: $229 million, a growth of 16%.
- Earnings Per Share (EPS): $6.13 per diluted share, a growth of 16%.
- Free Cash Flow: $231.8 million, representing 30% of revenue.
- Q4 Revenue: $159.2 million, a growth of 10%.
- Channel Revenue Contribution: 48% of total revenues, up from 44% a year ago.
- Gross Retention Rate: Approximately 90%.
- Net Dollar Expansion Rate: 103%.
- Q4 Adjusted EBITDA: $74.2 million, representing a 47% margin.
- Q4 EPS: $1.60.
- Q4 Free Cash Flow: $41.9 million, representing a 26% margin.
- Share Repurchase Program: $343.4 million available after a $200 million increase.
- 2025 Revenue Guidance: $645 million to $657 million, growth of 6% to 8%.
- 2025 EPS Guidance: $5.50 to $5.90.
- 2025 EBITDA Margin Guidance: Low 40s.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Qualys Inc (QLYS, Financial) reported a 10% revenue growth for the full year 2024, reaching $607.6 million.
- The company achieved an adjusted EBITDA margin of 47%, demonstrating strong financial discipline.
- Qualys Inc (QLYS) introduced innovative products like TruRisk Eliminate and TotalAI, enhancing their cybersecurity offerings.
- The company saw a 13% increase in customers spending $500,000 or more, indicating strong customer retention and growth.
- Qualys Inc (QLYS) expanded its channel partner contributions, with revenues from channel partners growing by 18%.
Negative Points
- The net dollar expansion rate remained flat at 103%, indicating challenges in upselling to existing customers.
- New bookings performance was disappointing in Q4, impacting revenue growth expectations for 2025.
- The departure of Chief Revenue Officer Dino DiMarino may lead to potential disruptions in sales execution.
- Guidance for 2025 indicates a lower revenue growth rate of 6% to 8%, reflecting cautious market conditions.
- The company anticipates a contraction in gross margin by approximately 1% due to investments in data centers.
