Canaccord has revised its price target for Qualys (QLYS, Financial), reducing it from $163 to $158, while maintaining a Buy rating on the stock. The firm noted that Qualys delivered strong financial results in the first quarter, showcasing the robustness of its platform. Despite facing challenges due to a dip in demand within the vulnerability management sector, the company continues to execute its strategy effectively.
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 $138.83 with a high estimate of $175.00 and a low estimate of $90.00. The average target implies an upside of 9.47% 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: May 06, 2025
- Revenue: $159.9 million, a 10% increase year-over-year.
- Channel Revenue Contribution: 49% of total revenues, up from 45% a year ago.
- International Revenue Growth: 16% growth outside the US, compared to 6% domestic growth.
- Adjusted EBITDA: $74.8 million, representing a 47% margin.
- Operating Expenses: Increased by 10% to $62.5 million, with sales and marketing growing 15%.
- EPS: $1.67 for the first quarter of 2025.
- Free Cash Flow: $107.6 million, representing a 67% margin.
- Share Repurchase: $39.6 million spent to repurchase 292,000 shares.
- Full Year Revenue Guidance: $648 million to $657 million, representing 7% to 8% growth.
- Second Quarter Revenue Guidance: $159.7 million to $162.7 million, representing 7% to 9% growth.
- Full Year EPS Guidance: $6 to $6.3, up from prior range of $5.5 to $5.9.
- Capital Expenditures Guidance: $8 million to $11 million for the full year 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Qualys Inc (QLYS, Financial) reported better-than-expected revenue growth, strong profitability, and solid cash flow generation for the first quarter of 2025.
- The company has successfully expanded its channel partner ecosystem, with revenues from channel partners growing by 19%, outpacing direct sales growth.
- Qualys Inc (QLYS) has launched innovative security solutions, including the Enterprise TruRisk Management (ETM) solution, which provides comprehensive AI-powered orchestration of security findings.
- The company is seeing increased adoption of its cloud security solutions, with Total Cloud Snap making up 5% of LTM bookings.
- Qualys Inc (QLYS) has maintained a strong focus on innovation, with advancements in AI security solutions and audit readiness capabilities, enhancing its competitive edge.
Negative Points
- The macroeconomic environment remains challenging, with increased scrutiny on cybersecurity spending and longer decision-making cycles impacting upsell opportunities.
- Despite improvements in gross retention rates, the company faces a challenging upsell environment due to macroeconomic uncertainties.
- Qualys Inc (QLYS) experienced a decline in the number of customers spending $500,000 or more annually, indicating potential challenges in retaining large accounts.
- The company's direct sales growth has been slower compared to its channel partner growth, highlighting a need for improved execution in North America.
- The company anticipates continued headwinds in new bookings growth, impacting its ability to achieve higher revenue growth rates.
