Cybersecurity Cybersecurity is another IT area in which we are finding promising investment opportunities, although the intense competition in this space means it is important to be selective. Qualys, Inc. (NASDAQ:QLYS) is a cloud-based cybersecurity services provider to large corporate clients that specializes in assessing software vulnerabilities of hardware attached to internet networks. Qualys is accelerating its growth and continues to trade at what we believe is a reasonable multiple of real free cash flow, whereas many of its peers are still losing money. It’s a fully subscription-based business, which leads to high revenue visibility.
From Baron Discovery Fund's Investing in Earlier Stage Small Cap Growth Companies January 2017.
