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Qualys Reports First Quarter 2025 Financial Results

Qualys, Inc. (NASDAQ: QLYS), a prominent provider of cloud-based IT security and compliance solutions, unveiled its financial outcomes for the first quarter of 2025, revealing favorable results. The company's revenue surged to $159.9 million, marking a 10% increase from $145.8 million in the corresponding quarter the previous year. Notably, GAAP net income rose by 20% to $47.5 million, equating to $1.29 per diluted share, an improvement compared to $39.7 million or $1.05 per diluted share in Q1 2024.

Financial Highlights

In the first quarter, Qualys reached a gross profit of $131 million with an impressive GAAP gross margin of 82%. The company's operating income also saw growth, reaching $51.8 million and generating a 32% operating margin. Additionally, non-GAAP net income amounted to $61.4 million, or $1.67 per diluted share, aligning with a consistent 38% revenue margin compared to Q1 2024.

Qualys emphasized the importance of its cloud-native architecture and the firm’s ability to drive rapid innovations, establishing its leadership in the cybersecurity space. Sumedh Thakar, president and CEO of Qualys, acknowledged the company's commitment to enhancing its cybersecurity risk management solutions, relying on real-time data and automation capabilities.

New Innovations and Product Launches

A notable introduction during this quarter was the Managed Risk Operation Center (mROC), which is supported by the Enterprise TruRisk Management solution. This innovation aims to assist partners in providing a unified managed service, enhancing clients' capability to manage cyber risks effectively.

The launch of TotalAppSec, a comprehensive application risk management solution, showcases Qualys' commitment to the security domain. It combines API security, web application scanning, and malware detection to help organizations swiftly identify and remediate critical vulnerabilities

Independent analysts recognized the organization's efforts, with GigaOm naming TotalCloud as a leader in Cloud Workload Security. Their report highlighted its robustness in supporting hybrid environments and effective asset discovery. Furthermore, Qualys’ CyberSecurity Asset Manager was also acknowledged for its capacity to manage both internal and external attack surfaces.

Qualys has seamlessly integrated its Container Security capabilities with ServiceNow, delivering organizations the ability to prioritize and mitigate vulnerabilities at scale, further enhancing their security posture.

Financial Outlook for 2025

Looking ahead, Qualys anticipates steady growth, issuing guidance for the second quarter of 2025 with expected revenues ranging from $159.7 million to $162.7 million, a growth projection of 7% to 9% year-over-year. The earnings per share (EPS) forecast suggests a range of $0.97 to $1.07 for GAAP and $1.40 to $1.50 for non-GAAP.

For the full fiscal year 2025, Qualys has raised its revenue guidance to between $648 million and $657 million, indicating a growth forecast of 7% to 8% compared to 2024. Non-GAAP EPS expectations are also higher, projected to be between $6.00 and $6.30.

Investor Conference Call

To discuss these results in depth, Qualys will host a conference call and live webcast on May 6, 2025, at 5 p.m. ET. Participants can register to access the call, and a webcast will be available for future reference on the company's investor relations page.

Conclusion

The strong financial performance and innovative product launches underscore Qualys’ commitment to leading the cybersecurity market. As the industry increasingly shifts towards cloud-based solutions, Qualys remains well-positioned to capitalize on these trends while supporting organizations in managing their cyber risk efficiently. With a robust financial outlook and strategic product enhancements, Qualys is poised for sustained growth in the rapidly evolving IT security landscape.