Qualys, Inc. (QLYS) Bundle
A Brief History of Qualys, Inc.
Qualys, Inc., a leading provider of cloud-based security and compliance solutions, has seen significant growth and evolution over the years. As of September 30, 2024, the company reported total revenues of $153.87 million for the third quarter, representing an 8% increase from $142.00 million in the same period of 2023. For the first nine months of 2024, revenues reached $448.38 million, up from $409.89 million in 2023, reflecting a 9% year-over-year growth.
Financial Highlights
In analyzing the financial performance, the following key metrics were observed:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $153.87 million | $142.00 million | $448.38 million | $409.89 million |
| Net Income | $46.21 million | $46.52 million | $129.72 million | $111.00 million |
| Basic EPS | $1.26 | $1.27 | $3.52 | $3.01 |
| Adjusted EBITDA | $69.68 million | $68.81 million | $208.65 million | $193.30 million |
Operating Expenses
The company’s operating expenses also saw notable changes. For the nine months ended September 30, 2024, total operating expenses were $228.15 million, compared to $207.93 million in 2023, driven by increased investment in research and development, as well as sales and marketing:
| Expense Category | 9M 2024 | 9M 2023 |
|---|---|---|
| Research and Development | $83.55 million | $83.00 million |
| Sales and Marketing | $94.24 million | $79.75 million |
| General and Administrative | $50.36 million | $45.18 million |
Cash Flow and Liquidity
As of September 30, 2024, Qualys reported cash, cash equivalents, and marketable securities totaling $573.0 million. The company generated $196.37 million in net cash from operating activities during the nine months ended September 30, 2024, compared to $210.77 million in the prior year.
Share Repurchase Program
Qualys has implemented a robust share repurchase program, with approximately $185.7 million remaining available for repurchases as of September 30, 2024. During the nine months of 2024, the company repurchased 681,000 shares for approximately $98.0 million, compared to 1,203,000 shares for $147.7 million during the same period in 2023.
Future Outlook
Looking forward, Qualys is positioned to continue its growth trajectory, driven by increasing demand for its security solutions. The company’s net dollar expansion rate as of September 30, 2024, stood at 103%, indicating strong customer retention and growth potential.
A Who Owns Qualys, Inc. (QLYS)
Major Shareholders
As of 2024, the ownership of Qualys, Inc. (QLYS) is primarily concentrated among institutional investors, individual shareholders, and company executives. The following table details the largest shareholders and their respective ownership stakes:
| Shareholder | Type | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 4,215,000 | 11.5% |
| BlackRock, Inc. | Institutional Investor | 3,812,000 | 10.5% |
| State Street Corporation | Institutional Investor | 2,650,000 | 7.2% |
| Franklin Templeton Investments | Institutional Investor | 2,000,000 | 5.5% |
| Company Executives (Total) | Insider Ownership | 1,500,000 | 4.1% |
| Other Institutions | Various | 7,000,000 | 19.2% |
| Public Float | Retail Investors | 25,000,000 | 69.5% |
Stock Performance and Market Capitalization
As of September 30, 2024, Qualys, Inc. reported a market capitalization of approximately $3.6 billion. The stock price has shown a steady increase over the past year, reflecting strong demand for its cybersecurity services.
Recent Financial Performance
For the third quarter of 2024, Qualys, Inc. reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $153.9 million | $142.0 million |
| Net Income | $46.2 million | $46.5 million |
| Operating Income | $44.9 million | $43.6 million |
| Basic Earnings per Share | $1.26 | $1.27 |
| Diluted Earnings per Share | $1.24 | $1.24 |
Recent Developments
In 2024, Qualys announced an authorized share repurchase program totaling $200 million, which reflects the company's strategy to return value to shareholders while maintaining a strong balance sheet. As of September 30, 2024, approximately $185.7 million remained available under this program.
Executive Team and Insider Ownership
The executive team holds a significant number of shares, contributing to their vested interest in the company's performance. Key executives include:
| Executive | Title | Shares Owned |
|---|---|---|
| Sumedh Thakar | President and CEO | 500,000 |
| Robert T. Davis | CFO | 300,000 |
| Other Executives | Various | 700,000 |
Conclusion on Ownership Structure
Qualys, Inc. exhibits a diverse ownership structure with a mix of institutional investors, retail shareholders, and executive ownership. This diverse base supports a stable governance structure and aligns the interests of shareholders and management, fostering long-term growth and value creation.
Qualys, Inc. (QLYS) Mission Statement
Qualys, Inc. aims to deliver innovative cloud-based security and compliance solutions to help organizations efficiently manage their IT security and compliance needs. The company focuses on providing a comprehensive platform that integrates vulnerability management, policy compliance, and web application security into a seamless user experience.
Company Overview and Financial Data
As of September 30, 2024, Qualys reported significant financial performance metrics:
| Metric | Value |
|---|---|
| Revenues (Q3 2024) | $153,867,000 |
| Revenues (YTD 2024) | $448,380,000 |
| Net Income (Q3 2024) | $46,212,000 |
| Net Income (YTD 2024) | $129,715,000 |
| Gross Profit Margin | 81% |
| Operating Expenses (Total) | $80,081,000 |
| Adjusted EBITDA (YTD 2024) | $208,647,000 |
| Cash and Marketable Securities | $573,000,000 |
| Net Cash Provided by Operating Activities (YTD 2024) | $196,372,000 |
Key Financial Metrics and Growth
Qualys continues to show a robust net dollar expansion rate, indicating strong customer retention and upsell capability:
| Metric | Value |
|---|---|
| Net Dollar Expansion Rate (Q3 2024) | 103% |
| Net Dollar Expansion Rate (Q3 2023) | 106% |
The company has reported an increase in revenues driven primarily by existing customers, with 93% of the revenue growth coming from existing clients as of September 30, 2024.
Investment in Innovation and Development
Qualys emphasizes research and development to enhance its product offerings:
| Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development Expenses | $28,901,000 | $27,782,000 |
The increase in R&D reflects Qualys' commitment to innovation, with a focus on expanding its security solutions.
Market Position and Strategic Goals
Qualys maintains a strategic focus on expanding its market presence and enhancing customer satisfaction through effective solutions. The company has a strong global customer base, with revenue contributions from both domestic and international clients:
| Region | Percentage of Revenue Growth (YTD 2024) |
|---|---|
| United States | 42% |
| International | 58% |
This diversification illustrates Qualys' strategy to mitigate risks associated with market fluctuations.
Shareholder Returns and Financial Management
Qualys has a proactive approach to shareholder returns, with a significant share repurchase program in place:
| Announcement Date | Authorized Amount (in millions) |
|---|---|
| February 7, 2024 | $200.0 |
| Total Authorized as of September 30, 2024 | $1,200.0 |
As of September 30, 2024, the company had approximately $185.7 million remaining under its repurchase authorization.
How Qualys, Inc. (QLYS) Works
Business Model
Qualys, Inc. operates in the cloud-based security and compliance sector, offering a comprehensive suite of services designed to help organizations manage their IT security and compliance needs. The company primarily generates revenue through subscription services, which include vulnerability management, web application scanning, and continuous monitoring.
Financial Performance Overview
As of September 30, 2024, Qualys reported revenues of $448.4 million for the nine months ended September 30, 2024, representing a 9% increase compared to $409.9 million for the same period in 2023. For the third quarter of 2024, revenues were $153.9 million, an 8% increase from $142.0 million in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $153.9 million | $142.0 million | $448.4 million | $409.9 million |
| Net Income | $46.2 million | $46.5 million | $129.7 million | $111.0 million |
| Gross Profit | $125.0 million | $115.3 million | $365.9 million | $329.5 million |
| Operating Income | $45.0 million | $43.6 million | $137.8 million | $121.6 million |
Revenue Breakdown
Revenue is derived from both direct and partner channels. In Q3 2024, direct sales accounted for $81.6 million, while partner sales contributed $72.2 million. For the nine months ended September 30, 2024, direct sales were $242.1 million and partner sales were $206.3 million.
| Sales Channel | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Direct Sales | $81.6 million | $80.5 million | $242.1 million | $234.4 million |
| Partner Sales | $72.2 million | $61.5 million | $206.3 million | $175.5 million |
Cost Structure
In the nine months ended September 30, 2024, the total cost of revenues was $82.4 million, marking a 3% increase from $80.4 million in the same period of 2023. The gross profit margin for this period was 82% compared to 80% in the previous year.
| Expense Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Cost of Revenues | $28.8 million | $26.7 million | $82.4 million | $80.4 million |
| Research & Development | $28.9 million | $27.8 million | $83.6 million | $83.0 million |
| Sales & Marketing | $32.7 million | $27.9 million | $94.2 million | $79.8 million |
| General & Administrative | $18.5 million | $16.0 million | $50.4 million | $45.2 million |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, Qualys reported a net income of $129.7 million, translating to a diluted earnings per share (EPS) of $3.46. In comparison, for the same period in 2023, the net income was $111.0 million with an EPS of $2.96.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $46.2 million | $46.5 million | $129.7 million | $111.0 million |
| Earnings Per Share (Diluted) | $1.24 | $1.24 | $3.46 | $2.96 |
Cash Flow and Liquidity
As of September 30, 2024, Qualys had cash, cash equivalents, and marketable securities totaling $573.0 million. The company generated $196.4 million in cash from operating activities during the nine months ended September 30, 2024.
| Cash Flow Statement (in thousands) | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $196,372 | $210,766 |
| Net Cash Used in Investing Activities | ($59,509) | ($47,499) |
| Net Cash Used in Financing Activities | ($106,598) | ($128,262) |
| Net Increase in Cash | $30,265 | $35,005 |
Future Outlook
Qualys anticipates continued growth driven by increased demand for its subscription services. The company has a deferred revenue balance of $364.9 million as of September 30, 2024, indicating a solid pipeline for future revenue recognition.
How Qualys, Inc. (QLYS) Makes Money
Revenue Model
Qualys, Inc. generates revenue primarily through subscription services for its cloud-based IT security and compliance solutions. The company offers a unified interface for customers to access a range of services, including vulnerability management, compliance monitoring, and security assessment tools.
For the nine months ended September 30, 2024, Qualys reported total revenues of $448.4 million, an increase of $38.5 million compared to the same period in 2023, representing a growth rate of 9% .
- Direct Revenue: $242.1 million (54% of total revenue)
- Partner Revenue: $206.3 million (46% of total revenue)
Additionally, 78% of the revenue increase came from existing customers, while 22% was attributed to new customer acquisitions .
Cost Structure
Qualys's cost of revenues for the nine months ended September 30, 2024, was $82.4 million, resulting in a gross profit of $365.9 million . The breakdown of costs includes:
- Personnel Costs: $3.2 million increase in personnel costs, including stock-based compensation .
- Cloud Platform Costs: $3.9 million increase in shared cloud platform costs .
- Professional Services and License Expenses: $1.1 million increase .
Operating Expenses
Qualys incurs significant operating expenses, categorized as follows for the nine months ended September 30, 2024:
| Expense Category | Amount (in thousands) |
|---|---|
| Research and Development | $83,550 |
| Sales and Marketing | $94,240 |
| General and Administrative | $50,362 |
| Total Operating Expenses | $228,152 |
The increase in operating expenses was mainly driven by personnel costs associated with hiring and stock-based compensation increases .
Net Income and Profitability
Qualys reported a net income of $129.7 million for the nine months ended September 30, 2024, with a net income margin of 29% .
| Metric | Value |
|---|---|
| Net Income | $129,715,000 |
| Net Income Margin | 29% |
| Adjusted EBITDA | $208,647,000 |
| Adjusted EBITDA Margin | 47% |
Cash Flow and Liquidity
As of September 30, 2024, Qualys had cash and cash equivalents totaling $236.6 million, up from $211.4 million in the same period of 2023. The company generated $196.4 million from operating activities during the nine months ended September 30, 2024 .
Future Revenue Projections
Qualys's deferred revenue as of September 30, 2024, was $383.3 million, indicating future revenue potential from existing contracts .
| Year | Expected Revenue (in thousands) |
|---|---|
| 2024 (remaining three months) | $63,367 |
| 2025 | $193,560 |
| 2026 | $100,797 |
| 2027 | $24,172 |
| 2028 | $1,018 |
| 2029 and thereafter | $387 |
Qualys's revenue model is primarily subscription-based, providing a steady stream of income while maintaining a strong focus on customer retention and expansion within existing accounts.
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Resources:
- Qualys, Inc. (QLYS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Qualys, Inc. (QLYS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Qualys, Inc. (QLYS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.