Latest news with #QLYS
Yahoo
2 days ago
- Business
- Yahoo
5 Revealing Analyst Questions From Qualys's Q1 Earnings Call
Qualys delivered first quarter results that exceeded Wall Street's expectations, driven by continued expansion of its cloud-native security platform and rising demand for integrated risk management tools. CEO Sumedh Thakar cited operational execution around its Enterprise TruRisk Management (ETM) solution and the rollout of new AI-powered security features as key contributors. Management also noted strong momentum in international markets, where channel partner-led growth outpaced domestic sales, and highlighted improved gross retention as a positive sign despite ongoing macroeconomic headwinds. Is now the time to buy QLYS? Find out in our full research report (it's free). Revenue: $159.9 million vs analyst estimates of $157.1 million (9.7% year-on-year growth, 1.8% beat) Adjusted EPS: $1.67 vs analyst estimates of $1.47 (13.8% beat) Adjusted Operating Income: $71.22 million vs analyst estimates of $63.8 million (44.5% margin, 11.6% beat) The company slightly lifted its revenue guidance for the full year to $652.5 million at the midpoint from $651 million Management raised its full-year Adjusted EPS guidance to $6.15 at the midpoint, a 7.9% increase Operating Margin: 32.4%, up from 30.7% in the same quarter last year Annual Recurring Revenue: $639.6 million at quarter end, up 9.7% year on year Billings: $153.1 million at quarter end, up 6.1% year on year Market Capitalization: $5.15 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jonathan Ho (William Blair) pressed on how macro uncertainty is impacting customer spend; CEO Sumedh Thakar explained that while cybersecurity remains a priority, increased scrutiny and longer decision cycles are influencing sales and guidance. Patrick Colville (Scotiabank) asked about competitive pressure from new network-based vulnerability management entrants. Thakar responded that Qualys' differentiation is its focus on actionable remediation and unified risk context, not just detection. Kingsley Crane (Canaccord) inquired about market adoption for AI Security Posture Management; Thakar said most customers are still in the exploratory phase, with broader budget impact likely next year rather than in 2025. Rudy Kessinger (D.A. Davidson) questioned the dip in large customer count; Thakar noted stable win rates and improved retention, attributing fluctuations to upsell and downsell dynamics rather than customer losses. Rob Owens (Piper Sandler) asked about weaker North American growth versus international; Thakar attributed this to stronger partner engagement internationally and efforts to replicate this success domestically through expanded partner initiatives. In upcoming quarters, our team will be watching (1) the pace and scale of partner-led new business wins, particularly through mROC offerings, (2) sustained adoption of AI and cloud security modules like TotalAI and CNAPP as customers move beyond proof-of-concept phases, and (3) improvements in upsell rates and net dollar expansion as macro pressures evolve. Execution against these milestones will be key to validating management's growth strategy. Qualys currently trades at $138.60, up from $126.64 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
10-06-2025
- Business
- Yahoo
2 Unpopular Stocks that Deserve Some Love and 1 to Avoid
When Wall Street turns bearish on a stock, it's worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory. At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here are two stocks where Wall Street's pessimism is creating a buying opportunity and one where the outlook is warranted. Consensus Price Target: $136.11 (-4% implied return) Founded in 1999 as one of the first subscription security companies, Qualys (NASDAQ:QLYS) provides organizations with software to assess their exposure to cyber-attacks. Why Are We Wary of QLYS? Average billings growth of 5.2% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand Estimated sales growth of 6.6% for the next 12 months implies demand will slow from its three-year trend Projected 6.9 percentage point decline in its free cash flow margin next year reflects the company's plans to increase its investments to defend its market position Qualys's stock price of $141.77 implies a valuation ratio of 7.9x forward price-to-sales. If you're considering QLYS for your portfolio, see our FREE research report to learn more. Consensus Price Target: $329.52 (-12.4% implied return) The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ:WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings. Why Do We Love WING? Customers are lining up to eat at its restaurants as the company's same-store sales growth averaged 16.9% over the past two years Healthy operating margin of 25.3% shows it's a well-run company with efficient processes WING is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders At $376.15 per share, Wingstop trades at 94.7x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Consensus Price Target: $257.97 (3.6% implied return) Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities. Why Does RSG Catch Our Eye? Solid 9.3% annual revenue growth over the last five years indicates its offering's solve complex business issues Excellent operating margin of 18.6% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled Robust free cash flow margin of 13.5% gives it many options for capital deployment Republic Services is trading at $249 per share, or 35.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
3 Cash-Heavy Stocks with Mounting Challenges
A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow. Financial flexibility is valuable, but it's not everything - at StockStory, we help you find the stocks that can not only survive but also outperform. Keeping that in mind, here are three companies with net cash positions to steer clear of and a few alternatives to consider. Net Cash Position: $392.2 million (7.6% of Market Cap) Founded in 1999 as one of the first subscription security companies, Qualys (NASDAQ:QLYS) provides organizations with software to assess their exposure to cyber-attacks. Why Does QLYS Worry Us? Offerings struggled to generate meaningful interest as its average billings growth of 5.2% over the last year did not impress Estimated sales growth of 6.6% for the next 12 months implies demand will slow from its three-year trend Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 6.9 percentage points over the next year Qualys is trading at $141.86 per share, or 7.9x forward price-to-sales. Check out our free in-depth research report to learn more about why QLYS doesn't pass our bar. Net Cash Position: $365.6 million (2% of Market Cap) Headquartered in Arizona, First Solar (NASDAQ:FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions. Why Is FSLR Not Exciting? Sales trends were unexciting over the last five years as its 6.8% annual growth was below the typical industrials company Investments to defend its competitive moat have ramped up over the last five years as its free cash flow margin decreased by 18.5 percentage points Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders First Solar's stock price of $166.35 implies a valuation ratio of 8.2x forward P/E. If you're considering FSLR for your portfolio, see our FREE research report to learn more. Net Cash Position: $126.7 million (2.5% of Market Cap) Founded in 1981 when computer vision was in its infancy, Cognex (NASDAQ:CGNX) develops machine vision systems and software that help manufacturers and logistics companies automate quality inspection and tracking of products. Why Do We Think CGNX Will Underperform? Flat sales over the last two years suggest it must find different ways to grow during this cycle Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 12.2 percentage points Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results At $30.06 per share, Cognex trades at 33.5x forward P/E. Read our free research report to see why you should think twice about including CGNX in your portfolio, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
QLYS Q1 Earnings Call: Channel Partnerships and AI Security Drive Outperformance
Cloud security and compliance software provider Qualys (NASDAQ:QLYS) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 9.7% year on year to $159.9 million. The company expects next quarter's revenue to be around $161.2 million, close to analysts' estimates. Its non-GAAP profit of $1.67 per share was 13.8% above analysts' consensus estimates. Is now the time to buy QLYS? Find out in our full research report (it's free). Revenue: $159.9 million vs analyst estimates of $157.1 million (9.7% year-on-year growth, 1.8% beat) Adjusted EPS: $1.67 vs analyst estimates of $1.47 (13.8% beat) Adjusted Operating Income: $71.22 million vs analyst estimates of $63.8 million (44.5% margin, 11.6% beat) The company slightly lifted its revenue guidance for the full year to $652.5 million at the midpoint from $651 million Management raised its full-year Adjusted EPS guidance to $6.15 at the midpoint, a 7.9% increase Operating Margin: 32.4%, up from 30.7% in the same quarter last year Free Cash Flow Margin: 67.3%, up from 26.3% in the previous quarter Net Revenue Retention Rate: 103%, in line with the previous quarter Annual Recurring Revenue: $639.6 million at quarter end, up 9.7% year on year Billings: $153.1 million at quarter end, up 6.1% year on year Market Capitalization: $4.97 billion Qualys delivered better-than-expected results in Q1, with revenue and non-GAAP profit both exceeding Wall Street's expectations. Management attributed the performance to ongoing customer demand for cloud-native cybersecurity risk management and a strategic focus on channel partnerships. CEO Sumedh Thakar highlighted the company's integrated Enterprise TruRisk Management (ETM) platform and continued product expansion as key differentiators, stating that Qualys is 'increasingly well armed with fresh new capabilities to further strengthen our strategic position.' Looking ahead, Qualys' leadership pointed to a more cautious operating environment, with CFO Joo Mi Kim noting increased budget scrutiny among customers and a challenging upsell environment. Despite this, the company modestly raised its full-year revenue and non-GAAP EPS guidance, reflecting confidence in its partner-first sales approach and product innovation. Kim emphasized, 'We intend to continue to responsibly align our product and marketing investments to focus on high impact initiatives.' Q1 results were driven by continued investment in product development and deeper engagement with channel partners. Management discussed how enterprise customers are consolidating security tools and seeking solutions that unify risk data across multiple platforms. Channel Partnerships Expand Reach: Revenue from channel partners grew significantly faster than direct sales, with the channel now representing nearly half of total revenue. Management credited this to the partner-first sales strategy and indicated that partner-led deal registration increased again in Q1. Integrated Risk Operations Center (ROC): The new ROC offering helps organizations consolidate risk signals across various security tools, including those from other vendors. This solution is designed to provide actionable insights and prioritize remediation, which management says leads to operational efficiency and cost savings for customers. Cloud Security and TotalCloud CNAPP: Adoption of Qualys' cloud-native security tools, especially the TotalCloud Cloud-Native Application Protection Platform (CNAPP), continued to gain traction. Management mentioned several seven-figure annual bookings, particularly among large enterprises needing unified multi-cloud and container security. AI Security Posture Management Growth: The company expanded its TotalAI and AI Security Posture Management (AI-SPM) solutions to address risks associated with machine learning and large language models. Management described this as an early but important area, with pilot projects underway at select customers. Audit Readiness Automation: New solutions for policy audit and automated evidence collection were introduced, targeting regulatory compliance needs and helping customers reduce manual audit workloads. Management views this as a growing area of IT security spending. Management expects the rest of the year to be shaped by continued partner channel expansion, growing adoption of its cloud and AI security solutions, and persistent macroeconomic caution. Partner-First Sales Strategy: The transition toward working more closely with channel partners is expected to drive incremental pipeline and revenue, as more customers seek managed risk operations and integrated security solutions. Cloud and AI Security Adoption: Expanded offerings in cloud workload protection and AI risk management are anticipated to support future growth, particularly as enterprise customers increase investment in these areas. Budget Scrutiny and Upsell Challenges: Management highlighted ongoing customer cost controls and budget reviews as potential headwinds, which may temper new business growth and upsell rates, especially in North America. Jonathan Ho (William Blair): Asked about the impact of macroeconomic uncertainty on customer spending. Management noted longer decision cycles and increased ROI scrutiny, but said no major deals were pushed or lost. Patrick Colville (Scotiabank): Inquired about competition from endpoint security players expanding into network-based vulnerability management. CEO Sumedh Thakar responded that Qualys can integrate competitor data, and prioritizes actionable risk remediation over simply finding more vulnerabilities. Kingsley Crane (Canaccord): Questioned the demand environment for AI security solutions. Management described the market as still in the exploratory phase, with most customers evaluating risks and formulating future budgets for AI security. Rudy Kessinger (D.A. Davidson): Queried a decline in large customer counts above $500K in annual contract value. Management stated there were no unusual losses, attributing fluctuations to normal business dynamics and improved gross retention. Trevor Walsh (Citizens): Asked about the rollout and ramp of managed risk operations partners. Management explained that initial focus is on a few strategic partners, with plans to expand based on partner investment and customer demand. In coming quarters, the StockStory team will monitor (1) the pace at which channel partner contributions continue to grow as a share of overall revenue, (2) adoption rates for Qualys' new AI and cloud security solutions, and (3) any changes in customer renewal and upsell trends amid ongoing macroeconomic uncertainty. Progress toward federal market certifications and additional strategic partner certifications will also be key markers of execution. Qualys currently trades at a forward price-to-sales ratio of 7.6×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Qualys, Inc. (QLYS): A Bull Case Theory
We came across a bullish thesis on Qualys, Inc. (QLYS) on Substack by Na's Substack. In this article, we will summarize the bulls' thesis on QLYS. Qualys, Inc. (QLYS)'s share was trading at $126.82 as of May 5th. QLYS's trailing and forward P/E were 27.27 and 21.74 respectively according to Yahoo Finance. Qualys, Inc. (QLYS) is a profitable, cloud-native cybersecurity company specializing in IT, security, and compliance solutions, with a foundation in vulnerability management (VM). Operating under a SaaS model, Qualys derives its recurring revenue from annual subscriptions tied to its integrated Qualys Enterprise TruRisk Platform. Over the past five years, the company has sustained high gross margins, consistent profitability, and robust free cash flow generation—hallmarks of a mature SaaS business. Despite these strengths, Qualys has experienced a noticeable slowdown in top-line growth, with a five-year revenue CAGR of 12.1% from 2019 to 2024, decelerating to 9.6% in 2024. This slowdown reflects saturation in the core VM market, rising competition, and the difficulty of sustaining high growth at scale. Nevertheless, the company has maintained GAAP operating margins consistently above 20% for much of this period and averaged FCF margins above 35% over the last three years, highlighting its ability to convert revenue into shareholder value, primarily through aggressive share repurchases. While Qualys remains a leader in the VM space, competitive threats from specialized players like Tenable and Rapid7, alongside platform giants such as CrowdStrike and Palo Alto Networks, are eroding its market edge. To combat this, Qualys is investing in broadening its platform with offerings like TotalCloud CNAPP for cloud security and endpoint detection and response (EDR) solutions. These newer initiatives are strategically sound but still require significant traction to materially impact the company's growth profile. The challenge lies in convincing enterprises to adopt these newer modules in a crowded and rapidly evolving cybersecurity landscape dominated by larger, more diversified vendors. The TruRisk platform's integrated approach offers a potential differentiator, but success will depend on execution and product-market fit in these newer segments. A DCF valuation that assumes growth stabilizes in the mid-single digits, while margins remain elevated, suggests an intrinsic value range of $115 to $145 per share. With shares trading around $126.75 as of late April 2025, Qualys appears fairly valued. The core investment case rests on its status as a stable, cash-generative business within cybersecurity—a sector that remains mission-critical even as growth moderates. While unlikely to deliver outsized returns from current levels, Qualys offers a compelling profile for investors seeking quality, profitability, and disciplined capital returns. Upside potential exists if newer product areas exceed expectations or strategic M&A reshapes the growth narrative. Conversely, failure to execute in these expansion areas or sustained market share loss could pressure valuation over time.
