How did Qualys manage to grow its operating profit in Q4 2024 despite rising expenses?

Qualys demonstrated strong growth in operating profit in Q4 2024 despite increasing expenses, primarily driven by strategic innovations and expansions in the cybersecurity market: 1. **Strategic Product Expansions**: Qualys has been innovating and expanding its product offerings, such as the Risk Operations Center (ROC) and TotalCloud CNAPP solutions. These new solutions have been well-received in the market, leading to significant business opportunities and customer adoption. 2. **Increased Customer Adoption and Consolidation**: The company has seen increased adoption of its products, particularly the Qualys Enterprise TruRisk Management (ETM) solution. Customers are consolidating their security tools and data onto the Qualys platform, which is driving revenue growth. 3. **New Business Models and Partnerships**: Qualys has introduced new business models, such as partnerships with cyber insurance companies that offer discounts on premiums for Qualys ETM customers based on lower TruRisk scores. These partnerships are enhancing the value proposition for Qualys' customers and driving additional revenue streams. 4. **Operational Efficiency and Cost Management**: Despite rising expenses, Qualys has managed to maintain profitability by optimizing operational efficiencies and managing costs effectively. This is evident in the company's ability to consolidate security stacks and streamline security operations for customers. In summary, Qualys' growth in operating profit can be attributed to strategic product expansions, increased customer adoption, new business models, and operational efficiency. These factors have collectively contributed to the company's financial growth despite rising expenses.