Qualys 2025 Q1 Earnings Beats Expectations as Net Income Surges 20%

Qualys (QLYS) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Qualys surpassed analysts’ expectations with earnings of $1.67 per share, beating the Zacks Consensus Estimate of $1.46 per share. The company also exceeded revenue estimates, reporting $159.9 million compared to the projected $157.1 million. Additionally, Qualys raised its revenue guidance for fiscal 2025 to a range of $648 million to $657 million, signaling confidence in continued growth. This positive adjustment reflects the company's strategic focus on expanding its cybersecurity risk management solutions.

Revenue
The total revenue of Qualys increased by 9.7% to $159.90 million in 2025 Q1, up from $145.81 million in 2024 Q1.

Earnings/Net Income
Qualys's EPS rose 20.4% to $1.30 in 2025 Q1 from $1.08 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $47.53 million in 2025 Q1, marking 19.6% growth from $39.73 million in 2024 Q1. Remarkably, in 2025 Q1, the company set a new record high for fiscal Q1 net income, the highest in 15 years. This demonstrates solid financial performance and successful strategic initiatives.

Post-Earnings Price Action Review
The strategy of buying Qualys (QLYS) shares after a revenue raise and holding for 30 days resulted in a 0.72% return over the past 5 years, significantly underperforming the benchmark's 83.12% return. This approach proved to be risky, given its low Sharpe ratio of 0.02, indicative of poor risk-adjusted returns. Additionally, the strategy faced a maximum drawdown of -16.93%, highlighting its potential for significant losses. Investors should exercise caution, considering these factors when evaluating the effectiveness of this investment strategy. Despite Qualys' recent revenue and earnings beats, the historical data suggests that simply relying on post-earnings price movements may not yield favorable results compared to broader market indices.

CEO Commentary
"Our Q1 results reflect the success of new product initiatives and demonstrate customer demand for natively-integrated cybersecurity risk management solutions," said Sumedh Thakar, President and CEO of Qualys. He emphasized that the company's cloud-native architecture and rapid innovation engine underpin its leadership in cybersecurity transformation, providing multiple paths for durable long-term growth. Thakar highlighted the advent of a new paradigm in cyber risk management, characterized by real-time data, automation, and AI, positioning Qualys as a foundational risk management platform of the future.

Guidance
Qualys is raising its revenue guidance for fiscal 2025 to a range of $648 million to $657 million. The company emphasizes that this outlook is subject to various important cautionary factors and reflects its expectations based on current information as of May 6, 2025.

Additional News
Qualys has recently announced the launch of its new Managed Risk Operation Center (mROC), which empowers partners to offer comprehensive managed services for cyber risk assessment and mitigation. This initiative aligns with Qualys' strategy to expand its market reach without significant direct sales investment. Additionally, the company has integrated its Container Security solution with ServiceNow, enhancing vulnerability management capabilities with streamlined workflow automation. This integration addresses enterprise security challenges by improving remediation efficiency. Furthermore, Qualys' TotalCloud solution has been recognized by GigaOm as a leader in Cloud Workload Security, validating its robust support for hybrid environments and asset discovery. This third-party recognition strengthens Qualys' competitive positioning in key cybersecurity markets.