Tech Sector Performance - The technology sector delivered a stellar performance in 2024, with the Nasdaq Composite Index soaring 28.6%, outperforming the S&P 500's 23.3% rise and the Dow Jones Industrial Average's 12.9% gain [2] - The tech boom was fueled by the widespread adoption of artificial intelligence (AI), high-performance computing, and cloud technologies, with businesses embracing generative AI and advanced analytics, pushing semiconductor demand to new heights [3] - Macroeconomic tailwinds, including Federal Reserve interest rate cuts and easing inflation, boosted investor confidence in growth-focused tech stocks, while stabilized supply chains revitalized hardware production [4] Bargain Tech Stocks - Despite the tech sector's rally, some fundamentally strong companies remained underappreciated or experienced significant declines, offering compelling investment opportunities for 2025 [5] - Five9, Inc, Qualys, Inc, Zscaler, Inc, and VTEX are among the stocks that were overlooked during last year's tech rally, with strong fundamentals and solid growth prospects [6] - These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank 1 (Strong Buy) or 2 (Buy), indicating solid investment opportunities [7] Company Highlights - Five9 provides cloud software for contact centers, with products like workforce management and AI-powered solutions, and its stock plunged 48.4% in 2024, underperforming the Zacks Internet – Software industry's rise of 31.4% [8][9] - Qualys offers cloud security and compliance solutions, with its stock tanking 28.6% in 2024, underperforming the Zacks Security industry's decline of 18.6%, but is poised for a strong recovery in 2025 due to surging demand for security products [10][11] - Zscaler provides enterprise network security services, with its stock plunging 18.5% in 2024, underperforming the Zacks Internet – Services industry's jump of 31.1%, but is well-positioned to benefit from rising demand for cybersecurity solutions [12][13] - VTEX offers a SaaS digital commerce platform, with its stock plunging 14.3% in 2024, underperforming the Zacks Internet – Software industry's growth of 31.4%, but is expected to grow in 2025 due to its robust platform and expansion in Latin America and global markets [14][15] Future Outlook - The tech sector remains a powerhouse, with 2025 promising greater opportunities in AI, cybersecurity, and cloud technologies, making stocks like Five9, Qualys, Zscaler, and VTEX attractive for investors [18]

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The Zacks Security industry is experiencing robust demand for cybersecurity products, driven by the increasing need for secure networks and cloud-based applications, especially with the rise of hybrid work environments. This surge in demand is largely due to a significant increase in data breaches, prompting companies to seek comprehensive IT security solutions. The growing need for privileged access security, fueled by digital transformation and cloud migration strategies, is further boosting the demand fo ...

Qualys (QLYS) shares have gained 28.1% in the past month, outperforming the Zacks Security industry and the S&P 500 index’s return of 8.8% and 3%, respectively. The stock also outperformed the Zacks Computer and Technology sector’s decline of 0.1% in the same time frame. The outperformance reflects investors' confidence in Qualys’ robust portfolio, solid customer retention ability, large partner base and strong financials.Qualys Grows on the Back of Innovative PortfolioQualys has increased the depth of its ...

I last wrote about Qualys (NASDAQ: QLYS ) stock on September 17, giving it a Buy rating. Since then, it has gained over 23% due to a strong Q3 earnings report and news that the company is exploringI objectively search for undervalued stocks of any size across a wide variety of industries using quantitative methods that I've thoroughly backtested for success. I believe the numbers are more important than the story (most of the time), as they tend to paint a more realistic picture of the company’s prospects. ...

Qualys, Inc. QLYS reported better-than-expected third-quarter financial results and raised its FY24 guidance on Tuesday.Qualys reported quarterly earnings of $1.56 per share which beat the analyst consensus estimate of $1.33 per share. The company reported quarterly sales of $153.87 million which beat the analyst consensus estimate of $150.70 million.“Q3 was another strong quarter of rapid innovation for Qualys, reflecting our ongoing commitment to technology leadership, cybersecurity transformation, and su ...

Qualys (QLYS) reported third-quarter 2024 non-GAAP earnings of $1.56 per share, which surpassed the Zacks Consensus Estimate of $1.33 and came above management’s guidance of $1.28-$1.36.The bottom line also witnessed a robust improvement from the year-ago quarter’s earnings of $1.51. The robust year-over-year growth was primarily driven by higher revenues, improved efficiency and increased financial income.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Qualys’ third-quarter revenues ...

Qualys (QLYS) came out with quarterly earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.29%. A quarter ago, it was expected that this maker of security-analysis software would post earnings of $1.31 per share when it actually produced earnings of $1.52, delivering a surprise of 16.03%.Over the last four qua ...

Revenue Performance - Revenues for the three months ended September 30, 2024, increased by $11.9 million (8%) compared to the same period in 2023, driven by increased demand for subscription services [116]. - Of the total revenue increase, 93% came from existing customers prior to July 1, 2024, while 7% was from new customers added in the same period [116]. - For the nine months ended September 30, 2024, total revenues reached $448.4 million, an increase of $38.5 million (9%) from $409.9 million in the same period of 2023 [116]. - In the three months ended September 30, 2024, 53% of total revenue was generated from direct customers, while 47% came from partners [116]. - Approximately 59% of revenues for the nine months ended September 30, 2024, were derived from customers in the United States [103]. - Revenues increased by $38.5 million for the nine months ended September 30, 2024, compared to the same period in 2023, with 78% from existing customers and 22% from new customers [117]. Expenses and Profitability - Operating expenses for the three months ended September 30, 2024, were 52% of revenues, compared to 50% in the same period of 2023 [114]. - The gross profit margin for the three months ended September 30, 2024, was 81%, consistent with the same period in 2023 [114]. - The income tax provision for the three months ended September 30, 2024, was 4% of income before taxes, compared to 1% in the same period of 2023 [114]. - Cost of revenues increased by $2.1 million for the three months ended September 30, 2024, primarily due to shared cloud platform costs and personnel costs [119]. - Research and development expenses increased by $1.1 million for the three months ended September 30, 2024, mainly due to increased headcount [123]. - Sales and marketing expenses rose by $4.8 million for the three months ended September 30, 2024, driven by personnel costs and increased travel expenses [125]. - General and administrative expenses increased by $2.5 million for the three months ended September 30, 2024, primarily due to higher personnel costs and software expenses [127]. - Net income for the three months ended September 30, 2024, was $46,212 thousand, a slight decrease from $46,515 thousand in the same period of 2023, representing a net income margin of 30% compared to 33% in 2023 [141]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $208,647 thousand, up from $193,300 thousand in 2023, maintaining an adjusted EBITDA margin of 47% [141]. Cash Flow and Investments - Cash and cash equivalents, along with marketable securities, totaled $573.0 million as of September 30, 2024, including $122.4 million held outside the United States [142]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $196,372 thousand, compared to $210,766 thousand in 2023 [142]. - The company used $59,509 thousand in investing activities during the nine months ended September 30, 2024, compared to $47,499 thousand in 2023 [144]. - Share repurchases amounted to $97.2 million during the nine months ended September 30, 2024, down from $147.7 million in the same period of 2023 [145]. - The company has $185.7 million remaining under its share repurchase program, which has a total authorization of $1.2 billion [149]. - The company generated $180.4 million of cash from net income adjusted for non-cash items during the nine months ended September 30, 2024, compared to $168.4 million in 2023 [143]. Market Outlook and Challenges - The company expects to continue investing in research and development to enhance existing solutions and develop new capabilities, which will likely increase R&D expenses [109]. - The company continues to face macroeconomic challenges, including inflationary pressures and high interest rates, which could impact future business performance [104]. - The company expects revenue growth from new and existing customers to continue, driven by strong market demand [118]. - Net dollar expansion rates were 103% and 106% as of September 30, 2024, and September 30, 2023, respectively [136]. Financial Instruments and Obligations - Fixed operating lease payment obligations were $56.8 million as of September 30, 2024, with $13.6 million expected to be paid within the next 12 months [147]. - As of September 30, 2024, the company had designated cash flow hedge forward contracts with notional amounts of €46.4 million, £18.0 million, and Rs.4,273.0 million to mitigate foreign currency risks [153]. - Total other income, net increased by $2.9 million for the three months ended September 30, 2024, mainly from increased interest income and foreign currency gains [129]. - Income tax provision increased by $4.6 million for the three months ended September 30, 2024, due to higher pretax income and decreased excess tax benefits [131].

Revenue Growth of 8% Year-Over-Year GAAP EPS: $1.24; Non-GAAP EPS: $1.56Raises 2024 Revenue Guidance to $602.9-$605.9 millionRaises 2024 GAAP EPS Guidance to $4.31-$4.41Raises 2024 Non-GAAP EPS Guidance to $5.81-$5.91FOSTER CITY, Calif., Nov. 5, 2024 /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the third quarter ended September 30, 2024. For the quarter, the Company reported revenues of ...