Core Insights - Qualys, Inc. reported a revenue growth of 10% year-over-year for Q2 2025, with revenues reaching $164.1 million compared to $148.7 million in Q2 2024 [3][6] - The company raised its revenue guidance for the full year 2025 to a range of $656 million to $662 million, reflecting an expected growth of 8% to 9% over 2024 [12] Financial Performance - **Revenue**: Q2 2025 revenues increased by 10% to $164.1 million from $148.7 million in Q2 2024 [3] - **Gross Profit**: GAAP gross profit rose by 11% to $135.2 million, maintaining a gross margin of 82% [4] - **Operating Income**: GAAP operating income increased by 7% to $51.4 million, representing 31% of revenues [5] - **Net Income**: GAAP net income grew by 8% to $47.3 million, or $1.29 per diluted share, consistent with a 29% net income margin [6] - **Adjusted EBITDA**: Adjusted EBITDA increased by 5% to $73.4 million, accounting for 45% of revenues [7] - **Operating Cash Flow**: Operating cash flow decreased by 32% to $33.8 million, representing 21% of revenues [8] Business Highlights - The company launched its inaugural managed Risk Operations Center (mROC) Alliance Partners, enhancing its risk management capabilities [9] - Qualys expanded its TotalAI solution with advanced AI security features, reinforcing its commitment to cybersecurity [16] - The company was recognized as a leader in various cybersecurity categories by KuppingerCole and SC Awards Europe, highlighting its innovative solutions [16] Future Guidance - **Third Quarter 2025 Guidance**: Expected revenues between $164.5 million and $167.5 million, indicating a growth of 7% to 9% year-over-year [11] - **Full Year 2025 Guidance**: Revised revenue expectations to $656 million to $662 million, with GAAP net income per diluted share projected between $4.47 and $4.77 [12]

Core Insights - Qualys has introduced a marketplace of Cyber Risk AI Agents that autonomously enhance Cyber Risk Operations, improving risk posture and reducing operational costs [1][2][3] Group 1: Agentic AI Capabilities - The new Agentic AI capabilities provide real-time risk insights across all attack surfaces, prioritized by business impact, and autonomously remediates risks [1][2] - Agentic AI eliminates manual bottlenecks by automating risk-focused workflows, allowing security teams to focus on strategic tasks [2][3] - The integration of Agentic AI into the Enterprise TruRisk Management platform enhances risk-centric automation, enabling faster and more intelligent decision-making [3][7] Group 2: Marketplace Features - The Qualys Marketplace offers pre-built AI agents that continuously discover external attack surfaces and assess risks against industry threats [4] - Adaptive Risk Remediation AI Agents, such as the Microsoft Patch Tuesday Lifecycle Agent, help reduce the mean time to remediation (MTTR) by correlating vulnerabilities and remediation techniques [5] - Organizations can create custom, no-code AI agents tailored to their specific needs, enabling scalable automation for risk management workflows [6] Group 3: Strategic Impact - The integration of Agentic AI allows organizations to transition from reactive responses to proactive risk reduction, enhancing overall cybersecurity posture [3][7] - Qualys aims to empower Chief Information Security Officers (CISOs) with intelligent AI agents that perform autonomous analysis and take decisive actions to reduce risk [7] - The new AI features are currently available for preview at Black Hat U.S., indicating a push towards innovative risk management solutions [8]

Core Insights - Qualys, Inc. (QLYS) is set to report its second-quarter 2025 earnings on August 5, with expected revenues between $159.7 million and $162.7 million, reflecting an 8.4% increase from the previous year's $148.7 million [1][9] - The company anticipates non-GAAP earnings per share (EPS) in the range of $1.40 to $1.50, with the consensus estimate remaining at $1.47, indicating a 3.3% decline from last year's $1.52 [2][9] - Qualys has a strong track record of exceeding earnings estimates, achieving an average surprise of 16.6% over the last four quarters [2] Revenue Drivers - The demand for security and networking products is expected to boost Qualys' performance, driven by the hybrid working trend and accelerated digital transformations [3] - Qualys' subscription-based business model provides stability and is projected to support durable top-line growth, maintaining strong cash flow and profitability [4] - The company has successfully closed several six-figure deals, which is likely to continue contributing positively to its revenue [5] Potential Challenges - The global economic slowdown and geopolitical issues have led enterprises to delay large IT spending, which may negatively impact Qualys' financial performance [6] - Customer transitions from Qualys to Microsoft Defender and TotalCloud CNAPP could also affect the company's top-line results [6] Earnings Prediction Model - The Zacks model indicates that Qualys does not have a definitive prediction for an earnings beat this season, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [7]

Core Insights - Qualys, Inc. will report its financial results for Q2 2025 on August 5, 2025, after market close [1] - A conference call and live webcast will be held on the same day at 5:00 p.m. Eastern Time to discuss the financial results [2] Company Overview - Qualys is a leading provider of cloud-based security, compliance, and IT solutions with over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100 [3] - The company offers a platform that automates security and compliance solutions, aiming for improved agility, business outcomes, and cost savings [3] Product Offering - The Qualys Enterprise TruRisk Platform utilizes a single agent for continuous security intelligence and automates vulnerability detection, compliance, and protection across various IT environments [4] - Qualys has established strategic partnerships with major cloud service providers like Amazon Web Services, Google Cloud Platform, and Microsoft Azure, enhancing its vulnerability management capabilities [4]

Industry Overview - The AI infrastructure space is experiencing significant growth, with fears related to DeepSeek being overblown. Confidence among market participants has increased due to potential trade deals, expected rate cuts by the Fed, and reduced recession worries in the U.S. economy [1] - The AI sector is supported by a bullish demand scenario, with major companies planning to invest $325 billion in AI infrastructure by 2025, representing a 46% year-over-year increase in capital spending [4] Investment Recommendations - Five mid-cap AI infrastructure stocks are recommended for investment, having outperformed the S&P 500 in the past three months and offering deep discounted value for long-term growth. The stocks include UiPath Inc. (PATH), Five9 Inc. (FIVN), C3.ai Inc. (AI), Qualys Inc. (QLYS), and Fastly Inc. (FSLY) [2][3] Company Insights UiPath Inc. (PATH) - UiPath provides an end-to-end automation platform with a focus on robotic process automation solutions. The company has introduced new generative AI features to enhance its automation capabilities [8][10] - Expected revenue and earnings growth rates for UiPath are 8.5% and 5.7%, respectively, for the current year, with a P/E ratio of 23.9X compared to the industry average of 29.7X [11] Five9 Inc. (FIVN) - Five9 offers intelligent cloud software for contact centers, benefiting from the growing adoption of AI tools. The company recently launched its Intelligent CX Platform powered by Five9 Genius AI [12][14] - Expected revenue and earnings growth rates for Five9 are 9.6% and 11.7%, respectively, for the current year, with a P/E ratio of 10.1X compared to the industry average of 29.7X [15] C3.ai Inc. (AI) - C3.ai specializes in enterprise AI applications and aims to deepen its alignment with major cloud providers and government institutions. The company focuses on deploying actionable AI solutions [16][17] - Expected revenue and earnings growth rates for C3.ai are 20.1% and 9.8%, respectively, for the current year, but it has yet to generate profit, with an industry P/E of 20.2X [18] Qualys Inc. (QLYS) - Qualys is experiencing increased demand for cloud-based cybersecurity solutions, supported by strategic acquisitions that enhance its threat detection capabilities [19][21] - Expected revenue and earnings growth rates for Qualys are 7.3% and 0.7%, respectively, for the current year, with a P/E ratio of 8.8X compared to the industry average of 11.6X [22] Fastly Inc. (FSLY) - Fastly provides infrastructure software for cloud computing and has introduced the Fastly AI Accelerator to optimize generative AI applications [23][24] - Expected revenue and earnings growth rates for Fastly are 8.6% and 25%, respectively, for 2025, but it has yet to generate profit, with an industry P/E of 29.7X [25]

Company Overview - Palo Alto Networks (PANW) shares have increased by approximately 10.2% over the past month, outperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the catalysts affecting the stock [1] Earnings Estimates - Estimates for Palo Alto Networks have trended upward in the past month, indicating positive sentiment among analysts [2][4] VGM Scores - Palo Alto Networks has an average Growth Score of C, a Momentum Score of F, and a Value Score of F, resulting in an overall VGM Score of F, placing it in the lowest quintile for investment strategies [3] Outlook - The upward trend in estimates suggests a promising outlook for Palo Alto Networks, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4] Industry Comparison - Palo Alto Networks is part of the Zacks Security industry, where another player, Qualys (QLYS), has seen a 1% gain over the past month [5] - Qualys reported revenues of $159.9 million for the last quarter, reflecting a year-over-year increase of 9.7%, with EPS rising from $1.45 to $1.67 [5] - For the current quarter, Qualys is expected to report earnings of $1.47 per share, a decrease of 3.3% from the previous year, with a Zacks Rank of 1 (Strong Buy) [6]

Core Insights - Qualys, Inc. has won two prestigious awards at the 2025 SC Awards Europe, with Qualys TotalCloud recognized as the Best Cloud Security Solution and Qualys VMDR awarded the Best Vulnerability Management Solution for the third consecutive year [1][2][5] Group 1: Awards and Recognition - The SC Awards Europe are noted as the longest-running and most prestigious cybersecurity competition, celebrating top innovators and solutions in the industry [2] - Qualys VMDR was praised by judges for being a strong, affordable, and holistic solution adaptable to both SME and enterprise use cases [3] - Qualys TotalCloud was recognized for its comprehensive protection, cost efficiency, and effective risk management across diverse environments [4] Group 2: Customer Testimonials - A customer from Amazon reported a significant ROI of approximately 20-30% from using Qualys VMDR, highlighting time and cost savings through automated patching and compliance tracking [4] - A UBS Financial Cyber Security Specialist emphasized the effectiveness of Qualys TotalCloud in improving security and managing risks, noting the ability to customize policies and track cloud assets [4] Group 3: Company Commitment and Strategy - Qualys emphasizes a customer-first approach that enables organizations to assess, prioritize, and remediate cyber risks rather than merely detecting them [5] - The company is dedicated to extending risk management programs from code to cloud, addressing evolving threats in cloud and container environments [5] Group 4: Company Overview - Qualys, Inc. is a leading provider of cloud-based security, compliance, and IT solutions, serving over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100 [6][7] - The Qualys Enterprise TruRisk Platform automates vulnerability detection, compliance, and protection across various IT environments, including on-premises, cloud, and mobile devices [8]

Core Insights - Qualys, Inc. has opened a new office in Washington, D.C. to expand its support for the growing public sector customer base amid escalating cyber threats and the need for operational efficiency [1][4][5] Industry Context - Government agencies are currently facing challenges such as shrinking budgets, limited resources, and an increasing frequency and sophistication of cyberattacks, which heightens the pressure on teams responsible for protecting sensitive data and critical infrastructure [2] Company Strategy - To address these challenges, public sector organizations are transitioning from reactive defense to proactive risk management, with Qualys leading this shift through the introduction of the Risk Operations Center (ROC) model. This model allows agencies to unify visibility, prioritize significant threats, and automate responses, thereby enhancing cyber resilience and operational efficiency [3] Commitment to Public Sector - The expansion of Qualys' operations is a continuation of its commitment to serving public sector agencies, as evidenced by its support for numerous federal entities and its progress towards achieving FedRAMP High Authorization for its cloud platform, which aligns with the stringent security and compliance requirements of government customers [4] Leadership Perspective - The CEO of Qualys emphasized that the new office represents a strategic investment in the federal space, aiming to provide public sector agencies with efficient and powerful solutions to mitigate cyber risks [5] Product Offering - Qualys offers the Enterprise TruRisk Platform, which utilizes a single agent to deliver critical security intelligence and automate vulnerability detection, compliance, and protection across various IT environments, including on-premises, cloud, and mobile devices [6]

Core Insights - Zscaler (ZS) and Qualys (QLYS) are significant players in the cybersecurity sector, both competing in the vulnerability management space [1][2] - The cybersecurity market is expected to grow at a CAGR of 12.63% from 2025 to 2030, driven by increasing cyberattacks [2] Zscaler Overview - Zscaler provides a wide range of enterprise network security solutions, including web security, antivirus, and vulnerability management [4] - The company integrates over 150 data sources for unified vulnerability management, enhancing automation in risk mitigation [5] - Zscaler is focusing on privileged access security due to digital transformation trends and has a diverse industry presence, which helps mitigate macroeconomic risks [6] - The integration of AI in Zscaler's offerings enhances its capabilities in threat detection and mitigation [7] - However, rising sales and marketing expenses, along with increased R&D investment, are leading to margin compression, with fiscal 2025 earnings projected at $3.18 per share, a decline of 0.31% year-over-year [8][10] Qualys Overview - Qualys is a leader in Vulnerability Management, Detection and Response (VMDR) solutions, with a growing customer base and product enhancements [11] - The company has a strong channel partner program that accelerates revenue growth, particularly through cloud-based security solutions [12] - Qualys reported a 16% year-over-year growth in international revenue, indicating successful organic expansion [13] - The total addressable market for Qualys is projected to reach $72 billion by 2027, growing at approximately 13% annually [14] - Fiscal 2025 revenues for Qualys are estimated at $652.2 million, reflecting a year-over-year increase of 7.34%, with earnings projected at $6.17 per share, a growth of 0.65% [15] Stock Performance and Valuation - Year-to-date, Zscaler shares have returned 68%, while Qualys shares have returned 1.2% [17] - Zscaler trades at a forward sales multiple of 15.21X, above the industry average of 14.77X, while Qualys trades at a lower multiple of 7.69X [19] - Qualys is currently rated as a Zacks Rank 1 (Strong Buy), making it a more attractive investment compared to Zscaler, which holds a Zacks Rank 3 (Hold) [20]

Industry Overview - The digital economy has elevated cybersecurity from a background IT concern to a top priority for businesses, as they face increasing cyber threats such as ransomware, data breaches, and phishing attacks [1] - The global cybersecurity market is projected to grow from $193.73 billion in 2024 to $562.72 billion by 2032, reflecting a strong CAGR of 14.3%, driven by the complexity of IT systems, tighter regulations, and the need to protect sensitive data [2] Technological Advancements - Traditional security tools are becoming inadequate against smarter and faster cyberattacks, leading to a shift towards artificial intelligence (AI) for proactive threat detection and response [3] - AI is being integrated into cybersecurity solutions to analyze large volumes of data, enabling companies to automate detection and response processes [3] Company Highlights - **CyberArk Software (CYBR)**: Focuses on identity security solutions, leveraging AI to enhance its leadership in the identity security space with innovations like the Secure AI Agent solution [6][8] - **Qualys (QLYS)**: Specializes in vulnerability management and cloud security, enhancing its AI capabilities to improve threat detection and remediation [9][10] - **Okta (OKTA)**: Concentrates on identity and access management, ramping up AI capabilities to address the complexities of digital identities, with innovations like Identity Threat Protection with Okta AI [12][13] - **A10 Networks (ATEN)**: Advances its AI-driven cybersecurity strategy through acquisitions and scalable solutions, positioning itself for growth in AI data center deployments [15][16][17] Market Positioning - CyberArk's unified platform offers critical capabilities for identity security, enhancing its market relevance and customer value proposition [7][8] - Qualys' AI-powered platform is expected to drive customer adoption and long-term revenue growth [11] - Okta's growing customer base, particularly among Fortune 500 clients, positions it as a compelling long-term investment [14] - A10 Networks is well-placed to benefit from the intersection of AI and cybersecurity, supported by strong margins and disciplined capital allocation [17]