Qualys Set to Report Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - Qualys (QLYS) is expected to report its fourth-quarter 2024 earnings on February 6, 2025, with anticipated revenue growth and a slight decline in earnings per share compared to the previous year [1][3]. Revenue Expectations - For the fourth quarter, Qualys anticipates revenues between $154.5 million and $157.5 million, with a consensus estimate of $156.1 million, reflecting an 8% increase from $144.57 million in the same quarter last year [2]. Earnings Projections - The company expects non-GAAP earnings per share to be between $1.28 and $1.38, with the consensus mark remaining at $1.35 per share, indicating a 3.6% decline from last year's $1.40 [3]. Market Dynamics - The performance in the fourth quarter is likely supported by increased demand for security and networking products due to the hybrid working trend and accelerated digital transformations [4]. - Qualys' subscription-based business model has provided stability in revenue, allowing for durable growth and strong cash flow [5]. Customer Engagement - The company's ability to attract new customers and retain existing ones has been strong, with a significant number of six-figure deals closed in recent quarters, likely contributing to revenue growth [6]. Economic Challenges - However, the overall financial performance may be impacted by enterprises postponing large IT spending due to a weakening global economy and customer transitions from Qualys on Microsoft Defender to TotalCloud CNAPP [7]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Qualys, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [8].