Qualys(US:QLYS) ZACKS·2025-05-07 12:20Core Insights - Qualys, Inc. (QLYS) shares rose 4% in after-hours trading following better-than-expected Q1 2025 results, with non-GAAP earnings of $1.67 per share, exceeding both the Zacks Consensus Estimate of $1.46 and management's guidance of $1.40-$1.50 [1][2] Financial Performance - Q1 revenues increased by 10% year-over-year to $159.9 million, surpassing the Zacks Consensus Estimate of $157.1 million, driven by a strong partner ecosystem [2] - Non-GAAP gross profit rose 10% year-over-year to $133.7 million, with a gross margin improvement of 100 basis points to 84% [5] - Non-GAAP operating income grew 10% to $71.2 million, with an operating margin improvement of 100 basis points to 45% [5] - Adjusted EBITDA increased by 8% to $74.8 million, maintaining an adjusted EBITDA margin of 47% [5] Revenue Breakdown - Sales from channel partners grew by 19%, while direct sales saw a modest 2% increase, with channel partners contributing 49% to total revenues [3] - U.S. sales grew by 6%, accounting for approximately 57% of total revenues, while international sales increased by 16%, contributing the remaining 43% [4] Cash Flow and Balance Sheet - As of March 31, 2025, Qualys had cash and cash equivalents of approximately $640 million, up from $575 million a year ago [6] - The company generated an operating cash flow of $109.6 million and free cash flow of $107.6 million during the quarter [6] - Qualys repurchased stocks worth $39.7 million, with $303.8 million remaining under the share repurchase program [6] Guidance Updates - Following the strong Q1 performance, Qualys raised its full-year 2025 revenue guidance to a range of $648 million to $657 million, reflecting a year-over-year improvement of 7-8% [7] - The company now forecasts non-GAAP earnings for 2025 to be in the range of $6.00-$6.30 per share, up from the previous range of $5.50-$5.90 [8] - For Q2, Qualys expects revenues between $159.7 million and $162.7 million, indicating year-over-year growth of 7-9% [8][9]