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]

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]