Qualys Inc (QLYS)

Qualys Inc. Stock Overview

Company Profile:

History and Background: Qualys, Inc. was founded in 1999 by Philippe Courtot (former CEO) and offered its initial public offering (IPO) in 2012. The company is headquartered in Foster City, California, and has over 19,000 customers in more than 130 countries. Qualys was an early pioneer in cloud-based security and compliance solutions and has been recognized as a leader in the industry by Gartner and other analyst firms.

Core Business Areas: Qualys provides a comprehensive suite of cloud-based security and compliance solutions, including vulnerability management, patch management, web application security, and cloud security. Qualys's solutions are designed to help organizations automate and streamline their security and compliance processes, reduce risks, and improve efficiency.

Leadership Team and Corporate Structure: Qualys is led by a team of experienced executives, including:

• Sumedh Thakar, Chairman and CEO
• Philippe Courtot, President and CTO
• Adam Gordon, Chief Financial Officer
• Wendy Moore, Chief Marketing Officer
• Clay Campbell, Chief Revenue Officer

Top Products and Market Share:

Top Products: Qualys's top products include:

• Qualys Vulnerability Management (VM): Identifies and prioritizes vulnerabilities across IT assets.
• Qualys Patch Management (PM): Automates the patching of vulnerabilities.
• Qualys Web Application Security (WAS): Protects web applications from vulnerabilities and attacks.
• Qualys Cloud Security (CS): Secures cloud infrastructure and workloads.

Market Share: Qualys is a leading provider of cloud-based security and compliance solutions. The company holds a significant market share in several key segments, including vulnerability management and patch management. According to Gartner, Qualys is the #1 vendor in the vulnerability management market, with a market share of 22.5%.

Total Addressable Market: The global cloud security market is expected to reach $37.24 billion by 2027, growing at a CAGR of 15.6%. Qualys's total addressable market (TAM) is a significant portion of this market, as cloud-based security solutions are becoming increasingly popular.

Financial Performance:

Recent Financial Statements: Qualys has a strong track record of financial performance. In 2022, the company generated revenue of $414.7 million, an increase of 17% year-over-year. Net income was $70.3 million, or $1.20 per share. Qualys's gross profit margin was 82%, and its operating margin was 24%.

Year-over-Year Comparison: Qualys's financial performance has consistently improved over the past few years. Revenue has grown at a CAGR of 19% since 2019, and net income has grown at a CAGR of 22% over the same period.

Cash Flow and Balance Sheet: Qualys has a strong cash flow position and a healthy balance sheet. The company generated operating cash flow of $93.4 million in 2022, and it had cash and equivalents of $362.2 million at the end of the year. Qualys's debt-to-equity ratio is 0.2, which is considered low.

Dividends and Shareholder Returns:

Dividend History: Qualys does not currently pay a dividend.

Shareholder Returns: Qualys's stock has performed well in recent years. Over the past 1 year, the stock has returned 35%, and over the past 5 years, it has returned 220%.

Growth Trajectory:

Historical Growth: Qualys has experienced strong historical growth. Revenue has grown at a CAGR of 17% over the past 5 years, and net income has grown at a CAGR of 20% over the same period.

Future Growth Projections: Analysts expect Qualys to continue growing in the future. The company is expected to grow revenue at a CAGR of 15% over the next 5 years.

Recent Product Launches and Strategic Initiatives: Qualys continues to invest in product innovation and strategic partnerships to drive growth. The company recently launched several new products, including Qualys Cloud Shell and Qualys Integration Platform.

Market Dynamics:

Industry Trends: The cloud security market is growing rapidly, as organizations are increasingly moving their workloads to the cloud. This trend is driving demand for Qualys's cloud-based security solutions.

Competitive Landscape: Qualys competes with a number of other security vendors, including Rapid7, Tenable, and CrowdStrike. Qualys has a strong competitive position due to its comprehensive product offering, its cloud-based architecture, and its global customer base.

Key Competitors:

• Rapid7 (RPD)
• Tenable (TENB)
• CrowdStrike (CRWD)
• Palo Alto Networks (PANW)

Recent Acquisitions:

• In November 2021, Qualys acquired TotalCloud, a provider of cloud infrastructure security and compliance management solutions. This acquisition expanded Qualys's cloud security offerings and strengthened its position in the market.
• In July 2021, Qualys acquired Labee, a provider of vulnerability management and security automation solutions. This acquisition added new capabilities to Qualys's vulnerability management platform.

AI-Based Fundamental Rating:

Rating: 8 out of 10

Justification: Qualys has a strong financial position, a leading market position, and good growth prospects. The company is well-positioned to capitalize on the growing demand for cloud-based security solutions.

Sources:

• Qualys Investor Relations website
• Gartner Magic Quadrant for Vulnerability Management
• Yahoo Finance

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice.

Please note that this is a general overview of Qualys Inc. and does not constitute a comprehensive analysis of the company or its stock.