Early this month, Qualys (Nasdaq: QLYS), a pioneer and leading provider of cloud-based security and compliance solutions, reported a strong quarter that blew past market expectations.
Qualys' Financials
In the recent first-quarter results, Qualys reported revenue of $64.9 million, up 22%. GAAP net income was $9.1 million, or $0.22 per diluted share, compared to $21.9 million, or $0.56 per diluted share a year ago. Non-GAAP net income was $15 million, or $0.36 per diluted share. Analysts expected earnings of $0.33 per share on revenue of $63.86 million.
Adjusted EBITDA was $24.6 million, which translates to a 38% margin as compared to 32% a year ago. This is one of the highest margins in Security and SaaS industry that includes rivals Veeva, Paycom, Medidata, CyberArk, and Sailpoint.
During the quarter, the percentage of enterprise customers with three or more Qualys solutions rose to 34%, up from 27% a year ago. The percentage of enterprise customers with four or more Qualys solutions rose to 16% this quarter, up from 9% a year ago. The average deal size continued to increase in Q1 growing 17% year-over-year.
The company saw good growth from new products including Cloud Agent and ThreatPROTECT. New products released since 2015 contributed approximately 15% of total bookings in the quarter, up from 8% in Q1 2017.
For the second quarter, Qualys expects revenue in the range of $66.8 million to $67.3 million, representing 21% to 22% growth. It expects GAAP net income per diluted share in the range of $0.11 to $0.13 and non-GAAP net income per diluted share in the range of $0.33 to $0.35.
The company now expects revenues for the full year 2018 to be in the range of $276.8 million to $278.5 million, or 20% to 21% growth, up from the previous guidance range of $275.5 million to $278.5 million. GAAP net income per diluted share is now expected to be in the range of $0.74 to $0.79, up from the previous guidance range of $0.71 to $0.76. Non-GAAP net income per diluted share is expected to be in the range of $1.43 to $1.48, up from the previous guidance range of $1.39 to $1.44.
