Qualys (QLYS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 8% year-over-year to $153.9 million, with GAAP EPS of $1.24 and non-GAAP EPS of $1.56, driven by innovation in risk management and AI security solutions.

• Major customer wins included a large U.S. federal agency and significant upsells in the public sector, reflecting strong momentum in government and regulated industries.

• The platform expanded globally, achieving IRAP Protected assessment in Australia and recognition by Gigaom, Gartner, and Forrester for leadership in risk-based and cloud-native solutions.

• The company targets digital transformation and risk management for enterprises, serving a blue-chip global customer base including 70% of Forbes Global 50.

• Continued investment in R&D, sales, and marketing supports growth and innovation in cloud-based IT, security, and compliance solutions.

Financial highlights

• Q3 2024 revenue was $153.9 million, up 8% year-over-year; LTM Q3 2024 revenue reached $554 million, up 13% year-over-year.

• Adjusted EBITDA for Q3 2024 was $69.7 million (45% margin); LTM Q3 2024 adjusted EBITDA was $209 million (47% margin).

• Free cash flow for Q3 2024 was $57.6 million (37% margin); LTM Q3 2024 free cash flow was $190 million (42% margin).

• Net income for Q3 2024 was $46.2 million; diluted EPS was $1.24 GAAP and $1.56 non-GAAP.

• Aggregate revenues from customers spending $500,000+ annually grew to $247 million LTM Q3 2024, with customer count rising to 200.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $602.9–$605.9 million (9% growth); Q4 revenue expected at $154.5–$157.5 million (7–9% growth).

• Full-year GAAP EPS guidance increased to $4.31–$4.41; non-GAAP EPS guidance raised to $5.81–$5.91; Q4 GAAP EPS expected at $0.84–$0.94 and non-GAAP EPS at $1.28–$1.38.

• EBITDA margin for 2024 projected in the mid-40s, with free cash flow margin in the mid to high 30s.

• Q4 guidance assumes lighter new business and continued deal scrutiny, with no material change in net dollar expansion rate.

• Management expects continued revenue growth from both new and existing customers, supported by strong market demand for cloud-based security and compliance solutions.