Qualys (QLYS) Q4 2024 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth to $607.6M in 2024, with adjusted EBITDA margin of 47% and net income up 16% to $229M.

• Significant product innovation, including TruRisk Eliminate, TotalAI, TotalCloud 2.0/3.0, and Risk Operations Center, expanded platform capabilities and market relevance.

• Rebranding and platform enhancements positioned the company as a leader in risk analytics and cybersecurity consolidation, serving over 10,000 customers including 72% of the Forbes Global 50.

• Strong customer adoption, with customers spending $500K+ growing 13% year-over-year to 207 in Q4 2024.

• Launched Enterprise TruRisk Platform, providing unified asset inventory, risk prioritization, and orchestrated response across hybrid IT environments.

Financial highlights

• Q4 2024 revenue grew 10% to $159.2M; full-year revenue reached $607.6M; channel revenue rose 18% and now represents 48% of total revenue.

• Full-year free cash flow reached $232M (38% of revenue); Q4 free cash flow was $41.9M (26% margin).

• Adjusted EBITDA for Q4 was $74.2M (47% margin), up from 46% a year ago; full-year Adjusted EBITDA was $282.8M.

• EPS for Q4 was $1.60; full-year EPS was $6.13, up 16% year-over-year.

• International revenue grew 15%, outpacing U.S. growth of 7%; U.S./international mix is 58%/42%.

Outlook and guidance

• 2025 revenue expected between $645M-$657M (6%-8% growth); Q1 2025 revenue guidance is $155.5M-$158.5M (7%-9% growth).

• 2025 EBITDA margin expected in the low 40s, with operating expenses up 18%-20%.

• 2025 EPS guidance is $5.50-$5.90; Q1 2025 EPS expected at $1.40-$1.50.

• Free cash flow margin for 2025 projected in the low to mid-30s; capex planned at $8M-$13M.

• Gross margin expected to contract by ~1% due to data center investments.