Qualys (QLYS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 8% year-over-year to $148.7 million, with GAAP net income up 24% to $43.8 million and non-GAAP net income at $56.9 million; adjusted EBITDA margin was 47%.

• Platform innovation included launches such as TruRisk Mitigate, TruRisk Isolate, TotalAI, a global MSSP portal, and enhancements to asset management and container security.

• Leadership changes included the Chief Product Officer's departure, with the CEO assuming direct oversight of product and marketing.

• Achieved FedRAMP Moderate certification, with FedRAMP High expected later in 2024, expanding federal sector opportunities.

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

Financial highlights

• Q2 2024 revenues were $148.7 million, up 8% year-over-year; six-month revenues totaled $294.5 million.

• GAAP gross profit for Q2 2024 was $122.3 million, with gross margin at 82%; non-GAAP gross margin reached 84%.

• Adjusted EBITDA was $69.9 million (47% margin), slightly down from 48% a year ago.

• GAAP EPS for Q2 was $1.17; non-GAAP EPS was $1.52; free cash flow for the first half of 2024 was $132.3 million.

• Cash, cash equivalents, and marketable securities totaled $555.3 million as of June 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance lowered to $597.5–$601.5 million (8% growth); Q3 2024 revenue expected at $149.8–$151.8 million (5–7% growth).

• Full-year EBITDA margin expected at 43–44%; free cash flow margin in mid- to high 30s.

• Full-year GAAP EPS raised to $3.85–$4.01; non-GAAP EPS to $5.46–$5.62.

• Capital expenditures for 2024 projected at $12–$16 million.

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