TICKER QLYS
ISIN US74758T3032
Market cap. USD
4,872,943,665
Shs outstanding 36,095,879
Qualys, Inc. provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally. The company offers Qualys Cloud Apps, which includes Vulnerability Management; Vulnerability Management, Detection and Response; Threat Protection; Continuous Monitoring; Patch Management; Multi-Vector Endpoint Detection and Response; Certificate Assessment; SaaS Detection and Response; Secure Enterprise Mobility; Policy Compliance; Security Configuration Assessment; PCI Compliance; File Integrity Monitoring; Security Assessment Questionnaire; Out of-Band Configuration Assessment; Web Application Scanning; Web Application Firewall; Global Asset Inventory; Cybersecurity Asset Management; Certificate Inventory; Cloud Inventory; Cloud Security Assessment; and Container Security. Its integrated suite of IT, security, and compliance solutions delivered on its Qualys Cloud Platform enables customers to identify and manage IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend and implement remediation actions, and verify the implementation of such actions. The company also provides asset tagging and management, reporting and dashboards, questionnaires and collaboration, remediation and workflow, big data correlation and analytics engine, and alerts and notifications, which enable integrated workflows, management and real-time analysis, and reporting across IT, security, and compliance solutions. The company offers its solutions through its sales teams, as well as through its network of channel partners, such as security consulting organizations, managed service providers, resellers, and consulting firms. It serves enterprises, government entities, and small and medium-sized businesses in various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities. The company was incorporated in 1999 and is headquartered in Foster City, California.

Strategy:

Return at exit: -7.2%
Performance lags amid valuation concerns
• Rotated out due to weaker relative metrics compared to other opportunities in our ML portfolio. • Stock performance has lagged with negative returns across multiple timeframes: -4.8% (1 week), -7.2% (1 month), and -5.2% (1 year), despite the company beating recent earnings estimates. • Valuation appears stretched at 25.7x P/E and 9.0x price-to-book ratio, particularly given modest revenue growth of ~10%. • Volatility concerns stem from recent executive turnover (Chief Revenue Officer departure), ongoing shareholder litigation investigation, and reported Microsoft partnership termination. • Company maintains solid fundamentals with impressive 82.5% gross margins, strong cash position, and raised guidance for FY2025 – suggesting long-term potential remains intact. • This change reflects portfolio rotation, not a sell signal.