Shares in Qualys Inc. rose more than 4% in late trading today after the cybersecurity software provider reported earnings and revenue beats in its fiscal 2025 first quarter and gave revenue guidance ahead of expectations.

For the quarter ended March 31, Qualys reported adjusted earnings per share of $1.67, up from $1.45 per share in the same quarter of 2024, on revenue of $159.9 million, up 10% year-over-year. Both figures were ahead of the $1.46 per share and revenue of $157.1 million expected by analysts.

Qualys’ strong numbers in the quarter were driven by continued growth among large enterprise clients, with the company serving over 10,000 subscription customers, including a majority of the Forbes Global 100 and Fortune 100 companies. Big customers were key, with Qualys increasing its count of customers generating $500,000 or more in annual revenue to 203, up from 192 the previous year, with these customers contributing $258 million in trailing 12-month revenue, a 7% year-over-year increase.

Business highlights in the quarter included strategic product launches aimed at enhancing Qualys’ cybersecurity offerings. February saw the introduction of TotalAppSec, an artificial intelligence-powered application risk management solution that unifies application programming interface security, web application scanning and malware detection.

TotalAppSec gives organizations visibility into their application security posture and allows them to identify, prioritize and remediate vulnerabilities across on-premises, hybrid and multi-cloud environments.

Additionally, Qualys launched the Managed Risk Operation Center, a partner program designed to expand revenue streams by offering a unified managed service that assists clients in identifying, quantifying, assessing and mitigating cyber risks. The program leverages Qualys’ Enterprise TruRisk Management solution to allow partners to deliver comprehensive risk management services to their customers.

“Our Q1 results reflect the success of new product initiatives and demonstrate customer demand for natively integrated cybersecurity risk management solutions,” Chief Executive Sumedh Thakar said in the company’s earnings release. “We believe our cloud-native architecture and rapid innovation engine underpin our leadership in cybersecurity transformation, extend our competitive differentiation and provide multiple paths to drive durable long-term growth.”

For its fiscal second quarter, Qualys expects adjusted earnings per share of $1.40 to $1.50 on revenue of $159.7 million to $162.7 million. At the midpoint, the revenue outlook was ahead of the $160 million forecast by analysts.

For the full year, the company expects adjusted earnings per share of $6 to $6.30 on revenue of $648 million to $657 million. Notably, the forecast was revised up from a previous full-year outlook of $645 million to $657 million.

Image: Qualys