Qualys Reports $159.9 Million Revenue in Q1 2025, Up 10% Year-Over-Year

Qualys, Inc. reported a revenue of $159.9 million for the first quarter of 2025, marking a 10% increase from $145.8 million in the same period of 2024. The company's net income also rose to $47.5 million, or $1.30 per share, compared to $39.7 million, or $1.08 per share, in the prior year. This growth in revenue and profitability is attributed to increased demand for its cloud-based IT, security, and compliance solutions, with 96% of the revenue increase coming from existing customers and 4% from new customers. The company’s gross profit margin improved slightly to 82% from 81% year-over-year.

In terms of operational metrics, Qualys reported a net dollar expansion rate of 103% as of March 31, 2025, down from 104% a year earlier. The company’s customer base continues to grow, with significant contributions from both direct sales and channel partners. For the quarter, 51% of total revenue was generated from direct customers, while 49% came from partners. The company also experienced a 6% increase in its cost of revenues, primarily due to higher personnel costs and expenses related to its shared cloud platform.

Qualys has made strategic investments in its research and development, with expenses rising to $29.2 million from $27.5 million in the previous year. This increase reflects the company's commitment to enhancing its product offerings and maintaining its competitive edge in the market. Additionally, sales and marketing expenses increased by 11% to $32.7 million, driven by higher marketing costs and an expanded sales team. General and administrative expenses also saw a modest rise, reflecting ongoing investments in personnel and professional services.

The company’s balance sheet remains strong, with total assets increasing to $996.5 million as of March 31, 2025, up from $973.5 million at the end of 2024. Cash and cash equivalents rose to $290.7 million, alongside short-term marketable securities of $150.2 million. Qualys continues to prioritize its share repurchase program, having repurchased 292,000 shares for approximately $39.7 million during the quarter, with $303.8 million remaining available for future repurchases.

Looking ahead, Qualys anticipates continued revenue growth driven by both existing and new customers, despite potential macroeconomic challenges such as inflation and reduced IT spending. The company remains focused on expanding its product offerings and enhancing its cloud platform to meet evolving market demands.