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• Full Year Revenue: $607.6 million, a growth of 10%.

• Adjusted EBITDA Margin: 47% for the full year.

• Net Income: $229 million, a growth of 16%.

• Earnings Per Share (EPS): $6.13 per diluted share, a growth of 16%.

• Free Cash Flow: $231.8 million, representing 30% of revenue.

• Q4 Revenue: $159.2 million, a growth of 10%.

• Channel Revenue Contribution: 48% of total revenues, up from 44% a year ago.

• Gross Retention Rate: Approximately 90%.

• Net Dollar Expansion Rate: 103%.

• Q4 Adjusted EBITDA: $74.2 million, representing a 47% margin.

• Q4 EPS: $1.60.

• Q4 Free Cash Flow: $41.9 million, representing a 26% margin.

• Share Repurchase Program: $343.4 million available after a $200 million increase.

• 2025 Revenue Guidance: $645 million to $657 million, growth of 6% to 8%.

• 2025 EPS Guidance: $5.50 to $5.90.

• 2025 EBITDA Margin Guidance: Low 40s.

• Warning! GuruFocus has detected 2 Warning Sign with VREX.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Qualys Inc (NASDAQ:QLYS) reported a 10% revenue growth for the full year 2024, reaching $607.6 million.

• The company achieved an adjusted EBITDA margin of 47%, demonstrating strong financial discipline.

• Qualys Inc (NASDAQ:QLYS) introduced innovative products like TruRisk Eliminate and TotalAI, enhancing their cybersecurity offerings.

• The company saw a 13% increase in customers spending $500,000 or more, indicating strong customer retention and growth.

• Qualys Inc (NASDAQ:QLYS) expanded its channel partner contributions, with revenues from channel partners growing by 18%.

Negative Points

• The net dollar expansion rate remained flat at 103%, indicating challenges in upselling to existing customers.

• New bookings performance was disappointing in Q4, impacting revenue growth expectations for 2025.

• The departure of Chief Revenue Officer Dino DiMarino may lead to potential disruptions in sales execution.

• Guidance for 2025 indicates a lower revenue growth rate of 6% to 8%, reflecting cautious market conditions.

• The company anticipates a contraction in gross margin by approximately 1% due to investments in data centers.

Q & A Highlights

Q: With Dino's departure, how will you manage sales efforts and balance your time across various responsibilities? A: Sumedh Thakar, President and CEO, stated that he has managed similar transitions before and is prepared to oversee sales efforts. The focus will be on executing the 2025 plan, emphasizing a partner-oriented go-to-market strategy. The leadership team below Dino is strong and committed, which will aid in maintaining momentum.