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Qualys (NASDAQ:QLYS) is a leading cybersecurity platform that offers a cloud security and compliance solution. The company was founded in 1999 and had its IPO in 2012. Since then the stock price has increased by over 938% despite a rocky ride upward for investors. This is a testament to the strategy of holding quality stocks long term and benefiting from the growth in earnings. Qualys recently beat both revenue and earnings estimates for the second quarter and has a long growth runway ahead. In this post I'm going to break down the company's business model, its financials, and valuation, let's dive in.
QLYS data by YChartsSecure Business Model
Qualys is a leading cloud security and compliance platform. The company offers a cloud-native SaaS solution that enables enterprises to consolidate the use of multiple security vendors. For example, an enterprise may use SentinelOne for IT security, Tenable for Compliance, Invicti for Web app security, ServiceNow for asset management, and then Palo Alto networks for cloud/container security. Whereas Qualys covers all these products in one single solution, which lowers cost and reduces platform management overhead.
Single Platform (Qualys)
The Total addressable market across these different security segments is expected to expand by 1.42x by 2025 and reach a staggering $51 billion. Thus if Qualys could capture just 5% of this market ..
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