Qualys (QLYS) Q2 Earnings Report Preview: What To Look For

Radek Strnad /
2022/08/07 6:27 am EDT

Cloud security and compliance software provider Qualys (NASDAQ:QLYS) will be reporting results tomorrow afternoon. Here's what investors should know.

Last quarter Qualys reported revenues of $113.4 million, up 17.2% year on year, in line with analyst expectations. It was a mixed quarter for the company,

Is Qualys buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Qualys's revenue to grow 17.8% year on year to $117.5 million, improving on the 12.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.

Qualys Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 0.88%.

Looking at Qualys's peers in the cybersecurity segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Rapid7 delivered top-line growth of 32.4% year on year, beating analyst estimates by 2.02% and Tenable reported revenues up 26.1% year on year, exceeding estimates by 0.66%. Rapid7 traded down 3.0% on the results, and Tenable was down 10.5%. Read our full analysis of Rapid7's results here and Tenable's results here.

There has been positive sentiment among investors in the cybersecurity segment, with the stocks up on average 4.68% over the last month. Qualys is down 4.23% during the same time, and is heading into the earnings with analyst price target of $138.8, compared to share price of $126.5.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.