FOSTER CITY, Calif., October 15, 2019 – Shares of Qualys Inc. (NASDAQ: QLYS) gained 0.50% to $78.09. The stock traded total volume of 137.662K shares lower than the average volume of 335.11K shares.
For the quarter, Qualys, Inc. (NASDAQ: QLYS) reported revenues of $75.30M, net income under United States Generally Accepted Accounting Principles (“GAAP”) of $13.30M, non-GAAP net income of $20.30M, adjusted EBITDA of $30.60M, GAAP earnings per diluted share of $0.32, and non-GAAP earnings per diluted share of $0.49.
First Quarter 2019 Financial Highlights:
Gross Profit: GAAP gross profit for the first quarter of 2019 increased by 18% to $57.60M compared to $49.00M for the same quarter in 2018. GAAP gross margin percentage was 76% for the first quarter of 2019 compared to 75% for the same quarter in 2018. Non-GAAP gross profit for the first quarter of 2019 increased by 19% to $59.70M compared to $50.20M for the same quarter in 2018. Non-GAAP gross margin percentage was 79% for the first quarter of 2019 compared to 77% for the same quarter in 2018.
Operating Income: GAAP operating income for the first quarter of 2019 increased by 67% to $14.10M compared to $8.40M for the same quarter in 2018. As a percentage of revenues, GAAP operating income was 19% for the first quarter of 2019 compared to 13% for the same quarter in 2018. Non-GAAP operating income for the first quarter of 2019 increased by 33% to $24.20M compared to $18.20M for the same quarter in 2018. As a percentage of revenues, non-GAAP operating income was 32% for the first quarter of 2019 compared to 28% for the same quarter in 2018.
Net Income: GAAP net income for the first quarter of 2019 was $13.30M, or $0.32 per diluted share, compared to $9.10M, or $0.22 per diluted share, for the same quarter in 2018. Non-GAAP net income for the first quarter of 2019 was $20.30M, or $0.49 per diluted share, compared to non-GAAP net income of $15.00M, or $0.36 per diluted share, for the same quarter in 2018.
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2019 increased 24% to $30.60M compared to $24.60M for the same quarter in 2018. As a percentage of revenues, adjusted EBITDA was 41% for the first quarter of 2019 compared to 38% for the same quarter in 2018.
Operating Cash Flow: Operating cash flow for the first quarter of 2019 increased 3% to $44.30M compared to $43.00M for the same quarter in 2018. As a percentage of revenues, operating cash flow was 59% for the first quarter of 2019 compared to 66% for the same quarter in 2018.
Financial Performance Outlook
Second Quarter 2019 Guidance: Management expects revenues for the second quarter of 2019 to be in the range of $78.20M to $78.70M, representing 15% growth over the same quarter in 2018. GAAP net income per diluted share is expected to be in the range of $0.22 to $0.24, which assumes an effective income tax rate of 26%. Non-GAAP net income per diluted share is expected to be in the range of $0.46 to $0.48, which assumes an effective non-GAAP income tax rate of 22%. Second quarter 2019 earnings per share estimates are based on approximately 41.60M weighted average diluted shares outstanding for the quarter.
Full Year 2019 Guidance: Management expects revenues for the full year 2019 to be in the range of $320.50M to $323.00M, representing 15% to 16% growth over 2018. GAAP net income per diluted share is now expected to be in the range of $1.02 to $1.07, up from the previous guidance range of $0.90 to $0.95. This assumes an effective income tax rate of 23%, down from the previous assumption of 26%. Non-GAAP net income per diluted share is now expected to be in the range of $1.89 to $1.94, up from the previous guidance range of $1.84 to $1.89. This assumes an effective non-GAAP income tax rate of 22%. Full year 2019 earnings per share estimates are based on approximately 41.80M weighted average diluted shares outstanding.
QLYS has the market capitalization of $2.94B and its EPS growth ratio for the past five years was 100.00%. The return on assets ratio of the Company was 11.00% while its return on investment ratio stands at 14.50%. Price to sales ratio was 9.81 while 88.20% of the stock was owned by institutional investors.
