Qualys, Inc. has recently released its 10-K report, providing a detailed look at its financial performance and operations. The company offers cloud-based IT, security, and compliance solutions to enterprises, government entities, and small and medium-sized businesses across various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities. Qualys' integrated suite of solutions enables customers to identify and manage IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, quantify cyber risk exposure, recommend and implement remediation actions, and verify the implementation of such actions.
In the year ended December 31, 2024, Qualys reported total revenues of $607.6 million, representing a 10% increase from the previous year. The growth was driven by increased demand for subscription services, with 69% of the revenue increase coming from existing customers and the remaining 31% from new customers added in 2024. Additionally, 54% of total revenues were direct, and 46% were through partners, with 20% of the revenue increase coming directly and the remaining 80% through partners.
Cost of revenues for the same period amounted to $111.5 million, a 4% increase from the previous year. This increase was primarily due to higher shared cloud platform costs and personnel expenses, including stock-based compensation, driven by additional employees hired to support the company's growth.
Research and development expenses totaled $111.9 million, marking a 1% increase from the prior year. The rise was primarily due to increased personnel costs, including stock-based compensation, driven by increased headcount.
Sales and marketing expenses amounted to $128.3 million, representing a 15% increase from the previous year. The surge was primarily due to higher personnel costs, including stock-based compensation, driven by increased headcount, as well as increased travel and entertainment costs and marketing expenses related to trade shows.
General and administrative expenses stood at $68.7 million, indicating an 11% increase from the prior year. This increase was primarily due to higher personnel costs, including stock-based compensation, and increased professional service fees to support the company's growth and compliance with legal and regulatory requirements.
Following these announcements, the company's shares moved -2.3%, and are now trading at a price of $136.2. For more information, read the company's full 10-K submission here.
