QLYS

Qualys Inc

TMT


Presented:11/10/2023
Price:$171.72
Cap:$6.32B
Current Price:$126.03
Cap:$4.64B

Presented

Date11/10/2023
Price$171.72
Market Cap$6.32B
Ent Value$5.32B
P/E Ratio46.46x
Book Value$8.78
Div Yield0%
Shares O/S36.79M
Ave Daily Vol331,110
Short Int9.79%

Current

Price$126.03
Market Cap$4.64B
Qualys, Inc. engages in the provision of cloud security and compliance solutions. Its products enable organizations to identify security risks to information technology infrastructures, help protect information technology systems and applications from cyber attacks, and achieve compliance with internal policies and external regulations. The firm also offers solutions through a software-as-a-service model, primarily with renewable annual subscriptions. The company was founded on December 30, 1999 and is headquartered in Foster City, CA.

Publicly traded companies mentioned herein: Crowdstrike Holdings Inc (CRWD), Microsoft Corp (MSFT), Rapid7 Inc (RPD), Qualys Inc (QLYS)

Highlights

The presenter is short shares of Qualys Inc (QLYS), which provides cloud-based IT, security, and compliance solutions in the US and internationally. He views the Street’s 2024 EPS forecast of $6.59 as too high based on the unwinding of two main tailwinds (strong cross-sale attach rates during the first VMDR renewal cycle, limited need for S&M spend in 2023), and believes management guiding 2024 EPS under expectations could catalyze a trade down from the current $170 share price to the mid-$130 range. He gains incremental confidence in the prospects for valuation compression from the worsening competitive landscape, which could begin impacting pricing in the next 12 – 18 months.

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Idea Discussion

Commentor 1 - 2 weeks ago

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