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Why Qualys?

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Qualys, Inc. (QLYS)

The cost to the global economy from cybercrimes is projected to reach $6 trillion by 2021,1 making the need for advanced, dynamic security monitoring paramount for companies and government agencies. Of the $15 billion allocated to cybersecurity in the White House's FY 2019 Budget, $8.5 billion is for the Department of Defense.2 As the federal government continues to prioritize and expand upon its data and network protection services, innovative companies like Qualys (QLYS) may be well positioned to expand their revenue through the large and growing funds allocated to this space.

Figure 1: Qualys, Inc. [QLYS]

Market Cap ($M) $2,999
GICS Sector Technology
GICS Industry Software

Source: Bloomberg Finance L.P., as of April 30, 2018.

QLYS provides information technology security risk and compliance management solutions, offering products for vulnerability management, web application scanning and malware detection. Started in 1999, the company has strategic partnerships with dozens of large corporations and is a founding member of the Cloud Security Alliance (CSA). The company's QualysGuard Cloud Platform is a cloud security service offering continuous monitoring, proactively notifying clients when new vulnerabilities appear.

Needham Research cites federal business as a "significant growth opportunity" for QLYS. The company's Cloud Platform became FedRAMP-certified in Q4 2017, enabling it to support federal networks and critical infrastructure according to the White House Executive Order requirements.3 Since the certification's launch in mid-2012, only 101 products have been FedRAMP authorized,4 putting the Qualys Cloud Platform in selective company.

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Other Stock Stories

  • 1 Herjavec Group, "2017 Cybercrime Report", October 18, 2017.
  • 2 WhiteHouse.gov, "Budget of the US Government FY2019".
  • 3 Needham Research, "Qualys, Inc.", April 23, 2018.
  • 4 FedRAMP.gov, as of May 2, 2018.

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