Companies are increasingly getting concerned about data breaches, especially as they move their data online. However, Qualys Inc (NASDAQ:QLYS) is one of the companies that stand to benefit from the threats of high-profile data breaches such as the one that recently visited health insurer Anthem. Qualys provides cloud security, and the company managed to bag several high profile customers in the latest quarter as fears over cryberattacks spread.
Data breaches have not only increased in the recent times as companies shift to the cloud, but hackers have also identified new soft targets. The development is expected to push up spending on cloud security and the related compliance solutions, which means a huge demand for Qualys Inc (NASDAQ:QLYS)’s services and solutions. That can be better understood by looking at the company’s progress in the latest quarter.
Big names join Qualys’ cloud platform
Qualys added high-profile names such as British American Tobacco PLC (ADR) (NYSEMKT:BTI), Netflix, Inc. (NASDAQ:NFLX) and Halliburton Company (NYSE:HAL) during 4Q. The company also tapped Siemens AG (ADR) (OTCMKTS:SIEGY) and Blue Shield of California during the quarter. These additions not only reveal the aggressive marketing strategy of Qualys, but also how more clients have come to appreciate its cloud security solutions. Bagging big names across different sectors should help Qualys attract more players in those industries.
Why companies are rushing to secure data
There are a number of triggers why companies are rushing to secure their online data. First, companies are trying to pay a premium price for security solutions that can guarantee protection of their confidential business details. The other reason is that restoration of breached systems can be costly. For example Sony Corp (ADR) (NYSE:SNE) recently announced $15 million budget to restore the hacked Sony Pictures system. Companies are also looking for reliable cloud security solutions so that they avoid potential fines that may visit them when customer accounts are hacked.
The panic over increasing trend of high-profile cyberattacks is compelling companies to increase spending on data security, thereby benefiting providers such as Qualys Inc (NASDAQ:QLYS). More business opportunities are expected to come from the health care sector, which hackers seem to have identified as a soft target.
Qualys Inc (NASDAQ:QLYS) earned $0.15 per share in 4Q on revenue of $36.75 million. Both revenue and earnings surpassed the consensus estimates. The company guided for revenue in the range of $37.6-38.1 million and EPS of $0.10-$0.12 for the current quarter.