This Highly Profitable Cybersecurity Stock Could Be a Huge Winner
Despite better-than-expected second-quarter results and raised guidance, Qualys' (NASDAQ: QLYS) full-year revenue growth will likely keep decelerating in 2020. However, the cybersecurity specialist is making inroads on its efforts to reverse that negative trend and thrive over the next several years. Here's why.
Qualys provides cloud security, compliance, and related services. It's vulnerability management legacy activity consists of detecting and responding to security risks such as misconfigurations and unsafe software. That 20-year-old business remains essential. A survey published by ServiceNow indicates 60% of cybersecurity breach victims over the past two years didn't apply an existing patch to a known vulnerability -- a situation that Qualys' solutions remediate.
Over the last several years, the company has been leveraging its platform to try and encourage additional services to clients and grow its total addressable market from $12.1 billion in 2016 to an estimated $21.3 billion by 2021, according to management. At the end of 2019, it launched 20 cybersecurity products that cover certificate management, cloud-based security capabilities, and more. That comprehensive portfolio allows Qualys to cross-sell its products by offering its customers the possibility to implement several security features with one integrated solution.
Source Fool.com
