Early this month, cloud-based security and compliance solutions provider Qualys reported results for its second quarter that beat estimates. It also raised its outlook for the year.

Qualys’ Financials

In the recent second quarter results, Qualys reported revenue of $68.2 million, up 23%. GAAP net income was $10.3 million, or $0.24 per diluted share, compared to $7.2 million, or $0.18 per diluted share a year ago. Non-GAAP net income was $16.4 million, or $0.39 per diluted share. Analysts expected earnings of $0.34 per share on revenue of $67.1 million.

During the quarter, the percentage of enterprise customers with three or more Qualys solutions rose to 37%, up from 28% a year ago. The percentage of enterprise customers with four or more Qualys solutions rose to 19% this quarter, up from 11% a year ago. The average deal size grew 19% in the quarter. New products released since 2015 contributed about 15% of total bookings in the quarter, up from 9% in Q2 2017.

Adjusted EBITDA was $26.7 million, which translates to a 39% margin as compared to 37% a year ago.

For the third quarter, Qualys expects revenue in the range of $70.9 million to $71.5 million, representing 19% to 20% growth. It expects GAAP net income per diluted share in the range of $0.20 to $0.23 and non-GAAP net income per diluted share in the range of $0.37 to $0.39.

The company raised its guidance for the full year 2018 to be in the range of $278 million to $279.2 million, or 20% to 21% growth, up from the previous guidance range of $276.8 million to $278.5 million. GAAP net income per diluted share is now expected to be in the range of $0.84 to $0.88, up from the previous guidance range of $0.74 to $0.79. Non-GAAP net income per diluted share is expected to be in the range of $1.46 to $1.50, up from the previous guidance range of $1.43 to $1.48. Analysts expect earnings of $1.46 a share on revenue of $278.1 million.

Qualys’ Offerings

During the quarter, Qualys added several new customers to its client list including Atrium Health, Danone, Government of the District of Columbia, Hexion, ManpowerGroup, Philips Lighting, Room & Board, Southern Company, TE Connectivity, and Zscaler.