Technology

Qualys Announces Third Quarter 2024 Financial Results

Published

13 hours ago

November 5, 2024

Revenue Growth of 8% Year-Over-Year
GAAP EPS: $1.24; Non-GAAP EPS: $1.56
Raises 2024 Revenue Guidance to $602.9–$605.9 million
Raises 2024 GAAP EPS Guidance to $4.31–$4.41
Raises 2024 Non-GAAP EPS Guidance to $5.81–$5.91

FOSTER CITY, Calif., Nov. 5, 2024 /PRNewswire/ — Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the third quarter ended September 30, 2024. For the quarter, the Company reported revenues of $153.9 million, net income under United States Generally Accepted Accounting Principles (“U.S. GAAP”) of $46.2 million, non-GAAP net income of $58.0 million, Adjusted EBITDA of $69.7 million, GAAP net income per diluted share of $1.24, and non-GAAP net income per diluted share of $1.56.

“Q3 was another strong quarter of rapid innovation for Qualys, reflecting our ongoing commitment to technology leadership, cybersecurity transformation, and successful outcomes for customers,” said Sumedh Thakar, Qualys’ president and CEO. “With the release of several new capabilities, including our Enterprise TruRisk Management solution, TruRisk Eliminate, and Qualys TotalAI we have further strengthened our strategic position as the partner of choice for customers looking to rearchitect and consolidate their security tools to solve modern security challenges while simplifying their operational defenses. We believe we can continue to grow long-term, maintain best-in-class profitability, and invest in key initiatives aimed at further extending the gap between Qualys and the competition.”

Third Quarter 2024 Financial Highlights

Revenues: Revenues for the third quarter of 2024 increased by 8% to $153.9 million compared to $142.0 million for the same quarter in 2023.

Gross Profit: GAAP gross profit for the third quarter of 2024 increased by 8% to $125.0 million compared to $115.3 million for the same quarter in 2023. GAAP gross margin was 81% for both the third quarter of 2024 and the same quarter in 2023. Non-GAAP gross profit for the third quarter of 2024 increased by 8% to $127.8 million compared to $118.0 million for the same quarter in 2023. Non-GAAP gross margin was 83% for both the third quarter of 2024 and the same quarter in 2023.

Operating Income: GAAP operating income for the third quarter of 2024 increased by 3% to $45.0 million compared to $43.6 million for the same quarter in 2023. As a percentage of revenues, GAAP operating income was 29% for the third quarter of 2024 compared to 31% for the same quarter in 2023. Non-GAAP operating income for the third quarter of 2024 increased by 5% to $66.0 million compared to $62.9 million for the same quarter in 2023. As a percentage of revenues, non-GAAP operating income was 43% for the third quarter of 2024 compared to 44% for the same quarter in 2023.

Net Income: GAAP net income for the third quarter of 2024 decreased by 1% to $46.2 million, or $1.24 per diluted share, compared to $46.5 million, or $1.24 per diluted share, for the same quarter in 2023. As a percentage of revenues, GAAP net income was 30% for the third quarter of 2024 compared to 33% for the same quarter in 2023. Non-GAAP net income for the third quarter of 2024 was $58.0 million, or $1.56 per diluted share, compared to $56.7 million, or $1.51 per diluted share, for the same quarter in 2023. As a percentage of revenues, non-GAAP net income was 38% for the third quarter of 2024 compared to 40% for the same quarter in 2023.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2024 increased by 1% to $69.7 million compared to $68.8 million for the same quarter in 2023. As a percentage of revenues, Adjusted EBITDA was 45% for the third quarter of 2024 compared to 48% for the same quarter in 2023.

Operating Cash Flow: Operating cash flow for the third quarter of 2024 decreased by 34% to $61.0 million compared to $92.4 million for the same quarter in 2023. As a percentage of revenues, operating cash flow was 40% for the third quarter of 2024 compared to 65% for the same quarter in 2023.

Third Quarter 2024 Business Highlights

Launched Qualys’ TruRisk Eliminate, a remediation solution extending beyond patching by providing patchless patching, targeted isolation, and other mitigation strategies to help organizations reduce risk.Expanded our portfolio by introducing Qualys TotalAI, designed to address the growing challenges and risks of securing generative AI and large language model (LLM) applications to detect data leaks, injection issues, and model theft.The 2024 GigaOm Radar Report for Continuous Vulnerability Management ranked Qualys’ VMDR as a leading vulnerability management solution for the fourth straight year. It noted VMDR stands apart from the competition as a “comprehensive risk-based approach to vulnerability management.”Gartner recognized TotalCloud among solutions named in its July 2024 Marketguide for Cloud Native Application Protection Platforms.Qualys’ CyberSecurity Asset Management ranked as a strong performer among top vendors in the Forrester Wave for Attack Surface Management in its debut in the report.Introduced updates to our Web Application Security solution including context-aware TruRisk prioritization, advanced API security features, and a redesigned user interface offering guided workflows and feedback loops. These updates address the growing complexity of securing web applications and APIs in digital environments.

Financial Performance Outlook

Based on information as of today, November 5, 2024, Qualys is issuing the following financial guidance for the fourth quarter and full year fiscal 2024. The Company emphasizes that the guidance is subject to various important cautionary factors referenced in the sections entitled “Legal Notice Regarding Forward-Looking Statements” and “Non-GAAP Financial Measures” below.

Fourth Quarter 2024 Guidance: Management expects revenues for the fourth quarter of 2024 to be in the range of $154.5 million to $157.5 million, representing 7% to 9% growth over the same quarter in 2023. GAAP net income per diluted share is expected to be in the range of $0.84 to $0.94, which assumes an effective income tax rate of 21%. Non-GAAP net income per diluted share is expected to be in the range of $1.28 to $1.38, which assumes a non-GAAP effective income tax rate of 21%. Fourth quarter 2024 net income per diluted share estimates are based on approximately 36.9 million weighted average diluted shares outstanding for the quarter.

Full Year 2024 Guidance: Management now expects revenues for the full year of 2024 to be in the range of $602.9 million to $605.9 million, representing 9% growth over 2023. This compares to the previous guidance range of $597.5 million to $601.5 million. GAAP net income per diluted share is expected to be in the range of $4.31 to $4.41, up from the previous guidance range of $3.85 to $4.01. This assumes an effective income tax rate of 18%. Non-GAAP net income per diluted share is expected to be in the range of $5.81 to $5.91, up from the previous guidance range of $5.46 to $5.62. This assumes a non-GAAP effective income tax rate of 21%. Full year 2024 net income per diluted share estimates are based on approximately 37.4 million weighted average diluted shares outstanding.

Qualys has not reconciled non-GAAP net income per diluted share guidance to GAAP net income per diluted share guidance because Qualys does not provide guidance on the various reconciling cash and non-cash items between GAAP net income and non-GAAP net income (i.e., stock-based compensation, amortization of intangible assets from acquisitions and non-recurring items). The actual dollar amount of reconciling items in the fourth quarter and full year 2024 is likely to have a significant impact on the Company’s GAAP net income per diluted share in the fourth quarter and full year 2024. A reconciliation of the non-GAAP net income per diluted share guidance to the GAAP net income per diluted share guidance is not available without unreasonable effort.

Investor Conference Call

Qualys will host a conference call and live webcast to discuss its third quarter financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Tuesday, November 5, 2024. To access the conference call by phone, please register here. A live webcast of the earnings conference call, investor presentation and prepared remarks can be accessed at https://investor.qualys.com/events-presentations. A replay of the conference call will be available through the same webcast link following the end of the call.

Investor Contact

Blair King
Vice President, Investor Relations and Corporate Development
(650) 538-2088
ir@qualys.com

About Qualys

Qualys, Inc. (NASDAQ: QLYS) is a leading provider of disruptive cloud-based Security, Compliance and IT solutions with more than 10,000 subscription customers worldwide, including a majority of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline and consolidate their security and compliance solutions onto a single platform for greater agility, better business outcomes, and substantial cost savings.

The Qualys Enterprise TruRisk Platform leverages a single agent to continuously deliver critical security intelligence while enabling enterprises to automate the full spectrum of vulnerability detection, compliance, and protection for IT systems, workloads and web applications across on premises, endpoints, servers, public and private clouds, containers, and mobile devices. Founded in 1999 as one of the first SaaS security companies, Qualys has strategic partnerships and seamlessly integrates its vulnerability management capabilities into security offerings from cloud service providers, including Amazon Web Services, the Google Cloud Platform and Microsoft Azure, along with a number of leading managed service providers and global consulting organizations. For more information, please visit www.qualys.com.

Qualys, Qualys VMDR® and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, quotations of management and statements related to: the benefits of our existing, new and upcoming products, features, integrations, acquisitions, collaborations and joint solutions, and their impact upon our long-term growth; our ability to advance our value proposition and competitive differentiation in the market; our ability to address demand trends; our ability to maintain and strengthen our category leadership; our ability to solve modern security challenges at scale; our strategies and ability to achieve and maintain durable profitable growth; our guidance for revenues, GAAP EPS and non-GAAP EPS for the fourth quarter and full year 2024; and our expectations for the number of weighted average diluted shares outstanding and the GAAP and non-GAAP effective income tax rate for the fourth quarter and full year 2024. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; the ability of our platform and solutions to perform as intended; customer acceptance and purchase of our existing solutions and new solutions; real or perceived defects, errors or vulnerabilities in our products or services; our ability to retain existing customers and generate new customers; the budgeting cycles and seasonal buying patterns of our customers; general market, political, economic and business conditions in the United States as well as globally; our ability to manage costs as we increase our customer base and the number of our platform solutions; the market for cloud solutions for IT security and compliance not increasing at the rate we expect; competition from other products and services; fluctuations in currency exchange rates; unexpected fluctuations in our effective income tax rate on a GAAP and non-GAAP basis; our ability to effectively manage our rapid growth and our ability to anticipate future market needs and opportunities; and any unanticipated accounting charges. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

The forward-looking statements in this press release are based on information available to Qualys as of the date hereof, and Qualys disclaims any obligation to update any forward-looking statements, except as required by law.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with GAAP, Qualys provides investors with certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA (defined as earnings before interest expense, interest income and other income (expense), net, income taxes, depreciation, amortization, and stock-based compensation) and non-GAAP free cash flows (defined as cash provided by operating activities less purchases of property and equipment, net of proceeds from disposal).

In computing non-GAAP financial measures, Qualys excludes the effects of stock-based compensation expense, amortization of intangible assets from acquisitions, non-recurring items and for non-GAAP net income, certain tax effects. Qualys believes that these non-GAAP financial measures help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows.

Furthermore, Qualys uses some of these non-GAAP financial measures to establish budgets and operational goals for managing its business and evaluating its performance. Qualys believes that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods with other companies in its industry.

Although Qualys does not focus on or use quarterly billings in managing or monitoring the performance of its business, Qualys provides calculated current billings (defined as total revenues recognized in a period plus the sequential change in current deferred revenue in the corresponding period) for the convenience of investors and analysts in building their own financial models.

In order to provide a more complete picture of recurring core operating business results, the Company’s non-GAAP net income and non-GAAP net income per diluted share include adjustments for non-recurring income tax items and certain tax effects of non-GAAP adjustments to achieve the effective income tax rate on a non-GAAP basis. The Company’s non-GAAP effective tax rate may differ from the GAAP effective income tax rate as a result of these income tax adjustments. The Company believes its estimated non-GAAP effective income tax rate of 21% in 2024 is a reasonable estimate under its current global operating structure and core business operations. The Company may adjust this rate during the year to take into account events or trends that it believes materially impact the estimated annual rate. The non-GAAP effective income tax rate could be subject to change for a number of reasons, including but not limited to, significant changes resulting from tax legislation, material changes in geographic mix of revenues and expenses and other significant events.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.

Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

Revenues

$ 153,867

$ 141,996

$ 448,380

$ 409,888

Cost of revenues (1)

28,832

26,739

82,445

80,355

Gross profit

125,035

115,257

365,935

329,533

Operating expenses:

Research and development (1)

28,901

27,782

83,550

83,001

Sales and marketing (1)

32,686

27,881

94,240

79,750

General and administrative (1)

18,494

15,999

50,362

45,182

Total operating expenses

80,081

71,662

228,152

207,933

Income from operations

44,954

43,595

137,783

121,600

Other income (expense), net:

Interest income

6,764

5,136

19,590

11,342

Other income (expense), net

605

(708)

(1,381)

(1,883)

Total other income, net

7,369

4,428

18,209

9,459

Income before income taxes

52,323

48,023

155,992

131,059

Income tax provision

6,111

1,508

26,277

20,057

Net income

$ 46,212

$ 46,515

$ 129,715

$ 111,002

Net income per share:

Basic

$ 1.26

$ 1.27

$ 3.52

$ 3.01

Diluted

$ 1.24

$ 3.46

$ 2.96

Weighted average shares used in computing net income per share:

Basic

36,762

36,766

36,877

36,891

Diluted

37,136

37,448

37,441

37,516

(1) Includes stock-based compensation as follows:

Cost of revenues

$ 2,081

$ 1,946

$ 5,967

$ 5,255

Research and development

5,448

5,671

15,911

15,734

Sales and marketing

3,649

3,229

11,020

8,580

General and administrative

9,159

7,676

23,556

20,991

Total stock-based compensation, net of amounts capitalized

$ 20,337

$ 18,522

$ 56,454

$ 50,560

Qualys, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands)

September 30,
2024

December 31,
2023

Assets

Current assets:

Cash and cash equivalents

$ 235,430

$ 203,665

Restricted cash

—

1,500

Short-term marketable securities

150,913

221,893

Accounts receivable, net

114,967

146,226

Prepaid expenses and other current assets

35,307

26,714

Total current assets

536,617

599,998

Long-term marketable securities

186,680

56,644

Property and equipment, net

27,343

32,599

Operating leases – right of use asset

41,294

22,391

Deferred tax assets, net

77,730

62,761

Intangible assets, net

7,451

9,715

Goodwill

7,447

Noncurrent restricted cash

1,200

Other noncurrent assets

22,561

19,863

Total assets

$ 908,323

$ 812,618

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$ 1,422

$ 988

Accrued liabilities

39,960

43,096

Deferred revenues, current

337,821

333,267

Operating lease liabilities, current

9,333

11,857

Total current liabilities

388,536

389,208

Deferred revenues, noncurrent

23,116

31,671

Operating lease liabilities, noncurrent

38,266

16,885

Other noncurrent liabilities

8,810

6,680

Total liabilities

458,728

444,444

Stockholders’ equity:

Common stock

Additional paid-in capital

642,435

597,921

Accumulated other comprehensive loss

(293)

(1,704)

Accumulated deficit

(192,584)

(228,080)

Total stockholders’ equity

449,595

368,174

Total liabilities and stockholders’ equity

$ 908,323

$ 812,618

Qualys, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

Nine Months Ended
September 30,

2024

2023

Cash flow from operating activities:

Net income

$ 129,715

$ 111,002

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense

14,410

21,140

Provision for credit losses

411

230

Loss on non-marketable securities

—

533

Stock-based compensation, net of amounts capitalized

56,454

50,560

Accretion of discount on marketable securities, net

(5,231)

(3,502)

Deferred income taxes

(15,374)

(11,561)

Changes in operating assets and liabilities:

Accounts receivable

30,848

18,137

Prepaid expenses and other assets

(9,900)

(4,804)

Accounts payable

391

(1,428)

Accrued liabilities and other noncurrent liabilities

(1,351)

8,211

Deferred revenues

(4,001)

22,248

Net cash provided by operating activities

196,372

210,766

Cash flow from investing activities:

Purchases of marketable securities

(305,952)

(252,438)

Sales and maturities of marketable securities

252,940

212,202

Purchases of property and equipment

(6,497)

(7,263)

Net cash used in investing activities

(59,509)

(47,499)

Cash flow from financing activities:

Repurchase of common stock

(97,188)

(147,725)

Proceeds from exercise of stock options

8,311

28,384

Payments for taxes related to net share settlement of equity awards

(23,093)

(14,998)

Proceeds from issuance of common stock through employee stock purchase plan

6,872

6,077

Payment of acquisition-related holdback

(1,500)

—

Net cash used in financing activities

(106,598)

(128,262)

Net increase in cash, cash equivalents and restricted cash

30,265

35,005

Cash, cash equivalents and restricted cash at beginning of period

206,365

176,419

Cash, cash equivalents and restricted cash at end of period

$ 236,630

$ 211,424

Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

ADJUSTED EBITDA

(unaudited)

(in thousands, except percentages)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

Net income

$ 46,212

$ 46,515

$ 129,715

$ 111,002

Net income as a percentage of revenues

30 %

33 %

29 %

27 %

Depreciation and amortization of property and equipment

3,670

5,922

12,146

18,824

Amortization of intangible assets

721

772

2,264

2,316

Income tax provision

6,111

1,508

26,277

20,057

Stock-based compensation

20,337

18,522

56,454

50,560

Total other income, net

(7,369)

(4,428)

(18,209)

(9,459)

Adjusted EBITDA

$ 69,682

$ 68,811

$ 208,647

$ 193,300

Adjusted EBITDA as a percentage of revenues

45 %

48 %

47 %

Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

(unaudited)

(in thousands, except per share data)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023

2024

2023

GAAP Cost of revenues

$ 28,832

$ 26,739

$ 82,445

$ 80,355

Less: Stock-based compensation

(2,081)

(1,946)

(5,967)

(5,255)

Less: Amortization of intangible assets

(705)

(747)

(2,198)

(2,241)

Non-GAAP Cost of revenues

$ 26,046

$ 24,046

$ 74,280

$ 72,859

GAAP Gross profit

$ 125,035

$ 115,257

$ 365,935

$ 329,533

Plus: Stock-based compensation

2,081

1,946

5,967

5,255

Plus: Amortization of intangible assets

705

747

2,198

2,241

Non-GAAP Gross Profit

$ 127,821

$ 117,950

$ 374,100

$ 337,029

GAAP Research and development

$ 28,901

$ 27,782

$ 83,550

$ 83,001

Less: Stock-based compensation

(5,448)

(5,671)

(15,911)

(15,734)

Less: Amortization of intangible assets

(16)

(25)

(66)

(75)

Non-GAAP Research and development

$ 23,437

$ 22,086

$ 67,573

$ 67,192

GAAP Sales and marketing

$ 32,686

$ 27,881

$ 94,240

$ 79,750

Less: Stock-based compensation

(3,649)

(3,229)

(11,020)

(8,580)

Non-GAAP Sales and marketing

$ 29,037

$ 24,652

$ 83,220

$ 71,170

GAAP General and administrative

$ 18,494

$ 15,999

$ 50,362

$ 45,182

Less: Stock-based compensation

(9,159)

(7,676)

(23,556)

(20,991)

Non-GAAP General and administrative

$ 9,335

$ 8,323

$ 26,806

$ 24,191

GAAP Operating expenses

$ 80,081

$ 71,662

$ 228,152

$ 207,933

Less: Stock-based compensation

(18,256)

(16,576)

(50,487)

(45,305)

Less: Amortization of intangible assets

(16)

(25)

(66)

(75)

Non-GAAP Operating expenses

$ 61,809

$ 55,061

$ 177,599

$ 162,553

GAAP Income from operations

$ 44,954

$ 43,595

$ 137,783

$ 121,600

Plus: Stock-based compensation

20,337

18,522

56,454

50,560

Plus: Amortization of intangible assets

721

772

2,264

2,316

Non-GAAP Income from operations

$ 66,012

$ 62,889

$ 196,501

$ 174,476

GAAP Net income

$ 46,212

$ 46,515

$ 129,715

$ 111,002

Plus: Stock-based compensation

20,337

18,522

56,454

50,560

Plus: Amortization of intangible assets

721

772

2,264

2,316

Less: Tax adjustment

(9,299)

(9,129)

(18,812)

(18,569)

Non-GAAP Net income

$ 57,971

$ 56,680

$ 169,621

$ 145,309

GAAP Net income per share:

Basic

$ 1.26

$ 1.27

$ 3.52

$ 3.01

Diluted

$ 1.24

$ 3.46

$ 2.96

Non-GAAP Net income per share:

Basic

$ 1.58

$ 1.54

$ 4.60

$ 3.94

Diluted

$ 1.56

$ 1.51

$ 4.53

$ 3.87

Weighted average shares used in GAAP and non-GAAP net income per share:

Basic

36,762

36,766

36,877

36,891

Diluted

37,136

37,448

37,441

37,516

Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

FREE CASH FLOWS

(unaudited)

(in thousands)

Nine Months Ended
September 30,

2024

2023

GAAP Cash flows provided by operating activities

$ 196,372

$ 210,766

Less:

Purchases of property and equipment, net of proceeds from disposal

(6,497)

(7,263)

Non-GAAP Free cash flows

$ 189,875

$ 203,503

Qualys, Inc.

RECONCILIATION OF NON-GAAP DISCLOSURES

CALCULATED CURRENT BILLINGS

(unaudited)

(in thousands, except percentages)

Three Months Ended
September 30,

2024

2023

GAAP Revenue

$ 153,867

$ 141,996

GAAP Revenue growth compared to same quarter of prior year

8 %

13 %

Plus: Current deferred revenue at September 30

337,821

307,179

Less: Current deferred revenue at June 30

(324,334)

(302,446)

Non-GAAP Calculated current billings

$ 167,354

$ 146,729

Calculated current billings growth compared to same quarter of prior year

14 %

View original content:https://www.prnewswire.com/news-releases/qualys-announces-third-quarter-2024-financial-results-302296710.html

SOURCE Qualys, Inc.

Technology

Hoymiles Powers Latvia’s Largest Energy Storage Project at Tārgale

Published

49 mins ago

November 6, 2024

VENTSPILS, Latvia, Nov. 6, 2024 /PRNewswire/ — On November 1, 2024, Tārgale Wind Park held its grand opening, unveiling Latvia’s first major energy storage facility. Hoymiles, as a key technology supplier, played a pivotal role in the project. Managed by Utilitas, Latvia’s largest wind energy producer, this project combines wind energy generation with advanced storage capabilities, setting a new standard for renewable energy infrastructure in the country.

The Tārgale Wind Park, initially launched in 2022 with an annual generation capacity of 155 GWh, has recently integrated a utility-scale energy storage system to enhance grid stability. Hoymiles supplied essential components for this storage system, including 3,450 kW Power Conversion System (PCS) containers on the AC side and 3.44 MWh battery containers on the DC side. This new energy storage system has a capacity of 20 MWh, enabling the park to store surplus energy generated during periods of high wind and supply it back to the grid when needed. The project represents a €7 million investment, underscoring Utilitas Wind’s commitment to advancing sustainable energy solutions in Latvia.

The opening ceremony was attended by key Latvian officials, including Minister for Climate and Energy Mr. Kaspars Melnis. “It is essential to build new green energy capacity to ensure the resilience and smooth operation of our energy systems as we prepare for a key transition early next year. We are clearly moving in the right direction,” he said.

The new energy storage system marks a major advancement for Latvia, which is working to stabilize its energy supply while supporting sustainable development.

Hoymiles is proud to contribute to the Tārgale Wind Park energy storage project. Through innovation and technical expertise, Hoymiles continues to support global clean energy initiatives, making sustainable energy accessible to everyone.

About Hoymiles

Founded in 2012, Hoymiles is a clean energy solution provider, specializing in module-level inverters and storage systems. With a vision of a clean, sustainable future, the company strives to drive innovation in the smart energy industry with its high-performance, accessible products. Learn more at Hoymiles’ official website.

About Utilitas

Utilitas Wind SIA is part of the Estonian energy company Utilitas. Utilitas Group is moving towards carbon neutrality by building new renewable energy production capacities, investing in solar and wind energy, and implementing the first green hydrogen pilot project in Estonia. Learn more at https://www.utilitas.ee/en/.

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Technology

Chunghwa Telecom Reports Un-Audited Consolidated Operating Results for the Third Quarter of 2024

Published

49 mins ago

November 6, 2024

TAIPEI, Nov. 6, 2024 /PRNewswire/ — Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (“Chunghwa” or “the Company”) today reported its un-audited operating results for the third quarter of 2024. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards (“T-IFRSs”) on a consolidated basis.

(Comparisons throughout the press release, unless otherwise stated, are made with regard to the prior year period.)

Third Quarter 2024 Financial Highlights

Total revenue increased by 3.6% to NT$ 55.61 billion.Consumer Business Group revenue increased by 2.1% to NT$ 34.43 billion.Enterprise Business Group revenue increased by 5.9% to NT$ 17.60 billion.International Business Group revenue increased by 1.4% to NT$ 2.37 billion.Total operating costs and expenses increased by 4.8% to NT$ 44.23 billion.Operating income decreased by 0.8% to NT$ 11.38 billion.EBITDA decreased by 0.5% to NT$ 21.26 billion.Net income attributable to stockholders of the parent decreased by 1% to NT$ 9.01 billion.Basic earnings per share (EPS) was NT$1.16.Operating income, net income attributable to stockholders of the parent, and EPS all exceeded our proposed guidance.

“The Company delivered solid results in this quarter highlighted by exceptional operational performance across all business segments,” stated Mr. Chih-Cheng Chien, Chairman and CEO of Chunghwa Telecom. “We have set a new record for total revenue for the same quarter over the past seven years, reinforcing our leadership in Taiwan’s mobile market with a revenue market share of 40.3% and a subscriber share of 37.8%. Our blended 5G penetration rate continued to expand to 33.5%, maintaining leadership in Taiwan. Additionally, thanks to our expansion on cross-tier upgrade promotion package to include 1Gbps service offerings, our 1 Gbps subscriber net-adds doubled during the quarter.”

“Looking into the details of our three business groups, the Consumer Business Group maintained its healthy growth trajectory, driven by 5G migration and increasing postpaid subscribers, steady fixed broadband revenue, and higher OTT revenue from our exclusive broadcast of the Paris Olympic Games. We achieved double-digit year-over-year growth in video-related revenue, driven by the increasing subscriptions to our video platforms, which have exceeded 3 million,” said Mr. Rong-Shy Lin, President of Chunghwa Telecom. “Our Enterprise Business Group performed as anticipated, driven by a robust 22% year-over-year growth in our ICT business revenue. Notably, revenue from 5G private networks and big data analysis surged significantly, fueled by the 5G O-RAN project and smart government initiatives. Furthermore, we are pleased with the performance of our International Business Group, where income before tax increased by 11% year-over-year, primarily driven by our overseas ICT business. Excitingly, our European subsidiary in Frankfurt commenced operations on July 30, and we are well-prepared to offer ICT solutions to high-tech European markets,” added Mr. Lin.

“In terms of development of advanced networks and technologies, Chunghwa Telecom continues to lead the industry by initiating the world’s first IOWN APN between Taiwan and Japan with NTT Group during the quarter. We are also the exclusive provider of OneWeb low-earth-orbit satellite, with more than 90% coverage in Taiwan by the third quarter,” Mr. Chien continued. “On the ESG front, we have received SBTi’s verification for our Net-Zero greenhouse gas emissions target, making us the first operator in Taiwan to commit to achieving Net-Zero by 2045, ahead of the world roadmap of 2050. Additionally, we have obtained carbon footprint verification for all of our service centers nationwide, distinguishing us as the only telecom company in Taiwan to achieve this milestone. We remain dedicated to leading the way in ESG best practices.”

“Our solid performance across various sectors underscores our commitment to providing high-quality, advanced, and convenient telecom services. We remain confident that our new management team will continue to drive our progress and create value for our stakeholders,” Mr. Chien added.

Revenue

Chunghwa Telecom’s total revenues for the third quarter of 2024 increased by 3.6% to NT$ 55.61 billion.

Consumer Business Group’s revenue for the third quarter of 2024 increased by 2.1% YoY to NT$ 34.43 billion. Mobile service revenue increased 3% YoY, mainly due to 5G migration and increasing postpaid subscribers, the steady growth of fixed broadband revenue, and the increase of OTT revenue generated from our exclusive broadcast of the Paris Olympic Games. Sales revenue increased 1.3% YoY mainly due to the launch of iPhone 16 series. CBG’s income before tax decreased 0.6% YoY, mainly due to the one-time broadcasting rights fee of the Paris Olympic Games.

Enterprise Business Group’s revenue for the third quarter of 2024 increased 5.9% YoY to NT$ 17.60 billion, mainly driven by our robust growth in ICT business, which saw a 22% year-over-year increase in revenue, fueled by the strong performance of our emerging services. The decline in mobile and fixed voice services offset the growth of 5G migration and speed upgrades, resulting in a slight year-over-year decrease in EBG’s mobile and fixed-line revenues in the third quarter, while income before tax also experienced a year-over-year decrease.

International Business Group’s revenue for the third quarter of 2024 increased by 1.4% to NT$ 2.37 billion, while its income before tax increased 11% YoY. The positive growth was mainly due to the vibrant demand for ICT business in the international market.

Operating Costs and Expenses

Total operating costs and expenses for the third quarter of 2024 increased by 4.8% to NT$ 44.23 billion, mainly due to higher manpower cost and the one-time broadcasting rights fee of the Paris Olympic Games.

Operating Income and Net Income

Operating income for the third quarter of 2024 decreased by 0.8% to NT$ 11.38 billion. The operating margin was 20.5%, as compared to 21.4% in the same period of 2023. Net income attributable to stockholders of the parent decreased by 1% to NT$ 9.01 billion. Basic earnings per share was NT$1.16.

Cash Flow and EBITDA

Cash flow from operating activities, as of September 30th, 2024, decreased by 0.3% year over year to NT$ 49.76 billion, mainly due to a rise in settlement of tax payments, which were deferred to Q4 last year.

Cash and cash equivalents, as of September 30th, 2024, decreased by 2.5% to NT$ 31.22 billion as compared to that as of September 30th, 2023.

EBITDA for the third quarter of 2024 was NT$ 21.26 billion, decreasing by 0.5% year over year. EBITDA margin was 38.23%, as compared to 39.84% in the same period of 2023.

Business Highlights

Mobile

As of September 30th, 2024, Chunghwa Telecom had 13.01 million mobile subscribers, representing a 0.6% year-over-year increase. In the third quarter, total mobile service revenue increased by 2% to NT$ 16.75 billion, while mobile post-paid ARPU excluding IoT SIMs maintained stable and flat year over year at NT$ 552.

Fixed Broadband/HiNet

As of September 30th, 2024, the number of broadband subscribers slightly increased by 0.7% to 4.42 million. The number of HiNet broadband subscribers increased by 1.3% to 3.73 million. In the third quarter, total fixed broadband revenue grew 3.4% year over year to NT$ 11.32 billion, while ARPU increased 1.5% to NT$ 786.

Fixed line

As of September 30th, 2024, the number of fixed-line subscribers was 8.95 million.

Financial Statements

Financial statements and additional operational data can be found on the Company’s website at http://www.cht.com.tw/en/home/cht/investors/financials/quarterly-earnings

NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Statements that are not historical facts, including statements about Chunghwa’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwa’s filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this press release reflect the current belief of Chunghwa as of the date of this press release and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law.

This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

NON-GAAP FINANCIAL MEASURES

To supplement the Company’s consolidated financial statements presented in accordance with International Financial Reporting Standards pursuant to the requirements of the Financial Supervisory Commission, or T-IFRSs, Chunghwa Telecom also provides EBITDA, which is a “non-GAAP financial measure”. EBITDA is defined as consolidated net income (loss) excluding (i) depreciation and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other financing costs and derivative transactions), (iii) other income, net, (iv) income tax, (v) (income) loss from discontinued operations.

In managing the Company’s business, Chunghwa Telecom relies on EBITDA as a means of assessing its operating performance because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax (iv) other expenses or income not related to the operation of the business.

CAUTIONS ON USE OF NON-GAAP FINANCIAL MEASURES

In addition to the consolidated financial results prepared under T-IFRSs, Chunghwa Telecom also provide non-GAAP financial measures, including “EBITDA”. The Company believes that the non-GAAP financial measures provide investors with another method for assessing its operating results in a manner that is focused on the performance of its ongoing operations.

Chunghwa Telecom’s management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company’s operating results, as well as when forecasting and analyzing future periods. However, the Company recognizes that:

these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Company’s T-IFRSs financial measures;these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Company’s T-IFRSs financial measures;these non-GAAP financial measures should not be considered to be superior to the Company’s T-IFRSs financial measures; andthese non-GAAP financial measures were not prepared in accordance with T-IFRSs and investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principle.

Further, these non-GAAP financial measures may be unique to Chunghwa Telecom, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company’s results to the results of other companies. Readers are cautioned not to view non-GAAP results as a substitute for results under T-IFRSs, or as being comparable to results reported or forecasted by other companies.

About Chunghwa Telecom

Chunghwa Telecom (TAIEX 2412, NYSE: CHT) (“Chunghwa” or “the Company”) is Taiwan’s largest integrated telecommunications services company that provides fixed-line, mobile, broadband, and internet services. The Company also provides information and communication technology services to corporate customers with its big data, information security, cloud computing and IDC capabilities, and is expanding its business into innovative technology services such as IoT, AI, etc. Chunghwa has been actively and continuously implemented environmental, social and governance (ESG) initiatives with the goal to achieve sustainability and has won numerous international and domestic awards and recognitions for its ESG commitments and best practices. For more information, please visit our website at www.cht.com.tw

Contact: Angela Tsai

Phone: +886 2 2344 5488

Email: chtir@cht.com.tw

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SOURCE Chunghwa Telecom

Technology

ATFX Wins Two Awards at the 2024 International Investor Awards

Published

49 mins ago

November 6, 2024

HONG KONG, Nov. 6, 2024 /PRNewswire/ — ATFX is proud to announce its achievement of two esteemed awards at the 2024 International Investor Awards, reinforcing its position as a leader in the global forex trading sector. The company was awarded “Best Global Forex Broker 2024”, a testament to its unwavering commitment to excellence, customer satisfaction, and innovative trading solutions. Additionally, Joe Li, the Founder and Chairman of ATFX, received the accolade for “Best Global Forex Chairman 2024”, highlighting his outstanding leadership and vision in driving the company’s remarkable growth and international expansion.

Joe Li’s leadership has been instrumental in ATFX’s journey. As the Chairman of ATFX, he combines technical expertise with a keen understanding of market dynamics. Under his guidance, ATFX has not only expanded its global reach but has also developed ATFX Connect, which caters to the needs of institutional clients. Joe’s strategic vision emphasizes the importance of aligning with diverse cultures and establishing partnerships that drive sustainable growth.

As a fintech broker with a strong global footprint, ATFX operates in 23 locations and is licensed by renowned regulatory authorities, including the UK’s FCA, Cypriot CySEC, UAE’s SCA, Australian ASIC, and South African FSCA. This robust regulatory framework ensures that ATFX adheres to the highest standards of compliance and security, providing clients with a safe and reliable trading environment.

The recognition from the International Investor Awards highlights ATFX’s commitment to setting industry standards and its relentless pursuit of excellence. As the company continues to innovate and expand, it remains focused on delivering exceptional trading experiences that empower clients worldwide. ATFX is well-positioned to navigate the evolving landscape of forex trading and maintain its status as a trusted global broker.

For more information about ATFX, please visit https://www.atfx.com

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SOURCE ATFX