With organizations shifting to remote working, cloud services security providers like Qualys (Nasdaq: QLYS) are seeing strong performance. The company recently reported its first quarter results that surpassed market expectations. It did provide a weak outlook due to the current conditions, but the market is hopeful of its product lineup and helped the stock climb to its year-high levels this week.

Qualys’s Financials

For the first quarter of the year, Qualys’s revenues grew 15% over the year to $86.3 million, ahead of the market’s estimates of $85.7 million. Net income of $18.7 million improved from $13.3 million a year ago. On an adjusted basis, EPS was $0.65 compared with $0.49 a year ago and ahead of the market’s forecast of $0.60 per share.

For the current quarter, Qualys forecast revenues of $88-$88.6 million, with adjusted earnings of $0.63-$0.65 a share. It expects to end the year with revenues of $354-$359 million compared with an earlier estimate of $364-$369 million. It forecast the year’s EPS at $2.46-$2.51 which was also lower than its earlier forecast of $2.57-$2.62 per share. The market was looking for revenues of $389.5 million for the year with an EPS of $2.54.

Qualys’s Product Expansion

Despite the weak outlook, the market is pleased with Qualys’s expanding product offerings focused on serving the security needs of a highly remote-working organization. To support its customers through the current times, Qualys launched a cloud-based Remote Endpoint Protection free service that allows security teams to gain instant and continuous visibility of remote computers, identify missing patches for clinical vulnerabilities, and deploy the patches from the cloud. It is now planning to add malware detection capabilities as part of this offering. It is also extending the free service for another 60 days for those customers who choose the malware detection capabilities.

Earlier this month, Qualys also announced the general availability of the Qualys Cloud Agent on the Google Cloud platform GCP. Since the release, GCP customers can now activate multiple Qualys applications, including its Vulnerability Management, Detection and Response (VMDR) application to build streamlined workflows within GCP. It continued the expansion of its cloud footprint by announcing the release of Qualys Container Security and Qualys Vulnerability Management within Microsoft Azure Security Center. These Qualys offerings will help build Vulnerability Management automation and real-time visibility into running virtual instances. The solution automatically analyzes virtual machines and container images in Azure and provides customers with insight into vulnerabilities and configuration issues. Any vulnerabilities detected as part of the review are reported to Azure Security Center so that support teams can remediate the issues.

Its stock is currently trading at $111.42 with a market capitalization of $4.3 billion. It touched a 52-week high of $112.90 earlier this week. The stock has recovered from the 52-week low of $63.37 it had fallen to in March this year.