Qualys Inc. (QLYS) shares tumbled 5.56% in pre-market trading on Friday, following the company's fourth-quarter 2024 earnings release and tepid guidance for 2025.

The cybersecurity firm reported fourth-quarter revenue of $159.2 million, up 10% year-over-year, but slightly missing analysts' expectations. Adjusted earnings per share (EPS) came in at $1.60, in line with estimates.

However, Qualys' guidance for 2025 fell short of analyst projections. The company projected revenue in the range of $645 million to $657 million, representing growth of 6% to 8%, lower than the consensus estimate of around 9%. Qualys cited expectations of a stable net dollar retention rate and moderate growth contribution from new business in 2025.

Analysts expressed concerns over Qualys' ability to drive new customer acquisitions and expand its existing customer base. The company's Chief Revenue Officer, Dino DiMarino, recently departed, adding uncertainty to the sales organization's future performance.

While Qualys highlighted its innovative products like Enterprise TruRisk Management (ETM) and TotalAI, analysts cautioned that the impact of these offerings on revenue growth might take time to materialize. Additionally, the company's increased focus on channel partners could potentially pressure growth in the near term.

Overall, Qualys' weaker-than-expected guidance and concerns over its sales execution weighed on investor sentiment, leading to the pre-market sell-off in the stock.