- There has been continued and steady growth in the revenue driven by a strong uptick of retail products by partner communities and following the stabilisation of GST.
- Comparing Q3FY18 to Q3FY17, as seasonal comparison, it shows that revenue growth is of 18%.
- Growth in Seqrite brand for enterprise and government is 37% Q3-to-Q3, which is substantial, and retail, which was 7% up over the same period of last year.
- License in sales increased for retail in volume terms is higher than revenue, i.e. there is stabilization at the middle end for the product.
- On other hand, enterprise products, the volume growth is actually slightly lower than revenue growth, which means that there is better ARPU or better price per license from the company from entry level corporate to mid corporate customers.
- Net impact on working capital is that it has decreased from 86 days to 52.
- There is a PAT of Rs.6.6 Crores versus Rs.1.6 Crores last year.
- Revenue of Rs.6.6 Crores is the bottom-line for this quarter, for nine-months it is Rs.33.8 Crores despite bad Q1.
- The EBITDA for three months 17.8% for the entire nine-month period at 27.5%.
- Cash generated is Rs.280 Crores by the end of quarter. It is about Rs.40 Crores higher than what is was in last quarter.
- Employee cost has decreased substantially over the last one year, which was around 10 Crores and decreased to 7 Crores.
- The net cash is around Rs.430 Crores on the balance sheet.
- Cloud based end point security is launched this quarter and solutions for managed service provide as MSP product launched, that it will enable the service provider to provide solutions through Cloud Solutions i.e. it enables service providers to offer the solution and have a Cloud based solution to gives lot more efficiency for offering the solutions.
- Company is launching a mid-priced mobile security solution primarily targeting e-commerce channel so that should help to get more customers who want to adopt it first time and it will help to get in more paid customers.
- Company is driving more partnerships to get more free users who want to just have a footprint of mobile security solutions and hopefully they would upgrade from free to paid solution down the course.
- Company has launched a UTM product in December so far about 30 plus installation done successfully.
- Company launched UTM 2.0, portfolio is increasing and the plan is to give more value for solution and also increasing the number of solutions in the portfolio.
- Company entered in technology collaboration with Finland Based Company, Jetico and introduced end-point encryption solution to enterprise customer under Seqrite. This product has received an encouraging response from businesses and government establishments.
- The flagship products continue to win in sale recognitions which Seqrite end point security and Quick Heal Total Security receiving best Triple Plus Certificate from AV Labs.
- In line with the commitment to secure digitization of our nation, collaboration with Government Cyber Swachhta Kendra to offer a free Botnet removal tool has resulted in a 51% decrease in Malware infection in all networks across the country, which demonstrates a robustness of our products.
- There is lot of focus on strengthening the distribution network and primarily looking at the dealers, Currently company has brought 20000 dealers on board with Quick Heal.
- In the encryption position, Company had a partnership with the Finland company and launched that solution in this quarter and things are progressed.
- Company bought the source code from Jetico and company will be using that source code for doing derivative of that.
- In Q2FY18 company had around 26 warehouses across India, but after GST then it has to be reduced to three warehouses across India, so the transportation time is taking play a bit time and that is the reason company has stared closing quarterly sales four to five days before quarter end actually because the delivery is important.
Enterprise vs Retail
- In the enterprise and government segment, the strategy to focus on customer retention while adding new customer had led positive result with Seqrite successfully retaining 80% of its customers.
- In the enterprise business, there has been growth in both enterprise and government. Company has a good footprint of end point security solutions. There is opportunity to cross sell and up sell. The solutions in the portfolio like data loss prevention, we have added encryption, Company has MDM which is a mobile device management, all these are great products to get more value to our customers for not only to add more customers but for existing customers will give more value.
- Company is acquiring about 21 new customers every day and there is increased focus to have more larger accounts with 500 plus users
- Company has added about 25 new customers with 500 plus users and that shows that the products solutions are getting adopted not only into plus 500 user accounts but in a larger account and that will drive further.
- The total number of customers that company have is about 25000 and the total number 500 plus user accounts that company have right now is about 100 plus. The largest account company have is about 5000 users.
- The median for per customer currently it is about 150 to 200 endpoints.
- Retention is about 75% as a percentage of active license.
- The Retention on enterprise royalty, around 79% of the customers that are getting expired, will get renewed and company will retain them and on retail front, retention rate it is close to 35%.
- The maximum number of the users’ company serve in government is 5000 users company have installed and the highest for private players will about 3500 to 4000 users.