Quick Heal Technologies (QUICKHEAL) Q1 24/25 earnings summary

Executive summary

• Achieved 37% year-on-year revenue growth in Q1 FY25, with strong performance in both consumer and enterprise segments and net revenue of INR 70.3 Cr.

• EBITDA for the quarter was INR 2.6 Cr, up 117% YoY, and PAT reached INR 4.0 Cr, up 131.6% YoY.

• Enterprise business now contributes 42-43% of revenue, up from 20% three years ago, reflecting successful market expansion.

• Launched new cybersecurity products, including on-premises EDR, XDR, Zero Trust, and data privacy solutions, and expanded offerings.

• Maintains leadership in Indian consumer antivirus with over 30% market share and robust distribution.

Financial highlights

• Q1 FY25 consolidated revenue at INR 70.3 Cr, up 37% YoY; consumer and enterprise split at 57-58% and 42-43%.

• EBITDA margin at 3.7% for the quarter, up from -29.3% YoY.

• PAT for the quarter at INR 4.0 Cr; EPS (basic) at INR 0.75 and (diluted) at INR 0.74.

• Gross margin stable at 97.7%; PAT margin improved to 5.7% from -24.8% YoY.

• Total expenses for the quarter were INR 70.54 Cr, with employee benefit expenses at INR 44.31 Cr.

Outlook and guidance

• Expectation of increased cybersecurity spending (4-5% uptick) as DPDP Act is enforced in India.

• Revenue growth anticipated to outpace cost increases, leading to improved EBITDA margins over a three-year horizon.

• Continued investment in R&D and sales capabilities to drive sustained growth and focus on next-generation products.

• No specific margin or revenue guidance disclosed, but focus remains on profitable growth.

• Expansion strategies and strategic partnerships expected to deepen market penetration.