Quick Heal Technologies Limited (QUICKHEAL) Q4 FY23 Earnings Concall Transcript

Quick Heal Technologies Limited (NSE: QUICKHEAL) Q4 FY23 earnings concall dated Apr. 18, 2023

Corporate Participants:

Anuj Sonpal — Moderator

Kailash Katkar — Managing Director and Chief Executive Officer

Sanjay Katkar — Chief Technology Officer

Navin Sharma — Chief Financial Officer

Analysts:

Sameer Dalal — Natwarlal & Sons — Analyst

Guneet Singh — CCIPL — Analyst

Aditya Sen — RoboCapital — Analyst

Jatinder Agarwal — Individual Investor — Analyst

Ramakrishnan V — Equity Intelligence — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Quick Heal Technologies Limited Q4 FY 2023 Earnings Conference Call. [Operator Instructions]

I now hand the conference over to Anuj Sonpal, CEO, Valorem Advisors. Thank you and over to you sir.

Anuj Sonpal — Moderator

Thank you. Good afternoon everyone and a very warm welcome to you all. My name is Anuj Sonpal from Valorem Advisors, we represent the Investor Relations of Quick Heal Technologies Limited. On behalf of the company, I would like to thank you all for participating in the company’s earnings call for the fourth quarter and full-year ended of financial year 2023.

Before we begin, let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs, as well as assumptions made by and information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decision. The purpose of today’s earnings call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review.

Now let me introduce you to the management participating with us in today’s earnings call and hand it over to them for opening remarks. We have with us today Mr. Kailash Katkar, Managing Director and CEO; Mr. Sanjay Katkar, Joint Managing Director and CTO; Mr. Navin Sharma, Chief Financial Officer.

Without any further delay, I request Mr. Kailash Katkar to give his opening remarks. Thank you and over to you sir.

Kailash Katkar — Managing Director & Chief Executive Officer

Thank you, Anuj. Good afternoon and a warm welcome everyone to our quarterly earning conference call to discuss the result and the business update for the fourth quarter of financial year 2023. Through more than 25 years of our efforts, we have successfully been able to build trust by educating and empowering customer to protect them self through offering of Quick Heal and Seqrite. Our purpose is clear, simplifying cyber security. This is not only a business objective for us, but as well our moral responsibility that we carry-on our shoulders.

In Q4 financial year 2023, our enterprise business continued to grow sustainably, while making marking 11th straight quarter delivery year-on-year growth for the segment. We believe to command dominant market leadership in the sub 500 and point market segment by now. Very recently, we became the first and the only Indian company to have collaborated with National Institute of Standards and Technologies, that is NIST, which is a US-based, National Cyber Security Center of Excellence, that is NCCOE for the Data Classification project alongside technology gains like giant like Google and Adobe and Adobe’s.

NIST is a US government organization focused on cyber security, this is the remarkable achievement as we take India to the global state and inspire many other companies to follow suit. Half year two, that is H2 of the year, financial year 2023, saw a sudden contraction of spend in the IT software category in yearly due to instability of macroeconomic variables. The consumer business saw a decline in revenue, but are more short-term in nature. Our key focus during this period is to maintain the market share that we command, while developing future lever of growth.

We are in the right industry where the world is seeking massive digital evolution, while some part of the business might be under stress for one more quarter. We will continue to invest in R&D and sales and marketing for our long-term success. Through these efforts, we have pivoted our self from the consumer antivirus player to the holistic cyber security player with new age products under our umbrella.

Now I request Sanjay to talk through the business segment and our strategic direction. Over to you, Sanjay.

Sanjay Katkar — Chief Technology Officer

Thank you, Kailash. Good afternoon, everyone. The core of our current enterprise business is EPS as a product for the SMB we begin geography. So we have created a dominant leadership in our core and looking to expand through two lever initially, so one is like increase wallet share within the customer, existing customer and expanding the customer segment. So, our flagship EPS achieved perfect score in all six cycles around the year, in the areas of [Technical Issues] are broadly bucketed into three categories endpoint, zero trust and data privacy.

We have onboarded more than 20 customers for our newly-launched products in the phase of EDR and XDR. We are looking to address a large pie of customer needs through these expanded offerings and grab a greater share of wallet within the customers overall cyber security spend. We are in the process of attending a similar product market fit for our zero trust and data privacy products. We are establishing the same for all these products and are expecting revenues to flow in from Q2 of coming year.

And as Kailash mentioned earlier, we believe to command a dominant market leadership in the SMB segment and we have delivered over INR100 crore revenue in this segment for FY 2023, growing at over 20% CAGR in the last three years. We are looking at expanding organically in the mid-size enterprise and government segment, which present similar opportunity size individually for us to cater too. Through both the levers combined, our addressable opportunity increases to five to six times, which we would be looking to capture gradually. While we keep investing in new lines of products in the enterprise segment, we remain committed to protect our customers in the consumer segment in areas of privacy, protection and performance. The consumer business which started 25 years ago has been the cash [Indecipherable] segment for us and we are witnessing a temporary downside in this business as evident from our financial performance.

I would now request Navin to take now and take you through the financials for the quarter. Over to you, Navin.

Navin Sharma — Chief Financial Officer

Thank you, Sanjay and good afternoon, everyone. The financial result for the quarter may not be exciting, but was expected, as we had mentioned on our previous calls. If we delve deeper into both the segment, the enterprise business continues to be in the growth path delivering Q-o-Q growth for nearly three years now and the consumer business experiencing a temporary contraction. The consolidated revenue for the quarter stood around INR49 crores, which de-grew by 52% on a Y-o-Y basis.

For full-year FY 2023, the consolidated revenue stood around INR278 crores, which represents a de-growth of 19%. Approximately two-third of the revenue for the year came from consumer segment, whereas one-third from enterprise and government. As I have mentioned in previous call, the segments in the market, coupled with low demand pull from the consumer is creating a period of stress in the distribution channel. We believe this to be temporary in nature and will start to see positive signs starting Q2 of FY 2024.

During the period, we have been working on improving the quality of revenue in terms of receivable outstanding and cost optimization. We have been able to reduce our receivables by 29 days to 114 days this year and now stands at pre pandemic levels. With all the cost optimization measures that we have taken in the organization, our total expenditure for the quarter saw a reduction of INR12 crores on Q-o-Q basis. We will continue to work on these measures going-forward to revive profitability.

EBITDA for the quarter stands negative largely due to the top line de-growth in the consumer business. We will continue to invest for our long-term win as our balance sheet is strong and we are a zero-debt company. It is important to note that our gross margin for the quarter and full-year continue to remain strong and constant versus previous year at over 95% level. We have proposed a dividend of INR2.5 per share to continue rewarding our shareholders for the trust that they have bestowed on us.

I would like to open the call for question-and-answer session.

Questions and Answers:

Operator

Thank you very much. [Operator Instructions] Our first question is from the line of Sameer Dalal with Natwarlal & Sons Stock Brokers Private Limited. Please go ahead.

Sameer Dalal — Natwarlal & Sons — Analyst

Yeah, hi. So actually had a question, you talked about the fact that you had expected the retail side of the business to slowdown and that is where the problem lies. Can you give us reasonings why you believe that the value you’re expecting one the retail side to slowdown. And two, what is the reason for the slowdown because at the end of the day, you have a yearly renewal kind of a situation. So are you saying that people are not renewing, so is your market share contracting, what exactly is going on and why such a drastic drop that is there in this segment?

Sanjay Katkar — Chief Technology Officer

So we believe — this is Sanjay here. We believe that there is a temporary contraction in the market due to lower IT spending across globe owing to like micro economic worldwide, but this is deemed to revive and regarding market-share…

Sameer Dalal — Natwarlal & Sons — Analyst

No, but this is a retail segment, this is not the corporate segment, the IT spending reduction you’re talking of — so on the corporate side, we are talking of retail side here.

Sanjay Katkar — Chief Technology Officer

Yeah, yeah, I can understand, so the thing is, see, when I am saying overall category itself [Technical Issues] and decline in this spending on PC segment has affected the overall sale of our product. See even though it is enterprise category, our consumer product also caters to micro segment wherein there are four, five or eight, nine, 10 PC’s, small offices, they still go for consumer product, which has also affected us. And I mean, regarding the market share, there is no data available readily, but I’ll say, we do still command a market-leading position. And it is too early to comment on this like we are experiencing for the first time, but we have been seeing this from last quarter and we are taking all the steps to make sure what we can do to overcome this situation.

Sameer Dalal — Natwarlal & Sons — Analyst

So you are saying that even in the renewal side because of whatever difficulties people are using their computers without antivirus is you’re saying, the renewals for you have been that low?

Sanjay Katkar — Chief Technology Officer

No, no renewals are happening, but renewals are happening in delayed actually near like not immediately after expiry.

Sameer Dalal — Natwarlal & Sons — Analyst

Okay. And when do you say you expect this to bounce back or do you think that a lot of these smaller businesses now come into your enterprise side or they’ll continue to take your retail side? And how does the pricing differ for the two?

Sanjay Katkar — Chief Technology Officer

Pricing overall remains the same, in fact, enterprise is little bit on the pricing is improving on the enterprise side. But the point is, people or businesses which are of the micro size, I’ll say less than 10 PCs, I don’t see they’re moving to enterprise side, they still remain on the consumer side itself because their needs and demand for the future is basically handled by the individual consumer products actually. And this I think we should — we are anticipating this to bounce-back in Q2 of this financial year.

Sameer Dalal — Natwarlal & Sons — Analyst

So one more quarter you’re going to have probably have similar kind of and I mean if you can give some thought process on how the first 15 days of the current quarter have gone, are you seeing any change or it’s still the same?

Kailash Katkar — Managing Director & Chief Executive Officer

Usually, first 15 days you don’t see because most of the time margin — because when it comes to the consumer product, most of it passes from Tier 1, Tier 2, Tier 3. So there is a shelf-life for the product and most of the buying happens in the quarter like Q4, it has a big a buying process. So immediately after completing the year like, you know after completing the 31st March, you don’t see any change in the buying, it takes bit time to pickup the sales in consumer market actually.

Sameer Dalal — Natwarlal & Sons — Analyst

Okay, okay. I’ll come back in queue. Thanks.

Kailash Katkar — Managing Director & Chief Executive Officer

Thank you.

Operator

[Operator Instructions] Our next question is from the line of Guneet Singh from CCIPL. Please go ahead.

Guneet Singh — CCIPL — Analyst

Thank you for giving me this opportunity. So in FY 2023, two-thirds of revenue came from the consumer business. And I just have a concern regarding the direction of antivirus business, because if we look at the technological advancements and like if we talk about the antivirus business 10 years ago, then everyone was familiar with antivirus and even I was a purchaser of antivirus and used it on the personal computer. But right now, with the kind of updates and if you talk about Windows or an apple computer, they come up with regular bug fixes and updates. And even if we talk about the Internet Explorer or Google Chrome, they are mostly immune to Internet. So I mean, for example, if you ask someone who started using computers, recently they would not even be aware of the concert of antivirus. So going forward, I think the only major target or the major concern for someone taking up antivirus would be corporates, who would want data protection or who would want to protect their data because that is the only target that we see these days. So I mean per se, the consumer business looks like it might get redundant in the coming years because of the factors I mentioned. So I mean, what are your thoughts on this and what is the way forward for consumer business, because it still contributes two thirds of our revenues.

Sanjay Katkar — Chief Technology Officer

Yes, so you rightly mentioned about the situation that currently the consumer business is going through, but on the future of these, I’ll say, we have seen this business for more than 25 years now. There is always such cycle where the operating system starts delivering updates and things wherein it makes it more secure, but it’s like after certain time again the threats catch-up when they come up with the technology, I mean to say ways to penetrate the well secured OS. And so malware industry keeps on evolving.

So I mean to say if you see the history, it was earlier there were viruses, then it came worms, then started seeing different attacks like phishing attacks, ransomware. And now if you see there are lot of different kind of threats that are coming up and this is I mean to say we are going through the evaluation phase. So it’s not going to be like a consumer market will completely diminish, it will evolve into a lever segment or a completely different kind of trade we start seeing. And then again operating system protection will still not be enough because threats are not going to be only towards like protect the operating system, there will be threats like currently as we see that evolving ransomware attacks are evolving fraudulent activities which are about like scam, scam related things.

So this will evolve and products will also evolve and accordingly the market will evolve. So that’s what we believe and we are on to that, wherein we are having good enough research and analysis team which works on that part of the evolving business and trying to evolve our product line is well to make sure that we remain on top of the threats that are going to come back. So that’s what I feel for the consumer market and at the same time, yeah, our enterprise is still a big market for us and we have a lot to achieve on the enterprise front as there are different segments and we have more product lines to come out at, yeah.

Guneet Singh — CCIPL — Analyst

Makes sense, but my biggest concern is that you spoke about it 10 years ago everyone used to use an antivirus, but right now I hardly hear someone subscribing to an antivirus subscription, so as I mean opting for it. So and most of the attack that we hear cyber security attacks are basically on bigger enterprise zone before data which is sold in the black market or like you mentioned most of the attacks are on big enterprises. So I mean, going forward in terms of your revenue contribution, what do you expect the contribution from the consumer business and the enterprise business per se because even if we look at the growth for Quick Heal it has mostly been driven by the enterprise segment. So I mean, what kind of contribution do you expect going forward?

Sanjay Katkar — Chief Technology Officer

Yeah, so as we are seeing enterprise has been giving us a growth for even last for three years, if you see, it has grown 20% CAGR. So definitely we see more scope for enterprise and that’s where in last at least 18 months we have been investing heavily into Enterprise products and lot of new product launches we have done in last couple of quarters. And we are quite — with respect to Enterprise, I’m grabbing more market share from the enterprise, cyber security market and the product lines that we have already launched. So gradually we are seeing products are achieving market fit and we have started also getting customers on-board for the newer products that we launched a couple of quarters back. And we see enterprise to reach at least 50% or more in at least next four to six quarters tentatively.

Guneet Singh — CCIPL — Analyst

All right, that’s all from me. Thank you.

Operator

Thank you. [Operator Instructions] Our next question is from the line of Aditya Sen from RoboCapital. Please go ahead.

Aditya Sen — RoboCapital — Analyst

Yeah, hi everyone. Good evening. I just start from the follow-up of the previous question previous participant asked. I am audible, right?

Kailash Katkar — Managing Director & Chief Executive Officer

Yes.

Aditya Sen — RoboCapital — Analyst

Yeah, we’d like to know what would be the net revenue for FY 2024 and FY 2025 because we have been struggling with the INR300 CR revenue mark since quite a long-time. So is this the year FY 2024 that will see this benchmark crossing INR300 CR?

Navin Sharma — Chief Financial Officer

Yeah, hi, Aditya, this is Navin. Fundamentally, we don’t give guidance on any of the numbers be it revenue or cost etc. But one thing what I can say that this year H2 particularly, the slowdown was something which was unexpected, it was while we’re expecting, but we’re not expecting the tune to which the slowdown has happened an issue. Next year would be year of revival and we will — INR300 crore certainly it will cross, it will have decent numbers.

Aditya Sen — RoboCapital — Analyst

Okay, thank you for that. And now I’d like to come to the research and development expenses like obviously these are investments and these are capex for Quick Heal. So I assume that once the products are launched, that is all the products will be launched in H2 FY 2024. So post that what will be the research and development expense in absolute terms?

Kailash Katkar — Managing Director & Chief Executive Officer

So some of the products will get launched in H1 and some of the products will get launched in H2, this is something like 1.0 or 2.0 urgent. And to really make product full fledge, you need to keep on adding lot of features to make sure that you are comfortable with international players, I’m talking about the new products which we are developing. So till we — so we will continue to invest in R&D for all the business directions that we take, that is product, customers, geographies etc. FY 2023 was exceptionally due to sudden drop in revenue in H2. We will be looking at R&D spend in terms of percentage of revenue rather than overall spend and would be working to maintain it at level of 25% to 30%.

Aditya Sen — RoboCapital — Analyst

Sir, 25% to 30% [Technical Issues] number for us?

Kailash Katkar — Managing Director & Chief Executive Officer

Of revenue actually.

Aditya Sen — RoboCapital — Analyst

Of revenue, yeah. Also like last year in FY 2023 [Technical Issues] and expenses. So can you please give us, what are the top three components of this, any broad like broad fields what are the top three components?

Navin Sharma — Chief Financial Officer

Aditya, your voice is not very clear, probably we will need to ask the question — repeat the question.

Aditya Sen — RoboCapital — Analyst

Am I audible — better now?

Navin Sharma — Chief Financial Officer

No.

Aditya Sen — RoboCapital — Analyst

Till no?

Navin Sharma — Chief Financial Officer

There is a disturbance actually, voice is cracking actually.

Sanjay Katkar — Chief Technology Officer

You can come closer to the mic and…

Aditya Sen — RoboCapital — Analyst

I’ll fall back in the queue. I’ll join later.

Operator

Thank you. [Operator Instructions] Our next question is from the line of Jatinder Agarwal, Individual Investor. Please go ahead.

Jatinder Agarwal — Individual Investor — Analyst

Hi, good evening. So I have two questions. One, can you quantify in terms of number of corporates that would be there for this SMB business like you said your target market is around that 500 endpoints. So how many such conflicts are there in India? And what type of revenue run rate do you get from each of these corporates, at least on average for us as an outsider to understand what type of ticket size to give build on that or individual corporate size?

Kailash Katkar — Managing Director & Chief Executive Officer

So if I have to tell you about the enterprise product customer size, see at present, I don’t have the figures, but I would say that, you know, as when it comes to the consumer business, we are definitely market leader, but when it comes to the enterprise business, there is a big potential for Quick Heal to grow. So a big potential to — for Quick Heal to grow. And since we have come out with so many different kind of products, we will able to grab more and more customers on-board, at present I don’t have the numbers of total number of customer size actually.

Jatinder Agarwal — Individual Investor — Analyst

So we are already clocking somewhere about INR100 odd crores, right? So on the enterprise side, if you could quantify what is the market size for the products that have already been launched and one that you think will come online in FY 2024?

Kailash Katkar — Managing Director & Chief Executive Officer

So, in the SMB space, actually in the endpoint security space, we are having market share of largely around 20% to 25%.

Jatinder Agarwal — Individual Investor — Analyst

So you’re saying that the total market is anywhere about INR500 odd crores to INR600 odd crores, is that a good estimate?

Navin Sharma — Chief Financial Officer

That is the SMB part.

Jatinder Agarwal — Individual Investor — Analyst

Yes, the SMB part?

Navin Sharma — Chief Financial Officer

And there is still another vertical, which is a mid size part.

Jatinder Agarwal — Individual Investor — Analyst

Right?

Navin Sharma — Chief Financial Officer

And there is a big potential for Quick Heal to grow.

Jatinder Agarwal — Individual Investor — Analyst

Okay. But do we already have products now launched for the mid corporate?

Navin Sharma — Chief Financial Officer

Yeah, we already have few customers from mid-size onboard.

Jatinder Agarwal — Individual Investor — Analyst

And what is the ticket size, sorry, the endpoint numbers that you are having in the mid-corporate?

Navin Sharma — Chief Financial Officer

No, that number is bifurcation, we don’t have at present.

Jatinder Agarwal — Individual Investor — Analyst

Okay.

Kailash Katkar — Managing Director & Chief Executive Officer

500 to 1,500 roughly endpoints that we can categorize as mid-size marketed.

Jatinder Agarwal — Individual Investor — Analyst

1,200 to 1,500?

Kailash Katkar — Managing Director & Chief Executive Officer

Yeah, 500 to 1500.

Jatinder Agarwal — Individual Investor — Analyst

500 to 1500, perfect. And my second question is related to this US, where we are one of the corporates that have got selected and you have other corporates. Can you give us the thought process how we as outsiders should look at this initiative? Is it something just on the R&D side or is this something which will eventually become monetizable in terms of efforts that you take? [Speech Overlap] even I’m okay with it.

Sanjay Katkar — Chief Technology Officer

See, I’ll explain. So NIST collaboration is all about collaborating as a industry-leader onto a segment where this is a US government entity, where they work collaboratively with industry experts and wherein even they take input from industry, cyber security industry to form the best practices and even the form — I mean to say compliances and loss for the across government as well as the industries and they are — they have invited for such companies who are working in data privacy or data privacy related technologies.

And we had a product which we recently launched the 1.0 for our data privacy, which is HawkkScan and which was which we have sent there and they really liked it. So they consider as one of the collaborator for their future discussions on these best practices into the industry. And this will help us in terms of reaching the right audiences and be visible to the industry in different countries, because it’s a very known entity which works on different compliance related document, as well as they are the I mean to say policy makers for different verticals across the industry. And this will definitely give us a good visibility across different industries and we are marketing — definitely we’ll try to make use of this opportunity to convert it into a good opportunity to showcase our skills and grab the business actually.

Jatinder Agarwal — Individual Investor — Analyst

And one very small stupid question to add-on to this. So this is B2B and B2G also, is it?

Sanjay Katkar — Chief Technology Officer

Right, right.

Jatinder Agarwal — Individual Investor — Analyst

Sorry?

Sanjay Katkar — Chief Technology Officer

Yeah, that’s right, B2B as well as B2G, right.

Jatinder Agarwal — Individual Investor — Analyst

Perfect, perfect. Thank you. Thanks a lot.

Operator

Thank you. [Operator Instructions] Our next question is from the line of Aditya Sen from RoboCapital, please go ahead.

Aditya Sen — RoboCapital — Analyst

Hi. I hope I’m audible better now?

Kailash Katkar — Managing Director & Chief Executive Officer

Yeah.

Aditya Sen — RoboCapital — Analyst

So I would like to continue with the research and development part, last year FY 2023 we did INR121 crores of research and development expenses. So what will be the top three components of this research and development expense? Can you please explain this?

Navin Sharma — Chief Financial Officer

Aditya, research and development largely includes manpower cost, then we have certain technical collaboration charges and since most of the development happened over cloud, then the cloud costs also is part of research and development, but largely you can say the single largest element would be manpower cost.

Aditya Sen — RoboCapital — Analyst

Okay, understood. And the last question, how will the sales and marketing cost trend going forward. It should ideally — we believe that it should increase because the products will be launched and once the products are successfully placed in the market, then it should decrease. So, is this understanding correct?

Navin Sharma — Chief Financial Officer

Yeah, your understanding for — so basically it will have two elements, your understanding for new products would be right, is correct, since new products or new thing would require incremental additional effort, hence the cost would be higher. But at similar cost, our standard product can be sold higher at, even at our existing cost. So broadly, what is the spend we have incurred on account of sales and marketing in this year, next year also it will remain similar, but with substantially higher sales number.

Aditya Sen — RoboCapital — Analyst

Okay, thank you. Those were my questions.

Operator

Thank you. [Operator Instructions] Our question is from the line of Ramakrishnan V from Equity Intelligence. Please go ahead.

Ramakrishnan V — Equity Intelligence — Analyst

Yeah, good evening, sir. So can you give us a breakup, what is the number of license we have sold and what is the average realization, is it this volume driven — there is an impact in the volume or is it the impact in the price? And also in case of this — your enterprise?

Navin Sharma — Chief Financial Officer

So, yeah, hi Ramakrishnan. So basically our ARPU has increased during the year and it has been increasing substantially — increasing over last few years. But as a matter of practice, we don’t share number of licenses or ARPU in absolute term.

Ramakrishnan V — Equity Intelligence — Analyst

Okay. ARPU has increased — in case of retail, as well as in the enterprise?

Navin Sharma — Chief Financial Officer

Yeah.

Ramakrishnan V — Equity Intelligence — Analyst

Okay. And what is the cash in the book as of now after the buyback and all that we have done?

Navin Sharma — Chief Financial Officer

We have close to INR200 crore as cash and cash equivalent in our books.

Ramakrishnan V — Equity Intelligence — Analyst

Okay, okay. That’s all from me.

Operator

Thank you. [Operator Instructions] Our next question is from the line of Aditya Sen from RoboCapital, please go ahead.

Aditya Sen — RoboCapital — Analyst

Sir, I would like to understand the revenue composition of INR100 crores of the enterprise segment, like what architecture bring how much revenue, I would like to understand this part.

Navin Sharma — Chief Financial Officer

So Aditya, predominantly 90% plus revenue comes from our hero product, which is endpoint protection.

Aditya Sen — RoboCapital — Analyst

Endpoint protection, okay. Thank you. And one more question like it’s not a question, that’s a concern that I’d like to share, what we believe is that CD drive from the laptop now has now completely vanished I believe. So I guess pushing the product while the laptop is being sold at the store would be difficult. So don’t you think this is a concern for us for the distribution channel? And also while emphasizing enough on selling these retail product online because when I Googled, it’s — I barely find Quick Heal anywhere, McAfee is there and other products are there, even fake products are there, but it’s difficult to find Quick Heal easily on Internet like obviously jump into the website and if it works, but I don’t see any other optimization.

Navin Sharma — Chief Financial Officer

So the answer to your second question first that we are fairly available in online be it or own website which is quickheal.co.in, as well as we are market-leader in marketplaces which include both Flipkart, as well as Amazon. This is part one. Second, your first question was with respect to CD Drive, see with the way everything has digitalized in similar fashion, our product also get burn basis the available code. So from that perspective, I don’t think that and in fact none of — none of our competition also provides their antivirus in CDs.

Aditya Sen — RoboCapital — Analyst

So even we are not providing our products through CDs?

Navin Sharma — Chief Financial Officer

Yeah, no, we are not providing. No one provides, no one provides

Aditya Sen — RoboCapital — Analyst

Oh, sorry, my bad time, it’s my bad, I’m extremely sorry. So those were my questions, thank you.

Operator

Thank you. [Operator Instructions] As there are no further questions, I now hand the conference over to the management from Quick Heal Technologies Limited for closing comments.

Kailash Katkar — Managing Director & Chief Executive Officer

Thank you all for participating in this earnings con call. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, please reach out to our IR Managers at Valorem Advisors. Thank you. Stay safe and healthy.

Operator

[Operator Closing Remarks]