On August 8, 2024, QuinStreet Inc (QNST, Financial) released its 8-K filing detailing the financial results for the fiscal fourth quarter and full fiscal year ended June 30, 2024. QuinStreet Inc, a leader in performance marketplaces and technologies for the financial services and home services industries, reported significant growth and improved profitability.
Company Overview
QuinStreet Inc focuses on serving clients in large, information-intensive industries, where the company has pioneered a broad range of Internet marketing tools. QuinStreet aims to partner with search engine companies by helping build websites with flexible content and offerings that are customizable according to the user base. It generates revenue by delivering measurable online marketing results to the clients. Its product offerings comprise a full range of performance marketing products: Clicks, Inquiries, Calls, Applications, and Full Customer Acquisitions.
Fiscal Fourth Quarter Performance
For the fiscal fourth quarter, QuinStreet Inc reported record revenue of $198.3 million, marking a 52% increase year-over-year. This figure significantly surpassed the analyst estimate of $186.38 million. The GAAP net loss for the quarter was $(2.2) million, or $(0.04) per diluted share, which was better than the estimated earnings per share of -$0.05. Adjusted net income for the quarter was $6.5 million, or $0.11 per diluted share, and adjusted EBITDA was $11.0 million.
Full Fiscal Year 2024 Performance
For the full fiscal year 2024, QuinStreet Inc reported revenue of $613.5 million, a 6% increase year-over-year. The GAAP net loss for the year was $(31.3) million, or $(0.57) per share, aligning with the annual estimate of -$0.57 per share. Adjusted net income for the year was $6.3 million, or $0.11 per diluted share, and adjusted EBITDA was $20.4 million.
Key Financial Metrics
| Metric | Q4 2024 | FY 2024 |
|---|---|---|
| Revenue | $198.3 million | $613.5 million |
| GAAP Net Loss | $(2.2) million | $(31.3) million |
| Adjusted Net Income | $6.5 million | $6.3 million |
| Adjusted EBITDA | $11.0 million | $20.4 million |
Financial Achievements and Challenges
QuinStreet Inc's record revenue and improved profitability are significant achievements, particularly in the highly competitive Media - Diversified industry. The company's strong performance in the Auto Insurance vertical, which saw revenue grow over 200% year-over-year, was a major contributor to the overall growth. Additionally, Non-Insurance Financial Services revenue grew 13% year-over-year, and Home Services revenue grew 12% year-over-year.
Despite these achievements, the company faced challenges, including a GAAP net loss for both the quarter and the full fiscal year. However, the adjusted net income and EBITDA figures indicate a positive trend towards profitability.
Balance Sheet and Cash Flow
As of June 30, 2024, QuinStreet Inc reported $50.5 million in cash and cash equivalents and no bank debt, highlighting a strong balance sheet. The company generated $16.6 million in net cash from operating activities for the quarter and $12.0 million for the full fiscal year. Free cash flow for the quarter was $12.9 million, and normalized free cash flow was $7.2 million.
Outlook and Future Expectations
“The strong re-ramp of Auto Insurance revenue continued in fiscal Q4, and our outlook going forward for that important client vertical remains strongly and confidently positive,” commented Doug Valenti, CEO of QuinStreet. “The demand from carrier clients is steeply up and to the right, and is broad-based. Our focus in Auto Insurance has shifted to optimizing media supply to best meet the extraordinary demand.”
Looking ahead, QuinStreet Inc expects continued strong momentum in Auto Insurance and across the business. For the first quarter of fiscal 2025, the company anticipates revenue between $220 to $230 million, representing growth of 82% year-over-year at the midpoint. Adjusted EBITDA is expected to be between $14 to $16 million, indicating growth of over 1400% at the midpoint.
For the full fiscal year 2025, QuinStreet Inc projects revenue between $800 to $850 million, a 34% increase year-over-year at the midpoint, and adjusted EBITDA between $50 to $60 million, a 170% increase year-over-year at the midpoint.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from QuinStreet Inc for further details.
