[Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) This section provides an overview of QuinStreet's strong Q3 FY2025 financial performance and its maintained full fiscal year 2025 outlook [Q3 FY2025 Performance Summary](index=1&type=section&id=Q3%20FY2025%20Performance%20Summary) QuinStreet achieved strong Q3 FY2025 results with 60% revenue growth and 145% adjusted EBITDA growth, driven by Financial Services and Home Services segments Q3 FY2025 Key Financial Metrics | Metric | Q3 FY2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $269.8 million | +60% | | GAAP Income | $4.4 million | N/A (from loss) | | GAAP Diluted EPS | $0.08 | N/A (from loss) | | Adjusted Net Income | $12.4 million | +260% | | Adjusted Diluted EPS | $0.21 | +250% | | Adjusted EBITDA | $19.4 million | +145% | | Operating Cash Flow | $30.1 million | +632% | Q3 FY2025 Revenue Growth by Vertical (YoY) | Client Vertical | YoY Growth | | :--- | :--- | | **Total Revenue** | **+60%** | | Financial Services | +78% | | - Auto Insurance | +165% | | Home Services | +21% | - The company strengthened its balance sheet, ending the quarter with **$81.8 million** in cash and cash equivalents and no bank debt[5](index=5&type=chunk)[6](index=6&type=chunk)[9](index=9&type=chunk) [Fiscal Year 2025 Outlook](index=1&type=section&id=Fiscal%20Year%202025%20Outlook) The company maintains its FY2025 outlook, projecting revenue between $1.065 billion and $1.105 billion and adjusted EBITDA between $80 million and $85 million Full Fiscal Year 2025 Outlook | Metric | Outlook Range | | :--- | :--- | | Revenue | $1.065 billion - $1.105 billion | | Adjusted EBITDA | $80 million - $85 million | - The outlook implies significant Q4 year-over-year growth: - Revenue growth of at least **18%** - Adjusted EBITDA growth of at least **89%**[6](index=6&type=chunk) - The outlook range for Q4 is wider than usual to account for risks and potential volatility related to tariffs and client spending[6](index=6&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the company's condensed consolidated balance sheets, statements of operations, and cash flows for the reported periods [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $417.2 million, driven by higher cash and accounts receivable, with total equity rising to $235.5 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$228,384** | **$169,087** | | Cash and cash equivalents | $81,815 | $50,488 | | Accounts receivable, net | $137,241 | $111,786 | | **Total Assets** | **$417,235** | **$368,546** | | **Total Liabilities** | **$181,760** | **$151,721** | | **Total Stockholders' Equity** | **$235,475** | **$216,825** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q3 FY2025, net revenue increased 60% to $269.8 million, resulting in an operating income of $4.9 million and net income of $4.4 million, reversing prior-year losses Statement of Operations Summary - Three Months Ended March 31 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net revenue | $269,842 | $168,587 | | Gross profit | $27,862 | $14,311 | | Operating income (loss) | $4,912 | $(5,332) | | Net income (loss) | $4,416 | $(7,048) | | Diluted net income (loss) per share | $0.08 | $(0.13) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q3 FY2025, the company generated $30.1 million in operating cash flow, leading to a net increase in cash of $24.0 million and a quarter-end balance of $81.8 million Statement of Cash Flows Summary - Three Months Ended March 31 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,111 | $4,113 | | Net cash used in investing activities | $(3,013) | $(9,709) | | Net cash used in financing activities | $(3,110) | $(320) | | Net increase (decrease) in cash | $23,981 | $(5,918) | | Cash at end of period | $81,831 | $39,617 | [Non-GAAP Financial Measures & Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section explains the company's use of non-GAAP financial measures and provides reconciliations to their most directly comparable GAAP counterparts [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like adjusted EBITDA, adjusted net income, and free cash flow to provide insights into core operational performance by excluding certain non-recurring items - The company provides non-GAAP measures like **adjusted EBITDA**, **adjusted net income**, and **free cash flow** as a complement to **GAAP results**[10](index=10&type=chunk) - These measures are used to analyze operating performance, for internal planning, and to evaluate operational strategies, as they exclude items not indicative of core activities like **stock-based compensation**, **amortization**, and certain **non-recurring charges**[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) - A **reconciliation** of non-GAAP measures to the most directly comparable GAAP measures is provided, though a forward-looking reconciliation for guidance is not provided due to high variability of certain items[14](index=14&type=chunk)[17](index=17&type=chunk) [Reconciliation of Net Income (Loss) to Adjusted Net Income](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20%28Loss%29%20to%20Adjusted%20Net%20Income) GAAP net income of $4.4 million for Q3 FY2025 was reconciled to an adjusted net income of $12.4 million, primarily by adding back non-cash expenses Reconciliation to Adjusted Net Income - Three Months Ended March 31 (in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | **Net income (loss)** | **$4,416** | **$(7,048)** | | Amortization of intangible assets | $2,305 | $2,678 | | Stock-based compensation | $7,073 | $6,734 | | Other adjustments | $1,455 | $2,307 | | Tax impact of non-GAAP items | $(2,894) | $(1,235) | | **Adjusted net income** | **$12,355** | **$3,436** | | **Adjusted diluted net income per share** | **$0.21** | **$0.06** | [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20%28Loss%29%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q3 FY2025 significantly increased to $19.4 million, reconciled from GAAP net income by adding back non-cash and non-operating expenses Reconciliation to Adjusted EBITDA - Three Months Ended March 31 (in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | **Net income (loss)** | **$4,416** | **$(7,048)** | | Interest and other expense, net | $19 | $2,272 | | (Benefit from) provision for income taxes | $477 | $(556) | | Depreciation and amortization | $5,969 | $6,225 | | Stock-based compensation | $7,073 | $6,734 | | Other adjustments | $1,455 | $307 | | **Adjusted EBITDA** | **$19,409** | **$7,934** | [Reconciliation to Free Cash Flow](index=12&type=section&id=Reconciliation%20to%20Free%20Cash%20Flow) The company generated $27.1 million in free cash flow for Q3 FY2025, a significant improvement, derived from $30.1 million in operating cash flow less capital expenditures and software development costs Reconciliation to Free Cash Flow - Three Months Ended March 31 (in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,111 | $4,113 | | Capital expenditures | $(639) | $(1,211) | | Internal software development costs | $(2,374) | $(2,488) | | **Free cash flow** | **$27,098** | **$414** | [Revenue Details](index=13&type=section&id=Revenue%20Details) This section provides a detailed disaggregation of the company's net revenue by client vertical [Disaggregation of Revenue](index=13&type=section&id=Disaggregation%20of%20Revenue) Total net revenue for Q3 FY2025 was $269.8 million, primarily driven by strong growth in the Financial Services and Home Services segments Disaggregation of Revenue - Three Months Ended March 31 (in thousands) | Segment | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Financial Services | $199,724 | $112,250 | +78% | | Home Services | $65,448 | $53,908 | +21% | | Other Revenue | $4,670 | $2,429 | +92% | | **Total net revenue** | **$269,842** | **$168,587** | **+60%** |

Company: QuinStreet (QNST) - QuinStreet shares increased by 8.6% to close at $15.97, following a broader market rally after President Trump's announcement regarding tariffs [1] - The stock had previously experienced a 15.3% loss over the past four weeks [1] - The upcoming quarterly earnings are expected to be $0.21 per share, reflecting a year-over-year increase of 250%, with revenues projected at $269.9 million, up 60.1% from the previous year [2] - The consensus EPS estimate for QuinStreet has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] Industry: Internet - Delivery Services - QuinStreet is part of the Zacks Internet - Delivery Services industry, which includes other companies like MakeMyTrip [3] - MakeMyTrip's consensus EPS estimate is $0.42, showing a year-over-year change of 10.5%, but it currently holds a Zacks Rank of 4 (Sell) [4]

Revenue Composition - Financial services client vertical represented 78% and 77% of net revenue for the three and six months ended December 31, 2024, compared to 58% for both periods in 2023[84]. - Home services client vertical accounted for 21% and 22% of net revenue for the three and six months ended December 31, 2024, down from 40% for both periods in 2023[84]. - Two clients in the financial services vertical contributed 23% and 18% of net revenue for the three months ended December 31, 2024[85]. - Revenue from the insurance business increased by $146.3 million, or 492%, for the three months ended December 31, 2024, due to higher demand from carrier clients[112]. Financial Performance - Net revenue increased by $159.9 million, or 130%, for the three months ended December 31, 2024, compared to the same period in 2023, driven by a 208% increase in revenue from the financial services client vertical[112]. - Gross profit for the three months ended December 31, 2024, was $26.8 million, representing a 290% increase compared to $6.9 million in the same period of 2023[111]. - Gross profit margin improved to 9% for the three months ended December 31, 2024, compared to 6% for the same period in 2023[115]. - Cash provided by operating activities for the six months ended December 31, 2024, was $25.0 million, compared to cash used of $8.6 million for the same period in 2023[130]. - The net loss for the six months ended December 31, 2024, was $2.9 million, with non-cash adjustments totaling $42.8 million[131]. Costs and Expenses - Cost of revenue increased by $140.0 million, or 121%, for the three months ended December 31, 2024, primarily due to increased media and marketing costs[115]. - Operating expenses for the three months ended December 31, 2024, totaled $28.1 million, an increase of 54% compared to $18.2 million in the same period of 2023[117]. - General and administrative expenses increased by $6.7 million, or 88%, for the three months ended December 31, 2024, primarily due to an adjustment to the fair value of contingent consideration[122]. Strategic Initiatives - The company completed strategic acquisitions, including BestCompany and AquaVida in fiscal year 2024, to enhance its market position[89]. - The business model relies on delivering qualified inquiries such as clicks, leads, calls, applications, or customers, which are essential for generating revenue[83]. - The company aims for sustainable revenue growth while maintaining target profitability levels, rather than maximizing short-term profits[82]. Market and Regulatory Environment - Revenue from the auto insurance industry began to increase in calendar 2024 due to rate increases and product optimizations, positively impacting overall revenue[87]. - Seasonal fluctuations affect revenue, particularly with lower media availability during the holiday period and increased demand for home services in spring and summer[93][94]. - The company faces challenges in acquiring high-quality media due to increased competition and changes in search engine algorithms, prompting strategic partnerships and acquisitions[86][90]. - Regulatory changes, such as amendments to the Telephone Consumer Protection Act, may impact revenue and profitability due to their effects on client operations[97]. Cash and Financing - Cash and cash equivalents as of December 31, 2024, were $57.8 million, with expectations of generating additional cash from future operations[126]. - The company has approximately $16.8 million remaining available for stock repurchases as of December 31, 2024, from a previously authorized program[128]. - Cash used in investing activities was $5.4 million for the six months ended December 31, 2024, down from $9.4 million in the same period of 2023[133]. - Cash used in financing activities was $12.3 million for the six months ended December 31, 2024, compared to $10.2 million for the same period in 2023[135]. - Cash used in financing activities in 2024 included $8.5 million for withholding taxes related to restricted stock releases[136]. Accounts and Obligations - The increase in accounts receivable for the six months ended December 31, 2024, was $40.4 million, attributed to higher revenue levels[131]. - The company did not have any material off-balance sheet arrangements during the periods presented[138]. - There have been no material changes in the company's contractual obligations as of June 30, 2024[140]. - The company is primarily exposed to interest rate risk, but believes it does not have material exposure due to the short-term nature of its investments[143].

Financial Data and Key Metrics Changes - QuinStreet reported record revenue for fiscal Q2 2025, with total revenue growing 130% year-over-year to $282.6 million [11] - Adjusted net income was $11.9 million or $0.20 per share, and adjusted EBITDA was $19.4 million [12] - The company expects fiscal Q3 revenue to be between $265 million and $275 million and adjusted EBITDA to be between $19.5 million and $20 million [8][14] Business Line Data and Key Metrics Changes - The Financial Services client vertical represented 78% of Q2 revenue, growing 208% year-over-year to $219.9 million, primarily driven by auto insurance, which grew 615% year-over-year [12] - The Home Services client vertical represented 21% of Q2 revenue, growing 21% year-over-year to $59.6 million [12] - Other revenue accounted for $3.1 million of Q2 revenue [12] Market Data and Key Metrics Changes - The company noted strong demand in auto insurance and continued growth in non-insurance client verticals, with overall non-insurance businesses growing 15% year-over-year [7][68] - QuinStreet closed the quarter with $58 million in cash and equivalents and no bank debt [13] Company Strategy and Development Direction - QuinStreet is focusing on optimizing media efficiencies and client results in auto insurance while pursuing growth initiatives in other verticals [7][15] - The company plans to expand its exposure to agent-driven carriers and business insurance, which represent significant addressable markets [25][80] - Management anticipates reaching a target adjusted EBITDA margin of 10% through ongoing productivity improvements and new higher-margin opportunities [16][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining momentum in auto insurance demand and highlighted the potential for strong double-digit growth [24] - The company views the recent TCPA regulatory changes as a short-term disruption but believes it will lead to long-term improvements in the channel [42] - Management indicated that the volatility seen in the insurance market over the past couple of years is unlikely to continue, expecting a return to a more stable growth trajectory [89] Other Important Information - QuinStreet raised its full fiscal year 2025 revenue outlook to approximately $1.085 billion and adjusted EBITDA to about $82.5 million [9][14] - The company is optimistic about the impact of new regulations on consumer contact rates, believing they will be less disruptive than previously anticipated [10] Q&A Session Summary Question: About maintaining momentum in auto insurance - Management noted a record number of carriers spending significantly with QuinStreet and highlighted the potential for further growth as clients optimize their budgets [23] Question: On overall EBITDA margin expectations - Management acknowledged that margins were impacted by a heavy mix of auto insurance but expects improvements as optimization efforts continue [31][35] Question: Regarding TCPA compliance and its impact - Management indicated that preparations for TCPA compliance provided valuable insights that will enhance operational efficiency moving forward [40] Question: On supply constraints in the media market - Management observed that media companies are shifting focus back to auto insurance, which is expected to alleviate previous supply constraints [48][50] Question: About growth in home services - Management expects better performance in home services in the latter half of the fiscal year due to the lack of TCPA implementation impact [54] Question: On the contribution from top carriers in auto insurance - Management highlighted increased engagement from significant carriers in digital marketing, indicating a dramatic improvement in their capabilities [60] Question: On entering the business insurance market - Management projected that margins in business insurance could be similar to current averages as the market matures [80][82]

Core Viewpoint - QuinStreet (QNST) reported quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.21 per share, but showing improvement from a loss of $0.04 per share a year ago [1][2] Financial Performance - The company posted revenues of $282.6 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 18.38% and significantly up from $122.68 million year-over-year [2] - Over the last four quarters, QuinStreet has surpassed consensus revenue estimates four times [2] Stock Performance - QuinStreet shares have increased approximately 8.4% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $249.03 million, and for the current fiscal year, it is $0.88 on revenues of $1 billion [7] - The estimate revisions trend for QuinStreet is mixed, which may change following the recent earnings report [6] Industry Context - The Internet - Delivery Services industry, to which QuinStreet belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

QuinStreet (QNST) Q2 2025 Earnings Call February 06, 2025 05:00 PM ET Company Participants Robert Amparo - Senior Director-Investor Relations and FinanceDouglas Valenti - CEOGregory Wong - CFOJohn Campbell - Managing DirectorPatrick Sholl - Vice President Conference Call Participants Jason Kreyer - Senior Research AnalystZach Cummins - Senior Research AnalystChristopher Sakai - AnalystEric Martinuzzi - Senior Research Analyst Operator Good day, and welcome to Queen Street's Fiscal Second Quarter twenty twen ...

Revenue Growth - Record revenue of $282.6 million for Q2 FY2025, up 130% year-over-year[4] - Auto insurance revenue increased by 615% year-over-year, contributing significantly to overall growth[9] - Non-insurance revenue grew by 15% year-over-year[9] - Net revenue for the three months ended December 31, 2024, was $282.6 million, a significant increase from $122.7 million in the same period of 2023, representing a growth of 130%[24] - Financial Services net revenue for Q4 2024 reached $219.934 million, a significant increase from $71.334 million in Q4 2023, representing a growth of 208%[34] - Home Services net revenue for Q4 2024 was $59.575 million, up from $49.333 million in Q4 2023, reflecting a growth of 21%[34] - Financial Services net revenue for the first half of 2024 was $430.825 million, compared to $143.458 million in the same period of 2023, marking a growth of 200%[34] - Home Services net revenue for the first half of 2024 reached $124.650 million, up from $98.728 million in the first half of 2023, showing a growth of 26%[34] - Total net revenue for the first half of 2024 was $561.815 million, a substantial increase from $246.606 million in the first half of 2023, representing a growth of 128%[34] Financial Performance - Adjusted net income of $11.9 million, or $0.20 per diluted share[4] - Adjusted EBITDA for Q2 FY2025 was $19.4 million[5] - Fiscal Q3 revenue guidance set between $265 million and $275 million[5] - Full fiscal year 2025 revenue outlook raised to between $1.065 billion and $1.105 billion[5] - Adjusted EBITDA guidance for FY2025 increased to between $80 million and $85 million[5] - Gross profit for the six months ended December 31, 2024, reached $55.2 million, compared to $14.5 million in the prior year, indicating an increase of 280%[24] - The net loss for the three months ended December 31, 2024, was $1.5 million, a reduction from a net loss of $11.6 million in the same period of 2023, showing an improvement of 87%[24] - Adjusted net income for the three months ended December 31, 2024, was $11.9 million, compared to a loss of $2.3 million in the same period of 2023[28] - Free cash flow for the three months ended December 31, 2024, was $35.9 million, compared to a negative free cash flow of $7.9 million in the same period of 2023[32] Assets and Equity - Total assets as of December 31, 2024, were $409.6 million, up from $368.5 million as of June 30, 2024[22] - Total stockholders' equity increased to $224.3 million from $216.8 million[22] - Cash, cash equivalents, and restricted cash at the end of the period totaled $57.9 million, up from $45.5 million at the end of December 2023[26] Operating Expenses - Operating expenses for the three months ended December 31, 2024, were $28.1 million, compared to $18.3 million in the same period of 2023, reflecting an increase of 53%[24] - The company reported stock-based compensation of $9.1 million for the three months ended December 31, 2024, compared to $6.1 million in the same period of 2023[28] Share Information - The weighted-average shares used in computing net loss per share for the three months ended December 31, 2024, were 56.3 million, compared to 54.8 million in the same period of 2023[24] Contingent Consideration - The company recognized a contingent consideration adjustment of $5 million for the three months ended December 31, 2024, contributing to the adjusted EBITDA of $19.4 million for the same period[30]

Core Viewpoint - The market anticipates QuinStreet (QNST) to report a significant year-over-year increase in earnings and revenues for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - QuinStreet is expected to post quarterly earnings of $0.21 per share, reflecting a year-over-year increase of +625% [3]. - Revenues are projected to reach $238.73 million, which is a 94.6% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for QuinStreet is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -10.94%, suggesting a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [7][8]. - QuinStreet's current Zacks Rank is 3, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, QuinStreet exceeded the expected earnings of $0.18 per share by delivering $0.22, resulting in a surprise of +22.22% [12]. - Over the past four quarters, QuinStreet has beaten consensus EPS estimates two times [13]. Conclusion - While QuinStreet does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Financial Data and Key Metrics - Fiscal Q1 2025 revenue grew 125% YoY and 41% sequentially, driven by auto insurance carrier budgets and expanded client, media, and product footprints [6] - Adjusted EBITDA jumped to over $20 million in Q1 [6] - Auto Insurance revenue grew 664% YoY to a record level, while Financial Services revenue grew 192% and Home Services revenue grew 32% [7] - Total revenue for Q1 was $279.2 million, with adjusted net income of $12.5 million or $0.22 per share, and adjusted EBITDA of $20.3 million [13] - Financial Services represented 76% of Q1 revenue, growing 192% YoY to $210.9 million, driven by Auto Insurance [14] - Home Services represented 23% of Q1 revenue, growing 32% YoY to a record $65.1 million [14] Business Line Performance - Auto Insurance revenue reached a record level, with a 664% YoY growth, driven by increased carrier budgets and media optimization [7][14] - Non-insurance Financial Services, including personal loans, credit cards, and banking, grew 18% combined [14] - Home Services revenue grew 32% YoY, reflecting strong market opportunities and progress on growth initiatives [14][32] Market Performance - The company expects strong continued growth in Auto Insurance, with carriers reporting good results and increased demand [7] - The Home Services market is expected to grow at strong double-digit rates over the long term, despite potential short-term impacts from TCPA rule changes [32] Strategic Direction and Industry Competition - The company is focused on increasing and optimizing media supply to meet surging carrier demand, which should further expand margins [7] - FCC changes to TCPA rules are expected to accelerate industry rationalization and consolidation, benefiting the company disproportionately [10] - The company is expanding its media supply through both partnerships and owned-and-operated properties, with a focus on improving margins [27][29] Management Commentary on Operating Environment and Future Outlook - The company raised its full fiscal year 2025 outlook, expecting revenue of about $1 billion and adjusted EBITDA between $75 million to $80 million [8][16] - Management remains bullish on the Auto Insurance market, with no signs of a slowdown from carriers [20] - The company is maintaining a conservative posture regarding FCC rule changes and potential election-related disruptions [23][24] Other Important Information - The company closed Q1 with $25 million in cash and equivalents, with a normalized cash balance of approximately $47 million after receiving $22 million in payments post-quarter end [15] - Seasonality is expected to impact Q2, with a typical 10% sequential decline in revenue due to reduced client staffing and budgets during the holiday period [15] Q&A Session Summary Question: Insurance growth and seasonality - Insurance revenue grew over 80% sequentially, with a typical 10% sequential decline expected in Q2 due to seasonality [19] - The company has factored in seasonality and remains positive about carrier demand [20] Question: Full-year guidance and back-half expectations - The company expects a more modest outlook for Home Services in the back half due to TCPA rule changes, but remains optimistic about long-term growth [21][22] - The company is maintaining a conservative posture regarding FCC rule changes and election-related disruptions [23][24] Question: Insurance market dynamics - The insurance market is seeing broader client participation and increased scale, with carriers becoming more sophisticated in their digital and performance strategies [26] Question: Media supply and margin opportunities - The company is increasing media supply through partnerships and owned-and-operated properties, with a focus on improving margins [27][29] Question: Home Services growth and TCPA impact - Home Services growth is driven by market opportunities and progress on initiatives, with TCPA expected to have a direct impact but higher conversion rates offsetting some effects [31][32] Question: Free cash flow and collections - Free cash flow was impacted by timing of payments, with collections expected to normalize in Q2 [33] Question: Carrier spend and LTV analysis - Carriers are becoming more sophisticated in analyzing spend versus lifetime value (LTV), with Progressive representing 20% of Q1 revenue [35][36] Question: CapEx and free cash flow estimates - CapEx expectations remain unchanged, with free cash flow estimates based on adjusted EBITDA minus CapEx [37] Question: Auto Insurance growth and scaling - The company expects strong double-digit growth in Auto Insurance, with no significant headwinds to scaling [39] Question: Election impact on Auto Insurance - The company is maintaining a conservative posture regarding potential election-related disruptions [40] Question: State insurance rate regulations - California remains a challenge for insurance rate adjustments, with no significant changes expected post-election [42][43] Question: Interest rate impact on verticals - Lower interest rates are expected to benefit credit cards and personal loans, while having a neutral impact on Home Services and insurance [44][45][46]

Core Insights - QuinStreet (QNST) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing a significant improvement from a loss of $0.03 per share a year ago, resulting in an earnings surprise of 22.22% [1] - The company generated revenues of $279.22 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 25.18%, and showing a substantial increase from $123.92 million in the same quarter last year [2] - QuinStreet's stock has increased approximately 55.3% year-to-date, outperforming the S&P 500's gain of 20.1% [3] Earnings Outlook - The future performance of QuinStreet's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, which includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.10 on revenues of $179.31 million, and for the current fiscal year, it is $0.61 on revenues of $832.39 million [7] Industry Context - The Internet - Delivery Services industry, to which QuinStreet belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]