QuinStreet, Inc. (NASDAQ:QNST) Q1 2024 Results Conference Call November 1, 2023 5:00 PM ET Company Participants Robert Amparo - Senior Director, IR and Finance Doug Valenti - CEO Greg Wong - CFO Conference Call Participants Jonathan Bass - Stephens Inc. Jim Goss - Barrington Research Cal Bartyzal - Craig-Hallum Capital Group Dan Day - B. Riley Securities Bruce Goldfarb - Lake Street Capital Chris Sakai - Singular Research Operator Good day, and welcome to QuinStreet’s Fiscal First Quarter 2024 Financial Res ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-34628 QuinStreet, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 77-0512121 (I.R.S. Employer Ide ...

Financial Data and Key Metrics Changes - For Q4 2023, total revenue was $130.3 million, with an adjusted net loss of $514,000 or $0.01 per share, and adjusted EBITDA of $1.8 million [13][9] - Full fiscal year 2023 revenue was $580.6 million, roughly flat year-over-year, with adjusted EBITDA of $16.7 million [15][16] - Non-insurance revenue for Q4 was $97.1 million, representing 75% of total revenue and growing 18% year-over-year [13][14] Business Line Data and Key Metrics Changes - Financial services client vertical accounted for 58% of Q4 revenue at $75.2 million, while home services represented 41% at $53.1 million [14] - For the full fiscal year 2023, financial services made up 65% of total revenue at $379.7 million, and home services accounted for 33% at $193.1 million [16] Market Data and Key Metrics Changes - Non-insurance businesses generated $367.4 million in revenue for fiscal year 2023, an increase of 26% year-over-year, with a compound annual growth rate of 19% over the past three years [10][15] - The company expects a significant positive inflection in auto insurance client spending to begin in January 2024 [9][11] Company Strategy and Development Direction - The company is focused on growing non-insurance market opportunities, which represented 75% of total revenue and are expected to continue growing at double-digit rates [6][10] - Investments are being made in next-generation products and capabilities, particularly in insurance, to capitalize on the expected reinflection of carrier marketing budgets [6][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, expecting double-digit annual revenue growth rates driven by strong performance in non-insurance businesses [10][11] - The management acknowledged challenges in the auto insurance market but remains optimistic about a turnaround beginning in January 2024, supported by improved market conditions and carrier strategies [33][59] Other Important Information - The company closed the fiscal year with $73.7 million in cash and equivalents and no bank debt [22] - A one-time non-cash charge of $51.9 million was recorded to establish a valuation allowance against deferred tax assets [22] Q&A Session Summary Question: What is the expected EBITDA margin for this year? - Management indicated that they consider 10% to be the bottom end of the improvement year-over-year, with expectations to exceed that [20][27] Question: Can you provide a breakdown of Q1 guidance? - Management stated that auto insurance is expected to be at its lowest, while non-insurance businesses are performing well, similar to the previous quarter [70][71] Question: What is driving growth in the home services segment? - Growth is attributed to deeper engagement in trades, acquiring new clients, and better execution in media campaigns [92][94] Question: What investments are being prioritized? - Investments are focused on growth in non-insurance verticals, new product development, and enhancing core optimization technologies [80][83]

QuinStreet, Inc. (NASDAQ:QNST) Q3 2023 Earnings Conference Call May 3, 2023 5:00 PM ET Company Participants Doug Valenti - Chief Executive Officer Greg Wong - Chief Financial Officer Robert Amparo - Senior Director of Investor Relations and Finance Conference Call Participants Jason Kreyer - Craig-Hallum Jonathan Bass - Stephens, Inc. Eric Martinuzzi - Lake Street Jim Goss - Barrington Research Chris Sakai - Singular Research Operator Good day! And welcome to QuinStreet’s Third Quarter and Fiscal Year 2023 ...

Q1 2023 Results Mantoverde - April 2023 John MacKenzie CEO Cashel Meagher President & COO Wendy King SVP Risk, ESG & General Counsel Jerrold Annett SVP Strategy & Capital Markets Cautionary Notes The financial results contained in this document are preliminary and represent the most current information available to the Company's management, as the Company completes its financial procedures. The Company's audited consolidated financial statements for such period may result in material changes to the financia ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents QuinStreet, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, operations, and cash flows, for periods ending March 31, 2023 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Compares the company's financial position at March 31, 2023, with June 30, 2022, detailing changes in assets, liabilities, and equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | June 30, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $62,962 | $96,439 | | Accounts receivable, net | $105,606 | $81,429 | | Total current assets | $177,297 | $182,792 | | Total assets | $412,479 | $419,909 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $112,793 | $109,579 | | Total liabilities | $127,952 | $133,909 | | Total stockholders' equity | $284,527 | $286,000 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, costs, and profitability for the three and nine months ended March 31, 2023, compared to the same periods in 2022 Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | Nine Months Ended Mar 31, 2023 | Nine Months Ended Mar 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $172,671 | $150,658 | $450,312 | $435,597 | | Gross profit | $17,038 | $14,091 | $37,924 | $41,971 | | Operating (loss) income | $(1,409) | $1,060 | $(15,478) | $(2,555) | | Net (loss) income | $(479) | $2,230 | $(12,975) | $(305) | | Diluted EPS | $(0.01) | $0.04 | $(0.24) | $(0.01) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Outlines cash movements from operating, investing, and financing activities for the nine months ended March 31, 2023 and 2022 Cash Flow Summary (in thousands) | Activity | Nine Months Ended Mar 31, 2023 | Nine Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(6,131) | $20,981 | | Net cash used in investing activities | $(10,654) | $(6,775) | | Net cash used in financing activities | $(16,677) | $(15,052) | | **Net decrease in cash** | **$(33,476)** | **$(855)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies and specific items within the financial statements, including revenue, assets, and equity - One client accounted for **25%** of net revenue for the three months ended March 31, 2023, and **23%** for the nine months ended March 31, 2023[26](index=26&type=chunk) Net Revenue by Vertical (in thousands) | Vertical | Three Months Ended Mar 31, 2023 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Financial Services | $120,219 | $304,520 | | Home Services | $50,289 | $139,997 | | Other Revenue | $2,163 | $5,795 | | **Total net revenue** | **$172,671** | **$450,312** | - Goodwill remained stable at **$121.1 million** as of March 31, 2023, with no impairments recorded during the nine-month period[46](index=46&type=chunk) - During the nine months ended March 31, 2023, the company repurchased and retired **285,644 shares** of its common stock for a total cost of **$3.1 million**. Approximately **$20.0 million** remained available for future repurchases[61](index=61&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an overview of the business, key trends, and an analysis of financial results, including revenue, costs, liquidity, and capital resources [Management Overview & Trends](index=20&type=section&id=Management%20Overview%20%26%20Trends) Provides an overview of QuinStreet's performance marketing business, key trends in Financial and Home Services, and influencing factors like seasonality and regulations - The Financial Services vertical has been challenged by factors such as increased insurance industry loss ratios, which led to **decreased advertising spending** by auto insurance carriers[79](index=79&type=chunk)[80](index=80&type=chunk) - The Home Services vertical has **expanded**, driven by **growth initiatives** and **synergies** from the acquisition of Modernize[81](index=81&type=chunk) - The business is subject to **seasonality**; the second fiscal quarter (ending Dec 31) is typically **weaker**, while the third fiscal quarter (ending Mar 31) is generally **stronger** due to new client budgets[85](index=85&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Provides a detailed comparison of operational results for the three and nine months ended March 31, 2023, versus the prior year, covering revenue and expenses Revenue Change by Vertical (Q3 FY23 vs Q3 FY22) | Vertical | Change ($M) | Change (%) | | :--- | :--- | :--- | | Financial Services | +$11.9 | +11% | | Home Services | +$9.6 | +24% | | **Total Net Revenue** | **+$22.0** | **+15%** | Revenue Change by Vertical (Nine Months FY23 vs FY22) | Vertical | Change ($M) | Change (%) | | :--- | :--- | :--- | | Home Services | +$25.5 | +22% | | Financial Services | -$11.8 | -4% | | **Total Net Revenue** | **+$14.7** | **+3%** | - Gross profit margin for Q3 FY23 increased to **10%** from **9%** YoY, but for the nine-month period, it decreased to **8%** from **10%** YoY, primarily due to increased personnel costs as a percentage of revenue[109](index=109&type=chunk)[110](index=110&type=chunk) - Operating expenses increased by **42%** for the third quarter and **20%** for the nine-month period year-over-year, mainly due to higher personnel costs, including increased headcount, salary increases, and stock-based compensation[111](index=111&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk)[116](index=116&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's liquidity and capital resources, including cash position, primary uses of cash, and management's assessment of future sufficiency - As of March 31, 2023, principal sources of liquidity consisted of cash and cash equivalents of **$63.0 million**[120](index=120&type=chunk) - For the nine months ended March 31, 2023, net cash used in operating activities was **$6.1 million**, compared to **$21.0 million** provided by operating activities in the same period of 2022. This change was primarily due to a net loss and an increase in accounts receivable[124](index=124&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - Under its stock repurchase program, the company repurchased **$3.1 million** of its common stock in the first quarter of fiscal 2023. As of March 31, 2023, approximately **$20.0 million** remained available for future repurchases[123](index=123&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details the company's primary market risk exposure from interest rate fluctuations on cash equivalents and management's assessment of its materiality - The company's main market risk is **interest rate risk** on its cash equivalents held in money market funds[139](index=139&type=chunk)[140](index=140&type=chunk) - Management believes the exposure to interest rate changes is **not material** due to the short-term nature of its investments. A hypothetical **1% decline** in interest rates would not have a material effect on the financial statements[140](index=140&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of March 31, 2023, the company's disclosure controls and procedures were **effective** at the reasonable assurance level[141](index=141&type=chunk) - **No material changes** to the company's internal control over financial reporting were identified during the quarter[142](index=142&type=chunk) [PART II. OTHER INFORMATION](index=30&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, which management does not believe will have a material adverse effect on future financial results - The company does **not believe** that the final outcome of any pending or threatened legal proceedings will have a **material adverse effect** on its future financial results[144](index=144&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) Details numerous risks associated with the company's business, industry, and stock ownership, including client concentration, data security, and regulatory compliance [Risks Related to Our Business and Industry](index=31&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) Outlines operational and industry-specific risks, including client reliance, third-party dependence, data security breaches, and the impact of complex regulations - A substantial portion of revenue is generated from a limited number of clients, with one client accounting for **23%** of net revenue for the nine months ended March 31, 2023[154](index=154&type=chunk) - The company **depends on internet search companies** to direct a significant portion of visitors, and changes in search engine algorithms could **harm website placements and reduce revenue**[162](index=162&type=chunk) - The business is exposed to **online data privacy and security risks**, as it gathers and stores personally identifiable information, making it **subject to federal, state, and foreign laws and potential cyber-attacks**[158](index=158&type=chunk)[159](index=159&type=chunk) - The business is subject to **highly complex laws and regulations**, such as the TCPA for telemarketing and the CCPA/CPRA for data privacy, which are **costly to comply with** and could lead to **significant penalties** if violated[169](index=169&type=chunk)[170](index=170&type=chunk) [Risks Related to Our Intellectual Property](index=45&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) Discusses risks associated with protecting the company's proprietary technology, defending against infringement claims, and potential liability for content creation and distribution - The company's ability to compete effectively depends on its **proprietary systems and technology**, which it protects using patent, trade secret, trademark, and copyright law[211](index=211&type=chunk) - The company may be subject to **legal proceedings and claims of infringing** on the intellectual property rights of third parties, which could be **costly to defend** and result in **substantial damages or changes to business practices**[213](index=213&type=chunk)[215](index=215&type=chunk) - As a creator and distributor of content, the company faces **potential liability** for claims based on the nature of the materials it distributes, including **defamation, deceptive advertising, or copyright infringement**[217](index=217&type=chunk) [Risks Related to the Ownership of Our Common Stock](index=47&type=section&id=Risks%20Related%20to%20the%20Ownership%20of%20Our%20Common%20Stock) Covers risks for investors, including stock price volatility, the stock repurchase program, dividend policy, and anti-takeover provisions that could discourage favorable takeovers - The trading price of the company's common stock has been **volatile** and may continue to **fluctuate significantly** in the future[219](index=219&type=chunk) - The stock repurchase program does **not obligate** the company to repurchase a specific number of shares and could be **suspended or terminated** at any time, potentially **increasing price volatility**[224](index=224&type=chunk) - The company may be subject to **short-selling strategies**, where negative opinions are published to **drive down the market price** of the common stock[225](index=225&type=chunk) - The company **does not intend to pay dividends** on its common stock in the near term; therefore, returns will **depend on capital appreciation**[233](index=233&type=chunk) [General Risk Factors](index=51&type=section&id=General%20Risk%20Factors) Covers broader risks, including potential adverse impacts from the COVID-19 pandemic, counterparty risks, reliance on management, and potential damage to reputation - The business could be **materially and adversely impacted** by the effects of the COVID-19 pandemic and its aftermath, including **negative macroeconomic effects and reduced client budgets**[234](index=234&type=chunk)[235](index=235&type=chunk) - The company is subject to **counterparty risks**, where clients, third-party publishers, or strategic partners may **fail to perform their contractual obligations** due to economic or other factors beyond the company's control[241](index=241&type=chunk) - The company's success **depends on the continued services** of its management team and other key employees, and the **loss of such personnel could harm the business**[242](index=242&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no unregistered sales of equity securities and no purchases of its equity securities during the period covered by this report - There were **no unregistered sales** of equity securities during the period[251](index=251&type=chunk) - There were **no purchases** of equity securities by QuinStreet, Inc. during the period[252](index=252&type=chunk) [Other Information](index=54&type=section&id=Item%205.%20Other%20Information) Indicates no other information to report for this item - **None**[255](index=255&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-34628 QuinStreet, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 77-0512121 (State or Other Jurisdiction of (I.R.S. E ...

QuinStreet, Inc. (NASDAQ:QNST) Q2 2023 Earnings Conference Call February 8, 2023 5:00 PM ET Company Participants Doug Valenti - Chief Executive Officer Greg Wong - Chief Financial Officer Conference Call Participants Jason Kreyer - Craig-Hallum John Campbell - Stephens Max Michaelis - Lake Street Capital Markets Jim Goss - Barrington Research Chris Sakai - Singular Research Operator Thank you for joining QuinStreet's Second Quarter Fiscal 2023 Earnings Call. Today's call will be recorded. Today we're joined ...

QuinStreet, Inc. (NASDAQ:QNST) Q1 2023 Results Conference Call November 3, 2022 4:30 PM ET Company Participants Doug Valenti - Chairman, President and CEO Greg Wong - CFO Conference Call Participants Jason Kreyer - Craig-Hallum John Campbell - Stephens Inc. Eric Martinuzzi - Lake Street Chris Sakai - Singular Research Operator Good day and welcome to the QuinStreet First Quarter Fiscal 2023 conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to [Lain ...

QuinStreet Nasdaq: QNST POWERING THE PERFORMANCE MARKETING CHANNEL SEO/SEM MOBILE CALLS SOCIAl INVESTOR PRESENTATION QS Q4 FY22 UPDATE | CONFIDENTIAL Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties. All statements other than statements of historical facts in these slides and the accompanying oral presentation, including statements regardin ...