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]

Revenue Growth - Record quarterly revenue of $279 million, up 125% YoY[1] - Auto insurance quarterly revenue increased by 664% YoY[1] - Home services quarterly revenue grew by 32% YoY[1] - Financial Services revenue grew 192% YoY in the quarter[3] - Financial Services revenue increased to $210,891 thousand from $72,125 thousand, a 192.4% growth[24] - Home Services revenue grew to $65,075 thousand from $49,394 thousand, a 31.7% increase[24] - Total net revenue rose to $279,219 thousand from $123,923 thousand, a 125.3% year-over-year growth[24] Adjusted EBITDA and Net Income - Adjusted EBITDA for the fiscal first quarter was $20.3 million[2] - Adjusted EBITDA improved significantly to $20,317 thousand from $984 thousand in the previous year[22] - Adjusted net income for the fiscal first quarter was $12.5 million, or $0.22 per diluted share[2] - Expected Q2 revenue between $235 and $245 million, and adjusted EBITDA between $17.5 and $18.5 million[4] - Full fiscal year adjusted EBITDA expected to be between $75 million and $80 million[5] Financial Outlook - Expected Q2 revenue between $235 and $245 million, and adjusted EBITDA between $17.5 and $18.5 million[4] - Raised full fiscal year 2025 revenue outlook to between $975 million and $1.025 billion[5] - Full fiscal year adjusted EBITDA expected to be between $75 million and $80 million[5] Expenses - Cost of revenue increased to $2,875 thousand from $2,052 thousand, reflecting a 40.1% year-over-year growth[19] - Product development expenses rose to $1,046 thousand from $773 thousand, a 35.3% increase[19] - Sales and marketing expenses grew to $1,095 thousand from $640 thousand, up 71.1%[19] - General and administrative expenses surged to $3,391 thousand from $1,810 thousand, an 87.3% increase[19] Cash Flow and GAAP Loss - Net cash used in operating activities was $(13,706) thousand, compared to $(4,973) thousand in the prior year[20] - Normalized free cash flow improved to $18,065 thousand from $(4,971) thousand in the prior year[23] - GAAP loss for the fiscal first quarter was $1.4 million, or $(0.02) per diluted share[2]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Group 1: Company Overview - QuinStreet (QNST) currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Group 2: Price Performance - QNST shares have increased by 3.06% over the past week, matching the performance of the Zacks Internet - Delivery Services industry [6] - Over the past month, QNST's price has risen by 11.44%, significantly outperforming the industry's 4.13% [6] - In the last quarter, QNST shares have surged by 23.11%, and over the past year, they have gained 117.38%, compared to the S&P 500's increases of 4.07% and 28.21% respectively [7] Group 3: Trading Volume - The average 20-day trading volume for QNST is 344,611 shares, which serves as a bullish indicator when combined with rising stock prices [8] Group 4: Earnings Outlook - In the past two months, 3 earnings estimates for QNST have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $0.60 to $0.61 [10] - For the next fiscal year, there have been 3 upward revisions with no downward changes, indicating positive earnings momentum [10]

Financial Data and Key Metrics - Total company revenue grew 52% year-over-year to a record $198 million in Q4 [4] - Adjusted EBITDA jumped about 500% year-over-year in Q4 to over $11 million [4] - The company ended the year with $50.5 million in cash and no bank debt [8] - For Q1, revenue is expected to be between $220 million and $230 million, representing 82% year-over-year growth at the midpoint [6] - Adjusted EBITDA for Q1 is expected to be $14 million to $16 million, growth of over 1400% at the midpoint [6] - Full fiscal year 2025 revenue is expected to be between $800 million and $850 million, growth of 34% year-over-year at the midpoint [6] - Full fiscal year 2025 adjusted EBITDA is expected to be $50 million to $60 million, growth of 170% year-over-year at the midpoint [6] Business Line Data and Key Metrics - Auto Insurance revenue grew over 200% year-over-year in Q4 [4] - Non-insurance Financial Services client verticals grew 13% year-over-year in Q4 [4] - Home Services grew 12% year-over-year in Q4 [4] - Financial Services client vertical represented 69% of Q4 revenue and grew 82% year-over-year to $136.9 million [8] - Home Services client vertical represented 30% of Q4 revenue and grew 12% year-over-year to $59.3 million [8] - For full fiscal year 2024, Financial Services client vertical represented 64% of revenue and grew 3% year-over-year to $392.6 million [8] - Home Services client vertical represented 35% of full fiscal year revenue and grew 10% year-over-year to $211.9 million [8] Market Data and Key Metrics - Auto Insurance carriers continue to report attractive financial results and are still ramping their spend, with demand being broad-based [4][7] - The shift to digital performance marketing has returned as the dominant theme driving long-term channel and market growth in Auto Insurance [5][7] - The company is seeing strength across both direct carriers and agent-driven carriers in Auto Insurance [23] - The independent agency channel in Auto Insurance is still lagging, as carriers are just starting to get products back into the market [24] Company Strategy and Industry Competition - The company expects strong revenue growth and margin expansion in fiscal Q1 and full fiscal year 2025, driven by the re-ramp of Auto Insurance and continued momentum in non-insurance client verticals [5][9] - The company is focused on optimizing media supply to align with the surge in demand in Auto Insurance [5][35] - The company believes there are opportunities to scale revenue and expand margins further than current guidance suggests [6][34] - The company is well-positioned to benefit from the shift to digital performance marketing in Auto Insurance, as most carriers are still below where they should be in terms of online spend [48][49] Management Commentary on Operating Environment and Future Outlook - Management expects all businesses to grow at strong double-digit rates in fiscal 2025, with no deceleration anticipated [13][14] - The company is confident in continued progress and performance across all client verticals, with Auto Insurance expected to remain very strong [5][14] - Management believes the company is well-positioned for any economic scenario, including a potential recession, as it has grown through past recessions [39][43] - The company expects consumer shopping in Auto Insurance to remain high due to inflation and rate increases, which should be a tailwind for the industry [51][52] Other Important Information - The company is preparing for TCPA one-to-one consent regulations that will impact 20% to 30% of its business, mainly in Home Services, but believes the impact is well-accounted for in its outlook [25][26][28] - The company sees the TCPA regulations as a long-term positive for the channel and for QuinStreet, as it will clean up the market and make leads more effective and valuable [29][30] - The company is always looking for M&A opportunities, particularly in the small to midsized players on the media client or technology side of the industry, but nothing is imminent [37][38] Q&A Summary John Campbell (Stephens) - Asked about potential deceleration in Home Services or non-auto businesses, to which management responded that no deceleration is expected and all businesses are expected to grow at strong double-digit rates [12][13] - Asked about industry consolidation and margin opportunities, with management noting that 10% margins are still the target and that consolidation is a complicated question with potential barriers [15][16][17][19] Zach Cummins (B Riley Securities) - Asked about strength among Auto Insurance carriers, with management noting broad-based demand across carriers and products, but that no carrier is back to pre-COVID peak levels [22][23][24] - Asked about TCPA regulations and their impact on Home Services, with management detailing preparations and the expected long-term benefits for the channel and QuinStreet [25][26][27][28][29][30] Jason Kreyer (Craig-Hallum) - Asked about opportunities to scale revenue and margins faster, with management noting potential upside based on current run rates and initiatives [33][34] - Asked about optimizing media supply, with management detailing efforts to right-price media and segment/match media to carriers [35][36] James Goss (Barrington Research) - Asked about M&A opportunities, with management noting nothing imminent but that the company is always looking and is a natural consolidator [37][38] - Asked about the impact of potential interest rate cuts, with management detailing expected dynamics across various businesses [39][40][41][42] - Asked about exposure to states avoiding new Auto Insurance policies, with management noting no material exposure [44][45] - Asked about new verticals, with management detailing plans to add new trades in Home Services, segments in banking, and areas in insurance [46] Chris Sakai (Singular Research) - Asked about the growth potential of Auto Insurance, with management noting the massive market opportunity as spend shifts online and detailing expansion into commercial insurance and other areas [48][49][50] - Asked about the impact of fires and storms on insurance revenue, with management noting record shopping levels due to inflation and rate increases, but limited carrier willingness to cover California [51][52]

Group 1 - QuinStreet reported quarterly earnings of $0.11 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.01 per share a year ago [1] - The company achieved revenues of $198.32 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 5.63%, and up from $130.31 million year-over-year [2] - QuinStreet's shares have increased approximately 43.2% since the beginning of the year, outperforming the S&P 500's gain of 9% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $173.34 million, and for the current fiscal year, it is $0.61 on revenues of $743.71 million [7] - The Internet - Delivery Services industry, to which QuinStreet belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - Net revenue decreased by $4.1 million, or 2%, for the three months ended March 31, 2024, compared to the same period in 2023, primarily due to a $8.0 million decrease in the financial services client vertical[123]. - For the nine months ended March 31, 2024, net revenue decreased by $35.1 million, or 8%, with a $48.8 million decrease in the financial services client vertical, partially offset by a $12.6 million increase in the home services client vertical[124]. - The company recorded a net loss of $7.0 million, or 4.3%, for the three months ended March 31, 2024, compared to a net loss of $479,000, or 0.3%, for the same period in 2023[122]. - The net loss for the nine months ended March 31, 2024 was $29.2 million, with non-cash adjustments totaling $37.4 million[141]. Revenue Sources - Financial services client vertical represented 67% and 62% of net revenue for the three and nine months ended March 31, 2024, compared to 70% and 68% for the same periods in 2023[93]. - One client in the financial services vertical accounted for 15% of net revenue for the three months ended March 31, 2024, down from 25% in the same period of 2023[94]. - Revenue from the home services vertical represented 32% and 37% of net revenue for the three and nine months ended March 31, 2024, compared to 29% and 31% for the same periods in 2023[93]. - Revenue from the home services client vertical increased by $3.6 million, or 7%, for the three months ended March 31, 2024, due to increased client budgets[123]. - The company generates revenue primarily from fees earned through the delivery of qualified inquiries such as clicks, leads, calls, applications, or customers[108]. Costs and Expenses - Cost of revenue consists mainly of media and marketing costs, which include fees paid to third-party publishers and media owners[109]. - Cost of revenue decreased by $1.4 million, or 1%, for the three months ended March 31, 2024, primarily driven by decreased media and marketing costs[125]. - Gross profit margin was 8% for the three months ended March 31, 2024, down from 10% in the same period of 2023, attributed to increased compensation costs and depreciation[125]. - Operating expenses increased by $1.2 million, or 17%, for the three months ended March 31, 2024, primarily due to increased stock-based compensation expense[131]. - General and administrative expenses increased by $1.0 million, or 5%, for the nine months ended March 31, 2024, primarily due to increased stock-based compensation expense[132]. Strategic Initiatives - The company completed several strategic acquisitions, including BestCompany and AquaVida in fiscal year 2024, to enhance its market position[99]. - The home services client vertical has been expanding, driven by successful growth initiatives and synergies from the acquisition of Modernize[97]. - The company aims to create revenue growth from sustainable sources while achieving target levels of profitability, rather than maximizing short-term profits[91]. Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2024, totaled $39.6 million, with liquidity maintained in highly liquid investments[135]. - Cash used in operating activities was $4.5 million for the nine months ended March 31, 2024, compared to cash provided by operating activities of $6.1 million for the same period in 2023[140]. - Cash used in investing activities was $19.1 million for the nine months ended March 31, 2024, compared to $10.7 million for the same period in 2023[145]. - Cash used in financing activities was $10.5 million for the nine months ended March 31, 2024, a decrease from $16.7 million in the same period of 2023[148]. - The company may consider obtaining debt financing or issuing additional equity securities for various reasons, despite not needing additional funds for anticipated liquidity requirements[136]. - The company authorized a new stock repurchase program allowing the repurchase of up to $40.0 million worth of common stock, with $1.6 million and $0.6 million spent in the first and second quarters of fiscal year 2024 respectively[137]. - As of March 31, 2024, approximately $16.8 million remained available for stock repurchases under the board authorization[137]. Working Capital and Accounts Receivable - The increase in accounts receivable for the nine months ended March 31, 2024 was $32.6 million, primarily due to higher revenue levels[141]. - The company reported a net decrease in cash from changes in working capital of $12.8 million for the nine months ended March 31, 2024[141]. Market Conditions - Increased competition for high-quality media and changes in search engine algorithms have posed challenges to the financial services vertical[95]. - The business is affected by seasonality, with typically lower media availability and client budgets in the second fiscal quarter[103]. - The company does not have material exposure to changes in interest rates due to the short-term nature of its investments[155].

Financial Data and Key Metrics Changes - Company revenue grew approximately 40% sequentially in fiscal Q3, reaching $168.6 million, driven by increased auto insurance carrier spending [5][12] - Adjusted EBITDA increased to nearly $8 million in FYQ3, with expectations for continued growth in adjusted EBITDA margin and dollars as revenue ramps up [7][12] - For fiscal Q4, the company expects revenue between $180 million and $190 million, indicating a year-over-year growth of over 40% at the midpoint [7][15] Business Line Data and Key Metrics Changes - The financial services client vertical accounted for 67% of Q3 revenue, totaling $112 million, while the home services vertical represented 32% of revenue, reaching a record $54 million [13] - The company anticipates continued growth in auto insurance revenue as carriers expand their product offerings and market presence [6][12] Market Data and Key Metrics Changes - The company reported a significant positive inflection in auto insurance client spending, which is expected to continue in the coming quarters [5][6] - The overall market for home services is projected to be a $69 billion addressable market, with expectations for double-digit growth in this vertical [40][41] Company Strategy and Development Direction - The company is focused on leveraging the ramp in auto insurance spending and expanding its diversified portfolio of client verticals to drive revenue and profit growth [9][16] - There is an emphasis on scaling existing trades in home services while exploring opportunities in new verticals [56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the business and the potential for record revenue in fiscal Q4, alongside further margin expansion [9][16] - The company expects to see sequential growth every quarter in the next fiscal year, despite historical seasonality [24][26] Other Important Information - The company closed the quarter with $40 million in cash and equivalents, with no bank debt, indicating a strong financial position [14] - Adjusted net income for Q3 was reported at $3.4 million, or $0.06 per share [12] Q&A Session Summary Question: What revenue level is needed to return to low double-digit EBITDA margins? - Management indicated that it is difficult to pinpoint the exact revenue level needed, but they expect to reach mid- to high single-digit margins next quarter, with potential for low double-digit margins in the next fiscal year [21][22] Question: Can you provide updates on the recovery in insurance spending and its impact? - Management noted that they have seen consistent month-over-month growth in insurance spending, with expectations for continued growth in the upcoming quarters [24][25] Question: What is the status of the QRP product and its growth potential? - Management acknowledged that QRP had been dormant during the downturn but is now ramping up with two major clients expected to go live soon, indicating a positive outlook for future growth [32] Question: Are there any limitations on flow-through from media costs or talent retention? - Management stated that there are no structural limitations affecting top-line leverage, and they are fully staffed to take advantage of the insurance market recovery [33] Question: What are the expectations for sustainable growth in the home services vertical? - Management expects to return to double-digit year-over-year growth in home services, with a significant addressable market and strong demand [40][41] Question: How is the higher interest rate environment impacting different business verticals? - Management indicated that the higher interest rates have mixed effects, with some verticals benefiting from increased consumer spending while others, like personal loans, are seeing reduced demand [47][48] Question: What is the expected conversion from adjusted EBITDA to free cash flow? - Management indicated that the typical conversion from adjusted EBITDA to free cash flow is strong, with expected CapEx running between $11 million and $15 million annually [42]

Exhibit 99.1 QuinStreet Reports Results for Third Quarter Fiscal 2024 FOSTER CITY, CA – May 8, 2024 – QuinStreet, Inc. (Nasdaq: QNST), a leader in performance marketplaces and technologies for the financial services and home services industries, today announced financial results for the fiscal third quarter ended March 31, 2024. For the fiscal third quarter, the Company reported revenue of $168.6 million. GAAP net loss for the fiscal third quarter was $(7.0) million, or $(0.13) per diluted share. Adjusted n ...

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, 2023 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 2024 Earnings Conference Call February 7, 2024 5:00 PM ET Company Participants Robert Amparo - Senior Director, IR and Finance Doug Valenti - CEO Greg Wong - CFO Conference Call Participants John Campbell - Stephens Inc. Dan Day - B. Riley Securities Jim Goss - Barrington Research Jason Kreyer - Craig-Hallum Chris Sakai - Singular Research Operator Good day, and welcome to QuinStreet's Fiscal Second Quarter 2024 Financial Results Conference Call. Today's conference is being ...