QuinStreet, Inc. (NASDAQ:QNST) Q2 2020 Earnings Conference Call February 5, 2020 5:00 PM ET Company Participants Erica Abrams - Investor Relations Douglas Valenti - Chairman and Chief Executive Officer Gregory Wong - Senior Vice President and Chief Financial Officer Conference Call Participants John Campbell - Stephens Inc. Jason Kreyer - Craig-Hallum Capital Group LLC James Goss - Barrington Research Associates, Inc. Robert Breza - Northland Capital Markets Adam Klauber - William Blair & Company, LLC Eric ...

Financial Data and Key Metrics Changes - Revenue for Q1 2020 increased 12% year-over-year to $126.6 million, marking a record revenue quarter [16] - Adjusted EBITDA was $9.4 million, representing 7.5% of revenue, while adjusted net income was $6.2 million or $0.12 per share on a fully diluted basis [17] - Cash balance grew by $8 million to $70.5 million by the end of the quarter [17] Business Line Data and Key Metrics Changes - Financial services client vertical accounted for 73% of Q1 revenue, growing 20% year-over-year to $92.9 million; excluding mortgage, this segment grew 32% year-over-year [17][18] - Education client vertical represented 14% of revenue but declined 22% year-over-year to $17.4 million due to the collapse of a major client [19] - Other client verticals, including home services and B2B, grew 25% year-over-year to $16.3 million, representing 13% of total revenue [20] Market Data and Key Metrics Changes - The largest client represented 18% of total revenue, with a reduction in concentration due to increased spending from other clients in the insurance sector [18] - A record number of insurance clients spent $1 million or more per month, indicating a trend of clients increasing their budgets for digital and performance marketplaces [18] Company Strategy and Development Direction - The company is maintaining its full fiscal year outlook for both revenue and EBITDA, expecting higher margins due to a mix shift towards higher margin businesses [7][10] - A strategic review process has been initiated to explore alternatives for enhancing shareholder value, with Goldman Sachs leading the review [12][14] - The company is optimistic about long-term market opportunities and is focused on expanding profitability through media optimization and ramping new businesses with SaaS-like margins [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong results in Q2, citing positive impacts from operational changes and a favorable economic environment [13][14] - The mortgage business remains a challenge, with expectations of a long recovery cycle, but management is optimistic about rebuilding this segment [34][36] - The company is seeing good momentum in other areas and expects to continue delivering double-digit revenue growth and expanding margins [24][41] Other Important Information - The company has a strong pipeline for its new QRP product, with expectations of significant revenue opportunities from contracts expected to be signed by the end of December [63][68] - Management emphasized the importance of media investments and optimization as part of their business model, which is expected to contribute to future growth [21][50] Q&A Session Summary Question: What does the strategic review imply? - Management stated that the review will consider a broad range of options, not limited to a sale or breakup, and aims to enhance shareholder value [27] Question: How will operational improvements affect margins? - Management indicated that operational changes have already positively impacted margins and are expected to continue doing so [72] Question: What is the outlook for the mortgage business? - Management acknowledged ongoing challenges in the mortgage sector but expressed optimism about rebuilding efforts [36][88] Question: What are the plans for the cash balance? - Management plans to be opportunistic with acquisitions and maintain a conservative financial profile, with no immediate plans for buybacks or dividends [78][82] Question: How much did CloudControlMedia and MyBankTracker contribute to revenue? - Management noted that it is difficult to quantify their contributions as they are integrated into the overall business [84] Question: What is the expected impact of the mortgage headwind next quarter? - Management expects the mortgage headwind to remain similar to the current quarter's impact [90]

QuinStreet, Inc. (NASDAQ:QNST) Q4 2019 Earnings Conference Call August 8, 2019 5:00 PM ET Company Participants Erica Abrams – Investor Relations Doug Valenti – Chief Executive Officer Greg Wong – Chief Financial Officer Conference Call Participants John Campbell – Stephens Jason Kreyer – Craig-Hallum Patrick Sholl – Barrington Research Adam Klauber – William Blair Eric Martinuzzi – Lake Street Chris Sakai – Singular Research Operator Good day, and welcome to the QuinStreet Fourth Quarter and Fiscal Year 201 ...

QuinStreet, Inc. (NASDAQ:QNST) Q3 2019 Earnings Conference Call May 9, 2019 5:00 PM ET Company Participants Erica Abrams - Investor Relations Doug Valenti - Chief Executive Officer Greg Wong - Chief Financial Officer Conference Call Participants Carter Trent - Stephens Jason Kreyer - Craig-Hallum Robert Breza - Northland Capital Markets Adam Klauber - William Blair Jim Goss - Barrington Research Chris Sakai - Singular Research Operator Good day and welcome to the QuinStreet Third Quarter 2019 Financial Resu ...

Financial Data and Key Metrics Changes - Total revenue increased by 19% year-over-year to $104.1 million, setting a new fiscal Q2 record for the company [13][16] - Adjusted EBITDA grew by 42% year-over-year to $9.3 million, representing a 9% margin [16][23] - Adjusted net income rose by 76% year-over-year to $6.5 million, or $0.12 per share on a fully diluted basis [16] - Normalized free cash flow for the quarter was $9.4 million, or 9% of revenue [16][25] Business Line Data and Key Metrics Changes - Financial Services represented 71% of Q2 revenue, growing 19% year-over-year to $74.4 million, with double and triple-digit growth in insurance, personal loans, credit cards, and banking [18] - Education segment accounted for 16% of Q2 revenue, growing 5% year-over-year to $16.2 million, impacted by budget loss from the largest client [19] - Other client verticals, representing 13% of Q2 revenue, grew 38% year-over-year to $13.5 million, driven by home services and B2B business growth [20] Market Data and Key Metrics Changes - The company expects significant year-over-year revenue declines in education and mortgage sectors in the latter half of fiscal 2019, while other verticals are expected to continue strong growth [11][21] - Excluding mortgage, the Financial Services vertical grew by 33% in the quarter [18] Company Strategy and Development Direction - The company emphasizes the long-term opportunity in digital media marketing, aiming to leverage its unique combination of products, networks, and technologies [9][10] - The focus remains on expanding market share in early-stage markets, particularly in home services and personal loans, which are seen as significant growth opportunities [20][83] Management Comments on Operating Environment and Future Outlook - Management acknowledges cyclical softness in the mortgage market and restructuring challenges in the education sector, but remains optimistic about growth in other verticals [11][21] - The company expects continued revenue growth in the range of 15% to 20% for the full fiscal year 2019, leaning towards the lower end due to challenges in specific sectors [21] Other Important Information - A one-time tax benefit of $49.4 million was recorded due to the reversal of a valuation allowance against deferred tax assets [23] - The company closed the quarter with $62.4 million in cash and equivalents, having grown cash by $12 million net of the AmOne acquisition [25] Q&A Session Summary Question: What was the contribution of AmOne to revenue? - Management indicated that the integration of AmOne is going well, and while exact numbers were not provided, overall growth in Financial Services remained solid [36] Question: What is the outlook for the education vertical? - Management expects significant declines in the education vertical due to the loss of the DCEH budget but remains optimistic about long-term growth potential [52][62] Question: How is the mortgage business performing? - Management noted that the cyclical downturn in the mortgage market is expected to continue impacting performance for the rest of the fiscal year [47] Question: What is the growth rate in the insurance vertical? - Management characterized growth in the insurance vertical as solid double digits, with some large carriers growing at higher rates than Progressive [68] Question: How is the personal loans market expected to perform? - Management expressed optimism about the long-term opportunity in personal loans, particularly following the acquisition of AmOne, which enhances their market coverage [83]