In This Article:
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Revenue: $279.2 million for fiscal Q1 2025.
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Adjusted Net Income: $12.5 million or 22 cents per share.
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Adjusted EBITDA: $20.3 million for the quarter.
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Financial Services Revenue: $210.9 million, representing 76% of Q1 revenue, grew 192% year-over-year.
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Auto Insurance Revenue: Grew 664% year-over-year.
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Home Services Revenue: $65.1 million, representing 23% of Q1 revenue, grew 32% year-over-year.
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Cash and Equivalents: $25 million at quarter end, with a normalized view of $47 million.
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Q2 Revenue Outlook: Expected to be between $235 million and $245 million.
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Q2 Adjusted EBITDA Outlook: Expected to be between $17.5 million and $18.5 million.
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Full Fiscal Year 2025 Revenue Outlook: Expected to be between $975 million and $1.025 billion.
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Full Fiscal Year 2025 Adjusted EBITDA Outlook: Expected to be between $75 million and $80 million.
Release Date: November 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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QuinStreet Inc (NASDAQ:QNST) reported a significant revenue growth of 125% year-over-year and 41% sequentially for the fiscal first quarter of 2025.
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Auto insurance revenue saw an impressive increase of 664% year-over-year, reaching a record level.
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The company achieved record revenue in all client verticals, including insurance, home services, and non-insurance financial services.
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QuinStreet Inc (NASDAQ:QNST) has no bank debt and closed the quarter with $25 million in cash and equivalents.
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The company is well-prepared for upcoming FCC changes to TCPA rules, having tested and implemented strategies to adapt to the new regulations.
Negative Points
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The December quarter is expected to experience a typical seasonal decline due to reduced client staffing and budgets during the holidays.
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The company anticipates some disruption from FCC changes to TCPA rules, which may impact the industry and QuinStreet Inc (NASDAQ:QNST) during the transition period.
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There is uncertainty regarding the potential impact of the upcoming election on consumer behavior and revenue.
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QuinStreet Inc (NASDAQ:QNST) is maintaining a conservative outlook for the back half of the fiscal year due to various uncertainties, including the FCC changes and election impacts.
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The company experienced a delay in cash collections, with $22 million received just after the quarter ended, affecting the reported cash balance.
Q & A Highlights
Q: Can you confirm if QuinStreet's insurance revenue has doubled compared to the past fiscal Q1 peak? A: Gregory Wong, CFO, mentioned he doesn't have the exact figures but wouldn't be surprised if that were the case. The insurance business grew over 80% sequentially, and typically, there's about a 10% sequential decline in Q2 due to seasonality.