NASDAQ$QNST

QuinStreet Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

QuinStreet's Q1 2023 financial results were announced, revealing a mixed performance with revenue exceeding expectations but a net loss reported.

QuinStreet reported FYQ1 revenue of $143.6 million, exceeding the company's outlook. However, the company reported a GAAP net loss of $4.5 million, or ($0.08) per diluted share, but adjusted net income was $2.5 million, or $0.05 per diluted share.

  • FYQ1 revenue reached $143.6 million, surpassing the company's outlook.
  • Strong performance was observed in Home Services and Credit-driven client verticals.
  • The company was solidly cash flow positive with a strong balance sheet and no bank debt.
  • A positive inflection in Insurance revenue is still projected for January.

Headline financials

Total Revenue

$144M

Previous: $160M-10.0%
EPS (adj)

$0.05

Previous: $0.17-70.6%
Adjusted EBITDA

$4.82M

Previous: $13.4M-64.2%
Operating Cash Flow

$5.67M

No prior period
Capital Expenditures

-$476K

Previous: -$409K-16.4%
Free Cash Flow

-$4.99M

Previous: $2.68M-286.0%
Net Income

-$4.52M

Previous: $3.09M-246.0%
Operating Income

-$4.9M

Previous: $3.94M-224.4%
Gross Profit

$12.3M

Previous: $18.1M-31.8%
Cash & Equivalents

$88.4M

Previous: $106M-16.6%
Total Assets

$406M

Previous: $442M-8.2%
Stock-Based Comp

$5.27M

Previous: $4.91M+7.4%

Revenue & EPS history

QuinStreet · Revenue · Quarterly

$144M

Q1 2023-10%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

QuinStreet · $142M total across 2 segments · Q1 2023

  • Financial Services
    $95M-19.4%
  • Home Services
    $46.7M+16.9%

Forward guidance

The company expects trends from the past couple of quarters to continue into the December quarter with strength in Home Services and Credit-driven client verticals offsetting Auto Insurance. They anticipate a significant positive inflection in Auto Insurance beginning in January, leading to a return to strong revenue growth rates and re-expanding adjusted EBITDA margin in the second half of fiscal 2023.

Tailwinds

  • Strength in Home Services and Credit-driven client verticals is expected to continue.
  • A significant positive inflection in Auto Insurance is expected beginning in January.
  • Loss ratios are expected to reset in Auto Insurance.
  • Carriers are expected to benefit from rate increases.
  • Consumer shopping is expected to intensify in response to higher rates.

Headwinds

  • Revenue in fiscal Q2 is expected to be generally flat year-over-year.
  • Revenue in fiscal Q2 is expected to be about in line with typical seasonality sequentially.
  • Fiscal Q2 revenue is expected to be between $120 and $130 million.
  • Adjusted EBITDA in fiscal Q2 is expected to be approximately break-even.
  • Current full fiscal year revenue and adjusted EBITDA results are expected to be generally flat with, or better than, last fiscal year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+5.5%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+36.7%

Q2 2018

Best reaction

-28.0%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+2.8%-13.7%-10.6%
Q2 2026+10.7%-2.9%+10.1%
Q1 2026-0.6%+2.7%+4.3%
Q3 2025-14.5%-10.4%-12.1%
Q2 2025-4.3%-8.8%-27.3%
Q1 2025+7.1%+13.0%+12.8%
Q4 2024-7.0%-8.5%+1.4%
Q3 2024-2.7%-7.6%-12.7%
Q2 2024+14.5%+18.1%+17.8%
Q1 2024-1.1%-3.4%+11.5%
Q4 2023+9.8%+6.0%+2.5%
Q3 2023-16.3%-28.2%-5.0%
Q2 2023+15.4%+12.3%+2.8%
Q1 2023+17.9%+18.3%+26.7%
Q4 2022+18.6%+16.7%+14.8%
Q3 2022+12.3%+10.2%+27.1%
Q2 2022-28.0%-27.2%-27.5%
Q1 2022+16.4%+19.2%+17.4%
Q4 2021+7.8%+3.0%+5.9%
Q3 2021-8.5%-11.0%-10.9%
Q2 2021+11.1%+9.3%+5.1%
Q1 2021+4.1%-1.6%+11.7%
Q4 2020+7.2%+9.2%+16.8%
Q3 2020+9.6%+4.0%+14.5%
Q2 2020+14.2%+10.9%-14.0%
Q1 2020+17.7%+19.6%+19.8%
Q4 2019-26.5%-33.0%-28.6%
Q3 2019+6.5%+5.7%+11.9%
Q2 2019-21.6%-23.3%-32.1%
Q1 2019+19.1%+29.1%+17.5%
Q4 2018-10.3%-7.0%-2.9%
Q3 2018-6.7%-3.8%+10.3%
Q2 2018+36.7%+21.1%+38.1%
Q1 2018+24.0%+18.1%+44.8%
Q4 2017+5.1%+4.6%+38.2%
Q3 2017-2.5%-7.8%-2.5%
Q2 2017+2.5%-0.3%-0.9%
Q1 2017-8.6%-11.2%+16.1%
Q4 2016-8.1%-7.2%+0.0%
Q3 2016-9.6%
Q2 2016-9.6%
Q1 2016-8.2%
Q4 2015+2.1%
Q3 2015+5.8%
Q2 2015+20.9%
Q1 2015-6.0%
Q4 2014-2.8%
Q3 2014-12.2%
Q2 2014-10.7%
Q1 2014-5.1%
Q4 2013+1.4%
Q3 2013-2.0%
Q2 2013-0.9%
Q1 2013+1.3%
Q4 2012-0.7%
Q4 2010-0.7%
Q1 2011-0.7%
Q3 2011-0.9%
Q3 2012-15.2%
Q2 2012+3.1%
Q1 2012-20.4%
Q2 2011-20.4%
Q4 2011-20.4%
Q3 2010+1.1%

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