NASDAQ$QNST
QuinStreet Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
QuinStreet's Q3 2023 revenue increased, driven by non-insurance growth and a surge in auto insurance, resulting in a record quarterly revenue and improved adjusted EBITDA.
QuinStreet reported a record quarterly revenue of $172.7 million, a 15% increase year-over-year. Non-insurance revenue grew by 34% year-over-year, representing 58% of the total revenue. The company's adjusted EBITDA was $9 million, up 30% year-over-year. However, the GAAP net loss for the quarter was $0.5 million, or ($0.01) per diluted share.
- Record quarterly revenue of $173 million, up 15% year-over-year, exceeding outlook.
- Auto insurance revenue surged, growing 53% sequentially.
- Non-insurance revenue increased 34% year-over-year, accounting for 58% of total revenue.
- Adjusted EBITDA reached $9 million, a 30% increase year-over-year, also exceeding outlook.
Headline financials
Revenue & EPS history
QuinStreet · Revenue · Quarterly
$173M
Revenue by segment
QuinStreet · $171M total across 2 segments · Q3 2023
- Financial Services$120M+11.0%70.5%
- Home Services$50.3M+23.5%29.5%
Forward guidance
The company expects continued strong growth in non-Insurance client verticals in FYQ4, but anticipates a sequential decline in auto insurance revenue. For full fiscal year 2023, revenue is expected to be $575 to $580 million, with adjusted EBITDA between $16 and $17 million. Double-digit growth rates are expected in fiscal year 2024.
Tailwinds
- Continued strong growth in non-Insurance client verticals in FYQ4, and beyond.
- Long arc of auto insurance spending is still up and to the right.
- Carriers will continue to adjust and adapt, and marketing budgets will continue to shift from offline to online.
- Most consumers shop the digital channel, and performance marketing is the most efficient spend for advanced marketers.
- Expect revenue and adjusted EBITDA to grow at double digit rates in fiscal 2024, and that we will be strongly cash flow positive.
Headwinds
- Auto insurance revenue to decline sequentially in FYQ4, as carriers are unexpectedly pausing to assess the results of the recent surge.
- Carriers are continuing to adjust to complex market conditions.
- Variability of certain items such as taxes, and income and expense from changes in fair value of contingent consideration from acquisitions.
- Any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.
- The Company's actual results may differ materially from those anticipated in these forward-looking statements.
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 Q3 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
| Quarter | Report date | Reaction (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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