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Mar 31, 2023
QuinStreet Q3 2023 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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