QuinStreet Reports Fiscal Fourth Quarter and FY2023 Results
- Strong growth in non-insurance client verticals
- Positive outlook for FY2024 with double-digit revenue growth and significant inflection in auto insurance client spending
- Quarterly revenue down 11% YoY
-
Quarterly revenue of
$130 million - Continued strong performance in non-insurance client verticals
- Continued disciplined margin and expense management
- Solidly cash flow positive, strong balance sheet, no bank debt
For the fiscal fourth quarter, the Company reported revenue of
GAAP net loss for the fiscal fourth quarter was
Adjusted EBITDA for the fiscal fourth quarter was
For full fiscal year 2023, the Company reported revenue of
GAAP net loss for fiscal year 2023 was
Adjusted EBITDA for fiscal year 2023 was
For the fiscal fourth quarter, the Company generated
“We said last quarter that we would continue to make great progress broadening our footprint and delivering good results in non-insurance client verticals. We did that in fiscal Q4,” commented Doug Valenti, CEO of QuinStreet. “Non-insurance client vertical revenue grew at a strong double-digit rate, and we expect those businesses to grow at strong double-digit rates for the foreseeable future. These are enormous market opportunities. We also said last quarter that we would stay prepared to take full advantage of the return of auto insurance client spending when it comes. Our technology, products, and competitive position in auto insurance have never been better. We expect excellent operating leverage and financial inflection when auto insurance client budgets return. Finally, we said last quarter that we would maintain a strong financial foundation. And we did. Through continued margin and expense discipline, we generated solidly positive adjusted EBITDA and good cash flow in fiscal Q4, improving our already strong balance sheet.
“Moving to our outlook, for full fiscal year 2024, which began in July, we continue to expect that revenue and adjusted EBITDA will grow at double-digit rates year-over-year driven mainly by continued momentum in non-insurance client verticals. We expect a significant positive inflection in auto insurance client spending to begin in January. We will also, of course, maintain our strong balance sheet.
“For fiscal Q1, we expect revenue to be between
“Our longer-term outlook has never been better. We expect double-digit annual revenue growth rates due to continued strong performance in non-insurance businesses alone. Revenue from non-insurance businesses grew
Conference Call Today at 2:00 p.m. PT
The Company will host a conference call and corresponding live webcast at 2:00 p.m. PT. To access the conference call dial +1 888-886-7786 (domestic) or +1 416-764-8658 (international). A replay of the conference call will be available beginning approximately two hours after the completion of the call by dialing +1 844-512-2921 (domestic) or +1 412-317-6671 (international) and using passcode #65611073. The webcast of the conference call will be available live and via replay on the investor relations section of the Company's website at http://investor.quinstreet.com.
About QuinStreet
QuinStreet, Inc. (Nasdaq: QNST) is a leader in performance marketplaces and technologies for the financial services and home services industries. QuinStreet is a pioneer in delivering online marketplace solutions to match searchers with brands in digital media, and is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs.
Non-GAAP Financial Measures and Definitions of Client Verticals
This release and the accompanying tables include a discussion of adjusted EBITDA, adjusted net (loss) income, adjusted diluted net (loss) income per share and free cash flow and normalized free cash flow, all of which are non-GAAP financial measures that are provided as a complement to results provided in accordance with accounting principles generally accepted in
We believe adjusted EBITDA, adjusted net (loss) income and adjusted diluted net (loss) income per share are relevant and useful information because they provide us and investors with additional measurements to analyze the Company's operating performance.
Adjusted EBITDA is useful to us and investors because (i) we seek to manage our business to a level of adjusted EBITDA as a percentage of net revenue, (ii) it is used internally by us for planning purposes, including preparation of internal budgets; to allocate resources; to evaluate the effectiveness of operational strategies and capital expenditures as well as the capacity to service debt, (iii) it is a key basis upon which we assess our operating performance, (iv) it is one of the primary metrics investors use in evaluating Internet marketing companies, (v) it is a factor in determining compensation, (vi) it is an element of certain financial covenants under our historical borrowing arrangements, and (vii) it is a factor that assists investors in the analysis of ongoing operating trends. In addition, we believe adjusted EBITDA and similar measures are widely used by investors, securities analysts, ratings agencies and other interested parties in our industry as a measure of financial performance, debt-service capabilities and as a metric for analyzing company valuations.
We use adjusted EBITDA as a key performance measure because we believe it facilitates operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures (affecting interest expense), tax positions (such as the impact of changes in effective tax rates or fluctuations in permanent differences or discrete quarterly items), non-recurring charges, certain other items that we do not believe are indicative of core operating activities (such as litigation settlement expense, tax settlement expense, acquisition and divestiture costs, contingent consideration adjustment, restructuring costs and other income and expense) and the non-cash impact of depreciation expense, amortization expense and stock-based compensation expense.
With respect to our adjusted EBITDA guidance, the Company is not able to provide a quantitative reconciliation to the most directly comparable GAAP financial measure without unreasonable efforts due to the high variability, complexity and low visibility with respect to certain items such as taxes, and income and expense from changes in fair value of contingent consideration from acquisitions. We expect the variability of these items to have a potentially unpredictable and potentially significant impact on future GAAP financial results, and, as such, we also believe that any reconciliations provided would imply a degree of precision that would be confusing or misleading to investors.
Adjusted net (loss) income and adjusted diluted net (loss) income per share are useful to us and investors because they present an additional measurement of our financial performance, taking into account depreciation, which we believe is an ongoing cost of doing business, but excluding the impact of certain non-cash expenses (stock-based compensation, amortization of intangible assets, and contingent consideration adjustment), non-recurring charges and certain other items that we do not believe are indicative of core operating activities. We believe that analysts and investors use adjusted net income and adjusted diluted net income per share as supplemental measures to evaluate the overall operating performance of companies in our industry.
Free cash flow is useful to investors and us because it represents the cash that our business generates from operations, before taking into account cash movements that are non-operational, and is a metric commonly used in our industry to understand the underlying cash generating capacity of a company’s financial model. Normalized free cash flow is useful as it removes the fluctuations in operating assets and liabilities that occur in any given quarter due to the timing of payments and cash receipts and therefore helps investors understand the underlying cash flow of the business as a quarterly metric and the cash flow generation potential of the business model. We believe that analysts and investors use free cash flow multiples as a metric for analyzing company valuations in our industry.
We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables.
Legal Notice Regarding Forward-Looking Statements
This press release and its attachments contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties. Words such as “estimate,” “will,” “believe,” “expect,” “intend,” “outlook,” “potential,” “promises” and similar expressions are intended to identify forward-looking statements. These forward-looking statements include the statements in quotations from management in this press release, as well as any statements regarding the Company's anticipated financial results, growth and strategic and operational plans. The Company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may contribute to such differences include, but are not limited to: the Company’s ability to maintain and increase client marketing spend; the Company's ability, whether within or outside the Company’s control, to maintain and increase the number of visitors to its websites and to convert those visitors and those to its third-party publishers' websites into client prospects in a cost-effective manner; the Company's exposure to data privacy and security risks; the impact from risks and uncertainties relating to the COVID-19 pandemic and its aftermath; the impact of changes in industry standards and government regulation including, but not limited to investigation enforcement activities or regulatory activity by the Federal Trade Commission, the Federal Communications Commission, the Consumer Finance Protection Bureau and other state and federal regulatory agencies; the impact of changes in our business, our industry, and the current economic and regulatory climate on the Company’s quarterly and annual results of operations; the Company's ability to compete effectively against others in the online marketing and media industry both for client budget and access to third-party media; the Company’s ability to protect our intellectual property rights; and the impact from risks relating to counterparties on the Company's business. More information about potential factors that could affect the Company's business and financial results are contained in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission (“SEC”). Additional information will also be set forth in the Company's annual report on Form 10-K for the fiscal year ended June 30, 2023, which will be filed with the SEC. The Company does not intend and undertakes no duty to release publicly any updates or revisions to any forward-looking statements contained herein.
QUINSTREET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
||||||||
|
|
June 30, |
|
June 30, |
||||
|
|
2023 |
|
2022 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
73,677 |
|
|
$ |
96,439 |
|
Accounts receivable, net |
|
|
67,748 |
|
|
|
81,429 |
|
Prepaid expenses and other assets |
|
|
9,779 |
|
|
|
4,924 |
|
Total current assets |
|
|
151,204 |
|
|
|
182,792 |
|
Property and equipment, net |
|
|
16,749 |
|
|
|
9,311 |
|
Operating lease right-of-use assets |
|
|
3,536 |
|
|
|
6,801 |
|
Goodwill |
|
|
121,141 |
|
|
|
121,141 |
|
Other intangible assets, net |
|
|
38,700 |
|
|
|
49,696 |
|
Deferred tax assets, noncurrent |
|
|
— |
|
|
|
44,220 |
|
Other assets, noncurrent |
|
|
5,825 |
|
|
|
5,948 |
|
Total assets |
|
$ |
337,155 |
|
|
$ |
419,909 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
37,926 |
|
|
$ |
42,410 |
|
Accrued liabilities |
|
|
44,010 |
|
|
|
54,459 |
|
Deferred revenue |
|
|
9 |
|
|
|
341 |
|
Other liabilities |
|
|
7,875 |
|
|
|
12,369 |
|
Total current liabilities |
|
|
89,820 |
|
|
|
109,579 |
|
Operating lease liabilities, noncurrent |
|
|
1,261 |
|
|
|
3,858 |
|
Other liabilities, noncurrent |
|
|
16,273 |
|
|
|
20,472 |
|
Total liabilities |
|
|
107,354 |
|
|
|
133,909 |
|
Stockholders' equity: |
|
|
|
|
||||
Common stock |
|
|
54 |
|
|
|
53 |
|
Additional paid-in capital |
|
|
329,093 |
|
|
|
316,422 |
|
Accumulated other comprehensive loss |
|
|
(266 |
) |
|
|
(261 |
) |
Accumulated deficit |
|
|
(99,080 |
) |
|
|
(30,214 |
) |
Total stockholders' equity |
|
|
229,801 |
|
|
|
286,000 |
|
Total liabilities and stockholders' equity |
|
$ |
337,155 |
|
|
$ |
419,909 |
|
QUINSTREET, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net revenue |
|
$ |
130,312 |
|
|
$ |
146,502 |
|
|
$ |
580,624 |
|
|
$ |
582,099 |
|
Cost of revenue (1) |
|
|
119,713 |
|
|
|
134,742 |
|
|
|
532,101 |
|
|
|
528,368 |
|
Gross profit |
|
|
10,599 |
|
|
|
11,760 |
|
|
|
48,523 |
|
|
|
53,731 |
|
Operating expenses: (1) |
|
|
|
|
|
|
|
|
||||||||
Product development |
|
|
7,061 |
|
|
|
6,911 |
|
|
|
28,893 |
|
|
|
21,906 |
|
Sales and marketing |
|
|
2,891 |
|
|
|
3,269 |
|
|
|
12,542 |
|
|
|
11,042 |
|
General and administrative |
|
|
5,985 |
|
|
|
3,742 |
|
|
|
27,904 |
|
|
|
25,501 |
|
Operating loss |
|
|
(5,338 |
) |
|
|
(2,162 |
) |
|
|
(20,816 |
) |
|
|
(4,718 |
) |
Interest income |
|
|
231 |
|
|
|
3 |
|
|
|
296 |
|
|
|
10 |
|
Interest expense |
|
|
(164 |
) |
|
|
(258 |
) |
|
|
(790 |
) |
|
|
(1,075 |
) |
Other (expense) income, net |
|
|
(8 |
) |
|
|
(30 |
) |
|
|
(52 |
) |
|
|
21 |
|
Loss before income taxes |
|
|
(5,279 |
) |
|
|
(2,447 |
) |
|
|
(21,362 |
) |
|
|
(5,762 |
) |
(Provision for) benefit from income taxes |
|
|
(50,612 |
) |
|
|
(2,495 |
) |
|
|
(47,504 |
) |
|
|
514 |
|
Net loss |
|
$ |
(55,891 |
) |
|
$ |
(4,942 |
) |
|
$ |
(68,866 |
) |
|
$ |
(5,248 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(1.03 |
) |
|
$ |
(0.09 |
) |
|
$ |
(1.28 |
) |
|
$ |
(0.10 |
) |
Diluted |
|
$ |
(1.03 |
) |
|
$ |
(0.09 |
) |
|
$ |
(1.28 |
) |
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used in computing net loss per share: |
||||||||||||||||
Basic |
|
|
54,196 |
|
|
|
54,342 |
|
|
|
53,799 |
|
|
|
54,339 |
|
Diluted |
|
|
54,196 |
|
|
|
54,342 |
|
|
|
53,799 |
|
|
|
54,339 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
(1) Cost of revenue and operating expenses include stock-based compensation expense as follows: |
||||||||||||||||
Cost of revenue |
|
$ |
1,685 |
|
|
$ |
2,896 |
|
|
$ |
7,923 |
|
|
$ |
7,475 |
|
Product development |
|
|
655 |
|
|
|
1,078 |
|
|
|
2,880 |
|
|
|
2,575 |
|
Sales and marketing |
|
|
328 |
|
|
|
901 |
|
|
|
2,298 |
|
|
|
2,378 |
|
General and administrative |
|
|
63 |
|
|
|
1,741 |
|
|
|
5,685 |
|
|
|
6,078 |
|
QUINSTREET, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
June 30, |
|
June 30, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Cash Flows from Operating Activities |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(55,891 |
) |
|
$ |
(4,942 |
) |
|
$ |
(68,866 |
) |
|
$ |
(5,248 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
5,151 |
|
|
|
4,302 |
|
|
|
19,155 |
|
|
|
16,961 |
|
Provision for sales returns and doubtful accounts receivable |
|
1,848 |
|
|
|
202 |
|
|
|
2,745 |
|
|
|
581 |
|
Stock-based compensation |
|
2,731 |
|
|
|
6,616 |
|
|
|
18,786 |
|
|
|
18,506 |
|
Revaluation adjustment of contingent liability |
|
— |
|
|
|
(3,624 |
) |
|
|
— |
|
|
|
(926 |
) |
Non-cash lease expense |
|
(259 |
) |
|
|
(291 |
) |
|
|
(1,081 |
) |
|
|
(1,043 |
) |
Deferred income taxes |
|
50,474 |
|
|
|
2,028 |
|
|
|
47,214 |
|
|
|
(791 |
) |
Other adjustments, net |
|
(3 |
) |
|
|
125 |
|
|
|
(149 |
) |
|
|
482 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
36,011 |
|
|
|
(4,229 |
) |
|
|
10,936 |
|
|
|
5,543 |
|
Prepaid expenses and other current assets |
|
(997 |
) |
|
|
1,409 |
|
|
|
(4,802 |
) |
|
|
3,003 |
|
Other assets, noncurrent |
|
145 |
|
|
|
121 |
|
|
|
124 |
|
|
|
(788 |
) |
Accounts payable |
|
(3,208 |
) |
|
|
2,564 |
|
|
|
(4,770 |
) |
|
|
(2,885 |
) |
Accrued liabilities |
|
(18,041 |
) |
|
|
3,153 |
|
|
|
(7,122 |
) |
|
|
(5,031 |
) |
Deferred revenue |
|
9 |
|
|
|
257 |
|
|
|
(332 |
) |
|
|
308 |
|
Net cash provided by operating activities |
|
17,970 |
|
|
|
7,691 |
|
|
|
11,838 |
|
|
|
28,672 |
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
(1,024 |
) |
|
|
(466 |
) |
|
|
(3,062 |
) |
|
|
(2,842 |
) |
Business acquisitions, net of cash acquired |
|
— |
|
|
|
(797 |
) |
|
|
— |
|
|
|
(1,797 |
) |
Internal software development costs |
|
(3,446 |
) |
|
|
(1,188 |
) |
|
|
(11,942 |
) |
|
|
(4,672 |
) |
Other investing activities |
|
(1 |
) |
|
|
— |
|
|
|
(121 |
) |
|
|
86 |
|
Net cash used in investing activities |
|
(4,471 |
) |
|
|
(2,451 |
) |
|
|
(15,125 |
) |
|
|
(9,225 |
) |
Cash Flows from Financing Activities |
|
|
|
|
|
|
|
||||||||
Proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan |
|
14 |
|
|
|
582 |
|
|
|
3,219 |
|
|
|
1,854 |
|
Payment of withholding taxes related to release of restricted stock, net of share settlement |
|
(645 |
) |
|
|
(776 |
) |
|
|
(5,389 |
) |
|
|
(7,342 |
) |
Post-closing payments and contingent consideration related to acquisitions |
|
(1,235 |
) |
|
|
(2,800 |
) |
|
|
(11,643 |
) |
|
|
(12,559 |
) |
Repurchase of common stock |
|
(915 |
) |
|
|
(15,268 |
) |
|
|
(5,646 |
) |
|
|
(15,268 |
) |
Net cash used in financing activities |
|
(2,781 |
) |
|
|
(18,262 |
) |
|
|
(19,459 |
) |
|
|
(33,315 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(2 |
) |
|
|
(3 |
) |
|
|
(15 |
) |
|
|
(12 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
10,716 |
|
|
|
(13,025 |
) |
|
|
(22,761 |
) |
|
|
(13,880 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
62,976 |
|
|
|
109,478 |
|
|
|
96,453 |
|
|
|
110,333 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
73,692 |
|
|
$ |
96,453 |
|
|
$ |
73,692 |
|
|
$ |
96,453 |
|
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
$ |
73,677 |
|
|
$ |
96,439 |
|
|
$ |
73,677 |
|
|
$ |
96,439 |
|
Restricted cash included in other assets, noncurrent |
|
15 |
|
|
|
14 |
|
|
|
15 |
|
|
|
14 |
|
Total cash, cash equivalents and restricted cash |
$ |
73,692 |
|
|
$ |
96,453 |
|
|
$ |
73,692 |
|
|
$ |
96,453 |
|
QUINSTREET, INC. RECONCILIATION OF NET LOSS TO ADJUSTED NET (LOSS) INCOME (In thousands, except per share data) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
|
$ |
(55,891 |
) |
|
$ |
(4,942 |
) |
|
$ |
(68,866 |
) |
|
$ |
(5,248 |
) |
Amortization of intangible assets |
|
|
2,661 |
|
|
|
2,808 |
|
|
|
11,115 |
|
|
|
11,581 |
|
Stock-based compensation |
|
|
2,731 |
|
|
|
6,616 |
|
|
|
18,786 |
|
|
|
18,506 |
|
Acquisition and divestiture costs |
|
|
70 |
|
|
|
2 |
|
|
|
102 |
|
|
|
519 |
|
Contingent consideration adjustment |
|
|
— |
|
|
|
(3,624 |
) |
|
|
— |
|
|
|
(926 |
) |
Litigation settlement expense |
|
|
— |
|
|
|
(62 |
) |
|
|
6 |
|
|
|
34 |
|
Tax settlement expense |
|
|
(794 |
) |
|
|
— |
|
|
|
(755 |
) |
|
|
516 |
|
Restructuring costs |
|
|
28 |
|
|
|
12 |
|
|
|
212 |
|
|
|
138 |
|
Tax valuation allowance |
|
|
51,922 |
|
|
|
— |
|
|
|
51,922 |
|
|
|
— |
|
Tax impact after non-GAAP items |
|
|
(1,241 |
) |
|
|
1,149 |
|
|
|
(5,254 |
) |
|
|
(5,627 |
) |
Adjusted net (loss) income |
|
$ |
(514 |
) |
|
$ |
1,959 |
|
|
$ |
7,268 |
|
|
$ |
19,493 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted diluted net (loss) income per share |
|
$ |
(0.01 |
) |
|
$ |
0.04 |
|
|
$ |
0.13 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used in computing adjusted diluted net (loss) income per share |
|
|
54,196 |
|
|
|
54,934 |
|
|
|
54,978 |
|
|
|
55,481 |
|
QUINSTREET, INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (In thousands) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
|
$ |
(55,891 |
) |
|
$ |
(4,942 |
) |
|
$ |
(68,866 |
) |
|
$ |
(5,248 |
) |
Interest and other (income) expense, net |
|
|
(59 |
) |
|
|
285 |
|
|
|
546 |
|
|
|
1,044 |
|
Provision for (benefit from) income taxes |
|
|
50,612 |
|
|
|
2,495 |
|
|
|
47,504 |
|
|
|
(514 |
) |
Depreciation and amortization |
|
|
5,151 |
|
|
|
4,302 |
|
|
|
19,155 |
|
|
|
16,961 |
|
Stock-based compensation |
|
|
2,731 |
|
|
|
6,616 |
|
|
|
18,786 |
|
|
|
18,506 |
|
Acquisition and divestiture costs |
|
|
70 |
|
|
|
2 |
|
|
|
102 |
|
|
|
519 |
|
Contingent consideration adjustment |
|
|
— |
|
|
|
(3,624 |
) |
|
|
— |
|
|
|
(926 |
) |
Litigation settlement expense |
|
|
— |
|
|
|
(62 |
) |
|
|
6 |
|
|
|
34 |
|
Tax settlement expense |
|
|
(794 |
) |
|
|
— |
|
|
|
(755 |
) |
|
|
516 |
|
Restructuring costs |
|
|
28 |
|
|
|
12 |
|
|
|
212 |
|
|
|
138 |
|
Adjusted EBITDA |
|
$ |
1,848 |
|
|
$ |
5,084 |
|
|
$ |
16,690 |
|
|
$ |
31,030 |
|
QUINSTREET, INC. RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW AND NORMALIZED FREE CASH FLOW (In thousands) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net cash provided by operating activities |
|
$ |
17,970 |
|
|
$ |
7,691 |
|
|
$ |
11,838 |
|
|
$ |
28,672 |
|
Capital expenditures |
|
|
(1,024 |
) |
|
|
(466 |
) |
|
|
(3,062 |
) |
|
|
(2,842 |
) |
Internal software development costs |
|
|
(3,446 |
) |
|
|
(1,188 |
) |
|
|
(11,942 |
) |
|
|
(4,672 |
) |
Free cash flow |
|
$ |
13,500 |
|
|
$ |
6,037 |
|
|
$ |
(3,166 |
) |
|
$ |
21,158 |
|
Changes in operating assets and liabilities |
|
|
(13,919 |
) |
|
|
(3,275 |
) |
|
|
5,965 |
|
|
|
(150 |
) |
Normalized free cash flow |
|
$ |
(419 |
) |
|
$ |
2,762 |
|
|
$ |
2,799 |
|
|
$ |
21,008 |
|
QUINSTREET, INC. DISAGGREGATION OF REVENUE (In thousands) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net revenue: |
|
|
|
|
|
|
|
|
||||||||
Financial Services |
|
$ |
75,203 |
|
$ |
100,762 |
|
$ |
379,723 |
|
$ |
417,110 |
||||
Home Services |
|
|
53,137 |
|
|
|
44,295 |
|
|
|
193,133 |
|
|
|
158,805 |
|
Other Revenue |
|
|
1,972 |
|
|
|
1,445 |
|
|
|
7,768 |
|
|
|
6,184 |
|
Total net revenue |
|
$ |
130,312 |
|
|
$ |
146,502 |
|
|
$ |
580,624 |
|
|
$ |
582,099 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230809832850/en/
Investor Contact:
Robert Amparo
(347) 223-1682
ramparo@quinstreet.com
Source: QuinStreet, Inc.
