QuinStreet (QNST) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $198.3 million, up 52% year-over-year, and full-year revenue of $613.5 million, up 6% year-over-year.

• Auto insurance revenue grew over 200% year-over-year in Q4, driving overall growth, with strong double-digit gains in other verticals.

• Adjusted EBITDA for Q4 was $11.0 million, up about 500% year-over-year; full-year adjusted EBITDA reached $20.4 million.

• Ended the year with $50.5 million in cash and no bank debt, reflecting a strong balance sheet.

Financial highlights

• Q4 adjusted net income was $6.5 million, or $0.11 per share; Q4 GAAP net loss was $(2.2) million, or $(0.04) per diluted share.

• FY2024 GAAP net loss was $(31.3) million, or $(0.57) per share; adjusted net income was $6.3 million, or $0.11 per diluted share.

• Q4 gross profit was $17.4 million, up from $10.6 million in Q4 2023; full-year gross profit was $46.2 million.

• Financial services vertical represented 69% of Q4 revenue, growing 82% year-over-year to $136.9 million; home services vertical represented 30% of Q4 revenue, growing 12% year-over-year to $59.3 million.

• Free cash flow for Q4 was $12.9 million; normalized free cash flow was $7.2 million.

Outlook and guidance

• Q1 FY25 revenue expected between $220 million and $230 million, representing 82% year-over-year growth at midpoint.

• Q1 FY25 adjusted EBITDA expected between $14 million and $16 million, up over 1,400% at midpoint.

• FY25 revenue guidance of $800 million to $850 million (34% growth at midpoint); adjusted EBITDA of $50 million to $60 million (170% growth at midpoint).

• Management expects all business segments to grow at strong double-digit rates in FY25.