- FYQ4 revenue of $146.5MM,
a decrease of only 3% year-over-year
- Insurance client revenue stabilized in FYQ4
- Non-Insurance revenue was 56% of total and grew 26% YoY in
FYQ4
- Repurchased 1.7M shares of
common stock in FYQ4
- Solidly cash flow positive, with a strong balance
sheet
FOSTER
CITY, Calif., Aug. 3, 2022
/PRNewswire/ -- QuinStreet, Inc. (Nasdaq: QNST), a leader in
performance marketplaces and technologies for the financial
services and home services industries, today announced financial
results for the fiscal fourth quarter and fiscal year ended
June 30, 2022.
For the fiscal fourth quarter, the Company reported revenue of
$146.5 million, a decrease of 3%
year-over-year.
GAAP net loss for the fiscal fourth quarter was $4.9 million, or ($0.09) per diluted share. Adjusted net income
was $2.0 million, or $0.04 per diluted share.
Adjusted EBITDA for the fiscal fourth quarter was $5.1 million.
For fiscal year 2022, the Company reported revenue
of $582.1 million, an increase of 1% year-over-year.
GAAP net loss for fiscal year 2022 was $5.2 million,
or ($0.10) per share.
Adjusted net income was $19.5 million, or $0.35 per
diluted share.
Adjusted EBITDA for fiscal year 2022 was $31.0 million.
For fiscal year 2022, the Company generated $28.7
million in operating cash flow and closed the year
with $96.4 million in cash and equivalents and no bank
debt.
"Fiscal Q4 played out pretty much as expected," commented
Doug Valenti, CEO of QuinStreet.
"Our team executed well in a complicated environment. Auto
Insurance client vertical results were generally flat with February
and March, while non-insurance client verticals grew at a strong
double-digit rate year-over-year. We remained nicely adjusted
EBITDA and cash flow positive, with a strong balance
sheet.
Looking ahead, we expect Auto Insurance to essentially bounce
along a bottom for the next couple of quarters - our fiscal Q1 and
Q2 - as carriers continue the re-rating process. We expect a
positive inflection in Auto Insurance beginning in January as 1)
carrier combined ratios reset for the new calendar year and 2)
consumer shopping for insurance increases in response to higher
rates.
We expect our non-insurance client verticals to continue to grow
at strong double-digit rates throughout the new fiscal
year.
Overall, we expect revenue and adjusted EBITDA results for full
fiscal 2023 to be at least flat to fiscal 2022. We will, of course,
update our outlook for the full year as the year progresses.
For fiscal Q1, we expect revenue to be between $135 and $140
million and adjusted EBITDA to be between $3.0 and $3.4
million.
We expect to remain adjusted EBITDA and cash flow positive
throughout fiscal 2023, and to maintain our strong balance
sheet.
An update on our share re-purchase or buyback. We bought back
1.7 million shares of our stock or approximately 3% of the shares
outstanding last quarter for a total of $17
million."
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 +1 800-207-0148
(domestic) or +1 323-701-0170 (international) and use the passcode
462709. A replay of the conference call will be available beginning
approximately two hours after the completion of the call by dialing
+1 888-203-1112 (domestic) or +1 719-457-0820 (international) and
using the passcode 9611610. 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 income, adjusted
diluted net 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 the United States of America ("GAAP"). The
term "adjusted EBITDA" refers to a financial measure that we define
as net (loss) income less provision for (benefit from) income
taxes, depreciation expense, amortization expense, stock-based
compensation expense, interest and other expense, net, acquisition
and divestiture costs, gain on divestitures of businesses, net,
contingent consideration adjustment, litigation settlement expense,
tax settlement expense, and restructuring costs. The term "adjusted
net income" refers to a financial measure that we define as net
(loss) income adjusted for amortization expense, stock-based
compensation expense, acquisition and divestiture costs, gain on
divestitures of businesses, net, contingent consideration
adjustment, litigation settlement expense, tax settlement expense,
and restructuring costs, net of estimated taxes. The term "adjusted
diluted net income per share" refers to a financial measure that we
define as adjusted net income divided by weighted average diluted
shares outstanding. The term "free cash flow" refers to a financial
measure that we define as net cash provided by operating
activities, less capital expenditures and internal software
development costs. The term "normalized free cash flow" refers to
free cash flow less changes in operating assets and liabilities.
These non-GAAP measures should be considered in addition to results
prepared in accordance with GAAP, but should not be considered a
substitute for, or superior to, GAAP results. In addition, our
definition of adjusted EBITDA, adjusted net income, adjusted
diluted net income per share and free cash flow and normalized free
cash flow may not be comparable to the definitions as reported by
other companies.
We believe adjusted EBITDA, adjusted net income and adjusted
diluted net 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, gain or loss on divestitures of businesses,
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 without unreasonable
efforts to the most directly comparable GAAP financial measure 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 income and adjusted diluted net 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.
FY2020 results in our Education Client Vertical include revenue
from US, (historically) Brazil,
and India. Revenue in our
Financial Services Client Vertical includes Auto Insurance (auto,
home, motorcycle, and small business), Life Insurance, Health
Insurance, Personal Loans, Credit Cards, Banking, and
(historically) Mortgage. Revenue in our Other Client Vertical
includes Home Services and (historically) B2B. In fiscal Q3 2020,
we divested our B2B client vertical and Brazil operations. In fiscal Q4 2020, we
divested our Mortgage business. In fiscal Q1 2021, we divested our
Education business.
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 or
enforcement activities of the Federal Trade Commission and other
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,
2022, 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.
Investor Contact:
Erica
Abrams
(415) 297-5864
ir@quinstreet.com
QUINSTREET,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands) (Unaudited)
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
2022
|
|
|
2021
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
96,439
|
|
|
$
|
110,318
|
Accounts receivable,
net
|
|
|
81,429
|
|
|
|
87,928
|
Prepaid expenses and
other assets
|
|
|
4,924
|
|
|
|
7,930
|
Total current
assets
|
|
|
182,792
|
|
|
|
206,176
|
Property and equipment,
net
|
|
|
9,311
|
|
|
|
6,849
|
Operating lease
right-of-use assets
|
|
|
6,801
|
|
|
|
10,983
|
Goodwill
|
|
|
121,141
|
|
|
|
117,833
|
Other intangible
assets, net
|
|
|
49,696
|
|
|
|
59,177
|
Deferred tax assets,
noncurrent
|
|
|
44,220
|
|
|
|
43,336
|
Other assets,
noncurrent
|
|
|
5,948
|
|
|
|
5,161
|
Total
assets
|
|
$
|
419,909
|
|
|
$
|
449,515
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
42,410
|
|
|
$
|
45,231
|
Accrued
liabilities
|
|
|
54,459
|
|
|
|
57,650
|
Deferred
revenue
|
|
|
341
|
|
|
|
33
|
Other
liabilities
|
|
|
12,369
|
|
|
|
12,697
|
Total current
liabilities
|
|
|
109,579
|
|
|
|
115,611
|
Operating lease
liabilities, noncurrent
|
|
|
3,858
|
|
|
|
8,545
|
Other liabilities,
noncurrent
|
|
|
20,472
|
|
|
|
30,211
|
Total
liabilities
|
|
|
133,909
|
|
|
|
154,367
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common
stock
|
|
|
53
|
|
|
|
54
|
Additional paid-in
capital
|
|
|
316,422
|
|
|
|
320,315
|
Accumulated other
comprehensive loss
|
|
|
(261)
|
|
|
|
(255)
|
Accumulated
deficit
|
|
|
(30,214)
|
|
|
|
(24,966)
|
Total stockholders'
equity
|
|
|
286,000
|
|
|
|
295,148
|
Total liabilities and
stockholders' equity
|
|
$
|
419,909
|
|
|
$
|
449,515
|
QUINSTREET,
INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share
data) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Fiscal Year
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net revenue
|
|
$
|
146,502
|
|
|
$
|
151,198
|
|
|
$
|
582,099
|
|
|
$
|
578,487
|
|
Cost of revenue
(1)
|
|
|
134,742
|
|
|
|
132,623
|
|
|
|
528,368
|
|
|
|
507,956
|
|
Gross profit
|
|
|
11,760
|
|
|
|
18,575
|
|
|
|
53,731
|
|
|
|
70,531
|
|
Operating expenses:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
development
|
|
|
6,911
|
|
|
|
4,568
|
|
|
|
21,906
|
|
|
|
19,344
|
|
Sales and
marketing
|
|
|
3,269
|
|
|
|
2,688
|
|
|
|
11,042
|
|
|
|
10,991
|
|
General and
administrative
|
|
|
3,742
|
|
|
|
6,339
|
|
|
|
25,501
|
|
|
|
26,270
|
|
Operating (loss)
income
|
|
|
(2,162)
|
|
|
|
4,980
|
|
|
|
(4,718)
|
|
|
|
13,926
|
|
Interest
income
|
|
|
3
|
|
|
|
—
|
|
|
|
10
|
|
|
|
39
|
|
Interest
expense
|
|
|
(258)
|
|
|
|
(349)
|
|
|
|
(1,075)
|
|
|
|
(1,296)
|
|
Other (expense) income,
net
|
|
|
(30)
|
|
|
|
(35)
|
|
|
|
21
|
|
|
|
16,660
|
|
(Loss) income before
income taxes
|
|
|
(2,447)
|
|
|
|
4,596
|
|
|
|
(5,762)
|
|
|
|
29,329
|
|
(Provision for) benefit
from income taxes
|
|
|
(2,495)
|
|
|
|
(1,225)
|
|
|
|
514
|
|
|
|
(5,774)
|
|
Net (loss)
income
|
|
$
|
(4,942)
|
|
|
$
|
3,371
|
|
|
$
|
(5,248)
|
|
|
$
|
23,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.09)
|
|
|
$
|
0.06
|
|
|
$
|
(0.10)
|
|
|
$
|
0.44
|
|
Diluted
|
|
$
|
(0.09)
|
|
|
$
|
0.06
|
|
|
$
|
(0.10)
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used in computing net (loss) income per share:
|
|
Basic
|
|
|
54,342
|
|
|
|
53,702
|
|
|
|
54,339
|
|
|
|
53,166
|
|
Diluted
|
|
|
54,342
|
|
|
|
55,473
|
|
|
|
54,339
|
|
|
|
55,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Cost of
revenue and operating expenses include stock-based compensation
expense as follows:
|
|
Cost of
revenue
|
|
$
|
2,896
|
|
|
$
|
1,991
|
|
|
$
|
7,475
|
|
|
$
|
8,997
|
|
Product
development
|
|
|
1,078
|
|
|
|
571
|
|
|
|
2,575
|
|
|
|
2,339
|
|
Sales and
marketing
|
|
|
901
|
|
|
|
563
|
|
|
|
2,378
|
|
|
|
2,459
|
|
General and
administrative
|
|
|
1,741
|
|
|
|
1,317
|
|
|
|
6,078
|
|
|
|
5,838
|
|
QUINSTREET,
INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands)
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
Fiscal Year
Ended
|
|
June
30,
|
|
|
June
30,
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(4,942)
|
|
|
$
|
3,371
|
|
|
$
|
(5,248)
|
|
|
$
|
23,555
|
Adjustments to
reconcile net (loss) income to net
cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
4,302
|
|
|
|
4,191
|
|
|
|
16,961
|
|
|
|
16,201
|
Provision for (benefit
from) sales returns and
doubtful accounts receivable
|
|
202
|
|
|
|
12
|
|
|
|
581
|
|
|
|
(341)
|
Stock-based
compensation
|
|
6,616
|
|
|
|
4,442
|
|
|
|
18,506
|
|
|
|
19,633
|
Revaluation adjustment
of contingent liability
|
|
(3,624)
|
|
|
|
—
|
|
|
|
(926)
|
|
|
|
—
|
Non-cash lease
expense
|
|
(291)
|
|
|
|
(238)
|
|
|
|
(1,043)
|
|
|
|
(816)
|
Deferred income
taxes
|
|
2,028
|
|
|
|
1,145
|
|
|
|
(791)
|
|
|
|
5,408
|
Gain on divestitures
of businesses, net
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(16,615)
|
Other adjustments,
net
|
|
125
|
|
|
|
60
|
|
|
|
482
|
|
|
|
741
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(4,229)
|
|
|
|
(5,608)
|
|
|
|
5,543
|
|
|
|
(20,063)
|
Prepaid expenses and
other current assets
|
|
1,409
|
|
|
|
608
|
|
|
|
3,003
|
|
|
|
5,955
|
Other assets,
noncurrent
|
|
121
|
|
|
|
91
|
|
|
|
(788)
|
|
|
|
(173)
|
Accounts
payable
|
|
2,564
|
|
|
|
5,544
|
|
|
|
(2,885)
|
|
|
|
6,558
|
Accrued
liabilities
|
|
3,153
|
|
|
|
848
|
|
|
|
(5,031)
|
|
|
|
10,612
|
Deferred
revenue
|
|
257
|
|
|
|
(54)
|
|
|
|
308
|
|
|
|
(40)
|
Net cash provided by
operating activities
|
|
7,691
|
|
|
|
14,412
|
|
|
|
28,672
|
|
|
|
50,615
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(466)
|
|
|
|
(602)
|
|
|
|
(2,842)
|
|
|
|
(1,969)
|
Business acquisitions,
net of cash acquired
|
|
(797)
|
|
|
|
—
|
|
|
|
(1,797)
|
|
|
|
(49,304)
|
Internal software
development costs
|
|
(1,188)
|
|
|
|
(793)
|
|
|
|
(4,672)
|
|
|
|
(3,131)
|
Proceeds from
divestitures of businesses, net of cash
divested
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21,947
|
Purchases of equity
investment
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,000)
|
Other investing
activities
|
|
—
|
|
|
|
—
|
|
|
|
86
|
|
|
|
—
|
Net cash used in
investing activities
|
|
(2,451)
|
|
|
|
(1,395)
|
|
|
|
(9,225)
|
|
|
|
(36,457)
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of common stock options
|
|
582
|
|
|
|
204
|
|
|
|
1,854
|
|
|
|
4,357
|
Payment of withholding
taxes related to release of
restricted stock, net of share settlement
|
|
(776)
|
|
|
|
(1,462)
|
|
|
|
(7,342)
|
|
|
|
(7,980)
|
Post-closing payments
and contingent consideration
related to acquisitions
|
|
(2,800)
|
|
|
|
(4,669)
|
|
|
|
(12,559)
|
|
|
|
(7,689)
|
Stock
repurchases
|
|
(15,268)
|
|
|
|
—
|
|
|
|
(15,268)
|
|
|
|
—
|
Net cash used in
financing activities
|
|
(18,262)
|
|
|
|
(5,927)
|
|
|
|
(33,315)
|
|
|
|
(11,312)
|
Effect of exchange rate
changes on cash, cash
equivalents and restricted cash
|
|
(3)
|
|
|
|
26
|
|
|
|
(12)
|
|
|
|
(36)
|
Net (decrease)
increase in cash, cash equivalents
and restricted cash
|
|
(13,025)
|
|
|
|
7,116
|
|
|
|
(13,880)
|
|
|
|
2,810
|
Cash, cash equivalents
and restricted cash at
beginning of period
|
|
109,478
|
|
|
|
103,217
|
|
|
|
110,333
|
|
|
|
107,523
|
Cash, cash equivalents
and restricted cash at end of
period
|
$
|
96,453
|
|
|
$
|
110,333
|
|
|
$
|
96,453
|
|
|
$
|
110,333
|
Reconciliation of
cash, cash equivalents, and
restricted cash to the condensed consolidated
balance sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
96,439
|
|
|
$
|
110,318
|
|
|
$
|
96,439
|
|
|
$
|
110,318
|
Restricted cash
included in other assets, noncurrent
|
|
14
|
|
|
|
15
|
|
|
|
14
|
|
|
|
15
|
Total cash, cash
equivalents and restricted cash
|
$
|
96,453
|
|
|
$
|
110,333
|
|
|
$
|
96,453
|
|
|
$
|
110,333
|
QUINSTREET,
INC. RECONCILIATION OF NET (LOSS) INCOME
TO ADJUSTED NET INCOME (In thousands, except
per share data) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Fiscal Year
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net (loss)
income
|
|
$
|
(4,942)
|
|
|
$
|
3,371
|
|
|
$
|
(5,248)
|
|
|
$
|
23,555
|
|
Amortization of
intangible assets
|
|
|
2,808
|
|
|
|
3,024
|
|
|
|
11,581
|
|
|
|
11,870
|
|
Stock-based
compensation
|
|
|
6,616
|
|
|
|
4,442
|
|
|
|
18,506
|
|
|
|
19,633
|
|
Acquisition and
divestiture costs
|
|
|
2
|
|
|
|
45
|
|
|
|
519
|
|
|
|
811
|
|
Gain on divestitures
of businesses,
net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(16,615)
|
|
Contingent
consideration adjustment
|
|
|
(3,624)
|
|
|
|
—
|
|
|
|
(926)
|
|
|
|
—
|
|
Litigation settlement
expense
|
|
|
(62)
|
|
|
|
231
|
|
|
|
34
|
|
|
|
231
|
|
Tax settlement
expense
|
|
|
—
|
|
|
|
310
|
|
|
|
516
|
|
|
|
310
|
|
Restructuring
costs
|
|
|
12
|
|
|
|
43
|
|
|
|
138
|
|
|
|
1,076
|
|
Tax impact after
non-GAAP items
|
|
|
1,149
|
|
|
|
(2,185)
|
|
|
|
(5,627)
|
|
|
|
(4,762)
|
|
Adjusted net
income
|
|
$
|
1,959
|
|
|
$
|
9,281
|
|
|
$
|
19,493
|
|
|
$
|
36,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted net
income per
share
|
|
$
|
0.04
|
|
|
$
|
0.17
|
|
|
$
|
0.35
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used in
computing
adjusted diluted net income
per
share
|
|
|
54,934
|
|
|
|
55,473
|
|
|
|
55,481
|
|
|
|
55,129
|
|
QUINSTREET,
INC. RECONCILIATION OF NET (LOSS) INCOME
TO ADJUSTED EBITDA
(In thousands) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Fiscal Year
Ended
|
|
|
June
30,
|
|
|
June
30,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Net (loss)
income
|
|
$
|
(4,942)
|
|
|
$
|
3,371
|
|
|
$
|
(5,248)
|
|
|
$
|
23,555
|
Interest and other
expense, net
|
|
|
285
|
|
|
|
384
|
|
|
|
1,044
|
|
|
|
1,212
|
Provision for (benefit
from) income
taxes
|
|
|
2,495
|
|
|
|
1,225
|
|
|
|
(514)
|
|
|
|
5,774
|
Depreciation and
amortization
|
|
|
4,302
|
|
|
|
4,191
|
|
|
|
16,961
|
|
|
|
16,201
|
Stock-based
compensation
|
|
|
6,616
|
|
|
|
4,442
|
|
|
|
18,506
|
|
|
|
19,633
|
Acquisition and
divestiture costs
|
|
|
2
|
|
|
|
45
|
|
|
|
519
|
|
|
|
811
|
Gain on divestitures
of businesses,
net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(16,615)
|
Contingent
consideration adjustment
|
|
|
(3,624)
|
|
|
|
—
|
|
|
|
(926)
|
|
|
|
—
|
Litigation settlement
expense
|
|
|
(62)
|
|
|
|
231
|
|
|
|
34
|
|
|
|
231
|
Tax settlement
expense
|
|
|
—
|
|
|
|
310
|
|
|
|
516
|
|
|
|
310
|
Restructuring
costs
|
|
|
12
|
|
|
|
43
|
|
|
|
138
|
|
|
|
1,076
|
Adjusted
EBITDA
|
|
$
|
5,084
|
|
|
$
|
14,242
|
|
|
$
|
31,030
|
|
|
$
|
52,188
|
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,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Net cash provided by
operating
activities
|
|
$
|
7,691
|
|
|
$
|
14,412
|
|
|
$
|
28,672
|
|
|
$
|
50,615
|
Capital
expenditures
|
|
|
(466)
|
|
|
|
(602)
|
|
|
|
(2,842)
|
|
|
|
(1,969)
|
Internal software
development costs
|
|
|
(1,188)
|
|
|
|
(793)
|
|
|
|
(4,672)
|
|
|
|
(3,131)
|
Free cash
flow
|
|
$
|
6,037
|
|
|
$
|
13,017
|
|
|
$
|
21,158
|
|
|
$
|
45,515
|
Changes in operating
assets and
liabilities
|
|
|
(3,275)
|
|
|
|
(1,428)
|
|
|
|
(150)
|
|
|
|
(2,848)
|
Normalized free cash
flow
|
|
$
|
2,762
|
|
|
$
|
11,589
|
|
|
$
|
21,008
|
|
|
$
|
42,667
|
QUINSTREET,
INC. DISAGGREGATION OF REVENUE (In
thousands) (Unaudited)
|
|
In the first quarter of
fiscal year 2021, the Company completed the acquisition of
Modernize, Inc. to increase the
scale and capabilities in the home services client vertical. In
addition, the Company divested its former education
client vertical to narrow its focus to the best performing
businesses and market opportunities. As a result of these
activities, in the second quarter of fiscal year 2021, the Company
updated its reporting structure which resulted in
two client verticals: financial services and home services, which
was applied on a retrospective basis. All remaining
businesses that are not significant enough for separate reporting
are included in other revenue. The following table
presents the Company's net revenue disaggregated by
vertical:
|
|
|
|
Three Months
Ended
|
|
|
Fiscal Year
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Services
|
|
$
|
100,762
|
|
|
$
|
112,168
|
|
|
$
|
417,110
|
|
|
$
|
426,819
|
|
Home
Services
|
|
|
44,295
|
|
|
|
36,937
|
|
|
|
158,805
|
|
|
|
134,538
|
|
Other
Revenue
|
|
|
1,445
|
|
|
|
2,093
|
|
|
|
6,184
|
|
|
|
5,543
|
|
Divested
Business
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11,587
|
|
Total net
revenue
|
|
$
|
146,502
|
|
|
$
|
151,198
|
|
|
$
|
582,099
|
|
|
$
|
578,487
|
|
View original
content:https://www.prnewswire.com/news-releases/quinstreet-reports-fiscal-fourth-quarter-and-2022-results-301599327.html
SOURCE QuinStreet, Inc.