QuinStreet, Inc. (QNST) Bundle
A Brief History of QuinStreet, Inc.
Company Overview
QuinStreet, Inc. is a leading performance marketing company that specializes in delivering qualified inquiries, including clicks, leads, calls, applications, and customers. The company operates primarily within the financial services and home services verticals, leveraging a technology platform to deliver measurable marketing results.
Financial Performance
As of September 30, 2024, QuinStreet reported net revenue of $279.2 million, a significant increase of 125% compared to $123.9 million for the same period in 2023. The cost of revenue was $250.8 million, leading to a gross profit of $28.4 million and a gross profit margin of 10%.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $29.6 million, which includes:
- Product Development: $8.6 million
- Sales and Marketing: $4.1 million
- General and Administrative: $16.8 million
This represents a 69% increase in operating expenses from $17.5 million in the same quarter of the previous year.
Net Loss and Earnings Per Share
QuinStreet recorded a net loss of $1.4 million for the three months ended September 30, 2024, compared to a net loss of $10.6 million for the same period in 2023. The net loss per share was $(0.02) compared to $(0.19) in the prior year.
Stockholders' Equity
As of September 30, 2024, QuinStreet's total stockholders' equity stood at $219.8 million, with total liabilities and stockholders' equity amounting to $401.2 million.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $279.2 million | $123.9 million | 125% |
| Cost of Revenue | $250.8 million | $116.3 million | 116% |
| Gross Profit | $28.4 million | $7.6 million | 271% |
| Operating Expenses | $29.6 million | $17.5 million | 69% |
| Net Loss | $(1.4 million) | $(10.6 million) | 87% |
| Net Loss per Share | $(0.02) | $(0.19) | 89% |
| Total Stockholders' Equity | $219.8 million | $222.3 million | -1% |
Cash Flows
For the three months ended September 30, 2024, QuinStreet reported:
- Net cash used in operating activities: $(13.7 million)
- Net cash used in investing activities: $(2.6 million)
- Net cash used in financing activities: $(9.2 million)
Client Verticals
In Q3 2024, QuinStreet's revenue breakdown by client vertical was as follows:
- Financial Services: 76% of net revenue
- Home Services: 23% of net revenue
- Other Revenue: 1% of net revenue
Strategic Acquisitions
QuinStreet has made several strategic acquisitions, including:
- BestCompany and AquaVida in fiscal year 2024
- Modernize, Mayo Labs, and FC Ecosystem in fiscal year 2021
- AmOne Corp., CCM, and MyBankTracker.com in fiscal year 2019
Market Trends
The performance of QuinStreet is influenced by various market trends, including:
- Increased digital marketing spend
- Competitive pressures in the financial services sector
- Changes in consumer behavior and advertising budgets
A Who Owns QuinStreet, Inc. (QNST)
Ownership Structure
As of September 30, 2024, QuinStreet, Inc. (QNST) had a total of 56,127,603 shares of common stock issued and outstanding.
Major Shareholders
The major shareholders of QuinStreet, Inc. include:
- Institutional Investors: Various institutional investors hold significant stakes, with the largest being:
- Vanguard Group, Inc. - 10.2%
- BlackRock, Inc. - 9.8%
- Dimensional Fund Advisors LP - 6.5%
- Insider Ownership: Executive officers and directors collectively own approximately 5% of the company’s shares.
Stock Performance
QuinStreet's stock price as of September 30, 2024, was $13.39, reflecting a market capitalization of approximately $752 million.
Recent Transactions
In the latest quarter, QuinStreet reported the issuance of 40,350 shares upon the exercise of stock options and 142,188 shares under the employee stock purchase plan.
Stockholder Equity
| Component | Amount (in thousands) |
|---|---|
| Common Stock | $56 |
| Additional Paid-in Capital | $351,807 |
| Accumulated Other Comprehensive Loss | $(268) |
| Accumulated Deficit | $(131,777) |
| Total Stockholders' Equity | $219,818 |
Financial Overview
For the three months ended September 30, 2024, QuinStreet reported net revenue of $279.2 million, a significant increase from $123.9 million in the same period of the previous year.
The breakdown of net revenue by vertical for the same period was as follows:
| Vertical | Net Revenue (in thousands) |
|---|---|
| Financial Services | $210,891 |
| Home Services | $65,075 |
| Other Revenue | $3,253 |
Conclusion on Ownership Dynamics
QuinStreet’s ownership is characterized by a mix of institutional investors, insider holdings, and a growing number of shares being held by retail investors. Continuous developments in stock performance and shareholder equity indicate a dynamic ownership landscape.
QuinStreet, Inc. (QNST) Mission Statement
QuinStreet, Inc. focuses on delivering targeted, measurable marketing results through their innovative technology platform and vertical-focused approach. Their mission is to connect businesses with consumers through high-quality inquiries, including clicks, leads, calls, applications, and customers.
Financial Overview
As of September 30, 2024, QuinStreet reported net revenue of $279.2 million, which represents a significant increase of 125% compared to $123.9 million for the same period in 2023. This growth was largely driven by the financial services client vertical, which saw a revenue increase of 192% year-over-year, contributing $138.8 million to the total revenue.
Key Financial Metrics
| Metric | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Net Revenue | $279,219,000 | $123,923,000 | 125% |
| Cost of Revenue | $250,814,000 | $116,274,000 | 116% |
| Gross Profit | $28,405,000 | $7,649,000 | 271% |
| Net Loss | $(1,366,000) | $(10,565,000) | 87% |
| Basic Net Loss per Share | $(0.02) | $(0.19) | 89% |
Operating Expenses
For the three months ended September 30, 2024, QuinStreet's total operating expenses rose to $29.6 million, up from $17.5 million in the prior year, reflecting a 69% increase. This rise was driven by substantial increases in general and administrative expenses, which surged by 148% to $16.8 million, primarily due to adjustments in fair value of contingent consideration and increased stock-based compensation.
| Operating Expense Category | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Product Development | $8,620,000 | $7,637,000 | 13% |
| Sales and Marketing | $4,144,000 | $3,124,000 | 33% |
| General and Administrative | $16,848,000 | $6,787,000 | 148% |
Cash Flow Analysis
QuinStreet reported net cash used in operating activities of $(13.7 million) for the three months ended September 30, 2024, compared to $(5.0 million) in the same period of 2023. This increase in cash outflow was primarily due to higher working capital needs, with accounts receivable increasing by $63.6 million.
| Cash Flow Category | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(13,706,000) | $(4,973,000) |
| Net Cash Used in Investing Activities | $(2,606,000) | $(5,094,000) |
| Net Cash Used in Financing Activities | $(9,206,000) | $(7,311,000) |
Liquidity Position
As of September 30, 2024, QuinStreet held cash and cash equivalents of $25.0 million. The company's total assets amounted to $401.2 million, with total liabilities at $181.4 million, resulting in stockholders' equity of $219.8 million.
| Liquidity Metrics | Value |
|---|---|
| Cash and Cash Equivalents | $25,000,000 |
| Total Assets | $401,172,000 |
| Total Liabilities | $181,354,000 |
| Stockholders' Equity | $219,818,000 |
How QuinStreet, Inc. (QNST) Works
Business Model
QuinStreet, Inc. operates primarily in the digital marketing space, focusing on delivering qualified inquiries through various channels such as clicks, leads, calls, applications, or customers. Its business model is centered around vertical marketing, which allows it to target specific industries effectively.
Financial Performance
As of September 30, 2024, QuinStreet reported a net revenue of $279.2 million, a significant increase of 125% from $123.9 million for the same period in 2023. The increase in revenue was largely driven by the financial services client vertical, which saw a revenue growth of 192%.
| Financial Metrics | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Net Revenue | $279,219,000 | $123,923,000 | 125% |
| Cost of Revenue | $250,814,000 | $116,274,000 | 116% |
| Gross Profit | $28,405,000 | $7,649,000 | 271% |
| Operating Loss | ($1,207,000) | ($9,899,000) | 87% |
| Net Loss | ($1,366,000) | ($10,565,000) | 87% |
Client Verticals
The company generates revenue from various client verticals, with a significant portion coming from financial services and home services. For the three months ended September 30, 2024, the breakdown was as follows:
| Client Vertical | Revenue (Q1 2024) | Revenue (Q1 2023) | % Change |
|---|---|---|---|
| Financial Services | $210,891,000 | $72,125,000 | 192% |
| Home Services | $65,075,000 | $49,394,000 | 32% |
| Other Revenue | $3,253,000 | $2,404,000 | 35% |
Operating Expenses
QuinStreet's operating expenses for the three months ended September 30, 2024, totaled $29.6 million, representing a 69% increase from $17.5 million in the prior year. The breakdown of operating expenses is as follows:
| Operating Expense Category | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Product Development | $8,620,000 | $7,637,000 | 13% |
| Sales and Marketing | $4,144,000 | $3,124,000 | 33% |
| General and Administrative | $16,848,000 | $6,787,000 | 148% |
Cash Flow and Liquidity
For the three months ended September 30, 2024, QuinStreet reported cash flows as follows:
| Cash Flow Category | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | ($13,706,000) | ($4,973,000) |
| Net Cash Used in Investing Activities | ($2,606,000) | ($5,094,000) |
| Net Cash Used in Financing Activities | ($9,206,000) | ($7,311,000) |
Stock Performance
As of September 30, 2024, QuinStreet had 56,127,603 shares issued and outstanding. The company reported a net loss per share of ($0.02) compared to ($0.19) in the previous year.
| Share Performance Metrics | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Loss per Share (Basic and Diluted) | ($0.02) | ($0.19) |
| Weighted-Average Shares Used for Calculation | 55,823,000 | 54,470,000 |
Conclusion of Financial Position
As of September 30, 2024, QuinStreet's total stockholders' equity was $219.8 million, with total liabilities of $401.2 million.
How QuinStreet, Inc. (QNST) Makes Money
Revenue Sources
QuinStreet, Inc. generates its revenue primarily from performance marketing services, focusing on delivering qualified inquiries to clients in various sectors. For the three months ended September 30, 2024, the company reported:
| Revenue Source | Q4 2024 Revenue (in thousands) | Percentage of Total Revenue | Q4 2023 Revenue (in thousands) | Percentage Change |
|---|---|---|---|---|
| Financial Services | $211,716 | 76% | $72,906 | 192% |
| Home Services | $38,657 | 23% | $22,957 | 32% |
| Other Revenue (Performance Marketing & Tech Services) | $3,846 | 1% | $2,060 | 87% |
| Total Net Revenue | $279,219 | 100% | $123,923 | 125% |
Client Concentration
The company's revenue is significantly concentrated among a few clients. For the three months ended September 30, 2024, two clients in the financial services vertical accounted for:
- 20% of net revenue
- 14% of net revenue
In contrast, no client accounted for more than 10% of net revenue during the same period in 2023.
Cost Structure
The cost of revenue for QuinStreet increased substantially, reflecting the growth in their revenue-generating activities. The detailed cost structure for the three months ended September 30, 2024, is as follows:
| Cost Item | Q4 2024 Cost (in thousands) | Q4 2023 Cost (in thousands) | Percentage Change |
|---|---|---|---|
| Media and Marketing Costs | $131,900 | $60,000 | 119% |
| Personnel Costs | $1,200 | $1,000 | 20% |
| Depreciation Expense | $1,000 | $500 | 100% |
| Total Cost of Revenue | $250,814 | $116,274 | 116% |
Operating Expenses
Operating expenses have also increased significantly, reflecting investments in product development and general administrative functions. The operating expenses for the three months ended September 30, 2024, are detailed below:
| Expense Type | Q4 2024 Expense (in thousands) | Q4 2023 Expense (in thousands) | Percentage Change |
|---|---|---|---|
| Product Development | $8,620 | $7,637 | 13% |
| Sales and Marketing | $4,144 | $3,124 | 33% |
| General and Administrative | $16,848 | $6,787 | 148% |
| Total Operating Expenses | $29,612 | $17,548 | 69% |
Net Loss
Despite the increase in revenues, QuinStreet reported a net loss of:
- Q4 2024: $1,366,000
- Q4 2023: $10,565,000
The loss before income taxes for Q4 2024 was $1,415,000, compared to $9,815,000 for Q4 2023.
Market Trends and Strategic Initiatives
QuinStreet's strategy involves enhancing its product offerings and expanding its media presence to capture more client budgets. The company has made several acquisitions to bolster its capabilities, including:
- BestCompany
- AquaVida
These acquisitions are part of a broader strategy to diversify revenue streams and improve access to quality media.
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Resources:
- QuinStreet, Inc. (QNST) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of QuinStreet, Inc. (QNST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View QuinStreet, Inc. (QNST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.