QuinStreet (QNST) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $198.3 million, up 52% year-over-year, with full-year revenue of $613.5 million, up 6% year-over-year, driven by a broad-based re-ramp in auto insurance and double-digit growth in non-insurance verticals.

• Auto Insurance revenue surged over 200% year-over-year in Q4, driving overall growth; other verticals also posted double-digit gains.

• Adjusted EBITDA for Q4 surged nearly 500% year-over-year to $11 million, with full-year adjusted EBITDA reaching $20.4 million.

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

Financial highlights

• Q4 revenue: $198.3 million (+52% YoY); full-year revenue: $613.5 million (+6% YoY).

• Q4 adjusted EBITDA: $11 million (+500% YoY); full-year adjusted EBITDA: $20.4 million.

• Q4 adjusted net income: $6.5 million ($0.11 per share); Q4 GAAP net loss: $(2.2) million ($(0.04) per share).

• FY2024 GAAP net loss: $(31.3) million ($(0.57) per share); adjusted net income: $6.3 million ($0.11 per share).

• Q4 gross profit: $17.4 million; full-year gross profit: $46.2 million.

Outlook and guidance

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

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

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

• Management expects strong revenue growth and margin expansion, with guidance considered conservative.