Business
QuinStreet Reports Second Quarter Fiscal Year 2020 Financial Results
- Reports double digit growth and record FYQ2 revenue - Continues Goldman Sachs led process to review strategic alternatives - Launching 6 QRP clients;
About this update from Quinstreet, Inc.
[{"type":"text","content":"- Reports double digit growth and record FYQ2 revenue\n - Continues Goldman Sachs led process to review strategic alternatives\n - Launching 6 QRP clients; reports strong advanced pipeline of additional QRP client prospects\n\n\nFOSTER CITY, Calif., Feb. 5, 2020 /PRNewswire/ -- QuinStreet, Inc. (Nasdaq: QNST), a leader in performance marketplace products and technologies, today announced financial results for the second quarter ended December 31, 2019. \nFor the second quarter, the Company reported revenue of $118.1 million, an increase of 13% year-over-year, and GAAP net income of $1.5 million, or $0.03 per diluted share. \nAdjusted net income for the second quarter was $6.3 million, or $0.12 per diluted share. Adjusted EBITDA for the second quarter was $9.1 million, or 8% of revenue.\nDuring the second quarter, the Company generated $9.9 million in operating cash flow and closed the quarter with $76.1 million in cash and equivalents. \n\"Fiscal second quarter results were in line with our outlook for full year revenue and EBITDA,\" commented Doug Valenti, CEO of QuinStreet. \"We delivered record fiscal second quarter revenue. There continues to be good and accelerating momentum and opportunity in the business, particularly in our core Financial Services and Home Services client verticals, which grew 20% year-over-year. Good progress is also being made on growth and operating initiatives that we expect to yield strong and improving results in coming quarters. Fiscal third quarter revenue is expected to set a quarterly revenue record for the Company.\"\n\"Notably, our QRP ramp is off to a quick start, with 6 large insurance agency clients now signed and expected to launch shortly. We estimate that the signed QRP clients already represent over $10 million in annual revenue opportunity to QuinStreet. In addition, QRP clients not yet signed but in the advanced sales pipeline represent over $10 million more in estimated annual revenue opportunity.\"\n\"Regarding the Goldman Sachs led process to review strategic alternatives, we are reviewing a broad range of alternatives, as previously indicated. At this point, the process has generated options along the full range of possible alternatives. We are in the early stages of qualifying and assessing options.\"\n\"We have also begun to divest under-performing businesses. This is being don...