Overview

• US performance marketplaces firm's fiscal Q3 revenue rose 28% yr/yr, beating analyst expectations

• Adjusted EBITDA for fiscal Q3 set a record and beat analyst expectations

• Company cites strong demand in auto insurance and home services, plus expanded AI use

Outlook

• QuinStreet expects fiscal Q4 revenue between $350 mln and $370 mln

• Company sees fiscal Q4 adjusted EBITDA of $37 mln to $43 mln

• Company expects continued margin expansion in fiscal Q4

Result Drivers

• AUTO INSURANCE DEMAND - Co said record auto insurance revenue was driven by strong carrier demand and high consumer shopping activity

• HOME SERVICES GROWTH - Co said Home Services delivered a record quarter, supported by integration of HomeBuddy acquisition

• AI TECHNOLOGY - Co said industry-leading AI optimization algorithms and expanded AI applications drove improvements in performance and productivity

Company press release: ID:nBw7xPPw7a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Beat	$346.14 mln	$336.21 mln (6 Analysts)
Q3 Net Income		$7.36 mln
Q3 Adjusted EBITDA	Beat	$29.60 mln	$29.29 mln (6 Analysts)
Q3 Gross Profit		$41.34 mln
Q3 Operating Income		$10.27 mln
Q3 Pretax Profit		$8.18 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for QuinStreet Inc is $19.25, about 47.8% above its May 6 closing price of $13.02

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

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