QNST - Earnings call transcript Q3 2019

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Operator

Good day and welcome to the QuinStreet Third Quarter 2019 Financial Results Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Ms. Erica Abrams. Please go ahead, ma’am.

Erica Abrams

Mitchell. you, Thank and ladies Good gentlemen. afternoon, Thank you QuinStreet’s as report us quarter joining fiscal today third year we results. for XXXX financial

Joining on www.quinstreet.com. the are today Relations section Wong, This the website CEO Investor is on at our call webcast Greg QuinStreet. CFO Doug simultaneously being of and of me Valenti, call

XXXX. of to discussion statements not forward-looking of started, performance. These are our results cause on statements our statements. and may get to materially discussed XX-Q XX, risks the are to we cause guarantees forward-looking recent uncertainties our differ future would Before could remind from recent you Factors including projected a number filings, made those contains like most I that differ that and that the SEC by in results following from involve filing statements actual such February

of Please and are based no both in over on that, ahead. today’s we are GAAP available release, assumptions obligation on is to A website. update statements will which Relations of Investor these our to undertakes Forward-looking and Today, will financial included non-GAAP of CEO QuinStreet. reconciliation statements. as the GAAP company discussing Doug, turn measures. the I non-GAAP be to earnings call press measures go today With

Doug Valenti

net to all timing about QX to million. are a remains the call consistent that growth Thank about our with outlook excluding FY represented last to revenue full provided expected and decision growth for margin the except and joining second we the to expected tough We case. from come we of call us EBITDA half you, QX. adjusted the results write-off. us receivable, said and comps initiatives XX% the last ‘XX what DCEH thank XX%, of which year we get expected, That for of results FY were our to Erica impact you today. about due about of in Fiscal QX DCEH expense write-off $X.X ramping

financial FY made growth our So margin future being the perspective, at end From good strengthening expansion great results, with and future. business have of never very and the our been in has progress for in brighter. better the important been has has building and and we scale ‘XX business And will never been my XXth year looking a shape. year record ahead,

in from of and company. largest big the initiatives business the and that tough ramping have lot footprint We broadest continued contributed long-term had across from offset number ramp. those a the comps initiatives last QX in of Progress of we have significantly year, the initiatives history ever to the

turn We up to current will some growth expect more quarter, comments margin call our deliver I margin QX, and expansion open before and again and we beyond. I growth details return XXXX Greg With the and initiatives year-over-year in that, strong and then expansion double-digit and fiscal Q&A. fiscal growth on our in over for will to the with

Greg Wong

everyone Thank joining today. Doug. thanks and to Hello you, for us

continued focus delivered from adjusted and release, revenue, the generation. on flow million will our note you we in As EBITDA with press cash $XXX.X

by in onetime DCEH for we associated from reflects $X.X This our of in to our recoveries. given write-off cost million our with the $X.X one-time million change quarter previously, in debt status statement net to bad This a expense, the the million charge discussed bankruptcy. Doug DCEH. As financial in recorded receivable $X.X included full charge expected related exposure of receivership offset

$XXX,XXX, adjusted was reported GAAP net quarter, reported income $X third and was net the million. income For

and mostly million have share. quarter. in the the net revenue revenue million expectations write-off, million Adjusted with QX in ago. about or per Excluding the third income year adjusted GAAP would would EBITDA same of our quarter or $X.X flat X DCEH net and $XX.X was been $X.X been have X% line income, with $X.XX

and businesses insurance and revenue key momentum the were last loss mortgage DCEH, from growth of in client’s by large year’s spend QX. a offset Solid test in

revenue XX%. been would Excluding those year-over-year have growth losses, revenue

by the business, at client revenue vertical revenue at month that revenue Services delivered of of client March. triple-digit million. a last the our cards. XX% vertical, quarter in was closed quarter flat In credit same represented revenue loans record personal QX We $XX.X our Financial Looking in growth with year year-over-year with insurance and we

driven as revenue and growth we For cards by quarter, and anticipate in AmOne we in from personal further the synergies acquisition. the fourth loans optimize Services momentum the continued primarily in sequential credit meaningful Financial a insurance ramp

QX Our education XX% year-over-year million. $XX.X vertical to represented XX% of client revenue declined and

expect forward, year-over-year calendar in declines deliver we in at the but fiscal XXXX. sequential the we of foresee from loss until business Education of QX Moving end this DCEH to lap growth

Our other revenue, QX grew $XX.X of client Services BXB, the vertical, and and million. which year-over-year includes represented XX% remaining Home XX% to

$XX Turning the closed cash equivalents. million to in the and sheet, with balance third quarter we

flow expected. made of free or In the revenue $X.X the cash on quarter revenue. for initiatives We for normalized we million Excluding what progress QX our of about write-off, was X% business. were summary, good results DCEH growth future

turn positioned year-over-year revenue to Doug. growth in the call for strong in expansion margin well QX year With fiscal growth XXXX. in are back that, and We double-digit I’ll over

Doug Valenti

the QX to the outlook our earlier. expressed strong circle I big and Thank XXXX generally optimism describe back of wanted to initiatives contributing that some and forward-looking FY to I you, Greg.

with First, marketing as their a This clients of budget we more and wallet more shift to share long-term as continue of through we is earn to trend digital budget our clients. increase performance. allocations

secular and trend a from the proportion remain to our media of a to QuinStreet with true accelerating in budget will This to channels other digital superior growth powerful and their most marketing advanced and big growth by ongoing more to still many from earlier reserve for low marketing journey, digital QuinStreet the measurably opportunities based extraordinarily budget media driver to by years with on spent our us revenue our new performance. and large digital the There existing digital base is business that of likely us remains clients churn quarter-to-quarter ahead. comes spent client gap come. between with most Our allocating clients penetration marketing of most of those performance implying

The major our driving big partnerships. business is media initiative second

the our to over million We label wasted rankings and otherwise clients and our platform the performance our Examples is providing matching have companies. can generates from clients. comparison onto performance it integrating on performance where or again tables clients include a advertising advantaged high with these for revenue chain. pools generate brand to revenue. through gives of show client to media and insurance, in-market end that significantly newfound fact technologies search overall brands strategic white audiences media our new to large marketing of auto This the with media media and optimization to area do highly-strategic FY QuinStreet than in media to that reported are examples replacement verticals is budgets, clear media QuinStreet market partnerships broaden ‘XX media QuinStreet market relatively revenue or media include on through as serve into entirely widgets ‘XX continue our footprint turn-down supply and FY that to they expand will the market from matching carriers. consumers. also integrations. SEO cannot not our online score, proprietary expertise a bigger their leader, match well by solutions spend. sites online $XXX deepen turn ‘XX, their big These more, simply This large in say, for access integration marketplace for clients, lenders diversify hugely in turnkey easily examples Further we our we generating Other and content double partners double decline media up and our Google partners. then include our an that in own footprint, compete brands whereby channel over websites technologies, or QuinStreet the and network revenue and visitors new for products FY Powering integrated, companies QuinStreet we they expect visitors and streams other ecosystem for new solutions due carriers, transparently partnerships media traffic. or in

opportunity. are in this still early We

a that already are in of are new operated and QuinStreet-owned have websites. of ramping. initiative most deep still major third partnerships, is media pipeline and resurgence A and place We reinvestment the

and off. We a newly with many include business. Insurance.com, year. Traffic strongly have Financial properties us high AmOne.com. and this paying rebuilt last refocused QuinStreet’s CarInsurance.com, sites our of focus provide to verticals on These over significantly is on sustainable years, year media and sites their MoneyRates.com, degrees authority up core couple core our and Insure.com, SavingsAccounts.com, sites These HSH.com Services in the after are investments of CardRatings.com, consumer with in the leverage traffic growth. are the main added past climbing

increased recent as of these broader up have been Street just media of ecosystem. by Journal hundreds, our The yesterday, You Wall in sites content been may coverage the picked have data-driven also expertise more in months. seen have and media including There

annualized and technologies But this of taking include They long stages there management million our we areas footprint. growth Education as QuinStreet product and for verticals, marketing agent and growth We’re of of of believe, and insurance. and in for Over also clients changer, Education in business the of insurance of and loans independent QuinStreet still platform and term is footprint, to in our services, independent adjacent agency’s revenue These record, management and industry our come pilot client is past other good technology market insurance evolve. providing are Home still Services. fourth as agency in Financial the other the we management of time the in media initiative entire quoting of rollout growth carriers important new $XXX and excited client agency media-buying product large allowing budget from about a long-term as and that QuinStreet streams current in platform. serve development other service marketing a A our offerings the Services, than personal addressable in new for from a and existing on an the driving game to broadening to channel or expansion the or and A areas example fifth product new include initiative QMP the to also industry footprint continue groups the channel, scale the medium of and revenue years-or-so client long We early expansion being mission-critical in ones. initiative. and is funnel verticals X expect particularly adding continued agencies. also coming of the

markets. Several and years. our and our the All and just past to increased expand scale deepen offerings new margin top of also value-add of driver profitability significantly addressable leverage, integration to are revenue these create over product and service line beyond new partners, clients the leverage few expected our streams positive add media main

I while and up our characterize strengthened activity of and as client in budgets gradually an selective to initiative, and has as business and highly highly the service over years. have not stabilized as M&A transactions we cash accretive, would and The picked activity few the been have for increased past our have strong it media returned product balance penetration and effective flows. partnerships fueling This Finally, investments and expansions. sheet we diversified accelerating

a difficult to and having platform scale. a can It great Ours be industry. which to in to QuinStreet and acquisitions very built fragmented great advantage is get a into expensive big-scale a generally has business effect. added is

for vertical and consolidator. and M&A ceded We’re we part of continue lately. large advantage done expect in through natural or have as mature, by continues the been diversification players ones our likely over like to bite client the other been our sized acquisitions strategy our it as partnerships, to or be years and I has entries most M&A. tuck-in of industry our new industry in a to Most investments spurred have

be We execution. conservative, I and highly in effective will continue surgical believe M&A to selective and

future efforts internal I our I been by that expect will it. opportunity synergies acquisitions has our the created said, there. always outlined always have of be growth good organic to either That continue and like most from no see through model we of ones also or today We that shortage at been

growth our in business to is there lot core our of turning at scale our a Now outlook, and in initiatives. momentum

outlook Our is a business result. as excellent

our over FY adjusted revenue be rate million significantly to With run call million, growth we range the an cash fiscal and expect operator the revenue expect XX%, million breakout that in I fiscal QX EBITDA strong implies QX Adjusted quarterly $XXX in of to XXXX. is over XXXX, than grow and We record, already again QuinStreet, margin $XXX already to for and in $XXX breakout fiscal revenue ‘XX. revenue first QX year to EBITDA for to over $XXX a back turn will expected at million flow the a double-digit record annual expansion least and that, margin over in greater Q&A. annualized

Operator

Thank first Campbell you. our take question [Operator Instructions] from And we with will Stephens. John

Carter Trent

margin? on price Hey, the partnerships compressed that is I new for in John. Was gross on bit. that Carter expand focus saw little question a I it this guys. gross the quick This it and Google will on with have for AdSense quarter drove on what media specifically got help increasing their going that? margin. Can you a these forward,

Greg Wong

AmOne was acquisition. of really compression the increased with part primarily cost personnel to the related No, associated

top revenue took headcount of and is that of and in primarily in the real that which we cost in were entire line business, As are essentially entire you on that cost the of us base acquisition We synergy. for early synergies. still the remember, sales synergies

see to we a component gross So, margin of as those the gross to lot realize we of that’s the more of but real lever synergies, up continue margin. opportunity

Carter Trent

on the advantage Thank how case it. and service, your turndown more more scenario it you dynamics a most the you. got on the kind the of makes take you works a provide little on can currently there That of used do Okay, service see of talk can opportunity sense. and that service? of clients you One bit

Doug Valenti

it’s listings it’s someone one – in works client’s to and they loans insurance someone the are particular. way and The when personal to comes comes information leaders our this typically in market we is doing in and isn’t it If forms fill and client on websites initial to out to client’s attributes match of that client of matching the as when and get really coverage to don’t we depending we of know information, customer want that our who terms us because, other paid. state, or visitor that those what a do. clicks that revenue serve can various consumer initial what that driven then you simplest our – in in insurance target website by are in listings consumer – carrier basis, an consumer carrier they the the that state-by-state generates pay serve, over and of client’s that a portion present being to know, in client example ability base insurance, and then to the they for we a algorithms on And collection when and our and the

allows to to take So, ad have to ended responding them, also with to spend them able to they up being consumer that came importantly that and but it to them, to problem. not been monetize a satisfy may website them a to provide serve serve, them solution very their and their

to which good a experience as it allows to So, typically typically spend, offset them media get more well – consider more our an yet. course spend go media both of clients branding as and

serve, clients that it. say would of it most carriers I say I number do I – would do In would large of most not carriers several say we terms large

exclusive We large partner turndown more than else are for by and number far. carriers carriers a the for anybody large of

it that In turndown the large So and attractiveness would expect do service that personal more to over little less most there take are of I again, several at would loans, advantage lenders given that I probably than We we and at. say service. will XX player of X now. dominant ramping are have say the would top the more today. carriers, of the a half, time say the

And monetization and leader dominant thing. yet the don’t in ramping it’s we there again that there still And in program. planning are us are combined to. early both same are We the of the from very improved and some share that the AmOne

lenders listings lender So, most that to consumer when to to clients, that qualify more allow then so of fill pre-approved the able they that directly when we our if over and paid we cases, other back loan we are to In that in offer that, consumer a click either our back consumer that advanced get feed not integrated we that, consumer for out the we and up for lender. loan and lender, lending, to get offer integrations some in, original the most new – or of allow actual consumer that find that are to that click to up comes particular from – deeply clear a and loan feed a will an information. of ends at we portion on it’s into pay

Carter Trent

helpful. That’s Thanks, Okay, got Scott. it.

Operator

you. Thank

We will ahead. Please Kreyer take our go Craig-Hallum. Jason from next question with

Jason Kreyer

Good the the just wanted really guys. these incremental color on initiatives, Doug wanted start that. for to afternoon. new out thanks to platform. I all quoting growth Hey, say appreciate on

But start color carrier give kind that – pick you adoption a of timing, testing been one been We a as can way? rollout you that will bit on and of just broad in bigger you there on kind bit. how into you if little have to then a the if any expect how little of beta from insights broad wondering in has have would when

Doug Valenti

Sure.

with both small one, X for national in large if the a significant other months with to, think, we’re of We not somewhere most a a the carrier, agency in of scaled up of, agents agents the up number a year to is those have cases. I of number of agency one around agents and largest two from all a for now, for the internal independent carriers, been agencies, pilot

XXX% The well. specs product, we’ve nationally both to the there. I’d for as and we gone with June. of from numbers believe, check the and carriers at gotten look actual agencies rollout the So, be the will full extraordinarily It’s ready have against folks our

or is rollout expect the need for but that this not it get it. see expect to dependent XXXX. the revenue not would we of we is fiscal doubt on be to business meaningful of from year, agency meaningful to Whether I the just platform. coming that in the ramp on fiscal next fiscal us have that contributor agencies year plan that would We the I or volume carriers, incremental folks we penetration run But I to a really would contribution XXX% because as

Jason Kreyer

of a the in that price carriers environment great Okay, some I calendar from to insurance pricing year, softer bit little of appreciate saw the that. in months auto heard consumers we color. We’ve year that few first of the fewer led the shopping. and

Just wondering you down kind if some trends? saw of of if you if to there was those any immune trickle were to that you or

Doug Valenti

of a saw insurance. We We say quarter record had a as I some had and it well, to, in alluded we that solid we would well. Greg was March.

which it’s get proceeding effect before return were year-over-year timings of it a to last as everybody details we Of they dates well, expected. into relatively holidays facing big broadly course, knew see well year like we softer a the by well laws, but on a believes out. tough see than to shopping this the like ever we to had and things we to know driven as audit, season tax it changes all be That it’s terms phenomenon in of because you environment as I all said, did bit as they test that of the do, from still insurance an the did figure than of was a we more comp the some tax short-term have as carriers, of and

that something the answer, outlook the our yes, short would our business. it’s of I So, changes for long that future say expect don’t answer, insurance

Jason Kreyer

did March. within a Is couple have that any mentioned online you Like online? carriers you any not that maybe see carriers times strength And the you in come that? that or there accelerated uniqueness been Okay. saw

Doug Valenti

a No, Not not of any no. more than this. standard really, It’s kind trend.

Jason Kreyer

a me, that channel Fair the enough. there up Because of And more Kind a things challenging then any one little quarters. heard I bit? mortgage the on the couple is lightening just in for last may a couple business? know be commentary

Doug Valenti

a the characterize The bit rates went it cycle The in kind down a and as seeing rates have I in the And there would while, back downsized. market Yes. little a and little would some shut that say, I mortgage difficult they of kind would the as strongly markets it’s definitely it’s a recovered bit, comp it bottomed. still tough recovery when even market there. very will environment characterize a the has our for been business. been quarter is And I and refi gone are long down and the lot we our be of because of did that as progress I than pretty but actual of it in environment, up a say the last this business a quarter year-over-year and terms us that, meaningfully I’d it’s that feel for environment mean interest [indiscernible] better lenders we basis long. market on the

a a And don’t made And other lot so, continue drag, expect I think we on comp here sure. ago will overcome the for a to was being on quarter, for in be year levels and X by to time. forward. progress drag us it obviously going strength businesses again of a basis some back it get that for we’ll I has to I think certainly X from

Jason Kreyer

Alright. Appreciate color. all Thanks. the

Doug Valenti

Jason. you, Thank

Operator

from Please ahead. go next Breza our take question We’ll Capital Robert with Markets. Northland

Robert Breza

be, mean, issues? that. think guys guess, out side really opposite think Hi as bump? growth the what’s and I could good pretty doubling revenue, like area handle we growth hit road everybody. where going. got you see potentially to great new where good just I’m in talk initiatives would trying media So, think an you you you initiatives in my are could the about of you seems terms you question when your partnership here a I about everything. where afternoon would some a those of media potentially the I do on It be initiatives, you’re think for example, figure

Doug Valenti

because pretty year, today are the looking in our actually these are mean themselves, And of I new. described next ramp for most is supplied most I is and I these Yes. clear. really, say us do, now mode. the if level say, year of full outlook or $XXX you our at things things are to that locked million the are initiatives of confidence next by growth are initiatives would And high would all kind Most already the And what in. is good, about really pipelines planned, are rate that of underway, will. None things take over of the, I’m of

can of go wrong. So, things the always We didn’t sky. anticipate DCEH out dropping

Another client that hundreds great news dollars is of the biggest month. thousands is of next Education a

that for industry nauseam. So, talked time mortgages I vertical be pretty client bottom all to strongly a there. that more ad challenged for that the downside about to think reasons, that which it. it all been long We would the we’ve Education, us feel don’t bounce to got the off could the have was while troubled, as most industry for continues is worst has thing in us, happened it

loss of and And fact, from insurance a our well bruises most to driven in to changes the far It enough, shape budgets are which quarterly do the in budgets have and/or opposite, a issue into lot straight just years landscape perform own extraordinarily back think media a still ago. I’m right up right, the been over changes re-priced penetrate. ratio an standpoint, since client, have you into if bumps and/or the by the through we carriers phenomenal just but will not continues largest who very loss execution. ratios, to couple including, the course, I won’t of up of because great probably we there, it clients else, to their is like client with sure step market big anything a straight be always be always

big say and I’d upside So, with and risks? versus I are of what big the downside always The if media say, I the listed, disruptions are a see big said in than risks are lot there’s are I those where initiatives on don’t I big would think a underway. today we clients. disruptions I lot more

footprint on, market. of part day that So, job the today a described done. sure and to day more things have is of And how our getting to we’re making and have we diversified I lot that going bigger and is both sides a that you broader what of we in

Robert Breza

Great. Thank much. you very

Doug Valenti

you. Thank

Operator

And Klauber we’ll with Blair. Please William take our next question go from Adam ahead.

Adam Klauber

more next couple Hi guess, of quarter, growth good sorry, third or A organic So, it if just growth AmOne, to headwinds we strip XX% guidance your out Whereas afternoon rate give some XX% XX%. but or questions. of difference be looks growth the at to around like details the you, quarter on fourth for revenue be in Could rate should between meet also organic I clarity that us rate guys. more maybe quarter rate? the the quarter, looks the least and this growth plus.

So I guess, what’s doing quarter? better next quarter this than you saw

Doug Valenti

it. trajectory whole insurance and through next strong last quarter, soft are halfway with on relatively We upward February the Jason pointed exited a industry. month January record we in again this and posted as quarter almost And after, sure. is seasonably quarter out, Yes, recall March the for

at these ramp it stronger continues quarter, of is to beginning us quarter last way Personal we very see the expect much of course. nicely loans, be than last so, synergies And acquisition. and considerably We these for did synergies considerably beginning this quarter than last as by quarter. at ramp the insurance, AmOne of didn’t the to from stronger we this running of

years. months scaling very us penetration nicely, basis, growth. not and significant to will in be on run-rate is this of to business increased a million be that I a and very, see contributor of course, capture $XXX that and worth will those quarters meaningful And expect quarter, We for would not synergies and revenue business

is that So on very a ramp. strong

month very record see cards, to on had business. in in strong March. April continue a top I cards We of, a think, which in record in We month was our credit credit growth

So that on a business is tear.

in quarter a Greg? a at quarter home record scale about business probably believe grow That has services a this having business least we are that year-over-year We more lot will XX%, in it. opportunity

Greg Wong

Yes.

Doug Valenti

that in is growth it really We just and quickly. in To more I our monster aggressively trajectory. again a so from the for you it setting we’ve have that’s better as insurance out. ourselves Credit and are pointed don’t setting And significant scale what was we levels, main and quarter. been the personal progress opportunity for to think each then rate. on doing pace much than record it month difference and know, records quarter. see synergies us, that of Services Those you up records we new again, sight our month. the in about each any you good AmOne, end feel think cards, a again, drivers I setting new path, on last And and Home loans, then

have the don’t comp year. DCEH from you still but comp test lose last mortgage the the You comp, and insurance you’d but

that explain revenue, rate to those those going breakout the driven are, it’s by to absolute but breakout of do growth But that importantly look X just new the deuce and quarter scale, number. we’re would and most well. about the as part in primarily $XXX or So this us a for million the at quarter Whatever comps record is businesses.

Greg Wong

typically would seasonally a quarter fourth quarter, I that’s momentum big we’re June right. sequentially down That’s pretty where about X% or so... add, And a going into

Adam Klauber

year, the white the getting your you’ve incremental question. on highlights media how of bucket growth about next helping of next think that mentioned some you would biggest would turn them. help next solution. Okay. and for When drivers And for my And said then a rank items we And that couple revenue growth? you within year. partners I to Thanks think drivers brands are the down the paid you’re label

Doug Valenti

one? from the the all from partnerships big initiatives From just or that media

Adam Klauber

the just partnerships. big media From

Doug Valenti

aggressively Sure. that of ramping, insurance personal very and large a us. I loans we and for brands media adopting particularly are in have online would say couple

a couple partner expanding Let to other and names great for make for become partner think real. more just insurance number expand continues in that and and you The to with ownership. me partnership Bankrate will has that a is of broaden into a their a TransUnion divisions be continues insurance, with loans. us media great expand grow to us it’s of I business particularly it NerdWallet us and It name a big it verticals us. a and across-the-board partner in IAC big us. personal for with and Simple with in Dollar is ours us. and continues a partner of of partnership growing to site. and is

handful is portfolio, just have, big and next lot a those of going with up next show and a partners on and doing them. amount That do some already a bunch that’s So, big a more. all what meaningful year. ramp we this and to steep pretty into but quarter are And then a will pretty of gosh, but us

Adam Klauber

up... following just then And

Doug Valenti

us as add are implementing dual very say ramping way, partners, and mix adding our and the would the add increased to into to personal to at and that of move me X be next our part monetization that thing that with expect loans the big next we’ll a partnerships because year, not next example. over big media let in one very be and as neglectful AmOne to as and or for it into the I going the of quarter fully But well existing because By loan turndowns this monetization APIs to scale by month several improved partners Turndowns me included we big fast-growing we the also, we into both systems. year. those

contributor well. a part that initiative So of to that will as be that very large the

Adam Klauber

you’re And helping will doing the mean then out start on that to or different mentioned rolling you’re year. to you’re then you Does insurance that continue this their that more next build going that out more out throughout big rolling agencies year? you’re you And one out just agencies, year? already carrier rolling with the quoting said two but you’ve system, test to agency been beta last Okay.

Doug Valenti

year, add whole I one at my agencies next then expect bunch this that expectation. there and we new agency a fiscal least be We will is a add much year, that we’ll expect will I of

Adam Klauber

Okay, okay.

implied gone well? out in that the So, pretty I that, those test, beta have well. have Is guess, been relative coming

Doug Valenti

They’ve well. gone extraordinarily

platform. but have, to can client, get the workflow, clients out write. lot for going this a initially And been, of other the very faster just have heck been we performance they more the ecstatic agencies, and feedback we’ve same allows business. a thing recall, more quickly, how from we’re a I very X a they I than to about agencies that the we’ve one this been And now we’re including our large to building great write same got think it. feedback, the about going think, from has with agencies committed fast sell lot slick and do and quotes And policies. progress to the clients the feedback agency saying they’re This able more has to been the exact carrier

value love going a a is agencies. the part to going margins. to great we’re QuinStreet into ecosystem be to and a great channel the SaaS-like this course, to way of great our carriers, because add the And project we technology where So, for to of the apply going be for earn that’s it it’s

So, we’re very excited about the project.

Adam Klauber

$XXX about? talking is next of help that on million the of you thinking is about been as being go part think over you’ve thought that will top Or And just million? about year, this over $XXX everything that you more

Doug Valenti

Surely none platform on top. agency have $XXX because in the include nothing this for over million quarter, platform. year just agency the I from the we’ll from virtually next of nothing

for the running We’re pilots free.

And top on is so, agency that number. of the platforms,

Adam Klauber

you much. thank very great Okay

Doug Valenti

Thank you.

Operator

Goss Research. next question from Barrington our We’ll take Jim with

Jim Goss

Okay thanks.

revenue by that things look that tests and offset how gave wasn’t X and repeated. Services revenue more growing might there plus I’d the I to give a Financial slightly client if any or that little to you some developed? assume First, mortgage like takes these you more reasons know issues. between were issue insurance the I the puts that clarity And granular and and were wonder was couple I for take base. at lower a

Doug Valenti

Jim. Sure,

of that we the the didn’t think, don’t high we’re benefited hit back test of, from large I go think But it, I know... year-over-year to spending, that we We Financial loss mortgage between the was about I market Services, a the you it. I quarter? had in and flat in the insurance level but lost in neighborhood they the think carrier of holding

Greg Wong

$XX million-or-so.

Doug Valenti

year-over-year. $XX million, $XX million

of means course, that and enough the the that. to everything rest business, in Services, only the that grew So of offset Financial they’re else

So outcome math really of the the it. that’s on

growth strong March year-over-year. had there. in So, year-over-year credit insurance very very we strong record in year-over-year, momentum we a We it cards loans and in growth personal month good had had was in

before. mortgage So, reasons quarter can it that And obviously, the from guide, of the our and this largely comp Financial fix that to itself its drivers main I was the expect you alluded see was for being of we that kind the main were mortgage flat in to Services. our year-over-year

Jim Goss

a So to quarter year with fourth that mid-teens over consistent advantage would million businesses acquired ago be type in from grow? continue the the that

Doug Valenti

quarter Sorry, an understand still the be I didn’t insurance not. comp will quite issue question, the test but will this the mortgage but

Jim Goss

with test okay. And insurance

and continuing, one is is one So, not?

Doug Valenti

Yes.

Jim Goss

more you that, some commitment not say do Or the test? the insurance are insurer? that increased who penetration? finding of same there I’m of there particular step in is With insurance Was considering that anything about that have can you did level from others sort up you are presuming the disappointment, interested

Doug Valenti

if back of really as happen for this surge let’s And that or They had The run basis. spend thought process amount big actually a ago. "We’re we to They it and advertising working would said, carriers, on the they’re and marketing feedback. actually and on spent ongoing now was this just digital activity year test we exposure by pretty they given do." But at spend was to not that the that. ready systems know But an level good. like went well other what them They our what large we way hasn’t they spend and have much believed performance we did our see was some spent that time of the surge period kind worked a carrier in over as they large amount. surge a of

what with their channel. quite they to the or level else return they did us test, anybody and for spent over prior they to spending surge significantly the the So, spend but have increase us in didn’t

We I accommodate a subsequent they at as able amount of we they with help I to are spent and that spent to about the before the is in surge. the spending what but projects couple them levels them test, are us with working the be said, prepare test the they with spent to and on us double think to

run, long opinion. a phenomenal it’s the in and think just thing, a predictable I in So, my thing very

huge failure. and for happy On success they’re the they it, but just of was not them run, what processing read a it supportive decided think would afterwards. it be it and short way I the I contrary, us. a do, to to the Quite was it we’re as It’s was

Jim Goss

quarter. the more And rate quarter, up there last I’m reported fourth Education, Okay. occur had lastly, was fourth run the likely business? a level in of the probably of in with to just assuming, the in year, bump sort that But is you quarter third

Greg Wong

calendar third Yes. it’s Education. I a quarter. of comp in to would going year-over-year at we year. the Correct. some look growth tough standpoint, a at That out to No, I would lap end going be be the the expect from it’s of to it until quarter the Again, fourth sequential see said,

Jim Goss

Okay thank you very much.

Doug Valenti

Thanks Jim.

Operator

Singular [Operator with Instructions] We Please Chris next Research. ahead. will go take question from Sakai our

Chris Sakai

and Doug Hi Greg.

Doug Valenti

Hi Chris.

Chris Sakai

near higher you on near this the or this on administrative $XX question, general was Just and seems it ago? guess, expense comment XX a was quarter why than year quick it I Can a was year million.

Greg Wong

That’s primarily took the write-off. debt Yes, million to we $X.X charge the Chris. all bad DCEH related for

Chris Sakai

I expense Okay. general with I related million that that that to question guess and is to relates write-offs, $X.X guess administrative charge is so my this next the in then?

Greg Wong

million $X.X were and to write-off obligated off. payout is offset there not So million contractually by is debt bad we sales cost $X.X it in cost to with associated related of G&A in that

Chris Sakai

that alright, Guys, alright. sense. makes Okay,

all That’s have. I alright. Okay,

Greg Wong

Thanks, Chris.

Operator

concludes are call. There further the today’s in That no queue. questions

you today’s and the of pin and and access to and for the number participation. the call, your XXXX. Thank XXXXXXX wish passcode of the is XXXX-XXX-XXXX please of XXXXXXX use replay the you XXXX. Again, XXXX-XXX-XXXX the of passcode dial If number number pin

disconnect. now may You

QuinStreet (QNST) 10 May 192019 Q3 Earnings call transcript