QuinStreet Q1 revenue beats estimates on continued auto insurance strength
Overview
US performance marketplaces provider's fiscal Q1 revenue rose 46% yr/yr, beating analyst expectations
Adjusted EBITDA for fiscal Q1 more than doubled, beating analyst expectations
Company raised full-year 2027 outlook for revenue and adjusted EBITDA
Outlook
QuinStreet raises FY27 revenue outlook to $1.5-$1.6 bln, up from prior guidance
Company lifts FY27 adj EBITDA outlook to $155-$165 mln
QuinStreet expects Q2 revenue of $360-$380 mln and adj EBITDA of $32-$33 mln
Result Drivers
AUTO INSURANCE DEMAND - Co said continued strength and broadening of carrier demand in auto insurance drove results
HOME SERVICES MOMENTUM - Co said strong momentum continued across its Home Services platform, including HomeBuddy integration
AI ADOPTION - Co said it is applying AI across its business to improve productivity and impact, with impressive results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $416.65 mln | $373.88 mln (6 Analysts) |
Q1 Net Income | $17.02 mln | ||
Q1 Adjusted EBITDA | Beat | $42.70 mln | $38.26 mln (6 Analysts) |
Q1 Gross Profit | $53.32 mln | ||
Q1 Operating Income | $23.29 mln | ||
Q1 Pretax Profit | $21.13 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "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 $22.50, about 23% above its November 3 closing price of $18.29
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)