Company Update (NASDAQ:QNST): QuinStreet Inc Reports Financial Results for Third Quarter Fiscal Year 2016

QuinStreet Inc (NASDAQ:QNST), the leader in performance marketing products and technologies, today announced financial results for the third quarter ended March 31, 2016.

For the third quarter, the Company reported total revenue of $81.2 million, an increase of 8% compared to the same quarter last year. Total revenue grew 10% year-over-year, excluding the one-time benefit of $1.6 million related to the collection of a historical receivable in the same quarter last year. Adjusted EBITDA for the quarter was $3.5 million, or 4% of revenue. Adjusted net income for the third quarter was $1.2 million, or $0.03 per share, and GAAP net loss was $2.9 million, or ($0.06) per share.

The Company generated $5.8 million in operating cash flow and closed the third quarter with $54.8 million in cash and $39.8 million in net cash, up $4.0 million over the prior quarter.

“We grew revenue 10% year-over-year in Q3, excluding a one-time item, and delivered over $80 million in quarterly revenue for the first time since 2012,” commented Doug Valenti, QuinStreet CEO. “Adjusted EBITDA margin re-expanded, as expected, due to top-line leverage and expense management.  Revenue growth was driven primarily by strength in our Financial Services client vertical, which grew about 50% year-over-year on the success of new products and media partnerships. Our successful growth and diversification initiatives continue to scale.

“We expect revenue and adjusted EBITDA margin momentum to continue. Q4 revenue is expected to grow 15% to 16% year-over-year, beating historical sequential seasonality, with adjusted EBITDA margin at or above Q3 levels. We plan to continue to expand EBITDA margin with top-line leverage,” concluded Valenti. (Original Source)

Shares of Quinstreet opened today at $3.49, up $0.03 or -0.85%. QNST has a 1-year high of $6.82 and a 1-year low of $2.65. The stock’s 50-day moving average is $3.46 and its 200-day moving average is $3.97.

On the ratings front, Stephens Inc analyst John Campbell upgraded QNST to Buy, with a price target of $5, in a report issued on May 2. The current price target represents a potential upside of 42.0% from where the stock is currently trading. According to, Campbell has a yearly average return of 8.1%, a 71.4% success rate, and is ranked #1395 out of 3828 analysts.

QuinStreet, Inc. is an online performance marketing company that engages in the provision of vertically oriented customer acquisition programs. It operates through the Direct Marketing Services and Direct Selling Services segments. The company was founded on April 16, 1999 and is headquartered in Foster City, CA.

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