Q2 2024 QuinStreet Inc Earnings Call

Operator: Good day, and welcome to Quinstreet's fiscal second quarter 2024 financial results conference call. This conference is being recorded.

Good day and welcome to <unk> fiscal second quarter 2024 financial results Conference call.

Today's conference is being recorded.

Operator: Following prepared remarks, there will be a question and answer session. At this time, I would like to turn the conference over to Senior Director of Investor Relations and Finance, Robert Amparo. Mr. Amparo, you may begin.

Following prepared remarks, there will be a question and answer session at.

At this time I would like to turn the conference over to senior director of Investor Relations and finance Robert in Peru.

Mr. <unk> you may begin.

Robert Amparo: Thank you, operator, and thank you, everyone, for joining us as we report Quinstreet's fiscal second quarter 2024 financial results. Joining me on the call today are Chief Executive Officer Doug Valenti and Chief Financial Officer Greg Wong. Before we begin, I would like to remind you that the following discussion will contain forward-looking statements. Such statements involve a number of risks and uncertainties that may cause actual results to differ materially from those projected by such statements and are not guarantees of future performance.

Thank you operator, and thank you everyone for joining us as we report Quint Street fiscal second quarter 2024 financial results. Joining me on the call today are Chief Executive Officer, Doug Valenti, and Chief Financial Officer, Greg Long before we begin I would like to remind you that the following discussion will contain forward looking statements.

Forward looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those projected by such statements.

Guarantees of future performance.

Robert Amparo: Factors that may cause results to differ from our forward-looking statements are discussed in our recent SEC filings, including our most recent 8K filing made today and our most recent 10Q filing. Forward-looking statements are based on assumptions as of today, and the company undertakes no obligation to update these statements. Today, we will be discussing both GAAP and non-GAAP measures. A reconciliation of GAAP to non-GAAP financial measures is included in today's Earnings Press release, which is available on our Investor Relations website at investor.quinstreet.com. With that, I will turn the call over to Doug Valenti. Please go ahead, sir.

Factors that may cause results to differ from our forward looking statements are discussed in our recent SEC filings, including our most recent 8-K filing made today and our most recent 10-Q filings forward.

Forward looking statements are based on assumptions as of today and the company undertakes no obligation to update these statements.

We will be discussing both GAAP and non-GAAP measures a reconciliation of GAAP to non-GAAP financial measures is included in today's earnings press release, which is available on our Investor Relations website at Investor <unk> <unk> Dot com with that I will turn the call over to Doug <unk>. Please go ahead Sir.

Douglas Valenti: Thank you, Rob, and thank you all for joining us. December was a successful quarter. We met or exceeded our objectives in the quarter and continued recent positive themes, including growing non-insurance businesses at strong rates year over year, investing in and making good progress on growth initiatives across the business, and positioning ourselves well for the re-ramp of auto insurance client spending. All that, while delivering startlingly positive adjusted EBITDA and maintaining our strong balance. I am particularly proud of those accomplishments, given that we were facing the bottom of the insurance cycle and our toughest seasonal quarter. The significant positive inflection in auto insurance client spending that we expected to begin in January has indeed begun. Auto insurance revenue is expected to be up well over 100% sequentially this quarter versus the December quarter.

Thank you Rob.

And thank you all for joining us.

You said it was a successful quarter.

We met or exceeded our objectives in the quarter.

And continued recent positive themes.

Including.

Growing non insurance businesses at strong rates year over year.

Investing in and making good progress on growth initiatives across the business.

And positioning ourselves well for the rework.

Auto insurance client spending.

All of that.

While delivering solidly positive adjusted EBITDA and.

And maintaining our strong balance sheet.

I am, particularly proud of those accomplishments.

Given that we were facing the bottom of the insurance cycle.

And our toughest seasonal quarter.

The significant positive inflection auto insurance client spending that we expect it to begin in January.

Indeed the gun.

Auto insurance revenue is expected to be up well over 100% sequentially this quarter.

Versus the December quarter.

Douglas Valenti: Auto insurance client spending increases are broad-based. Consumer Shopping Traffic Online for Auto Insurance is also up. It's Consumers React. Compound Rating of the past few years. Auto insurance clients have indicated that the stink, the Reamp of Spending, is likely to continue. Accordingly, we expect strong sequential total company revenue growth and rapid EVADOG expansion in the current March quarter and further strong sequential total company revenue growth and rapid EBITDA expansion again in the June quarter. The exact slope of the auto insurance ramp is impossible to predict.

Auto insurance client spending increases are broad based.

And consumer shopping traffic online for auto insurance is also up.

As consumers react to the compound rate increases of the past few years.

Auto insurance clients have indicated that the scheme.

<unk> spending.

It is likely to continue.

Accordingly.

We expect strong sequential total company revenue growth.

And rapid EBITDA expansion.

March quarter.

And further strong sequential total company revenue growth and rapid EBITDA expansion expansion again in the June quarter.

The exact slope of the auto insurance ramp is impossible to predict.

Douglas Valenti: But the rent is, of course, highly impacting power results. Turn to our outlook for the current, or March quarter, our fiscal Q3. We expect revenue to be between $160 and $170 million, representing sequential growth of 35% at the midpoint of the range. We expect adjusted EBITDA to jump to between $7 and $9 million.

But the ramp is of course.

Highly impactful.

Our results.

Turning to our outlook for the current March quarter.

Our fiscal Q3.

We expect revenue to be between 160 and $170 million.

Representing sequential growth of 35% at the midpoint of the range.

We expect adjusted EBITDA to jump to between seven and $9 million.

Douglas Valenti: As we capture the initial, Immediate Impact of Operating Leverage from revenue for fiscal year 2024, which ends in June, we continue to expect company revenue to grow between 5% and 15% over fiscal 2023. Looking ahead to fiscal year 2025, which begins soon in July, while detailed planning is not yet completed, I am already confident that we will expect strong, double-digit, full-year revenue growth over fiscal 2020.

We captured the initial.

Immediate impact of operating leverage from the revenue ramp.

For fiscal year 2024.

Which ends in June.

We continue to expect company revenues to grow between five and 15% over fiscal 2023.

Looking ahead to fiscal year 2025.

Which begins soon in July.

Our detailed planning is not yet completed.

I am already confident that we will expect strong double digit full year revenue growth.

For fiscal 2024.

Now.

Douglas Valenti: Before I turn the call over to Greg for more details on our financial results, let me give you my overall view. We have lived in a fierce macroeconomic storm in auto insurance, our biggest world. We have maintained positive adjusted EBIT dollars and a strong foundation throughout, thanks to strong capabilities.

Before I turn the call over to Greg for more details on our financial results.

Let me give you my overall view of where we are.

We have weather the macroeconomic storm and auto insurance.

Our biggest vertical.

We have maintained positive adjusted EBITDA.

And a strong balance sheet throughout.

Thanks to strong capabilities.

Douglas Valenti: Disciplined execution and a resilient business model. Our business model and strong financial foundation allowed us to continue to invest in the future during this period. Despite the conditions in Ottawa, we rapidly scaled to nine-figure non-insurance client burden and invested aggressively in our capabilities, product, and footprint for future growth. We are now incredibly welcome, for the near and long term.

Disciplined execution.

A resilient.

This model.

Our business model and strong financial Foundation.

Allowed us to continue to invest in the future during this period.

Despite the conditions in auto insurance.

We rapidly scaled two nine figure non insurance client verticals.

<unk> invested aggressively in our capabilities.

And footprint for future growth.

We are now incredibly well positioned for the near and long term.

Douglas Valenti: Our footprint for growth is large and diversified, representing tens of billions of dollars of the adjustable market. We have big growth opportunities in the expansion of our existing client vertical and an exciting new contiguous market and product area. Our capabilities and competitive advantages are clear and strong, and we are improving them and expanding our market opportunities at a rate unprecedented in company history. Or, I would argue..., in the history of our industry.

Our footprint for growth is large and diversified.

Representing tens of billions of dollars of addressable markets.

We have big growth opportunities and the expansion of our existing client verticals.

And an exciting new contiguous markets and product areas.

Our capabilities and competitive advantages are clear and strong.

And we are improving them and expanding our market opportunities at a rate unprecedented in company history.

I would argue.

In the history of our industry.

Gregory Wong: I have never been more confident, or bullish, about the prospects from here. Especially, of course, as auto insurance continues to adapt, normalize, and re-ramp. With that, I'll turn the call over to you. Thank you, Doug.

I have never been more confident.

We're bullish about our prospects from here.

Especially of course as auto insurance continues to adapt normalize and re ramp.

With that I'll turn the call over to Greg.

Thank you Doug.

Hello, and thanks to everyone for joining us today.

Gregory Wong: Fiscal Q2 was another solid quarter for Quinstreet. Total revenue was $122.7 million. Adjusted net loss was $2.3 million, or $0.04 per share, and Just a Divot Duff revenue was $417,000 during the quarter.

Fiscal Q2 was another solid quarter for Quint Street.

Total revenue was.

It was $122 $7 million.

Adjusted net loss was $2 3 million or <unk> <unk> per share.

And adjusted EBITDA was $417000.

Within the quarter.

Gregory Wong: We saw the auto insurance cycle bottom out in November. That being said, we are excited about the significant inflection of auto insurance client spending, which indeed began in January, looking at revenue by client vertical. Our financial services client vertical represented 58% of Q2 revenue and was $71.3 million. Our home services client vertical represented 40% of Q2 revenue and grew 15% year-over-year to $49.3 million. Other revenue was the remaining $2 million of Q2 revenue. Now turn to the balance sheet. We close the quarter with $45.5 million of cash and cash equivalents and No Bank Debt.

We saw the auto insurance cycle bottom out in November.

That being said we are excited about the significant inflection of auto insurance client spending, which indeed began in January.

Looking at revenue by client vertical.

Our financial services client vertical represented 58% for Q2 revenue.

Was $71 $3 million.

Yes.

Our home services client vertical represented 40% of Q2 revenue and grew 15% year over year to $49 3 million.

Other revenue was the remaining $2 million in Q2 revenue.

Turning to the balance sheet.

We closed the quarter with $45 $5 million of cash and equivalents and no.

Bank debt.

Yes.

Gregory Wong: Moving to our Outlook, for Fiscal Q3, our March quarter, we expect revenue to be between $160 million and $170 million, and AdjustedDivaDot to be between $7 and $9 million. For full fiscal year 2024, which ends in June, we continue to expect revenue to grow between 5 and 15 percent over fiscal 2023. In summary, let me reiterate Doug's earlier points.

Moving to our outlook.

For fiscal Q3, our March quarter.

We expect revenue to be between 160 and $170 million in.

And adjusted EBITDA to be between seven and $9 million.

For full fiscal year 2024, which ends in June.

We continue to expect revenue to grow between five and 15% over fiscal 2023.

In summary, let.

Let me reiterate doug's earlier points.

One.

Operator: Over the past few years, we have navigated a generational downturn in our largest vertical and continue to invest in long-term growth initiatives, all while generating positive adjusted EBITDA and maintaining our strong balance sheet throughout that period. Two, we are well positioned to benefit from the significant positive inflection in auto insurance client spending, which has indeed begun in January, and three. We expect strong sequential revenue growth and rapid adjusted EBITDA expansion in the March quarter and again in the June quarter. With that, I'll turn it over to the operator for Q&A. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star 1 on your touchtone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be answered in the order they are received. If you would like to withdraw from the question queue, please press star 2. If you're using a speakerphone, please lift the handset before pressing any keys.

Over the past few years, we've navigated a generational downturn in our largest vertical.

And continued invest in long term growth initiatives.

While generating positive adjusted EBITDA and maintaining our strong balance sheet throughout that period.

We are well positioned to benefit from the significant positive inflection in auto insurance client spending.

Which is indeed begun in January.

Yes.

And three.

We expect strong sequential revenue growth and rapid adjusted EBITDA expansion in the March quarter and again in the June quarter.

With that I'll turn it over the operator for Q&A.

Thank you ladies and gentlemen, we will now begin the question and answer session.

If you have a question. Please press star one on your Touchtone phone if.

You will hear a three ton prompt acknowledging your request.

And your questions will be pulled in the order they are received.

If you would like to withdraw from the question queue. Please press star two.

If you are using a speaker phone please lift the handset before pressing any keys one moment. Please for your first question.

Operator: One moment, please, for your first question. The first question comes from John Campbell of Stephens Inc. Your line is already open. Hey guys, good afternoon.

Your first question comes from John Campbell of Stephens, Inc. Your line is already open.

Hey, guys. Good afternoon, congrats on the solid quarter.

John Campbell: Congratulations on a solid quarter. Thank you, John. On the guidance, it's certainly encouraging. It feels like it's the early stages of the insurance recovery. You guys have been bracing for that.

Thank you John.

On the so on the guidance I mean, its certainly encouraging that it feels like it's kind of early stages of the insurance recovery you guys have been kind of bracing for that so it's glad I'm glad to hear that it seems like that is kind of starting to arise. It seems like you might be laying off a little bit on the guidance for next quarter, but if I look at just.

Douglas Valenti: I'm glad to hear that it seems like that is starting to arise. It seems like you might be laying off a little bit on the guidance for the next quarter, but if I look at just the back half of the fiscal year guidance, I'm looking for maybe a little bit of color if you can unpack some of those key assumptions, mainly on insurance. I think you guys, the past second half peak you guys saw, I think that was probably FY21.

The back half of the fiscal year guidance.

I'm looking for maybe a little bit color. If you can unpack some of those key assumptions mainly on insurance I think you guys.

In the past.

Second half peak you guys saw I think that was probably FY 'twenty one so maybe as a starting point if you guys could maybe shed some light on the assumptions, you're making relative to that past peak, maybe how much further down you are expecting within that guidance.

Douglas Valenti: Maybe as a starting point, if you guys could maybe shed some light on the assumptions you're making relative to that past peak, maybe how much further down you're expecting within that guidance. Yeah, John, the uh... And you touched on it, the main variable in the range of guidance for the remainder of the year is, of course, the exact slope of the insurance. We don't know exactly what it would look like, but what we do have from clients are consistent and broad-based indications of Continued Steep Ramp. Some pretty specific about what they want, where they want to get within the next few months, are some less specific, but equally bullish, and very important, more importantly, from pretty much every auto insurance client we have, which is very different from where we were last year, when we had a strong quarter Wow, other than giving you the numbers, the numbers are based on a buildup of a range of assumptions based on what they've told us and our own information on what capacity we have in the media, what budget we're likely to get from what players, and how those are likely to come together.

Yes, John.

And you touched on it there.

Variable.

In the range of guidance for the remainder of the year is of course, the exact slope with insurance ramp.

We don't know exactly what it would look like what we do have from clients.

Our consistent and broad based indications.

Continued steep ramp.

Some pretty specific about what they want where they want to get within the next few months.

Some less specific.

But equally bullish and very important.

More importantly.

From pretty much every auto insurance client, we have which is very different from where we were last year.

We had a strong quarter, but it was really kind of one client that was driving that that surge.

Ill.

Rather than giving you too so the numbers are based on a buildup of a range of.

Our assumptions based on what they've told us.

And our own <unk>.

Information on what capacity we have in media.

What budget, we're likely to get from what players and how those are likely to come together. So as I said it is impossible to predict precisely because there are too many moving parts, but what I think we tried to say in the prepared remarks.

Douglas Valenti: So, as I said, it's impossible to predict precisely because there are too many moving parts, but what I think we tried to say in the prepared remarks is that it's consistently bullish, consistently a steep ramp, and there is a lot of good data there that kind of builds up to the range of outcomes that we have. I would say that if we're going to Ere, therefore, we're likely to be a little bit more conservative in this quarter because we're still earlier in the ramp than we will be next quarter. I guess that's something you noted. And I would say that that would be our bias. I'm not suggesting that the guide is trying to characterize the guide, but I'd suggest given that we're earlier in the ramp and therefore there's a little bit less fully known, you would expect that to be the case.

Is that it's consistent.

Consistently bullish consistently a steep ramp and a lot of good data in there.

It builds up to the range of outcomes that we have I would say that we are if we're going to.

Air Therefore, we're likely to be more a little bit more conservative in this quarter, because we're still earlier in the ramp and we will be next quarter. I guess is something you'd noted and I would say that that would be our bias.

Testing.

The guidance is.

Alright, I tried to characterize the guy that suggest given that were earlier in the ramp.

Therefore, there is a little bit less fully now.

You would expect that to be the case, but if we run a series.

Douglas Valenti: But as we run a series of scenarios, with a lot of bottom-up build-ups and a lot of input from things like media capacity. We have a much bigger media footprint now, by the way, than we did last time we peaked in auto insurance, as an example. This quarter, we will be nowhere near the past peak of auto insurance revenue as in our guide. Next quarter, the range runs from below that peak to that peak and a little bit beyond that. So you can see that we're, we're, we're, uh.., kind of balancing out various Does that answer your question? Okay. Yeah, that is very helpful.

Scenarios.

With a lot of bottoms up build ups and a lot of input of data from things like media capacity, we have a much bigger media footprint now by the way than we did last time, we picked at auto insurance as an example.

This quarter, we will be nowhere near the past peak of auto insurance revenue.

As his input to our guide.

Next quarter the range runs from below that to that peak at a little bit beyond that peak.

So you can see that where we are.

Sure.

Kind of balancing out.

Various inputs is that okay. Yeah that is very helpful. Because I think some of the questions. We get is.

John Campbell: Because I think, you know, some of the questions we get are, you know, just looking at the growth rate visually, the growth rate looks pretty substantial for the fiscal 4Q, but I think the message is that, you know, getting to that high end of that guidance range is not assuming heroics relative to the past peak. Is that fair to characterize? Absolutely fair. Yeah, it doesn't, it's, it's, uh, it's... by no means in the realm of heroic or anything.

Just looking at optically the growth rate looks pretty substantial for the fiscal <unk>, but I think the message is that.

Getting to that high end of that.

Of your rent your guidance range is not assuming any real looks relative to the past peak is that fair to characterize.

Absolutely fair, yes, it does.

It's by no means in the realm of heroic or anything that if you looked at the data and the input you'd go gosh that you're never going to get there.

Douglas Valenti: If you looked at the data and the inputs, you'd go, gosh, you're never going to get that. Hey, look, we're highly confident in our guide for this quarter, which is a forty-five million dollar ramp over the last quarter at the midpoint. It would, you know, depending on how we do this quarter against that guide, you're talking about another 20 to 30 ish percent of the bottom end of the range and beyond. So I don't think it's we don't believe it's heroic.

We're highly confident in our guide for this quarter, which is a $45 million ramp.

Over last quarter at the midpoint.

To get to.

Depending on how we do this quarter against that guide Youre talking about another 20 to 30.

At the bottom end of the range and beyond so.

I don't think it's we don't believe it's a right now we think it's in the.

John Campbell: No, we think it's in the range of what we would consider realistic, based on reasonable facts. Okay, all very helpful. And then one last one here, just kind of housekeeping.

The range of what we would consider realistic reasonable fact based assumptions.

Okay. All very helpful. And then one last one here just kind of housekeeping, but on the Capex. I mean, you guys have always kind of operated with light Capex I've noticed that I guess year to date fiscal year to date Capex is like double up relative to last year and I think that your private SaaS like four four times higher so it seems like definitely a focused investment happened.

Gregory Wong: But on the CapEx, I mean, you guys have always kind of operated with light CapEx. I've noticed that, you know, I guess year to date, fiscal year to date, CapEx is like doubled up relative to last year. And I think the year prior to that, it was like four, four times higher. So it seems like definitely a focused investment is happening there. I don't know if you're at a stage now where you can shed some light on that, but I'm curious about what's driving you. Yeah, no, it's a great question.

There I don't know if you are at a stage now where you can shed some light on that but I'm curious about what's driving that.

Yeah, No. It's a great question and you're exactly right we.

Gregory Wong: And you're exactly right. We have been accelerating and being very aggressive in our software capitalization, software development, which gets capitalized, in the QRP area mainly, driven primarily by demand and by the signing of a couple of very large accounts. And we wanted, and so.

We have been.

Accelerating and being very aggressive in our software capitalization software development, which gets capitalized of course.

In the <unk> area, mainly drew.

Driven primarily by demand and by the signing of a couple of very large accounts.

And we wanted and so.

Gregory Wong: The combination of that and having to make sure the product was fully ready to launch with those big accounts early this calendar year and anticipating and seeing an increase in demand and activity for that product as the insurance market came back drove us to invest at those rates and at those levels. I can tell you that we're pretty much at the end of that cycle, and you're going to see that capitalized software development cost drop pretty significantly this quarter forward. That rats pretty much through the snake, if you will.

The combination of that and having to make sure that product was fully ready to launch with those big accounts.

Early this calendar year.

And.

Anticipating and seeing.

That increase in demand and activity for that product as the insurance market has come back drove us to to invest at those rates at those levels I can't tell you that we're pretty much at the end of that cycle.

And youre going to see that capitalized software development costs dropped pretty significantly.

This quarter.

<unk>.

That rats pretty much through the snake, if you will super excited I mean super excited about where that product is.

Gregory Wong: I'm super excited about where that product is, about the attention we're getting, about some of the big accounts we've signed, about the opportunity there. And that will only get better and better, we believe, as the insurance market continues to come back, of course. That was, you know, pretty dormant there for a while because there really weren't enough carriers.

About the attention we're getting about some of the big accounts, who sign about the opportunity there and that will only get better and better we believe as the insurance market continues to come back of course.

That was a pretty dormant there for a while because there really weren't enough carriers participating in the market to make it worthwhile.

Dan Day: Participating in the market to make it worth the while of the various brokers and agencies to invest in a product like that. But we have seen that turn pretty, pretty dramatically over the past couple of years. Very encouraging to hear. Thanks for your time, guys. Thank you, John. Your next question comes from Dan Day of B. Riley Securities. Your line is already open.

<unk> brokerage and agencies to invest in a product like that but we have seen that turn.

Pretty dramatically over the past couple of months.

Very encouraging to hear thanks for the time guys.

Thank you John.

Your next question comes from Dan <unk> of B Riley Securities. Your line is already open.

Douglas Valenti: Yeah, thanks for taking the questions, guys. It would be good if you could comment from a state level. I know there were a number of big states that have effectively been shut off, or so it seemed last year. Maybe if you could just comment on what's come back in January, like are those larger states being turned back on in a meaningful way? Any commentary there?

Yes, thanks for taking the questions guys.

Would be good if you could comment from.

From a state level I know there were a number of big states.

<unk> didn't shut off since April or so of last year.

Maybe if you could just comment with what's come back in January like are those larger states being turned back on in a meaningful way.

Any commentary there would be great.

Dan Day: Sure, Dan. You are correct. A lot of big states have been shut down by a number of carriers. In some states, pretty much all the carriers.

Sure Dan.

You are correct a lot of big States had been shut down by the number of carriers in some states pretty much all of the carriers, we have seen some reopening of some major states by major carriers.

Douglas Valenti: We have seen some reopenings of some major states by major carriers. Of course, it's a map with a lot of different participation by different carriers. So not all the carriers are opening all the states at the same time.

Of course, it's a it's a match.

Map with a lot of different.

Different participations by different carriers, so not all of the carriers are opening all the states at the same time.

Douglas Valenti: But I can tell you that we have seen some big states reopened by major carriers and by a number of carriers. And we've been told to expect that to continue. And we have gotten indications from some of our major clients that they would expect to be reopened in all major states and back to what they consider to be normalized demand, which we're nowhere back to yet, by mid-year, by mid-calendar. Okay, great.

But I can tell you that we have seen.

Some big states reopened by major carriers and by a number of carriers and we've been told to expect that to continue.

And we have gotten indications from some of our major clients that they would expect to be reopened in all major states.

And back to what they consider to be normalized.

Demand, which were nowhere back to yet by the way.

By mid year by mid calendar year.

Okay, Great sounds like good news.

Dan Day: Sounds like good news. You guys said in past quarters that you've broken out the growth and the credit-driven verticals specifically. I didn't hear any commentary this quarter.

Yes.

In past quarters, you've broken out the growth in the credit driven vertical specifically I didn't hear any commentary this quarter.

Douglas Valenti: Maybe I missed it, but can you just give us some color on how the personal loans, credit cards, other financial verticals performed and the outlook for the next couple of quarters? Yeah, the, um... The, let's see, well, home services. He didn't ask about home services.

Maybe I missed it but can you just give us some color on how the personal loans credit cards. Other connection's vertical performed and the outlook for the next couple of quarters.

Yes.

<unk>.

The let's say homes or home service you Didnt ask about home services, he saw back or about 15% of our second largest business, our third largest business and by far the biggest component of credit driven.

Douglas Valenti: He saw about 15%; it's our second largest business, our third largest business. And by far the biggest component of credit-driven verticals is personal loans, which grew 18%, 18% year-over-year in the quarter. Credit cards were actually down a little bit versus the previous year, but there was just nothing to see there other than a real tough comp. Credit cards get driven; peaks and valleys get driven by limited time offers or promotions. And last year in the December quarter, there were a lot of good promotions in the quarter. This year, there really weren't any new big promotions in the quarter.

The credit driven verticals as personal loans grew 18%, 18% year over year in the quarter.

Cards was actually down a little bit versus the previous year, but it was just.

Nothing to see there other than a real tough comp credit cards it gets driven.

Peaks and valleys driven by limited time offers or promotions.

And last year the December quarter, there are a lot of product.

Good promotions in the quarter. This year, there weren't any new big promotions in the quarter. So we would expect that even itself back out as we get as promotions start rolling back out this quarter next quarter, so and those are that those are.

Douglas Valenti: So we would expect that to even itself back out as we get, as promotions start rolling back out this quarter and next quarter. So, those are the, those are the, those are the big components. Those are 90 plus percent of the credit. Okay, great. Appreciate it.

Those are the big components those are 90 plus percent of the credit for it.

Okay, Great I appreciate it guys.

Dan Day: Yeah, thank you, Dan. Your next question comes from Mark Hagen of Lake Street Capital Markets. Your line is already open.

Yes, Thank you Dan.

Your next question comes from Mark Hagan of Lake Street capital markets Your line.

He is already open.

Mark Hagen: Hi guys, thanks for taking my call. It looks like you had some strong growth in the home services piece, but I was wondering if there was anything you could say around any impact you saw with rising rates and what that may have had on home services lead generation. That's a great question, Mark. But, you know, nothing that we could discern.

Hi, guys. Thanks for taking my call. So it looks like you had some strong growth in the home services piece, but I was wondering if there was anything you could say around any in policy saw with rising rates.

On home services lead generation.

So great question Mark.

Nothing that we could discern.

Douglas Valenti: We think, generally speaking, in our experience and in talking with our clients, that higher rates are having a number of effects. One effect is, of course, you're having consumers stay in their existing home, and that's a good thing because they're going to say, well, I'm gonna stay here because I don't want to lose my mortgage, and so I'm gonna invest in this home. And so that, I think, continues to be a theme in home services. We're trying to make sure that we're participating with our clients in those product and service areas that align with that. Beyond that, you could assume that it may be tougher for consumers to invest in bigger projects because of interest rates if they need to borrow.

We think generally speaking in.

And at our experience.

And in talking with our clients.

That higher rates.

Having number of effects one effect is of course youre, having consumer standards just you call.

That's a good thing because they're going to say well I'm going to stay here because I don't want to lose my mortgage and so I'm going to invest in this hall.

And so that I think continues to be a theme and home services were trying to make sure that we're participating.

With our clients in those that those product and service areas that align with that.

Beyond that you could assume that it may be tougher for consumers to invest in bigger projects because of interest rates if they need to borrow we haven't seen that in a meaningful way that we know of.

Douglas Valenti: We haven't seen that in a meaningful way that we know of, and we continue to believe that home services as a market for us is a double-digit grower on average, where as far as the eye can see, we're super early, it's massive, and it's just a great fit for Quinstreet. That's kind of, that's how I would answer the question. Gotcha, that's helpful. Thank you very much. That's all I have.

And we continue to believe that.

Home services as a market for us as a double digit grower on average for barge. The I can see we're super early it's massive and it's a.

A great fit for Quint Street so that's.

That's kind of.

That's how I would answer the question.

Got you that's helpful. Thank you very much.

James Charles Goss: Your next question comes from Jim Goss of Barrington Research. Your line is already open. All right, thank you. Doug, I think you might have addressed this a little bit in terms of the media footprint and capacity, but I was wondering if you could provide a couple of metrics that you could give us to point to evidence of the inflection point having been reached. Is it the volume of inquiries? Are there certain things that we might take away just in terms of... how we view that inflection having been achieved?

Your next question comes from Jim Goss of Barrington Research. Your line is already open.

Alright, thank you.

Doug I think you might have addressed this a little bit with the in terms of the media footprint and capacity, but I was wondering if you could provide a couple of metrics.

You can give us.

Pointing to evidence of the inflection point, having been reached as that volume of inquiries are there certain things that that we might takeaway just in terms of.

How we view that inflection hasn't been achieved.

Douglas Valenti: I think the main one is the one I mentioned in the prepared remarks, Jim, and that might be what you're referring to, but you know, our auto insurance revenue will be up way over 100% this quarter over the last. That's an inflection. The demand by consumers and traffic by consumers is driven by the higher rates and the fact that now you have more options coming to the market because of the client's opening states and increase in their participation. We saw a 30% jump in consumer traffic shopping online for auto insurance in January over December. And so, and then if you look, we could give you more detailed metrics client by client, but almost every one of our clients in auto insurance is up dramatically versus where they were in the calendar fourth quarter. So, you know, again, I think it.

I think the main ones. So what I mentioned in the prepared remarks, Jim that might be what you're referring to but where our auto insurance revenue would be up way over 100% this quarter over last quarter.

That's in collection.

The.

The demand by consumers.

And traffic by consumers driven by the higher rates and the fact that now you have more auctions coming to market because of the clients improve opening states and increasing their participation we saw 30% jump in consumer traffic shopping.

Online for auto insurance in January over December.

And so and then if you look we could give you more detailed metrics client by client, but and it's almost almost every one of our clients in auto insurance is up dramatically.

Versus where they were.

In the calendar fourth quarter.

So.

Again I think.

Douglas Valenti: There are a lot of different metrics and a lot of different clients and states. But the bottom line metric is, you know, and 120, 130% growth, something like that. Quarter to quarter, this quarter versus last quarter, and indications, and by the way, and accelerating, and accelerating, I mean, the amount of budget we had in December was began, was meaningfully better than November. Then we had that surge I just talked about percentage-wise in January over December, and we've grown, and that has accelerated in February, where we have significantly more budget in February and significantly more states in February than we had in January, and we have indications from clients that they, from almost all of our clients, that they want to reach significantly higher levels, including, and for some very large clients, getting to normal footprints, which means pretty much all states open So those would be the best. Those would be, I think, the main things that would reflect their win.

It's a.

A lot of different metrics in laundry for clients in states.

And part of it but the bottom line metric as you know.

Now on 120, <unk> hundred 30% growth something like that quarter over quarter this quarter versus.

Versus last quarter and indications.

And by the way and accelerating and accelerating the.

The amount of budget, we had in December which began was meaningfully better than November than they than we had that surge I just talked about percentage wise in January over December and we've grown NDA that has accelerated in February where we have significantly more budget in February and it typically more states in February than we.

In January and we have indications of clients that they.

Almost all of our clients that they want to reach significantly higher levels, including.

And towards some very large clients getting to normal footprints, which means pretty much all states open uncapped with us and today nowhere near all states are open and then they are capped in terms of their budgets at this point as they as they control their ramp baidu. So those would be the key.

Those would be the I think the main things that would reflect.

Yeah.

Douglas Valenti: Okay, and I know you mentioned the unpredictability of any of these things. These cycles, and no, not cycle is going to be exactly the same. But do you have any, does history suggest any degree of sustainability of the rebound? Is it, does it tend to be a long-term thing, or does it happen pretty quickly when it happens as dramatically as it's been happening right now? That's a good question. When I talk about it being unpredictable, I don't mean it's not possible. I said the exact slope is unpredictable.

Okay, and I know you mentioned the unpredictability of any of these things.

These cycles and no too.

Cycle is going to be exactly the same but given this history suggest any.

Degree of sustainability of the rebound of the business. It does tend to be a long running thing or.

Does it happen pretty quickly when it happens as dramatically as it's been happening right now.

No. It's a good question.

I would I talk about it being unpredictable I don't mean, it's not particularly as I said the exact slope is unpredictable that's impossible to predict what I would say that is predictable is that it is sloping it is ramping and it looks like it's going to be quite steep the sustainability is again, a very important and good question, particularly given what we went through a couple of years.

Douglas Valenti: It's impossible to predict, but what I'd say that is predictable is that it is sloping, and it is ramping, and it looks like it's going to be quite steep. Sustainability is, again, a very important and good question, particularly given what we went through a couple of years ago and then last year. I would say these are the indications from us of sustainability. One of the fundamentals if you look at the reported combined ratios and or profitability of the auto insurance carriers over the past couple of quarters, dramatically better, dramatically better, and consistently better than they were last year, the year before, and the year before that. So that's very, very important because, first and foremost, their economics have to be better dominant because they've taken rape, you know, they've gotten raped.

And then last year.

I would say here are the indications from us into sustainability.

One of the fundamentals if you look at the reported <unk>.

Combined ratios and or profitability of the auto insurance carriers over the past couple of quarters.

Dramatically better dramatically better and consistently better than they were.

Last year, the year before and the year before that so that's very very important because first and foremost the economics have to work.

Right.

The combined ratio or better.

Imminently.

<unk> taken rate I know that it's gotten rate increases they've had three comp years, a compound double digit rate increases generally speaking.

Douglas Valenti: They've had three years of compound double-digit rate increases, generally speaking. And that has given them, and also along the way, they've adjusted their footprint and their product to adapt to the economics better. So it's not just rates; it's also making other adjustments.

And that has given and all.

Also along the way they've adjusted their footprint and their product.

To adapt to that that pay the economics better. So it's not just rate. It's also making other adjustments and as a result of that we're seeing fundamentally combined ratios profitability reports very strong from all the major carriers and that you guys have seen that you will continue I think to see that.

Douglas Valenti: And as a result of that, we're seeing fundamentally combined ratios of profitability reports, very strong from all the major carriers, in that you guys have seen that you will continue, I think, to see that. I'd say the third thing is the breadth of the participation. Last year and the year before, the surge in the January quarter was very focused and narrow, so on one or a couple of carriers. We are seeing it this time amongst all of our carriers.

I'd say the third thing is the breadth of.

The of the participation.

Last year and the year before.

The surgeon does.

The January quarter was very focused and narrowly.

So.

On one or a couple of carriers.

We're seeing it this time amongst all of our carrier clients.

Douglas Valenti: I don't think it's an exact number, but I can't think of one that hasn't significantly increased their spend with us, most importantly, but also their outlook for increasing spend going forward with us, and have increased their activity much more broadly in all the other things they're doing, whether it be QRP engagement or participation with agencies or all the other stuff. So the activity level is higher, and the activity level is higher, broadly, and I would go so far as to say, virtually amongst all of them, whereas last year it was not so. So that indicates to us, and by the way, the way they talk about future months is quite specific, bullish, and credible. So I'd say that breadth of participation is also important, and the way they're participating is also important. Your question about how long it will last is a great one.

Thank you, Sir I can't think of one.

That hasnt significantly increased their spend with us most importantly, but also their outlook for increasing spend going forward with us.

And have increased their activity much more broadly at all and all the other things we're doing whether it be <unk> engagement or participated with agencies are all all of the other stuff.

So the activity level is higher and the activity level is higher.

Broadly and I would go so far to say virtually amongst all of them, whereas last year. It was not so so that that indicates to us and by the way the way to talk about future months is quite specific and bullish.

Credible so I'd say that brought the participation is also and the way to participating. It's also important your question about how long. It lasts is a great. One if you look back at what they call kind of hard and soft markets I think they call them in insurance typically the cycles are much much shorter.

Douglas Valenti: If you look back at what they call kind of hard and soft markets, I think they call them insurance. Typically, the cycles are much, much shorter for the bad markets that we've seen over the past few years. That's why Greg referred to it as generational.

For the bad markets than we've seen over the past few years, that's why Greg referred to it as generational I referred to it as you know.

Douglas Valenti: I refer to it as a fierce storm, a macroeconomic storm. This has been the worst auto insurance cycle in anyone's memory because it was such a deep, fundamentally hard thing to get out of between COVID's effect on driving behaviors but also on inflation and supply chain. And including things like, you know, tough used car markets because there weren't enough new cars to buy. I mean, it was a very tangled mess of complexity that really had a very dramatic effect on insurance carriers, and it's taken them a long time to untangle it, much longer than usual. Usually these cycles are more like, I don't know, maybe a year for the down cycles, and you usually get several good years out of them.

A storm.

Macroeconomic storm this has been the worst auto insurance cycle in anyone's memory, because it was such a deep fundamentally hard thing to get out of between.

Covid.

Cohorts effect on driving behaviors, but also on on.

Inflation and supply chain.

And including things like tough used car markets and.

Because there wasn't enough new cards to buy I mean, it was a very tangled mess of complexity. They really had a very dramatic effect on insurance carriers and it's taken them a long time to untangle it much longer than usual usually these cycles are more like.

There may be a year the down cycles that he used to get several good years after that.

Douglas Valenti: I am not an insurance industry analyst, but I think if you read the analysts that follow the industry, their view is likely to be that this is, we're likely at the beginning of a multi-year positive cycle because of all the changes the carriers have gone through, on the product side, on the footprint side, and now all the rate increases they've had. So we're, you know, subject to big weather events which have a really short cycle. I think we feel like and that the clients seem to be indicating that the outlook is quite positive as far as they go. Okay, thank you. One other little nit. Someone mentioned he had heard from an agent that there are certain states unwilling to insure certain cars because of theft risks that have come up in the past couple of years. Are you seeing things of that nature or any other weird things that could factor into any of this?

I am not in an industry that insurance industry analyst, but I think if you read the analysts that follow the industry.

Their view is likely to be.

That this is we're likely at the beginning of a multiyear positive cycle because of all the carriers have gone through.

On the product side on the footprint side and now all the rate increases they've had.

So we're subject to big weather events, which are really short cycles.

I think where we feel like the clients seem to be indicating that the outlook is quite positive orange they consume.

Okay. Thank you one other little net.

Someone mentioned.

He had heard from an agent that there are certain states unwilling to ensure certain cars because of best risks that have come up from the past couple of years.

There is there are you seeing things of that nature or any other weird things that would.

Douglas Valenti: No, it's a good question. There are things like that in the market all the time, but nothing that fundamentally affects the trajectory, not that we would expect to fundamentally affect the trajectory, no. But there's a lot of them. I mean, there are big neighborhoods in California that nobody will cover with home insurance, of course. There are big parts of Florida. I mean, there's lots and lots of stuff like that. The overall trend of the market from here appears to be up and to the right. Thanks a lot.

No Sam.

Yeah.

No. It's a good question there are things like that in the market all the time, but nothing that fundamentally affects that trajectory thought that we would expect to fundamentally affect the trajectory now, but there's there's a lot there.

There are big neighborhoods in California, then nobody will cover in home insurance of course are big parts of part I mean, there's lots and lots of stuff like that but the overall trend of the market from here appears to be up into the right.

Alright, Thanks, a lot appreciate it.

James Charles Goss: Thank you. Your next question comes from Jason Kreyer of Craig Hallam. Your line is already open. Great, thank you.

Thank you chip.

Your next question comes from Jason Prayer of Craig Hallum. Your line is already open.

Great. Thank you Doug just wondering if you could give us more color on the dialogue you are getting from carriers I know in past cycles. The resurgence in spend has been kind of driven by digital first carriers with more of the captive agencies a.

Jason Michael Kreyer: Doug, just wanted to see if you could give us more color on the dialogue you're getting from carriers. I know, in past cycles, the resurgence of spend has been kind of driven by digital-first carriers with more of the captive agencies, you know, a little bit behind them. Are you seeing that play out now? Are you seeing a little bit more increased spend out of both boxes? More out of both, actually.

A little bit behind them are you seeing that play out now or are you seeing a little bit more increased spend out of both buckets.

More out of both actually.

Douglas Valenti: We reviewed the auto insurance market and business with the board recently at the last board meeting, and one of the slides showed how much more diverse the footprint was for us and by implications in terms of overall industry demand than it was, say, last year for this quarter, and pretty dramatically so, I would note. So we are seeing it more broadly-based than we have seen in past cycles. I think that's generally the case.

We reviewed the.

The auto insurance market in business with the board recently at the last board meeting in one of the slides showed how much more diverse.

Footprint.

Was for us and by implications in terms of overall industry demand than it was say last year for this quarter.

Pretty dramatically. So I would note. So we are seeing it more broad based than we have seen we have seen in past cycles. I think that's generally the case, but I think it's also specific to us.

Douglas Valenti: But I think it's also specific to us because we do have a bigger footprint now than we did last cycle. We have a broad, we participate much more broadly in other parts of the digital landscape. We used to be all dominantly clicks; now we have clicks, calls, and we, services like QRP, things like that. So, we appear to be seeing it, and again, this is anecdotal, but we appear to be seeing it more broadly in answer to your question. That's great. So as the re-ramp continues to build, I'm just curious what you think your prospects are for taking market share over the next several months. I think it's good.

Because we do have a bigger footprint now than we did last cycle, we have a broad we participate much more broadly.

In other.

Other parts of the digital landscape.

We should be all dominantly clicks that we have clicks calls leads.

Services like <unk> things like that so, but but we appear to be seeing it.

No.

This is anecdotal, but we appear to be seeing it more broadly.

And answer to your question.

That's great. So as the re ramp continues to build I'm just curious what you think your prospects are for.

For taking market share over the next several months.

I think it's good.

Douglas Valenti: We have not lost a share on the media side. In fact, we've significantly gained a share on the media side through this period. We've recently signed a very big player in media that we're going to be adding to that already winding cycle as we launch that in the next month and a half or two months. And I don't, nobody's been able to invest in the product that expands the market and expand our footprint in that market like we have through this period because we had the wherewithal to do so. We didn't have any debt.

We have not lost.

Sure on the media side separately significantly gained share on the media side through this period.

We've recently signed.

Very big player in media.

That we're gonna be adding to.

That already when cycle.

As we launched that in the next month and half or two months.

And I don't nobody has been able to invest.

In the products.

That expand the market and expand our footprint in that market like we have through this period could we have the wherewithal to do so we didn't have that we did have we had positive cash flow we have positive operating cash flow positive.

Douglas Valenti: We did have, we had positive cash flow. We had our positive operating cash flow, positive adjusted EBITDA, if you will. And most of the other players in the market had debt and or were much more deeply tied to the auto insurance cycle or had other problems like mortgages and just did not have the capacity to do what we've been able to do in terms of aggressive investment through the cycle.

Adjusted EBITDA, if you will.

And most of the other players in the market had debt and dor were much more deeply tied to the auto insurance cycle or had other problems like mortgage.

And just did not have the capacity to do what we've been able to do in terms of aggressive investments through the cycle and what we've invested in are things that we expect have and will continue to build.

Douglas Valenti: And what we've invested in are things that we expect to have and will continue to build, not just to grow the channel and grow our footprint in the channel, but also to take share. We've gained share. We think we'll continue to do that. Just one more, if you don't mind. You teased out some data or just some statements earlier on QRP. I know you don't want to break out numbers or contributions.

Not just to grow the channel and grow our footprint the Cheddar Bo also take share.

We gained share we think we'll continue to do that.

Just one more if you don't mind, you teased out some data or just some some statements earlier on <unk>.

I know you don't want to breakout numbers or contribution I'm just curious.

Douglas Valenti: I'm just curious, you know, maybe how big you like the rate of change, how big that can become, or at any specific point in time where you think that can be a bigger contribution and more meaningful to your fundamental. Yeah, that's a good question that we, and we've only invested in that product because we do think it's going to be very big for us. We think tens of millions of dollars is... Douglas Goss, John Campbell, Eric Martinuzzi, Bruce Goldfarb, Jason Kreyer, Erica Abrams, over time. We don't expect we'll get 100% of that market. That's why I say maybe tens of millions of dollars.

Maybe how big you are.

Rate of change how big that can be com or at any specific point in time, where you think that can be a bigger contribution in a more meaningful to your fundamentals.

Yeah. It's a good question and we've only invested in that product because we do think it's going to be very big for us.

We think tens of millions of dollars as well.

Exactly what it ought to be and it could be bigger than that particularly if you look at the <unk>.

The side effects of it and the combination of it with other.

<unk>.

To service the channel. So we think it's a.

Many tens of millions of dollars of opportunity, we think it's a market that's over $100 billion.

Addressable market.

Over time, we don't expect we will get 100% of that market. That's why I say, maybe tens of millions of dollars. Although we do think we're way ahead of anybody else in terms of the product.

Douglas Valenti: But we do think we're way ahead of anybody else in terms of the product and where you go with this product. It will ramp up with a little bit of a lag to the overall market coming back because you have the market coming back and the marketing spend, the clients participating, and then you have the agencies revving up because now they have participation in the product, and now they're willing to invest in and work on projects like QRP, which allows them to be more efficient, more productive in the market than they can be without it. So I think it will lag, but we clearly see a ramp.

And where you go with this product.

We it will ramp with a little bit of a lag.

To the overall market coming back because you have the market coming back in but marketing spend at clients participating and then you have the agencies revving up because now they have participation in product and now they are willing to invest in and work on projects like <unk>, which allows them to be more efficient more productive in the market.

Then they would do they can do without it so I think it will lag, but we clearly see a ramp we expect a quite a significant ramp this year.

Douglas Valenti: We expect quite a significant ramp this year to, you know. I'm going to say this year, I mean, the remainder of this calendar year and next fiscal year. We would expect a ramp back up. We're already running at, you know, seven figures below.

Two.

No.

When I say this year I mean, the remainder of this calendar year and next fiscal year.

We would expect to ramp back up we're already running at seven figures, but low.

Douglas Valenti: We would expect that to be in the mid to high seven figures certainly next fiscal year and the fiscal year after that. I'm hoping that we can get well beyond that and start reaching for the eight-figure number. So, it's meaningful. That revenue is very, very highly contributing. It's not a normal 30%.

We'd expect that to got to get to be.

Mid to high seven figures certainly next fiscal year in the fiscal year after that I'm, hoping that we can get.

Well beyond that and start reaching 48 figure number so.

Douglas Valenti: Incremental revenue and QRP is generally going to be about $80 to $85 per month as we get to, you know, as you get to just a little bit more scale. So we think it's highly accretive and a big market opportunity. We don't, we haven't, you know, we'll probably have an Investor Day here in the next... As long as the insurance ramp keeps going like we expect it to, I would expect we'll have an investor day in the next 6 to 12 months, where we will get in more detail about QRP and where we are with that. I will introduce maybe a couple of the big client programs that we now have running, by the way, either one So these are signed contracts. So we're, you know, we like it a lot, still coming. It was certainly delayed by everything else.

It's meaningful.

And that that revenue was very very highly contributing right.

It's not a normal 30%.

Incremental revenue in Q R P.

Is generally going to be about 80% to 85%.

As we get to you know as you get to just a little bit more scale.

No.

We think it's highly accretive big.

Big market opportunity.

We don't we haven't.

We'll probably have an investor day here in the next.

As long as insurance ramp keeps going like we expected to I would expect we'll have an investor day in the next six to 12 months, where we will get in more detail.

Andy.

<unk>, where we are that I'll introduce maybe a couple of the big client programs that we now have running.

Either one of which could be.

Well into the seven figures and beyond all by themselves. So these are signed contracts signed clients. So where are we like it a lot. It's still coming it was certainly delayed by everything else that was delayed in auto insurance.

Jason Michael Kreyer: It was delayed in auto insurance, but we have seen a lot of resurgence of activity and have had a lot of success with big signings recently that are in the, you know, launch and ramp stages over the next few months. And we'll be talking more and more about it as we move ahead. And we'll start breaking it out at some point in the future, I imagine. But you know, we're going to get back on our feet and start trotting again with it before we do. Got it. Thanks for all the color, Doug.

But we have seen a lot of resurgence of activity in that pad.

A lot of success with.

With.

Big signings recently that are in the.

Launch and ramp stages over the next few months and we'll be talking more and more about it as we move ahead.

And we'll start breaking it out at some point in the future I imagine.

But we're gonna get get back on our feet and start traveling again with it before we'll do that.

Got it thanks for all the color Doug I appreciate it.

Chris Sakai: I appreciate it. Thank you, Jason. Your next question comes from Chris Sakai of Singular Research. Your line is already open. Hi, Doug and Greg.

Thank you Jason.

Yes.

Yeah.

Your next question comes from Chris Sakai of singular research. Your line is already open.

Hi, good afternoon, Doug and Greg.

Douglas Valenti: Just a question on Q4, it seems like a lot of growth is being put on to Q4, what are the chances you see auto insurance not ramping as fast as you want to get to these Q4 numbers? I'd say that we have that in the range, Chris. I think we have a, you know, we said five to 15% for the year covers a lot of territory at our scale. So we would, you know, we think there's certainly means we think there's a chance we won't get to the high end. But I think there's a chance we will do better than the low end.

Just a question on on Q4, it seems like.

Lot of growth is being put on for Q4.

What are the chances that you see.

Auto insurance not ramping as fast as you want.

To get to this Q4 number the Q4 numbers.

I would say that we have that in the range. Chris I think we have a we said 5% to 15% for near covers a lot of territory at our scale.

So we would you know we think there is certainly means we think there's a chance we won't get to the high end.

I think there's a chance we will do better than the low end.

Douglas Valenti: But we're, you know, we like the ramp, as I said earlier, this quarter over last quarter. We're representing about a $45 million dollar ramp in terms of sequential growth. The bottom end of the range, I think, beyond that represents another 20-ish, or so, depending on where we land in the range, 20 to 25, I guess, depending on where we land in the range, on top of that, sequentially, so we're not, we're not, we're actually reflecting at the bottom end of the range, www.globalonenessproject.org of the Rampant Auto Insurance. So again, as I said The exact point where we end up in that range is going to be pretty dependent on the slope of the auto insurance re-ramp. And while it's steep, it's hard for us to predict precisely the slope.

But we're we like the ramp as I said earlier, you know this quarter over last quarter.

We're representing about a $45 million ramp.

Over in terms of sequential growth.

The bottom end of the range I think beyond that represents another twentyish.

So depending on where we land in the range 20 to 25, I guess, depending on where we land in the range on top of that sequentially. So we're not we're not.

Actually reflecting at the bottom end of the range a slowing of the sequential ramp.

But even though we're seeing right now in acceleration.

The rapid auto insurance so.

Again, as I said earlier I think.

We will.

We still think we're going to end up in that range.

The exact point, where we end up in that range is going to be.

Pretty dependent on the slope of the auto insurance re ramp in <unk>.

It's deep it's hard to predict.

Precisely the slope and so that's really kind of reflected in what you are seeing but I'd say, that's how I would characterize it under get it's mostly driven by the auto insurance ramp but of course, we're still we're still got a lot of great initiatives and growth and momentum in home services, which is the 200 and something million.

Douglas Valenti: And so that's really kind of reflected in what you're seeing, but I'd say that's how I would characterize it. And again, it's mostly driven by the auto insurance ramp, but of course, we're still got a lot of great initiatives and growth and momentum in home services, which is the 200 and something million dollar a year business, personal loans, which is a 100 and something million dollar business, and credit cards. As we see more promotions in the market, it is likely to benefit from those. So it is a footprint all in all, but again.

And our business.

Personal loans, which is a 100 and something million dollar business in credit cards.

We've seen more promotions in the market is likely to benefit from those so.

The footprint all in all but again.

Douglas Valenti: I'd say that where we end up on the ramp is going to be dependent, mostly on exactly how that what that stuff looks like in auto insurance, but we don't think. We don't think the top end is crazy, and we think the bottom end is something we're pretty comfortable with. In a strategic way, do you, have you thought about trying to diversify away from these auto insurance, these swings in auto insurance? No.

I'd say, the where we ended up and the ramp is going to be dependent.

Mostly on exactly how that debt what that slope looks like in auto insurance, but we don't think.

But we don't think the top end is crazy and we don't think and we think the bottom end is yes.

There is something we're pretty comfortable.

In a strategic way.

Do you have you thought about trying to diversify away from these this auto insurance.

These these swings in auto insurance.

No I mean, we will diversify we have diversified REIT we are.

Douglas Valenti: I mean, we will diversify. We have already diversified, right? We have. This is the beginning of this auto insurance cycle, I don't think. I don't know, home services, Greg, is it more than doubled through this period? www.mytrendyphone.co.uk Yeah, you're probably about right, and personal loans have probably doubled through this period. So, you know, we've taken we've pretty dramatically increased our footprint and diversified through this cycle because we found great new market opportunities are great with Quinstreet. But we didn't do that to diversify away from Ottawa.

Beginning of this auto insurance cycle I don't think.

I Dunno home services, Greg is it more than doubled.

Through this period.

Youre probably about right.

And personal loans is probably doubled through this period.

We've taken we've pretty dramatically increased.

Our footprint and diversified through this cycle, because we found great new op market opportunities are great quick with Quint Street.

We didn't do that to diversify away from auto insurance Auto insurance. We believe is a it's a great market for us.

Douglas Valenti: Auto insurance, we believe, is a great market for us forever. It's a great product. We have phenomenal capability. We have a great media footprint. We have the best products and services in the market. We have very close relationships with great clients that are the best players in that industry. Auto insurance is going to be driven by marketing for as long as any of us are gonna be watching it because of the nature of their business model, which is rates controlled by regulatory authorities. And so if you're gonna grow shareholder value over time, you're likely gonna have to grow that by gaining market share rather than by expanding margin or pricing because your margin and price are controlled, regulated, at the end of the day by, you know, I' So, hey, we structurally we love it.

For ever.

It's a great market.

We have phenomenal capabilities.

We have a great media footprint, we have.

The best products and services in the market, but we have very close relationships with the great clients that are the best players in that industry are auto insurance is going to be driven by marketing for as long as any of us are going to be watching it.

Because of the nature of their business model, which is rates are controlled by regulatory authorities and so if you're going to grow shareholder value over time.

Likely they're going to have to grow that by gaining market share.

Rather than by expanding margin or pricing, because your margin and pricing our control regulated.

At the end of the day bye.

All overstate this perfect 50 state insurance Commissioners basic.

Basically.

So hey, we structurally we love it it's a big market, we have a great position in it we're going to keep doing it we think we'll grow it too many times our current size with the with the initiatives. We have in place to continue to do that and we will grow other client verticals too.

Douglas Valenti: It's a big market. We have a great position in it. We're going to keep doing it.

Douglas Valenti: We think we'll grow it to many times its current size with the initiatives we have in place to continue to do that, and we will grow other client verticals too. And we think that our footprint in the home, we think home services is our biggest adjustable market, significantly bigger than auto insurance over time. And we've shown we can scale that. We're going to keep doing that. We think personal loans are as big or bigger, depending on how you define the lending market. We've shown we can scale that, and we will continue to show we can scale that over time. We love our position there.

And we think that our footprint in home, we think home services is our biggest addressable market significantly bigger than auto insurance over time, and we've shown we can scale that we're going to keep doing that we think personal loans is as big or bigger.

Depending on how you define the lending market, where we've shown we can scale that we will continue to show we can scale that over time, we love our position there and we like the other credits where the business is in credit cards.

Douglas Valenti: And we'd like the other credit to go to other businesses and credit cards and banking, which are in an earlier stage. But combined, now we're approaching $100 million a year in revenue, and I think we will soon eclipse that with just those two together.

And banking, which are earlier stage, but combined now are approaching $100 million a year in revenue and I think we will soon eclipsed that.

Chris Sakai: Yeah, we got, we have, we have a good footprint that is diversified. It will include auto insurance and a lot of products and services to expand to products and services around auto insurance and home insurance and everything else going forward. Okay, thanks. Thank you. Thank you, and there are no further questions at this time. Thank you everyone for taking the time to join Quinstreet's earnings call. Replay information is available in the earnings press release issued this afternoon. This concludes today's conference call. Thank you for your participation, and you may now disconnect.

To just those two together so yeah.

Yeah, We got we have we have a good footprint as diversified it will include auto insurance and a lot of.

Expansion of products and services around auto insurance and home insurance and everything else going forward.

Okay. Thanks.

Thank you.

Thank you and there are no further questions at this time.

Thank you everyone for taking the time to join clean streets earnings call.

Play information is available on the earnings press release issued this afternoon.

This concludes today's conference call. Thank you for your participation and you may now disconnect.