QuinStreet reported a strong sequential and notable year-over-year lift in QQ4 2024 revenue, driven by higher activity in its online performance marketing platform. Revenue reached $198.3 million, up 17.6% QoQ and 52.2% YoY, while gross profit rose to $17.4 million and gross margin expanded to approximately 8.8%. Despite the top-line strength, the company posted an operating loss of about $1.4 million and a net loss of $2.16 million for the quarter, reflecting ongoing investments in capability and client mix. Positive free cash flow of roughly $12.9 million and a net cash position (net debt of about $39.5 million) underpin balance sheet resilience and liquidity to fund growth initiatives. Management commentary was not included in the provided data, so the assessment relies on the disclosed P&L, cash flow, and balance sheet dynamics to gauge near-term earnings quality and longer-term leverage of QuinStreet’s performance-marketing model.
Key Performance Indicators
Revenue
Increasing
198.32M
QoQ: 17.64% | YoY: 52.19%
Gross Profit
Increasing
17.43M
8.79% margin
QoQ: 21.82% | YoY: 64.48%
Operating Income
Increasing
-1.44M
QoQ: 73.01% | YoY: 73.04%
Net Income
Increasing
-2.16M
QoQ: 69.30% | YoY: 96.13%
EPS
Increasing
-0.04
QoQ: 69.92% | YoY: 96.20%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $198.3M, up 52.2% YoY and 17.6% QoQ. Gross Profit: $17.4M; Gross Margin: ~8.79%. Operating Income: -$1.44M; Operating Margin: -0.72%. EBITDA: $5.17M; EBITDA Margin: ~2.61%. Net Income: -$2.16M; Net Margin: -1.09%. EPS: -$0.039. Free Cash Flow: $12.91M; OCF: $16.56M; Cash from Operations Margin: ~8.35%. DSO: 50.76 days; CCC: 26.77 days. Cash and equivalents: $50.49M; Total Debt: $10.97M; Net Debt: -$39.52M (net cash). Current ratio: 1.34. Shares (weighted): 55.38M. YoY and QoQ metric highlights show meaningful improvements in profitability metrics alongside persistent negative net income on a GAAP basis, indicating continued investment phase despite robust cash generation.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
198.32M
52.19%
17.64%
Gross Profit
17.43M
64.48%
21.82%
Operating Income
-1.44M
73.04%
73.01%
Net Income
-2.16M
96.13%
69.30%
EPS
-0.04
96.20%
69.92%
Key Financial Ratios
Gross Profit Margin
Weak
8.79%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.01%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.01%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.34
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.05
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-102.17x
Negative earnings make P/E ratio not meaningful
Price to Book
Premium
4.08x
Trading at premium to book value, reflects strong intangibles or growth
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