QuinStreet, Inc.

Stand by, we're about to begin. Good day and welcome to the Quinn Street Second Quarter Fiscal 2021 Financial Results Conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Hayden Blair, Investor Relations for Quinn Street. Please go ahead, sir.

Thank you, Karina. And thank you to everyone joining us as we report Quinn Street's Second Quarter of Fiscal Year 2021 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. Forward-looking 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. 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 10K filing made on August 28, 2020. 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 are 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.

Doug Valenti Thank you, Hayden, and thank you all for joining us today. Our business momentum is strong. We delivered excellent results in fiscal Q2. A sure sign of the strong momentum is that revenue excluding divested businesses grew sequentially 6 percent in the quarter. significantly better than typical seasonal declines. Year over year, revenue excluding divested businesses grew 36%. The results are driven by strength in insurance and home services, our two largest businesses. Auto insurance once again grew 57% year over year, and home services grew 165%. All that while continuing to show strong cash flow and maintaining an exceptionally strong balance sheet. We continue to make excellent progress on a wide range of short and long-term growth initiatives and continue to strengthen our products, technologies, and operations for future growth, competitive advantage, and efficiency, including we are well ahead of schedule with our integration and synergies for the modernized acquisition. Our tailwinds are strong. Marketing budgets and consumer activity continue to shift to digital at an unprecedented rate and increasingly to our core business of performance marketing and media. Within those megatrends, Twin Street performance marketplace solutions are ever more recognized by the most advanced clients as their most productive and consistent digital marketing channels at scale. We continue to make good progress with QRP in the quarter, both with the agency client pipeline and with more and deeper carrier integrations. We are in process with integrations and ramps of several of the biggest opportunities in that market. Revenue is still early, but ramping, and our long-term expectations for QRP remain exciting. Trends in credit-driven client verticals, specifically personal loans and credit cards, continued to improve in fiscal Q2. And I continue to be excited about our position in those enormous markets as the economy improves. They are future growth engines. highly synergistic with insurance and home services. Looking ahead to the current quarter, or fiscal Q3, we expect continued strong momentum and revenue growth in the insurance and home services client verticals, continued improvement in personal loans and credit cards, and continued strong overall company performance as a result. We expect revenue in fiscal Q3 to be between $145 and $150 million, which at the midpoint of the range represents 34% year-over-year growth in revenue excluding divested businesses. We expect adjusted EBITDA to be between $13 and $14 million. With that, I'll turn the call over to Greg.