QuinStreet, Inc.

Good day and welcome to Quinn Street's Fiscal Fourth Quarter and Full Year 2023 Financial Results Conference Call. Today's conference is being recorded. Following prepared remarks, there will be a question and answer session. If you have a question during the question and answer session, please press star 1 to enter the queue. 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.

Thank you, operator, and thank you, everyone, for joining us as we report Quinn Street's fiscal fourth quarter and full year 2023 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 8 filing made today and our most recent 10 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.

Thank you, Rob. Welcome, everyone. Quinn Street had a very successful fiscal Q4. We continue to make great progress against our big non-insurance market opportunities. Those nine-figure revenue client verticals grew at strong double-digit rates year over year in the quarter and represented 75 percent of total revenue. We expect to grow those businesses at double-digit rates for years. We also continue to invest smartly and effectively in our next generation products and capabilities, including in insurance, where we are positioned to take maximum advantage of the re-inflection of carrier marketing budgets. We expect that re-inflection to begin in January. Lastly, regarding Q4, we continued to demonstrate operational and financial excellence, as well as resilience in our business model. We delivered better than expected revenue, profits, and cash flow, improving our already strong balance sheet. while navigating the auto insurance market and while maintaining high levels of investment in important new products, technologies, and growth initiatives. Moving to our outlook. First, for the new full fiscal year 2024, which began on July 1st. We continue to expect that revenue and adjusted EBITDA will grow at double-digit rates year-over-year this fiscal year, driven mainly by continued momentum and scale in non-insurance client verticals. We also expect a significant positive inflection in auto insurance client spending to begin in January or the second half of our fiscal 2024. We will also, of course, continue to maintain our strong balance sheet in fiscal 2024. Regarding our outlook for fiscal Q1, or the September quarter, we expect revenue to be between $120 and $125 million, and adjusted EBITDA to be approximately breakeven. Finally, our longer-term outlook has never been better. We expect to deliver double-digit annual revenue growth rates. We could do so just based on continued strong performance in non-insurance businesses. Revenue from non-insurance businesses is now running at almost $400 million per year. It grew 26 percent in fiscal 2023 and has grown organically at a compound annual rate of 19 percent over the past three years. We also expect insurance revenue to be up and to the right over the longer term, eventually returning to and exceeding prior peak levels, as carriers benefit from compound rate increases, product changes, cooling inflation, and improving supply chain. and allowing the shift to digital and performance marketing to reassert itself as the dominant long-term trend. We expect adjusted EBITDA to grow faster than revenue as we scale the top line faster than expenses, eventually reaching and exceeding an adjusted EBITDA margin of 10 percent. With that, I'll turn the call over to Greg.