QuinStreet, Inc. (NASDAQ:QNST) Q4 2018 Earnings Conference Call - Final Transcript

Aug 07, 2018 • 08:30 am ET


QuinStreet, Inc. (NASDAQ:QNST) Q4 2018 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, hello and welcome to QuinStreet Fourth Quarter and Fiscal Year 2018 Financial Results Conference Call. Today's conference is being recorded. After our prepared remarks, we'll be opening the floor for your questions. (Operator Instructions).

It is now my pleasure to introduce today's first presenter Ms. Erica Abrams.

Erica Abrams

Thank you, David. Good morning, ladies and gentlemen. Thank you for joining us today to report QuinStreet's fourth quarter and fiscal year 2018 financial results. Joining me on the call today are Doug Valenti, CEO; and Greg Wong, CFO of QuinStreet. This call is being simultaneously webcast on the IR section of our website at www.quinstreet.com.

(Forward-Looking Cautionary Statements)

With that I will turn the call over to Doug Valenti, CEO of QuinStreet. Please go ahead.

Doug Valenti

Thank you, Erica. And thank you all for joining us this morning.

Our business fundamentals and momentum remained strong fiscal fourth quarter. QuinStreet strategies and products are meeting increasing demand for performance marketing, and taking share with clients and in media. Q4 accounted to be a strong growth, record revenue and expanded margins and cash flow. In Q4 itself, we saw strength across the business. Greg will go over the impressive numbers in more detail in a moment.

As is always the case for QuinStreet, our success was driven by measurable results for our clients and media partners, and those results were enabled by our three key formidable competitive advantages. One, large client and media networks with deep integrations; two, industry-leading virtual market place products and technologies; and three, an unparalleled, steep and expensive to build performance marketing experience curve.

We see an enormous long-term business opportunity as digital media and marketing continue to grow and scale on importance. As truly measured performance marketing, increases in share of digital and as our competitive advantages enable us to gain share in performance marketing. Net, we expect to be able to continue to increase our share of a large and growing long-term market. We are still a small piece of a very big and growing market pie. In the mean time, current business momentum remains strong. We expect revenue to be up double-digits again in the new fiscal year and that we will further expand EBITDA margins.

Turning more specifically to our outlook. Similar to last year, we plan to provide our outlook for full fiscal year 2019, not for individual quarters. Also similar to last year, we will set our initial outlook at a level that we believe to be fairly conservative. We then plan to refine or tighten expectations as the year progresses. So, with that as context, we expect full fiscal year 2019 revenue to be up at least 10% year-over-year, and that full-year adjusted EBITDA margin will expand to approximately 10%.

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

Greg Wong

Thank you, Doug. Hello and thanks to everyone for joining us today. As you know from our press release, we had a very strong fourth quarter, which wrapped up an outstanding 2018. Today,