QuinStreet, Inc. (NASDAQ:QNST) Q2 2019 Earnings Conference Call Transcript
Feb 07, 2019 • 05:00 pm ET
Good day, and welcome to the QuinStreet Second Quarter 2019 Earnings Conference Call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Ms. Erica Abrams. Please go ahead, ma'am.
Thank you, Brad. Good morning, ladies and gentlemen. Thank you for joining us today as we report QuinStreet's second quarter fiscal year 2019 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 Investor Relations section of our website at www.quinstreet.com.
Before we get started, I would like to remind you that the following discussion contains forward-looking statements. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those projected by such statements and are not guarantees of future performance. Factors that may cause the results to differ from our forward-looking statements are discussed in our recent SEC filings, including our most recent 10-Q filing, made on November 9, 2018. 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.
With that, I will turn the call over to Doug, CEO of QuinStreet. Please go ahead.
Thank you, Erica, and thank you all for joining us.
We continued to make good progress and to see strong demand for our performance marketplace solutions in fiscal Q2. I was particularly excited about the breadth of our growth momentum in the quarter, as more progress with our product and media initiatives, led to faster growth at scale in more verticals. That broadening and acceleration of growth at scale in more verticals is indicative of the main theme I always try to emphasize with shareholders and investors. And that is delivering on digital media's capacity for transparent, targeted, measurable and optimized marketing is a huge long-term opportunity and trend. And we are still very early on that part.
No one has the combination of products, networks and technologies or results to deliver on that promise in our verticals that QuinStreet has. And our capabilities and rate of progress and innovation to increase those capabilities are the strongest they have been in our 19-year existence.
The strong growth contributions from a broader set of verticals in fiscal Q2 offset greater than expected weakness in education and mortgage. Education due mainly to restructuring and budget loss from our largest client in that vertical and mortgage due to cyclical softness in that market. We now expect revenue from both of those businesses to be down significantly year-over-year in the back half of fiscal 2019.
Revenue in all other verticals including insurance, credit cards, personal loans, banking, home services and B2B grew at double and triple-digit rates year-over-year, driving good quarterly results overall.
We grew total