QuinStreet, Inc. (NASDAQ:QNST) Q4 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 05:00 pm ET


QuinStreet, Inc. (NASDAQ:QNST) Q4 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good day, and welcome to the QuinStreet Fourth Quarter and Fiscal Year 2019 Financial Results Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Ms. Erica Abrams. Ma'am, please go ahead.

Erika Abrams

Thank you, Chelsea. Good afternoon, ladies and gentlemen. Thank you for joining us today to report QuinStreet's Fourth Quarter and 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 May 10, 2019. 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.

Douglas Valenti

Thank you, Erica. Fiscal Q4 was a record revenue quarter for the company, closing out a record revenue year in fiscal 2019. Business ramped throughout the quarter, and June was a record revenue month. There's a lot of momentum in the business. Our business footprint expansion over the past few years has created an enormous amount of activity and opportunity and a great number of attractive growth initiatives, or greater number of attractive growth initiatives, than at any time in company history.

That momentum and those efforts lifted us to the record results, which also included growing strongly sequentially from the March to June quarters, contrary to a typical seasonal drop. We expect to grow sequentially this quarter, our fiscal 2020 Q1, again handily beating typical seasonal patterns and setting another quarterly revenue record. We also expect yet another annual revenue record in full fiscal year 2020. That said, fiscal Q4 results were disappointing versus our expectations and outlook. The results were particularly disappointing given the business trajectory and forecast we had through the first two months of the quarter.

The revenue forecast came down by over $6 million in the last few weeks of June as the rate of acceleration and results from a number of initiatives slowed or stalled due to various factors. Some of the causes had to do with client or media partner delays or setbacks. Most of those have gotten, or will get back on track. But the fall-off also exposed the clear need for us to improve operations and execution to better manage the increase