QNST - QuinStreet jumps 25% to nine-month high on quarterly beat

Performance marketing name QuinStreet ( NASDAQ: QNST ) has jumped 24.7% and reached its highest point since early February fresh off beating expectations on top and bottom lines in its fiscal first-quarter earnings .

Revenues fell to $143.6M from $159.6M, but topped consensus by just over $6M.

Amid higher expenses, the company swung to an operating loss of $4.9M from a year-ago gain of $3.9M. A swing in income tax benefits softened that blow, and net income fell to -$4.5M from a year-ago gain of $3.1M.

Adjustments for $5.27M in stock-based compensation, among other adjustments, led adjusted net income to the positive side of the line, at $2.49M.

"We again delivered good results in a complex environment, and we expect to continue to do so," said CEO Doug Valenti. "Strong performance in the Home Services and Credit-driven client verticals largely offset Auto Insurance."

As well as those trends continuing in the December quarter, Valenti said "We also continue to expect a significant positive inflection in Auto Insurance beginning in January as loss ratios reset, carriers benefit from rate increases, and consumer shopping intensifies in response to higher rates."

The company has nearly $90M in cash against no bank debt, as well as $20M left in its authorization for share repurchases.

The company guided to fiscal Q2 revenue of $120M-$130M, in line with analyst expectations for $124.4M. QuinStreet sees adjusted EBITDA of about break-even.

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