What happened
Shares of QuinStreet (QNST -3.85%) surged on Thursday after the marketing company reported its fiscal second-quarter results. While earnings matched analyst expectations, revenue came in higher than expected. As of 1:13 p.m. EST, the stock was up about 17%.
So what
QuinStreet reported second-quarter revenue of $118.1 million, up 13.4% year over year and about $3.8 million higher than the average analyst estimate. Both the financial services and home services client verticals grew by 20% year over year.
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QuinStreet touted the ramp of its QuinStreet Rating Platform (QRP), which helps insurance agents manage their workflow. The company expects six large insurance agency clients to launch shortly, representing an annual revenue opportunity of $10 million. Additionally, QRP clients that have not yet signed represent another $10 million of annual revenue.
Non-GAAP (adjusted) earnings per share came in at $0.12, flat from the prior-year period and in line with analyst expectations.
Now what
In addition to reporting its results, QuinStreet gave an update on its strategic alternatives review. The process is ongoing, and the company is now assessing a variety of options that have been proposed. It also said that it's begun to divest underperforming businesses, with a goal of narrowing its focus on a smaller number of market opportunities.
While shares of QuinStreet rallied on Thursday, the small-cap stock remains down nearly 25% over the past year.
