QuinStreet, Inc. (NASDAQ:QNST) Q2 2023 Earnings Call Transcript

And so, we have seen some effect there. Not huge, but some. And it’s partly — I almost said largely, marginally might be the better adverb, but let’s say for now partly offset, by the fact that as you know in our personal loans business, we also match to credit repair, credit counseling and debt settlement clients. And so oftentimes, there are two things that can feed our personal loans business about credit. One is as consumers are trying to get more on their credit card balances, we see stronger demand for credit card debt consolidation in personal loans, and that is beginning to happen. And we also see more consumers get into a little bit of trouble, with our credit particularly at the lower income levels, and they end up needing assistance of other types of assistance like, credit repair, credit accounts and debt settlement, which we and we have a big business and big clients, big high-quality clients that serve those consumers.

So net-net, the credit side of the business is in really good shape.

John Campbell: Okay, very helpful. Thank you, Doug.

Doug Valenti: Thanks, John

Operator: Our next question comes from Max Michaelis with Lake Street Capital Markets. Please state your question.

Max Michaelis: Hi, guys. Thanks for taking my question. I just want to touch on the guide for next quarter. So you had a nice quarter out of Home Services. I think they grew 27%, maybe not growing that fast next quarter but let’s think mid-teens low 20%. Do you think Q3 grows at similar rates? Just trying to get a gauge on how much growth we could see out of the Auto Insurance and Fin Services segment? Thanks.

Doug Valenti: Thanks, Matt. Greg, I’m not sure, I mean, we — I think year-over-year growth implied in the guide is what Greg for the March quarter?

Greg Wong: Yes, at the midpoint in the March quarter it’s 10% year-over-year growth. And so..

Max Michaelis: Yes. But, I guess, I’m trying to gauge whether or not we should see similar type growth out of the Home Services segment because I’m trying to gauge how much Financial Services would grow year-over-year. I guess, that’s what I’m trying to ask.

Greg Wong: We don’t guide specifically by verticals. So those are numbers that — not numbers that we put out there that said I expect Home Services to continue like I said in my prepared remarks due to raw double-digit organic growth rates. Depending on the quarter it can vary anywhere from 15 to what you just saw 27. So — but I expect that business to continue to perform well and throw off double-digit growth.

Doug Valenti: It’s going to be in the same range as it has been in the 20-ish percent range is not a bad assumption. You might be off plus or minus a couple of points, but that business is pretty solid 20% year-over-year growth quarter-to-quarter and has been for a while and we expect will be into the future. We had a particularly strong quarter last quarter of course and we’ll have those as well. But it’s not a bad range to consider it being in that that’s all.

Max Michaelis: Okay. Thanks. And then the last one for me. Were you guys active in the buyback this quarter?

Greg Wong: We were not this past quarter.

Max Michaelis: Okay. Thanks, guys.

Greg Wong: Thanks, Max.