QuinStreet, Inc. (NASDAQ:QNST) Q2 2024 Earnings Call Transcript

Greg Wong: You’re probably right.

Doug Valenti: And personal loans has probably doubled through this period. So, we’ve taken — we’ve pretty dramatically increased our footprint and diversified through this cycle because we found great new market opportunities that are great with QuinStreet, we didn’t do that to diversify away from auto insurance. Auto insurance, we believe, is a great market for us forever. It’s a great market. We have phenomenal capabilities. We have a great media footprint. We have the best products and services in the market. We have very close relationships with the great clients that are the best players in that industry. Auto insurance is going to be driven by marketing for as long as any of us are going to be watching it because of the nature of their business model, which is rates are controlled by regulatory authorities.

And so if you’re going to grow shareholder value over time, you’re likely going to have to grow that by gaining market share. rather than by expanding margin or pricing because your margin and pricing are controlled regulated at the end of the day by — I’ll overstate this for 50 state insurance commissioners basically. So, hey, we structurally we love it. It’s a big market. We have a great position in it. We’re going to keep doing it. We think we’ll grow it to many times at current size with the initiatives we have in place to continue to do that and we will grow other client verticals too. And we think that our footprint in Home — we think Home Services is our biggest addressable market, significantly bigger than auto insurance over time and we’ve shown we can scale that.

We’re going to keep doing that. We think personal loans is as big or bigger depending on how you define the lending market where we’ve shown we can scale that. We will continue to show we can scale that over time. We love our position there. And we like the other credit-driven businesses and credit cards and banking, which are earlier stage. But combined now, we’re approaching $100 million a year. in revenue, and I think we will soon eclipse that to just those two together. So, we have a good footprint is diversified. It will include auto insurance and a lot of expansion of products and services around auto insurance and home insurance, everything else going forward.

Chris Sakai: Okay. Thanks.

Doug Valenti: Thank you.

Operator: Thank you. And there are no further questions at this time. Thank you everyone for taking the time to join QuinStreet’s earnings call. Replay information is available on the earnings press release issued this afternoon. This concludes today’s conference call. Thank you for your participation and you may now disconnect.