(GLOBE NEWSWIRE) -- QuinStreet, Inc. (Nasdaq:QNST), a leader in vertical marketing and media online, today announced its financial results for the fiscal third quarter ended March 31, 2011.
The Company reported total revenue of $107.7 million, an increase of 19% over the same quarter last year. Adjusted EBITDA for the quarter was $23.2 million, or 22% of revenue.
The Company reported GAAP net income of $6.3 million, or $0.13 per diluted share, for the quarter. Adjusted net income for the quarter was $12.6 million, or $0.25 per diluted share. Adjusted net income excludes stock-based compensation expense and amortization of intangible assets, net of estimated tax.
The Company generated $28.9 million in cash flow from operations and closed the quarter with $150.1 million in cash and marketable securities.
Revenue for the Education client vertical was $48.0 million, an increase of 26% compared to the year-ago quarter. Revenue for the Financial Services client vertical was $48.7 million, an increase of 17% compared to the same quarter last year. Revenue for Other client verticals was $11.0 million, an increase of 1% compared to the year-ago quarter.
For the nine-month period ended March 31, the Company reported total revenue of $309 million, an increase of 25% over the same period last year, and adjusted EBITDA of $70 million, or 23% of revenue.
Reconciliations of adjusted net income to net income, adjusted EBITDA to net income, and free cash flow to net cash provided by operating activities are included in the accompanying tables.
"We delivered another quarter of good financial results in fiscal Q3, and we continued to make great progress building our capabilities and business for the long-term," commented Doug Valenti, QuinStreet CEO. "We are particularly pleased with the performance of our Education client vertical, reflecting client demand for more compliant and effective marketing solutions as well as the effects of new client signings and further penetration of more segments. Growth in our Financial Services client vertical was solid at this scale and consistent with our expectations for a period of more muted growth discussed in our last quarterly call. We remain confident and enthusiastic about our opportunity in Financial Services and in all of our client verticals. We are still incredibly early in the pursuit of these enormous markets. We continue to expect that we will be able to meet our objective to grow revenue an average of 15-20% per year, even at this scale, for as far as the eye can see, reflective of our large footprint and uniquely powerful competitive advantages."
Earlier, The company downgraded by Needham & Company to buy from strong buy and lowered price target from $26 to $ 24 due to moderate business from financial services clients ( Auto Insures ).
Needham analyst says, "We expect QuinStreet to report roughly in-line results for 1Q11, but online marketing spending by the company’s fin services clients (mainly auto insurance carriers) could be lower than expected - though education segment spending could be higher. The reduction in lower-margin fin svcs revenue combined w/ an increase in higher-margin education revenue results in a lowering of our revenue estimates but a maintaining of our EPS forecasts. To reflect lower expected spending growth near-term from QNST’s important fin svcs client segment, we are reducing our rating."
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