2021 Q3 Form 10-Q Financial Statement

#000156459021054428 Filed on November 04, 2021

View on sec.gov

Income Statement

Concept 2021 Q3 2020 Q3
Revenue $159.6M $139.3M
YoY Change 14.6% 9.99%
Cost Of Revenue $141.5M $122.2M
YoY Change 15.8% 7.96%
Gross Profit $18.10M $17.04M
YoY Change 6.25% 26.91%
Gross Profit Margin 11.34% 12.23%
Selling, General & Admin $9.540M $9.224M
YoY Change 3.43% 12.65%
% of Gross Profit 52.7% 54.14%
Research & Development $4.625M $4.891M
YoY Change -5.44% 37.54%
% of Gross Profit 25.55% 28.71%
Depreciation & Amortization $4.200M $4.130M
YoY Change 1.69% 46.98%
% of Gross Profit 23.2% 24.24%
Operating Expenses $14.17M $14.12M
YoY Change 0.35% 20.19%
Operating Profit $3.938M $2.923M
YoY Change 34.72% 73.88%
Interest Expense $273.0K -$300.0K
YoY Change -191.0% -241.51%
% of Operating Profit 6.93% -10.26%
Other Income/Expense, Net $4.000K $16.69M
YoY Change -99.98% -5663.0%
Pretax Income $3.669M $19.30M
YoY Change -80.98% 1384.23%
Income Tax $600.0K $4.600M
% Of Pretax Income 16.35% 23.84%
Net Earnings $3.093M $14.68M
YoY Change -78.93% 1196.91%
Net Earnings / Revenue 1.94% 10.54%
Basic Earnings Per Share $0.06 $0.28
Diluted Earnings Per Share $0.06 $0.27
COMMON SHARES
Basic Shares Outstanding 53.99M 52.49M
Diluted Shares Outstanding 55.79M 54.27M

Balance Sheet

Concept 2021 Q3 2020 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $105.9M $102.2M
YoY Change 3.65% 44.96%
Cash & Equivalents $105.9M $102.2M
Short-Term Investments
Other Short-Term Assets $8.466M $13.50M
YoY Change -37.29% 117.74%
Inventory
Prepaid Expenses
Receivables $88.42M $69.10M
Other Receivables $0.00 $0.00
Total Short-Term Assets $202.8M $184.8M
YoY Change 9.75% 22.14%
LONG-TERM ASSETS
Property, Plant & Equipment $7.333M $6.117M
YoY Change 19.88% 13.28%
Goodwill $117.8M $115.9M
YoY Change 1.63% 40.5%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $47.99M $37.70M
YoY Change 27.29% -34.66%
Total Long-Term Assets $239.1M $232.3M
YoY Change 2.93% 21.62%
TOTAL ASSETS
Total Short-Term Assets $202.8M $184.8M
Total Long-Term Assets $239.1M $232.3M
Total Assets $441.9M $417.1M
YoY Change 5.95% 21.85%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $48.35M $47.60M
YoY Change 1.58% 19.0%
Accrued Expenses $48.90M $49.90M
YoY Change -2.01% 20.82%
Deferred Revenue $338.0K
YoY Change -59.71%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $110.5M $104.6M
YoY Change 5.6% 19.41%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $31.78M $39.20M
YoY Change -18.92% 47.37%
Total Long-Term Liabilities $31.78M $39.20M
YoY Change -18.92% 47.37%
TOTAL LIABILITIES
Total Short-Term Liabilities $110.5M $104.6M
Total Long-Term Liabilities $31.78M $39.20M
Total Liabilities $142.2M $143.8M
YoY Change -1.09% 25.92%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $299.7M $273.3M
YoY Change
Total Liabilities & Shareholders Equity $441.9M $417.1M
YoY Change 5.95% 21.85%

Cashflow Statement

Concept 2021 Q3 2020 Q3
OPERATING ACTIVITIES
Net Income $3.093M $14.68M
YoY Change -78.93% 1196.91%
Depreciation, Depletion And Amortization $4.200M $4.130M
YoY Change 1.69% 46.98%
Cash From Operating Activities $5.753M $17.56M
YoY Change -67.23% 84.03%
INVESTING ACTIVITIES
Capital Expenditures $409.0K $437.0K
YoY Change -6.41% -19.67%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$19.57M
YoY Change -100.0%
Cash From Investing Activities -$1.374M -$20.71M
YoY Change -93.36% 1870.22%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -8.764M -2.055M
YoY Change 326.47% 287.01%
NET CHANGE
Cash From Operating Activities 5.753M 17.56M
Cash From Investing Activities -1.374M -20.71M
Cash From Financing Activities -8.764M -2.055M
Net Change In Cash -4.390M -5.265M
YoY Change -16.62% -165.85%
FREE CASH FLOW
Cash From Operating Activities $5.753M $17.56M
Capital Expenditures $409.0K $437.0K
Free Cash Flow $5.344M $17.12M
YoY Change -68.79% 90.3%

Facts In Submission

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<p style="margin-top:18pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">1. The Company</p> <p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;text-indent:2.27%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">QuinStreet, Inc. (the “Company”) is a leader in performance marketplaces and technologies for the financial services and home services industries. The Company was incorporated in California in April 1999 and reincorporated in Delaware in December 2009. The Company specializes in customer acquisition for clients in high value, information-intensive markets or “verticals,” including financial services, home services, and previously the divested education client vertical. The corporate headquarters are located in Foster City, California, with additional offices throughout the United States and India. The majority of the Company’s operations and revenue are in North America.</p>
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<p style="margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Use of Estimates</p> <p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;text-indent:2.27%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. On an ongoing basis, management evaluates these estimates, judgments and assumptions, including those related to revenue recognition, stock-based compensation, goodwill, long-lived assets, contingencies, credit losses of accounts receivable, and income taxes. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. In addition, the Company may engage third-party valuation specialists to assist with the preparation of certain of its valuations. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not readily apparent from other sources. Actual results could differ from those estimates, and such differences could affect the results of operations reported in future periods.</p> <p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;text-indent:2.27%;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"><span style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In addition</span><span style="color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">, the COVID-19 pandemic is a factor which may cause actual results to differ from estimates. COVID-19 is contributing to a general slowdown in the global economy and may affect the Company’s business, results of operations, financial condition, and future strategic plans. At this time, the extent to which the COVID-19 may impact the Company’s financial condition or results of operations is uncertain.</span></p>
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FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour
14888000
CY2021Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
8350000
CY2021Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
10500000
CY2021Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
9604000
CY2021Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
7622000
CY2021Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
5197000
CY2021Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
56161000
CY2021Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
600000
CY2020Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
4600000
CY2021Q3 us-gaap Lessee Operating Lease Renewal Term
LesseeOperatingLeaseRenewalTerm
P5Y
CY2021Q3 us-gaap Operating Lease Cost
OperatingLeaseCost
1301000
CY2020Q3 us-gaap Operating Lease Cost
OperatingLeaseCost
1308000
CY2021Q3 us-gaap Short Term Lease Cost
ShortTermLeaseCost
169000
CY2020Q3 us-gaap Short Term Lease Cost
ShortTermLeaseCost
253000
CY2021Q3 us-gaap Variable Lease Cost
VariableLeaseCost
120000
CY2020Q3 us-gaap Variable Lease Cost
VariableLeaseCost
148000
CY2021Q3 us-gaap Lease Cost
LeaseCost
1590000
CY2020Q3 us-gaap Lease Cost
LeaseCost
1709000
CY2021Q3 us-gaap Operating Lease Payments
OperatingLeasePayments
1531000
CY2020Q3 us-gaap Operating Lease Payments
OperatingLeasePayments
1494000
CY2021Q3 qnst Increase In Operating Lease Liability In Exchange For Right Of Use Asset Obtained
IncreaseInOperatingLeaseLiabilityInExchangeForRightOfUseAssetObtained
0
CY2020Q3 qnst Increase In Operating Lease Liability In Exchange For Right Of Use Asset Obtained
IncreaseInOperatingLeaseLiabilityInExchangeForRightOfUseAssetObtained
6247000
CY2021Q3 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P2Y6M
CY2020Q3 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P3Y4M24D
CY2021Q3 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.050
CY2020Q3 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.050
CY2021Q3 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
4658000
CY2021Q3 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
5763000
CY2021Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
3663000
CY2021Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
721000
CY2021Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
32000
CY2021Q3 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
14837000
CY2021Q3 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
2099000
CY2021Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
12738000
CY2021Q3 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
5490000
CY2021Q3 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
7248000
CY2021Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
12738000
CY2021Q3 qnst Future Principal Contractual Obligations For Operating Lease Commitments Undiscounted Lease Liability Excess Amount
FuturePrincipalContractualObligationsForOperatingLeaseCommitmentsUndiscountedLeaseLiabilityExcessAmount
700000
CY2021Q3 qnst Liabilities Related To Indemnification Agreement
LiabilitiesRelatedToIndemnificationAgreement
0
CY2021Q2 qnst Liabilities Related To Indemnification Agreement
LiabilitiesRelatedToIndemnificationAgreement
0
CY2021Q3 qnst Accrual For Indemnification Provisions
AccrualForIndemnificationProvisions
0
CY2021Q2 qnst Accrual For Indemnification Provisions
AccrualForIndemnificationProvisions
0
CY2021Q3 qnst Letters Of Credit For Operating Lease
LettersOfCreditForOperatingLease
500000
CY2021Q3 qnst Period Of Cancellation Of Letter Of Credit From Annual Expiration Date
PeriodOfCancellationOfLetterOfCreditFromAnnualExpirationDate
P30D
CY2021Q3 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1
CY2021Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
159608000
CY2020Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
139269000
CY2021Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
7333000
CY2021Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
6849000
CY2021Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
56161000
CY2021Q2 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
59177000

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