Q2 2024 Quinstreet Inc Earnings Call
Participants
Doug Valenti; CEO; QuinStreet, Inc.
Greg Wong; CFO; QuinStreet, Inc.
John Campbell; Analyst; Stephens Inc.
Dan Day; Analyst; B. Riley Securities
Mark Hayden; Analyst; Lake Street Capital Markets
James Goss; Analyst; Barrington Research
Jason Kreyer; Analyst; Craig-Hallum Capital Group
Chris Sakai; Analyst; Singular Research
Presentation
Operator
Good day, and welcome to QuinStreet Fiscal Second Quarter 2024 financial results conference call. Today's conference is being recorded. Following prepared remarks, there will be a question and answer session.
At this time, I would like to turn the conference over to Senior Director of Investor Relations and Finance, Robert Amparo. Mr. Parra, you may begin.
Thank you, operator, and thank you everyone for joining us as we report QuinStreet's Fiscal Second Quarter 2024 financial results. Joining me on the call today are Chief Executive Officer, Doug Valenti, and Chief Financial Officer, Greg one.
Before we begin, I would like to remind you that the following discussion will contain forward-looking statements. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those projected by such statements and are not guarantees of future performance. Factors that may cause results to differ from our forward-looking statements are discussed in our recent SEC filings, including our most recent eight K filing made today and our most recent 10 Q filings. Forward-looking statements are based on assumptions as of today and the Company undertakes no obligation to update these statements today, and we will be discussing both GAAP and non-GAAP measures. A reconciliation of GAAP to non-GAAP financial measures is included in today's earnings press release, which is available on our Investor Relations website at investor dot quinstreet.com. With that, I will turn the call over to Doug Valenti. Please go ahead, sir.
Doug Valenti
Thank you, Rob, and thank you all for joining us. December was a successful quarter. We met or exceeded our objectives in the quarter and continued recent positive themes, including growing noninsurance businesses and at strong rates year over year, investing in and making good progress on growth initiatives across the business and positioning ourselves well for the re-ramp of auto insurance client spending. All that while delivering solidly positive adjusted EBITDA and maintaining our strong balance sheet. I am particularly proud of those accomplishments given that we were facing the bottom of the insurance cycle and our toughest seasonal quarter. The significant positive inflection in auto insurance client spending that we expected to begin in January has indeed begun.
Auto insurance revenue is expected to be up well over 100% sequentially this quarter versus the December quarter. Auto insurance client spending increases are broad based and consumer shopping traffic online for auto insurance is also up as consumers react to the compound rate increases of the past years. Auto insurance clients have indicated that the steep ramp of spending is likely to continue. But Accordingly, we expect strong sequential total company revenue growth and rapid EBITDA expansion in the current March quarter as well and further strong sequential total company revenue growth and rapid EBITDA expansion and expansion again in the June quarter the exact slope of the auto insurance ramp is impossible to predict, but the ramp is, of course, highly impactful through our results.
Turning to our outlook for the current March quarter our fiscal Q3, we expect revenue to be between $160 million and $170 million, representing sequential growth of 35% at the midpoint of the range we expect adjusted EBITDA to jump to between $7 million and $9 million as we captured the initial immediate impact of operating leverage from the revenue ramp. For fiscal year 2024 which ends in June. We continue to expect company revenue to grow between 5% and 15% over fiscal 2023.
Looking ahead to fiscal year 2025, which begins soon in July for detailed planning has not yet completed. I am already confident that we will expect strong double digit full year revenue growth over fiscal 2024.
Now before I turn the call over to Greg for more details on our financial results.
Let me give you my overall view for where we are. We have weathered a fierce macroeconomic storm in auto insurance, our biggest vertical, we have maintained a positive adjusted EBITDA and a strong balance sheet throughout thanks to strong capabilities, disciplined execution and a resilient business model. Our business model and strong financial foundation allowed us to continue to invest in the future. During this period, despite the conditions in auto insurance, we rapidly scaled to nine-figure noninsurance client verticals and invested aggressively in our capabilities, products and footprint for future growth. We are now incredibly well positioned for the near and long term. Our footprint for growth is large and diversified, representing tens of billions of dollars of addressable markets. We have big growth opportunities in the expansion of our existing client verticals and in exciting new contiguous markets and product areas. Our capabilities and competitive advantages are clear and strong, and we are improving them and expanding our market opportunities at a rate unprecedented in company history or I would argue in the history of our industry. I have never been more confident or bullish about our prospects from here, especially of course, as auto insurance continues to adapt, normalize and react.
With that, I'll turn the call over to Greg.
Greg Wong
Thank you, Doug. Hello and thanks to everyone for joining us today. fiscal Q2 was another solid quarter for QuinStreet. Total revenue was $122.7 million. Adjusted net loss was $2.3 million or $0.04 per share, and adjusted EBITDA was $417,000. Within the quarter, we saw the auto insurance cycle bottomed out in November. That being said, we are excited about the significant inflection of auto insurance client spending, which indeed began in January.
Looking at revenue by client vertical. Our financial services client vertical represented 58% of Q2 revenue. It was $71.3 million. Our Home Services client vertical represented 40% of Q2 revenue and grew 15% year over year to $49.3 million. Other revenue was it remaining $2 million of Q2 revenue.
Turning to the balance sheet, we closed the quarter with $45.5 million of cash and equivalents and no bank debt.
Moving to our outlook for fiscal Q3, our March quarter, we expect revenue to be between $160 million and $170 million and adjusted EBITDA to be between $7 million and $9 million for full fiscal year 2024, which ends in June. We continue to expect revenue to grow between 5% and 15% over fiscal 2023.
In summary, let me reiterate Doug's earlier points one over the past few years, we have navigated a generational downturn in our largest vertical and continue to invest in long term growth initiatives, all while generating positive adjusted EBITDA and maintaining our strong balance sheet throughout that period.
Two we are well positioned to benefit from the significant positive inflection in auto insurance client spending, which is indeed big in January and three, we expect strong sequential revenue growth and rapid adjusted EBITDA expansion in the March quarter and again in the June quarter.
With that, I'll turn it over to the operator for Q&A.
Question and Answer Session
Operator
(Operator Instructions) John Campbell of Stephens Inc. Your line is already open.
John Campbell
Hey, guys, good afternoon. Congrats on the solid quarter? On the so on the guidance, I mean, it's certainly encouraging that it feels like it's kind of early stages of the insurance recovery. You guys have been kind of bracing for that. So it's glad I'm glad to hear that it seems like that is kind of starting to arise. It seems like you might be laying off a little bit on the guidance for the next quarter. But if I look at just the back half of the fiscal year guidance, I'm looking for maybe a little bit color if you can unpack some of the key assumptions, mainly on insurance. I think you guys the past second half peak, you guys saw I think that was probably FY 21. So maybe as a starting point, if you guys could maybe shed some light on the assumptions you're making relative to that past peak, maybe how much further down your correcting within that guidance?
Doug Valenti
Yes, John, the and you touched on it. The main variable in the range of guidance for the remainder of the year is, of course, the exact slope of the insurance ramp. So we don't know exactly what it would look like. What we do have from clients, our consistent and broad-based indications of continued steep ramp some pretty specific about what they want, where they want to get within the next few months, some less specific, but equally bullish and very important for importantly, from pretty much every auto insurance client, we have, which is very different from a from where we were last year. And we had a strong quarter, but was really kind of one client that was driving that, that surge out rather than giving you. So the numbers are based on a buildup of a range of assumptions based on what they've told us and our own information on what capacity we have in media, what budget we're likely to get from what players and how those are likely to come together. So as I said, it's impossible to predict precisely because there are too many moving parts. But what I I think we tried to say in the prepared remarks and is that it's a consistently bullish, consistently, a steep ramp and a lot of good data in there that kind of builds up to the range of outcomes that we have. I would say that we are if we're going to and therefore, we're likely to be a little bit more conservative in this quarter because we're still earlier in their ramp and we will be next quarter.
I guess this is something you noted and I would say that that would be our bias. And I'm not suggesting that the guidance is trying to characterize the guys that suggested, given that we're earlier into ramp. And therefore, there's a little bit less fully known. You would expect that to be the case. But it's we've run a series of scenarios with a lot of bottoms up buildup and a lot of input of data and things like media capacity, we have a much bigger media footprint now by the way than we did last time. We peaked in auto insurance as an example, on this quarter, we will be nowhere near the past peak of auto insurance revenue as his input to our guide next quarter, the range runs from below that peak to that peak and a little bit beyond that peak. And so you can see that we're kind of balancing out various inputs. Is that an all-cash?
John Campbell
Yes, that is very helpful because I think some of the questions we get is just looking at optically the growth rate looks pretty substantial for the fiscal 4Q, but I think the message is that getting to that high end of that of your rent, your guidance ranges, not assuming it how relaxed relative to the past peak. Is that fair to characterize?
Doug Valenti
Absolutely fair. Yes, it does. It's it's by no means in the realm of Iraq or anything. If you looked at the data and the inputs you go, gosh, you're never going to get the hey, look, we're highly confident in our guide for this quarter, which is a $45 million. And over the last quarter at the midpoint, it would take to get to five depending on how we do this quarter against that guide, you're talking about another [$20-ish million to $30-ish million] of the bottom into the range and beyond. So I don't think it's a we don't believe it's you wrote?
No, we think it's in the range of what we would consider realistic, reasonable, fact-based assumptions.
Okay.
John Campbell
All very helpful. And then one last one here. Just kind of housekeeping, but on the CapEx, I mean, you guys have always kind of operated with light CapEx. I've noticed that I guess year to date, fiscal year to date CapEx is like double relative to last year. And I think the year prior to that, you asked like four to four times higher. So it seems like definitely a focus investment happening there. I don't know if you're at a stage now, we can shed some light on that, but I'm curious about what's driving that.
Doug Valenti
Yes, it was a great question, and you're exactly right it's a we have been accelerating and being very aggressive in our software capitalization, software development, which gets capitalized, of course, in the QRP area, mainly driven primarily by demand and by the signing of a couple of very large accounts and we wanted. And so the combination of that and having made sure the product was fully ready to launch with those big accounts of early this calendar year and anticipating and seeing an increase in demand and activity for that product as the insurance market has come back, drove us to God to to invest at those rates at those levels. I can tell you that we're pretty much at the end of that cycle and you're going to see that capitalized software development cost dropped pretty significantly this quarter forward by was that reps pretty much through the snake, if you will.
Super excited. I mean, super excited about where that product is about the attention. We're getting about some of the big accounts who sign about the opportunity there, and that will only get better and better. We believe as the insurance market continues to come back of course, that was a pretty dormant there for a while because there really weren't enough carriers participating in the market to make it worth the while the various brokers and agencies to invest in a product like that. But we have seen that turn pretty a pretty dramatically over the past couple of months.
John Campbell
Very encouraging to hear. Thanks for the time, guys.
Doug Valenti
Thank you, John.
Operator
Your next question comes from Dan Day of B. Riley Securities.
Dan Day
Thanks for taking the questions, guys. I just would be good if you could comment on from a state level. I know there were a number of big states that have effectively been shut off since April or so of last year. Maybe if you could just comment with what's come back in January? Like are those larger states being turned back on in a meaningful way? Any new commentary there would be great.
Doug Valenti
Sure, Dan. You're correct. A lot of big states have been shut down by number of carriers in some states, pretty much all the carriers. We have seen some reopenings of some major states by major carriers. Of course, it's a it's a map for a lot of different and different participations by different carriers. So not all the carriers are opening all the states at the same time, but I can tell you that we have seen some of some big states reopen by major carriers and by number of carriers. And we've been told to expect that to continue. And we have gotten indications from some of our major clients that they would expect to be reopened in all major states and back to what they consider to be normalized and demand, which we are nowhere back to yet by the way, by midyear by mid calendar year.
Dan Day
Okay, great. So the good news from you guys had in past quarters you've broken out the growth in the credit-driven verticals specifically, I didn't hear any commentary this quarter and maybe I missed it, but can you just give us some color on how the personal loans, credit cards, other financial vertical have performed and the outlook for the next couple of quarters?
Doug Valenti
Yes, the on book, the let's say, Home Depot home service, you didn't ask, but home services, you saw that grew about 15% is our third largest business. And by far the biggest component of credit driven of the credit-driven verticals is personal loans grew 18%, 18% year over year in the quarter. Credit cards was actually down a little bit versus the previous year, but it was just to nothing to see there other than a real tough comp credit cards, it gets driven off of peaks and valleys driven by limited time offers or promotions. And last year in the December quarter. There were a lot of good promotions in the quarter this year. There really weren't any new big promotions in the quarter. So we'd expect that to even itself back out as we get as promotions start rolling back out this quarter next quarter. So and those are the those are the those are the big components. Those are 90%-plus of the credit driven.
Dan Day
Okay. Great. Appreciate it, guys.
Doug Valenti
Yes. Thank you, Dan.
Operator
Your next question comes from Mark Hagan of Lake Street Capital Markets.
Your line is already open.
Mark Hayden
Hi, guys. Thanks for taking my call.
So it looks like you had some strong growth in the home services piece, but I was wondering if there was anything you could say around any impact you saw with rising rates and what that may have had on on Home Services lead generation?
Doug Valenti
Yes, it's a great question, Mark, but nothing that we could discern. We think generally speaking in our experience and in talking with our clients, that higher rates are have a number of effects. One effect is, of course, you're having consumer standards, just the home and that's a good thing because they're going to say, well, I'm going to stay here because I don't want to lose my mortgage. So I'm going to invest in this home and so that I think continues to be a theme in home services. We're trying to make sure that we're participating and with our clients in those of those product and service areas that align with that. And beyond that, you could assume that it may be tougher for consumers to invest in bigger projects because of interest rates if they need to borrow we haven't seen that in a meaningful way that we know of. And we continue to believe that home services as a market for us is a double digit grower on average for as far as the eye can see, we're super early. It's massive, and it's just a great fit for QuinStreet. So that's kind of that's how I would answer the question.
Mark Hayden
Got you. That's helpful.
Thank you very much, spot-on.
Operator
Your next question comes from Jim Goss of Barrington Research.
James Goss
Your line has already opened.
All right.
Thank you, Doug. I think you might have addressed this a little bit with the in terms of the media footprint and capacity. But I was wondering if you could provide a couple of metrics that you can give us to point to evidence of the inflection point having been reached? Is it volume of inquiries? Are there certain things that that we might take away just in terms of how do you view that inflection having been achieved?
Doug Valenti
I think the main one is the one I mentioned in the prepared remarks, Jim, that might be what you're referring to. But where our auto insurance. We have all the up way over 100% this quarter over last quarter. And that's inflection of the demand by consumers and traffic by consumers are driven by the higher rates and the fact that now you have more auctions coming to market because of the clients improved opening states and increasing their participation, we saw a 30% jump in consumer traffic shopping online for auto insurance in January over December. And so and then if you look, we can give you more detail, not just client by client but it's almost almost every one of our clients in auto insurance is up dramatically versus where they were in the calendar fourth quarter. So yes, again, I think it's a a lot of different metrics and larger clients and states and part of it. But the bottom line metric is and 125% and 30% growth, something like that quarter over quarter this quarter versus last quarter and indications and by the way, and accelerating and accelerating the amount of budget we had in December, which began was meaningfully better than November than the than we had that surge. I just talked about percentage wise in January over December, and we've grown NDA that has accelerated in February where we have significantly above budget in February, and it typically more states in February than we had in January. And we have indication that clients, but they are from almost all of our clients that they want to reach significantly higher levels, including some very large clients getting to normal footprints, which means pretty much all states open uncapped with us. And today, nowhere near our states are open and they are capped in terms of their budgets at this point as a as a controller ramp, Biju. So those would be the Those would be the I think the main things and that would reflect the win.
James Goss
Okay. And I know you mentioned the unpredictability of any of these things, the cycles and no two cycle is going to be exactly the same. But given this history suggest any degree of sustainability of the rebound of the business, it does tend to be a long running thing or does it happen pretty quickly when it happens as dramatically as it's been happening right now.
Doug Valenti
It's a good question. The on when I talk about it being unpredictable, I mean, it's not predictable as to the exact slope is unpredictable. It is impossible to predict. What I'd say that is predictable is that it is sloping. It is ramping and it looks like it's going to be quite steep. The sustainability is again, a very important and good question, particularly given what we went through a couple of years ago and then last year, and I would say here are the indications from us and the sustainability of one of the fundamentals.
If you look at the reported combined ratios and or profitability of the auto insurance carriers over the past couple of quarters and dramatically better, dramatically better and consistently better than they were last year the year before and the year before that. So that's very, very important because first and foremost, their economics have to work there.
And the combined ratios are better dominantly because they've taken rate and others gotten rate increases.
It had three years of compound double-digit rate increases generally speaking, and that has given and also along the way, they've adjusted their footprint and their products and to adapt to the adapting the economics better. So it's not just rate it's also making other adjustments. And as a result of that, we're seeing fundamentally combined ratios of profitability reports very strong from all the major carriers in that you guys have seen that you will continue, I think to see that on.
I'd say the third thing is the breadth of the of the participation POP last year and the year before the surge in the January quarter was very focused narrowly. So on one or a couple of carriers, we are seeing it this time amongst all of our carrier clients. But I don't think it's an exact I can't think of one. It hasn't significantly increased their spend with us, most importantly, but also their outlook for increasing spend going forward with us on and have increased their activity much more broadly and all in all the other things they're doing, whether it be QRP. engagement or participation with agencies or all the all the other stuff. So the activity level is higher and the activity level is higher broadly. And I'll go so far to say, fortunately amongst all of them, whereas last year it was not so so that that indicates to us. And by the way, the way to talk about future months is quite specific and bullish incredible time. So I'd say that breadth of participation is also and the way to participating is also important to your question about how long it lasts is a great when if you look back at what they call kind of hard and soft market cycles. The column and insurance, typically the cycles are much, much shorter for the bad markets than we've seen over the past few years. That's why Greg referred to it as generational. I refer to this as it appears a storm macroeconomic storm. This has been the worst auto insurance cycle in anyone's memory because it was such a deep fundamentally hard thing to get out of between the COVID. We had the COVID effect on driving behaviors, but also on on inflation and supply chain on it and including things like you know, tough used car markets and because there were enough new cars to buy, I mean it was a very Tangled nest of complexity. It really had a very dramatic effect on insurance carriers and has taken them a long time to untangle it much longer than usual. Usually these cycles are more like I don't know, maybe a year down cycles. Any usually get several good years after that. I am not an industry that insurance industry analysts, but I think if you read the analysts that follow the industry, their view is likely to be that this is we're likely at the beginning of a multiyear positive cycle because of all the carriers have gone through on the product side on the footprint side and now all the rate increases they've had. So we're subject to big weather events, which are really short cycles. I think we're we feel like and that the clients seem to be indicating the outlook is quite positive as far as vacancy.
James Goss
Okay, thank you. One other little, Nick, someone mentioned I had heard from an agent that there are certain states unwilling to ensure certain cars because of best risks that have come up in the past couple of years. Are there is there are you seeing things of that nature or any other way or things that would I know, Sam, you had a bit of money as a failure?
Doug Valenti
No, it's a good question there. Things like that in the market all the time, but nothing that fundamentally affects the trajectory that we would expect to fundamentally affect that trajectory now. But there's there's a lot of I mean there there may there are big neighborhoods in California. Nobody I cover home insurance, of course, are big parts apart, and there's lots and lots of stuff like that. But the overall trend of the market from here appears to be up and to the right.
James Goss
All right. Thanks a lot. Appreciate it.
Doug Valenti
Thank you, Jim.
Operator
Your next question comes from Jason Kreyer of Craig Hallum.
Your line is already open.
Jason Kreyer
Great. Thank you, Doug. Just wanted to see if you could give us more color on the dialogue you're getting from carriers. I know in past cycles the resurgence of spend has been kind of driven by digital first carriers with more of the captive agencies, you know, a little bit behind them. Are you seeing that play out now? Are you seeing a little bit more increased spend at about?
Doug Valenti
Yes, more out of both. Actually, we are we reviewed the auto insurance market and business with the Board recently at the last Board meeting one of the slides showed how much more diverse the footprint was for us and by implications in terms of overall industry demand than it was, say last year for this quarter, pretty dramatically. So I would note on. So we are seeing it more broad-based than we have seen. We have seen in past cycles.
I think that's generally the case. But I think it's also specific to us because we do have a bigger footprint now than we did last cycle. We have a broad we participate much more broadly in our in other parts of the digital landscape. You know, we should be all dominantly clicks that we have clicks calls, weeds services, like QRP., things like that. So but but we appear to be seeing it? And I guess I'm and this is anecdotal, but we appear to be seeing it more broadly.
Yes, in answer to your question.
Jason Kreyer
That's great. So as the re-ramp continues to build. I'm just curious what you think your prospects are for as for taking market share over the next several months?
Doug Valenti
I think it's good. We have not lost a share on the media side that we've significantly gained share on the media side through this period. We've recently signed a very big player in media that we're going to be adding to that is that already win cycle as we launch that in the next month and a half or two months. And I know nobody's been able to invest in the products that expand the market and expand our footprint in that market like we have through this period because we had the wherewithal to do so we didn't have debt. We did have we had positive cash flow. We have are positive operating cash flow, positive adjusted EBITDA, if you will, and most of the other players in the market had debt and or we're much more deeply tied to the auto insurance cycle or have other problems like mortgage and just did not have the capacity to do what we've been able to do in terms of aggressive investment through the cycle. And what we've invested in are things that we expect have and will continue to build and not just to grow the channel and grow our footprint and Tenable also take share and we've gained share. We think we'll continue to do that.
Jason Kreyer
Just one more, if you don't mind you teased out some data or just some some statements earlier on QRP. I know you don't want to breakout numbers or contribution. I'm just curious maybe how big you look like like rate of change, how big that can be calmer at any specific point in time where you think that can be a bigger contribution and more meaningful to your fundamentals?
Doug Valenti
Yes. It's a good question that we and we've only invest in that product because we do think it's going to be very big for us. We think tens of millions of dollars is it's exactly what it ought to be and it could be bigger than that. Particularly if you look at the the side effects of it in the in the combination of it with other ways to service the channel so we think it's many tens of millions of dollars in opportunity. We think it's a market that's over $100 million in addressable market. And over time, we don't expect we'll get 100% of that market. That's why I say maybe tens of millions of dollars.
But we do think we're way ahead of anybody else in terms of the product and where you go with this product, will we it will ramp with a little bit of a lag to the overall market coming back? Because you have the market coming back in, but marketing spend at clients participating. And then you have the agencies revving up because now they have participation in product and now they're willing to invest in and work on projects like QRP, which allows them to be more efficient, more productive in the market then than they would be they can do without it. So I think it will lag but it we clearly see a ramp. We expect a quite a significant ramp this year. And to know when I say this year, I mean there remains this calendar year and next fiscal year, we would expect to ramp back up. We're already running at a seven figures, but low, we would expect that to go to gate to be our mid to high seven figures certainly next fiscal year and that this directed that I'm hoping that we can get well beyond that and start reaching for the eight figure number. So it's meaningful enough that that revenue is very, very highly contributing, right, which is not sort of normal 30% on incremental revenue. Qrp is generally going to be about 80% to 85% as we get to you get to just a little bit more scale. So we think it's highly accretive, big market opportunity. We don't we haven't we'll probably have an Investor Day here in the next up as long as the insurance wrap keeps going, like we expect to I would expect we'll have an Investor Day in the next six to 12 months where we will get in more detail. And I'm about QRP. and where we are that I will introduce maybe a couple of the big client programs that we now have running probably either one of which could be well into the seven figures and beyond all by themselves. So these are signed contracts signed clients. So we're on we like it a lot. It's still coming. It was certainly delayed by everything else that was delayed in auto insurance, but we have seen a lot of resurgence of activity in Japan, a lot of success with big signings recently that are in the launch and ramp stages over the next few months, and we'll be talking more and more about it as we move ahead and we'll start breaking it out at some point in the future. I imagine, but want to get get back on our feet and start talking again with it before we do that.
Jason Kreyer
Got it.
Thanks for all the color, Doug.
Doug Valenti
I appreciate it.
Operator
Chris Sakai of Singular Research.
Chris Sakai
Hi, good afternoon, Doug and Greg. Just a question on on Q4. It seems like a lot of growth is being put on to Q4 on what are the chances you see auto insurance not ramping as fast as we want to get to this Q4 number Q4 numbers?
Doug Valenti
I'd say that we have that in the range, Chris, and I think we have a we said 5% to 15% for the year covers a lot of territory at our scale. So we would we think there's certainly means we think there's a chance we won't get to the high end. I think there's a chance we will do better than the low end, but we're we like the ramp, as I said earlier, this quarter, over last quarter were representing about a $45 [million] ramp over in terms of sequential growth off the bottom into the range. I think beyond that represents another [$20-ish million] or so, depending on where we landed the range [$20 million to $25 million] , I guess, depending on where we land in the range on top of that sequentially. So we're not we're not we're actually reflecting at the bottom end of the range, a slowing of the of the sequential ramp. But even though we're seeing right now, an acceleration of the ramp at auto insurance.
So again, as I said earlier, I think the we still think we're going to end up in that range. The exact point where we end up in that range is going to be pretty dependent on the slope of the auto insurance revamped. And while it's deep, it's hard for us to predict precisely the slope. And so that's really kind of reflected in what you're seeing. But I'd say that's how I would characterize it. And again, it's mostly driven by the auto insurance ramp. But of course, we're still we're still got a lot of great initiatives in growth and momentum in home services, which is a $200 million-something of business and personal loans, which is a $100 million-something business. Credit cards as we see more promotions in the market is likely to benefit from those. So in the footprint, all in all, but again, the I'd say the where we end up in the ramp is going to be dependent mostly on exactly how that debt, what that slope looks like in our interest. But we don't think but we don't think the top end is crazy. We don't think and we think the bottom end is it's something we're pretty comfortable with.
Chris Sakai
Do you -- in a strategic way, gee, do you have you thought about trying to diversify away from these this auto insurance on these are the swings in auto insurance?
Doug Valenti
No. I mean, we will diversify. We have diversified right. We have beginning of this auto insurance cycle. I don't think I don't know home services, Greg, is it more than doubled through this period.
Chris Sakai
You 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 or great fit with QuinStreet. We didn't do that to diversify away from auto insurance. Auto insurance we believe is a is a great market for us for ever. 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 going to be watching it because of the nature of their business model, which is rates are controlled by regulatory authorities and silicon going to grow shareholder value over time, you're likely to going to have to grow that by gaining market share rather than by expanding margin or pricing because your margin pricing are controlled regulated at the end of the day by our overstate this perfect 50 state insurance commissioners, basically. So about a week 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 the current size with the 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 our bigger. If you depending on how you define the lending market, 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 in credit cards and end up in banking, which are earlier stage, but combined now are approaching $100 million a year in revenue. And I think we will soon eclipse that to just those two together. So we've got we have 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. 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.
