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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2022

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                 to               

Commission File No. 001-34628

 

QuinStreet, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

 

77-0512121

(State or Other Jurisdiction of

 

(I.R.S. Employer

Incorporation or Organization)

 

Identification No.)

 

950 Tower Lane, 6th Floor

 

Foster City, California

94404

(Address of principal executive offices)

(Zip Code)

650-578-7700

Registrant’s telephone number, including area code

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share

 

QNST

 

The Nasdaq Stock Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

 

 

Accelerated filer

 

 

 

 

 

 

 

 

 

 

 

Non-accelerated filer

 

 

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Number of shares of common stock outstanding as of October 28, 2022: 53,640,348

 

 


 

 

QUINSTREET, INC.

INDEX

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Financial Statements

 

3

 

 

 

Condensed Consolidated Balance Sheets at September 30, 2022 and June 30, 2022

 

3

 

 

 

Condensed Consolidated Statements of Operations for the Three Months Ended September 30, 2022 and 2021

 

4

 

 

 

Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended September 30, 2022 and 2021

 

5

 

 

 

Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended September 30, 2022 and 2021

 

6

 

 

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2022 and 2021

 

7

 

 

 

Notes to Condensed Consolidated Financial Statements

 

8

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

19

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

28

 

 

 

Item 4. Controls and Procedures

 

28

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

Item 1. Legal Proceedings

 

29

 

 

 

Item 1A. Risk Factors

 

29

 

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

52

 

 

 

Item 3. Defaults Upon Senior Securities

 

52

 

 

 

Item 4. Mine Safety Disclosures

 

52

 

 

 

Item 5. Other Information

 

52

 

 

 

Item 6. Exhibits

 

53

 

 

 

SIGNATURES

 

54

2


 

PART I. FINANCIAL INFORMATION

 

 

ITEM 1. FINANCIAL STATEMENTS

QUINSTREET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)

 

 

 

 

September 30,

 

 

June 30,

 

 

 

2022

 

 

2022

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

88,382

 

 

$

96,439

 

Accounts receivable, net of allowances and reserves of $1,637 and $1,536 as of September 30, 2022 and June 30, 2022, respectively

 

 

75,487

 

 

 

81,429

 

Prepaid expenses and other assets

 

 

5,212

 

 

 

4,924

 

Total current assets

 

 

169,081

 

 

 

182,792

 

Property and equipment, net

 

 

11,229

 

 

 

9,311

 

Operating lease right-of-use assets

 

 

6,073

 

 

 

6,801

 

Goodwill

 

 

121,141

 

 

 

121,141

 

Other intangible assets, net

 

 

46,874

 

 

 

49,696

 

Deferred tax assets, noncurrent

 

 

45,042

 

 

 

44,220

 

Other assets, noncurrent

 

 

6,087

 

 

 

5,948

 

Total assets

 

$

405,527

 

 

$

419,909

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

40,916

 

 

$

42,410

 

Accrued liabilities

 

 

51,054

 

 

 

54,459

 

Deferred revenue

 

 

48

 

 

 

341

 

Other liabilities

 

 

12,359

 

 

 

12,369

 

Total current liabilities

 

 

104,377

 

 

 

109,579

 

Operating lease liabilities, noncurrent

 

 

2,891

 

 

 

3,858

 

Other liabilities, noncurrent

 

 

15,003

 

 

 

20,472

 

Total liabilities

 

 

122,271

 

 

 

133,909

 

Commitments and contingencies (See Note 10)

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock: $0.001 par value; 100,000,000 shares authorized; 53,549,167 and 53,356,875 shares issued and outstanding as of September 30, 2022 and June 30, 2022

 

 

54

 

 

 

53

 

Additional paid-in capital

 

 

318,199

 

 

 

316,422

 

Accumulated other comprehensive loss

 

 

(266

)

 

 

(261

)

Accumulated deficit

 

 

(34,731

)

 

 

(30,214

)

Total stockholders' equity

 

 

283,256

 

 

 

286,000

 

Total liabilities and stockholders' equity

 

$

405,527

 

 

$

419,909

 

 

See notes to condensed consolidated financial statements

 

 

 

3


 

QUINSTREET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

 

Three Months Ended

 

 

 

 

September 30,

 

 

 

 

2022

 

 

2021

 

 

Net revenue

 

$

143,593

 

 

$

159,608

 

 

Cost of revenue (1)

 

 

131,245

 

 

 

141,505

 

 

Gross profit

 

 

12,348

 

 

 

18,103

 

 

Operating expenses: (1)

 

 

 

 

 

 

 

 

 

Product development

 

 

6,826

 

 

 

4,625

 

 

Sales and marketing

 

 

3,100

 

 

 

2,906

 

 

General and administrative

 

 

7,319

 

 

 

6,634

 

 

Operating (loss) income

 

 

(4,897

)

 

 

3,938

 

 

Interest income

 

 

7

 

 

 

 

 

Interest expense

 

 

(226

)

 

 

(273

)

 

Other (expense) income, net

 

 

(23

)

 

 

4

 

 

(Loss) income before income taxes

 

 

(5,139

)

 

 

3,669

 

 

Benefit from (provision for) income taxes

 

 

622

 

 

 

(576

)

 

Net (loss) income

 

$

(4,517

)

 

$

3,093

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.08

)

 

$

0.06

 

 

Diluted

 

$

(0.08

)

 

$

0.06

 

 

Weighted-average shares used in computing net (loss) income per share:

 

 

 

 

 

 

 

 

 

Basic

 

 

53,350

 

 

 

53,993

 

 

Diluted

 

 

53,350

 

 

 

55,789

 

 

 

(1)

Cost of revenue and operating expenses include stock-based compensation expense as follows:

 

Cost of revenue

 

$

2,119

 

 

$

1,821

 

 

Product development

 

 

765

 

 

 

606

 

 

Sales and marketing

 

 

652

 

 

 

732

 

 

General and administrative

 

 

1,734

 

 

 

1,747

 

 

 

 

See notes to condensed consolidated financial statements

 

4


 

QUINSTREET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Net (loss) income

 

$

(4,517

)

 

$

3,093

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(5

)

 

 

 

Total other comprehensive loss

 

 

(5

)

 

 

 

Comprehensive (loss) income

 

$

(4,522

)

 

$

3,093

 

 

See notes to condensed consolidated financial statements

5


QUINSTREET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity

 

Balances at June 30, 2022

 

 

53,356,875

 

 

$

53

 

 

 

 

$

 

 

$

316,422

 

 

$

(261

)

 

$

(30,214

)

 

$

286,000

 

Issuance of common stock upon exercise of stock options

 

 

37,855

 

 

 

 

 

 

 

 

 

 

 

 

236

 

 

 

 

 

 

 

 

 

236

 

Release of restricted stock, net of share settlement

 

 

302,167

 

 

 

1

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

Issuance of common stock under the employee stock purchase plan

 

 

137,914

 

 

 

 

 

 

 

 

 

 

 

 

1,324

 

 

 

 

 

 

 

 

 

1,324

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,284

 

 

 

 

 

 

 

 

 

5,284

 

Withholding taxes related to release of restricted stock, net of share settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,016

)

 

 

 

 

 

 

 

 

(2,016

)

Repurchase of common stock

 

 

 

 

 

 

 

 

(285,644

)

 

 

(3,050

)

 

 

 

 

 

 

 

 

 

 

 

(3,050

)

Retirement of treasury stock

 

 

(285,644

)

 

 

 

 

 

285,644

 

 

 

3,050

 

 

 

(3,050

)

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,517

)

 

 

(4,517

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

 

 

 

(5

)

Balances at September 30, 2022

 

 

53,549,167

 

 

$

54

 

 

 

 

 

$

 

 

$

318,199

 

 

$

(266

)

 

$

(34,731

)

 

$

283,256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Equity

 

Balances at June 30, 2021

 

 

53,786,363

 

 

$

54

 

 

 

 

 

$

 

 

$

320,315

 

 

$

(255

)

 

$

(24,966

)

 

$

295,148

 

Issuance of common stock upon exercise of stock options

 

 

92,204

 

 

 

 

 

 

 

 

 

 

 

 

 

395

 

 

 

 

 

 

 

 

 

395

 

Release of restricted stock, net of share settlement

 

 

330,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,906

 

 

 

 

 

 

 

 

 

4,906

 

Withholding taxes related to release of restricted stock, net of share settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,847

)

 

 

 

 

 

 

 

 

(3,847

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,093

 

 

 

3,093

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at September 30, 2021

 

 

54,208,614

 

 

$

54

 

 

 

 

 

$

 

 

$

321,769

 

 

$

(255

)

 

$

(21,873

)

 

$

299,695

 

 

See notes to condensed consolidated financial statements

 

 

 

 

6


 

QUINSTREET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Cash Flows from Operating Activities

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(4,517

)

 

$

3,093

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

4,362

 

 

 

4,200

 

Provision for sales returns and doubtful accounts receivable

 

 

120

 

 

 

200

 

Stock-based compensation

 

 

5,270

 

 

 

4,906

 

Non-cash lease expense

 

 

(262

)

 

 

(230

)

Deferred income taxes

 

 

(802

)

 

 

555

 

Other adjustments, net

 

 

(147

)

 

 

84

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

5,822

 

 

 

(693

)

Prepaid expenses and other assets

 

 

(426

)

 

 

(559

)

Accounts payable

 

 

(1,868

)

 

 

3,161

 

Accrued liabilities

 

 

(1,594

)

 

 

(8,965

)

Deferred revenue

 

 

(293

)

 

 

1

 

Net cash provided by operating activities

 

 

5,665

 

 

 

5,753

 

Cash Flows from Investing Activities

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(476

)

 

 

(409

)

Internal software development costs

 

 

(2,561

)

 

 

(965

)

Net cash used in investing activities

 

 

(3,037

)

 

 

(1,374

)

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan

 

 

1,560

 

 

 

393

 

Payment of withholding taxes related to release of restricted stock, net of share settlement

 

 

(2,016

)

 

 

(3,847

)

Post-closing payments and contingent consideration related to acquisitions

 

 

(5,494

)

 

 

(5,310

)

Repurchase of common stock

 

 

(4,731

)

 

 

 

Net cash used in financing activities

 

 

(10,681

)

 

 

(8,764

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(4

)

 

 

(5

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(8,057

)

 

 

(4,390

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

96,453

 

 

 

110,333

 

Cash, cash equivalents and restricted cash at end of period

 

$

88,396

 

 

$

105,943

 

Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

88,382

 

 

$

105,928

 

Restricted cash included in other assets, noncurrent

 

 

14

 

 

 

15

 

Total cash, cash equivalents and restricted cash

 

$

88,396

 

 

$

105,943

 

Supplemental Disclosure of Cash Flow Information

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

73

 

 

$

25

 

Supplemental Disclosure of Non-cash Investing and Financing Activities

 

 

 

 

 

 

 

 

Purchases of property and equipment included in accrued liabilities

 

 

1,036

 

 

 

562

 

Retirement of treasury stock (See Note 11)

 

 

(3,050

)

 

 

 

 

See notes to condensed consolidated financial statements

 

 

7


 

 

QUINSTREET, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. The Company

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 and home services. 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.

2. Summary of Significant Accounting Policies

Basis of Presentation

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.

Unaudited Interim Financial Information

The accompanying condensed consolidated financial statements and the notes to the condensed consolidated financial statements as of September 30, 2022 and for the three months ended September 30, 2022 and 2021 are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022, as filed with the SEC on August 22, 2022. The condensed consolidated balance sheet at June 30, 2022 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including notes, required by GAAP.

The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for the fair presentation of the Company’s condensed consolidated balance sheet at September 30, 2022, its condensed consolidated statements of stockholders’ equity, operations and comprehensive (loss) income for the three months ended September 30, 2022 and 2021 and condensed consolidated statements of cash flows for the three months ended September 30, 2022 and 2021. The results of operations for the three months ended September 30, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2023, or any other future period.

Use of Estimates

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.

8


 

Accounting Policies

The significant accounting policies are described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022. There have been no material changes to our significant accounting policies as of and for the three months ended September 30, 2022.

Accounts Receivable and Allowances

The Company’s accounts receivable are derived from clients located principally in the United States. The Company performs ongoing credit evaluation of its customers and generally does not require collateral. The Company makes estimates of expected credit losses for the allowance for doubtful accounts and allowance for unbilled receivables based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers.

The allowance for credit losses on accounts receivable was $0.1 million as of both September 30, 2022 and June 30, 2022. The revenue reserve was $1.5 million and $1.4 million as of September 30, 2022 and June 30, 2022, respectively. The total allowance for credit losses and revenue reserve was $1.6 million and $1.5 million as of September 30, 2022 and June 30, 2022, respectively.

Concentrations of Credit Risk

The Company had one client that accounted for 25% and 15% of net revenue for the three months ended September 30, 2022 and 2021. That same client accounted for 17% and 16% of net accounts receivable as of September 30, 2022 and June 30, 2022. No other clients accounted for 10% or more of net revenue for the three months ended September 30, 2022 or 2021 or 10% or more of net accounts receivable as of September 30, 2022 or June 30, 2022.

Fair Value of Financial Instruments

The Company’s financial instruments consist principally of cash equivalents, accounts receivable, accounts payable, post-closing payments and contingent consideration related to acquisitions. The recorded values of the Company’s accounts receivable and accounts payable approximate their current fair values due to the relatively short-term nature of these accounts.

Cash and Cash Equivalents

All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents on the Company’s condensed consolidated balance sheets.

Recent Accounting Pronouncements 

In October 2021, the FASB issued Accounting Standards Update No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. The new guidance is effective for the Company in the first quarter of fiscal year 2024 on a prospective basis, with early adoption permitted. The Company is currently assessing the impact the new guidance will have on the consolidated financial statements.

9


 

3. Revenue

Disaggregation of Revenue

The following table presents the Company’s net revenue disaggregated by vertical (in thousands):

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

Net revenue:

 

 

 

 

 

 

 

 

Financial Services

 

$

94,990

 

 

$

117,912

 

Home Services

 

 

46,733

 

 

 

39,986

 

Other Revenue

 

 

1,870

 

 

 

1,710

 

Total net revenue

 

$

143,593

 

 

$

159,608

 

Contract Balances

The following table provides information about contract liabilities from the Company’s contracts with its clients (in thousands):

 

 

 

September 30,

 

 

June 30,

 

 

 

2022

 

 

2022

 

Deferred revenue

 

$

48

 

 

$

341

 

Client deposits