With the business potentially at an important milestone, we thought we'd take a closer look at QuinStreet, Inc.'s (NASDAQ:QNST) future prospects. QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. With the latest financial year loss of US$31m and a trailing-twelve-month loss of US$22m, the US$1.2b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which QuinStreet will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for QuinStreet

Consensus from 6 of the American Interactive Media and Services analysts is that QuinStreet is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$7.5m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 105% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for QuinStreet given that this is a high-level summary, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. QuinStreet currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of QuinStreet which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at QuinStreet, take a look at QuinStreet's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Valuation: What is QuinStreet worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether QuinStreet is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on QuinStreet’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.