QuinStreet, Inc. (NASDAQ:QNST) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. The US$1.3b market-cap company posted a loss in its most recent financial year of US$31m and a latest trailing-twelve-month loss of US$22m shrinking the gap between loss and breakeven. As path to profitability is the topic on QuinStreet's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

QuinStreet is bordering on breakeven, according to the 6 American Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$7.5m in 2025. The company is therefore projected to breakeven around 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 105%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving QuinStreet's growth isn't the focus of this broad overview, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that QuinStreet has no debt on its balance sheet, which is rare for a loss-making 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:

This article is not intended to be a comprehensive analysis on QuinStreet, so if you are interested in understanding the company at a deeper level, take a look at QuinStreet's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:

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.