Quotient Technology Inc.

NYSE:QUOT Stock Report

Market Cap: US$397.9m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Quotient Technology Future Growth

Future criteria checks 0/6

We currently don't have sufficient analyst coverage to forecast growth and revenue for Quotient Technology.

Key information

134.5%

Earnings growth rate

133.13%

EPS growth rate

Media earnings growth33.5%
Revenue growth rate7.4%
Future return on equityn/a
Analyst coverage

Low

Last updated05 Sep 2023

Recent future growth updates

Recent updates

Seeking Alpha • Dec 17

Quotient Technology: From Coupons To Automatic Tools, Looks Undervalued

Summary Quotient Technology is undoubtedly one of the companies that has been able to get the most out of the returns in relation to the transformation of the advertising culture. In my view, the fact that Quotient targets very different types of clients and offers tailored solutions depending on the data required is promising. Some of the company's leading numbers include 127 million located and active buyers, more than $45 billion in coupons activated in 54,000 different points, and 108 daily mobile signals. Quotient Technology Inc. (QUOT), which operates in the digital advertising business, has an impressive ability to locate active buyers for retail clients. QUOT has access to an impressive amount of data about consumers, which retailers demand. Under conservative conditions, I obtained a free cash flow stream, which would justify a valuation of close $4.28 per share. I also see risks from competitors offering less automatic tools. With that, I believe that Quotient is undervalued. Quotient The digital advertising business has had enormous growth since the insertion of mobile devices in the day-to-day business world and citizens not only because of the marketing campaigns themselves, which bring a significant number of customers to the companies that advertise their products, but also because of the collection of user data that later allows the advertising companies to develop segmentation plans and much more detailed objectives in relation to the product in question and to the region where it wants to be inserted. Quotient Technology is undoubtedly one of the companies that has been able to get the most out of the returns in relation to the transformation of the advertising culture. Founded in 1998 by Steven Boal, under the name of Coupon.com, the company offered only discount coupons based on acting as an intermediary between customers and the companies that offered their discounts. The name of the company changed to its current name in 2015, and it developed a business model that was able to adapt to the needs of the current market. Source: Quarterly Presentation Its business is divided into three large segments: for brands, for data collectors, and its data analysis service. In other words, Quotient offers its multimedia channel to companies interested in generating advertising content besides offering the data collected by its software to other companies. In addition, it has a data analysis service to generate better segmented targets. According to its last 10-k, some of the company's leading numbers include 127 million located and active buyers, more than $45 billion in coupons activated in 54,000 different points, and 108 daily mobile signals in the United States for its objectives of locating potential buyers. In my view, these figures demonstrate the magnitude of capital involved in the company's operations and the success it has had in developing and growing since its founding. Source: Quarterly Presentation In relation to its human capital, which the company points out as one of the key factors in the development of its business model, the company currently has 1,162 employees, of which 943 work from the United States and the rest work remotely in other countries of the world. The development in the area of ​​inclusion and diversity that this company presents over most of the companies in the field is worth noting, since 52% of its employees are women, and 42% of executive positions are held by women. Expectations From Analysts Include 2024 Sales Growth of 5.7% And Double Digit EBITDA Margin From 2018, the company’s FCF went from close to 5%-10% to around 2% in 2022. I used some of these figures in my financial models, so I believe that investors may want to have a look at them. Source: Ycharts Market expectations include net sales of $333 million by 2024 with a net sales growth of 5.71%. 2023 EBITDA will likely stay close to $44.7 million with an EBITDA margin of 14.19%. 2023 operating profit would be $16.3 million together with an operating margin of 5.16%. Finally, pre-tax profit would be close to -$6.12 million with a net income of -$6.12 million. Source: Ycharts The Asset/Liability Ratio Is Larger Than 1x As of September 30, 2022, Quotient reported cash worth $208.394 million in addition to accounts receivable of $96.058 million. Total current assets were equal to approximately $324.852 million, which implied a current assets/current liabilities ratio of 1x. Total of assets stand at $512.054 million with an asset/liability ratio larger than 1x. I believe that the company’s liquidity and the balance sheet are in good shape. Source: 10-Q Accounts payable stood at $27.796 million with other current liabilities close to $62.014 million. Convertible senior notes were worth $199.844 million with total current liabilities of $314.209 million. Finally, with operating lease liabilities worth $22.597 million, total liabilities are equal to $339.269 million. Source: 10-Q My Conservative Case Scenario Indicated A Fair Valuation Of $4.28 Per Share During 2019, a single client meant a sum of revenue greater than 10% of the total revenue. I believe that management is making a lot of efforts to increase its exposure to a small number of clients. In 2020 and 2021, no client represented more than 10% of the total amount of revenue. This speaks of the successful diversification in its client portfolio, avoiding the risk of being directly subject to the success in the development of the business model of a third company. Under this case scenario, I assumed that more clients would mean more revenue growth. The company’s services are available for brands that want to place their products on the advertising network and for retailers who benefit from the company's information and developments even without placing their products on the market. In my view, the fact that Quotient targets very different types of clients and offers tailored solutions depending on the data required is promising. In my view, further information about what clients need will likely bring revenue growth and perhaps economies of scale. Finally, if Quotient continues to invest in sales and advertising, growth of its customer base and network, and R&D of new products, revenue growth will likely continue. In the nine months ended September 30, 2021, I saw that management reported as much as $63 million in sales and marketing and close to $21 million in R&D efforts. Source: 10-Q Under the previous conditions, my forecast for 2030 includes net sales close to $439.5 million and sales growth of 3%. In addition, I assumed an EBITDA of around $44.39 million together with an EBITDA margin of 10.10%. I also included an FCF of $14 million accompanied by an FCF margin of 3.10%. By including a WACC of 8.78%, I obtained an NPV of FCF of $51 million. With an EV/EBITDA multiple of 17x, the terminal value would be close to $755 million, which also implied an NPV of terminal value of $354 million, Finally, my model included an enterprise value of $405 million, equity of $414 million, and a fair price of $4.28 per share. Note that with cash of $208 million and debt of around $199 million, Quotient’s net debt is close to zero, so I wouldn’t be afraid of the company’s leverage.
Analysis Article • Aug 11

Does Quotient Technology (NYSE:QUOT) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Seeking Alpha • Aug 09

Quotient Technology reports Q2 earnings; narrows FY22 guidance and issues Q3 outlook

Quotient Technology press release (NYSE:QUOT): Q2 GAAP EPS of -$0.45. Revenue of $69.3M (-44.1% Y/Y). Non-GAAP gross margin was 52.3% for the second quarter of 2022, compared to 40.3% for the second quarter of 2021. Adjusted EBITDA for the second quarter of 2022 was -$1.3M loss, compared to $4.3M profit for the second quarter of 2021. Financial Outlook: Quotient's guidance for the third quarter 2022: Revenue: $70 million to $80 million vs. consensus of $84.25M; Non-GAAP Gross Profit: $37 million to $42 million; Adjusted EBITDA: $5 million to $10 million; Operating Cash Flow: -$5 million to $0 million Quotient's guidance for the full year 2022: Revenue: $295 million to $310 million vs. consensus of $343.31M; Non-GAAP Gross Profit: $147 million to $160 million; Adjusted EBITDA: $15 million to $20 million; Operating Cash Flow: $0 million to $5 million
Analysis Article • Sep 14

Does Quotient Technology (NYSE:QUOT) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Analysis Article • May 10

Is Quotient Technology (NYSE:QUOT) Weighed On By Its Debt Load?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Earnings and Revenue Growth Forecasts

NYSE:QUOT - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/20242974N/AN/A1
12/31/2023278-19N/AN/A1
6/30/2023266-40-165N/A
3/31/2023270-68-319N/A
12/31/2022289-77-200N/A
9/30/2022364-84-28-10N/A
6/30/2022430-85-142N/A
3/31/2022485-58-25-10N/A
12/31/2021521-461126N/A
9/30/2021518-643143N/A
6/30/2021503-602336N/A
3/31/2021462-623446N/A
12/31/2020446-651526N/A
9/30/2020422-50415N/A
6/30/2020416-56716N/A
3/31/2020437-41313N/A
12/31/2019436-37832N/A
9/30/2019425-321244N/A
6/30/2019413-29542N/A
3/31/2019398-30-338N/A
12/31/2018387-28-522N/A
9/30/2018373-20827N/A
6/30/2018351-232537N/A
3/31/2018336-243642N/A
12/31/2017322-154248N/A
9/30/2017304-163743N/A
6/30/2017289-162632N/A
3/31/2017282-14N/A21N/A
12/31/2016275-19N/A22N/A
9/30/2016269-27N/A13N/A
6/30/2016259-25N/A8N/A
3/31/2016248-31N/A10N/A
12/31/2015237-27N/A9N/A
9/30/2015228-25N/A12N/A
6/30/2015230-16N/A11N/A
3/31/2015226-13N/A10N/A
12/31/2014222-23N/A11N/A
9/30/2014214-20N/A3N/A
6/30/2014196-21N/A4N/A
3/31/2014183-17N/A0N/A
12/31/2013168-11N/A-14N/A
9/30/2013151-22N/A-21N/A
12/31/2012112-59N/A-47N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: QUOT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: QUOT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: QUOT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: QUOT's revenue (7.4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: QUOT's revenue (7.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if QUOT's Return on Equity is forecast to be high in 3 years time

Discover growth companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/09/06 17:09
End of Day Share Price 2023/09/01 00:00
Earnings2023/06/30
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Quotient Technology Inc. is covered by 12 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nathaniel SchindlerBofA Global Research
Steven FrankelColliers Securities
Chad BennettCraig-Hallum Capital Group LLC