• Quarterly Revenue of $123.9M, up 48% over Q2 2020

• GAAP Net Loss of $17.2M

• Adjusted EBITDA of $4.3M

• Signed and went live with Microsoft and MSN.com to offer coupons from Quotient’s network

Quotient (NYSE: QUOT), the leading digital media and promotions technology company, today reported financial results for the second quarter ended June 30, 2021. Quotient’s complete second quarter 2021 financial results and management commentary can be found by accessing the Company’s stockholder letter under Key Resources on the overview page in the Investor Relations section of Quotient’s website.

“We delivered another quarter of strong revenues and innovation in Q2,” said Steven Boal, CEO. “Additionally, over the past quarter we reached a milestone, and can now help brands exceed the sales unit volumes and results of the Free-Standing Inserts (FSIs) on our national promotions platform. Having the scale and innovative offerings like our promotion amplification tool, we are providing our customers and retailer partners digital alternatives to offline paper solutions. We believe examples like this validate our value proposition and extend the runway of opportunity ahead of us as a market leader.”

Additionally, on July 30, 2021, Quotient appointed Alison Hawkins, who has spent over twenty years in executive roles with significant leadership accomplishments in financial services, real estate and capital markets, to its Board of Directors and Audit Committee. Concurrently, Michelle McKenna stepped down from Quotient's Board of Directors. Please see Quotient’s filing on Form 8-K dated August 5, 2021 for complete details.

Outlook

In addition to the guidance, we have provided below as well as what we have shared in prior commentary, we are in the midst of contract renewals with certain retailers, which could have an impact on future results.

For the second half of 2021, we expect that all sponsored search revenue will be recognized net of third-party costs. We estimate that this accounting change will reduce revenue and cost of sales by approximately $5 million to $6 million per quarter in each Q3 2021 and Q4 2021. Based on this change, we expect the following:

For the third quarter of 2021, we expect:

• Revenue: $126.0 million to $133.0 million
• Adjusted EBITDA: $2.0 million to $12.0 million
• Operating Cash Flow: $7.0 million to $12.0 million

For the full year 2021, we expect:

• Revenue: $505.0 million to $522.0 million
• Adjusted EBITDA: $50.0 million to $65.0 million
• Weighted Average Basic Shares Outstanding: ~95.0 million

Had we not made changes to our delivery and accounting for sponsored search, our revenue guidance would have been approximately $5 million higher for the third quarter of 2021 and approximately $10 million higher for the full year. This change has not impacted the guidance for Adjusted EBITDA, operating cash flow or weighted average basic shares outstanding.

Conference Call Information

The Company has posted a stockholder letter and an earnings presentation on the Investor Relations section of the Company’s website at: https://investors.quotient.com/. Management will host a conference call and live webcast to discuss the highlights of the quarter and address questions today at 5:00 p.m. ET/ 2:00 p.m. PT.

To access the call, we encourage you to pre-register to eliminate long wait times using this link: Quotient Q2 2021 Earnings Pre Registration. After registering, a confirmation will be sent via email and will include dial-in details and a unique PIN code for entry to the call. Registration will be open through the live call. We suggest registering at least 15 minutes before the start of the call to receive your unique PIN code. You may also access the call and register with a live operator by dialing (866) 270-1533, or outside the U.S. (412) 317-0797, at least 15 minutes prior to the 2:00 p.m. PT start time. The live webcast and all accompanying materials can be accessed on the Investor Relations section of the Company website at: https://investors.quotient.com/. A replay of the webcast will be available on the website following the conference call.

Use of Non-GAAP Financial Measures

Quotient reports its financial statements in accordance with generally accepted accounting principles in the United States (GAAP) and the rules of the Securities and Exchange Commission (SEC). To supplement its financial statements presented in accordance with GAAP, Quotient provides investors in this press release with Adjusted EBITDA, a non-GAAP financial measure. Quotient believes that this non-GAAP measure provides investors with additional useful information used by Quotient’s management and Board of Directors for financial and operating decision making. In particular, Quotient believes that the exclusion of certain income and expense items in calculating this metric can provide a useful measure for period-to-period comparisons of its core business as well as a useful comparison to peer companies.

Quotient defines Adjusted EBITDA as net income (loss) adjusted for interest expense, provision for (benefit from) income taxes, other (income) expense, net, depreciation and amortization, stock-based compensation, change in fair value of contingent consideration, impairment of promotion service right, certain acquisition-related costs, and restructuring charges. Quotient excludes these items because it believes these items do not reflect expected future operating expenses. Additionally, certain items are inconsistent in size and frequency—making it difficult to contribute to a meaningful evaluation of Quotient's current or past operating performance.

There are a number of limitations related to the use of this non-GAAP financial measure. Quotient compensates for these limitations by providing specific information regarding the GAAP amount excluded from this non-GAAP financial measure and evaluating this non-GAAP financial measure together with its relevant GAAP financial measure.

This non-GAAP financial measure is not intended to be considered in isolation from, as substitute for, or as superior to the corresponding financial measure prepared in accordance with GAAP. Because of these and other limitations, Adjusted EBITDA should be considered along with other GAAP-based financial performance measures, including various cash flow metrics, net income (loss) and Quotient’s other GAAP financial results.

For a reconciliation of this non-GAAP financial measure to the nearest comparable GAAP financial measure, see “Reconciliation of Net Loss to Adjusted EBITDA” included in this press release.

A reconciliation of the Adjusted EBITDA guidance metrics, which are non-GAAP guidance measures, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the high variability and low visibility of certain (income) expense items that are excluded in calculating Adjusted EBITDA.

Forward-Looking Statements

This press release contains forward-looking statements concerning the Company’s current expectations and projections about future events and financial trends affecting its business. Forward-looking statements in this press release include the Company’s ability, through its national promotions platform, to help brands exceed sales unit volumes through digital campaigns as compared to free-standing insert, or paper-delivered, campaigns; the Company’s scale and innovation capabilities, as exemplified by its promotion amplification tool, enabling the Company to provide its customers and retailer partners digital alternatives to offline paper solutions; the Company’s solutions validating and extending the runway of opportunity ahead of it as a market leader; the contract renewal process with certain retailers as potentially impacting the Company’s future results; and the future financial performance of Quotient (including the guidance for the third quarter and full year 2021). Forward-looking statements are based on the Company’s current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, the Company’s ability to generate positive cash flow and become profitable; the amount and timing of digital marketing spend by advertisers (including consumer packaged goods (CPG) companies) and shifts in advertiser spend to digital solutions; the Company's expectations regarding other growth drivers including its ability to expand its relationships with retailers and obtain and maintain retailer support for its platforms, and its ability to maintain and expand the use by consumers of digital promotions on its platforms; the Company’s ability to innovate and adapt to changing market conditions and data regulations, including the Company’s ability to adapt to changes in consumer habits and consumer data privacy concerns; the impacts of the ongoing COVID-19 pandemic, which may continue to impact the Company's business, plans and results of operations, as well as the value of the Company's common stock; and other factors identified in the Company’s filings with the SEC, including its Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC on February 23, 2021 and May 10, 2021, respectively, and future filings and reports by the Company. Quotient disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise and does not assume responsibility for the accuracy and completeness of the forward-looking statements.

About Quotient

Quotient (NYSE: QUOT) is the leading digital media and promotions technology company for advertisers, retailers and consumers. Quotient’s omnichannel platform is powered by exclusive consumer spending data, location intelligence and purchase intent data to reach millions of shoppers daily and deliver measurable, incremental sales.

Quotient partners with leading advertisers and retailers, including Clorox, Procter & Gamble, General Mills, Unilever, Albertsons Companies, CVS, Dollar General and Peapod Digital Labs, a company of Ahold Delhaize USA. Quotient is headquartered in Mountain View, California, and has offices across the US as well as in Bangalore, Paris, London and Tel Aviv. For more information visit www.quotient.com.

Quotient and the Quotient logo are trademarks or registered trademarks of Quotient Technology Inc. and its subsidiaries in the United States and other countries. Other marks are the property of their respective owners.

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