NYSE$MAX
MediaAlpha Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
MediaAlpha announced its first quarter 2023 financial results, with revenue down 22% year over year, but a ramp in marketing spend by a large carrier partner resulted in 108% sequential Transaction Value growth in P&C.
MediaAlpha's Q1 2023 saw a 22% decrease in revenue year-over-year, totaling $111.6 million. Despite this, a surge in marketing spend by a major carrier partner boosted Transaction Value growth in the P&C insurance vertical. However, this momentum was short-lived as the same carrier subsequently reduced advertising spend.
- Revenue was $111.6 million, a 22% decrease year-over-year.
- Transaction Value was $193.2 million, a 19% decrease year-over-year.
- Gross margin was 16.5%, compared to 15.2% in the first quarter of 2022.
- Net loss was $(14.6) million, compared to $(9.8) million in the first quarter of 2022.
Headline financials
Revenue & EPS history
MediaAlpha · Revenue · Quarterly
$112M
Forward guidance
For the second quarter of 2023, MediaAlpha expects Transaction Value between $107 million - $122 million, Revenue between $74 million - $84 million, and Adjusted EBITDA between $0.5 million and $2.5 million.
Tailwinds
- Projecting operating expenses after Adjusted EBITDA add backs to be approximately $1.5 million lower than Q1 2023 levels.
- Workforce reductions are driving the decrease in operating expenses.
- Operating expenses are expected to remain at these levels in Q3 2023.
- Guidance reflects management of full-year profitability targets.
- Guidance reflects steps taken to address key drivers of first quarter underwriting results.
Headwinds
- Guidance for Q2 2023 reflects a pullback in marketing spend by the largest P&C carrier partner.
- Second quarter Transaction Value in the P&C insurance vertical is expected to decline year-over-year by 40% to 50%.
- Second quarter Transaction Value in the Health vertical is expected to be roughly flat year-over-year.
- Transaction Value is expected to decline 37% year-over-year at the midpoint of the guidance range.
- Adjusted EBITDA is expected to decline 67% year-over-year at the midpoint of the guidance range.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2023
+3.4%
Avg return
Earnings day
+1.5%
Avg return
5 days after
+0.5%
Avg return
30 days after
50%
11 / 22 earnings
Positive
+31.8%
Q3 2022
Best reaction
-18.5%
Q4 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.1% | -11.3% | -11.8% | |
| Q4 2025 | +12.3% | +27.9% | +23.4% | |
| Q3 2025 | +10.8% | +20.1% | +14.7% | |
| Q1 2025 | +14.2% | +18.2% | +21.4% | |
| Q4 2024 | -18.5% | -18.6% | -11.0% | |
| Q3 2024 | -12.6% | -17.9% | -35.5% | |
| Q2 2024 | +15.0% | +12.1% | +23.4% | |
| Q1 2024 | +9.0% | +9.3% | -12.2% | |
| Q4 2023 | +22.3% | +24.2% | +26.0% | |
| Q3 2023 | -4.6% | -15.8% | +0.1% | |
| Q2 2023 | -3.0% | -6.2% | -13.2% | |
| Q1 2023 | -2.4% | -6.4% | +50.7% | |
| Q4 2022 | +12.3% | +4.8% | +1.0% | |
| Q3 2022 | +31.8% | +26.4% | +2.3% | |
| Q2 2022 | -15.0% | -32.8% | -28.9% | |
| Q1 2022 | -9.6% | -22.0% | -31.2% | |
| Q4 2021 | +28.9% | +31.6% | +39.1% | |
| Q3 2021 | -1.5% | +12.7% | -2.1% | |
| Q2 2021 | -6.6% | -19.1% | -25.2% | |
| Q1 2021 | -13.1% | -4.2% | +3.6% | |
| Q4 2020 | +3.3% | +8.2% | -30.3% | |
| Q3 2020 | +1.8% | -7.4% | +7.2% | |
| Q2 2020 | — | — | — | |
| Q1 2020 | — | — | — | |
| Q4 2019 | — | — | — | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — | |
| Q2 2018 | — | — | — | |
| Q1 2018 | — | — | — |
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