NYSE$MAX

MediaAlpha Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

MediaAlpha's Q2 2022 financial results were announced amidst challenging market conditions in the P&C vertical, with a focus on operating efficiencies and resilience of the platform.

MediaAlpha reported a decrease in revenue by 34% year-over-year to $103.4 million and a net loss of $(13.0) million. The company is navigating challenging market conditions, particularly in the property & casualty (P&C) vertical, while maintaining focus on operating efficiencies.

  • Revenue decreased by 34% year-over-year to $103.4 million.
  • Transaction Value decreased by 29% year-over-year to $182.9 million.
  • Net loss was $(13.0) million, compared to $(0.4) million in the second quarter of 2021.
  • Adjusted EBITDA was $4.5 million, compared to $14.7 million in the second quarter of 2021.

Headline financials

Total Revenue

$103M

Previous: $157M-34.3%
EPS (adj)

-$0.28

Previous: -$0.01-2700.0%
Transaction Value

$183M

Previous: $257M-28.7%
Gross Margin

15.0%

Previous: 15.9%-5.7%
Contribution Margin

18.1%

Previous: 16.9%+7.1%
Adjusted EBITDA

$4.5M

Previous: $14.7M-69.4%
Free Cash Flow

-$9.14M

Previous: -$197K-4539.1%
Net Income

-$9.14M

Previous: -$197K-4539.1%
Operating Income

-$10.4M

Previous: $1.92M-643.7%
Gross Profit

$15.5M

Previous: $25M-38.0%
Cash & Equivalents

$35.2M

Previous: $15M+134.6%
Total Assets

$286M

Previous: $236M+20.9%
Stock-Based Comp

$15.8M

Previous: $11.5M+37.5%

Revenue & EPS history

MediaAlpha · Revenue · Quarterly

$103M

Q2 2022-34.3%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

For the third quarter of 2022, MediaAlpha expects a worsening year-over-year trend in customer acquisition spending by P&C insurance carrier partners and anticipates Transaction Value in the Health insurance vertical to be similar to the second quarter level.

Headwinds

  • Transaction Value between $130 million - $145 million, representing a 46% year-over-year decline at the midpoint.
  • Revenue between $77 million - $87 million, representing a 46% year-over-year decline at the midpoint.
  • Adjusted EBITDA between breakeven and $1.5 million, representing a 95% year-over-year decline at the midpoint.
  • Transaction Value in the P&C insurance vertical is expected to decline sequentially.
  • Adjusted EBITDA is expected to decline year over year at a greater rate than Transaction Value and Revenue due to increases in headcount and operating expenses.

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 Q2 2022

Historical avgQ2 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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