NYSE$MAX
MediaAlpha Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Announced second quarter 2023 financial results, exceeding expectations driven by strength in the Health insurance vertical, but impacted by low customer acquisition spend in Property & Casualty insurance.
MediaAlpha's second quarter results surpassed expectations, primarily due to the strong performance of its Health insurance vertical. However, the Property & Casualty insurance vertical experienced a decline due to low customer acquisition spend by carriers. The company reported revenue of $84.8 million, a net loss of $(20.0) million, and adjusted EBITDA of $3.6 million.
- Revenue was $84.8 million, down 18% year over year.
- Transaction Value was $125.9 million, down 31% year over year.
- Gross margin was 16.2%, compared to 15.0% in the second quarter of 2022.
- Net loss was $(20.0) million, compared to $(13.0) million in the second quarter of 2022.
Headline financials
Revenue & EPS history
MediaAlpha · Revenue · Quarterly
$84.8M
Forward guidance
For the third quarter of 2023, MediaAlpha expects Transaction Value between $95 million - $110 million, Revenue between $65 million - $75 million, and Adjusted EBITDA between $1.5 million and $3.5 million.
Tailwinds
- Projecting operating expenses, net of Adjusted EBITDA addbacks, to be approximately $1.5 million lower than Q2 2023 levels.
- This is primarily driven by a full quarter impact of the workforce reductions implemented in May 2023.
- Continued expense discipline is also contributing to lower operating expenses.
- Expect third quarter Transaction Value in Health vertical to grow year over year at a rate similar to the second quarter.
- Adjusted EBITDA between $1.5 million and $3.5 million, representing a 15% year-over-year increase at the midpoint of the guidance range.
Headwinds
- Guidance reflects a continuation of low customer acquisition spend levels by P&C carriers as they prioritize profitability over growth.
- Expect third quarter Transaction Value in P&C insurance vertical to decline year over year by 40% to 50%.
- Transaction Value between $95 million - $110 million, representing a 30% year-over-year decline at the midpoint of the guidance range.
- Revenue between $65 million - $75 million, representing a 21% year-over-year decline at the midpoint of the guidance range.
- P&C carriers are taking longer than expected to restore underwriting profitability, and we expect this to continue for the balance of the year.
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 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 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro