NYSE$MAX

MediaAlpha Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

MediaAlpha reported a strong start as a public company, driven by growth in the Property & Casualty insurance vertical.

MediaAlpha announced strong Q3 2020 financial results with revenue of $151.5 million, a 37% increase year-over-year. Transaction Value reached a record $217.6 million, up 44% year-over-year. The company is benefiting from positive trends in the insurance industry.

  • Revenue reached $151.5 million, a 37% increase year-over-year.
  • Transaction Value increased by 44% year-over-year, reaching $217.6 million.
  • Net income was $4.8 million, compared to $7.8 million in Q3 2019.
  • Adjusted EBITDA was $14.0 million, compared to $11.7 million in Q3 2019.

Headline financials

Total Revenue

$152M

Previous: $110M+37.3%
EPS (adj)

$0.19

Previous: $0.24-20.7%
Transaction Value

$218M

Previous: $151M+44.3%
Gross Margin

13.7%

Previous: 16.0%-14.4%
Contribution Margin

14.3%

Previous: 16.9%-15.4%
Adjusted EBITDA

$14M

Previous: $11.7M+19.7%
Net Income

$4.8M

Previous: $7.76M-38.2%
Operating Income

$8.44M

Previous: $9.68M-12.8%
Gross Profit

$20.7M

Previous: $17.7M+17.1%

Revenue & EPS history

MediaAlpha · Revenue · Quarterly

$152M

Q3 2020+37.3%vs Q3 2019
Beat estimate in 5 of 8 quarters(63%)
ActualEstimate

Forward guidance

For the fourth quarter of 2020, MediaAlpha expects Transaction Value between $223 - $225 million, Revenue between $163 - $165 million, Contribution between $24.5 - $25.5 million, and Adjusted EBITDA between $15.0 - $15.5 million.

Tailwinds

  • Transaction Value between $223 - $225 million, representing 32% year-over-year growth at the midpoint of the guidance range
  • Revenue between $163 - $165 million, representing 30% year-over-year growth at the midpoint of the guidance range
  • Contribution between $24.5 - $25.5 million, representing 16% year-over-year growth at the midpoint of the guidance range
  • Adjusted EBITDA between $15.0 - $15.5 million, representing 9% year-over-year growth 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 Q3 2020

Historical avgQ3 2020

+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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