NYSE$MAX

MediaAlpha Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported record results across key metrics, driven by P&C insurance vertical growth.

MediaAlpha announced excellent third-quarter results with record performance across key metrics. Revenue increased by 247% year-over-year to $259.1 million, and Transaction Value rose by 314% year-over-year to $451.8 million. The P&C insurance vertical was a significant driver of growth, with Transaction Value up 766% year-over-year.

  • Revenue increased by 247% year-over-year to $259.1 million.
  • Transaction Value increased by 314% year-over-year to $451.8 million.
  • Net income was $11.9 million, compared to a net loss of $(18.7) million in the third quarter of 2023.
  • Adjusted EBITDA was $26.3 million, compared to $3.6 million in the third quarter of 2023.

Headline financials

Total Revenue

$259M

Previous: $74.6M+247.5%
EPS

$0.17

Previous: -$0.29+158.6%
Transaction Value

$452M

Previous: $109M+314.5%
P&C Transaction Value

$387M

No prior period
Health Transaction Value

$55.6M

No prior period
Life Transaction Value

$6.26M

No prior period
Other Transaction Value

$2.45M

No prior period
Gross Margin

15.1%

Previous: 16.5%-8.5%
Contribution

$41.5M

No prior period
Contribution Margin

16.0%

Previous: 20.2%-20.8%
Adjusted EBITDA

$26.3M

Previous: $3.6M+629.8%
Capital Expenditures

-$207K

Previous: -$13K-1492.3%
Free Cash Flow

$9.28M

Previous: -$13.5M+168.7%
Net Income

$9.48M

Previous: -$13.5M+170.2%
Operating Income

$15.6M

Previous: -$14.7M+205.8%
Gross Profit

$39.2M

Previous: $12.3M+219.0%
Cash & Equivalents

$32.3M

Previous: $15.2M+112.6%
Total Assets

$236M

Previous: $133M+77.5%
R&D Expense

$5.33M

Previous: $4.3M+24.0%
Stock-Based Comp

$8.6M

Previous: $14.5M-40.5%

Revenue & EPS history

MediaAlpha · Revenue · Quarterly

$259M

Q3 2024+247.5%vs Q3 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

For the fourth quarter of 2024, MediaAlpha expects Transaction Value between $470 million - $495 million, Revenue between $275 million - $295 million, and Adjusted EBITDA between $29.5 million and $32.5 million.

Tailwinds

  • Transaction Value between $470 million - $495 million, representing a 192% year-over-year increase at the midpoint of the guidance range
  • Revenue between $275 million - $295 million, representing a 143% year-over-year increase at the midpoint of the guidance range
  • Adjusted EBITDA between $29.5 million and $32.5 million, representing a 144% year-over-year increase at the midpoint of the guidance range
  • Contribution less Adjusted EBITDA to be approximately $0.5 - $1.0 million higher than in Q3 2024.

Headwinds

  • Transaction Value in P&C insurance vertical to be flat to slightly up as compared to Q3 2024 levels.
  • Transaction Value in Health insurance vertical to be down mid-single digits year over year due to headwinds in Medicare.

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 2024

Historical avgQ3 2024

+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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