NYSE$MAX

MediaAlpha Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

MediaAlpha announced its financial results for the fourth quarter and full year ended December 31, 2024, surpassing expectations with record-breaking performance.

MediaAlpha reported a strong fourth quarter and full year 2024, exceeding guidance with significant growth in revenue and transaction value, particularly in the Property & Casualty insurance vertical. The company achieved record Adjusted EBITDA and a substantial improvement in net income.

  • Fourth quarter revenue increased by 157% year over year to $300.6 million.
  • Transaction Value grew by 202% year over year to $499.2 million, driven by a 639% increase in Property & Casualty.
  • Net income for the fourth quarter was $7.3 million, a significant improvement from a net loss in the prior year.
  • Adjusted EBITDA reached $36.7 million in Q4 2024, up from $12.7 million in Q4 2023.

Headline financials

Total Revenue

$301M

Previous: $117M+156.6%
EPS (adj)

$0.08

Previous: -$0.05+260.0%
Transaction Value

$499M

No prior period
P&C Transaction Value

$401M

No prior period
Health Transaction Value

$90.3M

No prior period
Life Transaction Value

$6.28M

No prior period
Other Transaction Value

$1.61M

No prior period
Gross Margin

16.3%

No prior period
Contribution

$51.5M

No prior period
Contribution Margin

17.1%

No prior period
Adjusted EBITDA

$36.7M

No prior period
Capital Expenditures

-$47K

Previous: -$13K-261.5%
Net Income

$7.3M

Previous: -$3.29M+321.7%
Operating Income

$18.3M

Previous: $446K+3992.4%
Gross Profit

$49M

Previous: $22.3M+119.8%
R&D Expense

$5.02M

Previous: $3.93M+27.7%

Revenue & EPS history

MediaAlpha · Revenue · Quarterly

$301M

Q4 2024+156.6%vs Q4 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

For the first quarter of 2025, MediaAlpha expects approximately 170% year-over-year growth in P&C Transaction Value, with overall Transaction Value projected to increase by 95% year-over-year at the midpoint of the guidance range. Revenue is expected to increase by 86% year-over-year, and Adjusted EBITDA by 77% year-over-year at the midpoint.

Tailwinds

  • P&C Transaction Value expected to grow approximately 170% year-over-year.
  • Overall Transaction Value projected between $415 million to $440 million, a 95% year-over-year increase at midpoint.
  • Revenue expected between $225 million to $245 million, an 86% year-over-year increase at midpoint.
  • Adjusted EBITDA projected between $24.5 million to $26.5 million, a 77% year-over-year increase at midpoint.
  • Company expects Contribution less Adjusted EBITDA to be approximately $0.5 - $1.0 million higher than in Q4 2024.

Headwinds

  • P&C Transaction Value expected to see a high single-digit sequential decline as pricing moderates.
  • Health vertical Transaction Value expected to decline by a high-teens percentage year over year.
  • Conditions in the under-65 health insurance market continue to soften.
  • Reconciliation of Adjusted EBITDA to net income (loss) and Contribution to gross profit is not provided due to uncertainty of reconciling items.
  • Reconciling items could significantly impact GAAP measures.

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 Q4 2024

Historical avgQ4 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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