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Dec 31, 2023
MediaAlpha Q4 2023 Earnings Report
Announced fourth quarter and full year 2023 financial results, exceeding expectations due to improving conditions in the Property & Casualty insurance vertical.
Key Takeaways
MediaAlpha's fourth quarter revenue reached $117 million, a 6% decrease year-over-year, while full-year revenue totaled $388 million, down 15% year-over-year. The company's Q4 performance exceeded expectations, driven by improvements in the Property & Casualty insurance sector. They anticipate growth accelerating as auto insurance carriers restore profitability and increase marketing investments.
Fourth quarter revenue was $117 million, a decrease of 6% year over year.
Fourth quarter Transaction Value was $165 million, a decrease of 2% year over year.
Net loss for the fourth quarter was $(3.3) million, compared to $(28.4) million in the fourth quarter of 2022.
Adjusted EBITDA for the fourth quarter was $12.7 million, compared to $9.0 million in the fourth quarter of 2022.
Forward Guidance
For Q1 2024, MediaAlpha expects Transaction Value between $175 million - $190 million, Revenue between $105 million - $115 million, and Adjusted EBITDA between $9.5 million - $11.5 million.
Positive Outlook
- P&C Transaction Value is expected to nearly double in Q1 2024 compared with Q4 2023, driven by both an accelerating recovery in carrier marketing spending and normal seasonality.
- Health vertical is expected to have mid- to high-single digit year-over-year growth in Transaction Value.
- Adjusted EBITDA is expected to grow at a greater rate than Transaction Value, Revenue and Contribution in Q1 2024 due to our primarily fixed operating expense profile.
- Contribution less Adjusted EBITDA in Q1 2024 is expected to be approximately $0.5 - $1.0 million higher than Q4 2023.
- Transaction Value between $175 million - $190 million, representing a 6% year-over-year decline at the midpoint of the guidance range.
Challenges Ahead
- Life and Other verticals are expected to have Transaction Value slightly down year over year.
- Revenue between $105 million - $115 million, representing a 1% year-over-year decline at the midpoint of the guidance range.
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