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Dec 31, 2024
MediaAlpha Q4 2024 Earnings Report
MediaAlpha announced its financial results for the fourth quarter and full year ended December 31, 2024, surpassing expectations with record-breaking performance.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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