MediaAlpha (MAX) Goldman Sachs Communacopia + Technology Conference 2024 summary

Platform overview and market positioning

• Operates at the intersection of insurance and customer acquisition, connecting major carriers with consumers via a marketplace of hundreds of publisher sites, primarily in auto insurance.

• Enables carriers to bid for consumers based on expected lifetime value, shifting distribution spend from brokers to direct-to-consumer advertising.

• Benefits from the industry's transition from agent-based to direct-to-consumer models, especially in auto insurance.

Industry trends and cyclical dynamics

• The property and casualty insurance market experienced a downturn due to post-COVID claims inflation and supply chain issues, leading to reduced advertising spend.

• As profitability is restored, carriers are increasing advertising spend, marking a recovery and inflection point in 2024.

Competitive landscape and differentiation

• Competes with QuinStreet, EverQuote, and LendingTree but is several times larger in carrier spend due to its broad publisher network.

• Differentiates through data-rich targeting and transparency, allowing carriers to precisely target desired customer segments.