MediaAlpha (MAX) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year 2024 results, with transaction value up 151% to $1.5B and Adjusted EBITDA up to $96.1M, driven by robust P&C insurance performance and strong cash flow generation.

• P&C transaction value more than tripled over five years, reaching $1.18B in 2024, with significant market share gains and continued secular growth drivers.

• Health insurance vertical faced headwinds, particularly in Medicare Advantage and under-65 segments, but long-term opportunity remains substantial.

• High partner retention rates: 100% one-year and 96% three-year retention among top 25 supply and demand partners.

• Net income for 2024 improved to $22.1M from a net loss of $56.6M in 2023.

Financial highlights

• FY 2024 Transaction Value: $1,492M, up from $738M in 2023; Q4 Transaction Value: $499.2M, up 202% YoY.

• FY 2024 Adjusted EBITDA: $96M, up from $27M in 2023; Q4 Adjusted EBITDA: $36.7M, up 189% YoY.

• Q4 net income was $7.3M, compared to a net loss of $3.3M in Q4 2023.

• Cash and cash equivalents increased to $43.3M at year-end 2024.

• Health vertical transaction value was $270M for 2024, representing 18% of total, with a 14% take rate.

Outlook and guidance

• Q1 2025 guidance: transaction value of $415M–$440M (95% YoY growth at midpoint), revenue of $225M–$245M (86% YoY growth at midpoint), Adjusted EBITDA of $24.5M–$26.5M (77% YoY growth at midpoint).

• P&C transaction value projected to grow ~170% YoY in Q1 2025, with a high single-digit sequential decline.

• Health vertical transaction value expected to decline by high teens percentage YoY in Q1 2025.

• Positioned to benefit from secular tailwinds in digital insurance advertising and online consumer behavior shifts.

• Focused on extending market leadership and deepening data sharing with partners.