MediaAlpha (MAX) Q4 2024 earnings summary

Executive summary

• 2024 saw outstanding financial results, with transaction value up 151% to $1.5B and Adjusted EBITDA up to $96.1M, driven by record P&C insurance performance and strong partner retention.

• Q4 delivered record results across all key metrics, with P&C transaction value up 639% YoY to $401M and above normal seasonality.

• Health insurance vertical faced headwinds, particularly in Medicare Advantage and under-65 segments, impacting Q4 results.

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

• Addressable market is expanding as insurance carriers increase online direct-to-consumer marketing.

Financial highlights

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

• FY 2024 Adjusted EBITDA: $96.1M, up from $27M in 2023; Q4 Adjusted EBITDA: $36.7M, up 189% YoY.

• Q4 2024 revenue grew 157% YoY to $300.6M; full-year revenue increased 123% to $864.7M.

• Q4 Adjusted EBITDA included $9M of add-backs related to the FTC matter.

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

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, with a high single-digit sequential decline.

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

• 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.