Mediaalpha, Inc. ( (MAX) ) has released its Q4 earnings. Here is a breakdown of the information Mediaalpha, Inc. presented to its investors.
MediaAlpha, Inc. is a leading programmatic customer acquisition platform in the insurance industry, connecting insurance carriers with online shoppers through its advanced advertising technology. The company recently announced its financial results for the fourth quarter and full year 2024, showcasing significant growth in revenue and transaction value.
In the fourth quarter of 2024, MediaAlpha surpassed its guidance with a revenue increase of 157% year-over-year, reaching $300.6 million, and a transaction value growth of 202%, totaling $499.2 million. The Property & Casualty insurance vertical was a major contributor, with transaction value soaring by 639% to $401 million. For the full year, revenue grew by 123% to $865 million, and transaction value increased by 151% to $1.5 billion.
Key financial metrics highlighted include a net income of $22.1 million for the full year, a significant improvement from a net loss in the previous year, and a record adjusted EBITDA of $96.1 million. Despite a slight decrease in gross and contribution margins, the company’s profitability improved markedly. MediaAlpha also recorded a $7 million reserve related to ongoing settlement discussions with the FTC.
Looking ahead, MediaAlpha is optimistic about its growth prospects, expecting continued strong performance in its Property & Casualty vertical, with a projected 170% year-over-year growth in transaction value for the first quarter of 2025. However, the Health vertical is anticipated to face challenges with a projected decline in transaction value. The company’s management remains confident in its ability to drive sustainable growth and create shareholder value through its strategic partnerships and industry-leading efficiency.