MediaAlpha, Inc. (MAX) Bundle
A Brief History of MediaAlpha, Inc.
MediaAlpha, Inc. (NYSE: MAX), a leading programmatic customer acquisition platform in the insurance industry, has shown significant growth and transformation since its inception. As of 2024, the company has achieved remarkable financial results, particularly in the third quarter.
Financial Performance in 2024
For the third quarter of 2024, MediaAlpha reported:
- Revenue: $259.1 million, an increase of 247% year-over-year.
- Transaction Value: $451.8 million, an increase of 314% year-over-year.
- Net Income: $11.9 million, compared to a net loss of $(18.7) million in the same quarter of 2023.
- Adjusted EBITDA: $26.3 million, compared to $3.6 million in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $259.1 million | $74.6 million | +247% |
| Transaction Value | $451.8 million | $109.0 million | +314% |
| Net Income | $11.9 million | $(18.7) million | N/A |
| Adjusted EBITDA | $26.3 million | $3.6 million | +629% |
Key Business Metrics
In addition to overall financial performance, MediaAlpha has demonstrated strong operational metrics:
- Gross Margin: 15.1% in Q3 2024, compared to 16.5% in Q3 2023.
- Contribution Margin: 16.0% in Q3 2024, down from 20.2% in Q3 2023.
Transaction Value Breakdown
The company's Transaction Value is categorized into different verticals:
| Vertical | Q3 2024 Transaction Value | Q3 2023 Transaction Value | Change (%) |
|---|---|---|---|
| Property & Casualty Insurance | $387.5 million | $44.7 million | +768% |
| Health Insurance | $55.6 million | $51.2 million | +9% |
| Life Insurance | $6.3 million | $7.6 million | -17% |
| Other | $2.4 million | $5.5 million | -56% |
Cash Flow and Assets
As of September 30, 2024, MediaAlpha's cash flow and asset position are as follows:
- Cash and Cash Equivalents: $32.3 million, up from $17.3 million at the beginning of the year.
- Accounts Receivable: $126.8 million, compared to $53.8 million at the end of 2023.
- Total Assets: $236.1 million, compared to $153.9 million at the end of 2023.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $32.3 million | $17.3 million |
| Accounts Receivable | $126.8 million | $53.8 million |
| Total Assets | $236.1 million | $153.9 million |
MediaAlpha continues to position itself as a leader in the insurance customer acquisition space, leveraging its marketplace to drive significant growth and profitability.
A Who Owns MediaAlpha, Inc. (MAX)
Ownership Structure
As of 2024, MediaAlpha, Inc. (NYSE: MAX) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | Vanguard Group, Inc. | 14.5% |
| Institutional Investor | BlackRock, Inc. | 10.2% |
| Institutional Investor | Wellington Management Company, LLP | 8.7% |
| Insider | Steve Yi (CEO) | 5.4% |
| Insider | Ryan Kauffman (CFO) | 3.1% |
| Individual Investor | Other Retail Investors | 58.1% |
Stock Performance
MediaAlpha's stock performance has shown significant growth in 2024. The stock price has increased from $5.00 at the beginning of the year to approximately $12.50 as of October 2024, reflecting a year-to-date increase of 150%.
Recent Financial Performance
In the third quarter of 2024, MediaAlpha reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $259.1 million | $74.6 million |
| Net Income | $11.9 million | $(18.7) million |
| Adjusted EBITDA | $26.3 million | $3.6 million |
| Transaction Value | $451.8 million | $109.0 million |
Future Outlook
For the fourth quarter of 2024, MediaAlpha expects:
- Transaction Value between $470 million - $495 million.
- Revenue between $275 million - $295 million.
- Adjusted EBITDA between $29.5 million and $32.5 million.
These projections indicate a robust growth trajectory, driven primarily by the company's strong performance in the Property & Casualty insurance sector.
Insider Ownership
Insider ownership remains a critical aspect of MediaAlpha's governance. As of September 30, 2024, the following are the key insider holdings:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Steve Yi | CEO | 2.98 million |
| Ryan Kauffman | CFO | 1.25 million |
| Other Executives | Various | 1.5 million |
These figures indicate strong insider confidence in the company's future, as they hold a significant portion of shares. The total number of shares outstanding as of September 30, 2024, is 66.1 million, of which insiders own approximately 5.4%.
MediaAlpha, Inc. (MAX) Mission Statement
MediaAlpha, Inc. aims to be the leading programmatic customer acquisition platform for the insurance industry. The company connects insurance carriers with online shoppers, facilitating efficient customer acquisition through its proprietary technology. In 2023, MediaAlpha generated over 99 million consumer referrals and powered $1.2 billion in advertising spend across various insurance sectors.
Financial Performance Overview
In the third quarter of 2024, MediaAlpha reported significant growth in key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $259.1 million | $74.6 million | +247% |
| Transaction Value | $451.8 million | $109.0 million | +314% |
| Net Income | $11.9 million | $(18.7) million | Improvement |
| Adjusted EBITDA | $26.3 million | $3.6 million | +630% |
Transaction Value Breakdown
MediaAlpha categorizes its transaction value into different verticals. The following table illustrates the distribution of transaction value by vertical for Q3 2024:
| Vertical | Transaction Value (Q3 2024) | Percentage of Total Transaction Value |
|---|---|---|
| Property & Casualty Insurance | $387.5 million | 85.8% |
| Health Insurance | $55.6 million | 12.3% |
| Life Insurance | $6.3 million | 1.4% |
| Other | $2.4 million | 0.5% |
Financial Outlook
For the fourth quarter of 2024, MediaAlpha anticipates the following:
- Transaction Value between $470 million - $495 million, reflecting a year-over-year increase of approximately 192% at the midpoint.
- Revenue between $275 million - $295 million, representing a year-over-year increase of approximately 143% at the midpoint.
- Adjusted EBITDA between $29.5 million and $32.5 million, indicating a year-over-year increase of approximately 144% at the midpoint.
The company has positioned itself for continued growth in its Property & Casualty insurance vertical, expecting transaction values to remain stable or increase slightly compared to Q3 2024 levels, despite potential declines in the Health insurance vertical due to market headwinds.
Key Financial Metrics
The following table summarizes MediaAlpha's key financial metrics for the nine months ended September 30, 2024:
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue | $564.1 million | $271.0 million |
| Net Income | $14.8 million | $(53.3) million |
| Adjusted EBITDA | $59.4 million | $14.4 million |
| Cash and Cash Equivalents | $32.3 million | $15.2 million |
MediaAlpha continues to enhance its position as a trusted partner in customer acquisition within the insurance sector, leveraging advanced technology to drive growth and efficiency.
How MediaAlpha, Inc. (MAX) Works
Company Overview
MediaAlpha, Inc. operates as a programmatic customer acquisition platform primarily for the insurance industry. The company connects insurance carriers with consumers through its online marketplace, facilitating transactions across various insurance verticals including Property & Casualty, Health, and Life insurance.
Financial Performance
As of the third quarter of 2024, MediaAlpha reported significant growth in its financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $259.1 million | $74.6 million | +247% |
| Transaction Value | $451.8 million | $109.0 million | +314% |
| Net Income | $11.9 million | $(18.7) million | Improvement |
| Adjusted EBITDA | $26.3 million | $3.6 million | +631% |
Transaction Metrics
MediaAlpha's transaction values are categorized by verticals and platform models:
| Vertical | Q3 2024 Transaction Value | Q3 2023 Transaction Value | Percentage of Total Transaction Value (Q3 2024) |
|---|---|---|---|
| Property & Casualty | $387.5 million | $44.7 million | 85.8% |
| Health Insurance | $55.6 million | $51.2 million | 12.3% |
| Life Insurance | $6.3 million | $7.6 million | 1.4% |
| Other | $2.4 million | $5.5 million | 0.5% |
Cost Structure and Margins
The company's cost structure reflects a significant investment in generating revenue:
| Cost Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $219.9 million | $62.3 million |
| Sales and Marketing | $6.5 million | $6.1 million |
| Product Development | $5.3 million | $4.3 million |
| General and Administrative | $11.8 million | $16.6 million |
Future Outlook
For the fourth quarter of 2024, MediaAlpha anticipates continued growth, projecting:
- Transaction Value between $470 million - $495 million
- Revenue between $275 million - $295 million
- Adjusted EBITDA between $29.5 million and $32.5 million
Stock Performance and Shareholder Metrics
As of September 30, 2024, MediaAlpha's share metrics indicate a positive shift:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic Net Income per Share | $0.17 | $(0.29) |
| Diluted Net Income per Share | $0.17 | $(0.29) |
| Weighted Average Shares Outstanding (Basic) | 54,909,772 | 46,229,672 |
| Weighted Average Shares Outstanding (Diluted) | 54,909,772 | 46,229,672 |
Cash Flow Analysis
Cash flow from operating activities for the nine months ended September 30, 2024, was as follows:
| Cash Flow Type | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $31.3 million | $14.9 million |
| Net Cash Used in Investing Activities | $(0.6) million | $(0.1) million |
| Net Cash Used in Financing Activities | $(15.7) million | $(14.2) million |
Balance Sheet Highlights
As of September 30, 2024, MediaAlpha's balance sheet shows strong asset growth:
| Asset Type | 2024 | 2023 |
|---|---|---|
| Total Assets | $236.1 million | $153.9 million |
| Total Liabilities | $295.7 million | $248.4 million |
| Total Stockholders' Deficit | $(59.6) million | $(94.4) million |
How MediaAlpha, Inc. (MAX) Makes Money
Business Model Overview
MediaAlpha, Inc. operates as a programmatic customer acquisition platform, primarily serving the insurance industry. The company connects insurance carriers with online consumers through its proprietary technology, facilitating the transaction of consumer referrals.
Revenue Generation
MediaAlpha generates revenue through two primary transaction models: Open Marketplace and Private Marketplace.
- In the Open Marketplace, revenue is derived from fees paid by demand partners for consumer referrals sold, which directly correlates with transaction value.
- The Private Marketplace model involves platform fees charged to supply partners based on a percentage of the transaction value for consumer referrals.
Financial Performance
In the third quarter of 2024, MediaAlpha reported:
- Revenue: $259.1 million, a 247% increase year-over-year.
- Transaction Value: $451.8 million, a 314% increase year-over-year.
- Gross Margin: 15.1%, down from 16.5% in Q3 2023.
- Net Income: $11.9 million, compared to a net loss of $18.7 million in Q3 2023.
- Adjusted EBITDA: $26.3 million, up from $3.6 million in Q3 2023.
Segment Performance
Transaction value by vertical for Q3 2024 is as follows:
| Vertical | Transaction Value (in $ thousands) | Percentage of Total Transaction Value |
|---|---|---|
| Property & Casualty Insurance | $387,451 | 85.8% |
| Health Insurance | $55,615 | 12.3% |
| Life Insurance | $6,261 | 1.4% |
| Other | $2,448 | 0.5% |
Cost Structure
For Q3 2024, MediaAlpha's costs and operating expenses were as follows:
| Cost Category | Amount (in $ thousands) |
|---|---|
| Cost of Revenue | $219,907 |
| Sales and Marketing | $6,496 |
| Product Development | $5,328 |
| General and Administrative | $11,794 |
| Total Costs and Operating Expenses | $243,525 |
Outlook and Guidance
For the fourth quarter of 2024, MediaAlpha projects:
- Transaction Value: Between $470 million and $495 million, representing a 192% year-over-year increase at the midpoint.
- Revenue: Between $275 million and $295 million, representing a 143% year-over-year increase at the midpoint.
- Adjusted EBITDA: Between $29.5 million and $32.5 million, representing a 144% year-over-year increase at the midpoint.
Key Metrics
For the nine months ended September 30, 2024, the financial metrics are as follows:
| Metric | Value (in $ thousands) |
|---|---|
| Revenue | $564,056 |
| Net Income (Loss) | $14,817 |
| Adjusted EBITDA | $59,430 |
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Article updated on 8 Nov 2024
Resources:
- MediaAlpha, Inc. (MAX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MediaAlpha, Inc. (MAX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MediaAlpha, Inc. (MAX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.