Insurance customer acquisition platform MediaAlpha tops Q2 revenue estimates, resolves FTC inquiry
Overview
MediaAlpha Q2 revenue rises 41%, beating analyst expectations, per LSEG data
Adjusted EBITDA for Q2 misses analyst estimates, per LSEG data
Co resolves FTC inquiry, adds $33 mln reserve related to settlement
Outlook
MediaAlpha expects Q3 Transaction Value of $545 mln to $570 mln
Company sees Q3 revenue between $270 mln and $290 mln
MediaAlpha projects 35% growth in P&C transaction value in Q3
Company expects 40%-45% decline in Health transaction Valuv in Q3
Result Drivers
P&C GROWTH - 71% year-over-year transaction value growth in Property & Casualty insurance vertical driven by sustained demand from leading carriers and expanding partner base, per CEO Steve Yi
HEALTH DECLINE - Transaction value in Health insurance vertical decreased by 32% year-over-year, affecting overall contribution margin
FTC SETTLEMENT - Co resolved FTC inquiry, adding $33 mln reserve related to settlement, impacting net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $251.62 mln | $250.70 mln (7 Analysts) |
Q2 Net Income |
| -$22.53 mln |
|
Q2 Adjusted EBITDA | Miss | $24.50 mln | $26.20 mln (5 Analysts) |
Q2 Gross Margin |
| 15.0% |
|
Q2 Operating Income |
| -$20.04 mln |
|
Q2 Pretax Profit |
| -$22.22 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Mediaalpha Inc is $16.00, about 36.6% above its August 5 closing price of $10.14
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nGNX7Dh4MZ
