MediaAlpha Inc. (MAX) Reports Q4 Revenues Beat; Offers FY21 Revenues Mid-Point Guidance Above Consensus, 1Q Revenues Outlook Below Consensus

MediaAlpha Inc. (NYSE: MAX) reported Q4 EPS of $, versus ($0.03) reported last year. Revenue for the quarter came in at $190.2 million versus the consensus estimate of $164.05 million.

Fourth Quarter 2020 Financial Results

• Revenue of $190.2 million, an increase of 51% year-over-year;
• Transaction Value of $256.9 million, an increase of 51% year-over-year;
• Gross margin of 13.9%, as compared to 16.1% from the same period in 2019;
• Contribution Margin(1) of 16.2%, as compared to 17.0% from the same period in 2019;
• Net income was $(13.2) million, as compared to $10.4 million in the fourth quarter of 2019; and
• Adjusted EBITDA(1) was $18.2 million, compared to Adjusted EBITDA of $13.9 million in the fourth quarter of 2019

“The resilience of our team amidst the challenges we all faced in 2020 was truly inspiring, and it was a key component of our success in Q4 and the year overall,” said Steve Yi, MediaAlpha Co-founder and CEO. “Our Health insurance vertical delivered record-breaking performance, driven by increased demand from carriers and brokers during the strongest Open Enrollment Period and Annual Enrollment Period we’ve seen. Our Property & Casualty insurance vertical also continued to dominate the industry, as key carriers actually increased their budgets with us in what has historically been a seasonally soft quarter. We enter 2021 energized as to what we can accomplish.”

GUIDANCE:

MediaAlpha Inc. sees Q1 2021 revenue of $170-175 million, versus the consensus of $176.45 million.

MediaAlpha Inc. sees FY2021 revenue of $700-740 million, versus the consensus of $712.28 million.

For earnings history and earnings-related data on MediaAlpha Inc. (MAX) click here.

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