Investor Presentation April 2025 1 Disclaimer Forward-looking statements and other information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "be ...

Core Insights - MediaAlpha, Inc. reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.17 per share, compared to a loss of $0.02 per share a year ago, representing an earnings surprise of -11.76% [1] - The company posted revenues of $264.31 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 11.55%, and showing significant growth from year-ago revenues of $126.65 million [2] - MediaAlpha shares have declined approximately 22.5% since the beginning of the year, contrasting with the S&P 500's decline of -5.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $229.86 million, and for the current fiscal year, it is $0.65 on revenues of $1.03 billion [7] - The estimate revisions trend for MediaAlpha is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Technology Services industry, to which MediaAlpha belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - MeridianLink, another company in the same industry, is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year change of +83.3%, with revenues anticipated to be $80.95 million, up 4% from the previous year [9][10]

Financial Data and Key Metrics Changes - The company reported a record first quarter with transaction value reaching $473 million, up 116% year over year, driven by a 200% increase in the P&C vertical [8][10] - Adjusted EBITDA for Q1 doubled year over year to $29.4 million, representing 67% of contribution, up from 52% in the prior year [9][12] - Cash flow was $20 million, with a net debt to adjusted EBITDA ratio of less than 1x, indicating strong financial health [12] Business Line Data and Key Metrics Changes - The P&C insurance vertical saw significant growth, with transaction value up sequentially as several carriers increased marketing investments [8][10] - The Health vertical's transaction value decreased by 17% year over year, aligning with expectations, as the company shifts focus to Medicare Advantage [8][11] - The company plans to exit the Travel vertical by the end of Q2, which contributed approximately $1 million of transaction value in Q1 [10] Market Data and Key Metrics Changes - The company anticipates continued strength in P&C carrier marketing investments, expecting transaction value levels to grow approximately 65% to 75% year over year [11] - In the Health vertical, transaction value is expected to decline by 25% to 30% year over year, with Medicare expected to account for over 40% of the Health vertical's transaction value [11] Company Strategy and Development Direction - The company is strategically scaling back certain areas of its Health business to focus on the growing Medicare Advantage market, where it believes it has a strong competitive position [6][11] - The management remains optimistic about the auto insurance marketplace, citing strong underlying profitability and a shift towards direct-to-consumer distribution [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the near-term outlook for auto insurance advertising spend, despite potential pressures from automotive tariffs [6][20] - The company is committed to resolving ongoing FTC matters, having increased its reserve related to this issue to $12 million [6][12] Other Important Information - The company recognized a $13.4 million charge to write off certain intangible assets from the DHT acquisition, indicating a strategic realignment [9][10] - The Medicare Advantage market is viewed as having long-term growth potential, driven by an increasing senior population opting for these plans [42][93] Q&A Session Summary Question: Insights on carrier spend in the second half of the year - Management believes the auto insurance market is well-positioned for sustained growth, with carriers showing strong profitability and readiness to invest in customer acquisition [16][20] Question: Dynamics across open and private marketplaces - The private marketplace is designed for large publishers and advertisers, while the open exchange is expected to see more transactions as the recovery gains momentum [21][66] Question: Pricing changes in the P&C market - Management noted that strong demand from carriers led to increased budgets and spending as the quarter progressed, indicating a recovery from initial conservatism [30][31] Question: Scaling back the under 65 business - The company clarified that scaling back does not mean exiting the business but rather a strategic adjustment to focus on more profitable areas [38][39] Question: Medicare Advantage market health - The Medicare Advantage market is currently in a hard market cycle, but long-term growth is expected due to increasing enrollment among seniors [41][93] Question: Contribution margin ratio decline - The decline in contribution margin is attributed to a mix of factors, including the shift towards P&C becoming a larger part of the business and changes in publisher dynamics [48][49] Question: Impact of automotive tariffs on Q2 guidance - Management indicated that while tariffs could impact profitability in the latter part of the year, the guidance for Q2 remains confident and robust [58][59] Question: Timeline for resolution of legal inquiries - Management stated that it is difficult to comment on the timeline for the ongoing FTC discussions, but updates will be provided as necessary [60][63]

Financial Data and Key Metrics Changes - The company reported a record first quarter financial result with transaction value reaching $473 million, up 116% year over year, driven by a 200% year over year growth in the P&C vertical [7][4] - Adjusted EBITDA for Q1 doubled year over year to $29.4 million, representing 67% of contribution, up from 52% in the prior year [8][9] - Cash flow was $20 million, with a net debt to adjusted EBITDA ratio of less than 1x, indicating strong financial health [11] Business Line Data and Key Metrics Changes - The P&C insurance vertical saw significant growth, with transaction value up sequentially as several carriers increased marketing investments [7][4] - The Health vertical's transaction value was down 17% year over year, in line with expectations, as the company scales back certain areas of its under 65 business [7][9] - The company plans to exit the Travel vertical by the end of Q2, which contributed approximately $1 million of transaction value in Q1 [9] Market Data and Key Metrics Changes - The company expects P&C transaction value levels to grow approximately 65% to 75% year over year in Q2, while Health vertical transaction value is expected to decline by 25% to 30% year over year [10][9] - Medicare is anticipated to account for over 40% of the Health vertical's transaction value for the quarter, reflecting a strategic shift towards Medicare Advantage [10] Company Strategy and Development Direction - The company is focusing on scaling back certain areas of its under 65 business to concentrate on the growing Medicare Advantage market, where it believes it has a strong competitive position [5][10] - The management remains optimistic about the auto insurance advertising spend, despite potential pressures from automotive tariffs, indicating a commitment to delivering high returns on advertising spend [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the auto insurance marketplace's sustained growth, citing strong underlying profitability among carriers [15][16] - The potential impact of automotive tariffs is expected to be moderate, with carriers well-positioned to react quickly to any profitability concerns [19][18] - The Medicare Advantage market is viewed as having long-term growth potential, driven by an increasing senior population opting for these plans [40][90] Other Important Information - The company increased its reserve related to the FTC matter by $5 million, bringing the total reserve to $12 million at the end of the quarter [5][6] - A write-off of $13.4 million was recognized for certain intangible assets acquired as part of the DHT acquisition, indicating a strategic realignment [9][77] Q&A Session Summary Question: Insights on carrier spend in the second half of the year - Management believes the auto insurance marketplace remains well-positioned for growth, with carriers showing strong profitability and readiness to invest in customer acquisition [15][16] Question: Dynamics across open and private marketplaces - The private marketplace is designed for large publishers and advertisers, while the open exchange is expected to see more transactions as the recovery gains momentum [20][22] Question: Pricing changes in the P&C market - The increase in carrier demand and budget access in March was attributed to a shift from initial conservatism at the start of the year [28][29] Question: Scaling back the under 65 business - The company clarified that scaling back does not mean exiting the business but rather a partial step back to focus on Medicare Advantage [36][37] Question: Medicare Advantage market health - The Medicare Advantage market is currently in a hard market cycle, but long-term growth is expected due to increasing enrollment among seniors [40][90] Question: Contribution margin ratio decline - The decline in contribution margin ratio is attributed to a mix of P&C becoming a larger percentage of the business and changes in publisher dynamics [46][48] Question: Impact of tariffs on Q2 guidance - The guidance for Q2 reflects a high degree of confidence, with the potential impact of tariffs expected to be relatively muted [57][58] Question: Timeline for resolution of legal inquiries - Management indicated that it is difficult to comment on the timeline for resolution while actively engaged in discussions with the FTC [59][60] Question: Investments and growth strategy - The company runs lean and is prepared to adjust investments based on market conditions while maintaining a focus on growth opportunities [83][85]

Revenue Performance - Revenue for the three months ended March 31, 2025, was $264.3 million, a significant increase of 108.6% compared to $126.6 million for the same period in 2024[19] - Total revenue for the three months ended March 31, 2025, was $264.3 million, a significant increase from $126.6 million for the same period in 2024, representing a year-over-year growth of approximately 108.6%[42] - The company reported $223.2 million in revenue from property & casualty insurance for the three months ended March 31, 2025, compared to $69.2 million in the same period of 2024, indicating a growth of approximately 222.5%[42] - Revenue for the three months ended March 31, 2025, was $264.3 million, a 108.7% increase from $126.6 million in the same period of 2024[112] - Revenue from insurance verticals accounted for 99.4% and 98.0% of total revenue for the three months ended March 31, 2025 and 2024, respectively[174] Cost and Expenses - Cost of revenue for the same period was $222.7 million, up from $103.0 million, reflecting a 115.5% increase[19] - Cost of revenue for the three months ended March 31, 2025, was $222.7 million, up 116.2% from $102.9 million in 2024, with a percentage of revenue increasing to 84.2%[117] - General and administrative expenses rose by 57.8% to $17.6 million, primarily due to a $5.2 million increase in legal costs[120] - Sales and marketing expenses decreased slightly to $5.6 million, accounting for 2.1% of total revenue[118] - Product development expenses increased by 12.0% to $4.9 million, representing 1.8% of total revenue[119] Net Loss and Financial Position - Net loss for the three months ended March 31, 2025, was $2.3 million, compared to a net loss of $1.5 million in the same period of 2024[19] - The net loss attributable to MediaAlpha, Inc. for the three months ended March 31, 2025, was $1.948 million, compared to a net loss of $1.113 million for the same period in 2024[72] - The Company incurred a loss before income taxes of $2.383 million for the three months ended March 31, 2025, compared to a loss of $1.464 million for the same period in 2024[65] - The accumulated deficit increased to $507.9 million as of March 31, 2025, from $505.9 million at the end of 2024[17] Cash Flow and Liquidity - Cash and cash equivalents increased to $63.6 million as of March 31, 2025, from $43.3 million at the end of 2024, representing a 47.0% increase[17] - The company reported a net cash provided by operating activities of $23.7 million for the three months ended March 31, 2025, compared to $1.7 million in the same period of 2024[24] - Cash flows provided by operating activities increased to $23.7 million in Q1 2025, compared to $1.7 million in Q1 2024, marking a growth of 1,312.5%[147] - The company may need to seek additional capital or incur debt to address potential FTC claims, which could exceed existing liquidity[144] Customer Concentration - As of March 31, 2025, the company had 2 customers contributing 46% of total revenue, with an aggregate value of $122 million, compared to 1 customer contributing 16% of total revenue with an aggregate value of $20 million as of March 31, 2024[33] - The company had two customers exceeding 10% of revenue with an aggregate value of $122 million, representing 46% of total revenue for the three months ended March 31, 2025[167] Legal and Regulatory Matters - The company is subject to ongoing legal proceedings, including a civil investigative demand from the FTC regarding compliance with advertising and consumer data practices[52] - The Company established a reserve of $12.0 million as of March 31, 2025, related to the FTC matter, which is recorded within other long-term liabilities[57] - Legal fees incurred by the Company in connection with the FTC matter were $1.9 million for the three months ended March 31, 2025, compared to $1.1 million for the same period in 2024[58] - The company believes that a loss related to the FTC matter is probable, with potential costs exceeding existing liquidity and financial resources[55] Shareholder Information - The weighted average shares of Class A common stock outstanding increased to 55.6 million for the three months ended March 31, 2025, from 48.6 million in the same period of 2024[19] - The weighted-average shares of Class A common stock outstanding for the three months ended March 31, 2025, were 55,632,321, an increase from 48,574,448 in the same period of 2024[72] - The company purchased 67,801 shares at an average price of $12.78 during February 2025[176] Debt and Interest - As of March 31, 2025, the total long-term debt was $151.4 million, a slight decrease from $153.6 million as of December 31, 2024[46] - The company incurred interest expense of $2.7 million on the 2021 Term Loan Facility for the three months ended March 31, 2025, down from $3.6 million for the same period in 2024[46] - Interest expense decreased by $890 thousand (23.1%) from $3,845 thousand in Q1 2024 to $2,955 thousand in Q1 2025, driven by lower interest rates and outstanding balances[125][126] Future Outlook - The company anticipates continued strong momentum in Property & Casualty insurance despite potential upward pressure on claims costs[113] - The company plans to exit the Travel vertical in Q2 2025 to focus resources on core insurance verticals[116] - The company is currently evaluating the impact of new accounting standards on its disclosures, with significant changes expected to be effective after December 15, 2026[39][41] Miscellaneous - The company has deep, custom integrations with partners representing the majority of its Transaction Value, optimizing customer acquisition spend and revenue[81] - The P&C insurance vertical is expected to continue benefiting from increasing customer acquisition spending as market conditions improve[87] - The company supports $1.7 billion in Transaction Value across its platform from property & casualty, health, and life insurance verticals over the twelve-month period ended March 31, 2025[78] - 99% of total insurance Transaction Value executed on the platform came from Demand Partner relationships established during 2024[88] - A hypothetical 1.0% increase or decrease in interest rates would have resulted in a $0.4 million impact on interest expense for the three months ended March 31, 2025[163] - The company has not experienced any losses in cash accounts that exceed amounts insured by the Federal Deposit Insurance Corporation[164] - There were no changes in internal control over financial reporting that materially affected the company during the three months ended March 31, 2025[169]

Financial Performance - Revenue for Q1 2025 was $264.3 million, a 109% increase year over year[5] - Net loss for Q1 2025 was $(2.3) million, compared to a net loss of $(1.5) million in Q1 2024[5] - Adjusted EBITDA for Q1 2025 was $29.4 million, an increase from $14.4 million in Q1 2024[5] - Revenue guidance for Q2 2025 is projected between $235 million and $255 million, representing a 37% year-over-year increase at the midpoint[9] - Adjusted EBITDA for Q2 2025 is expected to be between $25.0 million and $27.0 million, a 39% year-over-year increase at the midpoint[9] - For the three months ended March 31, 2025, the company reported a net loss of $2.334 million, compared to a net loss of $1.491 million for the same period in 2024[30] - Adjusted EBITDA for the three months ended March 31, 2025, was $29.376 million, up from $14.419 million in 2024, reflecting better underlying business trends[30] Transaction Metrics - Transaction Value reached $473.1 million, up 116% year over year, with Property & Casualty segment growing 200% to $407 million[5] - Total Transaction Value for the three months ended March 31, 2025, was $473.101 million, a substantial increase from $219.106 million in 2024[25] - The Open Marketplace transactions accounted for 54.6% of total Transaction Value in Q1 2025, while Private Marketplace transactions made up 45.4%[25] - The Property & Casualty insurance vertical represented 86.0% of total Transaction Value, significantly increasing from 61.8% in the previous year[25] - The company expects Transaction Value in the Property & Casualty vertical to grow 65% - 75% year over year in Q2 2025[6] Margins and Efficiency - Gross margin for Q1 2025 was 15.8%, down from 18.7% in Q1 2024[5] - Contribution Margin for Q1 2025 was 16.6%, compared to 21.9% in Q1 2024[5] - Contribution for the same period rose to $43.982 million, compared to $27.676 million in 2024, indicating improved operational efficiency[27] Cash Flow and Reserves - Net cash provided by operating activities increased significantly to $23.701 million from $1.678 million year-over-year[23] - The company ended the period with cash and cash equivalents of $63.561 million, up from $14.471 million at the end of the same period in 2024[23] - The company recorded an additional $5.0 million reserve related to FTC settlement discussions, totaling $12.0 million as of March 31, 2025[5] - Legal expenses for the three months ended March 31, 2025, totaled $6.879 million, primarily due to a $5.0 million increase in the loss reserve related to the FTC Matter[32] Other Financial Adjustments - The company incurred a write-off of intangible assets amounting to $13.416 million related to the acquisition of Customer Helper Team, LLC[31]

Core Insights - MediaAlpha, Inc. reported a record first quarter for 2025, exceeding expectations with significant revenue and transaction value growth, particularly in the Property & Casualty (P&C) insurance vertical [1][2] - The company achieved a revenue of $264.3 million, marking a 109% increase year over year, and a transaction value of $473.1 million, which is a 116% increase year over year [6][24] - Despite the strong performance, MediaAlpha reported a net loss of $(2.3) million for the quarter, compared to a net loss of $(1.5) million in the same period last year [6][20] Financial Performance - Revenue for the first quarter of 2025 was $264.3 million, up from $126.6 million in Q1 2024, reflecting a 109% year-over-year increase [6][20] - Transaction value reached $473.1 million, a 116% increase from $219.1 million in Q1 2024, with P&C insurance transaction value alone growing 200% to $407 million [6][26] - Adjusted EBITDA for the quarter was $29.4 million, compared to $14.4 million in Q1 2024, indicating strong operational performance [6][32] Business Outlook - For Q2 2025, MediaAlpha expects transaction value in the P&C insurance vertical to grow between 65% and 75% year over year, while anticipating a decline of 25% to 30% in the Health insurance vertical [4][7] - The company plans to exit the Travel segment by the end of Q2 2025, which is expected to have an immaterial impact on overall results [4] - Guidance for Q2 2025 includes projected revenue between $235 million and $255 million, representing a 37% year-over-year increase [7] Operational Metrics - The gross margin for Q1 2025 was 15.8%, down from 18.7% in Q1 2024, while the contribution margin decreased to 16.6% from 21.9% [6][29] - The company recorded a total of 119 million consumer referrals in 2024, showcasing its extensive partner network and operational scale [15] - MediaAlpha's platform facilitated $1.7 billion in advertising spend across various insurance sectors over the past year [15]

Highlights FL-001: 69.5% Fe at 81% recovery from 59.7% 6mm fraction sample (1500,2500,7500 Guass) FL-002: 66.9% Fe at 73% recovery from 59.7% 6mm fraction sample (1500, 2500,7500 Guass) FL-003: 68.7% Fe at 78% recovery from 64.9% 2mm fraction sample (1500,2500,7500 Guass) FL-004: 61.8% Fe at 76% recovery from 57.5% 12mm fraction sample (2500,7500 Guass) FL-005: 60.2% Fe at 78% recovery from 46.2% 6mm faction sample (1500,2500,7500 Guass) FL-006: 59.3% Fe at 67% recovery from 47.8% 2mm fraction sample (1500, ...

Core Insights - March home sales experienced a significant increase of 23.0% compared to February, marking the largest month-over-month increase since March 2023, although sales were down 1.4% compared to March 2024 [1][8] - Active inventory rose by 35.5% year-over-year across 50 metro areas surveyed, indicating a growing supply of homes available for sale [2][18] - The median sales price in March reached $435,000, which is an increase of $8,000 (1.8%) from February and $15,000 (3.5%) from March 2024 [4][12] Sales and Inventory - The number of homes for sale increased by 8.0% from February and was 35.5% higher than in March 2024, driven by a 29.8% rise in new listings compared to February [3][18] - Washington D.C. saw the largest month-over-month increase in active listings, up 25.3% from February [5] New Listings - Newly listed homes in March 2025 were up 7.9% compared to March 2024 and up 29.8% compared to February 2025 [6] - The markets with the largest year-over-year increases in new listings included Las Vegas, NV (+28.0%), Nashville, TN (+26.5%), and Manchester, NH (+26.3%) [7] Closed Transactions - Overall home sales were down 1.4% compared to March 2024 but up 23.0% from February 2025 [8] - The markets with the largest year-over-year decreases in sales included Bozeman, MT (-11.9%), New Orleans, LA (-11.7%), and Atlanta, GA (-9.5%) [11] Pricing Metrics - Buyers paid an average of 99% of the asking price in March, consistent with previous months [9][14] - The average days on market for homes sold was 44 days, down from 51 days in February but up from 39 days in March 2024 [9][16] Months' Supply of Inventory - The months' supply of inventory was 2.3, up from 1.7 in March 2024 but down from 2.7 in February 2025 [18] - Markets with the lowest months' supply of inventory included Manchester, NH (0.7), Milwaukee, WI (0.9), and Seattle, WA (0.9) [19]

Core Insights - DEWALT is focused on engineering products that enhance professional carpentry workflows, emphasizing precision and performance throughout the process [1] Product Launches - DEWALT introduced the 20V MAX* XR® 10-In. Double Bevel Fixed Miter Saw, which is the most powerful compact miter saw in its category, capable of making up to 434 cuts in 3 ¼-In. MDF Base Molding and capturing up to 97% of dust during use [4][6] - The 20V MAX* XR® 12-In. Double Bevel Sliding Miter Saw features the largest cut capacity in DEWALT's 20V Max* cordless miter saw lineup, capable of making up to 371 cuts in 3 ¼-In. MDF Base Molding and 153 cuts in pressure treated 4-In. X 4-In. timber [4][6] - New drill models include the 20V MAX* XR® Brushless Cordless 1/2-In. Drill/Driver and Hammer Drill, both equipped with the DEWALT ANTI-ROTATION System for enhanced safety [4] Measurement and Layout Tools - DEWALT launched 200-Ft. Laser Distance Measurers with an accuracy of ±1/16-In. at 32-Ft., available in lithium-ion and alkaline models [4] - A new lineup of chalk reels and kits was introduced for precise layout applications, available in various configurations [4] Company Background - DEWALT, a brand under Stanley Black & Decker, has been a leader in jobsite solutions for over 100 years, focusing on tools and technologies that enhance safety and productivity [7] - Stanley Black & Decker, founded in 1843, operates globally with approximately 48,500 employees, producing a wide range of tools and products for builders, tradespeople, and DIY enthusiasts [8]