MediaAlpha(MAX) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 revenue reached $300.6 million, a 157$864.7 million, a 123% increase compared to 2023[6] - Q1 2025 revenue guidance is projected between $225 million and$245 million, representing an 86% year-over-year increase at the midpoint[10] - Revenue for Q4 2024 reached $300.648 million, a significant increase from$117.174 million in Q4 2023, representing a growth of 156.5%[24] Transaction Value - Fourth quarter 2024 transaction value was $499.2 million, up 202$401 million, a 639% increase[5] - Full-year 2024 transaction value reached $1.5 billion, a 151$1.2 billion, a 325% increase[6] - Total Transaction Value for Q4 2024 was $499.169 million, up from$165.346 million in Q4 2023, marking a growth of 201.5%[28] - Open Marketplace transactions accounted for 59.0% of total Transaction Value in Q4 2024, down from 69.6% in Q4 2023[28] - Property & Casualty insurance represented 80.3% of total Transaction Value in Q4 2024, significantly up from 32.8% in Q4 2023[28] Profitability - Full-year 2024 net income improved to $22.1 million, compared to a net loss of$56.6 million in 2023[6] - Net income for the year ended December 31, 2024, was $22.118 million, compared to a net loss of$56.555 million in 2023, indicating a turnaround in profitability[26] - Net income for Q4 2024 was $7.3 million, compared to a net loss of$3.3 million in Q4 2023, marking a significant improvement[33] - Contribution for Q4 2024 was $51.516 million, compared to$25.110 million in Q4 2023, reflecting a year-over-year increase of 104.5%[30] Operating Performance - Adjusted EBITDA for full-year 2024 was $96.1 million, up from$27.1 million in 2023[6] - Adjusted EBITDA for Q4 2024 reached $36.7 million, up from$12.7 million in Q4 2023, indicating strong operational performance[33] - Adjusted EBITDA is a key measure used by the company to evaluate operating performance, although it is not presented in accordance with GAAP[31] Cash Flow and Expenses - Cash and cash equivalents at the end of Q4 2024 were $43.266 million, up from$17.271 million at the end of Q4 2023, showing a net increase of $25.995 million[26] - The company reported a net cash provided by operating activities of$45.872 million for the year ended December 31, 2024, compared to $20.231 million in 2023[26] - Total depreciation expense for 2024 was$0.3 million, down from $0.4 million in 2023[33] - The company incurred$1.2 million in transaction expenses for 2024, compared to $0.6 million in 2023, related to legal and accounting fees[34] Legal and Other Matters - The company recorded a$7.0 million reserve related to ongoing settlement discussions with the FTC[5] - Legal expenses for Q4 2024 were $8.9 million, significantly higher than$0.9 million in Q4 2023, primarily due to a $7.0 million loss reserve related to the FTC Matter[35] - Changes in TRA related liability resulted in a$7.0 million charge in Q4 2024, reflecting a remeasurement of the non-current portion of the liability[35] - The company recorded a one-time contract termination fee income of $1.7 million in 2024 from a supply partner that ceased operations[35] Consumer Engagement - MediaAlpha generated nearly 119 million consumer referrals in 2024, connecting insurance carriers with online shoppers[17]