MediaAlpha(MAX)2025-04-30 20:13Revenue Performance - Revenue for the three months ended March 31, 2025, was 126.6 million for the same period in 2024[19] - Total revenue for the three months ended March 31, 2025, was 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 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 103.0 million, reflecting a 115.5% increase[19] - Cost of revenue for the three months ended March 31, 2025, was 102.9 million in 2024, with a percentage of revenue increasing to 84.2%[117] - General and administrative expenses rose by 57.8% to 5.2 million increase in legal costs[120] - Sales and marketing expenses decreased slightly 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 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 1.113 million for the same period in 2024[72] - The Company incurred a loss before income taxes of 1.464 million for the same period in 2024[65] - The accumulated deficit increased to 505.9 million at the end of 2024[17] Cash Flow and Liquidity - Cash and cash equivalents increased to 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 1.7 million in the same period of 2024[24] - Cash flows provided by operating activities increased 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 20 million as of March 31, 2024[33] - The company had two customers exceeding 10% of revenue with an aggregate value 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 1.1 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 151.4 million, a slight decrease from 2.7 million on the 2021 Term Loan Facility for the three months ended March 31, 2025, down from 890 thousand (23.1%) from 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]