MediaAlpha (MAX) Q4 Earnings: Analyzing Key Metrics Against Estimates

MediaAlpha, Inc. (MAX - Free Report) announced its earnings for the fourth quarter of 2024, showcasing impressive growth in both revenue and net earnings. The company reported a revenue of $300.65 million during this quarter, marking a substantial year-over-year increase of 156.6%. In terms of earnings per share (EPS), MediaAlpha reported $0.08, a notable improvement from - $0.05 in the same quarter last year.

Notably, the reported revenue surpassed Wall Street expectations, showing a positive surprise of 4.43% over the Zacks Consensus Estimate, which stood at $287.89 million. However, the EPS figure fell short of the average consensus estimate of $0.24, reflecting a 66.67% negative surprise.

While the top and bottom line figures are significant, investors often look deeper into key metrics to understand a company's core performance. These metrics provide insights into how well the business is functioning and can highlight trends that might not be immediately obvious from the headline figures.

Here’s a breakdown of how MediaAlpha performed in the recent quarter according to key metrics closely monitored by Wall Street analysts:

• Transaction Value: The company recorded a transaction value of $499.17 million, beating the average estimate of $488.07 million as provided by two analysts.
• Transaction Value - Property & Casualty Insurance: This segment generated $400.98 million, exceeding the estimate of $388.75 million from two analysts.
• Transaction Value - Other: Here, MediaAlpha posted $1.61 million against the estimate of $2.18 million.
• Transaction Value - Life Insurance: The reported amount was $6.28 million, which was better than the estimate of $5.81 million.
• Transaction Value - Health Insurance: This segment's transaction value was $90.31 million, slightly lower than the estimate of $91.34 million.

Investing performance also indicates optimism around MediaAlpha, with shares returning 3.9% over the past month, contrasting with a 0.5% decline in the Zacks S&P 500 composite. Currently, the stock holds a Zacks Rank of 3 (Hold), suggesting that it could continue to perform in line with the broader market moving forward.

Earnings, Finance, Stocks