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

MediaAlpha, Inc. (MAX - Free Report) has reported its financial performance for the quarter ending December 2024, showcasing significant growth. The company achieved revenue of $300.65 million for the quarter, which is a remarkable increase of 156.6% compared to the same quarter last year. Additionally, MediaAlpha recorded an earnings per share (EPS) of $0.08, a rebound from a loss of $0.05 a year prior.

The revenue figure of $300.65 million exceeded Wall Street's expectations by 4.43%, as the Zacks Consensus Estimate stood at $287.89 million. However, when it comes to the consensus EPS estimate, which was $0.24, MediaAlpha fell short, resulting in an EPS surprise of -66.67%.

While investors typically focus on these headline numbers—revenue and earnings—they often overlook critical underlying metrics that can provide deeper insight into a company’s performance. These key metrics can greatly affect both top- and bottom-line results. Therefore, a comparison of these metrics against year-over-year data and analyst estimates is essential for investors to gauge the likely price performance of a stock accurately.

In this regard, let’s examine how MediaAlpha performed this past quarter concerning the critical metrics that analysts closely watch:

• Transaction Value: $499.17 million, which slightly surpassed the average estimate of $488.07 million from two analysts.
• Transaction Value - Property & Casualty Insurance: $400.98 million, exceeding the average estimate of $388.75 million also based on two analysts.
• Transaction Value - Health Insurance: $90.31 million, falling just short of the average estimate of $91.34 million.
• Transaction Value - Life Insurance: $6.28 million, performing better than the average estimate of $5.81 million.
• Transaction Value - Other: $1.61 million, which was below the expected amount of $2.18 million from the two analysts.

Overall, MediaAlpha's stock has delivered a positive return of +3.9% over the past month, contrasting with a slight decline of -0.5% for the Zacks S&P 500 composite index. Currently, MediaAlpha holds a Zacks Rank #3 (Hold), suggesting that the stock may perform in line with the broader market in the near future.

MediaAlpha, Earnings, Metrics