MediaAlpha Analysts Increase Their Forecasts After Upbeat Results

MediaAlpha, Inc. NAX reported upbeat results for its fourth quarter on Tuesday.

MediaAlpha posted quarterly GAAP loss of 5 cents per share, compared to market estimates of 18 cents per share, according to data from Benzinga Pro. The company’s quarterly sales came in at $117.17 million versus estimates of $111.52 million.

“Our fourth quarter results exceeded expectations, driven primarily by improving conditions in our Property & Casualty (P&C) insurance vertical,” said MediaAlpha co-founder and CEO Steve Yi. “While our P&C vertical has been challenged by difficult market conditions for the past several years, we are seeing the market turn and expect first quarter Transaction Value to nearly double sequentially. We believe our growth will accelerate as more auto insurance carriers restore profitability and increase their marketing investments, driving strong results for MediaAlpha this year and beyond.”

For the first quarter of 2024, MediaAlpha said it sees revenue between $105 million and $115 million, representing a 1% year-over-year decline at the midpoint of the guidance range. The company expects adjusted EBITDA between $9.5 million and $11.5 million.

MediaAlpha shares gained 22.7% to trade at $19.38 on Wednesday.

These analysts made changes to their price targets on MediaAlpha after the company reported quarterly results.

• Canaccord Genuity raised the price target on MediaAlpha from $18 to $22. Canaccord Genuity analyst Michael Graham maintained a Buy rating.
• RBC Capital increased the price target on MediaAlpha from $12 to $18. RBC Capital analyst Ben Hendrix maintained an Outperform rating.

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