MediaAlpha, Inc. reported significant financial growth in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company achieved total revenue of $259.1 million for Q3 2024, marking a 247.5% increase from $74.6 million in Q3 2023. For the nine-month period, revenue reached $564.1 million, up from $271.0 million in the same period last year. This growth was primarily driven by a substantial increase in transaction value, particularly in the Property & Casualty (P&C) insurance sector, which saw a 585.9% rise in revenue to $219.0 million for Q3 2024, compared to $31.9 million in Q3 2023.
The company's income from operations also improved significantly, reporting $15.6 million for Q3 2024, a turnaround from an operating loss of $14.7 million in Q3 2023. Net income for the same quarter was $11.9 million, compared to a net loss of $18.7 million in the prior year. For the nine months ended September 30, 2024, MediaAlpha reported net income of $14.8 million, a stark contrast to a net loss of $53.3 million for the same period in 2023.
Total costs and operating expenses for Q3 2024 were $243.5 million, up from $89.3 million in Q3 2023, reflecting the company's increased operational scale. The contribution margin decreased to 16.0% from 20.2% year-over-year, indicating rising costs associated with revenue growth.
MediaAlpha's balance sheet showed total assets of $236.1 million as of September 30, 2024, up from $153.9 million at the end of 2023. Current assets increased significantly to $162.1 million, driven by a rise in cash and cash equivalents to $32.3 million from $17.3 million. However, total liabilities also rose to $295.7 million from $248.4 million, leading to a total stockholders' deficit of $(59.6) million, improved from $(94.4) million at the end of 2023.
Strategically, the company has faced challenges, including a letter from the FTC proposing injunctive and monetary relief, which could exceed its existing liquidity and financial resources. This situation may necessitate additional capital or debt, potentially impacting the company's financial condition. Despite these challenges, MediaAlpha believes it has sufficient revenue and cash on hand to meet its operational needs for at least the next twelve months.
Overall, MediaAlpha's performance in 2024 reflects a strong recovery and growth trajectory, particularly in the P&C insurance vertical, while navigating regulatory scrutiny and increased operational costs.
About MediaAlpha, Inc.
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