MediaAlpha Q2 revenue beats analyst estimates

Overview

• US insurance ad platform's Q2 revenue rose 26% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q2 beat analyst expectations

• Company repurchased $20 mln of stock in Q2, $41 mln in first half

Outlook

• MediaAlpha sees Q3 revenue between $330 mln and $355 mln

• Company expects Q3 adjusted EBITDA between $32 mln and $35 mln

• MediaAlpha expects full-year free cash flow between $90 mln and $100 mln

Result Drivers

• CARRIER ADVERTISING SPEND - Co said more carrier partners increased advertising spend and engagement in its marketplace, per CEO Steve Yi

• DIGITAL AD SHIFT - Co cited continued shift to digital advertising and migration of commission dollars to advertising spend as supporting growth

• PROPERTY CASUALTY STRENGTH - Co said Q3 outlook reflects continued strength in its Property Casualty insurance vertical driven by carrier growth investment and share gains

Company press release: ID:nGNX4CVSV

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Mediaalpha Inc is $11.00, about 20.2% below its July 28 closing price of $13.79

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 28 - Omnicom tops quarterly revenue estimates on strong ad demand

• July 29 - Verisk Q2 revenue slightly beats estimates on higher underwriting pricing

• July 29 - Insurer Lemonade Inc's Q2 revenue rises on premium growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)