MediaAlpha Inc (NYSE:MAX) stock rose over 5.4% on 12th March, 2021 (as of 10:36:37 UTC-5; Source: Google finance) after the company posted better than expected topline results for the fourth quarter of FY 20. The company had reported the adjusted revenue growth of 51 percent to $190.2 million in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $164.07 million. The company has reported Net income of $(13.2) million, as compared to $10.4 million in the fourth quarter of 2019; and Adjusted EBITDA of $18.2 million, compared to Adjusted EBITDA of $13.9 million in the fourth quarter of 2019.
Moreover, for the fourth quarter of 2020, the Transaction Value was of $256.9 million, which represents an increase of 51% year-over-year. The company posted gross margin of 13.9%, as compared to 16.1% from the same period in 2019 and Contribution Margin of 16.2%, as compared to 17.0% from the same period in 2019.
Meanwhile, Health insurance vertical posted record-breaking performance, driven by increased demand from carriers and brokers during the strongest Open Enrollment Period and Annual Enrollment Period we’ve seen. The Property & Casualty insurance vertical also continued to dominate the industry, as key carriers actually increased their budgets with the company in what has historically been a seasonally soft quarter.
For the first quarter of 2021, the company currently expects Transaction Value to be in the range $250 – $260 million, representing 54% year-over-year growth at the midpoint of the guidance range. Q1 2021, the company expects the revenue to be between $170 – $175 million, representing 44% year-over-year growth at the midpoint of the guidance range, Contribution to be between $26 – $28 million, representing 37% year-over-year growth at the midpoint of the guidance range and Adjusted EBITDA to be between $16 – $17 million, representing 30% year-over-year growth at the midpoint of the guidance range.
For the full year 2021, the company currently expects the transaction Value to be between $1,000 – $1,050 million, representing 26% year-over-year growth at the midpoint of the guidance range. 2021 revenue to be between $700 – $740 million, representing 23% year-over-year growth at the midpoint of the guidance range, Contribution to be between $108 – $117 million, representing 21% year-over-year growth at the midpoint of the guidance range and Adjusted EBITDA to be between $64 – $66 million, representing 12% year-over-year growth at the midpoint of the guidance range.