MediaAlpha, Inc. (MAX) plunged 5.78% in after-hours trading on Monday following the company's fourth-quarter earnings release. While MediaAlpha's revenue grew an impressive 157% year-over-year to $300.65 million, beating estimates of $290.96 million, the company's earnings per share of $0.08 missed the consensus estimate of $0.21.
The mixed results were driven by diverging performances across MediaAlpha's verticals. The company's Property & Casualty (P&C) insurance vertical continued to be a standout, with Transaction Value surging 639% year-over-year to $401 million in Q4. This robust growth in P&C was offset by an 8% decline in Transaction Value for the Health insurance vertical.
For the first quarter of 2025, MediaAlpha expects Transaction Value to grow around 170% year-over-year, reflecting continued momentum in P&C. However, the company also anticipates a high-teens percentage decline in its Health vertical, weighing on overall growth. This guidance, combined with the Q4 earnings miss, appears to have contributed to the stock's after-hours sell-off.