MediaAlpha, Inc.

Ladies and gentlemen, thank you for standing by and welcome to MediaAlpha's Q2 2023 earnings call. All lines being placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. Denise Garcia, Investor Relations, you may begin your conference.

Thank you, Josh. After the market closed today, Media Alpha issued a press release and shareholder letter announcing results for the second quarter ended June 30th, 2023. These documents are available in the investor section of our website, and we will be referring to them on this call. Our discussion today will include forward-looking statements about our business and our outlook for future financial results, including our financial guidance for the third quarter of 2023, which are based on assumptions, forecasts, expectations, and information currently available to management. These forward-looking statements are subject to risks and uncertainties that could cause future results or events to differ materially from those reflected in those statements. Please refer to the company's SEC filings, including its annual report on Form 10-K and its quarterly reports on Form 10-Q, for a fuller explanation of those risks and uncertainties and the limits applicable to forward-looking statements. These follow-up statements are based on assumptions as of today, August 2, 2023, and the company undertakes no obligation to revise or update them. In addition, on today's call, we will be referring to certain actual and projected financial metrics with MediaAlpha that are presented on a non-GAAP basis, including adjusted EBITDA, which we present in order to supplement your understanding and assessment of our financial performance. Non-GAAP measures should not be considered as a substitute for or superior to financial measures calculated in accordance with GAAP. Reconciliation of these non-GAAP measures to the most directly comparable GAAP measures are included in our press release and shareholder letter issued today. Finally, I'd like to remind everyone that this call is being recorded and will be made available for replay via a link on the Investors section of the company's website at investors.medialpha.com. Now I'll turn the call over to Steve and Pat for a few introductory remarks before opening the call to your questions.

Thanks, Denise. Hi, everyone. Welcome to our second quarter earnings call. I'd like to make a few observations before turning the call over to our CFO, Pat Thompson, for his comments. Our second quarter results exceeded guidance due to stronger than anticipated growth in our health insurance vertical. Our health transaction value grew 10% year over year, driven by broad-based strength in both under 65 Medicare segments, resulting in better than expected margins and adjusted EBITDA. These trends have continued into the third quarter, and we expect Q3 health transaction value to grow year over year at a rate similar to what we saw in the second quarter, leading up to the all-important annual and open enrollment periods for Medicare and under-65 plans, respectively. Q2 results in our P&C insurance verticals were in line with our expectations as our largest P&C carrier partner sharply reduced spend in our marketplace due to continued underwriting profitability concerns. We're projecting this major carrier spend to remain depressed through the end of the year, and as a result, we expect P&C transaction value in Q3 to be lower than what we saw in Q2. Taking a step back, I remain pleased by our resiliency through this historic P&C market downturn. Due to our capital efficient marketplace model, diversified industry vertical exposure, and most importantly, the extraordinary dedication of our team. we've been able to generate a positive adjusted EBITDA and free cash flow through the entirety of this hard market cycle. Looking ahead, we believe these attributes will lead to strong top and bottom line growth once our P&C carrier partners resume normal levels of marketing spend coming out of the hard market. With that, I'll turn the call over to Pat. Thanks, Steve.