MediaAlpha, Inc.

Thank you for standing by. My name is Cass, and I will be your conference operator today. At this time, I would like to welcome everyone to the Media Alpha Inc. Third Quarter 2024 Earnings Call. All lines have been placed on you 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, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I would now like to turn the call over to Alex Liloia. Please go ahead.

Thanks, Kath. Good afternoon, and thank you for joining us. I'm here with CEO Steve Yee and CFO Pat Thompson. On today's call, we'll make forward-looking statements relating to our business and outlook for future financial results, including our financial guidance for the fourth quarter of 2024. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. please refer to our SEC filings, including our annual report on Form 10-K and quarterly reports on Form 10-Q, for a fuller explanation of those risks and uncertainties and the limits applicable to forward-looking statements. All the forward-looking statements we make on this call reflect our assumptions and beliefs as of today, and we disclaim any obligation to update such statements, except as required by law. Today's discussion will include non-GAAP financial measures, which are not a substitute for GAAP results. Reconciliations of these non-GAAP financial measures to the corresponding GAAP measures can be found in our press release and shareholder letter issued today, which are available on the Investor Relations section of our website. I'll now turn the call over to Steve.

Thanks, Alex. Hi, everyone. Thank you for joining us. Our performance in the third quarter set new high watermarks across all of our key metrics. Our transaction value and adjusted EBITDA both reached record levels and exceeded the high end of our guidance. Before turning the call over to our CFO, Pat Thompson, I'd like to remind you of a few highlights of our business model and review some key drivers of our third quarter results. We operate the largest insurance customer acquisition media marketplace. with strong long-term partnerships not easily reputable by competitors. Our media marketplace enables leading insurance carriers to reach millions of high-intent insurance shoppers through our partnerships with hundreds of insurance websites and apps. The reach and transparency of our marketplace is unmatched, allowing carriers to scale their direct-to-consumer marketing investments rapidly and efficiently. This marketplace model is a key differentiator and competitive advantage that has established us as a growth partner of choice among carriers and brokers and underpins our ongoing success. For the third quarter, our results were primarily driven by momentum in our property and casualty vertical, as auto insurance underwriting profitability continued to improve. On the supply side, a highlight in the quarter was executing a multi-year extension with Insurify. one of our largest and longest-standing partners. We believe this agreement reflects our market leadership position, and we continue to evaluate strategic opportunities to further expand and deepen our supply partnerships. On the demand side, we see plenty of headroom for further market share and revenue growth as additional auto insurance carriers reach target profitability, return to growth mode, and increase their investments in online direct customer acquisitions. In health insurance, we're entering our seasonally strongest quarter, driven by annual Medicare and ACA enrollment periods. Notwithstanding some of the transitory headwinds in Medicare, we believe the investments we've made in our partner network position us well over the long term. Finally, I'd like to provide some context on the upcoming TCPA one-to-one consent rules affecting our broader industry that will take effect in January of 2025. These rules require sellers to obtain specific consent from consumers before contacting them using an automated dialing system or pre-recorded or artificial voice system. While this change is expected to meaningfully limit the volume of shared leads sold, we see this as an extremely positive development for consumers and our industry as a whole. It's important to keep in mind that these shared leads make up only 5% to 6% of our total transaction value. And because our marketplace is heavily focused on clicks rather than leads, we do not expect these changes to have a significant impact on our business. With that, I'll turn the call over to Pat for a more detailed review of our third quarter performance and fourth quarter guidance. Thanks, Steve.