MediaAlpha, Inc.

Thank you for standing by. My name is Carmen and I am today. I would like to welcome everyone to the Media Alpha first quarter 2025 earnings conference call. All lines have been placed on mute to prevent any. 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 1 again. Thank you. I will now turn the call over to Alex LaLea, Investor Relations. Please go ahead.

Thanks, Carmen. Good afternoon, and thank you for joining us. With me are co-founder and CEO Steve Yee and CFO Pat Thompson. On today's call, we'll make forward-looking statements relating to our business and outlook for the future financial results, including our financial guidance for the second quarter of 2025. 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. Hey, thanks, Alex.

Hi, everyone. Thank you for joining us. 2025 is off to an outstanding start as we delivered record first quarter financial results that exceeded our guidance across all key performance metrics. Our strong results were driven by continued strength in our P&C insurance vertical, supported by robust growth investment from several carriers amid solid underlying profitability in the personal auto insurance sector. While automotive tariff development may put pressure on profitability as the year progresses, we anticipate continued near-term momentum and another strong quarter for our core TMC business. In our health insurance vertical, our first quarter performance was in line with expectations. Going forward, we've made the strategic decision to scale back certain areas of our under 65 business as we continue to shift our focus to Medicare Advantage, a large and growing market where we believe we have a strong competitive position. With regard to the FTC matter, we continue to engage in constructive dialogue with the FTC staff in an effort to work towards a reasonable resolution. In connection with these evolving discussions, we increased our reserve related to this matter by $5 million, bringing the total reserve to $12 million at the end of the quarter. While we cannot predict the outcome, we remain committed to resolving the FTC's claims in a manner that's in the best long-term interest of our shareholders. Looking ahead, we remain bullish on our near-term outlook for auto insurance advertising spend. While the upcoming automotive tariffs has the potential to negatively affect the industry, carriers by and large are highly profitable at this time and are ready to react quickly by adjusting rates if needed. We're staying closely connected with our partners and remain focused on delivering high returns on advertising spend and providing performance-driven marketing solutions that help them succeed through different macroeconomic conditions. With that, I'll hand it over to Pat for a deeper dive into our first quarter performance and second quarter guidance. Thanks, Steve.