- Revenue of $89 million, down 42% year over year
- Transaction Value of $147 million, down 42% year over year
- Transaction Value from Property & Casualty down 53% year over year to $83 million
- Transaction Value from Health down 5% year over year to $46 million
MediaAlpha, Inc. (NYSE: MAX), today announced its financial results for the third quarter ended September 30, 2022.
“Our third quarter results exceeded our expectations, though they declined significantly year over year as historic profitability pressures in the property & casualty (P&C) insurance industry, driven by ongoing loss cost inflation, continued to hinder our results,” said MediaAlpha co-founder and CEO Steve Yi. “We remain focused on operating discipline in the current environment and are confident we will capture an outsized share of P&C marketing investment when carrier profitability improves.”
Third Quarter 2022 Financial Results
- Revenue of $89.0 million, a decrease of 42% year over year;
- Transaction Value of $146.7 million, a decrease of 42% year over year;
- Gross margin of 14.2%, compared with 16.1% in the third quarter of 2021;
- Contribution Margin(1) of 17.4%, compared with 17.1% in the third quarter of 2021;
- Net loss was $(21.2) million, compared with $(4.3) million in the third quarter of 2021; and
- Adjusted EBITDA(1) was $2.2 million, compared with $13.8 million in the third quarter of 2021.
(1) |
|
A reconciliation of GAAP to Non-GAAP financial measures has been provided at the end of this press release. An explanation of these measures is also included below under the heading
|
Financial Outlook
Our guidance for Q4 2022 reflects a near-term pullback in marketing spend by P&C insurers during the fourth quarter as they continue to focus on improving full-year underwriting profitability. As a result, we expect fourth quarter Transaction Value in our P&C insurance vertical to decline year over year by a similar percentage as in the third quarter. In our Health vertical, we expect Transaction Value to be down slightly year over year as robust spend from our carrier partners is offset by lower spend from brokers.
For the fourth quarter of 2022, MediaAlpha currently expects the following:
- Transaction Value between $155 million - $170 million, representing a 34% year-over-year decline at the midpoint of the guidance range;
- Revenue between $110 million - $120 million, representing a 29% year-over-year decline at the midpoint of the guidance range;
- Adjusted EBITDA between $5.0 million and $7.0 million, representing a 55% year-over-year decline at the midpoint of the guidance range. We expect Adjusted EBITDA to decline year over year in Q4 2022 at a greater rate than Transaction Value and revenue due to the increases in our headcount and operating expenses over the last year. We are projecting our operating expenses excluding non-cash items to be $1.2 million to $1.7 million higher than Q3 2022 levels, driven by both temporary and seasonal increases in non-headcount operating expenses.
With respect to the Company’s projection of Adjusted EBITDA under “Financial Outlook,” MediaAlpha is not providing a reconciliation of Adjusted EBITDA to net income (loss) because the Company is unable to predict with reasonable certainty the reconciling items that may affect net income (loss) without unreasonable effort, including equity-based compensation, transaction expenses and income tax expense. These reconciling items are uncertain, depend on various factors and could significantly impact, either individually or in the aggregate, the corresponding GAAP measures for the applicable period.
For a detailed explanation of the Company’s non-GAAP measures, please refer to the appendix section of this press release.
Conference Call Information
MediaAlpha will host a Q&A conference call today to discuss the Company's third quarter 2022 results and its financial outlook for the fourth quarter of 2022 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live audio webcast of the call will be available on the MediaAlpha Investor Relations website at https://investors.mediaalpha.com. To register for the webcast, click here. Participants may also dial-in, toll-free, at (888) 330-2022 or (646) 960-0690, with passcode 3195092. An audio replay of the conference call will be available for two weeks following the call and available on the MediaAlpha Investor Relations website at https://investors.mediaalpha.com.
We have also posted to our investor relations website a letter to shareholders. We have used, and intend to continue to use, our investor relations website at https://investors.mediaalpha.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding our expectation that we will capture an outsized share of P&C marketing spend when industry profitability improves and our financial outlook for the fourth quarter of 2022. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including those more fully described in MediaAlpha’s filings with the Securities and Exchange Commission (“SEC”), including the Form 10-K filed on February 28, 2022. These factors should not be construed as exhaustive. MediaAlpha disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.
Non-GAAP Financial Measures and Operating Metrics
This press release includes Adjusted EBITDA and Contribution Margin, which are non-GAAP financial measures. The Company also presents Transaction Value, which is an operating metric not presented in accordance with GAAP. See the appendix for definitions of Adjusted EBITDA, Contribution, Contribution Margin and Transaction Value, as well as reconciliations to the corresponding GAAP financial metrics, as applicable.
We present Transaction Value, Adjusted EBITDA and Contribution Margin because they are used extensively by our management and board of directors to manage our operating performance, including evaluating our operational performance against budget and assessing our overall operating efficiency and operating leverage. Accordingly, we believe that Transaction Value, Adjusted EBITDA and Contribution Margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team and board of directors. Each of Transaction Value, Adjusted EBITDA and Contribution Margin has limitations as a financial measure and investors should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP.
MediaAlpha, Inc. and subsidiaries
|
|||||||
|
September 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
30,208 |
|
|
$ |
50,564 |
|
Accounts receivable, net of allowance for credit losses of $356 and $609,
|
|
34,708 |
|
|
|
76,094 |
|
Prepaid expenses and other current assets |
|
4,951 |
|
|
|
10,448 |
|
Total current assets |
|
69,867 |
|
|
|
137,106 |
|
Intangible assets, net |
|
34,623 |
|
|
|
12,567 |
|
Goodwill |
|
47,739 |
|
|
|
18,402 |
|
Deferred tax asset |
|
103,584 |
|
|
|
102,656 |
|
Other assets |
|
9,406 |
|
|
|
19,073 |
|
Total assets |
$ |
265,219 |
|
|
$ |
289,804 |
|
Liabilities and stockholders' equity (deficit) |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
42,336 |
|
|
$ |
61,770 |
|
Accrued expenses |
|
12,723 |
|
|
|
13,716 |
|
Current portion of long-term debt |
|
8,760 |
|
|
|
8,730 |
|
Total current liabilities |
|
63,819 |
|
|
|
84,216 |
|
Long-term debt, net of current portion |
|
181,494 |
|
|
|
178,069 |
|
Liabilities under tax receivables agreement, net of current portion |
|
83,256 |
|
|
|
85,027 |
|
Other long-term liabilities |
|
5,052 |
|
|
|
4,058 |
|
Total liabilities |
$ |
333,621 |
|
|
$ |
351,370 |
|
Commitments and contingencies (Note 7) |
|
|
|
||||
Stockholders' equity (deficit): |
|
|
|
||||
Class A common stock, $0.01 par value - 1.0 billion shares authorized; 42.7
|
|
427 |
|
|
|
410 |
|
Class B common stock, $0.01 par value - 100 million shares authorized; 19.2
|
|
192 |
|
|
|
196 |
|
Preferred stock, $0.01 par value - 50 million shares authorized; 0 shares issued
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
455,753 |
|
|
|
419,533 |
|
Accumulated deficit |
|
(455,177 |
) |
|
|
(424,476 |
) |
Total stockholders' equity (deficit) attributable to MediaAlpha, Inc. |
$ |
1,195 |
|
|
$ |
(4,337 |
) |
Non-controlling interests |
|
(69,597 |
) |
|
|
(57,229 |
) |
Total stockholders' (deficit) |
$ |
(68,402 |
) |
|
$ |
(61,566 |
) |
Total liabilities and stockholders' deficit |
$ |
265,219 |
|
|
$ |
289,804 |
|
MediaAlpha, Inc. and subsidiaries
|
|||||||||||||||
|
Three months ended
|
|
Nine Months Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue |
$ |
89,017 |
|
|
$ |
152,749 |
|
|
$ |
335,065 |
|
|
$ |
483,690 |
|
Costs and operating expenses |
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
76,343 |
|
|
|
128,081 |
|
|
|
285,149 |
|
|
|
407,566 |
|
Sales and marketing |
|
6,853 |
|
|
|
5,624 |
|
|
|
22,034 |
|
|
|
16,739 |
|
Product development |
|
5,291 |
|
|
|
3,757 |
|
|
|
16,168 |
|
|
|
10,917 |
|
General and administrative |
|
11,105 |
|
|
|
15,352 |
|
|
|
40,569 |
|
|
|
44,686 |
|
Total costs and operating expenses |
|
99,592 |
|
|
|
152,814 |
|
|
|
363,920 |
|
|
|
479,908 |
|
(Loss) income from operations |
|
(10,575 |
) |
|
|
(65 |
) |
|
|
(28,855 |
) |
|
|
3,782 |
|
Other expenses, net |
|
8,602 |
|
|
|
316 |
|
|
|
8,123 |
|
|
|
337 |
|
Interest expense |
|
2,593 |
|
|
|
1,765 |
|
|
|
5,908 |
|
|
|
6,303 |
|
Total other expense, net |
|
11,195 |
|
|
|
2,081 |
|
|
|
14,031 |
|
|
|
6,640 |
|
(Loss) before income taxes |
|
(21,770 |
) |
|
|
(2,146 |
) |
|
|
(42,886 |
) |
|
|
(2,858 |
) |
Income tax (benefit) expense |
|
(544 |
) |
|
|
2,125 |
|
|
|
1,210 |
|
|
|
1,636 |
|
Net (loss) |
$ |
(21,226 |
) |
|
$ |
(4,271 |
) |
|
$ |
(44,096 |
) |
|
$ |
(4,494 |
) |
Net (loss) attributable to non-controlling
|
|
(6,740 |
) |
|
|
(737 |
) |
|
|
(13,395 |
) |
|
|
(1,038 |
) |
Net (loss) attributable to MediaAlpha, Inc. |
$ |
(14,486 |
) |
|
$ |
(3,534 |
) |
|
$ |
(30,701 |
) |
|
$ |
(3,456 |
) |
Net (loss) per share of Class A common stock |
|
|
|
|
|
|
|
||||||||
-Basic |
$ |
(0.34 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.09 |
) |
-Diluted |
$ |
(0.34 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.09 |
) |
Weighted average shares of Class A common
|
|
|
|
|
|
|
|
||||||||
-Basic |
|
42,210,186 |
|
|
|
38,416,723 |
|
|
|
41,592,783 |
|
|
|
36,426,270 |
|
-Diluted |
|
42,210,186 |
|
|
|
61,190,185 |
|
|
|
41,592,783 |
|
|
|
36,426,270 |
|
MediaAlpha, Inc. and subsidiaries
|
|||||||
|
Nine Months Ended
|
||||||
|
2022 |
|
2021 |
||||
Cash flows from operating activities |
|
|
|
||||
Net (loss) |
$ |
(44,096 |
) |
|
$ |
(4,494 |
) |
Adjustments to reconcile net (loss) to net cash provided by operating activities: |
|
|
|
||||
Non-cash equity-based compensation expense |
|
44,216 |
|
|
|
33,321 |
|
Non-cash lease expense |
|
539 |
|
|
|
420 |
|
Depreciation expense on property and equipment |
|
295 |
|
|
|
272 |
|
Amortization of intangible assets |
|
4,064 |
|
|
|
2,238 |
|
Amortization of deferred debt issuance costs |
|
626 |
|
|
|
966 |
|
Change in fair value of contingent consideration |
|
(6,591 |
) |
|
|
— |
|
Impairment of cost method investment |
|
8,594 |
|
|
|
— |
|
Credit losses |
|
(109 |
) |
|
|
136 |
|
Deferred taxes |
|
1,054 |
|
|
|
1,195 |
|
Tax receivable agreement liability adjustments |
|
(576 |
) |
|
|
(604 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
42,840 |
|
|
|
24,854 |
|
Prepaid expenses and other current assets |
|
5,451 |
|
|
|
4,191 |
|
Other assets |
|
322 |
|
|
|
391 |
|
Accounts payable |
|
(19,452 |
) |
|
|
(54,033 |
) |
Accrued expenses |
|
(2,439 |
) |
|
|
(2,177 |
) |
Net cash provided by operating activities |
$ |
34,738 |
|
|
$ |
6,676 |
|
Cash flows from investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(93 |
) |
|
|
(568 |
) |
Cash consideration paid in connection with CHT acquisition |
|
(49,677 |
) |
|
|
— |
|
Net cash (used in) investing activities |
$ |
(49,770 |
) |
|
$ |
(568 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds received from: |
|
|
|
||||
Revolving credit facility |
|
25,000 |
|
|
|
— |
|
Payments made for: |
|
|
|
||||
Repayments on revolving line of credit |
|
(15,000 |
) |
|
|
— |
|
Proceeds from issuance of long-term debt |
|
— |
|
|
|
190,000 |
|
Repayments on long-term debt |
|
(7,125 |
) |
|
|
(186,375 |
) |
Payments of debt issuance costs |
|
— |
|
|
|
(866 |
) |
Repurchases of Class A common stock |
|
(5,008 |
) |
|
|
— |
|
Distributions |
|
(590 |
) |
|
|
(338 |
) |
Shares withheld for taxes on vesting of restricted stock units |
|
(2,601 |
) |
|
|
(2,782 |
) |
Net cash (used in) financing activities |
$ |
(5,324 |
) |
|
$ |
(361 |
) |
Net (decrease) increase in cash and cash equivalents |
|
(20,356 |
) |
|
|
5,747 |
|
Cash and cash equivalents, beginning of period |
|
50,564 |
|
|
|
23,554 |
|
Cash and cash equivalents, end of period |
$ |
30,208 |
|
|
$ |
29,301 |
|
Key business and operating metrics and Non-GAAP financial measures
Transaction Value
We define “Transaction Value” as the total gross dollars transacted by our partners on our platform. Transaction Value is a driver of revenue, with differing revenue recognition based on the economic relationship we have with our partners. Our partners use our platform to transact via Open and Private Marketplace transactions. In our Open Marketplace model, Transaction Value is equal to revenue recognized and revenue share payments to our supply partners represent costs of revenue. In our Private Marketplace model, revenue recognized represents a platform fee billed to the demand partner or supply partner based on an agreed-upon percentage of the Transaction Value for the Consumer Referrals transacted, and accordingly there are no associated costs of revenue. We utilize Transaction Value to assess revenue and to assess the overall level of transaction activity through our platform. We believe it is useful to investors to assess the overall level of activity on our platform and to better understand the sources of our revenue across our different transaction models and verticals.
The following table presents Transaction Value by platform model for the three and nine months ended September 30, 2022 and 2021:
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(dollars in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Open Marketplace transactions |
|
$ |
86,279 |
|
|
$ |
147,800 |
|
|
$ |
324,008 |
|
|
$ |
469,670 |
|
Percentage of total Transaction Value |
|
|
58.8 |
% |
|
|
57.9 |
% |
|
|
57.0 |
% |
|
|
60.7 |
% |
Private Marketplace transactions |
|
|
60,438 |
|
|
|
107,290 |
|
|
|
244,592 |
|
|
|
304,410 |
|
Percentage of total Transaction Value |
|
|
41.2 |
% |
|
|
42.1 |
% |
|
|
43.0 |
% |
|
|
39.3 |
% |
Total Transaction Value |
|
$ |
146,717 |
|
|
$ |
255,090 |
|
|
$ |
568,600 |
|
|
$ |
774,080 |
|
The following table presents Transaction Value by vertical for the three and nine months ended September 30, 2022 and 2021:
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(dollars in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Property & Casualty insurance |
|
$ |
83,165 |
|
|
$ |
175,375 |
|
|
$ |
343,179 |
|
|
$ |
535,448 |
|
Percentage of total Transaction Value |
|
|
56.7 |
% |
|
|
68.8 |
% |
|
|
60.4 |
% |
|
|
69.2 |
% |
Health insurance |
|
|
46,190 |
|
|
|
48,692 |
|
|
|
152,839 |
|
|
|
146,275 |
|
Percentage of total Transaction Value |
|
|
31.5 |
% |
|
|
19.1 |
% |
|
|
26.9 |
% |
|
|
18.9 |
% |
Life insurance |
|
|
11,580 |
|
|
|
13,361 |
|
|
|
36,438 |
|
|
|
41,736 |
|
Percentage of total Transaction Value |
|
|
7.9 |
% |
|
|
5.2 |
% |
|
|
6.4 |
% |
|
|
5.4 |
% |
Other |
|
|
5,782 |
|
|
|
17,662 |
|
|
|
36,144 |
|
|
|
50,621 |
|
Percentage of total Transaction Value |
|
|
3.9 |
% |
|
|
6.9 |
% |
|
|
6.4 |
% |
|
|
6.5 |
% |
Total Transaction Value |
|
$ |
146,717 |
|
|
$ |
255,090 |
|
|
$ |
568,600 |
|
|
$ |
774,080 |
|
(1) |
Our other verticals include Travel, Education and Consumer Finance. |
Contribution and Contribution Margin
We define “Contribution” as revenue less revenue share payments and online advertising costs, or, as reported in our consolidated statements of operations, revenue less cost of revenue (i.e., gross profit), as adjusted to exclude the following items from cost of revenue: equity-based compensation; salaries, wages, and related costs; internet and hosting costs; amortization; depreciation; other services; and merchant-related fees. We define “Contribution Margin” as Contribution expressed as a percentage of revenue for the same period. Contribution and Contribution Margin are non-GAAP financial measures that we present to supplement the financial information we present on a GAAP basis. We use Contribution and Contribution Margin to measure the return on our relationships with our supply partners (excluding certain fixed costs), the financial return on and efficacy of our online advertising costs to drive consumers to our proprietary websites, and our operating leverage. We do not use Contribution and Contribution Margin as measures of overall profitability. We present Contribution and Contribution Margin because they are used by our management and board of directors to manage our operating performance, including evaluating our operational performance against budget and assessing our overall operating efficiency and operating leverage. For example, if Contribution increases and our headcount costs and other operating expenses remain steady, our Adjusted EBITDA and operating leverage increase. If Contribution Margin decreases, we may choose to re-evaluate and re-negotiate our revenue share agreements with our supply partners, to make optimization and pricing changes with respect to our bids for keywords from primary traffic acquisition sources, or to change our overall cost structure with respect to headcount, fixed costs and other costs. Other companies may calculate Contribution and Contribution Margin differently than we do. Contribution and Contribution Margin have their limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results presented in accordance with GAAP.
The following table reconciles Contribution with gross profit, the most directly comparable financial measure calculated and presented in accordance with GAAP, for the three and nine months ended September 30, 2022 and 2021:
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue |
|
$ |
89,017 |
|
|
$ |
152,749 |
|
|
$ |
335,065 |
|
|
$ |
483,690 |
|
Less cost of revenue |
|
|
(76,343 |
) |
|
|
(128,081 |
) |
|
|
(285,149 |
) |
|
|
(407,566 |
) |
Gross profit |
|
|
12,674 |
|
|
|
24,668 |
|
|
|
49,916 |
|
|
|
76,124 |
|
Adjusted to exclude the following (as related
|
|
|
|
|
|
|
|
|
||||||||
Equity-based compensation |
|
|
999 |
|
|
|
447 |
|
|
|
2,637 |
|
|
|
1,289 |
|
Salaries, wages, and related |
|
|
989 |
|
|
|
501 |
|
|
|
2,679 |
|
|
|
1,523 |
|
Internet and hosting |
|
|
126 |
|
|
|
105 |
|
|
|
349 |
|
|
|
315 |
|
Other expenses |
|
|
189 |
|
|
|
104 |
|
|
|
531 |
|
|
|
323 |
|
Depreciation |
|
|
12 |
|
|
|
7 |
|
|
|
30 |
|
|
|
22 |
|
Other services |
|
|
492 |
|
|
|
300 |
|
|
|
1,598 |
|
|
|
847 |
|
Merchant-related fees |
|
|
40 |
|
|
|
56 |
|
|
|
99 |
|
|
|
286 |
|
Contribution |
|
|
15,521 |
|
|
|
26,188 |
|
|
|
57,839 |
|
|
|
80,729 |
|
Gross margin |
|
|
14.2 |
% |
|
|
16.1 |
% |
|
|
14.9 |
% |
|
|
15.7 |
% |
Contribution Margin |
|
|
17.4 |
% |
|
|
17.1 |
% |
|
|
17.3 |
% |
|
|
16.7 |
% |
Adjusted EBITDA
We define “Adjusted EBITDA” as net income excluding interest expense, income tax benefit (expense), depreciation expense on property and equipment, amortization of intangible assets, as well as equity-based compensation expense and certain other adjustments as listed in the table below. Adjusted EBITDA is a non-GAAP financial measure that we present to supplement the financial information we present on a GAAP basis. We monitor and present Adjusted EBITDA because it is a key measure used by our management to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. We believe that Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude in the calculations of Adjusted EBITDA. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. In addition, presenting Adjusted EBITDA provides investors with a metric to evaluate the capital efficiency of our business.
Adjusted EBITDA is not presented in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures presented in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income, which is the most directly comparable financial measure calculated and presented in accordance with GAAP. These limitations include the fact that Adjusted EBITDA excludes interest expense on debt, income tax benefit (expense), equity-based compensation expense, depreciation and amortization, and certain other adjustments that we consider useful information to investors and others in understanding and evaluating our operating results. In addition, other companies may use other measures to evaluate their performance, including different definitions of “Adjusted EBITDA,” which could reduce the usefulness of our Adjusted EBITDA as a tool for comparison.
The following table reconciles Adjusted EBITDA with net (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, for the three and nine months ended September 30, 2022 and 2021.
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
(in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net (loss) |
|
$ |
(21,226 |
) |
|
$ |
(4,271 |
) |
|
$ |
(44,096 |
) |
|
$ |
(4,494 |
) |
Equity-based compensation expense |
|
|
14,600 |
|
|
|
11,198 |
|
|
|
44,216 |
|
|
|
33,321 |
|
Interest expense |
|
|
2,593 |
|
|
|
1,765 |
|
|
|
5,908 |
|
|
|
6,303 |
|
Income tax (benefit) expense |
|
|
(544 |
) |
|
|
2,125 |
|
|
|
1,210 |
|
|
|
1,636 |
|
Depreciation expense on property and
|
|
|
98 |
|
|
|
99 |
|
|
|
295 |
|
|
|
272 |
|
Amortization of intangible assets |
|
|
1,704 |
|
|
|
746 |
|
|
|
4,064 |
|
|
|
2,238 |
|
Transaction expenses(1) |
|
|
106 |
|
|
|
1,152 |
|
|
|
636 |
|
|
|
3,883 |
|
Employee-related costs(2) |
|
|
— |
|
|
|
270 |
|
|
|
— |
|
|
|
619 |
|
SOX implementation costs(3) |
|
|
— |
|
|
|
348 |
|
|
|
110 |
|
|
|
797 |
|
Fair value adjustment to contingent
|
|
|
(3,746 |
) |
|
|
— |
|
|
|
(6,591 |
) |
|
|
— |
|
Impairment of cost method investment |
|
|
8,594 |
|
|
|
— |
|
|
|
8,594 |
|
|
|
— |
|
Settlement costs(5) |
|
|
— |
|
|
|
800 |
|
|
|
— |
|
|
|
800 |
|
Changes in TRA related liability(6) |
|
|
13 |
|
|
|
(448 |
) |
|
|
(577 |
) |
|
|
(604 |
) |
Changes in Tax Indemnification
|
|
|
(15 |
) |
|
|
— |
|
|
|
(44 |
) |
|
|
147 |
|
Settlement of federal and state income tax
|
|
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
2,177 |
|
|
$ |
13,784 |
|
|
$ |
13,817 |
|
|
$ |
44,918 |
|
(1) |
|
Transaction expenses consist of $0.1 million and $0.6 million of legal, accounting and other consulting fees incurred by us for the three and nine months ended September 30,
|
(2) |
|
Employee-related costs include $0.3 million and $0.5 million of expenses incurred by us for the three and nine months ended September 30, 2021, respectively, for amounts
|
(3) |
|
SOX implementation costs consist of $0 and $0.1 million of expenses incurred by us for the three and nine months ended September 30, 2022, respectively, and $0.3 million
|
(4) |
|
Fair value adjustment to contingent consideration consists of $3.7 million and $6.6 million of gain for the three and nine months ended September 30, 2022, respectively, in
|
(5) |
|
Settlement costs include $0.8 million of expenses incurred by us for the three and nine months ended September 30, 2021, to settle certain claims made by the Attorney
|
(6) |
|
Changes in TRA related liability consist of immaterial expenses and $0.6 million of income for the three and nine months ended September 30, 2022, respectively, and
|
(7) |
|
Changes in Tax Indemnification Receivable consists of immaterial income incurred by us for the three and nine months ended September 30, 2022, and $0.1 million of
|
(8) |
|
Settlement of federal and state tax refunds consist of $0 and $0.1 million of expense incurred by us for the three and nine months ended September 30, 2022, respectively,
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221103006071/en/
Contacts
Investors
Denise Garcia
Hayflower Partners
Denise@HayflowerPartners.com
Press
Louise Rasho
Louise@MediaAlpha.com
