Core Viewpoint - Investors are evaluating Axa Sa (AXAHY) and Goosehead Insurance (GSHD) to determine which stock represents a better undervalued investment opportunity [1] Valuation Metrics - Axa Sa has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Goosehead Insurance has a Zacks Rank of 3 (Hold) [3] - Axa Sa's forward P/E ratio is 9.57, significantly lower than Goosehead Insurance's forward P/E of 60.84 [5] - Axa Sa has a PEG ratio of 1.61, compared to Goosehead Insurance's PEG ratio of 4.34, suggesting Axa Sa is more reasonably priced relative to its expected earnings growth [5] - Axa Sa's P/B ratio is 1.84, while Goosehead Insurance's P/B ratio is exceptionally high at 108.72, indicating a substantial difference in valuation [6] - Axa Sa has a Value grade of B, whereas Goosehead Insurance has a Value grade of F, reflecting Axa Sa's more attractive valuation metrics [6] Conclusion - Axa Sa shows stronger estimate revision activity and more favorable valuation metrics than Goosehead Insurance, making it the preferred choice for value investors at this time [7]

Financial Performance - Total Written Premium grew 29% to $3.8 billion in 2024, up from $3.0 billion in 2023[31] - Total revenue growth was 20% and Total Written Premium growth was 29% in 2024, with a 10-year Total Written Premium CAGR of 42%[57] - Franchise sales generated a 33% increase in premiums during 2024, with a total of 1,103 franchises operating as of December 31, 2024, reflecting a 10% decrease compared to 2023[50] - The company earns 20% of New Business Royalty Fees and 50% of Renewal Royalty Fees from franchise sales, contributing to its core revenue[48] Client Retention and Satisfaction - Client retention rate reached 84% in 2024, which is among the best in the industry[23] - The company achieved a Net Promoter Score (NPS) of 89 in 2024, a decrease from 92 in 2023, while maintaining an 84% Client Retention rate[56] - Goosehead's service centers achieved a 2024 NPS score of 89, leading to an 84% Client Retention rate and a 98% premium retention rate[68] Sales and Production - Average commission rate on new business premium was 14% and on renewal business premium was 12% in 2024[29] - New Business Production per Agent in corporate sales was $66 thousand for agents with less than 1 year of tenure and $115 thousand for those with more than one year[40] - Corporate sales agents with more than three years of tenure averaged 2.8x as much New Business Production per Agent compared to industry best practices[42] - The company’s corporate sales agents generate approximately 2.8 times as much new business as top-performing personal lines agents after three years[62] - Franchise sales agents with over three years of tenure averaged 1.9 times the New Business Production per Agent compared to the industry best practice[47] Technology and Innovation - Goosehead's proprietary technology allows clients to receive quotes in less than two minutes using just three data points[35] - Goosehead's Digital Agent combines millions of data points to deliver tailored insurance quotes to clients[22] - The company has a competitive advantage through its proprietary cloud-based technology platform, which enhances sales and service efficiency[64] - Goosehead aims to leverage technology to enhance operational efficiencies and maintain a competitive edge in the market[68] Franchise Model and Growth - Goosehead has 1,103 operating franchise locations, reflecting significant growth in the franchise model[28] - As of December 31, 2024, Goosehead has operating franchises in 44 states, covering over 98% of the total U.S. population[66] - Total operating franchises decreased by 10% to 1,103 in 2024 from 1,226 in 2023, showing an improvement in franchise turnover compared to the previous year[75] - Franchise owners benefit from reduced startup costs and do not require additional employees or retail locations to launch their agencies[52] Employee Engagement and Culture - More than half of Goosehead's employees are women, and over one-third identify as racially diverse, reflecting the company's commitment to diversity[96] - Goosehead offers a competitive health benefits package, including a 401(k) retirement savings plan with matching contributions that vest over four years[95] - The company has adopted a code of business conduct and ethics that applies to all employees, promoting honest and ethical conduct[100] - Goosehead maintains strong Equal Opportunity and Anti-Harassment policies, ensuring a respectful workplace[97] - The company emphasizes a meritocratic culture, aligning employee incentives with shareholder interests through an Omnibus Incentive Plan[94] - Goosehead provides ongoing professional development through a structured training curriculum for all incoming recruits[92] - The company engages employees and franchise partners through in-person town halls, facilitating real-time updates to its operating platform[93] - Goosehead's operating principles focus on integrity, exceptional service, and creating value, fostering a motivated workforce[99] - Goosehead conducts weekly virtual webinars for ongoing training and mentoring of corporate and franchise agents[92] Operational Efficiency - Service expenses as a percentage of gross commissions were 3.2 times lower than the industry best practice in 2024[64] - The company’s service centers support both new and renewal business, allowing agents to focus on acquiring new clients[64] - Goosehead's compensation for service team employees averaged over $51,000 in 2024, contributing to employee retention[68] Market Opportunity - The U.S. personal lines P&C industry is valued at approximately $453 billion, indicating a significant market opportunity for Goosehead[69] - The company plans to continue expanding its recruiting efforts on college campuses and through targeted internet campaigns to grow its agent count[66] Compliance and Reporting - The company encourages independent reporting of policy violations through a third-party solutions team[98]

Goosehead Insurance, Inc (NASDAQ:GSHD) Q4 2024 Results Conference Call February 24, 2025 4:30 PM ET Company Participants Daniel Farrell - VP of Capital Markets Mark Miller - President and CEO Mark Jones - CFO Conference Call Participants Tommy McJoynt - KBW Matt Carletti - JMP Securities Brian Meredith - UBS Paul Newsome - Piper Sandler Andrew Kligerman - TD Cowen Katie Sakys - Autonomous Research Michael Zaremski - BMO Capital Markets Mark Hughes - Truist Securities Pablo Singzon - JPMorgan Scott Heleniak ...

Financial Data and Key Metrics Changes - Goosehead Insurance, Inc. reported a total revenue growth of 20% for 2024, with core revenue growth of 17% and premium growth of 29% [19][50] - EBITDA reached nearly $100 million, reflecting a 43% year-over-year increase and a record margin of 32% [19][34] - Adjusted EBITDA for Q4 grew 164% to $37.4 million, up from $14.1 million in the previous year [55] Business Line Data and Key Metrics Changes - Franchise premiums increased by 33% to $778 million, while corporate premiums grew by 9% to $187 million [49][50] - Policies in force as of year-end were 1.7 million, marking a 13% increase [54] - Franchise productivity grew 47% year-over-year in Q4 and 49% for the full year [40] Market Data and Key Metrics Changes - The personal lines insurance market is showing signs of improvement, with auto direct loss ratios decreasing from 74.8% to 64.5% year-over-year, and homeowners' direct loss ratios improving from 81% to 66.8% [17][18] - Contingent commissions for Q4 were $24 million, bringing the full year to $31.4 million, significantly higher than anticipated [51] Company Strategy and Development Direction - Goosehead Insurance aims to expand its franchise distribution and enhance technology capabilities, including the launch of a mobile app and improvements in quote-to-issue technology [29][30][34] - The company is focusing on embedding franchises within existing businesses, such as mortgage servicers, to diversify lead flow and mitigate fluctuations in housing transaction volumes [46][110] - The goal is to achieve a "rule of sixty" performance, combining revenue growth and profit margin exceeding 60% [34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of insurance in the wake of significant natural catastrophes and emphasized the need for adequate coverage [10][11] - The company remains optimistic about continued growth in 2025, driven by improved market conditions and strategic initiatives [19][60] - Management expressed confidence in the ability to capture additional market share and improve client retention rates [57][106] Other Important Information - Goosehead Insurance ended the year with $54.3 million in cash and total debt of $93.1 million [58] - The company completed a new term loan B offering of $300 million and a revolving credit facility of $75 million [59] Q&A Session Summary Question: Insights on contingent commissions - Management noted that the core performance of the book was better than anticipated, leading to larger contingencies from carriers [66] Question: Direction of EBITDA margin in 2025 - Management expects core revenue to grow faster than expenses, leading to margin expansion over time [69] Question: Product availability across geographies - Management indicated that product availability varies by state, with Texas seeing improvements in the E&S side [75] Question: Guidance on commission rates and client retention - Management anticipates an increase in average commission rates as the admitted market heals and expects gradual improvement in client retention [86] Question: Expectations for hiring and margin accretion - On the franchise side, new hires are margin accretive almost immediately, while corporate agents take about six to eight months to become margin accretive [121] Question: Long-term organic growth guidance - Management expects accelerating core revenue growth in 2025 compared to 2024, despite some conservative estimates due to contingent commissions [95]

Core Insights - Goosehead Insurance (GSHD) reported revenue of $93.92 million for Q4 2024, marking a year-over-year increase of 49.1% and exceeding the Zacks Consensus Estimate of $77.82 million by 20.70% [1] - The company's EPS for the same period was $0.79, significantly higher than the $0.28 reported a year ago, resulting in an EPS surprise of 92.68% compared to the consensus estimate of $0.41 [1] Key Financial Metrics - Total Core Revenue was $67.97 million, below the four-analyst average estimate of $71.76 million, reflecting a year-over-year increase of 19.5% [4] - Total Cost Recovery Revenue was $1.54 million, which is a decrease of 44.4% year-over-year and below the average estimate of $2.19 million [4] - Total Ancillary Revenue reached $24.41 million, significantly surpassing the four-analyst average estimate of $6.61 million, with a year-over-year increase of 630.8% [4] - Core Revenue from New Business Royalty Fees was $6.73 million, slightly above the average estimate of $6.52 million, representing a year-over-year increase of 25.7% [4] - Core Revenue from Agency Fees was $2.09 million, which is below the estimated $2.22 million but shows a year-over-year increase of 36.5% [4] - Ancillary Revenue from Contingent Commissions was $24.02 million, far exceeding the average estimate of $5.51 million, with a year-over-year increase of 688.8% [4] - Core Revenue from Renewal Commissions was $18.17 million, below the average estimate of $19.65 million, but still reflects a year-over-year increase of 4.8% [4] - Core Revenue from New Business Commissions was $6 million, below the average estimate of $6.85 million, with a year-over-year increase of 8.8% [4] - Core Revenue from Renewal Royalty Fees was $34.99 million, slightly above the average estimate of $33.79 million, representing a year-over-year increase of 28.7% [4] - Cost Recovery Revenue from Initial Franchise Fees was $1.33 million, below the average estimate of $2.06 million, reflecting a year-over-year decrease of 45.8% [4] - Cost Recovery Revenue from Interest Income was $0.21 million, slightly above the average estimate of $0.20 million, but shows a year-over-year decrease of 32.8% [4] Stock Performance - Goosehead's shares have returned +5.8% over the past month, contrasting with the Zacks S&P 500 composite's -0.5% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Goosehead Insurance topped fourth-quarter expectations with strong double-digit percentage growth in revenues and profits.Goosehead Insurance (GSHD -0.97%) announced its results for the fourth quarter after the close of trading on Feb. 24. The personal lines insurance agency reported adjusted earnings per share (EPS) of $0.79, well in excess of the estimated $0.40. Revenue growth for the quarter was likewise strong, reaching $93.9 million compared to the expected $78 million. MetricQ4 2024Q4 2024 Analysts' ...

Goosehead Insurance (GSHD) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 92.68%. A quarter ago, it was expected that this insurance company would post earnings of $0.46 per share when it actually produced earnings of $0.50, delivering a surprise of 8.70%.Over the last four quarters, ...

Revenue Growth - Total revenue for 2024 increased by 20% to $314.5 million, with core revenue growing 17% to $273.7 million[1] - Total written premiums in 2024 rose by 29% to $3.8 billion, indicating strong market demand[1] - Fourth quarter total revenues reached $93.9 million, a 49% increase year-over-year, while core revenues increased by 19% to $68.0 million[3] - Total revenues for 2025 are projected to be between $350 million and $385 million, indicating an organic growth of 11% to 22%[15] - Total revenues for the three months ended December 31, 2024, were $93,922,000, a 49% increase from $63,014,000 in the same period of 2023[20] - Core revenue for the twelve months ended December 31, 2024, reached $273,737,000, up 17.5% from $233,007,000 in 2023[20] Profitability - Net income for the fourth quarter was $23.8 million, up from $5.4 million a year ago, with an EPS of $0.60, reflecting a 300% increase[3] - Net Income for Q4 2024 was $23,822,000, a significant increase from $5,423,000 in Q4 2023, resulting in a Net Income Margin of 25% compared to 9% in the previous year[29] - Net income for the twelve months ended December 31, 2024, was $49,113,000, a 106% increase from $23,696,000 in 2023[20] - Basic Earnings per Share (EPS) for Q4 2024 was $0.60, compared to $0.15 in Q4 2023, leading to an Adjusted EPS of $0.79, up from $0.28[30] EBITDA Performance - Adjusted EBITDA for the fourth quarter was $37.4 million, a 164% increase from $14.1 million in the prior-year period, with an adjusted EBITDA margin of 40%[3] - Adjusted EBITDA for the three months ended December 31, 2024, was $37,378,000, compared to $14,148,000 in 2023, reflecting a significant increase[20] - The adjusted EBITDA margin improved to 40% for the three months ended December 31, 2024, compared to 22% in the same period of 2023[20] - Adjusted EBITDA for Q4 2024 reached $37,378,000, up from $14,148,000 in Q4 2023, with an Adjusted EBITDA Margin of 40% versus 22% in the prior year[29] Client Metrics - Policies in force grew by 13% year-over-year to approximately 1,674,000, demonstrating effective client retention strategies[4] - Policies in Force rose to 1,674,000 in December 2024, compared to 1,486,000 in December 2023, reflecting an increase in customer base[32] - Client Retention rate decreased to 84% in December 2024 from 86% in December 2023, while Premium Retention remained high at 98%[32] Liquidity and Financial Position - The company had cash and cash equivalents of $58.0 million and an unused line of credit of $74.8 million as of December 31, 2024, indicating strong liquidity[9] - Cash and cash equivalents increased to $54,280,000 as of December 31, 2024, from $41,956,000 in 2023[22] - Total assets grew to $397,653,000 as of December 31, 2024, compared to $354,892,000 in 2023[22] - Total liabilities increased to $358,580,000 as of December 31, 2024, from $338,106,000 in 2023[22] Franchise and Sales Growth - Total Franchise Producers increased to 2,092 in December 2024 from 1,957 in December 2023, indicating growth in the franchise network[32] - Corporate sales agents with less than one year of tenure increased to 253 in December 2024 from 135 in December 2023, indicating a growing sales force[32] - QTD Franchise Productivity for agents with less than one year of tenure improved to $17,861 compared to $10,975 in the previous year, reflecting enhanced productivity[32] Future Outlook - The company expects total written premiums for 2025 to be between $4.65 billion and $4.88 billion, representing 22% to 28% organic growth[15] - Goosehead plans to continue investing in technology and personnel to enhance its competitive position in the personal lines insurance market[4] Revenue Streams - Renewal royalty fees for the twelve months ended December 31, 2024, were $138,942,000, up from $107,524,000 in 2023, indicating strong growth in this revenue stream[20] - The company reported contingent commissions of $24,018,000 for the three months ended December 31, 2024, compared to $3,045,000 in 2023[20] Customer Satisfaction - The Net Promoter Score (NPS) decreased to 89 in December 2024 from 92 in December 2023, suggesting a slight decline in customer satisfaction[32]

– Total Revenue Increased 20% for the year to $314.5 million –– Core Revenue Grew 17% for the year to $273.7 million –– Total Written Premium in 2024 Increased 29% to $3.8 billion –– 2024 Net Income of $49.1 million versus $23.7 million in 2023 –– Adjusted EBITDA in 2024 up 43% to $99.9 million – WESTLAKE, Texas, Feb. 24, 2025 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for ...

WESTLAKE, Texas, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), announced today that it will report its fourth quarter 2024 results after the market close on Monday, February 24, 2024. The company will hold a conference call to discuss results at 4:30 PM ET on February 24th. To access the call by phone, participants should go to this link (registration link), and you will be provided with the dial in details. A live webcast of the conference call w ...