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Goosehead Insurance(GSHD) - 2024 Q2 - Quarterly Report
2024-07-25 00:14
Revenue Growth - Total revenue increased by 13% to $78.1 million for the three months ended June 30, 2024, compared to $69.3 million for the same period in 2023[118] - Total Written Premiums placed rose by 30% year-over-year to $998.9 million[118] - Core Revenue increased by 20% year-over-year to $73.4 million for the three months ended June 30, 2024[143] - Net income rose by $3.7 million to $10.9 million, representing 14% of total revenues for the same period[143] - Total Written Premium increased by 30% to $998.9 million for the three months ended June 30, 2024, compared to $767.3 million for the same period in 2023[156] - Renewal Revenue surged by 25% to $57.4 million for the three months ended June 30, 2024, up from $46.1 million in the prior year[161] - New Business Revenue increased by 7% to $16.0 million for the three months ended June 30, 2024, compared to $14.9 million for the same period in 2023[160] - Revenue from Renewal Royalty Fees increased by $9.3 million, or 34%, to $36.8 million for the three months ended June 30, 2024, compared to $27.6 million for the same period in 2023[177] - Revenue from New Business Royalty Fees increased by $0.9 million, or 14%, to $7.2 million for the three months ended June 30, 2024, compared to $6.3 million for the same period in 2023[177] - Total Written Premium placed by corporate agents and franchisees reached $1,817.7 million for the six months ended June 30, 2024, up from $1,404.9 million in the same period of 2023[185] Expenses and Profitability - Adjusted EBITDA increased by 7% to $24.7 million, representing 32% of total revenues for the three months ended June 30, 2024[118] - Commissions and agency fees accounted for $31.6 million, or 40% of total revenues, for the three months ended June 30, 2024[123] - Employee compensation and benefits expenses rose by 14% to $42.6 million for the three months ended June 30, 2024, compared to $37.5 million for the same period in 2023[128] - General and administrative expenses decreased by 3% to $16.9 million for the three months ended June 30, 2024[129] - Adjusted EBITDA increased by $1.6 million, or 7%, to $24.7 million for the three months ended June 30, 2024, compared to $23.1 million for the same period in 2023[193] - Adjusted EBITDA Margin was 32% for the three months ended June 30, 2024, compared to 33% for the same period in 2023[194] - Basic Earnings per Share (GAAP) increased to $0.25 for the three months ended June 30, 2024, up from $0.15 for the same period in 2023[198] Shareholder Actions - The company continues to own approximately 35% of its shares, reflecting management's commitment to long-term success[117] - The company repurchased Class A common stock for $63.2 million during the six months ended June 30, 2024[202] - The share repurchase program authorized the purchase of up to $100 million of Class A common stock through March 31, 2025[216] Financial Position - Net cash provided by operating activities was $30.9 million for the six months ended June 30, 2024, compared to $16.2 million for the same period in 2023[173] - Cash and cash equivalents balance was $23.6 million as of June 30, 2024[171] - The company expects its liquidity sources to be sufficient to fund working capital requirements and meet commitments in the foreseeable future[203] Customer Metrics - Policies in Force grew by 11% to 1,588,000 as of June 30, 2024[143] - Policies in Force increased to 1.6 million as of June 30, 2024, representing a 7% increase from December 31, 2023, and an 11% increase from June 30, 2023[185] - Client Retention decreased to 84% at June 30, 2024, down from 86% at December 31, 2023, and 88% at June 30, 2023[187] - Net Promoter Score (NPS) remained steady at 91 as of June 30, 2024, unchanged from June 30, 2023[186] Other Financial Metrics - Interest income decreased by 41% to $0.2 million for the three months ended June 30, 2024, from $0.4 million for the same period in 2023[127] - Interest expense increased to $2.0 million for the three months ended June 30, 2024, from $1.7 million for the same period in 2023[181] - Depreciation and amortization increased by $0.3 million, or 11%, to $2.6 million for the three months ended June 30, 2024, compared to $2.4 million for the same period in 2023[180] - Contingent Commissions decreased by $1.8 million to $2.2 million for the three months ended June 30, 2024, from $4.0 million in the prior year[150] - Cost Recovery Revenue decreased by $1.8 million, or 49%, to $1.9 million for the three months ended June 30, 2024, compared to $3.7 million for the same period in 2023[191] - Ancillary Revenue decreased by $1.7 million to $2.8 million for the three months ended June 30, 2024, down from $4.6 million for the same period in 2023[192] Franchise Metrics - Franchise revenues increased to $46.2 million, representing 59% of total revenues for the three months ended June 30, 2024[123] - Total franchises decreased by 33% year-over-year to 1,165 as of June 30, 2024[143] - Corporate sales headcount increased by 12% to 313 as of June 30, 2024[143]
Goosehead (GSHD) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
ZACKS· 2024-07-25 00:06
Core Insights - Goosehead Insurance (GSHD) reported revenue of $78.09 million for the quarter ended June 2024, marking a year-over-year increase of 12.7% and an EPS of $0.42 compared to $0.41 a year ago [1] Financial Performance - The reported revenue exceeded the Zacks Consensus Estimate of $74.11 million, resulting in a surprise of +5.36% [4] - The company achieved an EPS surprise of +5.00%, with the consensus EPS estimate being $0.40 [4] Key Metrics - Total Core Revenue was $73.41 million, surpassing the average estimate of $69.48 million based on four analysts, representing a year-over-year change of +20.3% [6] - Cost Recovery Revenue from Initial Franchise Fees was $1.63 million, below the average estimate of $2.94 million, reflecting a year-over-year decline of -50.4% [6] - Total Ancillary Revenue reached $2.81 million, exceeding the average estimate of $1.49 million, but showing a year-over-year decrease of -38.3% [6] - Core Revenue from New Business Royalty Fees was $7.17 million, above the average estimate of $6.56 million, indicating a year-over-year increase of +14.4% [6] - Core Revenue from Agency Fees was $2.14 million, below the estimated $2.53 million, representing a year-over-year decline of -11.1% [6] - Ancillary Revenue from Contingent Commissions was $2.21 million, exceeding the average estimate of $1.14 million, but showing a year-over-year decrease of -44.4% [6] - Core Revenue from Renewal Commissions was $20.59 million, slightly above the average estimate of $20.03 million, reflecting a year-over-year increase of +11.1% [6] - Total Cost Recovery Revenue was $1.88 million, below the average estimate of $3.29 million, indicating a year-over-year decline of -49.4% [6] - Core Revenue from New Business Commissions was $6.68 million, slightly below the average estimate of $6.69 million, showing a year-over-year increase of +6.8% [6] - Core Revenue from Renewal Royalty Fees was $36.83 million, exceeding the average estimate of $33.37 million, representing a year-over-year increase of +33.7% [6] - Cost Recovery Revenue from Interest Income was $0.24 million, below the average estimate of $0.27 million, reflecting a year-over-year decline of -41.5% [6] Stock Performance - Goosehead shares have returned +21.9% over the past month, significantly outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]
Goosehead Insurance(GSHD) - 2024 Q2 - Quarterly Results
2024-07-24 20:06
– Total Revenue Increased 13% and Core Revenue* Grew 20% over the Prior-Year Period – WESTLAKE, TEXAS – July 24, 2024 - Goosehead Insurance, Inc. ("Goosehead" or the "Company") (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2024. Second Quarter 2024 Highlights GOOSEHEAD INSURANCE, INC. ANNOUNCES SECOND QUARTER 2024 RESULTS Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures ...
Goosehead Insurance, Inc. to Report Second Quarter 2024 Results
GlobeNewswire News Room· 2024-07-17 20:38
Core Viewpoint - Goosehead Insurance, Inc. will report its second quarter 2024 results on July 24, 2024, after market close [1] Group 1: Earnings Announcement - The company will hold a conference call to discuss the results at 4:30 PM ET on July 24, 2024 [2] - A live webcast of the conference call will be available on Goosehead's investor relations website [2] - A replay of the call will be accessible for one year following the event [3] Group 2: Company Overview - Goosehead is a rapidly growing independent personal lines insurance agency operating through corporate and franchise locations across the United States [4] - The company focuses on providing extraordinary value by offering a broad product choice and a world-class service experience [4] - Goosehead represents over 150 insurance companies that underwrite personal and commercial lines [4]
MURGY vs. GSHD: Which Stock Should Value Investors Buy Now?
Zacks Investment Research· 2024-05-13 16:47
Core Viewpoint - Investors in the Insurance - Multi line sector should consider M?nchener R?ckversicherungs-Gesellschaft (MURGY) as a better value opportunity compared to Goosehead Insurance (GSHD) [1] Valuation Metrics - MURGY has a forward P/E ratio of 10.55, while GSHD has a significantly higher forward P/E of 40.87 [5] - The PEG ratio for MURGY is 0.97, indicating a more favorable valuation compared to GSHD's PEG ratio of 1.52 [5] - MURGY's P/B ratio stands at 2.23, contrasting sharply with GSHD's P/B ratio of 81.74 [6] Zacks Rank and Earnings Outlook - MURGY currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while GSHD has a Zacks Rank of 4 (Sell) [3] - The stronger estimate revision activity for MURGY suggests an improving earnings outlook compared to GSHD [7] Value Grades - Based on various valuation metrics, MURGY has a Value grade of B, whereas GSHD has a Value grade of F [6]
Goosehead Insurance(GSHD) - 2024 Q1 - Earnings Call Transcript
2024-04-25 03:21
Financial Data and Key Metrics Changes - Total revenues for Q1 2024 grew to $64.5 million, representing an 11% increase year-over-year, while core revenues reached $58.8 million, reflecting a 13% growth [77][48] - Adjusted EBITDA increased to $11.7 million compared to $10.2 million in the prior year, with an adjusted EBITDA margin holding steady at 18% [53] - Total written premiums grew by 28% year-over-year to $819 million, with franchise premium growth of 32% to $650 million and corporate premium growth of 15% to $169 million [48][83] Business Line Data and Key Metrics Changes - Franchise productivity saw an 86% increase year-over-year, with same-store sales growth of 19% in Q1 following 23% growth in Q4 [6][36] - The franchise network accounted for 87% of total agent count and 80% of new business production, with a 42% increase in franchise productivity in Q1 2024 [36][50] - The number of franchise producers increased to 1,963, up from 1,957 at year-end, marking the first sequential growth in six quarters [23][45] Market Data and Key Metrics Changes - The company is experiencing challenges in the insurance market, particularly in Texas, where homeowners insurance rates increased over 20% in 2023, leading to unprecedented shopping activity [21][22] - Same-store sales in California saw a significant increase of 107% in March, indicating potential market recovery [14] - The company expects client retention to return to historical levels of 89% as the market stabilizes [49][68] Company Strategy and Development Direction - The company is focused on enhancing the quality of its producers and increasing franchise productivity, which is seen as a long-term growth lever [12][68] - A substantial stock buyback plan has been authorized to take advantage of market dislocations, reflecting confidence in the company's long-term value [33][58] - The company aims to become the largest distributor of personal lines insurance in the U.S. during the founder's lifetime, emphasizing structural improvements and long-term growth strategies [84][86] Management's Comments on Operating Environment and Future Outlook - Management acknowledges facing temporary headwinds in the current hard insurance market but remains optimistic about long-term growth as market conditions normalize [13][31] - The company is committed to cost management and strategic investments to mitigate short-term impacts on revenue growth [32][92] - Management expects a re-acceleration in policy-enforced growth rates beginning in Q3 2024 as market conditions improve [78][81] Other Important Information - The company has generated operating cash flow of $11.9 million in Q1, compared to a cash use of operations of $639,000 in the prior year [82] - The board has approved a $100 million share repurchase authorization, reflecting strong balance sheet flexibility [58] - The first quarter is typically the seasonally weakest for earnings and cash generation, leading to a revision in full-year guidance [55] Q&A Session Summary Question: Where does the company see itself in the current product environment? - Management believes the auto insurance market is improving, while the home insurance market is still in a wait-and-see phase, particularly in Texas [88][89] Question: What is the impact of commission rate cuts on revenue? - The decline in core revenues is partly due to commission rate cuts from a couple of distressed carriers, but this is not expected to be a broad-scale issue [94][98] Question: How does the company view its guidance for 2025? - Management remains optimistic about new business generation and expects to onboard a significant number of new corporate agents, which will drive productivity [91][114] Question: What are the expectations for client retention moving forward? - Management anticipates that as the market stabilizes, client retention will improve back to historical averages [68][49] Question: How does the company plan to manage expenses amid revenue pressures? - The company has rationalized its cost base to avoid sacrificing bottom-line earnings while navigating short-term revenue headwinds [92][116]
Goosehead Insurance(GSHD) - 2024 Q1 - Quarterly Report
2024-04-25 01:58
Financial Performance - Total revenue increased by 11% year-over-year to $64.5 million for Q1 2024, up from $58.0 million in Q1 2023[96] - Core Revenue rose by 13% to $58.8 million in Q1 2024, compared to $51.9 million in Q1 2023[96] - Net income for Q1 2024 was $1.8 million, a significant increase from a net loss of $0.2 million in Q1 2023[96] - Adjusted EBITDA grew by 15% to $11.7 million, representing 18% of total revenues in Q1 2024[96] - Basic earnings per share (GAAP) for Q1 2024 was $0.07, while Adjusted EPS (non-GAAP) increased to $0.28 from $0.17 in Q1 2023[147] Premiums and Revenue Streams - Total Written Premiums increased by 28% to $818.8 million in Q1 2024, up from $638 million in Q1 2023[96] - Renewal Royalty Fees surged by 28% to $29.1 million in Q1 2024, driven by an increase in policies in the renewal term and rising premium rates[113] - New Business Royalty Fees rose by 10% to $6.2 million in Q1 2024, attributed to increased agent productivity and premium rates[114] - Total Written Premium increased by 28% to $818.8 million for the three months ended March 31, 2024, compared to $637.7 million for the same period in 2023, with corporate sales up 15% and franchise sales up 32%[125] - Core Revenue increased by $6.9 million, or 13%, to $58.8 million for the three months ended March 31, 2024, from $52.0 million for the same period in 2023[136] - New Business Revenue grew 3% to $13.8 million for the three months ended March 31, 2024, from $13.4 million for the same period in 2023[132] - Renewal Revenue increased by 17% to $45.0 million for the three months ended March 31, 2024, from $38.6 million for the same period in 2023[133] Operational Metrics - Policies in Force increased by 13% to 1,528,000 as of March 31, 2024, compared to the previous year[96] - Policies in Force remained stable at 1.5 million as of March 31, 2024, representing a 3% increase from December 31, 2023, and a 13% increase from March 31, 2023[127] - Client Retention decreased to 85% at March 31, 2024, compared to 88% at March 31, 2023[131] - Corporate sales headcount increased by 6% to 292 as of March 31, 2024, indicating growth in the sales force[96] - Total franchises decreased by 35% to 1,210, with operating franchises down 17% to 1,155 as of March 31, 2024[96] Cash Flow and Liquidity - Net cash provided by operating activities was $11.9 million for Q1 2024, a significant increase of $12.5 million compared to a net cash used of $0.6 million in Q1 2023[151] - Cash and cash equivalents at the end of Q1 2024 were $53.1 million, up from $26.2 million at the end of Q1 2023, reflecting a net increase of $26.9 million[151] - Net cash used for investing activities was $2.9 million in Q1 2024, slightly higher than $2.7 million in Q1 2023, primarily due to increased capitalized software development costs[153] - Net cash provided by financing activities was $0.1 million in Q1 2024, compared to a net cash used of $0.9 million in Q1 2023, driven by increased cash proceeds from the issuance of Class A common stock[154] - The company expects its liquidity sources, including cash on hand and cash flows from operations, to be sufficient to meet working capital requirements in the foreseeable future[155] Tax and Obligations - Tax benefit increased by $1.8 million to $1.8 million for the three months ended March 31, 2024, from $0.1 million for the same period in 2023[122] - Interest expenses decreased by $0.2 million to $1.5 million for the three months ended March 31, 2024, from $1.7 million for the same period in 2023[121] - Total contractual obligations as of March 31, 2024, amounted to $319.1 million, including $72.8 million in operating leases and $75.6 million in debt obligations[161] - The tax receivable agreement obligates the company to pay 85% of cash savings realized from tax benefits related to increases in tax basis[158] Shareholder Actions - The company approved a share repurchase program on April 24, 2024, authorizing the purchase of up to $100 million of Class A common stock through March 31, 2025[163]
Goosehead (GSHD) Reports Q1 Earnings: What Key Metrics Have to Say
Zacks Investment Research· 2024-04-25 00:36
For the quarter ended March 2024, Goosehead Insurance (GSHD) reported revenue of $64.46 million, up 11.2% over the same period last year. EPS came in at $0.28, compared to $0.17 in the year-ago quarter.The reported revenue represents a surprise of -2.68% over the Zacks Consensus Estimate of $66.24 million. With the consensus EPS estimate being $0.22, the EPS surprise was +27.27%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to deter ...
Goosehead Insurance(GSHD) - 2024 Q1 - Quarterly Results
2024-04-24 20:16
GOOSEHEAD INSURANCE, INC. ANNOUNCES FIRST QUARTER 2024 RESULTS – Total Revenue Increased 11% and Core Revenue Grew 13% over the Prior-Year Period – – Total Written Premium increased 28% to $819 million over the Prior-Year Period – – Net Income of $1.8 million versus Net Loss of $0.2 million a year ago – – Adjusted EBITDA* of $11.7 million versus $10.2 million in the Prior-Year Period – – Company Announces a $100 million Share Repurchase Authorization through March 2025 – WESTLAKE, TEXAS – April 24, 2024 - G ...
Goosehead Insurance, Inc. Announces First Quarter 2024 Results
Newsfilter· 2024-04-24 20:10
–  Total Revenue Increased 11% and Core Revenue Grew 13% over the Prior-Year Period  ––  Total Written Premium increased 28% to $819 million over the Prior-Year Period  ––  Net Income of $1.8 million versus Net Loss of $0.2 million a year ago  ––  Adjusted EBITDA* of $11.7 million versus $10.2 million in the Prior-Year Period  ––  Company Announces a $100 million Share Repurchase Authorization through March 2025  – WESTLAKE, Texas, April 24, 2024 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. ("Goosehead" or ...