Core Insights - Axa Sa (AXAHY) is currently viewed as a more attractive investment compared to Goosehead Insurance (GSHD) for value investors seeking undervalued stocks [1][3]. Valuation Metrics - AXAHY has a forward P/E ratio of 9.67, significantly lower than GSHD's forward P/E of 66.93, indicating that AXAHY is undervalued relative to GSHD [5]. - The PEG ratio for AXAHY is 1.13, while GSHD's PEG ratio is 2.17, suggesting that AXAHY offers better value when considering expected earnings growth [5]. - AXAHY's P/B ratio stands at 1.50, in stark contrast to GSHD's P/B ratio of 1,777.50, further highlighting AXAHY's superior valuation metrics [6]. Earnings Outlook - AXAHY holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while GSHD has a Zacks Rank of 3 (Hold), suggesting a less favorable earnings estimate revision [3]. - The positive earnings estimate revisions for AXAHY contribute to its stronger valuation profile compared to GSHD [3]. Value Grades - AXAHY has a Value grade of B, while GSHD has a Value grade of F, reinforcing the conclusion that AXAHY is the superior value option at this time [6].

Revenue Growth - Total revenue increased by 10% to $78.0 million for Q3 2024, compared to $71.0 million in Q3 2023[74] - Core Revenue rose by 16% to $73.5 million in Q3 2024, up from $63.1 million in Q3 2023[74] - Total Written Premiums increased by 28% to $1.03 billion in Q3 2024, compared to $0.80 billion in Q3 2023[74] - New Business Revenue grew 8% to $15.2 million for the three months ended September 30, 2024, and grew 6% to $45.0 million for the nine months ended September 30, 2024[105] - Renewal Revenue increased by 19% to $58.3 million for the three months ended September 30, 2024, and by 20% to $160.7 million for the nine months ended September 30, 2024[106] - Core Revenue increased by 16% to $73.5 million for the three months ended September 30, 2024, and by 17% to $205.8 million for the nine months ended September 30, 2024[108] Profitability - Net income for Q3 2024 was $12.6 million, a 16% increase from $11.3 million in Q3 2023[74] - Adjusted EBITDA grew by 17% to $26.1 million in Q3 2024, representing 34% of total revenues[74] - Net income for the three months ended September 30, 2024, was $12.6 million, an increase of 11.8% from $11.3 million in the same period of 2023[117] - Adjusted EBITDA for the three months ended September 30, 2024, was $26.1 million, representing a margin of 34%, compared to $22.4 million and a margin of 32% in the same period of 2023[117] - Basic earnings per share (GAAP) for the three months ended September 30, 2024, was $0.31, up from $0.29 in the same period of 2023[118] - The adjusted EPS (non-GAAP) for the three months ended September 30, 2024, was $0.50, compared to $0.46 in the same period of 2023[118] Expenses - Total operating expenses increased to $61.6 million in Q3 2024, up from $57.4 million in Q3 2023[82] - Employee compensation and benefits expenses increased by $3.8 million, or 10%, to $43.2 million for the three months ended September 30, 2024, compared to $39.4 million for the same period in 2023[91] - General and administrative expenses increased by $0.4 million, or 2%, to $15.2 million for the three months ended September 30, 2024, from $14.8 million in the prior year[92] - Interest income decreased by $0.1 million, or 28%, to $0.2 million for the three months ended September 30, 2024, from $0.3 million for the same period in 2023[90] - Tax expense increased by $1.6 million for the three months ended September 30, 2024, to $2.3 million from $0.7 million for the same period in 2023[97] - Bad debts decreased by $0.2 million, or 29%, to $0.6 million for the three months ended September 30, 2024, from $0.8 million for the same period in 2023[93] Policies and Sales - Policies in Force increased by 12% to 1,636,000 as of September 30, 2024, compared to the previous year[74] - Corporate sales headcount rose by 45% to 458 as of September 30, 2024[74] - Total franchises decreased by 27% to 1,149 compared to the prior-year period[74] - Renewal Commissions accounted for 26% of Core Revenue in Q3 2024, totaling $20.2 million[80] - Renewal Commissions increased by $1.2 million, or 6%, to $20.2 million for the three months ended September 30, 2024, compared to $19.0 million for the same period in 2023[86] - New Business Commissions rose by $0.1 million, or 2%, to $6.2 million for the three months ended September 30, 2024, from $6.1 million in the prior year[86] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was $59.0 million, an increase of 58.0% from $37.4 million in the same period of 2023[123] - Cash and cash equivalents at the end of the period on September 30, 2024, were $50.1 million, up from $37.1 million at the end of September 30, 2023[122] - Net cash used for financing activities was $43.7 million for the nine months ended September 30, 2024, compared to $16.1 million in the same period of 2023, primarily due to stock repurchases[125] - Net cash used for investing activities decreased to $9.3 million for the nine months ended September 30, 2024, from $14.6 million in the same period of 2023, driven by reduced purchases of books of business[124] - The company expects its liquidity sources, including cash on hand and cash flows from operations, to be sufficient to meet its working capital requirements in the foreseeable future[126] Debt and Obligations - Total contractual obligations as of September 30, 2024, amount to $334,032,000, with $32,833,000 due within one year[131] - Debt obligations payable total $95,594,000, with $10,063,000 due within one year[131] - Interest expense for the period is $11,051,000, with $6,391,000 due within one year[131] - Liabilities under the tax receivable agreement total $160,697,000, with $4,948,000 due within one year[131] - The company has a share repurchase program authorized for up to $100 million of Class A common stock through March 31, 2025[132] Other Financial Metrics - Adjusted EBITDA increased by 17% to $26.1 million for the three months ended September 30, 2024, and by 12% to $62.5 million for the nine months ended September 30, 2024[112] - Adjusted EBITDA Margin was 34% for the three months ended September 30, 2024, compared to 32% for the same period in 2023[113] - Cost Recovery Revenue decreased by 40% to $1.6 million for the three months ended September 30, 2024, and by 39% to $6.0 million for the nine months ended September 30, 2024[110] - Ancillary Revenue decreased to $2.9 million for the three months ended September 30, 2024, down from $5.2 million for the same period in 2023[111] Client Metrics - The Net Promoter Score (NPS) decreased to 90 as of September 30, 2024, down from 92 as of September 30, 2023[103] - Client Retention decreased to 84% at September 30, 2024, compared to 86% at December 31, 2023, and 87% at September 30, 2023[104] Miscellaneous - The company amended its credit facilities on April 24, 2024, increasing term loan borrowings and revolving credit facility by $25 million each[131] - There have been no significant changes to critical accounting policies since the last annual report[134] - The company does not engage in off-balance sheet arrangements that expose it to additional liabilities[133] - There have been no material changes to market risk exposure as described in the previous annual report[136]

For the quarter ended September 2024, Goosehead Insurance (GSHD) reported revenue of $78.04 million, up 9.9% over the same period last year. EPS came in at $0.50, compared to $0.46 in the year-ago quarter.The reported revenue represents a surprise of -2.85% over the Zacks Consensus Estimate of $80.33 million. With the consensus EPS estimate being $0.46, the EPS surprise was +8.70%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Goosehead Insurance (GSHD) came out with quarterly earnings of $0.50 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.70%. A quarter ago, it was expected that this insurance company would post earnings of $0.40 per share when it actually produced earnings of $0.42, delivering a surprise of 5%.Over the last four quarters, the ...

Financial Performance - Total revenue increased by 10% to $78 0 million in Q3 2024 compared to the prior-year period [1][2] - Core revenue grew by 16% to $73 5 million in Q3 2024 driven by improved franchise productivity increased corporate agent headcount and client retention of 84% [2][4] - Net income for Q3 2024 was $12 6 million up from $11 3 million in the prior-year period with a net income margin of 16% [1][2][7] - Adjusted EBITDA increased to $26 1 million in Q3 2024 from $22 4 million in the prior-year period with an adjusted EBITDA margin of 34% [1][2][7] - Total written premiums grew by 28% to $1 03 billion in Q3 2024 marking the first time the company generated over $1 billion in a single quarter [1][2][3] Operational Highlights - Policies in force increased by 12% to approximately 1 636 000 in Q3 2024 compared to the prior-year period [2] - Corporate agent headcount grew by 45% to 458 in Q3 2024 compared to the prior-year period [2] - Total franchise producers increased by 4% to 2 093 in Q3 2024 compared to the prior-year period and by 5% compared to Q2 2024 [2] - Client retention stabilized at 84% in Q3 2024 despite market challenges [3] Expense Management - Total operating expenses excluding equity-based compensation depreciation and amortization and impairment expenses increased by 7% to $51 9 million in Q3 2024 compared to the prior-year period [5] - Employee compensation and benefits expenses increased due to investments in corporate producers partnership technology and service functions [6] - General and administrative expenses excluding impairment increased to $15 2 million in Q3 2024 from $14 8 million in the prior-year period primarily due to investments in technology and systems [6] Liquidity and Capital Resources - The company had cash and cash equivalents of $47 5 million as of September 30 2024 [8] - An unused line of credit of $74 8 million was available as of September 30 2024 [8] - Total outstanding term note payable balance was $95 6 million as of September 30 2024 [8] 2024 Outlook - Total written premiums for 2024 are expected to be between $3 70 billion and $3 82 billion representing growth of 25% to 29% [9] - Total revenues for 2024 are expected to be between $295 million and $310 million representing growth of 13% to 19% [9] - Adjusted EBITDA margin is expected to expand for the full year 2024 [9] Non-GAAP Measures - Core revenue includes renewal commissions renewal royalty fees new business commissions new business royalty fees and agency fees [21] - Cost recovery revenue includes initial franchise fees and interest income [21] - Ancillary revenue includes contingent commissions and other income [21] - Adjusted EBITDA excludes interest income taxes depreciation and amortization equity-based compensation impairment expense and other non-operating items [21] - Adjusted EPS excludes equity-based compensation and impairment expense [22]

WESTLAKE, Texas, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. ("Goosehead" or the "Company") (NASDAQ: GSHD), announced today that it will report its third quarter 2024 results after the market close on Wednesday, October 23, 2024. The company will hold a conference call to discuss results at 4:30 PM ET on October 23rd. 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 ...

Financial Data and Key Metrics Changes - Total written premiums grew 30% year-over-year to $999 million, with franchise premium growth of 35% to $793 million and corporate premium growth of 15% to $206 million [63] - Total revenues for the quarter increased to $78.1 million, representing 13% growth year-over-year, while core revenues reached $73.4 million, reflecting 20% growth year-over-year [64] - Adjusted EBITDA for the quarter grew to $24.7 million compared to $23.1 million in the prior year period [68] - Cash flow from operations was $18.9 million, up 14% from a year ago [43] - The company expects total written premiums for the full year 2024 to be between $3.62 billion and $3.82 billion, representing 22% to 29% growth [70] Business Line Data and Key Metrics Changes - The average gross paid to franchises increased by 62% over the previous year, indicating strong productivity improvements [35] - Franchise new business premiums were up 29%, while corporate new business premiums growth was noted to be lower [39][156] - The number of corporate agents increased to 313, up from 292 at the end of Q1 2024 [60] Market Data and Key Metrics Changes - Client retention for the quarter was 84%, down from 85% at the end of Q1, but expected to improve as premium rate increases slow [68] - Policies in force grew 11% year-over-year, with expectations for accelerating growth in the third quarter [67] Company Strategy and Development Direction - The company aims to be the largest personal lines insurance distributor in the country, focusing on reaccelerating growth by adding more agents and investing in technology [22][56] - A three-pronged approach to add agents includes hiring more quality corporate agents, optimizing in-house agent staffing, and increasing the franchise development team [25][16] - The company is making significant investments in technology to drive agent productivity and improve client experience [27][54] Management's Comments on Operating Environment and Future Outlook - Management noted that the personal lines industry remains in a challenging cycle, but the company is not waiting for market improvements to act [37] - There are early signs of relief in the auto insurance market, but the property insurance market remains difficult [48][52] - Management expressed confidence in long-term growth and earnings potential, with expectations for margin expansion primarily in the fourth quarter [69][106] Other Important Information - The company repurchased $63.2 million of its stock during the quarter, retiring over one million shares [44] - The company has a strong balance sheet with $23.6 million in cash and cash equivalents and an unused line of credit of $74.8 million [69] Q&A Session Summary Question: What is the outlook for product availability in the insurance market? - Management indicated that product availability is improving on a state-by-state basis, particularly in auto insurance, but remains uncertain for property insurance [72][73] Question: Can you elaborate on margin expansion expectations for the second half of 2023? - Management stated that there are no notable one-time items affecting comparisons, and margin expansion is expected primarily in Q4 [75][106] Question: How is the company addressing the challenges in commission rates? - Management noted that while there has been a slight decline in average commission rates, this is due to a shift towards lower commission state-run plans rather than changes from traditional carriers [84][85] Question: What are the expectations for revenue growth in the upcoming quarters? - Management expects revenue growth to accelerate in Q3 and Q4, driven by improved product availability and agent productivity [92][106] Question: How does the company plan to expand its franchise network? - The company is targeting key geographies for new franchise launches and has recruited a senior sales executive to lead franchise development [107][52]

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]

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]

Revenue Growth - Total revenue for Q2 2024 increased by 13% to $78.1 million compared to the prior-year period[5] - Core revenue grew by 20% to $73.4 million, up from $61.0 million in the prior-year period[5] - Total written premiums increased by 30% to $998.9 million over the prior-year period[3] - Total revenues for 2024 are projected to be between $290 million and $310 million, indicating growth of 11% to 19%[12] - Total revenues for Q2 2024 reached $78,088,000, a 12.5% increase from $69,277,000 in Q2 2023[19] - Core revenue for Q2 2024 was $73,407,000, up 20.3% from $61,021,000 in Q2 2023[27] - QTD written premium for Q2 2024 was $998,874,000, up from $767,253,000 in Q2 2023, marking a 30.2% increase[33] Profitability - Net income for Q2 2024 was $10.9 million, compared to $7.2 million a year ago, representing a 51% increase[3] - Adjusted EBITDA for Q2 2024 was $24.7 million, up from $23.1 million in the prior-year period[8] - Net income for Q2 2024 was $10,875,000, representing a net income margin of 14%, compared to $7,180,000 and 10% in Q2 2023[19] - Adjusted EBITDA for Q2 2024 reached $24,661,000, compared to $23,062,000 in Q2 2023, reflecting a growth of 6.9%[30] - Adjusted EBITDA margin for Q2 2024 was 32%, slightly down from 33% in Q2 2023[30] - Basic earnings per share (EPS) for Q2 2024 was $0.25, up from $0.15 in Q2 2023, representing a 66.7% increase[31] - Adjusted EPS for Q2 2024 was $0.43, compared to $0.41 in Q2 2023, indicating a growth of 4.9%[31] Operational Metrics - New business productivity per franchise increased by 54% in Q2 2024, marking the sixth consecutive quarter of growth[3] - Policies in force increased by 11% to approximately 1,588,000 compared to the prior-year period[5] - Total policies in force as of June 30, 2024, were 1,588,000, an increase from 1,427,000 in June 2023[33] - Client retention rate decreased to 84% in Q2 2024 from 88% in Q2 2023[33] - Corporate sales agents with less than one year of tenure increased to 157 in Q2 2024 from 146 in Q2 2023[33] - Net Promoter Score (NPS) remained stable at 91 in both Q2 2024 and Q2 2023[33] Financial Position - Cash and cash equivalents decreased to $23,643,000 as of June 30, 2024, down from $41,956,000 at the end of 2023[21] - Total assets decreased to $338,207,000 as of June 30, 2024, compared to $354,892,000 at the end of 2023[21] - Total liabilities increased to $357,940,000 as of June 30, 2024, up from $338,106,000 at the end of 2023[21] - The accumulated deficit improved to $(38,349,000) as of June 30, 2024, compared to $(47,056,000) at the end of 2023[21] - The company reported a total of 24,205,000 Class A common shares outstanding as of June 30, 2024, down from 24,966,000 shares at the end of 2023[21] Non-GAAP Measures - The company emphasizes the use of non-GAAP financial measures to evaluate performance, including Core Revenue and Adjusted EBITDA[22]