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]

– 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 ...

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]