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]

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]

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]

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, 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 ...

–  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 ...

Investors interested in stocks from the Insurance - Multi line sector have probably already heard of M?nchener R?ckversicherungs-Gesellschaft (MURGY) and Goosehead Insurance (GSHD) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earn ...

WESTLAKE, Texas, April 17, 2024 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. ("Goosehead" or the "Company") (NASDAQ:GSHD), announced today that it will report its first quarter 2024 results after the market close on Wednesday, April 24, 2024. The company will hold a conference call to discuss results at 4:30 PM ET on April 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 will ...

WESTLAKE, Texas, April 17, 2024 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), announced today that it will report its first quarter 2024 results after the market close on Wednesday, April 24, 2024. The company will hold a conference call to discuss results at 4:30 PM ET on April 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 will ...

Goosehead Insurance (GSHD) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, t ...