Goosehead Insurance, Inc (NASDAQ:GSHD) Q3 2021 Results Conference Call October 27, 2021 4:30 PM ET Company Participants Daniel Farrell - Vice President of Capital Markets Mark Jones - Chairman and Chief Executive Officer Michael Colby - President and Chief Operating Officer Mark Colby - Chief Financial Officer Conference Call Participants Matthew Carletti - JMP Securities Ryan Tunis - Autonomous Research Mark Hughes - Truist Securities Mark Dwelle - RBC Capital Markets Pablo Singzon - JPMorgan Joshua Shank ...

Goosehead Insurance, Inc (NASDAQ:GSHD) Q1 2021 Earnings Conference Call April 29, 2021 4:30 PM ET Company Participants Daniel Farrell - VP of Capital Markets Mark Jones - Chairman and CEO Michael Colby - President and COO Mark Colby - CFO Conference Call Participants Meyer Shields - KBW Mark Dwelle - RBC Capital Markets Katie Sakys - Autonomous Research Operator Thank you for standing by. This is the conference operator. Welcome to the Goosehead Insurance First Quarter 2021 Earnings Call. As a reminder, all ...

Financial Performance - For the year ended December 31, 2020, total written premium grew by 45% to $1.07 billion from $739 million in 2019[28]. - The company achieved a net income of $18.8 million for the year ended December 31, 2020, an increase of $8.4 million over 2019[28]. - The company reported a 51% growth in revenue for the year ended December 31, 2020[28]. - Total written premium compound annual growth rate (CAGR) over 10 years was 37%, and 5-year premium CAGR was 45% as of December 31, 2020[37]. Client Retention and Satisfaction - Client retention rate was 88% during 2020, which is believed to be among the highest in the industry[22]. - The company's service centers achieved a Net Promoter Score (NPS) of 92 in 2020, up from 89 in 2019, significantly higher than the industry average[36]. - The company reported an 88% Client Retention rate and a 89% premium retention rate in 2020, supported by its service centers[66]. Business Channels and Growth - Corporate Channel accounted for 52% of total revenue in 2020, with a 47% increase in sales agent headcount and a 31% growth in premiums placed compared to the previous year[46][48]. - Franchise Channel generated 48% of total revenue in 2020, with premiums growing by 52% and a total of 1,468 franchises, including 891 operating and 577 in implementation, representing a 55% increase in total franchises[49][54]. - The company has expanded to 1,468 franchise locations, including 577 franchises under contract but not yet opened as of December 31, 2020[26]. Agent Performance and Productivity - Agents with more than three years of tenure in the Corporate Channel averaged 3.8 times more new business production per agent compared to industry best practices[30]. - Corporate Channel agents produced 3.8 times more new business per agent compared to industry best practices after three years, highlighting their productivity advantage[47][57]. - Franchise Channel agents with over three years of tenure averaged 2.3 times the new business production per agent compared to industry best practices, indicating strong performance[51][57]. Technology and Operational Efficiency - The company's proprietary technology allows agents to run quotes and place business in one simple phone call, enhancing client experience[21]. - The company's technology platform has resulted in service expenses being 3.2 times lower than the industry best practice, contributing to operational efficiencies[58]. - The company plans to continue investing in technology to enhance operational efficiencies and maintain a competitive edge[66]. Workforce and Culture - The company’s competitive advantage lies in its youthful workforce, with most Corporate Channel agents being recent college graduates, contrasting with an aging industry workforce[57]. - The average compensation for service team employees was over $47,000 in 2020, contributing to personnel consistency and high service quality[66]. - Goosehead Insurance, Inc. emphasizes a company culture grounded in integrity, teamwork, and exceptional service, which is crucial for its operational success[81][82]. Expansion Plans - The company plans to expand its Corporate Channel with new sales offices in Denver, San Antonio, Henderson, and another location in the Midwest in 2021[48]. - As of December 31, 2020, the company signed Franchise Agreements in 43 states, covering over 97% of the total U.S. population, with a potential franchise candidate pipeline of approximately 121,000[61]. IPO and Financial Structure - Goosehead Insurance, Inc. completed an initial public offering on May 1, 2018, issuing 9.8 million shares of Class A common stock at a price of $10.00 per share[85]. - Following the IPO, Goosehead Insurance, Inc. owned 37.3% of Goosehead Financial, LLC, while the Pre-IPO LLC Members owned the remaining 62.7%[86]. - As of December 31, 2020, Goosehead Insurance, Inc. owned 49.8% of Goosehead Financial, LLC, with non-controlling interest holders owning the remaining 50.2%[88]. Remote Work and Employee Management - The company transitioned its entire workforce to remote work in March 2020, with no negative impact on financial results or key performance indicators[83]. - By the end of Q3 2020, almost all employees were back in the office for at least 50% of the work week, implementing COVID-19 mitigation practices[84]. - The company’s recruiting team, consisting of 98 members, focuses on attracting motivated individuals for both Corporate and Franchise Channels[44]. Regulatory Compliance - The company is subject to federal and state privacy regulations, requiring the protection of customer information and notification policies[79].

Financial Data and Key Metrics Changes - Goosehead Insurance reported a 45% increase in total written premiums for 2020, reaching $1.074 billion, exceeding the high end of their initial guidance range of 32% to 40% growth [25][68] - Revenues increased by 51% to $117 million, with core revenue rising 41% year-over-year [25][68] - EBITDA for the year was $27.8 million, reflecting a 59% increase compared to 2019, resulting in a 24% EBITDA margin [65][68] Business Line Data and Key Metrics Changes - Franchise premium growth was 52% to $202 million, while corporate segment premium growth was 31% to $83 million [52] - Franchise channel total revenue for Q4 2020 was $16.9 million, up 54% from the previous year, with core revenues increasing 55% [56] - Corporate channel revenues for Q4 2020 were $17.7 million, a 43% increase from the year-ago period [59] Market Data and Key Metrics Changes - Goosehead expanded its presence to 43 states, covering over 97% of the U.S. population, up from 35 states at the end of 2019 [28] - The company had 1,468 total franchises at the end of 2020, a 55% increase from the prior year, with operating franchises increasing 45% to 891 [26][58] Company Strategy and Development Direction - Goosehead aims to continue investing in technology and human capital to drive growth, with a focus on expanding its competitive advantage in the U.S. personalized addressable market [34][35] - The company plans to launch a client-facing quoting platform and a mobile app in 2021 to enhance client engagement [47] - Goosehead's strategy includes leveraging its corporate channel to support franchise growth and productivity [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects, citing the benefits of past investments in technology and human capital [34][71] - The company anticipates total written premiums for 2021 to be between $1.48 billion and $1.55 billion, representing organic growth of 38% to 44% [68] - Management acknowledged potential challenges to ancillary revenue growth in 2021 due to the unpredictability of contingent commissions [68][69] Other Important Information - Goosehead achieved an industry-leading client retention rate of 88% [16][33] - The company reported a net promoter score of 92, indicating high customer satisfaction [31] Q&A Session Summary Question: Can you unpack the total written premium growth guidance for next year? - Management explained that the guidance is based on various factors including geography and franchise tenure, and they do not anticipate a decrease in productivity for 2021 [74] Question: What are the main inputs driving contingent commissions? - Management noted that volume growth rates and underwriting profitability are key components influencing contingent commissions [80][82] Question: How will the recent weather events in Texas impact the company? - Management indicated that they view the surge in demand for services as backlog rather than lost demand, and they are well-equipped to manage the situation [92][96] Question: Is there a significant margin differential between ancillary revenues and core revenues? - Management confirmed that while ancillary revenues are high margin, they are also very unreliable [101] Question: How does the expansion of carrier relationships impact commission revenues? - Management stated that they focus on working with meaningful carriers and that the commission rates are stable across their product spectrum [106]

Goosehead Insurance, Inc. (NASDAQ:GSHD) Q3 2020 Earnings Conference Call October 29, 2020 4:30 PM ET Company Participants Daniel Farrell - Vice President of Capital Markets Mark Jones - Chairman and Chief Executive Officer Michael Colby - President and Chief Operating Officer Mark Colby - Chief Financial Officer Conference Call Participants Mark Dwelle - RBC Capital Markets LLC Meyer Shields - Keefe, Bruyette & Woods, Inc. Adam Klauber - William Blair & Co. Operator Thank you for standing by. This is the co ...

Goosehead Insurance, Inc. (NASDAQ:GSHD) Q2 2020 Earnings Conference Call July 30, 2020 4:30 PM ET Company Participants Dan Farrell – Vice President-Capital Markets Mark Jones – Chairman and Chief Executive Officer Mark Colby – Chief Financial Officer Michael Colby – President and Chief Operating Officer Conference Call Participants Mark Dwelle – RBC Capital Markets Meyer Shields – KBW Operator Thank you for standing by. This is the conference operator. Welcome to the Goosehead Insurance’s Second Quarter 202 ...

Goosehead Insurance, Inc. (NASDAQ:GSHD) Q1 2020 Results Conference Call April 30, 2020 4:30 PM ET Company Participants Dan Farrell - Vice President of Capital Markets Mark Jones - Chairman and Chief Executive Officer Michael Colby - President and Chief Operating Officer Mark Colby - Chief Financial Officer Conference Call Participants Meyer Shields - KBW Mark Dwelle - RBC Capital Markets Operator Thank you for standing by. This is the conference operator. Welcome to the Goosehead Insurance First Quarter 202 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38466 GOOSEHEAD INSURANCE, INC. (Exact name of registrant as specified in its charter) Delaware 82-3886022 (State or other jurisdiction of incorpor ...

Financial Data and Key Metrics Changes - For the full-year 2019, premiums placed were $739 million, representing a 45% increase from 2018, exceeding the guidance range of 38% to 42% growth [12] - Revenue for the fourth quarter grew 59% to $23.4 million, while if reported under ASC 605, revenue would have grown 39% to $20.4 million [64] - Adjusted EBITDA for the full-year was $17.5 million, with an adjusted EBITDA margin of 23% under ASC 606, compared to 27% under ASC 605 [76] Business Line Data and Key Metrics Changes - The Franchise Channel generated revenues of $11 million in the fourth quarter, growing 54% to $9.5 million if reported under ASC 605 [69] - Corporate Channel revenues were $12.2 million in the fourth quarter, increasing 28% to $10.9 million if reported under ASC 605 [72] - Total written premiums for the full-year were $739 million, also an increase of 45%, with the Franchise Channel accounting for 67% of premiums compared to 62% in 2018 [67] Market Data and Key Metrics Changes - The company had over 482,000 policies in force, a 44% increase from one year ago [69] - Non-Texas franchises grew 71% year-over-year, now accounting for 76% of total franchises [71] - The Corporate Channel sales headcount increased by 49% to 248 agents [73] Company Strategy and Development Direction - The company continues to focus on long-term growth, prioritizing investments in people and technology to sustain high revenue growth [18][74] - The balance of the business is shifting towards the Franchise Channel, which is expected to yield higher margin revenue growth in the future [68] - The company plans to maintain an efficient capital structure while preserving balance sheet flexibility amid market uncertainties [29][80] Management's Comments on Operating Environment and Future Outlook - Management has seen no negative impact from the coronavirus, with strong lead flow and productivity [30][32] - The company anticipates that any potential negative impacts from the coronavirus will be temporary, maintaining optimism for long-term prospects [32] - Management is taking prudent actions to minimize potential disruptions, including preparing for remote work if necessary [31][32] Other Important Information - The company raised $85 million in new debt, with plans to use a portion to pay down existing notes payable [28][81] - The company has increased its internal technology development team by 80% compared to a year ago, emphasizing the importance of innovation [48] Q&A Session Summary Question: Will contingent commissions be restricted to just the third and fourth quarter? - Management indicated that it depends on the nature of the contingency, with better data available in the latter half of the year [84] Question: Is there any seasonality in terms of when investments will emerge in 2020? - Investments are made throughout the year, with no expected step function increase [86] Question: Can the company provide a breakdown between Corporate Channel and Franchise Channel commissions? - Management confirmed that a breakdown is available in the supplemental schedules of the earnings release [92] Question: How is the churn rate for franchises outside Texas compared to 2018? - The churn rate has decreased to 12%, accounting for only 1% to 2% of new business generated [116] Question: Did the company add any cushion in guidance for potential impacts from the coronavirus? - Management stated that there is some cushion in the guidance, but they are confident of minimal impact [112]

Q goosehead*" INSURANCE ICR Conference January 2020 Disclaimer This presentation may contain forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. All statements other than statements of historical facts contained in this presentation, including information concerning our possible or assumed future results of operations and expenses, business strategies and plans, competitive position, business and industry environment and potential growth opportuni ...