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]

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]

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 ...