Goosehead Insurance(GSHD) - 2024 Q2 - Quarterly Report

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$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$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$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$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]