Goosehead Insurance(GSHD) - 2024 Q4 - Annual Results

Revenue Growth - Total revenue for 2024 increased by 20% to $314.5 million, with core revenue growing 17% to $273.7 million[1] - Total written premiums in 2024 rose by 29% to $3.8 billion, indicating strong market demand[1] - Fourth quarter total revenues reached $93.9 million, a 49% increase year-over-year, while core revenues increased by 19% to $68.0 million[3] - Total revenues for 2025 are projected to be between $350 million and $385 million, indicating an organic growth of 11% to 22%[15] - Total revenues for the three months ended December 31, 2024, were $93,922,000, a 49% increase from $63,014,000 in the same period of 2023[20] - Core revenue for the twelve months ended December 31, 2024, reached $273,737,000, up 17.5% from $233,007,000 in 2023[20] Profitability - Net income for the fourth quarter was $23.8 million, up from $5.4 million a year ago, with an EPS of $0.60, reflecting a 300% increase[3] - Net Income for Q4 2024 was $23,822,000, a significant increase from $5,423,000 in Q4 2023, resulting in a Net Income Margin of 25% compared to 9% in the previous year[29] - Net income for the twelve months ended December 31, 2024, was $49,113,000, a 106% increase from $23,696,000 in 2023[20] - Basic Earnings per Share (EPS) for Q4 2024 was $0.60, compared to $0.15 in Q4 2023, leading to an Adjusted EPS of $0.79, up from $0.28[30] EBITDA Performance - Adjusted EBITDA for the fourth quarter was $37.4 million, a 164% increase from $14.1 million in the prior-year period, with an adjusted EBITDA margin of 40%[3] - Adjusted EBITDA for the three months ended December 31, 2024, was $37,378,000, compared to $14,148,000 in 2023, reflecting a significant increase[20] - The adjusted EBITDA margin improved to 40% for the three months ended December 31, 2024, compared to 22% in the same period of 2023[20] - Adjusted EBITDA for Q4 2024 reached $37,378,000, up from $14,148,000 in Q4 2023, with an Adjusted EBITDA Margin of 40% versus 22% in the prior year[29] Client Metrics - Policies in force grew by 13% year-over-year to approximately 1,674,000, demonstrating effective client retention strategies[4] - Policies in Force rose to 1,674,000 in December 2024, compared to 1,486,000 in December 2023, reflecting an increase in customer base[32] - Client Retention rate decreased to 84% in December 2024 from 86% in December 2023, while Premium Retention remained high at 98%[32] Liquidity and Financial Position - The company had cash and cash equivalents of $58.0 million and an unused line of credit of $74.8 million as of December 31, 2024, indicating strong liquidity[9] - Cash and cash equivalents increased to $54,280,000 as of December 31, 2024, from $41,956,000 in 2023[22] - Total assets grew to $397,653,000 as of December 31, 2024, compared to $354,892,000 in 2023[22] - Total liabilities increased to $358,580,000 as of December 31, 2024, from $338,106,000 in 2023[22] Franchise and Sales Growth - Total Franchise Producers increased to 2,092 in December 2024 from 1,957 in December 2023, indicating growth in the franchise network[32] - Corporate sales agents with less than one year of tenure increased to 253 in December 2024 from 135 in December 2023, indicating a growing sales force[32] - QTD Franchise Productivity for agents with less than one year of tenure improved to $17,861 compared to $10,975 in the previous year, reflecting enhanced productivity[32] Future Outlook - The company expects total written premiums for 2025 to be between $4.65 billion and $4.88 billion, representing 22% to 28% organic growth[15] - Goosehead plans to continue investing in technology and personnel to enhance its competitive position in the personal lines insurance market[4] Revenue Streams - Renewal royalty fees for the twelve months ended December 31, 2024, were $138,942,000, up from $107,524,000 in 2023, indicating strong growth in this revenue stream[20] - The company reported contingent commissions of $24,018,000 for the three months ended December 31, 2024, compared to $3,045,000 in 2023[20] Customer Satisfaction - The Net Promoter Score (NPS) decreased to 89 in December 2024 from 92 in December 2023, suggesting a slight decline in customer satisfaction[32]