Hagerty(HGTY)2025-03-04 12:07Revenue Growth - Full year 2024 Total Revenue increased 20% year-over-year to $1.200 billion, with Written Premium up 15% to $1.044 billion[6]. - For 2025, Hagerty anticipates Total Revenue growth of 12-13% and Written Premium growth of 13-14%[14]. - Total revenue for the three months ended December 31, 2024, was $291,731,000, representing a 19.1% increase from $245,043,000 in the same period of 2023[23]. - For the year ended December 31, 2024, total revenue was $1,200,038,000, a 20.0% increase from $1,000,213,000 in 2023[25]. - Total revenue rose to $1,200,038,000, reflecting a 20.0% increase from $1,000,213,000 in the previous year[31]. Net Income and Earnings - Full year 2024 Net Income surged 178% to $78.3 million, while Adjusted EBITDA rose 41% to $124.5 million[6]. - The company expects Net Income growth of 30-40% and Adjusted EBITDA growth of 21-29% in 2025, incorporating $20 million in elevated technology investments[14]. - Net income for the year rose to $78,303,000, reflecting a 177.9% increase from $28,179,000 in 2023[25]. - The consolidated net income for the year ended December 31, 2024, was $78,303,000, compared to $28,179,000 in 2023, showing a substantial increase[41]. - The adjusted consolidated net income for the year ended December 31, 2024, was $86,847,000, up from $16,636,000 in 2023, indicating strong year-over-year growth[41]. Operating Performance - Fourth quarter 2024 Operating Income increased 538% year-over-year to $66.4 million, with a full year Operating Income margin expanding by 450 basis points[8][10]. - Operating income for the year increased dramatically by 538.1% to $66,418,000 from $10,408,000 in the previous year[25]. - Operating income improved significantly to $6,038,000, a 193.3% increase from a loss of $6,473,000 in the previous year[23]. - Adjusted EBITDA for the year was $124,473,000, representing a 41.2% increase from $88,162,000 in 2023[31]. Membership and Marketplace Growth - Hagerty added a record 279,000 new members in 2024, contributing to a 90% increase in Marketplace revenue to $54.3 million[3][6]. - Hagerty's membership revenue for 2024 increased 10% year-over-year to $57.5 million, with Hagerty Drivers Club paid members rising 7% to approximately 876,000[8]. - Membership, marketplace, and other revenue surged by 68.4%, reaching $33,901,000 compared to $20,135,000 in the prior year[23]. Policy and Retention Metrics - Policies in Force Retention improved to 89.0% as of December 31, 2024, with total insured vehicles increasing 8% year-over-year to 2.6 million[8]. - The number of new business counts in insurance grew to 278,556, a 9.5% increase from 254,386 in 2023[31]. Financial Position - Total assets as of December 31, 2024, amounted to $1,709,338,000, up from $1,588,212,000 in 2023[27]. - Total liabilities increased slightly to $1,101,169,000 from $1,094,867,000 year-over-year[27]. - The company reported a net cash provided by operating activities of $177,024,000, compared to $133,706,000 in 2023[31]. - Ending cash and cash equivalents decreased to $232,845,000 from $724,276,000 in 2023[31]. Earnings Per Share - The company reported a basic earnings per share of $0.10 for the year ended December 31, 2024, down from $0.19 in 2023[25]. - The Basic EPS for the year ended December 31, 2024, was $0.10, down from $0.19 in 2023, while the Adjusted EPS increased to $0.24 from $0.04[41]. Loss Ratios and Other Metrics - The fourth quarter 2024 Loss Ratio was 42.8%, including a 2.4% impact from catastrophe losses, compared to 41.5% in the prior year[8]. - The Hagerty Re loss ratio increased to 46.4% from 41.5%, indicating a 4.9% rise[31]. - The company experienced a loss of $5,529,000 attributable to non-controlling interest for the three months ended December 31, 2023, highlighting volatility in this area[41].