Goosehead Insurance(US:GSHD)2024-04-25 01:58Financial 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]