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Jun 30, 2022
Goosehead Insurance Q2 2022 Earnings Report
Reported strong growth in revenue and earnings, demonstrating the power and consistency of their platform.
Key Takeaways
Goosehead Insurance reported a 39% increase in total revenue to $53.0 million and a 42% increase in total written premium to $566 million. Net income decreased by 24% to $2.4 million, while adjusted EBITDA increased by 85% to $12.5 million.
Total Revenues grew organically 39% over the prior-year period to $53.0 million.
Total written premiums placed increased 42% over the prior-year period to $566 million.
Adjusted EBITDA grew 85% over the prior-year period to $12.5 million.
Adjusted EBITDA Margin increased 6 points over the prior-year period to 24%.
Goosehead Insurance
Goosehead Insurance
Goosehead Insurance Revenue by Segment
Revenue by Segment
Core Revenue
CapyFin.comCost Recovery Revenue
CapyFin.comAncillary Revenue
CapyFin.com Forward Guidance
The Company’s outlook for full year 2022 is as follows:
Positive Outlook
- Total written premiums placed for 2022 are expected to be between $2.152 billion and $2.215 billion, representing organic growth of 38% on the low end of the range to 42% on the high end of the range.
- Total revenues for 2022 are expected to be between $194 million and $205 million, representing organic growth of 28% on the low end of the range to 35% on the high end of the range, driven by high levels of Core Revenue growth partly offset by lower than historical average contingent commissions of $8-10 million for the full year 2022 as our carriers continue to struggle with their underwriting profitability.
- After a year of historical investments in people, technology, and real estate, Adjusted EBITDA Margin is expected to expand for the full year 2022.
- Continued strong revenue growth is expected.
- Expect to see gradual operating leverage emerge beyond 2022.
Challenges Ahead
- Carriers continue to struggle with their underwriting profitability.
- Lower than historical average contingent commissions of $8-10 million for the full year 2022.
- Ongoing macro headwinds.
- Higher non-cash equity-based compensation expense.
- Higher income tax expense.
Revenue & Expenses
Visualization of income flow from segment revenue to net income