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Jun 30, 2023
Goosehead Insurance Q2 2023 Earnings Report
Reported a strong second quarter with revenue and earnings growth, driven by increased premiums and expense discipline.
Key Takeaways
Goosehead Insurance reported a strong second quarter in 2023, with a 31% increase in total revenue to $69.3 million. Net income improved to $7.2 million, and adjusted EBITDA reached $23.1 million, reflecting an 85% increase.
Total revenues grew organically 31% year-over-year to $69.3 million.
Core revenues increased 27% year-over-year to $61.0 million.
Net income improved to $7.2 million from $2.4 million in the prior year, with EPS increasing 825% and adjusted EPS increasing 161%.
Total written premiums placed increased 36% year-over-year to $767.3 million.
Goosehead Insurance
Goosehead Insurance
Goosehead Insurance Revenue by Segment
Revenue by Segment
Core Revenue
CapyFin.com Forward Guidance
The Company is raising its outlook for full year 2023.
Positive Outlook
- Total written premiums placed for 2023 are expected to be between $2.87 billion and $2.99 billion, representing organic growth of 30% on the low end of the range to 35% on the high end of the range.
- Total revenues for 2023 are expected to be between $260 million and $267 million, representing organic growth of 24% on the low end of the range to 28% on the high end of the range.
- Adjusted EBITDA Margin is expected to expand for the full year 2023.
- Company delivered outstanding second quarter results.
- Restructuring of corporate sales team is now complete and is producing extraordinary results.
Challenges Ahead
- Adjusted EBITDA margin and a reconciliation to the most comparable GAAP metric are not provided because they cannot be calculated without unreasonable effort.
- Conditions impacting insurance carriers or other parties with which Goosehead does business
- The loss of one or more key executives or an inability to attract and retain qualified personnel
- The failure to attract and retain highly qualified franchisees
- There are risks and uncertainties described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2022