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Sep 30, 2022
Goosehead Insurance Q3 2022 Earnings Report
Total and core revenue increased, with written premium also seeing growth. Net income decreased, but adjusted EBITDA increased with margin expansion.
Key Takeaways
Goosehead Insurance reported strong growth in revenue and earnings for Q3 2022. Total revenues increased by 38% to $57.7 million, and core revenues grew by 39%. Total written premiums increased by 42% to $616 million. Net income decreased to $3.0 million, while adjusted EBITDA increased by 67% to $11.0 million with margin up over 320 basis points.
Total revenues grew organically 38% year-over-year to $57.7 million.
Core revenues increased 39% year-over-year to $51.9 million.
Net income decreased 43% to $3.0 million, with EPS decreasing 55% and adjusted EPS declining 8%.
Adjusted EBITDA grew 67% year-over-year to $11.0 million, with adjusted EBITDA margin increasing to 19%.
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 $2.176 billion and $2.215 billion, representing organic growth of 40% 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 $7-10 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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