Goosehead Insurance sees total revenues grow 23% to $71m in Q3
In its Q3 results, Goosehead Insurance reported that total revenues were $71 million, an increase of 23% compared to the corresponding period in 2022, while net income hit $11.3 million versus $3 million a year ago.
According to Goosehead, the improvement in net income was driven by strong revenue growth and expense discipline.
Goosehead’s Core Revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other income, were $63.1 million, a 22% increase from $51.9 million in the same period last year.
The firm explained that Core Revenue growth was driven by improved productivity, strong client retention of 87%, and rising premium rates.
Meanwhile, Goosehead also grew total written premiums in Q3, which it considers to be the leading indicator of future revenue growth, by 30% to $802.9 million. Elsewhere, policies in force grew 18% from the prior-year period to approximately 1,456,000.
Goosehead said it anticipates total written premiums placed for the whole of 2023 to be between $2.87 billion and $2.99 billion, representing growth of 29% 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 growth of 24% on the low end of the range to 28% on the high end of the range.
Mark E. Jones, Chairman and CEO, commented, “We had excellent third quarter results which further demonstrate the consistency and resilience of our business in the face of substantial macro challenges. For the quarter, premiums increased 30%, revenues were up 23%, core revenues grew 22%, net income grew 271%, and our adjusted EBITDA grew 104% with adjusted EBITDA margin expanding 13 percentage points.
“Our results this year are unfolding as we had planned as we have successfully implemented strategic changes to improve producer productivity and increase earnings power.
The next phase of our execution will be driving accelerating new business production growth in 2024, which we expect to spring load into accelerating revenue and earnings growth in 2025. And we will be driving this improved growth on a significantly higher and further expanding profitability base.
“We have made tremendous progress this year investing in the quality of our people, process and technology. Our improved foundation further enhances our competitive moat and positions us well to execute on our long-term objective of personal lines industry leadership.”
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