Goosehead sees $10.9mn net income growth in Q2 2024, revenues up 13%

Goosehead, an independent personal lines insurance agency, has announced its financial results for the second quarter of 2024, reporting an increased net income of $10.9mn, compared to the $7.2mn reported in the same period last year.

Mark Miller, President and CEO, stated: “Our excellent second quarter 2024 results reinforce our return to an accelerating profitable growth phase as total revenue was up 13%, core revenue grew 20%, premiums increased 30% and a significant number of new high-quality producers were added to both corporate and franchise networks during the quarter.”

For Q2 2024, Goosehead’s total revenue was $78.1mn, compared to the $69.3mn reported in Q2 2023. Core revenue for this year’s Q2 was $73.4mn compared to $61.0mn in the prior-year period.

According to the firm, core revenue growth was driven by improved productivity, strong client retention of 84%, and rising premium rates.

The growth in the company’s total written premiums in this year’s Q2, $998.9mn, is considered to be the leading indicator of future revenue growth, Goosehead noted.

Total operating expenses, excluding equity-based compensation, depreciation and amortisation, and impairment expenses for the second quarter of 2024 were $53.4mn, up 16% from $46.2mn reported in the same period last year.

Goosehead also reported earnings per share and net income margin for the second quarter of 2024 were $0.25 and 14%, respectively. Total Adjusted EBITDA was $24.7mn for the quarter compared to $23.1mn in Q2 2023.

The company also noted that the Adjusted EBITDA Margin of 32% remained flat compared to the prior-year period.

CEO Miller added: “We are particularly pleased that new business productivity continues to trend well despite continued headwinds from product availability and housing. New business productivity per franchise increased 54% in the quarter, representing the 6th consecutive quarter of accelerating growth.

“Importantly, new business gains in the franchise network today will have more meaningful impact on revenue growth in 2025 as current new business converts to renewal revenue and we retain a larger portion of the economics.

He continued: “We were also very excited to repurchase over $63 million worth of Goosehead Class A shares since last quarter at what we view as highly attractive levels. Our strong balance sheet with conservative leverage, and our growing cash flow generation gives us multiple options to increase shareholder value.

“We believe our operations have never been stronger, and I am excited for our unmatched runway for substantial future growth in revenue and earnings. I want to thank our employees, franchises, and carrier partners for their tireless efforts that help us achieve these exceptional results.”

Further, Goosehead reiterated its guidance for full year 2024 as follows:

• Total written premiums placed for 2024 are expected to be between $3.62 billion and $3.82 billion, representing growth of 22% on the low end of the range to 29% on the high end of the range.
• Total revenues for 2024 are expected to be between $290 million and $310 million, representing growth of 11% on the low end of the range to 19% on the high end of the range.
• Adjusted EBITDA Margin is expected to expand for the full year 2024.

The post Goosehead sees $10.9mn net income growth in Q2 2024, revenues up 13% appeared first on ReinsuranceNe.ws.