Goosehead Insurance, Inc. Announces Fourth Quarter and Full Year 2023 Results
- Strong financial performance in 2023 with total revenue up 25% to $261.3 million
- Core revenue grew 24% to $233.0 million, and net income reached $23.7 million
- Adjusted EBITDA surged 90% to $69.8 million
- Fourth quarter highlights included a 10% increase in total revenues to $63.0 million
- Core revenue grew 10% to $56.9 million, and net income was $5.4 million
- Total written premiums increased by 29% in the fourth quarter
- Policies in force grew by 16% to approximately 1,486,000
- CEO emphasized successful strategic changes to improve productivity and earnings power
- Company aims to drive accelerated new business production growth in 2024
- None.
Insights
The reported financial performance of Goosehead Insurance, Inc. indicates significant growth in several key areas. A 25% increase in total revenue coupled with a 34% increase in total written premiums suggests a robust expansion in the company's business activities. The substantial 650% increase in EPS and a 90% increase in Adjusted EBITDA reflect not only improved profitability but also enhanced operational efficiency. These figures surpass typical industry growth rates, which generally average in the low single digits for established insurance firms. The reported net income margin of 9% is particularly noteworthy, as it demonstrates the company's ability to translate top-line growth into bottom-line results.
Looking ahead, the company's guidance for 2024 forecasts continued organic growth, with total written premiums expected to increase by 25% to 30%. This level of growth, if achieved, would significantly outpace the industry average, potentially leading to market share gains. However, investors should monitor the company's ability to maintain expense discipline, as increased investments in technology and marketing could impact profit margins. The expansion of the Adjusted EBITDA Margin is a positive signal for operational leverage, but the actual figures will be critical to assess the sustainability of this expansion.
The insurance industry is characterized by its reliance on economic factors such as interest rates, regulatory changes and competitive dynamics. Goosehead's reported growth in policies in force, which increased by 16%, indicates a successful acquisition and retention strategy, essential for long-term viability in a competitive market. Moreover, the company's focus on improving productivity through strategic changes, such as the sales leadership reorganization and franchise leadership consolidation, suggests a proactive approach to leveraging its business model for scale.
It's important to contextualize the 86% client retention rate, which is a strong indicator of customer satisfaction and implies a stable recurring revenue base. Additionally, the company's emphasis on expanding its franchise network and productive capacity sets the stage for future revenue streams. The anticipated growth in the franchise network could also diversify revenue sources and reduce reliance on any single market or product, potentially mitigating risks associated with market fluctuations.
From a regulatory standpoint, the insurance sector is heavily influenced by state and federal regulations. The use of non-GAAP measures such as Core Revenue, Adjusted EPS and Adjusted EBITDA requires careful communication to ensure compliance with the Securities and Exchange Commission (SEC) guidelines. These measures provide additional insight into the company's operational performance, but it is essential for stakeholders to understand how these figures reconcile with GAAP metrics. The forward-looking statements regarding future growth must also adhere to SEC regulations, ensuring that they are based on reasonable assumptions and current market conditions.
Furthermore, the expected contingent commissions of approximately 35 basis points of total written premiums must be managed within the framework of insurance industry regulations, which often scrutinize incentive-based compensation for potential conflicts of interest. As the company expands, it will need to navigate an increasingly complex regulatory landscape, including compliance with data protection laws, as investments in technology and client experience often involve handling sensitive personal information.
– Total Revenue Increased
– Core Revenue Grew
– Total Written Premium in 2023 Increased
– 2023 Net Income of
– Adjusted EBITDA in 2023 up
WESTLAKE, Texas, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the fourth quarter and year ended December 31, 2023.
Fourth Quarter 2023 Highlights
- Total Revenues grew
10% over the prior-year period to$63.0 million in the fourth quarter of 2023 - Fourth quarter Core Revenues* of
$56.9 million increased10% over the prior-year period - Fourth quarter net income of
$5.4 million improved from net income of$2.6 million a year ago. EPS of$0.15 per share increased650% and adjusted EPS* of$0.28 per share increased155% , over the prior-year period - Net income margin for the fourth quarter was
9% - Adjusted EBITDA* of
$14.1 million increased from$11.9 million in the prior-year period - Adjusted EBITDA Margin* increased 1 percentage points over the prior-year period to
22% - Total written premiums placed for the fourth quarter increased
29% over the prior-year period to$756.1 million - Policies in force grew
16% from the prior-year period to approximately 1,486,000
*Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EPS to basic earnings per share and Adjusted EBITDA to net income, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.
“We had a tremendous 2023 with premium growth of
Fourth Quarter 2023 Results
For the fourth quarter of 2023, revenues were
Total operating expenses, excluding equity-based compensation, depreciation and amortization and impairment expenses, for the fourth quarter of 2023 were
Net income in the fourth quarter of 2023 was
Liquidity and Capital Resources
As of December 31, 2023, the Company had cash and cash equivalents of
2024 Outlook
Our guidance for the full year 2024 is as follows:
- Total written premiums placed are expected to be between
$3.70 billion and$3.85 billion representing25% organic growth on the low end of the range, and30% organic growth on the high end of the range. - Total revenues are expected to be between
$310 million and$320 million representing19% organic growth on the low end of the range and22% organic growth on the high end of the range. - Contingent commissions for 2024 are expected to be approximately 35 basis points of total written premiums.
- Adjusted EBITDA Margin is expected to expand for the full year 2024.
Conference Call Information
Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.
To access the call by phone, participants should go to this link (registration link), and you will be provided with the dial in details.
In addition, a live webcast of the conference call will also be available on Goosehead’s investor relations website at http://ir.goosehead.com.
A webcast replay of the call will be available at http://ir.goosehead.com for one year following the call.
About Goosehead
Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services through corporate and franchise locations throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 150 insurance companies that underwrite personal and commercial lines. For more information, please visit goosehead.com or goosehead.com/become-a-franchisee.
Forward-Looking Statements
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, 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 and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2023 and in Goosehead’s other filings with the SEC, which are available free of charge on the Securities Exchange Commission's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.
Contacts
Investor Contact:
Dan Farrell
Goosehead Insurance - VP Capital Markets
Phone: (214) 838-5290
Email: dan.farrell@goosehead.com; IR@goosehead.com;
PR Contact:
Mission North for Goosehead Insurance
Email: goosehead@missionnorth.com; PR@goosehead.com
Goosehead Insurance, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenues: | ||||||||||||||||
| Commissions and agency fees | $ | 27,424 | $ | 26,589 | $ | 116,061 | $ | 100,265 | ||||||||
| Franchise revenues | 35,282 | 30,423 | 143,772 | 107,722 | ||||||||||||
| Interest income | 308 | 391 | 1,443 | 1,403 | ||||||||||||
| Total revenues | 63,014 | 57,403 | 261,276 | 209,390 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Employee compensation and benefits | 38,803 | 33,822 | 152,604 | 133,293 | ||||||||||||
| General and administrative expenses | 14,092 | 13,529 | 62,111 | 52,887 | ||||||||||||
| Bad debts | 1,009 | 1,436 | 4,361 | 6,198 | ||||||||||||
| Depreciation and amortization | 2,427 | 1,841 | 9,244 | 6,884 | ||||||||||||
| Total operating expenses | 56,331 | 50,628 | 228,320 | 199,262 | ||||||||||||
| Income from operations | 6,683 | 6,775 | 32,956 | 10,128 | ||||||||||||
| Other Income: | ||||||||||||||||
| Interest expense | (1,511 | ) | (1,588 | ) | (6,568 | ) | (4,999 | ) | ||||||||
| Income before taxes | 5,172 | 5,187 | 26,388 | 5,129 | ||||||||||||
| Tax expense (benefit) | (252 | ) | 2,603 | 2,692 | 2,499 | |||||||||||
| Net Income | 5,423 | 2,584 | 23,696 | 2,630 | ||||||||||||
| Less: net income attributable to non-controlling interests | 1,803 | 2,083 | 9,556 | 2,065 | ||||||||||||
| Net Income attributable to Goosehead Insurance, Inc. | $ | 3,620 | $ | 501 | $ | 14,140 | $ | 565 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.15 | $ | 0.02 | $ | 0.59 | $ | 0.03 | ||||||||
| Diluted | $ | 0.14 | $ | 0.02 | $ | 0.55 | $ | 0.03 | ||||||||
| Weighted average shares of Class A common stock outstanding: | ||||||||||||||||
| Basic | 24,688 | 22,373 | 23,929 | 20,995 | ||||||||||||
| Diluted | 25,516 | 23,900 | 38,356 | 21,773 | ||||||||||||
Goosehead Insurance, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenues: | ||||||||||||||||
| Core Revenue: | ||||||||||||||||
| Renewal Commissions(1) | $ | 17,335 | $ | 16,310 | $ | 70,730 | $ | 57,543 | ||||||||
| Renewal Royalty Fees(2) | 27,180 | 22,900 | 107,524 | 77,346 | ||||||||||||
| New Business Commissions(1) | 5,512 | 5,814 | 23,411 | 24,126 | ||||||||||||
| New Business Royalty Fees(2) | 5,349 | 4,402 | 23,168 | 18,244 | ||||||||||||
| Agency Fees(1) | 1,532 | 2,421 | 8,174 | 10,912 | ||||||||||||
| Total Core Revenue | 56,908 | 51,847 | 233,007 | 188,171 | ||||||||||||
| Cost Recovery Revenue: | ||||||||||||||||
| Initial Franchise Fees(2) | 2,458 | 2,910 | 11,238 | 10,853 | ||||||||||||
| Interest Income | 308 | 391 | 1,443 | 1,403 | ||||||||||||
| Total Cost Recovery Revenue | 2,766 | 3,301 | 12,681 | 12,256 | ||||||||||||
| Ancillary Revenue: | ||||||||||||||||
| Contingent Commissions(1) | 3,045 | 2,044 | 13,746 | 7,684 | ||||||||||||
| Other Franchise Revenues(2) | 295 | 211 | 1,843 | 1,279 | ||||||||||||
| Total Ancillary Revenue | 3,340 | 2,255 | 15,588 | 8,963 | ||||||||||||
| Total Revenues | 63,014 | 57,403 | 261,276 | 209,390 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Employee compensation and benefits, excluding equity-based compensation | 33,765 | 30,536 | 128,615 | 113,651 | ||||||||||||
| General and administrative expenses, excluding impairment | 14,092 | 13,529 | 58,483 | 52,887 | ||||||||||||
| Bad debts | 1,009 | 1,436 | 4,361 | 6,198 | ||||||||||||
| Total | 48,866 | 45,501 | 191,459 | 172,736 | ||||||||||||
| Adjusted EBITDA | 14,148 | 11,902 | 69,817 | 36,654 | ||||||||||||
| Adjusted EBITDA Margin | 22 | % | 21 | % | 27 | % | 18 | % | ||||||||
| Interest expense | (1,511 | ) | (1,588 | ) | (6,568 | ) | (4,999 | ) | ||||||||
| Depreciation and amortization | (2,427 | ) | (1,841 | ) | (9,244 | ) | (6,884 | ) | ||||||||
| Tax (expense) benefit | 252 | (2,603 | ) | (2,692 | ) | (2,499 | ) | |||||||||
| Equity-based compensation | (5,038 | ) | (3,286 | ) | (23,989 | ) | (19,642 | ) | ||||||||
| Impairment expense | — | — | (3,628 | ) | — | |||||||||||
| Net Income | $ | 5,424 | $ | 2,584 | $ | 23,696 | $ | 2,630 | ||||||||
| Net Income Margin | 9 | % | 5 | % | 9 | % | 1 | % | ||||||||
(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the Condensed Consolidated Statements of Operations within Goosehead’s Form 10-K for the three and twelve months ended December 31, 2023 and 2022.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in "Franchise revenues" as shown on the Condensed Consolidated Statements of Operations within Goosehead’s Form 10-K for the three and twelve months ended December 31, 2023 and 2022.
Goosehead Insurance, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except par value amounts)
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 41,956 | $ | 28,743 | ||||
| Restricted cash | 2,091 | 1,644 | ||||||
| Commissions and agency fees receivable, net | 12,903 | 14,440 | ||||||
| Receivable from franchisees, net | 9,720 | 4,932 | ||||||
| Prepaid expenses | 7,889 | 4,334 | ||||||
| Total current assets | 74,559 | 54,093 | ||||||
| Receivable from franchisees, net of current portion | 9,269 | 23,835 | ||||||
| Property and equipment, net of accumulated depreciation | 30,316 | 35,347 | ||||||
| Right-of-use asset | 38,406 | 44,080 | ||||||
| Intangible assets, net of accumulated amortization | 17,266 | 4,487 | ||||||
| Deferred income taxes, net | 181,209 | 155,318 | ||||||
| Other assets | 3,867 | 4,193 | ||||||
| Total assets | $ | 354,892 | $ | 321,353 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 16,398 | $ | 15,958 | ||||
| Premiums payable | 2,091 | 1,644 | ||||||
| Lease liability | 8,897 | 6,627 | ||||||
| Contract liabilities | 4,129 | 6,031 | ||||||
| Note payable | 9,375 | 6,875 | ||||||
| Total current liabilities | 40,890 | 37,135 | ||||||
| Lease liability, net of current portion | 57,382 | 64,947 | ||||||
| Note payable, net of current portion | 67,562 | 86,711 | ||||||
| Contract liabilities, net of current portion | 22,970 | 40,522 | ||||||
| Liabilities under tax receivable agreement | 149,302 | 125,662 | ||||||
| Total liabilities | 338,106 | 354,977 | ||||||
| Class A common stock, | 250 | 228 | ||||||
| Class B common stock, | 130 | 146 | ||||||
| Additional paid in capital | 103,228 | 70,866 | ||||||
| Accumulated deficit | (47,056 | ) | (60,570 | ) | ||||
| Total stockholders' equity | 56,552 | 10,670 | ||||||
| Non-controlling interests | (39,766 | ) | (44,294 | ) | ||||
| Total equity | 16,786 | (33,624 | ) | |||||
| Total liabilities and equity | $ | 354,892 | $ | 321,353 | ||||
Goosehead Insurance, Inc.
Reconciliation Non-GAAP Measures to GAAP
This release includes Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). The Company refers to these measures as “non-GAAP financial measures.” The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS for business planning purposes and in measuring its performance relative to that of its competitors.
These non-GAAP financial measures are defined by the Company as follows:
- "Core Revenue" is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.
- "Cost Recovery Revenue" is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.
- "Ancillary Revenue" is a supplemental measure of our performance and includes Contingent Commissions and Other Income. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.
- "Adjusted EBITDA" is a supplemental measure of the Company's performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.
- "Adjusted EBITDA Margin" is Adjusted EBITDA as defined above, divided by total revenue excluding other non-operating items. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
- "Adjusted EPS" is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.
While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company’s industry, may calculate such measures differently, which reduces their usefulness as comparative measures.
The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and twelve months ended December 31, 2023 and 2022 (in thousands):
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||
| Total Revenues | $ | 63,014 | $ | 57,403 | $ | 261,276 | $ | 209,390 | |||
| Core Revenue: | |||||||||||
| Renewal Commissions(1) | $ | 17,335 | $ | 16,310 | $ | 70,730 | $ | 57,543 | |||
| Renewal Royalty Fees(2) | 27,180 | 22,900 | 107,524 | 77,346 | |||||||
| New Business Commissions(1) | 5,512 | 5,814 | 23,411 | 24,126 | |||||||
| New Business Royalty Fees(2) | 5,349 | 4,402 | 23,168 | 18,244 | |||||||
| Agency Fees(1) | 1,532 | 2,421 | 8,174 | 10,912 | |||||||
| Total Core Revenue | 56,908 | 51,847 | 233,007 | 188,171 | |||||||
| Cost Recovery Revenue: | |||||||||||
| Initial Franchise Fees(2) | 2,458 | 2,910 | 11,238 | 10,853 | |||||||
| Interest Income | 308 | 391 | 1,443 | 1,403 | |||||||
| Total Cost Recovery Revenue | 2,766 | 3,301 | 12,681 | 12,256 | |||||||
| Ancillary Revenue: | |||||||||||
| Contingent Commissions(1) | 3,045 | 2,044 | 13,746 | 7,684 | |||||||
| Other Franchise Revenues(2) | 295 | 211 | 1,843 | 1,279 | |||||||
| Total Ancillary Revenue | 3,340 | 2,255 | 15,588 | 8,963 | |||||||
| Total Revenues | $ | 63,014 | $ | 57,403 | $ | 261,276 | $ | 209,390 | |||
(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in "Commissions and agency fees" as shown on the Condensed Consolidated Statements of Operations.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in "Franchise revenues" as shown on the Condensed Consolidated Statements of Operations.
The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and twelve months ended December 31, 2023 and 2022 (in thousands):
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net Income | $ | 5,424 | $ | 2,584 | $ | 23,696 | $ | 2,630 | ||||||||
| Interest expense | 1,511 | 1,588 | 6,568 | 4,999 | ||||||||||||
| Depreciation and amortization | 2,427 | 1,841 | 9,244 | 6,884 | ||||||||||||
| Tax expense (benefit) | (252 | ) | 2,603 | 2,692 | 2,499 | |||||||||||
| Equity-based compensation | 5,038 | 3,286 | 23,989 | 19,642 | ||||||||||||
| Impairment expense | — | — | 3,628 | — | ||||||||||||
| Other (income) expense | — | — | — | — | ||||||||||||
| Adjusted EBITDA | $ | 14,148 | $ | 11,902 | $ | 69,817 | $ | 36,654 | ||||||||
| Net Income Margin(1) | 9 | % | 5 | % | 9 | % | 1 | % | ||||||||
| Adjusted EBITDA Margin(2) | 22 | % | 21 | % | 27 | % | 18 | % | ||||||||
(1) Net Income Margin is calculated as Net Income divided by Total Revenue (
(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue (
The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and twelve months ended December 31, 2023 and 2022. Note that totals may not sum due to rounding:
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Earnings per share - basic (GAAP) | $ | 0.15 | $ | 0.02 | $ | 0.59 | $ | 0.03 | ||||
| Add: equity-based compensation(1) | 0.13 | 0.09 | 0.64 | 0.52 | ||||||||
| Add: impairment expense(2) | — | — | 0.10 | — | ||||||||
| Adjusted EPS (non-GAAP) | $ | 0.28 | $ | 0.11 | $ | 1.33 | $ | 0.55 | ||||
(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [
(2) Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [
Goosehead Insurance, Inc.
Key Performance Indicators
| December 31, 2023 | December 31, 2022 | |||||||
| Corporate sales agents < 1 year tenured | 135 | 165 | ||||||
| Corporate sales agents > 1 year tenured | 165 | 155 | ||||||
| Operating franchises < 1 year tenured | 183 | 472 | ||||||
| Operating franchises > 1 year tenured | 1,043 | 941 | ||||||
| Total Franchise Producers | 1,957 | 2,101 | ||||||
| QTD Corporate Agent Productivity < 1 Year(1) | $ | 13,789 | $ | 13,241 | ||||
| QTD Corporate Agent Productivity > 1 Year(1) | $ | 25,738 | $ | 27,228 | ||||
| QTD Franchise Productivity < 1 Year(2) | $ | 10,975 | $ | 8,481 | ||||
| QTD Franchise Productivity > 1 Year(2) | $ | 21,103 | $ | 18,059 | ||||
| Policies in Force | 1,486,000 | 1,284,000 | ||||||
| Client Retention | 86 | % | 88 | % | ||||
| Premium Retention | 101 | % | 100 | % | ||||
| QTD Written Premium (in thousands) | $ | 756,082 | $ | 584,575 | ||||
| Net Promoter Score ("NPS") | 92 | 90 | ||||||
(1) - Corporate Productivity is New Business Production per Agent (Corporate): The New Business Revenue collected related to corporate sales, divided by the average number of full-time corporate sales agents for the same period. This calculation excludes interns, part-time sales agents and partial full-time equivalent sales managers.
(2) - Franchise Productivity is New Business Production per Agent (Franchise): The gross commissions paid by Carriers and Agency Fees received related to policies in their first term sold by franchise sales agents divided by the average number of franchise sales agents for the same period prior to paying Royalty Fees to the Company.
Goosehead Insurance, Inc.
Supplemental Disclosure
| Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |||||||||||||||||
| Corporate sales agents < 1 year tenured | 135 | 132 | 146 | 117 | 165 | 241 | 312 | 297 | ||||||||||||||||
| Corporate sales agents > 1 year tenured | 165 | 184 | 134 | 159 | 155 | 170 | 191 | 193 | ||||||||||||||||
| Operating franchises < 1 year tenured | 183 | 254 | 348 | 426 | 472 | 465 | 421 | 383 | ||||||||||||||||
| Operating franchises > 1 year tenured | 1,043 | 1,031 | 996 | 961 | 941 | 938 | 923 | 885 | ||||||||||||||||
| Total Franchise Producers | 1,957 | 2,008 | 2,069 | 2,098 | 2,101 | 2,102 | 2,005 | 1,912 | ||||||||||||||||
| Corporate Agent Productivity < 1 Year(1) | $ | 13,789 | $ | 16,266 | $ | 23,664 | $ | 19,747 | $ | 13,241 | $ | 12,206 | $ | 13,935 | $ | 10,442 | ||||||||
| Corporate Agent Productivity > 1 Year(1) | $ | 25,738 | $ | 28,963 | $ | 33,323 | $ | 30,429 | $ | 27,228 | $ | 27,952 | $ | 28,803 | $ | 26,245 | ||||||||
| Franchise Productivity < 1 Year(2) | $ | 10,975 | $ | 9,583 | $ | 9,606 | $ | 9,020 | $ | 8,481 | $ | 9,370 | $ | 9,435 | $ | 8,532 | ||||||||
| Franchise Productivity > 1 Year(2) | $ | 21,103 | $ | 22,305 | $ | 23,348 | $ | 20,812 | $ | 18,059 | $ | 21,293 | $ | 21,681 | $ | 20,135 | ||||||||
(1) - Corporate Productivity is New Business Production per Agent (Corporate): The New Business Revenue collected related to corporate sales, divided by the average number of full-time corporate sales agents for the same period. This calculation excludes interns, part-time sales agents and partial full-time equivalent sales managers.
(2) - Franchise Productivity is New Business Production per Agent (Franchise): The gross commissions paid by Carriers and Agency Fees received related to policies in their first term sold by franchise sales agents divided by the average number of franchise sales agents for the same period prior to paying Royalty Fees to the Company.
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