NASDAQ$GSHD

Goosehead Insurance Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a strong start to the year with revenue growth and improved profitability.

Goosehead Insurance reported a 40% increase in total revenue to $58.0 million and a net loss of $0.2 million, an improvement from the prior year's $5.4 million loss. Core revenue grew by 42% to $52.0 million, and adjusted EBITDA increased to $10.2 million.

  • Total revenues grew organically 40% year-over-year to $58.0 million.
  • Core Revenues increased 42% year-over-year to $52.0 million.
  • Net loss improved to $0.2 million from a net loss of $5.4 million a year ago.
  • Total written premiums placed increased 41% year-over-year to $637.7 million.

Headline financials

Total Revenue

$58M

Previous: $41.3M+40.4%
EPS (adj)

$0.17

Previous: $0.04+325.0%
Policies in Force

1.4M

Previous: 1.1M+23.4%
Client Retention

88.0%

Previous: 89.0%-1.1%
Total Franchise Producers

2.1K

No prior period
Capital Expenditures

-$1.76M

Previous: -$1.73M-1.6%
Free Cash Flow

-$1.84M

Previous: -$3.99M+53.9%
Net Income

-$81K

Previous: -$2.26M+96.4%
Operating Income

$1.47M

Previous: -$6.1M+124.1%
Gross Profit

$58M

Previous: $41.3M+40.4%
Cash & Equivalents

$24.6M

Previous: $21.2M+16.1%
Total Assets

$322M

Previous: $275M+16.8%

Revenue & EPS history

Goosehead Insurance · Revenue · Quarterly

$58M

Q1 2023+40.4%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Goosehead Insurance · $58M total across 3 segments · Q1 2023

  • Core Revenue
    $52M+42.4%
  • Cost Recovery Revenue
    $3.46M+32.3%
  • Ancillary Revenue
    $2.51M+16.2%

Forward guidance

The Company is raising its outlook for full year 2023.

Tailwinds

  • Total written premiums placed for 2023 are expected to be between $2.86 billion and $2.99 billion, representing organic 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 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.
  • Strategic moves are expected to drive strong and profitable growth through the remainder of 2023 and many years beyond.
  • Ongoing improvements in operations, talent, and technology are further expanding the competitive moat in the industry.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.7%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+1.5%

Avg return

30 days after

43%

15 / 35 earnings

Positive

+25.8%

Q2 2024

Best reaction

-18.6%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.5%+7.4%-8.6%
Q4 2025-6.4%-9.5%-16.2%
Q3 2025+8.1%+7.8%+3.9%
Q2 2025-0.5%+2.4%-6.7%
Q1 2025-12.0%-9.4%+2.7%
Q4 2024+15.9%+16.6%+14.2%
Q3 2024+13.2%+14.6%+32.2%
Q2 2024+25.8%+31.1%+19.0%
Q1 2024-11.5%-5.3%+7.2%
Q4 2023-18.6%-15.2%-19.7%
Q3 2023-5.8%-7.8%+4.3%
Q2 2023+4.5%+0.7%-10.1%
Q1 2023+7.3%+5.7%+0.6%
Q4 2022+17.5%+15.7%+29.4%
Q3 2022+15.2%+20.1%+15.0%
Q2 2022+20.4%+12.4%+10.8%
Q1 2022-3.2%+0.3%-9.4%
Q4 2021-0.8%+1.7%-10.8%
Q3 2021-4.2%-9.8%-12.3%
Q2 2021-6.5%-5.2%+8.1%
Q1 2021-3.2%-10.2%-20.9%
Q4 2020-10.6%-21.7%-30.6%
Q3 2020+14.5%+15.6%+14.8%
Q2 2020+21.7%+25.0%+18.9%
Q1 2020-0.1%+1.3%+4.3%
Q4 2019+1.7%+5.1%-6.9%
Q3 2019-16.9%-14.4%-20.8%
Q2 2019-3.7%-2.6%+2.7%
Q1 2019+16.6%+11.6%+22.3%
Q4 2018-7.6%-6.1%-0.1%
Q3 2017-11.9%-21.3%-26.3%
Q3 2018-11.6%-21.7%-29.6%
Q2 2017-4.8%-3.2%+15.6%
Q2 2018-3.2%-0.4%+10.8%
Q1 2018+7.7%+21.5%+43.5%
Q4 2017
Q1 2017

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