NYSE$HGTY

Hagerty Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Hagerty acquired Broad Arrow Group and saw success in its first live auction as Hagerty Marketplace.

Hagerty's Q3 2022 highlights include the acquisition of Broad Arrow Group and a successful first live auction as Hagerty Marketplace, with $55 million in sales and 88% of lots sold. The company focuses on expanding its vehicle marketplace and managing expenses for future growth, while the insurance business continues to show double-digit written premium growth.

  • Completed the acquisition of Broad Arrow Group to build high-trust platforms for members.
  • Hagerty Marketplace tallied $55 million in sales at its first live auction.
  • Collectible cars are a durable asset class, appreciating over 8% annually for the last 15 years.
  • Insurance business continues to drive double-digit written premium growth with a high Net Promoter Score.

Headline financials

Total Revenue

$217M

Previous: $168M+29.0%
EPS (adj)

-$0.06

Previous: -$4.79+98.7%
Written premium

$10.00

No prior period
Net Income

$14.7M

Previous: -$479K+3171.8%
Operating Income

-$21.2M

Previous: $1.76M-1307.2%
Gross Profit

$217M

Previous: $168M+29.0%
Cash & Equivalents

$180M

Previous: $47.9M+276.8%
Total Assets

$1.34B

Previous: $117M+1045.6%

Revenue & EPS history

Hagerty · Revenue · Quarterly

$217M

Q3 2022+29%vs Q3 2021
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Revenue by segment

Hagerty · $152M total across 2 segments · Q1 2022

  • Earned premium
    $89.1M
  • Commission & fee
    $62.5M

Forward guidance

Hagerty is focused on managing expenses and allocating resources to high-growth profit opportunities to weather economic headwinds and position the company for the next economic up-cycle.

Tailwinds

  • Actively managing expenses to allocate resources to high growth profit opportunities
  • Right-sized cost structure will position Hagerty to weather near-term economic headwinds
  • Team is focused on efficiently executing against strategic priorities
  • Delivering excellent customer experiences and a superior value proposition
  • Hagerty is well positioned to emerge from this economic downturn stronger than ever

Headwinds

  • Battening down the hatches against the rough seas of the current economy
  • Elements of non-insurance offerings expected to become increasingly material drivers of revenue and profitability
  • Insurance still represents over 90% of current revenue
  • Durability and resilience will be key themes for us in the quarters to come
  • The bar is high

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.3%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+6.2%

Avg return

30 days after

58%

11 / 19 earnings

Positive

+10.0%

Q3 2023

Best reaction

-5.5%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%-2.8%+0.8%
Q4 2025+4.3%-8.9%-10.6%
Q3 2025-1.8%+10.1%+12.8%
Q1 2025+7.0%+6.0%+12.8%
Q4 2024-0.9%-2.4%-12.7%
Q3 2024-5.5%-5.8%-5.9%
Q2 2024-4.8%-2.5%+7.7%
Q1 2024+1.7%-2.2%+8.5%
Q4 2023+0.1%-5.6%-5.2%
Q3 2023+10.0%+9.2%+10.1%
Q2 2023+0.1%+7.9%+1.2%
Q1 2023+5.1%-2.3%+1.1%
Q4 2022-0.4%+6.9%+7.1%
Q3 2022+7.6%+1.5%-1.5%
Q2 2022+3.6%+18.8%+1.9%
Q1 2022+1.3%+10.7%+32.7%
Q4 2021-0.7%-17.3%-29.3%
Q3 2021-0.1%+0.0%+82.9%
Q2 2021+0.5%-1.0%+2.8%
Q1 2021
Q4 2020

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