NYSE$HGTY

Hagerty Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Hagerty's transformation to a more efficient business model led to improved profitability and growth, supported by strong full-year results.

Hagerty reported strong full-year results, driven by a transformation to a more efficient business model. Total revenue grew by 27% on top of the previous year's 27% growth, with written premiums up by 17%. The company is focused on improving customer experience and expanding operating margins.

  • Hagerty underwent a transformation to improve profitability while maintaining growth.
  • Full-year revenue grew by 27% for the second consecutive year.
  • Written premiums increased by 17%.
  • The company aims to further expand operating margins through customer experience improvements and smart technology investments.

Headline financials

Total Revenue

$245M

Previous: $197M+24.4%
EPS (adj)

-$0.01

Previous: -$0.10+90.0%
Capital Expenditures

-$4.85M

No prior period
Free Cash Flow

-$3.36M

No prior period
Net Income

$12.7M

Previous: -$4.61M+376.4%

Revenue & EPS history

Hagerty · Revenue · Quarterly

$245M

Q4 2023+24.4%vs Q4 2022
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 anticipates a trajectory similar to 2023, expecting another year of double-digit growth by increasing its share of the car enthusiast market and aiming to surpass prior peak margins through continuous improvements and technology investments.

Tailwinds

  • Double-digit compounding growth expected.
  • Increase market share among 67 million car enthusiasts.
  • Work toward and surpass prior peak margins.
  • Improve customer experience.
  • Expand operating margins.

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 Q4 2023

Historical avgQ4 2023

+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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