NYSE$RYAN

Ryan Specialty Group Holdings, Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Ryan Specialty Group's financial performance in Q1 2022 reflected strong growth and profitability.

Ryan Specialty Group reported a strong first quarter in 2022, with revenue increasing by 24.2% year-over-year to $386.9 million and an organic revenue growth rate of 20.1%. Net income was $18.1 million, or $0.06 per diluted share, while adjusted net income grew 13.3% to $64.7 million, or $0.24 per diluted share.

  • Total revenue increased by 24.2% year-over-year to $386.9 million.
  • Organic revenue growth rate was 20.1% for the quarter.
  • Net income reached $18.1 million, resulting in diluted earnings per share of $0.06.
  • Adjusted net income grew by 13.3% to $64.7 million, with adjusted diluted earnings per share at $0.24.

Headline financials

Total Revenue

$387M

Previous: $311M+24.2%
EPS (adj)

$0.24

Previous: -$0.06+508.9%
Organic Revenue Growth

20.1%

Previous: 18.4%+9.2%
Capital Expenditures

-$2.22M

No prior period
Free Cash Flow

$4.69M

No prior period
Net Income

$6.91M

Previous: -$6.25M+210.6%
Operating Income

$43.4M

Previous: $16M+170.7%
Gross Profit

$387M

Previous: $113M+243.5%
Cash & Equivalents

$1.38B

No prior period
Total Assets

$5.49B

No prior period

Revenue & EPS history

Ryan Specialty Group · Revenue · Quarterly

$387M

Q1 2022+24.2%vs Q1 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Ryan Specialty Group · $387M total across 3 segments · Q1 2022

  • Wholesale Brokerage
    $245M+28.1%
  • Underwriting Management
    $78.9M+21.0%
  • Binding Authority
    $63M+14.4%

Forward guidance

The Company is raising its full year 2022 outlook for both Organic revenue growth rate and Adjusted EBITDAC margin.

Tailwinds

  • Organic revenue growth rate guidance range for the full year 2022 is now 13.5% – 15.5%, compared to the Company’s prior guidance range of 13.0% – 15.0%.
  • Adjusted EBITDAC margin guidance range for the full year 2022 is now 28.5% – 30.0%, compared to the Company’s prior guidance range of 28.0% – 30.0%.
  • The company continues to capitalize on opportunities presented by the ongoing expansion of the E&S market.
  • Highlighting their clear value proposition.
  • Focusing on client service and providing innovative solutions

Headwinds

  • Potential failure to develop a succession plan for the senior management team, including Patrick G. Ryan
  • The Company’s failure to recruit and retain revenue producers
  • Cyclicality of, and the economic conditions in, the markets in which the Company operates
  • Conditions that result in reduced insurer capacity
  • Potential loss of the Company’s relationships with insurance carriers or its clients, becoming dependent upon a limited number of insurance carriers or clients or the failure to develop new insurance carrier and client relationships

Historical earnings impact

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

Avg. return before/after earnings

Based on 17 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.3%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+3.5%

Avg return

30 days after

50%

9 / 18 earnings

Positive

+11.6%

Q1 2022

Best reaction

-22.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-10.5%-15.5%-8.6%
Q3 2025+8.1%+9.4%+14.6%
Q1 2025+3.2%+9.4%+10.4%
Q4 2024-4.7%+0.6%+3.6%
Q3 2024-5.9%-3.5%+7.7%
Q2 2024+11.3%+4.7%+4.9%
Q1 2024-1.8%-0.5%+5.9%
Q4 2023+7.8%+13.9%+17.9%
Q3 2023+2.6%+2.6%+4.5%
Q2 2023-2.0%-1.6%+11.1%
Q1 2023+2.8%+5.3%+2.1%
Q4 2022-3.8%-5.2%-7.9%
Q3 2022-22.5%-22.7%-7.0%
Q2 2022-0.6%+0.4%-5.9%
Q1 2022+11.6%+13.3%+5.6%
Q4 2021-10.7%-7.9%+0.3%
Q3 2021+7.5%+2.2%+2.3%
Q2 2021+2.4%+4.7%+1.8%
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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