NYSE$RYAN

Ryan Specialty Group Holdings, Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Ryan Specialty Group's Q3 2022 performance was marked by revenue growth and profitability.

Ryan Specialty Group reported a 16.8% increase in total revenue, reaching $412.0 million, driven by a 13.7% organic revenue growth rate. Net income increased to $29.3 million, with diluted earnings per share at $0.09. Adjusted EBITDAC grew by 11.2% to $116.8 million, and adjusted net income rose by 5.7% to $66.6 million, resulting in adjusted diluted earnings per share of $0.25.

  • Total revenue increased by 16.8% year-over-year to $412.0 million.
  • Organic revenue growth rate was 13.7% for the quarter.
  • Net income increased to $29.3 million, with diluted earnings per share at $0.09.
  • Adjusted EBITDAC increased 11.2% to $116.8 million.

Headline financials

Total Revenue

$412M

Previous: $353M+16.8%
EPS (adj)

$0.25

Previous: $0.24+4.2%
Organic Revenue Growth

13.7%

Previous: 28.9%-52.6%
Capital Expenditures

-$12M

Previous: -$6.43M-87.1%
Free Cash Flow

-$281K

Previous: -$7.76M+96.4%
Net Income

$11.7M

Previous: -$1.33M+980.4%
Operating Income

$61.3M

Previous: -$730K+8503.3%
Gross Profit

$412M

Previous: $353M+16.7%
Cash & Equivalents

$1.54B

Previous: $414M+271.8%
Total Assets

$5.69B

Previous: $4.86B+17.1%

Revenue & EPS history

Ryan Specialty Group · Revenue · Quarterly

$412M

Q3 2022+16.8%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Ryan Specialty Group · $408M total across 3 segments · Q3 2022

  • Wholesale Brokerage
    $267M+16.6%
  • Underwriting Management
    $84.7M+19.9%
  • Binding Authority
    $55.6M+5.3%

Forward guidance

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

Tailwinds

  • Organic revenue growth rate guidance range for the full year 2022 is now 14.5 – 16.0%.
  • Adjusted EBITDAC margin guidance range for the full year 2022 is now 29.5% - 30.0%.

Headwinds

  • Considering current and developing market factors impacting the binding of project-based construction and M&A transactional liability policies.
  • Observed shifts in the market for public company D&O insurance.

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 Q3 2022

Historical avgQ3 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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