The following is a summary of the Goosehead Insurance, Inc. (GSHD) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Goosehead Insurance reported a total Q1 revenue of $64.5 million, an 11% growth from the previous year.

• Total written premiums grew by 28% to $819 million.

• Contingent commissions increased from $1.9 million to $2.7 million.

• Cost recovery revenue declined to $2.5 million from $3.5 million year-over-year.

• Adjusted EBITDA grew from $10.2 million to $11.7 million, maintaining an 18% margin.

• The firm expects an adjusted EBITDA margin expansion for the full year.

• The company ended Q1 with $51 million in cash and cash equivalents, and $9.1 million as free cash flow.

• Estimated total written premiums for 2024 are expected to be between $3.62 billion and $3.82 billion.

Business Progress:

• The company increased the number of franchise producers to 1,963 in Q1.

• Both franchise new business premium and corporate new business saw growth of 19% and 11% respectively.

• The company planned a large stock buyback and is focusing on aiding franchises to add more producers.

• An expectation to end the year with at least 375 corporate agents, supported by a flourishing college recruitment program.

• Guideposts for the year have been revised due to market uncertainty and potential temporary drops in retention rates.

• Structural and foundational improvements have been implemented for future performance.

• A $100 million share repurchase authorization was approved, along with an upsizing of the existing credit facility.

• Despite legislative changes reducing real estate commissions, no negative impacts are anticipated.

• Plans to add hundreds more franchise producers this year, prioritizing quality over quantity.

• Despite retention issues due to increasing home premiums, especially in Texas, improvements are expected by the end of the year or by 2025.

More details: Goosehead Insurance IR

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