Goosehead Insurance (GSHD) 26 Jul 232023 Q2 Earnings call transcript

Hello and thank you for standing by. Welcome to Goosehead Insurance Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions].

I would now like to turn the call over to Dan Farrell, VP of Capital Markets. begin. may you Sir,

good and afternoon. you Thank

on our Before of remind forward-looking today. I and based to remarks, that we statements, of part as are include begin everyone may of need today estimates formal our management expectations, the which projections discussion

factors in could other These cause those to materially are statements actual uncertainties be are results We refer Goosehead Insurance. our expressed financial disclaim to predict, for the the filings guarantees of discussion therefore, not placed and should forward-looking condition any from them. in are statements. SEC discussion results We statements of various Forward-looking by difficult the to or to obligation risks, except to intention any assumptions, subject of extent operating performance, all law. and risks upon revise that which and forward-looking reliance our required implied could update and applicable differ and future recent undue more statements, that or detailed to of a uncertainties or you future impact not

amortization period depreciation, excluding our core differences position, caused of potential be useful in believe certain metrics out when also evaluating performance. prepared from during structure, are for GAAP. management that and to we tax measures investors would We uses with these in point by representative financial are discuss that comparisons measures and period by to facilitate to like will accordance the call, not non-GAAP these other business. non-GAAP financial Management operating planning, to not performance capital certain financial monitoring items I variations measures and we that consider our

recent reconciliations refer non-GAAP of For release. measures the more today's measures, we including the financial to GAAP measures, information of comparable earnings regarding these you to financial use most

webcast. the website version being of after call shortly the Relations archived be In Investor company's @goosehead.com. ends An is on will available call portion addition, this the

Mark Jones. and over turn Now to the to our call I'd CEO, Chairman like

and Dan, XXXX welcome results call. Thanks our to QX to everyone

with to and housing Meaning that to and that growth. extraordinarily pleased conditions the delivered an harder a year and sluggish we've also we smarter challenging industry to profitability. working market. have are made but believe very restructure business the last line continue the profitable market strong both insurance and I'm I'm decisions drive helping strong taken report sustainable over plans we've and say we our been actions successfully to improvements happy navigate hard growth producing strong top to

XX% model. in QX choice distribution of points quality Summary link with These focused margin growth results revenue expansion our of EBITDA XX% in tightly powerful on chain for execution of our adjusted premium the XX% XXX and include a results and growth revenue basis value strategy core growth XX%. strength the underscore the to

we've seen we've and business time clients each in years challenging XX the Our circumstances. market. the same focus many applied maniacal external But our on

portfolio. our proactive and circle example and broadening industry our their competitors approach hands focused aggressive One we've to turbulence externally product internally, with on of share. While the focus wring capturing our been is wagons, worry

a is headwind access in product regions. reduced While some

model to and to that out choice through Our distribute looking carriers at allows seek are us scale. gain us share

our we've to XX So carriers boarded this platform. on far new year,

attractive partner unique quality us to Our technology, scale, carrier capital human control, make looking and an any grow. for

existing challenges. all of not new hitting today partners we have this flow. relationships withstanding referral deeper Our focus, to acquiring and new agents business laser in penetrating Because bolster engaged external completely their production remain lead time with highs agents

pull product of today. decides When we a COVID platform are Black from not market inflation agents is carriers to driving we're to out impacts the underwriter, an plague that volatility unaffected, continue carrier significantly product Most their platform struggle insulated than costs. of or event, single sell. with to the single claims of are left While market, higher a experiencing the a and with nothing Swan

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and turn I'll to time Mark Miller. the that President Operating Chief over With Officer,

Thanks, afternoon, good everyone. Mark, and

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Mark the Financial our Jones turn Chief Officer. to Now I'll call over Jr.,

Mark. Thanks,

and top they through very of pleased unprecedented incredibly exceptional operating discipline P&C navigate challenges. our proud delivering of then grit results challenging increasingly and be I'm bottom-line environment. to team We're product the as the

have massive. We share, continued to remains runway gain our but

market still of year-end. $XXX share be by X% We billion will this under industry

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year out do Moving exactly been we've to our what results, set ago. delivering to we a

have productivity. We improved profitability significantly and agent

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producer we productivity count to our XXXX. growth improvement, back expect revenue and drive reacceleration see add continue to to and a we premium of As throughout

XX% base. results We XXXX. range much XXXX expect our and between higher of XX% the profitability CAGR to We top-line ability be and on in deliver in to remain a EBITDA XXXX and achieving these roughly margin still confident improving premium through

larger Over business total renewal premium. of can we portion of the becomes the our XX% the margins matures the that the be range in belief longer and book a term, as maintain

second XXX ago. from million period. XX% XX% premiums leading Our prior premium in revenue the This up over franchise our the premium million XXX XX% up million, year indicator future increased XXX of corporate a and to of quarter, includes the up year

X.X end Our at up were year quarter policies from ago. million enforced XX% a

revenue Total by client driven million up for increase an period. the XX.X core of productivity per revenue high This continued year improved retention, the million, tailwinds. XX% quarter includes $XX was of and from pricing XX% agent ago

revenue recognition, franchises, the increases longer agent more of on As we the of revenue revenue to the creates as through because near a term launch term themselves significantly hiring. this differences producer off growth agents productive duplicate into benefits profitability continue and trade corporate and but they life in

in a quarter growth-based the compared profitability uniform contingencies as to million compared commissions Contingent are million were the underwriting X X.X year as ago typically to contingencies. timing more of

for continue be full basis year around points XX of to the premium year. contingencies to full We expect

steady the to by the quality. In franchises higher of [indiscernible] franchises and significantly average franchise operating in underperforming as we the replacing them network, were with continue of removing quarter those

are and franchise similar agents nothing best agencies removing from contribute top we to to production. new our corporate system the almost business agents have Our productivity the

the producers XXXX franchise of was X%. up end at Total quarter at the

in accounts on We in XXXX, in to gains. to trend down greater the our and business productivity franchise franchise focus year-over-year expect finish the both as we operating work producer accelerate franchise then and XXXX, and flat through balance moderately restructuring

at should total rate Importantly, the faster the productive capacity of than workforce our producer a count. agent increase

productivity expect fully term the premium support back are are and the combination removed. versus objectives. to of system quality we growth As producers will longer higher growth, producer retention We being improvement adding the that those

Other year our XX% have debts we operating year improved compensation, Total a driven focus Bad functions, offset and improved ago. signed by million growth. amortization discipline well XX% to expenses, increase and excluding up technology, launched compared $XX.X expense, right-sizing XX% pool as for service were we franchises. a partnerships, one-time from by increased charges reinvestment to expenses, yet and ago. X.X and of an as substantially G&A partially equity-based benefits our from impairment continue the account year XXX,XXX excluding marketing on million, $XX.X we and versus not of quality excluding quarter. and depreciation of Compensation producer Shifting the to was but our ago perform investments to equity-based expense million, compensation

quarter, the of Space our Office resulting of charge $X.X one-time some During we million. impairment existing consolidated non-cash in a

We and to for expansion consecutive improve expansion accomplishment have excluding of EBITDA the team. continued profile the the five seven of company commissions, quarters margin of consecutive a quarters whole margin fantastic EBITDA generating margin contingent

the ago EBITDA up quarter, the from year while XX% was in XX% to $XX.X year Adjusted period. in quarter million, margin EBITDA XX% from the increased ago adjusted

expect ramp For the we and the corporate remainder technology. in margin growth areas agent including investments of a more marketing year, headcount, as for of we improvement modest number

XXXX, equivalents of cash XX $XX.X had we cash June of As million. and

XX.X of Our given an insurance $XX We're and sheet conditions. principle. market was we balance million managing additional very payable was balance outstanding as our at term notes million, quarter unused total down credit line paid end conservatively million $XX.X in the

what will be the we As normalizes re XX the next market XX to months. expect over

reasonable conservative increasing our our level. debt efficient will a sheet be to more to but We by options balance evaluating make

XXXX year expected the the and are representing be written of low-end high-end as be billion growth XX% end the full XX% and placed premiums revenues of range, the million million to of and of Total to organic of high-end follows. growth on is at between the low and XXXX XXX representing for X.XX XX% the between Our are guidance range. billion X.XX for range. XXX expected range, organic the for XX% of Total XXXX the the at in

We XXXX. year full adjusted to full EBITDA year margin over expect expand the

line results journey industry leadership. delivering we strong Again, thanks to the Operator? hard continue as our questions. up their and to focus work let's With our team for that, financial open for in such

Thank [Operator Instructions]. you.

comes first question of JMP. Our Carletti Matt line with from the

open. is Your line

I had But thorough very quick guess term. commentary. is on you what were my a to have I was a lot one, a guys ask mind covered of Just want little what I longer

to has of the You agent and been some on progression touched Quota made. the Issue, digital

Quote As evolving? how you forward like XX look for do do to guys tool a national you how How not sort to as of quarter of the as on know do Superbowl kind more to of agent you as It's I use. things it you question a digital question? mean, see we're But large envision you think forward, that. next commercials carriers a not we kind months expecting Issue? I get and XX

I start. on. You will add

Yes.

hand process a generating And it's optimizing It's to good new agents. that think So they the flow, there's and amount our lead digital at Right out lead an now, marketing and time. be substantial about through hunting evolve can lot not creating handling RPs in that agents over team right resource of motion, flow. of good that a they're as inbound means getting at fantastic ways as I for our we're leads very a existing to very, that is generate to an which future. new now inbound could sales lead the

now, necessarily for and The in as well They're distribution profitability. with are not there's of on new go underwriting focused as right room carrier networks. generating plenty product looking environment, that all So make new respect. investments carriers to us leads to

time, the over well. should significantly changes projects that ramp As QTI see in as and we more speed

technology a to today's be been has could onto market team productivity develop good profitable a even to our way agent in the tool distribution with for time pleased the very network. carriers that Very add is platform, over able really

this the automation same being of along QTI aspects the we're rebuild kind bit, the team right kind We're had to think other for of about quarter. it there. service new short-term on. We'll being areas. see the tool into to put is goes proud and moving from where its to carriers goes an in Yes. really really and of it agents where But is way our just I I it see want Great little we the leaning really term. lines, longer on carriers the what carriers about for can answer, right now. of on and the And that how off it. happy technology helping runs many foundation a of get able see Mark. are three out, it I But we'll trying Miller, would really back carriers it we I'm This work is Mark now say to in

That's Thank helpful much great. color. quarter. nice very on Super you a congrats and

back Thank you. Please for next our question. stand

question next the from comes Our line of Michael Zaremski BMO. with

open. is line Your

a I positive great can guess the which of I prepared ramp back, lot did you just the think end, of a I color growth. stepping took notes, a KPIs. remarks of gave and clearly most the lot use we in term lot of towards momentum, your of And see

as This a because growth lot a just expected into spending momentum, is including there's the a you half bit growth more like to you maybe guys curious, it, conservatism? little that take this or naïve well. like slower just cognizant do than said, of you feel rate quarter. back you're So grow some why kind embedding But a feels wouldn't the it of is some was of up money if year, question, your

healthy. to make possible team we're as we what corporate set I and XXXX, do profitable incredibly it for and get was as which exactly doing out our think productive

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are the lot back into the added generating a adding profitability new we're we're than more we're agents who system of agents now where on point significantly system in into ever before. that we've business, So productive

growth about very channel. we the the long-term good So of feel corporate

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uplift are you to we cause investments, which a But margin, just if correct of more me -- a ones can invest bit less to of that wrong. it productive, of year-over-year to other lots there just mostly inherently less to near know or term, Or could if couple hiring are Okay. out And just, -- of said be you call is I kind big the one like like way of little there? anything you there's you'd in highlight? out folks going you'd is the I'm college

it's of pounding Yes. of franchises individuals over and the several phones. well policies, well next. over June that as inbound We'll hundreds but with lead to significant onboarding in than people be in flow a an started next function months, We amount drive marketing the as new new more the investments significantly the efficient as for having outbound motion

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that probably at As the the back to six same over continuing of but well not see just entire next organization over saw to margin we last rates office six substantial scale months, the the very margin half to months, the grow continue rest the first expect to as as improvement improvements just we of the year.

up to and a you talked the curious very hard those think falls my about that estate the eventually level, Currently, challenging To clearly, kind positives Okay. personalized market and because bit side, about be in of macro to also market capacity. kind that's of And net-net just more. years. eventually there's are lastly, It on saying words. That's also it a net three But real macro when so, there market those opens you're versus could kind we're But like, just hard the wash like outer pricing the out there of to asked real if even if helpful. talking sounds a -- be you're sounds to persist. be on market the maybe dynamic some still elements less ultimately? probably pricing about going estate lot going

would good drag from it housing prefer product but contracts any super that like our Housing, we're tailwinds forever. to P&C don't is the more hot, today are pricing. be continue I really market to agents No, job we say when challenges do environment seeing just a that certainly today. the in of the would it of expect share, the a running We of than taking

year, I'd But I anywhere challenging of positive in choice fighting ultimately, be I better alleviate mentioned finding XX we're remarks, today. a challenges But carriers platform this the next onto good the incredibly over that thing most So very right job a doing product to new our wash real think agents our us. prepared will amount of that say distribute in of a with future now to It's and say environment will XX again, platform or tailwind time net the that shines product XX expectation significant really doing are partners we're in the our this wouldn't to well. our the an environment even up months. really in We and so there's dealing where as far we it's areas pivoting we're else. not added with than at through necessarily eventually, a good a is some job a

showing of know of lack of even any like you've Can more the if could producers is follow you And -- a of it of the Or last options? I up. capacity up KPIs? How had produce we talked a they number see promise, this that soft a in does your is any times. that more about just more

Yes.

all hamstringing to gains We KPIs productivity that bit, challenges makes can that more have are which impressive. little at we of a a internally today bunch we're productivity look the that product point making

where agent? per basis today yes, more And on becoming we're dollars products productive is Are have were a the an we to our be a cognizant to but more policies measure on sell. and we environment in not unit than answer productivity even So they previously less selling basis. agents are trying

from a more carriers to take tailwind? that hold. some need to headwind switch eventually will The So being rate a just

Keefe, Our Shields next of question and the Bruyette, comes Woods. Meyer from with line

is open. line Your

and the side the on you for that on both growth contingent point question commission the side is finer of contingent saw quarter. versus the by profitability Obviously, growth a the Meyer. there's put McJoynt how was My mentioned you much growth we from growth side. some profitability on commissions. contribution is that good This Tommy there just driven in underwriting side? And Could

mainly amount Yes. is, are based It's really minimis it that related year. more profitability-based reason or to de this ones the in volume quarter comparatively uniform a contingencies. the The why looks throughout more

works for way the the recognition GAAP. revenue logistically, Just

all which time have somewhere So a that is we of don't expect to neighborhood basis around of expect should the total the we mentioned in gangbusters you year lows. premium prepared in again written contingency remarks points XX

should quarter to I and going we that contingencies forward. look So the wouldn't think, level second yes, at of growth model continue

a Or any just about expect, second adequacy is, personal have carriers it. takes is of way and recruiting guys that of sort some that Thanks. with rest cycle then market pretty hard at your than And this point, franchise for to you P&C, extent initiatives temper this longer your thinking line rate does Got of new year? the growth the you are committed that in the sort question the from expectations? my

not I that I'm to market. in levels agents But the this seeing. our I'm even we're satisfied productivity with pretty we're of ability wouldn't pleased I'm mean, challenging I'd certainly productivity continue make to incredibly say committed. gains with say

for they'll continues perspective. a persist the it get But okay, while, to the back will will if eventually new agents to fight increased renewals, come on this paycheck our other a way. environment continue to business from So have it through

it's patience. greedy, term about long It's term So not greedy. being short about and

next with Our the Mark question of Hughes comes Truist from line Securities.

open. Your line is

modest little you ought a more improvement on modest but a the be else? just more it gain two wonder I margin You or coming off something to suggest through points, could or could eight XX-point the clarity provide if the that? could maybe year the balance be that more points, be of of

Yes.

may to decisions been on So specific make impact through. incredibly us freedom historically, we expenses timing that margin guidance, the give flow really haven't to some when may of

get margin do that that. I level on in say to continue QX, keep or that secure projects falls I that require on We've future to would of, we'll to to some And specific those And need got so guidance. too specificity wouldn't well. QX we growth and, as want investment whether

the how give And the number for franchises onboarded did then, you many quarter? you Okay. in

Yes.

in So quarter. we agencies onboarded the XX

commission a some corporate is they with some corporate amount go channel? when from they agents to take there the to the take switch the then, some franchises, might And them? start of from over of they switch franchise Do the volume channel that that of renewal economics do flat or

are over. starting They No.

of next Newsome The the Paul from question comes Piper line Sandler. with

is open. Your line

the on quarter. Congrats

corporate hired could but a help the Is get June the Sorry, both in or here, was well. in on up August they you me as that new recruitment. if added I'm hoping all the folks understand about bit agent just numbers, confused showing and through little timing other I you July do the summer of essentially ads with

people, trying not talking I'm about basis? about clear of compared timing so And here. just been Probably quarterly you've a to with the I'm see you their what onboarding numbers what on think

way Mark Now, the all the continue summer, that's Miller. will This throughout to close. and onboard very into to will is continue the fall. recruit They we

say get That's by the my expectations at will the of end a amount won't be that in wanted about have what prepared we to that of remarks, So we recruits. that. we XXX year. But we're certain I into I said targeting. of

levels it what there. Now, somewhat on depends attrition are

now. low Our attrition levels right very are

about based are easier it's from control hit on that's it here but but I to what where be. attrition the So we goes number where to can't we expect

on other independent especially your of company a franchise from. lot agent nationwide, an thoughts happening employment Any getting Imagine depending been Interesting. of upon specific. distribution systems agency at this with recruitment impacted what's outside

general. you your thoughts what broader on, Just like think is in happening with distribution

with I new product say anybody there there the Yes. as strong as don't portfolio any XXX% would I out there's And ours of best as are. probably But a know fact. acquiring aggressively out that had agency. we've team don't for imagine I as independent we carrier

But farm shutting when down like DOI, that imposing in on I hopefully it that their to helps But think market in So distribute there don't us California, of understand offering. carrier best insurance, I personal for an it California consumer. anybody the the a competitor state is out have some challenging we for one down, they're shuts there the state to incredibly is it trying lines out of challenges the work less against.

So number help does compete look single can at else region it there. that operate to would onboarded of specific be can out your you in or us standpoint, say the carriers a anybody we recruiting an that be trying help from platform we've a independent out product when agency

necessarily not definitely doing it's I it but than So we're anybody net better positive, think a else.

next with comes line of the from Autonomous Our question Sakys Katie Research.

open. Your line is

I wanted questions the bit on economics. of some to a deeper little dig about producer

And you year. X%, that is producer that looks to potential the year-over-year. about are curious some a to only what I it as where So like the guys first, count up opportunities mark? end was might exceed I if guess bogey have

Yes.

flat adding to And to are for. is So moderately are and system that not more much that back we than to the prepared added in remarks doing system the we've in the are zero, agents productive said the that up it if exiting down. be we're anybody would agents follow the our into importantly, close

while agent is with going the be count the direction the in inconsistent actual So that revenue may generation.

is the capacity doesn't So that way. productive continuing even look of if that number workforce to total the increase,

exercise force, down also restructuring that effort. to would it you expect just I remember think major be in important that through with sales with it's and to conjunction have a we gone our corporate

we extraordinary that June the XX% counterparts that And earlier, it's our productivity year through call on As the XX%, were restructuring more went said about -- is producing remarks, for training now ago. actually in June complete. the their That I a is new my than people, said, seeing over we're class in it's XX%.

real people. back So we're adding high-quality

number that's and think important context I on of actual seeds. So the buds

Yes.

confusion. no that the So up to down ended from at just up to from QX, clear, follow makes year. sales a significantly which be Corporate XXX, as quarter last was

corporate the to sales XXX. expecting expect to are moderately half. producers, Total franchise around trend in We second be we to the year flat, down ending

is process ongoing. That still restructuring

we're the productive. the we're productive, in are taking adding But out ones much are ones more very not

the So you can average up productivity per level agent.

bit the as of for like outside quick And still guys that much kind growing than so are geography. those there. a Texas in faster I'm it you you Thank agents tenured are clarification sense. perfect follow-up, to little trend the the a continue looks your Texas makes outside do That at curious, hiring a a going you anticipate be to franchise bit do look of anticipate Or that and guys segment? from Texas you to having into as more growth forward? you corporate transitioning channel continue agents of

support behalf, our we spread do bring franchise the their we That's franchises geographically them candidates that we mean agents trying wouldn't more a help to out the what question grow, we're want them. hire across is to in doesn't It which to on if United great States. exactly they is Texas,

to penetrated. new looking when our -- under attention have franchise particular franchises, geos for where paying right candidates be now to we'd we're we're However, we're owners,

you than our if from think look now the you'd more are, would you today. outside Texas where franchises map growth do I year in of yes, So of see at a

are Thank a personal we've where bit keeping business? states your call longer out mind new of sorry. that particular quite that that. you. markets One are I'm quick guys I'm I for in mean, follow-up kind about, business. writing any for to maybe where own those maps. no no of underwriters longer as also you underpenetrated would can open these states underwriters guys Are states are particular there that lines on growth curious Goosehead, any you opportunities heard see

are risk-off. markets, are for where We're specifically a the underwriters prioritizing way

our like Florida, and So inbound California, -- off we're activity out calls I think where California. state the in example, to Florida, of of completely all for I recruiting responding don't shut only of we're think

been we've we And what because big not the So for us years, for us. most the Texas and to focus franchise markets our carriers, trying and want attractive Texas. have most to markets in the we're them, in is for do a all give efforts our XX development business attractive Texas, carriers on

comes RBC with Heleniak Our next Markets. question line of from the Scott Capital

is open. Your line

had some I'm what on just customers question multiple of flood that cross-selling renters' condo. are terms terms kind getting kind where traction trending. products from your this you, multiple cross-selling. ancillary I part products and and you're know have being I includes it had wondering any in there those the of what but that update just of in on are a customers been of buying seeing versus you're smaller, of products

want preach a as workforce, as share Yes. many as get lines best and business wallet can as full we agent our you with client you possible. that of capture try to of That's practice a with

I think insurance our would high. other remains any agents than say agents But do the that of better out there. it I best-in-class, probably

multiple years We seen to retention having lever direction I haven't of material change. think good any the another life. in And business as on a That's that. a line clients'

news agents of I it our that. than lot on to But So do not believe a report anybody else. better

you're then just a just rates of increase Okay. sort much and of home. shopping lot imagine because where curious people auto coming in to activity the along how And people I way. -- are seeing are in but this more that lines, your And is are of

across the how curious I'm seeing If you are just Goosehead typical actually they can that person. comment the you're that switching many also on come that people and agent,

of kind any there? trends Just

Yes.

which XX% going in very increase our some have We experience phenomenal if shopping a remaining XX% to environment people able are strong XX%, significant you to retention premiums behavior in for being clients, team client from So at our is agent seeing at way means numbers that for I'm client credit service continuing entire where leaving throughout up the our deliver would tailwind as the to our a expect well. proud also potentially, this. you shopping insurance are but not behavior they've It's reshot been service ask incredible book of us certainly clients deliver for it able to their and existing more look is team

can we terms if of helpful. curious could or offer restructuring. franchisee there I done Are just too. last you XX% comment XX% you or on the one on you anything context is And any in That's just that? of kind is was had Okay. the more to

of to way the it line. more employee. a so a given cure take over give through to time the just little about XX% work you talked those than law bit does is the we're that that we system, agents for would bit works, We it to And Yes. majority longer a need franchise the done that the little WX

but So a the significant be we to still do going second the year, number of finish terminations, half of believe line. nearing there's we're the

Our with line next Singzon question JPMorgan. of comes the Pablo from

Your line is open.

numbers question. able a corporate franchise was and the channels? share Are question first My the you to for written premiums

publisher or that for – was what Sorry, what

Written premium, and sorry, franchise/ a between corporate just breakdown

prepared Yes. remarks. That the was included in

All sorry. right. Okay,

Next question.

it picking So but as I second force, side? recruitment, to corporate seems ramping this reasonable of half you're in willing year, like up, metrics certainly a start the distribution, be XXXX? to look are at Would right, you're expect maybe on up [indiscernible] policy to in still new refine those those growth, in metrics or business revenue

in XX%, We But would Yes. expect rate. three policy have growth are a it around are enforced policies the direction expecting to XXXX. of a achieving gearing certainly handle I of not front in to that the we number growth in organization reaccelerate XX% enforced

a of very is of not And This something this something demonstrated And we've the efforts, managed is of complete we proficiency. all I restructuring way. turning is in sort gas mean, high we'll past. our extraordinary levels the that the on degree growth be to as us. we've theoretical high

question. And Yes. good into a next my actually that's Understood. segue

if than think said faster this through increases, but premiums. those premium it of makes CAGR rate? And pre-COVID, If number And up XX% of, XX% to I sort right? premium I of you the growth. CAGR? the and build yearly for things, the at model, those you different growth, up how I think about walk guess that will growth up to premium you I'm of has now, think thinking new sorts productivity about components National that from we sense, your of grown different agents number your target you ramp always as written components Can of premium So benefit that the agents and think, growth long-term look build

well of in of combination increases number a productivity improvements, as It's in as the sellers field. the

So will again, invest as more we field of don't more not increase to that's more that productive. XX% generate time. we And getting either. theoretical make to our and experience, at sellers accumulated that I in over tools in a the needs agents continuing technology the be believe productive rate And, we're number

every you CAGR incredibly you are but to need are you seeing productive continue is really some productivity need don't agents the premium single years, increase. producer to over XX% better, the that next impressive that gains, need to getting you five a We generate in producer need capacity really month growth, XX% growth, real-time

business. the structuring we're how that's so And

And are producer three of also others. more right, elements than growth, some productive and there's

successful franchise is new franchisees average every on producers would for of agency, the expect people add now. or So we know into that to producer, franchise, produce. they to produce new increase how But should the they X.Xx bringing traditional new. because just we are, whole X.Xx But better those historically relatively productive people business successful we're entire an this secondly, we motion a that adding

franchises. it as the guys out. So traditional there much they're on super and productive converting channel more then steroids just is -- nuclear like as is And into many channel the that agents crank that one Those corporate they're is productive leveraged, franchisees.

So sort did inputs with sure corporate high-quality part could to franchise of channel we restructuring and we're the that we new working our of in to was provide franchisees. volume that see the make channel

have producer of to other very because are would than adding it's these productive of a you we have franchise existing the in on channels new different an either arithmetic case So seen just the are productive. kind past, unbelievably that the

a a franchise. converting you're into agent corporate If

for be the in you last clear. about Jones over And for that you Maybe reference will one you. the your I And you'd sort readable talked right? of Mark Thank I think think target, X%. Jr., had said improvements margins, think you That's when long-term me. then, past, the

that margins are then, good, it the XX%, X fact targets? how good you I suppose in target the couple year of sort of margin, long-term I targets? cadence sustainable. the from next your to saying quarter, Pretty in years, still over we about But think thinking a should assume reasonable your your right, you're already? not is really clearly, right? have And that march a towards Is contingency long-term So from of XX% a here, context steady upward and get to just

to expansion that don't We is we an to see continue margin And believe improvement XX% expect year-over-year, unsustainable quarter-over-quarter. and level.

hiring Now, works better that and works, quarters happen cap profiles may certainly is every the that for believe then us. not way single XX% some don't others a But raises quarter, have that work. I given seasonality margin than someone

to margin expansion year. continue strong We every expect

I'd you. closing for back to to remarks. like the turn CEO Thank now call Mark Jones

everyone. Thanks,

good call. For day. your attention We the a your questions have appreciate on and

today's concludes this gentlemen, call. and Thank Ladies conference participation. for your you

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