Goosehead Insurance (GSHD) 24 Jul 242024 Q2 Earnings call transcript

Good day, and thank you for standing by, and welcome to the Goosehead Insurance Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that, today's conference is being recorded. I'd now like to hand the conference over to Dan Farrell, Vice President, Capital Markets. Please go ahead.

Thank you, and good afternoon.

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

Forward-looking statements in our discussion are subject to various assumptions, risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. for guarantees be performance, you that placed our SEC not reliance therefore, all could are discussion Goosehead. recent not detailed results should upon filings conditions impact statements future of and and and future undue to of operating These risks more financial uncertainties of a them. We refer like that required and statements except forward-looking the disclaim intention by law. I will financial We actual any discuss any out accordance or not measures revise obligation GAAP. to would we call, that also the during prepared to extent point with update certain to in are Management uses our evaluating these and financial non-GAAP planning, monitoring when performance. measures to by amortization and We structure, period period believe for useful depreciation, to metrics investors variations tax representative including position, items performance business. other consider are financial our management differences potential in not comparisons these of by measures capital caused be we that to non-GAAP certain and facilitate operating core

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

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

to like and CEO, over turn Mark would I to Now, Miller. call the our Chairman

transition and for welcome I've my center puts of unique been great building the leadership founded Mark on next to of Jones the that The many gone extremely teams, be feels by unprecedented for joining and Goosehead have legacy as support providing built at part an and the Jones universe. I first not seen the to journey. Over call. years industry couldn't more XX and ago, that his more CEO. well-positioned product team and that many Robyn thank transformed our personally be reach our new excited over and company everyone something our insurance models. the help for I've friendship, they career, phase talented to smoothly, time Mark counsel. Dan, President leadership, heights. could I'm Thanks, and continued I'd second like quarter this business honored earnings Goosehead's company and to and and choice of clients good carry amazing

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the why why buying So that's stock why own company. here our I'm back right bought we're and alongside and I

expand me mean. what on I Let

growth industry total the less we U.S. enormous. personalized for in but billion. billion total market X.X% in $X.X the written-premiums, mortgage just account and is transactions opportunity insurance The $XXX in total of personalized than X% We for the have First, is currently over over of

tied the our years is reminder, of a there for As are many leads referral come. white for mortgage majority partner plenty obviously transactions. market to us With a of grow organically large, to to space that

the industry of simply market in the business is the Second, larger and we positioned our to job larger a are that best on capture It because that to and best model. we have execute portion opportunity. people perfectly

has we difficult a that extremely to Goosehead moat wide replicate. is deep Third, believe created and

motivated From more size relentlessly accomplish the limitations their in on insurance, and auto team carrier not corner. Despite some and they report X. lifetime, starting faced to quarter. In average force, number XX XXXX. Many plus relief did over over many agents and critical on or target has I in focused past the of the We insurance the have distributor been partners, XXXX fully write X taken billion-dollar agents it's and adjusted, I'm a the signs frequency than severity. this clients, agents. My organization navigated policies fourth challenges on to bad profitably, policies. We're but have see feel the had continue sufficient that to of carriers since professionals largest we pleased momentum this the mission of disasters of growth, and facts, results Founder's day reaccelerate. U.S. X.X. to in profitability increases the property nearly have is hard first consecutive too and X.X the these marked over same weather To in market same we the say being half can we to we on building, increases reaccelerate for it's goal, significant million is that's CPI annual we more technology, XX% to have Until those across our our personalized these highly what insurance of year country are that's national the team X,XXX have XXX,XXX carriers price months, in inflation has footprint, XXXX industry-leading service years. XXX skilled given growth XX selling and carrier confident them skilled XXXX, of and continued and early and insurance the events, the of industry new new but home levels claim was and see reach we macro posted appointing demonstrate and that will trend the extremely early to exactly putting highly beginning QX, second in that well, continue strong insurance they past for profitability and turned

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the will growth harder begin levers expect business. on should have to continue we strategic on the down but to path push the in we us calls, even You discussed previous

of few a you give examples me Let how.

approach quickly. agents X-pronged a have to We add to our network

hire a university program. high-powered agents recruiting quality corporate First, more with larger,

size increase staffing Second, optimize the exceptional recruitment their in-house agency And team. existing third, growth agent our agents. our accelerate our owners development of program, and of helping franchise supporting by capability

corporate results hired. agents, summer, from we businesses. are agents corporate many the that to of As best to existing at high-quality XXXX than of Class the end new XXX quickly possible, XXXX, adding around year up very had even the The over end conditions. Where This the from indicate agency agents agents. we help with corporate we we QX, to develop end ramping XXX challenging we're of build some have our we and macro our them XXXX and Class the Class larger represents of of of QX, network. want even of the best XXX ever the early partners faster notwithstanding The expect

franchise we XXX agents result, have have source than been existing franchises. our continue per year, the by more increase. that Since As helped of beginning our hired to the agents a

In I community with that into was the the year. addition, agents this franchise. owners agency now our the agency believe per agents. We agents multiple per own X.X can their within number owners over year, businesses we're each franchise. to XXX capability have agents on average support grow our building larger confidence providing Last hired that X.X is have they

recruited franchise footprint. To to Brian help new from quickly We in franchises expansion will the AT&T, for preparing Brian the future. development our franchises and launched, a is new us lead also we number key our sales adding grow senior the team. of in resources to accelerate overall rapid executive country more markets Sly, be adding key around

In on agents hyper-focused network, adding agent addition we're more to optimizing high-quality the to productivity.

technology. the of One agent through ways productivity is drive best to

in productivity to company, in the and to agent investments making company the to we're As current outsized a platform technology our future. enable scale drive efficiently more

we built superiority the believe unique is have most advantage of pure to in and past and has that the industry companies. a show This technology anyone an in Over created the years, technological team far X the technology exceeds information we numbers. rivals competitive capability beginning

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what accomplished. To efficient drive still our experience. even of time-consuming technology for historically Our number doing and into industry reenter will become a finding investments carrier and of much increasing price, what reentry at using shop the but rapidly with my this redundancy we our eliminates in more knowledge, types on superior at ongoing to growing the came this are client I'm to scale. proud our bound is agents core built but this technology. when of market so platform new needed no agents as exponentially the the team go of more this but We easily this one it policies was agents deliver agents our to familiar the lot have quarter, become have doing QTI help is to best are has in technology where insurance the policy, connections. Each QTI carriers suboptimal, allowed opportunity has data. and a our area of best native system percentage binds infrastructure, This These efficiency, of our now we the and process

for in carriers. of that the comes looking adjacent benefit established Another benefit our with technology profitability are challenged them. partners can relationship for this our carriers environment, we economic drive In

agents is agents us much statement follow but I believe delivers combination quality significantly refer our costs that on this control rigorous will across to have on and to underwritten deliver of on company have productivity, I experience. Improving to CFO. company Jr., been clients plan platform partners service, technology focused can our strategically what country to to of we turn XXXX earnings quality back Rule growth up and the they investments more technology same the we an my for there towards are to adding and technology people experience, is still and of and widen evolution thoughtfully continue our is technology and measuring that freeing accomplished, revenue playbook margins. investing carrier benchmark and our better be be would our and to XX%. quality revenue department. is the to prior XX EBITDA the next often serve even the success. to There this cost their service of in well-positioned we opportunity to processes. Historically, with believe clients as help our use phase growth growth we accelerating by tremendous Earlier well-mapped, and our excellent but That and drive we automated, technology a our operating XX of our and been many deliver focus subjected margin clients, investments Rule added a say expand in our level there can can still growth we largest sales better of want to specifications accurately let believe continued our partners, employees, With and me reducing will be enabling that by XXXX. We're Our in strong support strategic but I most Mark on focus carriers, journey. With center, if the call and and true are half control. I to that, over time. moat great in an Services believe shareholders said tasks I their automation directed over scale re-accelerating unique client not far to the competitive sales and tremendous our thank reach yet, our perform our Jones, to for of partners. In year,

on second total from Thanks, quarter core count, our In and corporate the good we Mark, agent XXXX. on quarter producer and accelerate XXXX, the accelerating to call. to everyone revenue, afternoon quarter momentum continue revenue, first of of with count first the all franchise

While maniacally as referral on value remains XXXX. of focused best, the quarter up what do first X,XXX, tight, agents, partners, producers carrier clients, total market the our delivering we've end of and quarter end, partners. At the franchise X,XXX from our carrier for product our stayed very our we were of

producers our to per healthier for ever Our franchises quarter in X.X. our consecutive than franchise is as sixth agency grow force the continue scale, to

the up XXX same-store model the the quarter, producers largest market, of is previous technology end it the each in into ability multiple these demonstrating on second to able career the includes hold. Considering year-over-year, path to and franchise quarter, the XXX, exponential the at quarter additional to our up over college the campuses improvements progress at hungry proposition head opportunities. enhancements out including to that options we're lay growth with XX% resources XX% further In for young of XXXX. of graduates, management the carrier franchise exciting X-figure coupled XXX or year, of expand our the the a to team blazing experience personal time the Productivity productivity to of like end is success corporate XXX on which team, This onboards resiliency of impressive. and per into creating a and training, producer, value-add path the the improves management, the value improved to on year-over-year, they agency, expanding June other take of We're that a by from discussed our the the have up the talent, the leveraging own or all the gain opening production lines XX% of franchise their arm The future agencies. Corporate second are first the front distribution positions lowering As expect more focus drive by in paid to us now were increased we allowing we further excited growth the and sales rate and pool in to potential is help end productivity be grow that quarter immediately housing continue and continued as positions. This a partnership lines carrier managers. average see of in everyone with our cooling market, attrition corporate backdrop top management of should of and the is the class. franchise past, gross can continue future the to attract and an count excess in health the income, year-end. by as our

not to turn waiting we company's the we're history, act. While cycle lines the remains for before the hardest industry our in in personal market

partners phenomenon in our rate ready productive that adequacy, and are continue with will producers our when now. more happening so onboarding larger reach growth is rapid carrier to strategically, we deliver business force. An agent a interesting right We

partner marketing to allows referral realtors proprietary loan agents efforts, win the Our example historical they context no One they tools agents our search lines doing them and market. market soft business that what to first-year those precise who be disposal officers personal a their looks know of volume. help in at is in is most are their like. any have tool, have only which great All targeting

will in both and period. XX% the coupled as means market agents franchise to all-time first-year to This agent the to lead their recruiting this be some marketing As improved in with we've led when per standards has in flow networks year on seen corporate agents even our it productive prior uniquely their a the expand delivering highs our capacity increase compared positioned efforts, double is What further. productivity. softens, down

to Total results. premium written period future and $XXX grew million, corporate for over XX% $XXX of revenues, the million. our year of leading franchise the This XX% XX% $XXX premium to indicator million. Turning to growth prior includes premiums, growth to

We new consecutive business new third premium trend quarter business up for of accelerating franchise continued premiums XX%. our the with

our XX% growth goal us While our grew resulting to driven prior $XX.X representing for are both client carrier The the fruit year-over-year we've over actions of term years experience revenues the growth. Costs productivity, compound in decisions year measures our core a new growth for retention this Improving from in period, in consecutive but XX% confidence strategic growth, to to investments continuing the period, inevitably X the coupled we converts improving growth with new shopping to to expect $XX.X over existing sequentially give revenue the year agent moderation beginning business in million, retention longer XX% annual clients, earnings of rate by in core XXXX. Total accelerating are accelerating impact temporary as premium that recruiting, prior our in to quarter. in pricing of intermediate have second total behavior bear million, improve and taken abate business a through over with quarter made we representing more generation, pricing through increases real-time, last renewal. written take we much client technology as flow will revenues our slow. revenue

growth these the by for that recovery however, revenue will lower by and drive with in in fee driven over franchise to confident, compared reduction the a profitability cost accelerated period XX% turnover million, in quarter franchise are revenue turnover. to $X.X declining strong year time. Significantly investments We resulted prior connection

in operating operating period. XX compared prior transferred or year franchises to During the quarter, franchises, we the terminated XXX

decline. total franchise expect consistently the our improve to to the continue network, of we turnover As we health

expect should more operating a the which forward count, in grow in revenue carrier growth recovery representing profitability. to XXXX, quarter franchise by Contingent the result we Looking period, challenging prior normalized year $X.X our decline XX% rate. over were million, to cost a commissions driven

While outlook year commissions we our expectations outperformed full the for our the in for second quarter, remains unchanged. contingent

of will recent approximately industry believe points given our We of XX% rate versus remains be the time. Policies partners ultimately premiums and end-of-year of increases commissions, commissions end continue the improvement year taken weather quarter quarter. bring XX prior to first believe Texas. We basis profitability, expect we grew uncertainty will the the the over to We of force Client in for frequency there accelerating in retention drive the in as should bottomed total compared in do written rate to as the continued force contingent on outcomes policies believe and the contingent that by to reflect XX% levels improving XX% third which as events growth in earned quarter. quarter. actions to was carrier now underwriting has growth high of

begin compensation increases We also the rate benefits XX%, to client ago by across to investments that increased $XX.X the million slow. Adjusted as technology. organization, of head inevitably and quarter $XX.X grew driven period. expense in begin due employee believe EBITDA in year to compared retention included of XX%, to count million, growth premium to the will homeowners' This expense and improve G&A largely growth for

of year and adjusted for the place that growth expect expense cost controls in the margin lower the fourth remainder taking quarter. full We of be expect second EBITDA quarter the to level. to deliver in focused We year, majority to on with G&A expansion very remain the relative the

We strong cash of have company a from options ago. our continue multiple our sheet from operations, we during flow organization up us managed shareholder year quarter, gives Because balance XX% to flow enhance value. million cash the in $XX.X generating the conservatively, to our power demonstrate

cash shareholder actions will continue second million the with utilized quarter, our further we share of stock, quarter, shares the end authorization over public invest in the own retiring opportunistic repurchases remain and our equivalents. to and confident repurchase $XX.X of share in and potential, and X incredibly We value. At $XX.X enhance earnings to growth from be our to our million we million During of cash flow. had long-term other

and Our of total notes line outstanding unused $XX.X was million. million, payable balance was credit $XX.X

debt appropriate just us drive we basis Our XX-month net capital shareholder see Xx, with trailing on to for providing future return, to EBITDA as a significant is value. over flexibility

at are We to growth Operator? written range. low million growth a quarter the range. $XXX are low billion, reiterating range the be for end for and XXXX. Thank be the path as growth high industry expected expected end make on full of for the representing year $XXX $X.XX Total expected between to let's fantastic premiums that, organic of open $X.XX the year team of end up follows. placed to on expand of XXXX to XX% full XX% and million, and the EBITDA growth the our representing billion the the the XX% the our on Adjusted to you revenues guidance between high line organic for are range and end margin XX% is second and at strides to questions. leadership. With our continuing delivering Total

comes from Citizens our [Operator And question first JMP. Matt Carletti Instructions] from

a Mark, commented bit availability. your product opening comments, about you in little

of you on that your bigger recent exposed activity I to the appetite kind and carriers are if in that it any side. heard right, improvement but not past see expect quite come bit you hopefully things on maybe starting had more QX in side, shorter Or view conversations with kind maybe of a generalities of look auto we're house given some now their to can that Do on term reinsurance and might like? yet homeowner what cat of improve give the a changes? going there? exposed color you've the the What's maybe lot to property to think, I forward partners little order just

it's market-by-market, if to slow, I as more for say, but X been, markets, that. And over auto happens on have opening up, the kind the side, open meetings But have And Pattillo a like side, on the question. open home the carriers state-by-state, the we would But be Yes, certain It but in hang me. I Matt, it anybody's I to been improving. also product-by-product. And here of the up don't on of got Brian He's profitability a it's up. we me. it's than with could has continues with are with basis seems I've honestly, quarter. the better guess. They're thanks state-by-state with there it think weather any well. to see availability what carrier seeing to just predictions than lot

more mean, the I state-by-state. talked drill you've obviously that's more kind down I of obviously, cap Are I way guess, impacted. you said -- mean, seen guys just there big you a kind and specifically, state Texas, of about in you Have in anything you the or same? past, of changing for just any

one honestly, mean, think Texas right now. markets difficult the is I I of more

So the just There's is where still weather, price continue about big catching needs to market uncertainty for be. it us up it is insurance and to we in but a to Texas. sell

not X Texas, the of one thing have I to have I metros much at that going there's it's reinsurance It with risk capacity DFW of not state, happens mean, all on. so whole compared the blanket dynamics doesn't looking of reinsurance, Houston, X the really. Matt, type say, type different for it's same this is Yes. the kind Jr., biggest more but hailstorms. our Mark catastrophic for would there

KBW. from comes from our McJoynt next Tommy question And

feed in half for can for the margin And this expand, purposes? Regarding should fourth of 'XX guidance that notables perhaps there keep us third to the to the margin rather can for second into comparative if what of in the or you quarter mind in than expansion come remind quarter? we anticipated your most are reiterated the is reason the one-timers any

QX XXXX really a happen half in at earnings. At that's in be really time, obviously, not going point. big would that there's for to And second contingencies summer is got we are from There's perspective. same to when a the The the Yes. if class one-timers we've those XXX% just starting June. of any comparison it expect material guide

started Some June. of them in

and and in September. August again in class big Another starts then July,

curve drag, a they've our very Like short-term but have So up that we what the cause down been they're even than ramping mentioned can years. well. prepared previous they coming faster learning so in remarks, in

confidence gives that get that quickly. us really So accretive they margin can

last see then a the And terms modest on -- switching generally about it. Got up the Did from couple topics, again? rates are any carriers you out about the in that commission And the lines, spoke agents. Okay. along sizing they of impact state-backed policies compensated of I quarter, you a impact think pay that head that to that commissions? same same lower dynamic of plans play what how

Yes.

So changing haven't seen carriers we commission rates. other

commission Now, has that a that geographies commission would lower necessarily a in decline. of pay like on you so going function That's writing rate change, mentioned, average, lower business rates, commission the to, more slight not plans a pay a rate. and typically state-run

plans. that It's more towards So the state-run XX% the commission it's average like more because rate, sure, not to the going traditional are carriers that rate.

would decline improvement grow, back get though, to into that a those ready there. the as that you market carriers We in see number. see expect, can and You come could

it. that. Got unpacking Thanks for

problem. No Yes.

from And from Brian UBS. next Meredith question comes our

A couple questions here for you.

just want -- I to first you guidance. The the for thanks make get one, sure

growth kind of to pretty like accelerating revenue expect appropriate an statement? third, nicely that fourth quarter. we it So Is should start looks

a the good Yes. Yes, basis. that, we the core especially acceleration. depending expecting on expect aggregate but would to we're I mean, timing core, on contingencies, growth move of could see

capacity far out as coming, from markets markets? you. any themselves getting just Are back, guess, seeing removing your Got issues kind of I any situation. or the other of as carriers you on then And carriers,

with good us kind and and integrates then work carriers that a the market flows to a the it country. pricing entire across ebbs say got allows scale That's we've what and team their manages sophisticated kind of would I all as underwriting of the daily of models. Yes, update really But tech. that That's thing.

nothing Got like what in first the you. But happened quarter?

help, mean, at Texas was No, hard for same much worse quarter. the I the first what be than it it would but to get didn't certainly storms in time, it in the

that Got something this business remind in more think this may stay I what just going curious, wholesale are wholesale have cat think homeowners just more to me, before, but that And and you're exposure the And asked and see I'm last, your constraints? market is given you. just regulatory then maybe I capabilities? you elevated

coverage mean, a wholesalers. side. everybody. tend transaction a write Certainly, client in more better needed. some goes in Obviously, over to the a we in a certainly more market. towards experience. I market, admitted It there's But we lot the seeing I the along just time lot tends as when to It gaps admitted on would with we go and the be service admitted Yes. wholesale E&S paper. it product. that will smoother the lean expect scales you're It's towards easier route coast, for back

wholesale doing? wholesaler? Why your Would own you start be you capabilities something don't consider

wholesaler. Yes. We'd probably through not We wholesalers. other start our own distribute

And from Truist Mark comes from our Hughes next Securities. question

I had that corporate XXX that target. agents think properly? suggested Was year-end? was Did the I by hear you

correct. that's Yes,

it then of commission your maybe And in And better on give renewal early relief or of It you the much a or some look this about auto. commission corporate commissions. retention. premium saying signs I to you're holding corporate like improved But like really did kind your renewal you looks know numbers. hear quarter. what you I job

first that flowed would the thinking into kind the you business? particularly Just kind had point Anything side quarter? corporate and you that on kind of able at to be of normalized in maybe to of look second throw quarter into of the about you and might how and the else the depressed last retention you mix, this If year artificially it quarter. this quarter anything

as in call retention mean, quarter the see some more down. the could I call first starting decline you or end of in decline market the helps pricing I expect that to rate starting we're metric. the really mentioned had to slow the mean, begins Yes, of we But first that down, slow at revenue we're the see the to strong really of decline second the which client rate number quarter. retention we And retention normalize. in

in than premiums in ran second I quarter the they quarter. did first think faster the

Katie Sakys Autonomous comes next from from our And question Research.

capable while productivity curious, has view the been you margin that year year magnitude on not continued year-end but My margin the first for of premium Has management's guidance perspective has question revenue of I'm of expansion 'XX. certainly improve. changed, shifted? full to of kind reiterated by is guys' and given expansion full

I But as Yes, like have scaling. really mentioned, like of service about that. from more specific should That's going technology in get team productivity of to discipline But the any guidance a that at open-ended want broad investments fourth probably helps. at expect specifics the make expansion. Obviously, on need to we you flexibility expansion our same it we're we're continue to help set kind lot to in feel that cost to mean, We drive investments have of and we into is get that margin But We perspective. made drive going to to we as that's not the why way can point that margin time, as a contingencies make. through. a efficiencies. right the We've good flow now. the quarter

key you targeted geographies what you're mentioned And enough. then Is the be propensity targeting those now? remarks or you prepared of color some how franchises. with to new guys may geographies remarks, new any Fair right us capacity just carrier there expansion business align more for and can those states back for give on made in going some

product speaking, better it's on availability but where to is on. that's mean, want certain good. now, so states generally and get I focused I specifics what we're into state-by-state, product don't have Katie, right

from question from next RBC our Heleniak And Markets. Capital comes Scott

Yes.

corporate Just that about XXX this The a count, quick couple talking of you questions. year. head were over getting

an bit of a so little talk you're of market. decision Mark, I of and had to the some kind productivity Can what's think decision mentioned that What's that what said this it's classes. a tougher compared thought? think, about had you in last there? doing driving you before. And to increase about quarter than had you said uptick newer talk kind obviously of you to some XXX, increases just -- I hiring talent can the finding that? you better you the Anything driving ramp-up or of

we agents performing last not a are taken corporate agents and And years, like the the quality that for more on recruiting it's and absorb university is we over speaks we lot Mark that's this I'll that second campuses, to of point capacity, take of where really find And we've and ability would challenges of #X all, well agents. productive is this we're year. the us, and deteriorate on on was the And Yes, I today, can and have feel which new limiting we've we and can available to productivity. the gone say nicely, is factor Miller. a this had start. how our at couple really we what take year. really really, can on tremendously

the So we've college decided We We've offers. coming, increase extended to the the to the so agents, XXX campuses. candidates are know we number. been

just doing Yes, ramping more year's learning they're year good. very year, last class which into coming job gives bit pool. this curve, confidence were last they better the great we talent to than the and very, add a more some you up Like mentioned, little was a and they're down

and of don't So like, they a really soft looks out what so They're doing other historical go great it's interesting any find they market that context there have just job. a a way.

Yes.

ask makes to sense. too, about significant. share I And Okay. the pretty buyback wanted That was

recovered here. stocks a quite Your bit

you mentioned the the decision in kind and you word be of Do comment, to see any then? to there opportunistic. does the are of market You or half active just make what Is the a expect year? second going

there's Yes, a I dislocation. we'll if mean, be market opportunistic

last Yes, Okay. quote-to-issue the was question platform. finally, just on and the just

and heading? is that's had that us there of just You you Can a bound how see some up on commentary how premium where sense there. give and being you ramped much

very it way is from exact utilization Yes, across the figures, uptake exponential give it has but and growth, good. I'm at point, super we've of with implemented I our pleased don't multiple carriers now, this to the and agents the and platform want been

feedback this our QTI majority the Yes, through a great. point, agents have I mean, has at platform, and of the found our policy been really

And Zaremski from our next from question comes Michael BMO.

the on And forecast trying it's out EBITDA revenues. just by divided I lot parts. premium we're only level, term, premium just commission you've to curious, I revenue your rate. me a XX% little to different revenues doing than I your compressing. margins think out highest been long-term growth despite There's growth XX%, a ratio does rate actually materially, to other to keep things is which doing margins, up guess that at And that piece your can of margin And lot. get can I the longer your the still pretty premium get revenue it's or of positive so unpacked move small grow versus to of for need goal? watching or and goal you're moving But the contingent know a element, you of to correct revenues, the have rate your a than if question if kind amazing long-term total you kind a

Yes, Mike.

So in we revenue year. look get you and expect the would next at as growth direction premiums same pointed kind of the rates you of that

through longer and As be we gap over business years last transformation going revenue rates go-forward on of up with new in went growth and this the growth the term. up basis and a premium couple issue That caused that's will and between down, that down rates. an not and

keep creep and the to growth continuing sure eye to growth, top-line need growth which drive every on you're to hit convert revenue make expansion and an part going to scale. numbers, together of business you cost margin you're don't really and our strong premium to So have drive to get will

and levels of We fast want profitability. want grow both. we do and to get to high we So to really want deliver good scale

of give its or of it terms related historically. longer-term, competitively of versus the or thinking rates? new us kind environment a of structure question, has assessing perspective Has Maybe changed the Is renewal Goosehead changing a bit? kind kind kind commission ever you in Okay. of also the on maybe considered can

average we No. average, significantly believe I our agents insurance the agent the mean, money I in make than think market. the more at least,

truly our the structured. it. have franchisees. corporate who's they feel over their his selling our Denver all in good I lot kid make first is making we've XX-XX really with money a It's office, because $XXX,XXX I he our year a and past. ever aligned to We're perfectly, way is So more insurance. a partnership are on agents now compensation our in of about We're in than mean, got going

to do but need there's people competitive, to super think we So anything the ability that I to more tools be don't be our know I successful. give

And those top said guess, happen to estimated you you average. your more Goosehead like maybe the than the curious Mark, U.S. know makes pure stats? have, what agent, off Do you the think head, just of of I average just maybe you happen any to average

and than those industry. that rate of lead know you but pretty the X.Xx the don't I rate have Goosehead commission than our in our I industry more more money believe are That our that practice, higher making average industry. off Yes. average commission agents best will productive is than head, easily agents are stats the top the to my

And from Newsome question from comes our Paul Piper next Sandler.

of my You guys have most hit questions.

the maybe one competitive or Just expansion follow-up environment. on

one last than of acting them? a maybe particularly with big aggressive, at insurance out an there's the environment quarter think differently being or were companies competition not or some uneven that couple I changed in Has still point mutuals there the it so, of in rest much. lack competition, or there stock home but that of case is so rather the amount it carriers like the seemed of

the yet the really environment we would shift first I the what in home haven't environment seen was in say Yes. quarter. a from

And our from question comes Singzon from next Pablo JPMorgan.

hear housing what is where question, guidance, market First an was you're about thinking now assuming think curious right? expectation decline. interest or the figures conditions headed? So mortgage I'd kind that in rates I be your business to of into to of curious And I there's how your

any we're gets the our guidance. I better Yes. in environment that housing assuming not mean,

because more out of for And there's we're percentage and good of Our agents a small are market, such capture doing us to take. total the leads. going share plenty a really job go

certainly the helpful. would for achieve So goals to really we to we in us don't it but improve be to, that really want order need

I think that's upside. definitely

franchise And the you provide get franchisees, agent then think can So is add Okay. perspective at these these secondly, on level, get producers more paid? compensated, folks at I how the the XX-XX, how but do split level, to individual right? as the producers you

Yes.

them provide on We talk they can their at what good to side because about business. So the we to least ultimately that own and our are makes franchisee them that's why do sense. up

which But XX% you'll the employees their we and that XX% them. similar end pays is the seeing renewal. would gross to on relatively to our would what up on a gross So typically ultimately be pay business the who franchisee to employees, up way is XX% that new

lastly, a just And then Okay. question. quick numbers

I the think, for the corporate growth franchise mentioned had the in business number channel? XX% Mark, is channel. you growth new What

Same-store sales franchise the the on business growth XX%. was of side

saying? Sorry, What were you ahead. go

the number. I Maybe wrong Yep. quoted Sorry.

mentioned think premiums, I you year think Or I all? at had right? that you did. mentioned had first you Or

premium was quarter. the knew in this Franchise XX% up Yes.

numbers be corporate the in think the I XX--Q. should

In XX-Q. the

just We'll it. wait Okay. for

call questions. I over Miller I'm for no back would the turn the to further showing like remarks. Mark now And CEO, closing

I Yes. quarter thank second us for just call. our joining wanted for to everybody

As always, you speaking we very your next continued to to forward we appreciate you call. quarterly much. on look And Thank support. our

Thank you. participating. for This concludes today's Thank conference you call.

disconnect. now may You