Goosehead Insurance Inc (GSHD) Reports Q3 2023 Earnings: Revenue and Net Income Surge
Goosehead Insurance Inc (NASDAQ:GSHD) reports a 23% increase in total revenue, reaching $71.0 million.
Net income for Q3 2023 stands at $11.3 million, a significant increase from $3.0 million a year ago.
Total written premium increased by 30% to $803 million.
Adjusted EBITDA of $22.4 million, up from $11.0 million in the prior-year period.
On October 25, 2023, Goosehead Insurance Inc (NASDAQ:GSHD) released its third-quarter earnings report for the period ending September 30, 2023. The company reported a significant increase in total revenue and net income, demonstrating strong financial performance.
Financial Highlights
Goosehead Insurance Inc (NASDAQ:GSHD) reported total revenues of $71.0 million in Q3 2023, marking a 23% increase over the prior-year period. The company's core revenues also grew by 22% to reach $63.1 million. The total written premium for the third quarter increased by 30% over the prior-year period, reaching $802.9 million.
The company's net income for Q3 2023 stood at $11.3 million, a significant increase from the net income of $3.0 million reported a year ago. The net income margin for the third quarter was 16%. Adjusted EBITDA of $22.4 million was reported, marking an increase from $11.0 million in the prior-year period. The Adjusted EBITDA Margin also increased by 13 percentage points over the prior-year period to 32%.
We had excellent third quarter results which further demonstrates the consistency and resilience of our business in the face of substantial macro challenges. For the quarter, premiums increased 30%, revenues were up 23%, core revenues grew 22%, net income grew 271%, and our adjusted EBITDA grew 104% with adjusted EBITDA margin expanding 13 percentage points, stated Mark E. Jones, Chairman and CEO.
Financial Outlook
For the full year 2023, the company expects total written premiums to be between $2.87 billion and $2.99 billion, representing growth of 29% to 35%. Total revenues for 2023 are expected to be between $260 million and $267 million, representing growth of 24% to 28%. The company also expects the Adjusted EBITDA Margin to expand for the full year 2023.
Balance Sheet and Liquidity
As of September 30, 2023, the company had cash and cash equivalents of $35.2 million. The company also had an unused line of credit of $49.8 million as of the same date. The total outstanding term note payable balance was $79.4 million as of September 30, 2023.
Explore the complete 8-K earnings release (here) from Goosehead Insurance Inc for further details.
This article first appeared on GuruFocus.
