Goosehead Insurance, Inc. Announces Select Preliminary Key Performance Indicators for Fourth Quarter and Year-End 2019
- Revenue under accounting guidance ASC 6051 for the fourth quarter of 2019 is expected to be between
$20.1 million and $20.3 million, representing organic growth of between 37% and 38% from the fourth quarter of 2018. For the full year 2019, revenue under accounting guidance ASC 6051 is expected to be between $83.8 million and $84.0 million, representing organic growth of between 39% and 40% from 2018.
- Total written premiums placed grew 45% to
$196 millionin the fourth quarter of 2019, compared to $135 millionduring the fourth quarter of 2018. Total written premiums placed in 2019 were $739 million, an increase of 45% from 2018.
- Policies in force grew 44% to 482,000 at year end 2019, compared to 334,000 at year end 2018.
- Corporate sales headcount of 248 as of
December 31, 2019was up 49% year-over-year.
- Total franchises increased 47% compared to the prior-year period to 948 as of
December 31, 2019; total operating franchises grew 34% compared to the prior-year period to 614.
1 The revenue presented for the fourth quarter of 2019 reflects the Company’s preliminary estimates based on currently available information, is not a comprehensive statement of our financial results and is subject to change. The Company has provided a range, rather than a specific amount, for preliminary revenue estimates because its closing procedures for the year ended
During the fourth quarter, the Company’s mix of business continued to proportionately shift toward its Franchise Channel, as has been the case throughout 2019. This shift creates a growing short-term gap between premium growth and revenue growth.
“Our team delivered another year of strong organic growth in 2019, which is another testament to the predictability and reliability of our business model. We are also very pleased that we continue to attract increasingly high-quality franchise candidates to our system,” stated
The Company expects to release full fourth quarter and full year 2019 results in March 2020. Conference call details will be provided closer to the date.
Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 80 insurance companies that underwrite personal lines and small commercial lines risks, and its operations include a network of seven corporate sales offices and 948 operating and contracted franchise locations. For more information, please visit www.gooseheadinsurance.com.
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the caption “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended
Source: Goosehead Insurance, Inc.