Goosehead Insurance, Inc (NASDAQ:GSHD) Q2 2019 Earnings Conference Call Transcript

Aug 01, 2019 • 05:00 pm ET

Previous

Goosehead Insurance, Inc (NASDAQ:GSHD) Q2 2019 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Greetings, and welcome to the Goosehead Insurance Second Quarter 2019 Earnings Conference Call. [Operator Instructions]

I'd now like to turn the conference over to your host, Garrett Edson. Thank you. You may begin.

Executive
Garrett Edson

Thank you. And good afternoon. With us today are your host Mark Jones, Chairman and Chief Executive Officer of Goosehead; Michael Colby, President and Chief Operating Officer; and Mark Colby, Chief Financial Officer.

By now, everyone should have access to our earnings announcement, which was released prior to this call and which may also be found on our website at ir.gooseheadinsurance.com.

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 managements of today. The 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.

These statements are not guarantees of future performance and therefore undue reliance should not be placed upon them. We refer all of you to our recent filings with the SEC for a more detailed discussion of the risks and uncertainties that could impact the future operating results and financial condition of Goosehead Insurance. We disclaim any intentions or obligations to update or revise any forward-looking statements, except to the extent required by applicable law.

In addition, this call is being webcast and an archive version will be available shortly after the call ends on the Investor Relations portion of the Company's website at www.gooseheadinsurance.com.

With that, I'd now like to turn the call over to CEO, Mark Jones. Please go ahead.

Executive
Mark E. Jones

Thanks, Garrett. And welcome to our second quarter 2019 earnings call. As we've done on previous calls, I will provide an overview of the quarter and year-to-date, as well as discuss our long-term strategy. I'll then hand the call over to our President and Chief Operating Officer, Mike Colby, who will update you on our latest technology enhancements and how our ongoing innovation continues to support our high levels of sustained, rapid organic growth and profitability. Our CFO, Mark Colby will then follow and provide more details about our second quarter and year-to-date results.

During the second quarter, we continue to demonstrate the effectiveness of our strategy and our execution capabilities with growth continuing to accelerate. We delivered revenue growth of 31% to $19.4 million, and written premium growth of 46% to $194 million compared to the second quarter of 2018. The largest contributor by far to the difference between revenue and premium growth was the mix of new business being more heavily weighted to the Franchise Channel. As a reminder, our share of first term revenues earned in the Franchise Channel is 20%, while our share of renewal revenues grows to 50%. With the Franchise Channel contributing 73% of new premiums for this quarter, we have spring-loaded future revenue and earnings growth,