Page 1

6 goosehead INSURANCE Goosehead Insurance , Inc. Announces Second Quarter 2021 Results and Will Demonstrate Digital Agent Platform July 28 , 2021 Total Revenue Growth of 28 % and Core Revenue Growth of 40 % over the Prior Year Period - - Total Written Premium Growth of 46 % over the Prior Year Period - Total Franchises and Corporate Sales Headcount Grew 59 % and 43 % , Respectively Record High Client Retention of 89 % - Policies in Force Growth of 48 % over the Prior Year Period - - Special Dividend of $ 60 Million Declared - WESTLAKE , Texas , July 28 , 2021 ( GLOBE NEWSWIRE ) -- Goosehead Insurance , Inc. ( " Goosehead " or the " Company " ) ( NASDAQ : GSHD ) , a rapidly growing independent personal lines insurance agency , today announced results for the second quarter ended June 30 , 2021 . Second Quarter 2021 Highlights • Total Revenues grew organically 28 % to $ 38.2 million in the second quarter of 2021 • Core Revenues * of $ 34.7 million increased 40 % over the prior year period • Second quarter net income of $ 3.1 million ; net income attributable to Goosehead Insurance , Inc. of $ 1.5 million or $ 0.08 per basic share and $ 0.07 per diluted share • Second quarter Adjusted EBITDA * of $ 6.8 million . • Second quarter Adjusted EPS * of $ 0.13 per share . • Total written premiums placed increased 46 % from the prior - year period to $ 399 million • Policies in force grew 48 % from the prior - year period to 872,000 • Corporate sales headcount of 452 was up 43 % year - over - year • Total franchises increased 59 % compared to the prior year period to 1,801 ; operating franchises grew 47 % compared to the prior - year period to 1,072 * Core Revenue , Adjusted EPS , and Adjusted EBITDA are non - GAAP measures . Reconciliations of Core Revenue to total revenues , Adjusted EBITDA to net income and Adjusted EPS to basic earnings per share , the most directly comparable financial measures presented in accordance with GAAP , are set forth in the reconciliation table accompanying this release . " Our second quarter of 2021 saw continued momentum in our business and further reinforces our formidable and expanding competitive moat , " stated Mark E. Jones , Chairman and CEO . " We achieved these strong growth levels while continuing to deliver an unmatched client experience as evidenced by our 92 net promoter score which drove a record level of client retention of 89 % . We are very excited to launch our Digital Agent Platform in the coming weeks . We believe this innovative proprietary platform will be highly differentiated from any competitive offering in the marketplace , providing an effortless insurance shopping experience that leverages artificial intelligence driven by our accumulated experience of millions of quotes prepared by our professional agents . With as little as three data points - name , address , and date of birth clients will be able to generate accurate home and auto quotes online from multiple carriers in less than 60 seconds . We are excited to demonstrate this platform during our Q2 results call this afternoon . We believe this powerful technology will be accretive to revenue over time , strengthen our existing go - to - market strategy through lenders , realtors and client referrals , and enhance the value proposition for our clients , agents and franchises . " Second Quarter 2021 Results For the second quarter of 2021 , revenues were $ 38.2 million , an increase of 28 % compared to the corresponding period in 2020. Core Revenues , a non - GAAP measure which excludes contingent commissions and initial franchise fees , were $ 34.7 million , a 40 % increase from $ 24.7 million in the prior year period . Core Revenues are the most reliable revenue stream for the Company , consisting of New Business Commissions , Agency Fees , New Business Royalty Fees , Renewal Commissions , and Renewal Royalty Fees . Core Revenue growth was driven by growth in the number of corporate agents and operating franchises ( which were driven by investments in our recruiting team in 2019 and prior ) , productivity improvements in the Franchise Channel , and increasingly high levels of retention of 89 % . The Company grew total written premiums , which we consider to be the leading indicator of future revenue growth , by 46 % in the second quarter . Total operating expenses for the second quarter of 2021 were $ 34.4 million , up 54 % from $ 22.3 million in the prior - year period . The increase from the prior period was due to larger employee compensation and benefits expenses related to ongoing investments in our corporate agents , agent support team , service agents , and information systems developers . Also , we continued to expand our real estate footprint with additional office openings , plus additional investments in our technology roadmap , including finalizing our Digital Agent Platform and enhancements to our client - facing portal , which grew the Company's general and administrative expenses for the quarter . Net income for the second quarter of 2021 was $ 3.1 million . We expect to continue to experience seasonality in our earnings throughout each year due to insurance sales patterns and recognition of contingent commissions , with the bulk of contingents realized in the fourth quarter . Net income attributable to Goosehead Insurance , Inc. for the second quarter of 2021 was $ 1.5 million , or $ 0.08 per basic share and $ 0.07 per diluted share . Total Adjusted EBITDA was $ 6.8 million for the second quarter of 2021. Adjusted EPS for the second quarter of 2021 , which excludes equity - based compensation , was $ 0.13 per share .