Q1 2024 Hagerty Inc Earnings Call Transcript
Key Points
- Hagerty Inc (HGTY) reported a 24% growth in total revenue to $272 million in the first quarter.
- Commission revenue and insurance rates increased by 19% and 3% respectively, contributing to overall financial growth.
- The company achieved a significant improvement in operating margins, which jumped 1,200 basis points, leading to a $23 million increase in net income.
- Hagerty Inc (HGTY) saw a robust new business count and improved retention rate of 89%, up from 88% the previous year.
- The company's marketplace and auction platforms showed strong performance, with the Amelia live auction marketplace achieving over $15 million in sales.
- Despite overall growth, certain segments like the garage and social results partially offset strong marketplace results.
- The company is still in the early stages of significant initiatives like the State Farm Classic Plus program and the launch of the Enthusiast Plus product, which may pose risks if not executed well.
- Hagerty Inc (HGTY) reported a net income attributable to Class A common shareholders of negative $3 million due to earnings attribution to noncontrolling interest and accretion on preferred stock.
- The company's operating margin, while improved, is still relatively low at 4.5%.
- There are ongoing challenges with the balance of supply and demand in the marketplace, which could affect the sell-through rate and overall marketplace growth.
Greetings and welcome to the Hagerty First Quarter 2024 earnings call. This time, all participants are in a listen-only mode, and a question and answer session will follow the formal presentation. If anyone should require operator assistance during today's conference, please press star-zero from your telephone keypad. Please note this conference is being recorded.
At this time, I'll now turn the conference over to Jay Koval with Investor Relations. Mr. Kobal, you may now begin.
Thank you, operator. Good morning, everyone, and thank you for joining us to discuss Hagerty results for the first quarter of 2024. I'm joined this morning by McNeil Hagerty, Chief Executive Officer and Chairman and Patrick by climate Chief Financial Officer.
During this morning's conference call, we will refer to an accompanying presentation that is available on Hercules Investor Relations section of the Company's corporate website at investor dot Hagerty.com. Our earnings release accompanying slides and letter to
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