Q3 2024 Goosehead Insurance Inc Earnings Call

October 23, 2024

After the Speakers' presentation there'll be a question and answer session to ask a question. During the session you will need to press star one on your telephone.

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Speaker Change: Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today, Dan Farrell Vice President of capital markets. Please go ahead.

Okay.

Speaker Change: Good day, and thank you for standing by and welcome to Goose had insurance third quarter 2020 for earning conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session.

[music].

Dan Farrell: Thank you and good afternoon 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 management as of today forward looking statements in our discussion are subject to various assumptions risks uncertainties that.

Speaker Change: Ask a question during the session you will need to press star one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded and now I'd like to hand, the conference over to your speaker today, Dan Farrell, Vice President of capital markets.

Okay.

Good day, and thank you for standing by and welcome to Goose had insurance third quarter 2020 for earning conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one.

Dan Farrell: 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 you to all of our SEC recent SEC filings for more detailed discussion of risks and uncertainties that could.

Speaker Change: Please go ahead.

On your telephone.

He will then here in the automated message advising your hand is raised to withdraw your question. Please press star one again.

Dan Farrell: Impact future operating results and financial condition of <unk>, we disclaim any intention or obligation to update or revise any forward looking statements except to the extent required by applicable law.

Be advised that today's conference is being recorded and now I'd like to hand, the conference over to your speaker today, Dan Farrell Vice President of capital markets. Please go ahead.

Dan Farrell: I would also like to point out that during this call. We will discuss certain financial measures that are not prepared in accordance with GAAP management uses these non-GAAP financial measures when planning monitoring and evaluating our performance.

Dan Farrell: 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 you to all of our SEC recent SEC filings for more detailed discussion of risks and uncertainties that could.

Thank you and good afternoon 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 management as of today forward looking statements in our discussion are subject to various assumptions risks uncertainties.

Dan Farrell: We consider these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons period to period by including potential differences caused by variations in capital structure tax position depreciation amortization and certain other items that we believe are not representative of our core business for more information regarding.

Speaker Change: Certainties 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 you to all of our SEC recent SEC filings for more detailed discussion of risks and uncertainties.

Dan Farrell: The use of non-GAAP financial measures, including reconciliation of these measures to the most recent comparable GAAP financial measures. We refer you to today's earnings release. In addition, this call is being webcast an archived version will be available. Shortly after the call ends on the Investor Relations portion of the company's website at <unk> Dot Com now I would like to turn the call.

Speaker Change: That could impact future operating results and financial condition of <unk>, we disclaim any intention or obligation to update or revise any forward looking statements except to the extent required by applicable law.

Dan Farrell: We consider these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons period to period.

Speaker Change: Over to our President and CEO Mark Miller.

Dan Farrell: Including potential differences caused by variations in capital structure tax position depreciation amortization and certain other items that we believe are not representative of our core business.

Mark Miller: Thanks, Dan and good afternoon, everyone. Thank you for joining our third quarter earnings call.

Mark Miller: Two years ago, when I joined the executive team, we had some significant challenges in the business that required intense focus.

Dan Farrell: More information regarding the use of non-GAAP financial measures, including reconciliation of these measures to the most recent comparable GAAP financial measures. We refer you to today's earnings release. In addition, this call is being webcast an archived version will be available. Shortly after the call ends on the Investor Relations portion of the company's website at <unk> Dot Com <unk>.

Mark Miller: We had allowed our recruiting standards this slide and our organization had a rising level of unproductive corporate and franchise agents.

This challenge was amplified by the fact that we were also facing the economic upheaval triggered by the pandemic and the increase in intense weather related events.

Speaker Change: Now I'd like to turn the call over to our President and CEO Mark Miller.

Speaker Change: The use of non-GAAP financial measures, including reconciliation of these measures to the most recent comparable GAAP financial measures. We refer you to today's earnings release. In addition, this call is being webcast an archived version will be available. Shortly after the call ends on the Investor Relations portion of the company's website at <unk> Dot Com now I'd like to turn the <unk>.

Mark Miller: Our team confronted these challenges head on and as a result today, our franchises are healthier and our agents are more productive.

Thanks, Dan and good afternoon, everyone. Thank you for joining our third quarter earnings call.

Mark Miller: We have achieved record profitability and for the first time in our company history.

Mark Miller: Two years ago, when I joined the executive team, we had some significant challenges in the business that required intense focus.

Mark Miller: <unk> insurance has reached the milestone of $1 billion in premium within a single quarter.

Mark Miller: We had allowed our recruiting standards this slide and our organization had a rising level of unproductive corporate and franchise agents.

Mark Miller: For a point of reference this is 10 times the size we were at our IPO in April 2018.

Speaker Change: Call over to our President and CEO Mark Miller.

Mark Miller: This challenge was amplified by the fact that we were also facing the economic upheaval triggered by the pandemic and the increase in intense weather related events.

Thanks, Dan and good afternoon, everyone. Thank you for joining our third quarter earnings call.

Mark Miller: This transformation is a testament to our unwavering commitment to our strategic operating plan innovation and the resiliency of our team.

Mark Miller: Two years ago, when I joined the executive team, we had some significant challenges in the business that required intense focus.

Mark Miller: Our team confronted these challenges head on and as a result today, our franchises are healthier and our agents are more productive.

Mark Miller: While the insurance industry dynamics seem to continuously change our value proposition for our clients and carrier partners remains constant.

Dan Farrell: We had allowed our recruiting standards to slide in our organization had a rising level of unproductive corporate and franchise agents.

Mark Miller: We have achieved record profitability and for the first time in our company history.

Mark Miller: For our clients, we deliver unrivaled choice candid advice and concierge service.

Speaker Change: This challenge was amplified by the fact that we were also facing the economic upheaval triggered by the pandemic.

Mark Miller: <unk> insurance has reached the milestone of $1 billion in premium within a single quarter.

Mark Miller: For our carriers, we provide broad and efficient distribution.

Speaker Change: The increase in intense weather related events.

Mark Miller: For a point of reference this is 10 times the size we were at our IPO in April 2018.

Speaker Change: Our team confronted these challenges head on and as a result today, our franchises are healthier and our agents are more productive.

Mark Miller: With every policy we issue every connection we foster and every decision we make we are building a legacy of trust and value.

Mark Miller: This transformation is a testament to our unwavering commitment to our strategic operating plan innovation and the resiliency of our team.

Mark Miller: <unk> achieved record profitability and for the first time in our company history.

Mark Miller: We will continue to lead the way in personal lines insurance distribution with our industry, leading technology and highly trained agents.

Mark Miller: <unk> insurance has reached the milestone of $1 billion in premium within a single quarter.

Mark Miller: While the insurance industry dynamics seem to continuously change our value proposition for our clients and carrier partners remains constant.

Mark Miller: We have taken many decisive actions of the past couple of years designed to strengthen our business and we know we are healthier than ever.

Mark Miller: For a point of reference this is 10 times the size we were at our IPO in April 2018.

Mark Miller: For our clients, we deliver unrivaled choice candid advice and concierge service.

Mark Miller: This transformation is a testament to our unwavering commitment to our strategic operating plan innovation and the resiliency of our team.

Mark Miller: We've expanded our margins, while investing in technology and service.

For our carriers, we provide broad inefficient distribution.

Mark Miller: And gain a competitor to gain a competitive advantage.

This challenging product market has forced us to develop more operational discipline, allowing us to adapt to opportunities more quickly. Thanks.

Mark Miller: With every policy we issue every connection we foster and every decision we make we are building a legacy of trust and value.

Mark Miller: While the insurance industry dynamics seem to continuously change our value proposition for our clients and carrier partners remains constant.

Mark Miller: Thanks to those investments, we're confidently beginning to reaccelerate growth with more agents and broader geographic distribution.

Mark Miller: We will continue to lead the way in personal lines insurance distribution with our industry, leading technology and highly trained agents.

Mark Miller: For our clients, we deliver unrivaled choice candid advice and concierge service.

Mark Miller: Growing our corporate agent base requires a strong recruiting engine at major universities.

Mark Miller: For our carriers, we provide broad inefficient distribution.

Mark Miller: We have taken many decisive actions of the past couple of years designed to strengthen our business and we know we are healthier than ever.

Mark Miller: With every policy we issue every connection we foster and every decision we make we are building a legacy of trust and value.

Mark Miller: Franchise agent growth takes a highly skilled franchise development team sourcing entrepreneurs that want to build a business.

Mark Miller: We've expanded our margins, while investing in technology and service.

Once the franchise's establish we help our owners find talented agents to grow their businesses.

We will continue to lead the way in personal lines insurance distribution with our industry, leading technology and highly trained agents.

Mark Miller: And gain a competitor to gain a competitive advantage.

Mark Miller: This challenging product market has forced us to develop more operational discipline, allowing us to adapt to opportunities more quickly. Thanks.

Mark Miller: We've invested heavily in building a world class talent acquisition function that has the capability to recruit hundreds of corporate agents of college campuses each year.

Mark Miller: We have taken many decisive actions in the past couple of years designed to strengthen our business and we know were healthier than ever.

Mark Miller: Thanks to those investments, we're confidently beginning to reaccelerate growth with more agents and broader geographic distribution.

Mark Miller: We've expanded our margins, while investing in technology and service.

Mark Miller: This year's college recruiting classes, the largest group we've ever recruited and we believe the highest quality.

Mark Miller: Growing our corporate agent base requires a strong recruiting engine at major universities.

Mark Miller: And gain a competitor to gain a competitive advantage.

As a result, our corporate agent head count grew from 276 in Q2 2023 to 458 at the end of Q3 2024.

Mark Miller: This challenging product market has forced us to develop more operational discipline, allowing us to adapt to opportunities more quickly.

Mark Miller: Franchise agent growth takes a highly skilled franchise development team sourcing entrepreneurs that want to build a business.

Mark Miller: Thanks to those investments, we're confidently beginning to reaccelerate growth with more agents and broader geographic distribution.

Mark Miller: Given confidence in our improved recruiting process and sales management, we have decided to open a new corporate office early next year in Phoenix with the goal of expanding and diversifying our footprint.

Mark Miller: Once the franchise's establish we help our owners find talented agents to grow their businesses.

We have invested heavily in building a world class talent acquisition function that has the capability to recruit hundreds of corporate agents of college campuses each year.

Mark Miller: Growing our corporate agent base requires a strong recruiting engine at major universities.

Franchise agent growth takes a highly skilled franchise development team sourcing entrepreneurs that want to build a business.

This office offers an exciting new career path for corporate agents and supports Western U S franchise expansion.

Mark Miller: This year's college recruiting classes, the largest group we've ever recruited and we believe the highest quality.

Mark Miller: Once the franchise's establish we help our owners find talented agents to grow their businesses.

Mark Miller: We still believe one of the best ways to grow a healthy franchise business is by placing some of our best corporate agents and the franchise ownership in Underpenetrated geographies.

As a result, our corporate agent head count grew from 276 in Q2 2023 to 458 at the end of Q3 2024.

Mark Miller: We've invested heavily in building a world class talent acquisition function that has the capability to recruit hundreds of corporate agents of college campuses each year.

Mark Miller: Corporate agents that convert to franchises tend to stay longer produce more and replicate themselves.

Mark Miller: This year's college recruiting classes, the largest group we've ever recruited and we believe the highest quality.

Mark Miller: As an example.

Mark Miller: Last quarter, Tyler silver and ex corporate agent term franchise owner sold over $100000 in new business revenue or.

Mark Miller: As a result, our corporate agent head count grew from 276 in Q2 2023 to 458 at the end of Q3 2024.

Mark Miller: This office offers an exciting new career path for corporate agents and supports Western U S franchise expansion.

Mark Miller: A remarkable first year accomplishment.

Tyler joined <unk> four years ago in our Fort worth office.

Mark Miller: We recruited him from the University of Florida, but he is a native of North Carolina. He spent three years in Texas protecting our sales processes and acquiring leadership skills that would benefit us ability to build a large franchise in the future.

We still believe one of the best ways to grow a healthy franchise business is by placing some of our best corporate agents and the franchise ownership in Underpenetrated geographies.

Corporate agents that convert to franchises tend to stay longer produce more and replicate themselves.

Mark Miller: This office offers an exciting new career path for corporate agents and supports Western U S franchise expansion.

Mark Miller: A year ago. This month, Tyler opened as franchise in Raleigh, North Carolina.

Mark Miller: As an example last quarter, Tyler silver and ex corporate agent term franchise owner sold over $100000 in new business revenue.

Mark Miller: Over the past year, Tyler has established a sizeable referral partner network in his area rebuilt to substantial book and more recently hired as first producer.

Mark Miller: We still believe one of the best ways to grow a healthy franchise business is by placing some of our best corporate agents and the franchise ownership in Underpenetrated geographies.

Mark Miller: A remarkable first year accomplishment.

Mark Miller: Tyler joined <unk> four years ago in our Fort worth office.

Mark Miller: Tyler represents the type of individual that could build a thriving multi agent multi location franchise operation in the future.

Mark Miller: Corporate agents that convert to franchises tend to stay longer produce more and replicate themselves.

Mark Miller: We recruited him from the University of Florida, but he's a native of North Carolina. He spent three years in Texas perfecting our sales processes and acquiring leadership skills that would benefit us ability to build a large franchise in the future.

Mark Miller: As an example.

Mark Miller: Our recruiting engine has also been extremely successful in helping source new agents for our existing franchises.

Mark Miller: Last quarter, Tyler silver and ex corporate agent turn franchise owner sold over $100000 in new business revenue or.

Mark Miller: We call. This our agency staffing program, our Asps for short.

Mark Miller: A remarkable first year accomplishment.

Mark Miller: A year ago. This month, Tyler openness franchise in Raleigh, North Carolina.

Mark Miller: Tyler joined <unk> four years ago in our Fort worth office.

Mark Miller: Through the first nine months of this year, our scaling franchises have hired over 500 producers with Asps sourcing about half of those.

Mark Miller: Over the past year, Tyler has established a sizeable referral partner network in his area rebuilt to substantial book and more recently hired as first producer.

Mark Miller: And our producers.

Mark Miller: Accrued through the Asps have generated more than $1 million in incremental recurring revenue.

Mark Miller: Tyler represents the type of individual that could build a thriving multi agent multi location franchise operation in the future.

Mark Miller: This program coupled with the franchisees one recruiting efforts has increased our average <unk> per franchise to one nine from $1 six a year ago.

Mark Miller: A year ago. This month, Tyler openness franchise in Raleigh, North Carolina.

Mark Miller: Our recruiting engine has also been extremely successful in helping source new agents for our existing franchises.

Over the past year, Tyler has established a sizeable referral partner network in his area rebuilt to substantial book and more recently hired as first producer.

Mark Miller: We expect to continue to drive this number higher.

Mark Miller: We call. This our agency staffing program, our Asps for short.

Mark Miller: Creating the potential for exponential growth and new business production.

Mark Miller: Tyler represents the type of individual that could build a thriving multi agent multi location franchise operation in the future.

Mark Miller: Through the first nine months of this year, our scaling franchises have hired over 500 producers with Asps sourcing about half of those.

Mark Miller: To recruit more qualified franchises across the country, we have more than doubled the size of our franchise development team in the past six months.

Mark Miller: Our recruiting engine has also been extremely successful in helping source new agents for our existing franchises.

Mark Miller: And our producers recruited through the Asps have generated more than $1 million in incremental recurring revenue.

Mark Miller: In Q3, we added 30, new franchises from 17 different states.

Mark Miller: We call. This our agency staffing program, our ASP for short.

Mark Miller: This program coupled with the franchisees one recruiting efforts has increased our average <unk> per franchise to one nine from $1 six a year ago.

Mark Miller: We believe this is one of the most talented groups of owners, we have ever launched and strongly supports our strategic initiative to diversify our agent force across the United States.

Mark Miller: Through the first nine months of this year, our scaling franchises have hired over 500 producers with Asps sourcing about half of those.

Mark Miller: Our efforts to rationalize the franchise base over the past couple of years has proven to be successful and the financial health of the entire franchise community has materially improved.

Mark Miller: We expect to continue to drive this number higher.

Mark Miller: And our producers recruited through the Asps have generated more than $1 million in incremental recurring revenue.

Mark Miller: Creating the potential for exponential growth and new business production.

Mark Miller: To recruit more qualified franchises across the country, we have more than doubled the size of our franchise development team in the past six months.

Mark Miller: This program coupled with the franchisees one recruiting efforts has increased our average <unk> per franchise to one nine from $1 six a year ago.

Mark Miller: During Q3 36 operating franchises exited the system versus 89, a year ago using the same compliance standards.

Mark Miller: In Q3, we added 30, new franchises from 17 different states.

Mark Miller: The other part of the revenue equation is getting more productivity out of each agent.

Mark Miller: We expect to continue to drive this number higher.

Mark Miller: The insurance product market and housing market conditions can factor into how productive our agents are at any given time.

Mark Miller: Creating the potential for exponential growth and new business production.

Mark Miller: To recruit more qualified franchises across the country, we have more than doubled the size of our franchise development team in the past six months.

Mark Miller: However, we continue to stay focused on what we can control to mitigate any external forces.

Our efforts to rationalize the franchise base over the past couple of years has proven to be successful and the financial health of the entire franchise community has materially improved.

Mark Miller: To combat market headwinds, we have intensified our agent training programs and refined our referral partner marketing techniques to generate more leads per agent per day.

Mark Miller: In Q3, we added 30, new franchises from 17 different states.

Mark Miller: During Q3 36 operating franchises exited the system versus 89, a year ago using the same compliance standards.

Mark Miller: Our franchise productivity improved 52% year over year. Thanks in large part to increased referral partner activations, leading to higher leads per agent.

Mark Miller: The other part of the revenue equation is getting more productivity out of each agent.

Our efforts to rationalize the franchise base over the past couple of years has proven to be successful and the financial health of the entire franchise community has materially improved.

Mark Miller: The insurance product market and housing market conditions can factor into how productive our agents are at any given time.

Mark Miller: Conversions of top performing corporate agents into franchise ownership and.

Mark Miller: And the growth of scaling franchises.

Mark Miller: During Q3 36 operating franchises exited the system versus 89, a year ago using the same compliance standards.

Mark Miller: These franchises tend to have higher productivity levels per agent due to more highly refined sales processes.

Mark Miller: However, we continue to stay focused on what we can control to mitigate any external forces.

Mark Miller: To combat market headwinds, we have intensified our agent training programs and refined our referral partner marketing techniques to generate more leads per agent per day.

Mark Miller: On the corporate side of the business, we are investing heavily in growing capacity, which naturally decreases tenure and productivity.

Mark Miller: The other part of the revenue equation is getting more productivity out of each agent.

The insurance product market and housing market conditions can factor into how productive our agents are at any given time.

Mark Miller: However, we believe the corporate sales team is now well positioned for the future.

Our franchise productivity improved 52% year over year. Thanks in large part to increased referral partner activations, leading to higher leads per agent.

Mark Miller: Expanding on the product market for just a moment.

Mark Miller: However, we continue to stay focused on what we can control to mitigate any external forces.

Mark Miller: As you've likely seen auto insurance is showing signs of improvement with carriers gradually opening capacity and rate increase is starting to ease.

Mark Miller: To combat market headwinds, we have intensified our agent training programs and refined our referral partner marketing techniques to generate more leads per agent per day.

Mark Miller: Inversions have top performing corporate agents into franchise ownership.

Mark Miller: And the growth of scaling franchises.

Mark Miller: While we're seeing positive momentum on auto the homeowners market remains challenged however, we are seeing signs of market stabilization and potential for future product expansion as carriers reach rate adequacy and make changes to policy terms and conditions.

Mark Miller: These franchises tend to have higher productivity levels per agent due to more highly refined sales processes.

Mark Miller: Our franchise productivity improved 52% year over year. Thanks in large part to increased referral partner activations, leading to higher leads per agent.

Mark Miller: On the corporate side of the business, we are investing heavily in growing capacity, which naturally decreases tenure and productivity.

Mark Miller: Conversions of top performing corporate agents into franchise ownership and.

Mark Miller: As of now we do not know the financial impacts of the recent catastrophic hurricanes that hit, Florida, Georgia, and North Carolina.

Mark Miller: However, we believe the corporate sales team is now well positioned for the future.

Mark Miller: And the growth of scaling franchises.

Mark Miller: Expanding on the product market for just a moment.

Mark Miller: These franchises tend to have higher productivity levels per agent due to more highly refined sales processes.

Mark Miller: As you've likely seen auto insurance is showing signs of improvement with carriers gradually opening capacity and rate increase is starting to ease.

Mark Miller: More importantly, our hearts go out to the people affected by Helene and Milton.

Mark Miller: On the corporate side of the business, we are investing heavily in growing capacity, which naturally decreases tenure and productivity.

We still believe that homeowners insurance will be an increasingly attractive line for carriers given pricing updates.

Mark Miller: While we're seeing positive mentum on auto the homeowners market remains challenged however, we are seeing signs of market stabilization and potential for future product expansion as carriers reach rate adequacy and make changes to policy terms and conditions.

Mark Miller: Underwriting changes.

Mark Miller: However, we believe the corporate sales team is now well positioned for the future.

Mark Miller: And the favorable client profile across all product lines.

Mark Miller: Expanding on the product market for just a moment.

Mark Miller: We are uniquely positioned to bring high quality clients to our carriers given our go to market strategy that leads with the homeowners transaction first.

Mark Miller: As you've likely seen auto insurance is showing signs of improvement with carriers gradually opening capacity and rate increase is starting to ease.

As of now we do not know the financial impacts of the recent catastrophic hurricanes that hit, Florida, Georgia, and North Carolina and more importantly, our hearts go out to the people affected by Helene and Milton.

Regardless of market turbulence, we are pleased to report that we're beginning to see retention rates stabilize.

Mark Miller: While we are seeing positive momentum on auto the homeowners market remains challenged however, we are seeing signs of market stabilization and potential for future product expansion as carriers reach rate adequacy and make changes to policy terms and conditions.

Mark Miller: Client retention was flat at 84% for the second quarter to the third quarter of this year.

Mark Miller: We still believe that homeowners insurance will be an increasingly attractive line for carriers given pricing updates.

Mark Miller: This is after multiple quarters in a row of sequential declines due to historically high premium rate increases driving client shopping activity.

Mark Miller: Underwriting changes.

As of now we do not know the financial impacts of the recent catastrophic hurricanes that hit, Florida, Georgia, and North Carolina.

Mark Miller: And the favorable client profile across all product lines.

Mark Miller: Stability in our client retention is a huge factor in the Reacceleration of our policy in force growth rate to 12% in the quarter compared to 11% in Q2 and.

We are uniquely positioned to bring high quality clients to our carriers given our go to market strategy that leads with the homeowners transaction first.

Mark Miller: More importantly, our hearts go out to the people affected by Helene and Milton.

Mark Miller: We still believe that homeowners insurance will be an increasingly attractive line for carriers given pricing updates.

Mark Miller: And we have confidence that retention will return to historically high levels over time as the product environment inevitably improves.

Mark Miller: Regardless of market turbulence, we are pleased to report that we're beginning to see retention rates stabilize.

Mark Miller: Underwriting changes.

Mark Miller: And the favorable client profile across all product lines.

Client retention was flat at 84% for the second quarter to the third quarter of this year.

Mark Miller: We have strengthened our business expanded our margins and sharpened our operational discipline, enabling us to adapt swiftly to accelerate growth.

Mark Miller: We are uniquely positioned to bring high quality clients to our carriers given our go to market strategy that leads with the homeowners transaction first.

Mark Miller: This is after multiple quarters in a row of sequential declines due to historically high premium rate increases driving client shopping activity.

Mark Miller: Our recruiting efforts are thriving we've doubled down on our franchise development capability, our retention rates are stabilizing and margins are improving.

Mark Miller: Regardless of market turbulence, we are pleased to report that we're beginning to see retention rates stabilize.

Mark Miller: Stability in our client retention is a huge factor in the Reacceleration of our policy in force growth rate to 12% in the quarter compared to 11% in Q2 and.

Mark Miller: Client retention was flat at 84% for the second quarter to the third quarter of this year.

Mark Miller: As we celebrate the remarkable achievement of hitting $1 billion in premium for the quarter and look ahead.

Mark Miller: And we have confidence that retention will return to historically high levels over time as the product environment inevitably improves.

Mark Miller: This is after multiple quarters in a row of sequential declines due to historically high premium rate increases driving client shopping activity.

Mark Miller: Wanted to extend my gratitude to our dedicated employees franchise partners and carriers.

Mark Miller: Together, we're redefining how insurance is distributed.

Mark Miller: We have strengthened our business expanded our margins and sharpened our operational discipline, enabling us to adapt swiftly to accelerate growth.

Mark Miller: Stability in our client retention is a huge factor in the Reacceleration of our policy in force growth rate to 12% in the quarter compared to 11% in Q2 and.

Speaker Change: With that I'll turn over the call to Mark Jones Junior our CFO.

Speaker Change: Thanks, Mark and good afternoon to everyone on the call we.

Mark Miller: Our recruiting efforts are thriving we've doubled down on our franchise development capability, our retention rates are stabilizing and margins are improving.

Speaker Change: We delivered exceptional results in the third quarter that further demonstrate our building growth momentum. Despite what is still a very challenging product and real estate environment.

Mark Miller: And we have confidence that retention will return to historically high levels over time as the product environment inevitably improves.

Speaker Change: Our continued execution exemplifies the strength and consistency of our business model are.

Mark Miller: As we celebrate the remarkable achievement of hitting $1 billion in premium for the quarter and look ahead.

Mark Miller: We have strengthened our business expanded our margins and sharpened our operational discipline, enabling us to adapt swiftly to accelerate growth.

Speaker Change: Our business is very naturally hedged, allowing us to deliver strong growth and improving margin and varying macro environments.

Mark Miller: Wanted to extend my gratitude to our dedicated employees franchise partners and carriers.

Mark Miller: Our recruiting efforts are thriving we've doubled down on our franchise development capability, our retention rates are stabilizing and margins are improving.

Speaker Change: As product availability, constricts and premiums rise, placing some additional challenge on new business production, but drives up the value of the entire renewal book.

Mark Miller: Together, we are redefining how insurance is distributed.

Speaker Change: With that I'll turn over the call to Mark Jones Junior our CFO.

As we celebrate the remarkable achievement of hitting $1 billion in premium for the quarter and look ahead.

Speaker Change: Thanks, Mark and good afternoon to everyone on the call we.

Speaker Change: Premium growth rates level off product becomes more available, allowing us to drive significant new business production growth.

Mark Miller: Wanted to extend my gratitude to our dedicated employees franchise partners and carriers.

Speaker Change: A higher percentage of our existing book and earn more favorable contingent commissions.

Mark Miller: Together, we are redefining how insurance is distributed.

Speaker Change: Our continued execution exemplifies the strength and consistency of our business model are.

Speaker Change: We have resisted the temptation to expand adventure into other areas or to vertically integrate across the insurance spectrum potentially putting our core business at risk.

Speaker Change: With that I'll turn over the call to Mark Jones Junior our CFO.

Speaker Change: Our business is very naturally hedged, allowing us to deliver strong growth and improving margin and varying macro environments.

Speaker Change: Thanks, Mark and good afternoon to everyone on the call we.

Speaker Change: We believe we operate in the most favorable portion of the insurance value chain and we will remain maniacally focused on what we do best personal lines insurance brokerage.

We delivered exceptional results in the third quarter that further demonstrate our building growth momentum. Despite what is still a very challenging product and real estate environment.

Speaker Change: As product availability, constricts and premiums rise, placing some additional challenge on new business production, but drives up the value of the entire renewal book.

Speaker Change: The growth opportunity that lies in front of US is massive as we still represent less than 1% of the market share of the $480 billion U S personal lines market.

Mark Miller: Our continued execution exemplifies the strength and consistency of our business model are.

Speaker Change: As premium growth rates level off product becomes more available, allowing us to drive significant new business production growth.

Mark Miller: Our business is very naturally hedged, allowing us to deliver strong growth and improving margin and varying macro environments.

Speaker Change: A higher percentage of our existing book and earn more favorable contingent commissions.

Speaker Change: We possess a substantial competitive moat and will remain disciplined in our execution and commitment to our long term goal of becoming the largest distributor of personal lines insurance and our founders lifetime.

As product availability, constricts and premiums rise, placing some additional challenge on new business production, but drives up the value of the entire renewal book.

Speaker Change: We have resisted the temptation to expand adventure into other areas or to vertically integrate across the insurance spectrum potentially putting our core business at risk.

Speaker Change: At quarter end total franchise producers were 2093 up from 1995 as of the second quarter of 2024.

Mark Miller: As premium growth rates level off product becomes more available, allowing us to drive significant new business production growth.

We believe we operate in the most favorable portion of the insurance value chain and we will remain maniacally focused on what we do best personal lines insurance brokerage.

Speaker Change: A higher percentage of our existing book and earn more favorable contingent commissions.

Speaker Change: Our agency force continues to get stronger and continues to scale growing producers per franchise for the seventh consecutive quarter to $1 nine.

Speaker Change: The growth opportunity that lies in front of US is massive as we still represent less than 1% of the market share of the $480 billion U S personal lines market.

Speaker Change: We have resisted the temptation to expand adventure into other areas or to vertically integrate across the insurance spectrum potentially putting our core business at risk.

Speaker Change: This is an important stat because as we've discussed in the past each time, a franchise onboard as a producer it improves the productivity of everyone in that agency, creating exponential growth opportunity.

Speaker Change: We believe we operate in the most favorable portion of the insurance value chain and we will remain maniacally focused on what we do best personal lines insurance brokerage.

Speaker Change: We believe our franchises are now healthier than ever our same store sales were up 26% over the previous year and average gross pay per franchise was up 56% in the quarter when compared to the prior year.

Speaker Change: The growth opportunity that lies in front of US is massive as we still represent less than 1% of the market share of the $480 billion U S personal lines market.

Speaker Change: At quarter end total franchise producers were 2093 up from 1995 as of the second quarter of 2024.

We continue to believe investing to help our franchises built large scale agencies will be a significant growth lever over the long term, we are committed to helping our franchise's reach their full potential and will invest accordingly in training and technology to ensure our mutual success.

Speaker Change: Our agency force continues to get stronger and continues to scale growing producers per franchise for the seventh consecutive quarter to $1 nine.

Speaker Change: This is an important stat because as we've discussed in the past each time a franchise on boards of producer it improves the productivity of everyone in that agency, creating exponential growth opportunity.

Speaker Change: At quarter end total franchise producers were 2093 up from 1995 as of the second quarter of 2024.

Speaker Change: Corporate producers at quarter end were 458 up 45% from the year ago level of $3 16, while it is still early the initial indications are this summer recruiting class is one of the strongest and highest quality we have recruited.

Our agency force continues to get stronger and continues to scale growing producers per franchise for the seventh consecutive quarter to $1 nine.

Speaker Change: Given the seasonality of our recruiting which is largely in the second and third quarter, coupled with normal attrition, we expect corporate agent head count to end the year down slightly from the third quarter level.

Speaker Change: We continue to believe investing to help our franchises built large scale agencies will be a significant growth lever over the long term, we are committed to helping our franchise's reach their full potential and will invest accordingly in training and technology to ensure our mutual success.

We are already actively recruiting on 15 college campuses and look forward to driving further corporate agent growth in 2025 and beyond.

Speaker Change: Corporate producers at quarter end were 458 up 45% from the year ago level of $3 16.

Speaker Change: The growth of our corporate force is crucial to supporting the franchise network and having the ability to launch top performing corporate agents into franchises across the country.

Speaker Change: It is still early the initial indications are this summer recruiting class is one of the strongest and highest quality we have recruited.

Speaker Change: Moving to our results total written premiums the leading indicator of future revenues grew 28% over the prior year period to $1 billion.

Speaker Change: Corporate producers at quarter end were 458 up 45% from the year ago level of $3 16.

Speaker Change: This represented a record level of quarterly premium for the company and the first time quarterly premium exceeded $1 billion.

Speaker Change: We are already actively recruiting on 15 college campuses and look forward to driving further corporate agent growth in 2025 and beyond.

Speaker Change: It is still early the initial indications are this summer recruiting class is one of the strongest and highest quality we have recruited.

Speaker Change: This includes franchise premium growth of 33% to $825 million and corporate premium growth of 12% to $204 million.

Speaker Change: Our improving productivity, particularly in the franchise network, along with stabilizing client retention gives us confidence in our ability to continue to drive high levels of premium growth in the near and medium term.

Speaker Change: Moving to our results total written premiums the leading indicator of future revenues grew 28% over the prior year period to $1 billion.

Speaker Change: We are already actively recruiting on 15 college campuses and look forward to driving further corporate agent growth in 2025 and beyond.

Speaker Change: Total revenues for the quarter grew to $78 million.

Speaker Change: Representing 10% growth over the prior year period with core revenues of $73 5 million up 16% for the quarter.

Speaker Change: This represented a record level of quarterly premium for the company and the first time quarterly premium exceeded $1 billion.

This includes franchise premium growth of 33% to $825 million and corporate premium growth of 12% to $204 million.

Speaker Change: As our crop of new corporate agents progress through their first few months of selling.

Speaker Change: Moving to our results total written premiums the leading indicator of future revenues grew 28% over the prior year period to $1 billion.

Speaker Change: Our franchisees continue to reach new highs and productivity and we feel the benefit from stable client retention, we expect to drive faster core revenue growth in the fourth quarter when compared to the third quarter.

Speaker Change: This represented a record level of quarterly premium for the company and the first time quarterly premium exceeded $1 billion.

Speaker Change: As a result of dramatically lower franchise turnover cost recovery revenue declined 40% during the quarter to $1 $6 million further underscoring the stability and strength of our franchisees.

Speaker Change: This includes franchise premium growth of 33% to $825 million and corporate premium growth of 12% to $204 million.

Speaker Change: Total revenues for the quarter grew to $78 million.

Speaker Change: Representing 10% growth over the prior year period with core revenues of $73 $5 million up 16% for the quarter.

During the quarter, we terminated our transfer at 36 operating agencies compared to 89% the previous year period, which resulted in lower accelerated franchise fee revenue.

Speaker Change: As our crop of new corporate agents progress through their first few months of selling.

Speaker Change: As we discussed in the second quarter, the health of the franchise network is stronger than ever and we expect to deliver growth in the total operating franchises in 2025, which will result in a more normalized growth rate in cost recovery revenue.

Speaker Change: Total revenues for the quarter grew to $78 million.

Speaker Change: Representing 10% growth over the prior year period with core revenues of $73 5 million up 16% for the quarter.

Speaker Change: As a result of dramatically lower franchise turnover cost recovery revenue declined 40% during the quarter to $1 6 million further underscoring the stability and strength of our franchisees.

Ancillary revenues, which includes contingent commissions were $2 9 million down 44% from the year ago period.

Speaker Change: As our crop of new corporate agents progress through their first few months of selling.

Speaker Change: Given the core loss ratio improvement of our carrier partners observed thus far in 2024, we believe there is potential upside to our previous expectation of 35 basis points for the full year of total written premium as contingent commissions.

Speaker Change: During the quarter, we terminated our transfer at 36 operating agencies compared to 89% the previous year period, which resulted in lower accelerated franchise fee revenue.

Speaker Change: That information will not crystallized until the fourth quarter.

Speaker Change: The overall health of the auto market and underwriters approaching premium adequacy in the home market give us confidence that we will see improvement in contingent commissions in 2025.

Speaker Change: During the quarter, we terminated our transfer 36 operating agencies compared to 89% the previous year period, which resulted in lower accelerated franchise fee revenue.

Ancillary revenues, which includes contingent commissions were $2 9 million down 44% from the year ago period.

Speaker Change: We strive to provide our carrier partners with the highest growth and most profitable business. We can with the objective of becoming the lowest cost distributor for our underwriters.

Speaker Change: Our technology and our broad agent for us allow us to more precisely match carrier underwriting appetite with client demand in the market, which should drive efficiency and product availability and compensation over time.

Speaker Change: Ancillary revenues, which includes contingent commissions were $2 9 million down 44% from the year ago period.

Speaker Change: Policies in force were $1 6 million, an increase of 12% compared to 11% in the previous quarter.

Speaker Change: The overall health of the auto market and underwriters approaching premium adequacy in our home market give us confidence that we will see improvement in contingent commissions in 2025.

Given the core loss ratio improvement of our carrier partners observed thus far in 2024, we believe there is potential upside to our previous expectation of 35 basis points for the full year of total written premium as contingent commissions.

Speaker Change: This represented the first sequential improvement in our policies in force year over year growth rate in the last 13 quarters.

Speaker Change: We expect to drive gradual improvement in the policy in force growth rate through 2025, as our agents become more productive through advancement in the tenure curve, what we believe will be an improving macro environment and stable client retention rates.

Speaker Change: That information will not crystallized until the fourth quarter.

Speaker Change: We expect client retention to begin to improve as the home market improves and the rate of premium increase year over year begins to abate, we see no impediments to our client retention returning to our historical high of 89%.

Speaker Change: Yes.

Speaker Change: Policies in force were $1 6 million, an increase of 12% compared to 11% in the previous quarter. This.

Speaker Change: This represented the first sequential improvement in our policies in force year over year growth rate in the last 13 quarters.

Speaker Change: Adjusted EBITDA for the quarter was up 17% to $26 1 million from $22 $4 million, a year ago, and adjusted EBITDA margin expanded 193 basis points to 34% for the quarter compared to 32% in the year ago period.

Speaker Change: Policies in force were $1 6 million, an increase of 12% compared to 11% in the previous quarter.

We remained very disciplined in our cost controls, while still investing strategically in areas like human capital development and technology to secure our future growth.

This represented the first sequential improvement in our policies in force year over year growth rate in the last 13 quarters.

Speaker Change: We are matching our level of investment into new business generating technology with a technical ability of our carrier partners as they deploy more resources to growth facing technology, we will do the same.

Speaker Change: <unk> EBITDA for the quarter was up 17% to $26 1 million from $22 4 million a year ago, and adjusted EBITDA margin expanded 193 basis points to 34% for the quarter compared to 32% in the year ago period.

Speaker Change: We expect to deliver on our objective of margin improvement for the full year and anticipate continuing to do so in the future years to come.

Speaker Change: Our business continues to demonstrate strong cash generation, increasing operating cash flow for the quarter to $59 million from $37 4 million an increase of 58%.

Speaker Change: We remain very disciplined in our cost controls, while still investing strategically in areas like human capital development and technology to secure our future growth.

Speaker Change: At the end of the third quarter, we had $50 $1 million of cash and cash equivalents. Our unused line of credit was $74 8 million and total outstanding notes payable was $95 6 million.

Speaker Change: We are matching our level of investment into new business generating technology with the technical ability of our carrier partners as they deploy more resources to growth facing technology, we will do the same.

Speaker Change: This puts our debt to trailing four quarter EBITDA at one two times and net debt to trailing four quarter EBITDA at just <unk> six times.

Speaker Change: We remained very disciplined in our cost controls, while still investing strategically in areas like human capital development and technology to secure our future growth.

Speaker Change: We expect to deliver on our objective of margin improvement for the full year and anticipate continuing to do so in the future years to come.

Speaker Change: Our business continues to demonstrate strong cash generation, increasing operating cash flow for the quarter to $59 million from $37 4 million an increase of 58%.

Speaker Change: Our strong cash generation and significant balance sheet flexibility provides us with ample optionality to drive shareholder value through capital returns.

Speaker Change: As we have previously stated we will look to maintain an efficient balance sheet with conservative debt leverage.

Speaker Change: We expect to deliver on our objective of margin improvement for the full year and anticipate continuing to do so in the future years to come.

Speaker Change: Our current debt facility matures in July of 2026, meaning it becomes current on our balance sheet. In July of 2025, we began reviewing options for a new term loan and revolving credit facility.

Speaker Change: Our business continues to demonstrate strong cash generation, increasing operating cash flow for the quarter to $59 million from $37 4 million an increase of 58%.

Speaker Change: This puts our debt to trailing four quarter EBITDA at one two times and net debt to trailing four quarter EBITDA at just <unk> six times.

Speaker Change: Consistent with our historical stance, we are comfortable with leverage levels of approximately three to four times, our trailing four quarter EBITDA and given our strong cash generation and consistent earnings growth, we delever very quickly.

Speaker Change: Our strong cash generation and significant balance sheet flexibility provides us with ample optionality to drive shareholder value through capital return.

Speaker Change: In the past we have elected for special dividends and you should expect that to remain a component of our capital return strategy. However, as we have shown this year, we will remain opportunistic with our share repurchase program and will likely include repurchases as a portion of the longer term capital management strategy.

Speaker Change: As we have previously stated we will look to maintain an efficient balance sheet with conservative debt leverage.

Speaker Change: This puts our debt to trailing four quarter EBITDA at one two times and net debt to trailing four quarter EBITDA at just <unk> six times.

Speaker Change: As our current debt facility matures in July of 2026, meaning it becomes current on our balance sheet. In July of 2025, we began reviewing options for a new term loan and revolving credit facility.

Speaker Change: Our strong cash generation and significant balance sheet flexibility provides us with ample optionality to drive shareholder value through capital returns.

Speaker Change: We are raising our guidance for the full year 2024 as follows.

As we have previously stated we will look to maintain an efficient balance sheet with conservative debt leverage.

Total written premiums placed are expected to be between $3 7 billion and $3 eight 2 billion, representing 25% growth on the low end of the range and 29% growth on the high end of the range.

Speaker Change: Total revenues are expected to be between $295 million and $310 million, representing 13% organic growth at the low end of the range and 19% organic growth at the high end of the range.

Speaker Change: Adjusted EBITDA margin is expected to expand for the full year 2024.

Speaker Change: We are raising our guidance for the full year 2024 as follows.

Speaker Change: Thank you to our clients our carrier partners, our service team, our franchisees and everyone that you've set for delivering a fantastic third quarter with that let's open up the line for questions operator.

Total written premiums placed are expected to be between $3 7 billion and $3 eight 2 billion, representing 25% growth on the low end of the range and 29% growth on the high end of the range.

Speaker Change: And thank you.

A reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star. One again, please standby will compile the Q&A roster and we ask that you limit yourself to one question one follow up again, that's one question one follow up one.

Speaker Change: We are raising our guidance for the full year 2024 as follows.

Speaker Change: Total written premiums placed are expected to be between $3 7 billion and $3 eight 2 billion, representing 25% growth on the low end of the range and 29% growth on the high end of the range.

Speaker Change: Adjusted EBITDA margin is expected to expand for the full year 2024.

Speaker Change: One moment for our first question.

Speaker Change: Thank you to our clients our carrier partners, our service team, our franchisees and everyone. Like you said for delivering a fantastic third quarter with that let's open up the line for questions operator.

And our first question comes from Matt <unk> from citizens JMP. Your line is now open.

Speaker Change: Hey, Thanks, good afternoon.

Speaker Change: Thank you.

Speaker Change: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Adjusted EBITDA margin is expected to expand for the full year 2024.

Speaker Change: Mark Miller, you made you commented a little bit about that.

Matt <unk>: Product availability sounds like I think you said market stabilization if I heard you right could you just go into that a little bit more in particular.

Speaker Change: Please standby will compile the Q&A roster and we ask that you limit yourself to one question one follow up again, that's one question one follow up.

Matt <unk>: You guys have certain key geographies, where were your big Texas comes to mind, California of others that have had.

Speaker Change: Thank you.

Speaker Change: My first question.

Matt <unk>: Some of the tougher product availability challenges.

Speaker Change: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Matt <unk>: What what are you seeing in those jurisdictions.

Speaker Change: And our first question comes from Matt <unk> from citizens JMP. Your line is now open.

Speaker Change: Yes, Matt How're you doing.

Speaker Change: These standby will compile the Q&A roster and we ask that you limit yourself to one question one follow up again Thats one question one follow up.

Speaker Change: Doing great how are you.

Speaker Change: Hey, Thanks, good afternoon.

Speaker Change: Yes, overall like I said in my prepared comments.

Speaker Change: Mark Miller, you made you commented a little bit about.

Speaker Change: The auto product is starting to return.

Speaker Change: And product availability sounds like I think you said market stabilization if I heard your rights could you just go into that a little bit more in particular, just obviously you guys have certain key geographies where were your big Texas comes to mind, California, and some others that have had.

Speaker Change: One moment for our first question.

Speaker Change: Carriers are beginning to change their home products, which gives me a lot of optimism that.

Speaker Change: And our first question comes from Matt <unk> from citizens JMP. Your line is now open.

Speaker Change: That product will start to come into some of the more challenged markets like Texas, and when I say change their product I mean.

Depreciable roofs higher deductibles.

Speaker Change: Hey, Thanks, good afternoon.

Speaker Change: Some of the tougher product availability challenges.

Speaker Change: And we've talked to a lot of carriers I believe product will start to flow back into the market pretty quickly but.

Speaker Change: Mark Miller, you made a comment in a little bit about the.

Speaker Change: What what are you seeing in those jurisdictions.

Speaker Change: Product availability sounds like I think.

Speaker Change: But I don't know exactly when.

Mark Miller: Some market stabilization if I heard you right did you just go into that a little bit more in particular.

Speaker Change: Yes, Matt How're you doing.

Speaker Change: And I think we still deliver a huge benefit to our to our clients to find the product and to our <unk>.

Matt: Doing great how are you.

Speaker Change: Yes, overall like I said in my prepared comments.

Speaker Change: Obviously, you guys have certain key geographies, where were your big Texas comes to mind, California, and some others that have had.

Speaker Change: Carriers delivering them the right clients, but we still have product in every market. It's just thinner.

Speaker Change: The auto product is starting to return.

Speaker Change: Carriers are beginning to change their home products, which gives me a lot of optimism that.

Speaker Change: Some of the tougher product availability challenges.

Speaker Change: Okay. That's helpful.

Speaker Change: What what are you seeing in those jurisdictions.

Speaker Change: And then if I could just a numbers question quickly.

Speaker Change: That product will start to come into some of the more challenged markets like Texas, and when I say changed their product I mean, depreciable roofs higher deductibles.

Speaker Change: Yes, Matt How're you doing.

Speaker Change: G&A expenses.

Speaker Change: Doing great how are you.

It's a pretty good step down in the quarter from about 1 million and a half lower than kind of where it ran the first couple of quarters of the year. There are anything in particular going on.

Yes, overall like I said in my prepared comments.

And we've talked a lot of carriers I believe product will start to flow back into the market pretty quickly but.

Speaker Change: The auto product is starting to return.

Carriers are beginning to change their home products, which gives me a lot of optimism that.

Speaker Change: That number that we should carryforward or not carry forward.

Speaker Change: But I don't know exactly when.

Speaker Change: And I think we still deliver a huge benefit to our to our clients to find the product into our <unk>.

Speaker Change: No no one offs or anything specific to call out we've been really disciplined with what we're going to invest and want to make sure. We're making all the investments we need to to secure future growth but.

Speaker Change: That product will start to come into some of the more challenged markets like Texas, and when I say changed their product I mean, depreciable roofs higher deductibles.

Speaker Change: Carriers delivering them the right clients, but we still have product in every market is just thinner.

Speaker Change: And we've talked a lot of carriers I believe product will start to flow back into the market pretty quickly.

Speaker Change: It'd be really cautious and make sure. If there is something that can wait to the future we're going to wait till the future.

Speaker Change: Okay. That's helpful.

Speaker Change: And then if I could just a numbers question quickly.

Speaker Change: But I don't know exactly when.

Speaker Change: Okay, great. Thanks for the color I appreciate it.

G&A expenses.

Speaker Change: And I think we still deliver a huge benefit to our to our.

Speaker Change: Thanks, Matt.

Speaker Change: Took a pretty good step down in the quarter from about 1 million and a half lower than kind of where it ran in the first couple of quarters of the year. There are anything in particular going on.

Speaker Change: Since define the product into our <unk>.

Speaker Change: Carriers delivering them the right clients, but we still have product in every market. It's just thinner.

Speaker Change: That number that we should carryforward or not carry forward.

Speaker Change: Okay. That's helpful.

No no one offs or anything specific to call out we've been really disciplined with what we're going to invest in and want to make sure. We're making all the investments we need to to secure future growth but.

Speaker Change: And then if I could just a numbers question quickly.

Speaker Change: And our next question comes from Brian Meredith from you.

Speaker Change: G&A expenses.

Speaker Change: Your line is now open.

Speaker Change: Thank you a couple of them here for you.

Speaker Change: It'd be really cautious and make sure. If there is something that can wait to the future we're going to wait till the future.

Brian Meredith: The first one.

Brian Meredith: Going back to Matt's question, a little bit maybe you could talk a little bit about how competitive your product is and some of those areas like Texas and California.

Speaker Change: That number that we should carryforward or not carry forward.

Speaker Change: Okay, great. Thanks for the color I appreciate it.

Speaker Change: Thanks, Matt.

Brian Meredith: Particularly relative to captives are you seeing any rate go up at some of the captives and while you've got product like I said it is a competitive right now.

Speaker Change: It'd be really cautious and make sure. If there is something that can wait to the future we're going to wait till the future.

Hi, Brian This is Mark Miller, Yes, I think it's competitive most most places I mean, it's not as competitive as it used to be against some of the captives, but we are seeing the captive starting to raise their prices.

Speaker Change: Okay, great. Thanks for the color I appreciate it.

Speaker Change: And our next question comes from Brian Meredith from you.

Speaker Change: Thanks, Matt.

Speaker Change: Your line is now open.

Speaker Change: Thank you a couple of them here for you.

Brian Meredith: The first one.

Brian Meredith: Going back to Matt's question, a little bit maybe you could talk a little bit about how competitive your product is and some of those areas like Texas and California.

Brian Meredith: Our carriers are on the front end of price increases.

Brian Meredith: We're starting to see those prices stabilize.

Brian Meredith: And so it's all starting to balance out and I still think we've got we've got decent lead flow coming and despite a challenging housing market and we've got decent product to sell.

Speaker Change: And our next question comes from Brian Meredith from you.

Brian Meredith: Particularly relative to captives are you seeing any rate go up at some of the captives and while you've got product like I said it is a competitive right now.

Speaker Change: Your line is now open.

Speaker Change: Thank you a couple of them here for you.

Speaker Change: The first one.

Speaker Change: Got you, but you still I understand got some carriers that are on your platform that actually pulling back to the equity that's correct right.

Speaker Change: Going back to Matt's question, a little bit maybe you could talk a little bit about how competitive your product is and some of those areas like Texas and California.

Brian Meredith: Hi, Brian This is Mark Miller, Yes, I think it's competitive most most places I mean, it's not as competitive as it used to be against some of the captives, but we are seeing the captive starting to raise their prices.

Brian Meredith: Yes.

Speaker Change: Yes, I won't I won't name names, but there I mean, you're obviously aware of what the market situation is out there with some carriers where they temporarily.

Speaker Change: Particularly relative to captives are you seeing any rate go up at some of the captives and while you've got products like I said it is a competitive right now.

Brian Meredith: Our carriers are on the front end of price increases.

Brian Meredith: Closed down markets in there.

Brian Meredith: Theyre, great carrier partners for Us and we will back their play and they will inevitably returned to the market.

Brian Meredith: We're starting to see those prices stabilize.

Brian Meredith: And so it's all starting to balance out and I still think we've got we've got decent lead flow coming in despite challenging housing market and we've got decent product to sell.

Speaker Change: Got you and then the second question I'm just curious.

Speaker Change: Good outlook it sounds like with respect to client retention do you think we've hit that bottom at this point at 84%.

Brian Meredith: Got you, but you still I understand got some carriers that are on your platform that actually pulling back to the equity that's correct right.

Speaker Change: Our carriers are on the front end of price increases.

Speaker Change: And kind of gradually start to work way up from here or is there potential for it to tick down again.

Speaker Change: We're starting to see those prices stabilize.

Brian Meredith: Yes.

Speaker Change: Yes, I won't I won't name names, but they are I mean, youre, obviously aware of what the market situation is out there with some carriers where they temporarily.

Brian Meredith: And so it's all starting to balance out and I still think we've got we've got decent lead flow coming in despite challenging housing market and we've got decent product to sell.

Speaker Change: Yes, I mean.

Speaker Change: This is mark Jones, we've talked about a lot that our client retention decline is really largely based on pricing action and so you could see in the third quarter, we had less price increase in the book just the difference between the past growth and the premium growth rates you can see the decline in the pricing, which naturally results in.

Closed down markets there.

Theyre, great carrier partners for Us and we will back their play and they will inevitably returned to the market.

Brian Meredith: Got you, but you still I understand got some carriers that are on your platform that actually pulling back because of that because thats correct right.

Speaker Change: Gotcha, and then secondly, I was just curious.

Brian Meredith: Yes.

Speaker Change: Yes, I won't I won't name names, but there I mean, you're obviously aware of what the market situation is out there with some carriers where they temporarily.

Speaker Change: Good outlook it sounds like with respect to client retention do you think we've hit that bottom at this point at 84%.

Speaker Change: That our client retention so assuming that you continue to get stable pricing, we would expect client retention to remain here and then eventually tick back up.

Brian Meredith: Closed down markets in there.

Speaker Change: And kind of gradually start to work way up from here or is there potential for it to tick down again.

Brian Meredith: Theyre, great carrier partners for Us and we will back their play and they will inevitably returned to the market.

Speaker Change: Through 2025, Thats, probably a good assumption there could be puts and takes in any given quarter.

Yes, I mean.

Speaker Change: This is mark Johnson, we've talked about a lot that our client retention decline is really largely based on pricing action and so you could see in the third quarter, we had less price increase in the book just the difference between the past growth and the premium growth rates you can see the decline in the pricing, which naturally results in.

Speaker Change: Helpful. Thank you.

Brian Meredith: Got you and then the second question I'm just curious.

Speaker Change: Thanks, Brian and thank you and one moment our next question.

Speaker Change: Good outlook it sounds like with respect to client retention do you think we've hit that bottom at this point at 84%.

Speaker Change: Okay.

Speaker Change: And our next question comes from Tom <unk> from K BW. Your line is now open.

Speaker Change: And kind of gradually start to work way up from here or is there potential for it to tick down again.

Speaker Change: Hey, guys. Thanks for taking our questions.

Speaker Change: Yes, I mean.

Speaker Change: Better client retention, so assuming that you continue to get stable pricing, we would expect client retention to remain here and then eventually tick back up.

Tom <unk>: Can you talk about some of the new referral partner Activations are you diversifying away from.

Sources and in and around the home sale and along the same lines can you talk about how your corporate class is performing.

Speaker Change: Through 2025, that's probably a good assumption there could be puts and takes in any given quarter.

Helpful. Thank you.

Tom <unk>: With that key referral source of home sale volumes remaining somewhat challenged.

Speaker Change: Thanks, Brian and thank you and one moment our next question.

Speaker Change: Better client retention, so assuming that you continue to get stable pricing, we would expect client retention to remain here and then eventually tick back up.

Speaker Change: Yes, I mean.

Speaker Change: Okay.

Speaker Change: That will be our primary go to market strategy continuing to focus on the home closing transactions now of course once you get that first.

Speaker Change: And our next question comes from Tom We make joint from K BW. Your line is now open.

Speaker Change: Through 2025, Thats, probably a good assumption there could be puts and takes in any given quarter.

Speaker Change: Hey, guys. Thanks for taking our questions.

<unk> built up with our referral partner they continue to send new leads.

Speaker Change: Helpful. Thank you.

Speaker Change: Can you talk about some of the new referral partner Activations are you diversifying away from.

Speaker Change: Thanks, Brian and thank you and one moment sign next question.

Speaker Change: If leads go down we go back out and we get more referral partners. So thats, how we keep the lead volume up and it kind of spring loads us for when market activity improves that we've got those referral partners built up.

Speaker Change: Sources and in and around the home sale and along the same lines can you talk about how your corporate class is performing.

Speaker Change: Okay.

Speaker Change: And our next question comes from Tom <unk> from K BW. Your line is now open.

With that key referral source of home sale volumes remaining somewhat challenged.

Speaker Change: I think something that's important to remember is we just still represents such a small percentage of the market share nationally.

Speaker Change: Hey, guys. Thanks for taking our questions.

Speaker Change: Yes, I mean.

Speaker Change: Can you talk about some of the new referral partner Activations are you diversifying away from.

Speaker Change: That will be our primary go to market strategy continuing to focus on the home closing transactions now of course once you get that first.

Speaker Change: Just over 5% in new home closings, so a significant amount of runway still to go in almost every single geography, and even in Texas, We still have plenty of room to grow we just want to match our agent footprint with really the carrier demand is and I think your second part of the question was just about how are the new agents performing.

Speaker Change: Sources and in and around the home sale and along the same lines can you talk about how your corporate class is performing.

Speaker Change: We built up with our referral partner they continue to send new leads.

Speaker Change: With that key referral source of home sale volumes remaining somewhat challenged.

Speaker Change: If leads go down we go back out and we get more referral partners. So thats, how we keep the lead volume up and it kind of spring loads us for when market activity improves.

Speaker Change: Yes, I mean.

Speaker Change: That will be our primary go to market strategy continuing to focus on the home closing transactions now of course once you get that first.

Speaker Change: It's too early to tell I mean that class just started they come with the summer graduation for college students.

Speaker Change: Got those federal partners built up.

Speaker Change: So its June to September but early early indications are very positive compared to prior classes and I think it's the highest quality class we've ever recruited from a 10 year adjusted perspective. The productivity is just as high if not higher than the previous year's class, which was also a very good class and honestly. These new agents don't know anything different.

Speaker Change: I think something that's important to remember is we just still represents such a small percentage of the market share nationally.

Speaker Change: <unk> built up with referral partner they continue to send you leads.

Speaker Change: Just over 5% in new home closings, so a significant amount of runway still to go in almost every single geography, and even in Texas, We still have plenty of room to grow we just want to match our agent footprint with what really the carrier demand is and I think your second part of the question was just about how are the new agents performing.

Speaker Change: As in data came out today, it's another bad months for housing and yet we still delivered more leads than we have in the previous months. So our agents are doing a good job with our proprietary technology being able to find the right lead sources.

Speaker Change: I think something Thats important to remember is we just still represent such a small percentage of the market share nationally.

Speaker Change: It's too early to tell I mean that class just started they come with the summer graduation for college students.

Speaker Change: Got it thanks for that and then separately.

Speaker Change: Did the hurricanes have any notable impact on revenues in the quarter either looking at the third quarter events and then as you think about Milton perhaps the impact on the fourth quarter.

Speaker Change: It's too early to tell I mean that class just started they come with the summer graduation for college students.

Yes, so typically what happens when a hurricane and has come in as carriers will put a moratorium on new business and the path of that hurricane and so usually what happens is youll see a slowdown in production in that region for a week, maybe two weeks and then that builds back up and comes through so with the timing of ethylene right at the end of the quarter you did.

Speaker Change: Data came out today, it's another bad month for housing and yet we still delivered more leads than we have in the previous months. So our agents are doing a good job with our proprietary technology being able to find the right lead sources.

Speaker Change: Got it thanks for that and then <unk>.

Speaker Change: Get to see any of that came in after the hurricane passed through so some of that got pushed in the fourth quarter.

Speaker Change: <unk> did.

Speaker Change: With Milton it's really just the timing in between where it was in the month. So it doesn't typically actually ended up impacting new business in the long term, but can cause it to shift from quarter to quarter. If it happens right at the end of the quarter.

Speaker Change: Yes, so typically what happens when a hurricane is coming in as carriers will put a moratorium on new business and the path of that hurricane and so usually what happens is youll see a slowdown in production in that region for a week, maybe two weeks and then that builds back up and comes through so with the timing of ethylene right at the end of the quarter you Didnt.

Speaker Change: Got it thanks for that and then separately.

Speaker Change: Okay and is there any way to quantify how much that helene impact could have been just given that it came in sort of Alaska, a week or two there.

Speaker Change: No, but if you just think about where our agents are I think Florida is our second largest state so without giving you any real numbers just kind of a general indication that that's where we have a lot of agents.

Speaker Change: Yes, so typically what happens when a hurricane and has come in as carriers will put a moratorium on new business and the path of that hurricane and so usually what happens is you will see a slowdown in production in that region for a week, maybe two weeks and then that builds back up and comes through so with the timing of Aline right at the end of the quarter.

Speaker Change: Get to see any of that came in after the hurricane passed through so some of that got pushed in the fourth quarter.

Speaker Change: Thanks Seth.

Speaker Change: And thank you and one moment fire next question.

Speaker Change: And our next question comes from Michael <unk> from BMO. Your line is now open.

Speaker Change: Okay.

Speaker Change: Okay and are you is there any way to quantify how much that helene impact could have been just given that it came in sort of the last week or two there.

Speaker Change: Get to see any of that came in after the hurricane passed through so some of that got pushed in the fourth quarter.

Speaker Change: Hey, thanks good.

Speaker Change: Late afternoon.

Speaker Change: But if you just think about where our agents are I think Florida is our second largest state so without giving you any real numbers just kind of a general indication that that's where we have a lot of agents.

Speaker Change: Thanks couple of questions on <unk>.

Speaker Change: On the revenue guidance, I guess revenue and premium guidance, but I guess first question.

Speaker Change: High versus low end for the year.

Speaker Change: Okay and is there any way to quantify how much that helene impact could have been just given that it came in sort of Alaska, a week or two there.

Dan Farrell: Thanks, Dan Thank you.

Speaker Change: On revenues I guess, it surprised it's kind of still a wide range, even though we're pretty late in the year in a month and I got any.

Dan Farrell: And thank you.

Dan Farrell: One moment for our next question.

But if you just think about where our agents are I think Florida is our second largest state so without giving you any real numbers just kind of a general indication, that's where we have a lot of agents.

Speaker Change: And our next question comes from Michael <unk> from BMO. Your line is now open.

Speaker Change: Any help in terms of variables, we should be thinking about to get it.

Speaker Change: Towards the higher low end.

Speaker Change: Hey, Thanks, Good luck.

Speaker Change: Late afternoon.

Speaker Change: Yes, I mean, we still are operating in a relatively volatile environment from product availability perspective carriers are coming in and out of markets and from our contingencies perspective, which can have a pretty big impact on the total revenue number we still don't have enough information to really make a call on that until probably.

Speaker Change: Makes sense. Thank you.

Speaker Change: Thanks couple of questions on.

Speaker Change: And thank you and one moment our next question.

Speaker Change: And the revenue guidance, I guess revenue and premium guidance, but I guess first question.

Speaker Change: And our next question comes from Michael <unk> from BMO. Your line is now open.

Speaker Change: The high versus low end for the year.

Speaker Change: On revenues I guess, it surprised it's kind of a wide range, even though we're pretty late in the year in a month and any any help in terms of variables, we should be thinking about to get us.

Speaker Change: Hey, thanks good.

Speaker Change: Late November when you get enough loss data.

Speaker Change: Late afternoon. Thanks.

Speaker Change: I guess couple of questions on.

So that can cause a pretty dramatic change in the revenue number that we feel like based on our core loss ratio performance that we've seen some improvements in the contingency expectation.

Speaker Change: On the revenue guidance, I guess revenue and <unk> guidance, but I guess first question.

Speaker Change: Towards the higher low end.

The high versus low end for the year.

You can see how that would impact the bottom end of the revenue guidance from a premium perspective now the franchise side of the business is performing very very well and just remember that that doesn't really impact revenue in year, one it impacts the premium immediately because thats a 100%, whereas the revenue is 20 cents on the dollar and so if you look at the agencies that we've long.

Dan Farrell: Towards the higher low end.

Speaker Change: Late November when you get enough loss data.

Yes, I mean, we still are operating in a relatively volatile environment from product availability perspective carriers are coming in and out of markets and from our contingencies perspective, which can have a pretty big impact on the total revenue number we still don't have enough information to really make a call on that until probably late <unk>.

Speaker Change: So far this year are less than one year franchise productivity is up 133% year over year. So they are really doing a fantastic job and that impacts premium more than it impacts revenue.

Speaker Change: So that can cause a pretty dramatic change in the revenue number that we feel like based on our core loss ratio performance that we've seen some improvements in the contingency expectation.

Speaker Change: Okay.

Speaker Change: You can see how that would impact the bottom end of the revenue guidance from a premium perspective now the franchise side of the business is performing very very well and just remember that that doesn't really impact revenue in year, one it impacts the premium immediately because thats a 100%, whereas the revenue is 20 cents on the dollar and so if you look at the agencies that we've long.

Thats helpful and makes sense on the contingents.

Speaker Change: Okay, So sticking Q Rev.

Speaker Change: November when you get enough loss data so that can cause a pretty dramatic change in the revenue number that we feel like based on our core loss ratio performance that we've seen some improvements in the contingency expectation.

Speaker Change: And the premium guidance. So if I look at the four key guide and inclusive.

Speaker Change: That's a pretty material improvement in the ratio of revenues divided by premiums.

Speaker Change: I don't want to put answers in your mouth, but.

Speaker Change: It gets because you're growing corporate so much more than that of franchises, but I'm trying to understand what's driving that and is that a permanent step up in that ratio.

Speaker Change: Okay.

Speaker Change: So really I would point you to some of the contingency commentary, which that doesn't impact the premium number and that can move the revenue number pretty materially and those are largely ended up being binary so if youre right on the edge of our loss ratio.

Speaker Change: Thats helpful and makes sense on the contingents.

Speaker Change: Okay, So sticking Q Rev.

Speaker Change: And the premium guidance. So if I look at the four key guide and inclusive.

Speaker Change: That's a pretty material improvement in the ratio of revenues divided by premiums.

Speaker Change: Qualifier for a contingency you could be getting millions of dollars or you could be getting zero dollars, but that doesn't really impact the premium numbers at all so that can change.

I don't want to put answers in your mouth, but.

Speaker Change: Okay.

Thats helpful and makes sense on the contingents.

Speaker Change: It gets because you're growing corporate so much more than that of franchises, but I'm trying to understand what's driving that and is that a permanent step up in that ratio.

Speaker Change: Okay, So sticking Q revenue and the premium guidance so high.

Speaker Change: Change your ratio of revenue to premium in any given quarter.

Speaker Change: Okay, Okay got it.

Speaker Change: Look at the four key guide and inclusive.

Speaker Change: Lastly on.

Speaker Change: That's a pretty material improvement in the ratio of revenues divided by premiums.

Speaker Change: Franchise growth and also corporate agent growth so.

Speaker Change: I don't want to put answers in your in your mouth, but.

Speaker Change: Clearly a great corporate.

Speaker Change: Hiring.

It gets because you're growing corporate so much more than that.

Speaker Change: Number much much better than I expected I guess.

Speaker Change: And our franchises, but I'm trying to understand what's driving that and is it a permanent step up in that ratio.

Speaker Change: Don't know how much you can say, but.

Speaker Change: Would you say kind of this is the new algorithm and we should expect that if things work out with this class we should expect.

Speaker Change: Change your ratio of revenue to premium in any given quarter.

Speaker Change: In a similar rate of growth.

Speaker Change: Okay, Okay got it and.

Speaker Change: Summer next year or for the full year next year.

Speaker Change: Lastly on.

Speaker Change: Franchise growth and also corporate agent growth so <unk>.

Speaker Change: I guess I guess summer right, you're just still doing some some calling in some some corrective actions.

Speaker Change: Clearly a great corporate.

Speaker Change: But that doesn't really impact the premium numbers at all so that can.

Speaker Change: Earlier this year.

Speaker Change: Hiring.

Speaker Change: And I guess also can you remind us.

Speaker Change: Number much much better than I expected I guess.

Speaker Change: Change your ratio of revenue to premium in any given quarter.

Speaker Change: While early about kind of how to think about the gratulation right I think you've talked about historically of corporates potentially graduating buying into the franchise model.

Speaker Change: Don't know how much you can say, but.

Speaker Change: Okay, Okay got it and.

Speaker Change: Would you say kind of this is the new algorithm and we should expect if things work out with this class we should expect.

Lastly on.

Speaker Change: Franchise growth and also corporate agent growth so.

Speaker Change: Yeah, I'll take that first part of the question so.

Speaker Change: Clearly our.

Speaker Change #100: In a similar rate of growth.

Speaker Change: You got it right the majority of our of our corporate agent hires have happened June July August a little bit in September and then we start on the next year's recruiting class and where we're going to more campuses more diversification is the thought there filling up.

Speaker Change: A great corporate.

Speaker Change: Hiring.

Speaker Change #100: Summer next year or for the full year next year.

Speaker Change: Number much much better than I expected I guess.

I guess I guess summer right, you're just still doing some some calling in some some corrective actions.

I don't know how much you can say, but.

Speaker Change #101: Would you say kind of this is the new algorithm and we should expect if things work out with this class we should expect.

Speaker Change #100: Earlier this year.

Speaker Change #100: And I guess also can you remind us.

Speaker Change: The Phoenix office.

Speaker Change #100: While early about kind of how to think about the gratulation right I think you've talked about it historically of corporates potentially graduating buying into the franchise model.

Speaker Change: Big goal there so we have more physical capacity than what we had in the prior year with the opening of the new Phoenix Office, we saw.

Speaker Change: A similar rate of growth.

Speaker Change: Summer next year or for the full year next year.

Speaker Change: I guess I guess somewhere right.

Speaker Change: Feel really really good about this this class we hired we will see.

Yeah, I'll take that first part of the question so.

Speaker Change: You were just still doing some some calling in some some corrective actions.

Speaker Change: We got different economics for them to lock them in I think they'll stay but.

Speaker Change #103: You got it right the majority of our of our corporate agent hires have happened June July August a little bit in September and then we start on the next year's recruiting class and where we're going to more campuses more diversification is the thought there filling up.

Speaker Change: Earlier this year.

Speaker Change #102: And I guess also can you remind us similarly about kind of how to think about the gratulation right I think you've talked about historically of corporates potentially graduating buying into the franchise model.

Speaker Change: Stay with better than they have in the past, but what we'll see is likely a decline in the corporate agent count from Knights now to the end of the year as some workout some down some lead the company and then the plan is to.

Speaker Change #104: Yeah I'll take that.

Speaker Change #103: The Phoenix office.

First part of the question so.

Speaker Change: Focus on agent recruiting for next year Summer class and we will just see how recruiting goes I don't want to commit to any numbers yet but.

Speaker Change #103: Big goal there so we have more physical capacity than what we had in the prior year with the opening of the new Phoenix office.

Speaker Change #105: You got it right the majority of our of our corporate agent hires happen June July August a little bit in September and then we start on the next year's recruiting class and where we're going to more campuses more diversification is the thought there filling up.

Speaker Change: I feel good about what we're doing and the quality of the agents that were bringing in is unbelievable.

Speaker Change #103: Feel really really good about this this class we hired we will see.

Speaker Change: Unbelievable right now.

Speaker Change #103: We've got different economics for them to lock them in I think they'll stay but we.

On the franchise side, yes, sorry go.

Speaker Change: Alright.

Speaker Change #100: The Phoenix office.

Speaker Change: And I'm going to say on the franchise side, if you were asking about that.

Speaker Change #103: Stay better than they have in the past, but what we'll see is likely a decline in the corporate agent count from Knights now to the end of the year as some workout some down some lead the company and then the plan is to.

Speaker Change #100: Big goal there so we have more physical capacity than what we had in the prior year with the opening of the new Phoenix office.

Speaker Change: You noticed that we eliminated or cold is we used to call it.

Speaker Change: A much smaller number of franchises from from the system this quarter.

Speaker Change #100: We feel really really good about this this class we hired we will see.

Speaker Change: And we've we added about 30, but they were very high quality franchises that we added so I feel good about what we're doing on the franchise side that we've gotten to quality over quantity now it's time to crank the quality up and we've really invested in the franchise development team. So just adding more franchises will obviously increase the number of agency producers but.

Speaker Change #103: Focus on agent recruiting for next year Summer class and we will just see how recruiting goes I don't want to commit to any numbers yet but.

Speaker Change #100: We got different economics for them to lock them in I think they'll stay but.

Speaker Change #100: Stay better than they have in the past, but what we'll see is likely a decline in the corporate agent count from now to the end of the year as some workout. Some don't some lead the company and then the plan is to.

Speaker Change #103: I feel good about what we're doing and the quality of the agents that were bringing in is unbelievable.

Speaker Change #103: Unbelievable right now.

Speaker Change #106: On the franchise side, yes, sorry.

Speaker Change #103: Got it.

Speaker Change #103: And I'm going to say on the franchise side, if you were asking about that.

Speaker Change: The ASP program that we mentioned is doing extremely well and because of all the coaching and the health of the franchise network, they're starting to add their own producers. So we talked about 500 producers being added.

Speaker Change #103: Focus on agent recruiting for next year Summer class and we will just see how recruiting goes I don't want to commit to any numbers yet but.

You noticed that we eliminated or cold is we used to call it.

Speaker Change #103: As a much smaller number of franchises from from the system this quarter.

Speaker Change #103: I feel good about what we're doing and the quality of the agents that were bringing in is.

Speaker Change #103: And we've we added about 30, but they were very high quality franchises that we added so I feel good about what we're doing on the franchise side that we've gotten to quality over quantity now it's time to crank the quality up and we've really invested in the franchise development team. So just adding more franchises will obviously increase the number of agency producers but.

Speaker Change #103: Well right now.

Speaker Change: And the franchise community half of which came through the ASP program that whole thing is working very well right now.

Speaker Change #103: On the franchise side, yes, sorry go ahead.

Speaker Change #107: And I'm going to say on the franchise side, if you were asking about that.

Speaker Change: Yeah.

Speaker Change: And then I think one key number that Mark Jones Junior just mentioned was first year franchise productivity up 133% I just wanted to reinforce that number that is that is really really that really speaks to the quality of the franchises that we're adding now.

Speaker Change #103: You noticed that we eliminated or cold is we used to call it.

Speaker Change #103: A much smaller number of franchises from from the system. This quarter and we've we added about 30, but they were very high quality franchises that we added so I feel good about what we're doing on the franchise side that we've gotten to quality over quantity now it's time to crank the quality up and we've really invested in the franchise development team. So just adding more fran.

Speaker Change #103: The ASP program that we mentioned is doing extremely well and because of all the coaching and the health of the franchise network, they're starting to add their own producers. So we talked about 500 producers being added.

Speaker Change: Okay, Alright, that's helpful and just one quick follow up so when we look at the corporate sales agents growth <unk> sequentially from Q O Q.

And the franchise community half of which came through the ASP program that whole thing is working very well right now.

Speaker Change #103: <unk> will obviously increase the number of agency producers, but the ASP program that we mentioned is doing extremely well and because of all the coaching and the health of the franchise network, they're starting to add their own producers. So we talked about 500 producers being added.

Speaker Change: Is there something one time in nature, there that we should be keeping in mind as we think about <unk> 25 or.

Speaker Change #103: Yeah.

Speaker Change #108: And then I think one key number that Mark Jones Junior just mentioned was first year franchise productivity up 133% I just wanted to reinforce that number that is that is really really that really speaks to the quality of the franchises that we're adding now.

Speaker Change: Was this is this.

Speaker Change: This was a great recruiting year.

Speaker Change: The base.

Speaker Change: Base case.

Speaker Change: During the same processes.

Speaker Change #103: And the franchise community half of which came through the ASP program that whole thing is working very well right now.

Speaker Change: Next year, if all works out.

Speaker Change: Yes, I would say nothing one time I think the amount of growth you saw <unk>, you will likely see somewhere around that similar size next year, it's about developing the right amount of managers to absorb all of those people we've talked a lot on our past about absorptive capacity, we don't want to overload our manager.

Speaker Change #109: Okay, Alright, that's helpful and just one quick follow up so when we look at the corporate sales agents growth three Q sequentially from <unk>.

Speaker Change #110: And then I think one key number that Mark Jones Junior just mentioned was first year franchise productivity up 133% I just wanted to reinforce that number that is that is really really that really speaks to the quality of the franchises that we're adding now.

Speaker Change #109: Is there something one time in nature, there that we should be keeping in mind as we think about <unk> 25 or.

Speaker Change: And our management bench and we want to make sure. Our agents are as successful as possible. So we want to keep growing the corporate team to provide new new leadership opportunities and also launch franchises across the country. So we got to continue to invest there what youre seeing is what we talked about last year with building up the capability of the talent acquisition team and it would take a.

Speaker Change #111: Okay, Alright, that's helpful and just one quick follow up so when we look at the corporate sales agents growth.

Speaker Change #109: Was this is this was a great recruiting here.

Speaker Change #109: The base.

Speaker Change #111: Thanks Casey.

Speaker Change #109: During the same processes.

Speaker Change #103: <unk> sequentially from <unk>.

Speaker Change #111: Next year, if all works out.

Speaker Change #103: Is there something one time in nature, there that we see.

Speaker Change #114: Yes, I would say nothing one time I think the amount of growth you saw <unk>, you will likely see somewhere around that similar size next year, it's about developing the right amount of managers to absorb all those people we've talked a lot in our past about absorptive capacity, we don't want to overload our manager.

Speaker Change #103: In mind, as we think about <unk> 25 or.

Speaker Change: While to recruit also college campuses and they got a graduate and come in Youre seeing that first class of really having a really world class.

Speaker Change #103: Was this is.

Speaker Change #103: This was a great recruiting here.

Speaker Change #103: The base.

Speaker Change #113: Thanks Casey.

Speaker Change #113: During the same processes.

Speaker Change: Development team hotel acquisition team to bring a new candidate so that capability will exist next year.

Speaker Change #113: Next year, if all works out.

Speaker Change #115: Yes, I would say nothing one time I think the amount of growth you saw <unk>, you will likely see somewhere around that similar size next year, it's about developing the right amount of managers to absorb all of those people we've talked a lot in our past about absorptive capacity, we don't want to overload our manager.

Speaker Change #114: Our management bench and we want to make sure our agents are as successful as possible. So we want to keep growing the corporate team to provide new new leadership opportunities and also launch franchises across the country. So we got to continue to invest there what youre seeing is what we talked about last year with building up the capability of the talent acquisition team and it would take a.

Speaker Change: No.

Speaker Change: Okay, and maybe I'll just.

Speaker Change: If you don't mind.

Speaker Change: One more follow up in terms of the pace.

Speaker Change: Of growth, which is April growth have been.

Speaker Change: And much better than expected with that.

Have any of it clearly hasn't had any negative impact in the near term on on margins, It's clearly hasnt.

Speaker Change #109: And our management bench and we want to make sure. Our agents are successful as possible. So we want to keep growing the corporate team to provide new new leadership opportunities and also launch franchises across the country. So we got to continue to invest there what youre seeing is what we talked about last year with building up the capability of the talent acquisition team and it would take a.

Speaker Change #114: While to recruit also college campuses and they got a graduate and come in Youre seeing net first class of really having a really world class.

Speaker Change: This quarter.

Speaker Change: They've done a good job getting productive very quickly, which makes them pretty accretive to the P&L you will see some increased compensation and benefits expense in the fourth quarter just related to having those agents on the books for the full quarter because obviously they didn't all start on July one they started throughout the quarter. So youll see a little bit of that but they should also be producing.

Speaker Change #114: Development team talent acquisition team to bring a new candidate so that capability will exist next year.

Speaker Change #114: No.

Speaker Change #116: Okay, and maybe I'll just.

If you don't mind.

Speaker Change #111: While to recruit also college campuses and they got a graduate and come in Youre seeing net first class of really having a really world class.

Speaker Change #117: One more follow up in terms of the pace of growth, which is April growth.

Speaker Change: Enough to get pretty close to offsetting their costs.

Speaker Change #118: Much better than expected will that.

Speaker Change #114: Development team hotel acquisition team to bring a new candidate so that capability will exist next year.

Speaker Change #118: Have any of it clearly hasn't had any negative impact in the near term on margins it clearly hasn't.

Speaker Change: Thank you.

Speaker Change: And then in Q and one moment for our next question.

Speaker Change #114: Yes.

Okay, and maybe I'll just.

Speaker Change #118: This quarter.

Speaker Change: And our next question comes from Mark Hughes from <unk> Securities. Your line is now open.

Speaker Change #123: They've done a good job getting productive very quickly, which makes them pretty accretive to the P&L. I mean, you will see some increased compensation and benefits expense in the fourth quarter just related to having those agents on the books for the full quarter because obviously they didn't all start on July one they started throughout the quarter. So youll see a little bit of that but they should also be producing.

Speaker Change #119: If you don't mind.

Speaker Change #119: One more follow up in terms of the pace of.

Mark Hughes: Yes. Thank you. Good afternoon, I think you might have touched on this but the 35 basis points guidance for contingent this year that would assume a pretty nice step up in absolute dollars in contingent commissions is that.

Speaker Change #121: Of growth, which is agent growth.

Speaker Change #119: And much better than expected with that.

Speaker Change #122: Have any it clearly hasn't had any negative impact in the near term on margins it clearly hasn't.

Speaker Change #122: This quarter.

Speaker Change #118: After get pretty close to offsetting their costs.

Speaker Change #127: They've done a good job getting productive very quickly, which makes them pretty accretive to the P&L you will see some increased compensation and benefits expense in the fourth quarter just related to having those agents on the books for the full quarter because obviously they didn't all start on July one they started throughout the quarter. So youll see a little bit of that but they should also be producing.

Mark Hughes: It sounds like you've got good visibility for that.

Speaker Change #123: Thank you.

Mark Hughes: Yes.

Speaker Change #125: And thank you and one moment for our next question.

Speaker Change: We talked about in our prepared remarks is that's been our expectation all year. Thus far was 35 basis points of total written premiums contingent for the full year at this point given the way our core loss ratios have been with some of our biggest underwriters. We think that there is some upside to that.

Speaker Change #126: And our next question comes from Mark Hughes from <unk> Securities. Your line is now open.

Mark Hughes: Yes. Thank you. Good afternoon, I think you might have touched on this but the 35 basis point guidance for contingent this year.

Speaker Change #116: Enough to get pretty close to offsetting their costs.

Speaker Change: It remains to be seen exactly what that is and like I mentioned that wont crystallize until the fourth quarter. So there's still some uncertainty there, but I think the way that our book has performed and what we've been able to do in terms of driving carrier profitability should result in a higher contingency outlook for this year and most likely next year as well.

Speaker Change #128: Thank you.

Speaker Change #128: And then in Q and one moment for our next question.

Mark Hughes: It assumes a pretty nice step up in absolute dollars in contingent commissions is that.

And our next question comes from Mark Hughes from <unk> Securities. Your line is now open.

Mark Hughes: Yeah, It sounds like you've got good visibility for that.

Mark Hughes: Yes.

Mark Hughes: Yes. Thank you. Good afternoon, I think you might have touched on this but the 35 basis point guidance for contingent this year that would assume a pretty nice step up in absolute dollars and contingent commissions is that.

Speaker Change #130: We talked about in our prepared remarks is that's been our expectation all year. Thus far was 35 basis points of total written premium is contingent for the full year at this point given the way our core loss ratios have been with some of our biggest underwriters. We think that there is some upside to that.

Speaker Change: Very good and then the.

Speaker Change: Question on <unk>.

Speaker Change: Core revenue relative to written premium I think you addressed that in an earlier question is there anything on mix of say homeowners versus.

Speaker Change #131: Yeah, It sounds like you've got good visibility for that.

Speaker Change #130: It remains to be seen exactly what that is and like I mentioned that wont crystallized until the fourth quarter. So there's still some uncertainty there, but I think the way that our book has performed and what we've been able to do in terms of driving carrier profitability should result in a higher contingency outlook for this year and most likely next year as well.

Speaker Change #123: Yes.

We talked about in our prepared remarks is that's been our expectation all year. Thus far was 35 basis points of total written premiums contingent for the full year at this point given the way our core loss ratios have been with some of our biggest underwriters. We think that there is some upside to that.

Speaker Change: Auto.

Speaker Change: Or geography, that's influencing the pacing the written premium relative to the core revenue.

Speaker Change: No that's really a function of franchise performance franchise, driving accelerating new business production makes you a premium grow faster than your core revenue because you're only getting 20 on the dollar on the revenue side, but the premium is all gross so when.

Very good and then the.

Speaker Change #133: It remains to be seen exactly what that is and like I mentioned that wont crystallized until the fourth quarter. So there's still some uncertainty there, but I think the way that our book has performed and what we've been able to do in terms of driving carrier profitability should result in a higher contingency outlook for this year and most likely next year as well.

Speaker Change #132: Question on <unk>.

Speaker Change #133: Core revenue relative to written premium and I think you addressed that in an earlier question is there anything on mix of say homeowners versus.

Speaker Change: When <unk> got consistent year over year acceleration on the franchise side of the business those things can level out, but when you have a year like we had this year, where it really started in the fourth quarter of last year franchise picked up a lot of momentum and has had a phenomenal year. So far this year that drives that GAAP.

Speaker Change #132: Auto.

Speaker Change #136: Or geography, that's influencing the pacing the written premium relative to the core revenue.

Very good and then the.

Speaker Change #135: Question on <unk>.

Mark Hughes: Core revenue relative to written premium and I think you addressed that in an earlier question is there anything on mix of say homeowners versus.

Speaker Change: Thank you very much.

Speaker Change #137: No that's really a function of franchise performance franchise, driving accelerating new business production makes you a premium grow faster than your core revenue because you're only getting 20 cents on the dollar on the revenue side, but the premium is all gross so when.

Speaker Change: Yes.

Speaker Change: And thank you and one moment for our next question.

And our next question comes from Andrew Klingaman from TD Cowen. Your line is now open.

Speaker Change #130: Auto.

Speaker Change #130: Or geography, that's influencing the boosting the written premium relative to the core revenue.

Speaker Change #137: When <unk> got consistent year over year acceleration on the franchise side of the business those things can level out, but when you have a year like we had this year, where it really started in the fourth quarter of last year franchise picked up a lot of momentum and has had a phenomenal year. So far this year that drives that GAAP.

Speaker Change #139: No that's really a function of franchise performance so franchise driving accelerating new business production makes you a premium grow faster than your core revenue because you're only getting 20 on the dollar on the revenue side, but the premium is all gross so when.

Speaker Change: Andrew if your line's on mute could you please a muted.

Speaker Change: Can you hear me now.

Speaker Change #138: Thank you very much.

Andrew Klingaman: Can you hear me, yes, we got you Andrew Okay, great. So looking at your EBITDA margin of a really strong 34%.

Speaker Change #138: Okay.

Speaker Change #140: And thank you and one moment for our next question.

Speaker Change #139: When <unk> got consistent year over year acceleration on the franchise side of the business those things can level out, but when you have a year like we had this year, where it really started in the fourth quarter of last year franchise picked up a lot of momentum and has had a phenomenal year. So far this year that drives that GAAP.

And our next question comes from Andrew Klingaman from TD Cowen. Your line is now open.

190 bps year over year, and as I look at the various.

Andrew Klingaman: Components the expenses the interest expense depreciation and the tax you talked about being tight on G&A.

Speaker Change #141: Thank you very much.

Okay.

Speaker Change #142: And thank you and one moment for our next question.

Speaker Change #142: Andrew if your line's on mute could you please a muted.

Speaker Change: It was all lower than we had anticipated now in other quarters, it kind of bumps around year over year like last quarter EBITDA was was down versus the year ago quarter. So my question for you is could.

Speaker Change #145: And our next question comes from Andrew <unk> from TD Cowen. Your line is now open.

Andrew Klingaman: Can you hear me now.

Andrew Klingaman: Can you hear me, yes, we got you Andrew Okay, great. So looking at your EBITDA.

Andrew Klingaman: Margin of a really strong 34%.

Speaker Change: Could you talk about each of the expense line items.

Speaker Change #146: Hundred 90 bps up.

Speaker Change #146: Andrew if your line's on mute could you please a muted.

Speaker Change #146: Year over year, and as I look at the various.

Speaker Change: They are likely to play out going forward, and whether 190 basis points year over year.

Speaker Change #146: Components the expenses the interest expense depreciation and the tax you talked about being tight on G&A.

Speaker Change #148: Can you hear me now.

Speaker Change: Is something sustainable because your guidance is only that EBITDA margins will be up year over year.

Speaker Change #149: Can you hear me, yes, we got you Andrew Okay, great. So looking at your EBITDA margin of a really strong 34%.

Speaker Change #146: It was all lower than we had anticipated.

Yes, Andrew what I would say is that's going to continue to be what our guidance is is that adjusted EBITDA margin will be up year over year, especially if you exclude contingencies, so not going to get more specific than that in terms of the margin numbers, but from a cost growth perspective, you can match really your compensation growth.

Speaker Change #146: Now in other quarters, it kind of bumps around year over year like last quarter EBITDA was was down versus the year ago quarter. So my question for you is.

Speaker Change #150: 190 bps year over year, and as I look at the various.

Speaker Change #140: Components the expenses the interest expense depreciation and the tax you talked about being tight on G&A.

Speaker Change #146: Could you talk about each of the expense line items.

They are likely to play out going forward, and whether 190 basis points year over year.

Speaker Change #151: It was all lower than we had anticipated now in other quarters, it kind of bumps around year over year like last quarter EBITDA was was down versus the year ago quarter. So my question for you is could you talk about each of the expense line items.

Speaker Change: <unk> when we onboard the significant amount of people, which in the sales function is largely in the summer, which that's typically when the seasonality of the book runs the hottest which would mean.

Speaker Change #146: Is something sustainable because your guidance is only that EBITDA margins will be up year over year.

Speaker Change: That's what you need to have the most service heads as well. So you onboard service people a few months earlier, then you onboard salespeople event your salespeople, mostly come in the summer timeframe. So you see increases in comp and benefits in the second and third quarter relative to the first.

Speaker Change #152: Yes, Andrew what I would say is that's going to continue to be what our guidance is is that adjusted EBITDA margin will be up year over year, especially if you exclude contingencies, so not going to get more specific than that in terms of the margin numbers, but from a cost growth perspective, you can match really your compensation growth.

Andrew Klingaman: They are likely to play out going forward, and whether 190 basis points year over year.

Speaker Change: And then from a G&A expense perspective.

Andrew Klingaman: Is something sustainable because your guidance is only that EBITDA margins will be up year over year.

Speaker Change: It depends on what actually happens in that year. When you see the step up so it's a little bit less consistent from a timing perspective, and as employee comp and benefits because we're launching the Phoenix office here in the fourth quarter of this year, that's going to cause a slight increase in G&A expense related to that build out some travel expenses to getting agents out of our Texas gene.

Speaker Change #152: So when we onboard the significant amount of people, which in the sales function is largely in the summer, which that's typically when the seasonality of the book runs the hottest which would mean.

Speaker Change #153: Yes, Andrew.

Andrew Klingaman: I would say is that's going to continue to be what our guidance is is that adjusted EBITDA margin will be up year over year, especially if you exclude contingencies, so not going to get more specific than that in terms of the margin numbers, but from a cost growth perspective, you can match really your compensation growth rates, when we onboard the significant amount of people, which.

Speaker Change #152: We need to have the most service heads as well. So you onboard service people a few months earlier, then you onboard salespeople that your salespeople, mostly come in the summer timeframe. So you see increases in comp and benefits in the second and third quarter relative to the first.

Speaker Change: Graffiti into the Phoenix geography, so there'll be things like that that happen on a year to year basis, but work. We're committed to is continuing to drive margin expansion, excluding contingencies on an annual basis and you should see again nice margin expansion in the fourth quarter of this year.

Speaker Change #154: In the sales function is largely in the summer, which that's typically when the seasonality of the book runs the hottest which would mean.

Speaker Change #152: Then from a G&A expense perspective.

Speaker Change #152: It depends on what actually happens in that year. When you see the step up so it's a little bit less consistent from a timing perspective, it is employee comp and benefits because we are launching the Phoenix office here in the fourth quarter of this year, that's going to cause a slight increase in G&A expense related to that build out some travel expenses to getting agents out of our Texas gene.

Speaker Change #155: That's what you need to have the most service heads as well. So you onboard service people a few months earlier, then you onboard salespeople event your salespeople, mostly come in the summer timeframe. So you see increases in comp and benefits in the second and third quarter relative to the first.

Speaker Change: Margin year over year in the fourth quarter.

Speaker Change: Correct.

Speaker Change: Okay that was it.

Speaker Change: Very helpful.

Speaker Change: Back to the corporate.

Speaker Change: The corporate agents, so I mean.

Speaker Change #152: And then from a G&A expense perspective.

Speaker Change: Pretty amazing new agents with less than a year tenure were at $2 77 in the quarter versus 132.

Speaker Change #152: It depends on what actually happens in that year. When you see the step up so it's a little bit less consistent from a timing perspective, it is employee comp and benefits because we're launching the Phoenix office here in the fourth quarter of this year, that's going to cause a slight increase in G&A expense related to that build out some travel expenses to getting agents out of our Texas gene.

Speaker Change #152: Lager fees into the Phoenix geography, so there'll be things like that that happen on a year to year basis, but work. We're committed to is continuing to drive margin expansion, excluding contingencies on an annual basis and you should see again nice margin expansion in the fourth quarter of this year.

Speaker Change: And.

Speaker Change: Then you talk about adding this Phoenix office.

Speaker Change: So I'm not sure I kind of got the answer to the question and earlier questions.

Speaker Change #152: Margin year over year in the fourth quarter.

Speaker Change #152: Lager fees into the Phoenix geography, so there'll be things like that that happen on a year to year basis, but we're committed to is continuing to drive margin expansion, excluding contingencies on an annual basis and you should see again nice margin expansion in the fourth quarter of this year.

Speaker Change: But my sense is that that $2 77.

Speaker Change #152: Correct.

Speaker Change #152: Okay that was it.

Speaker Change #152: Very helpful.

Speaker Change: Could be meaningfully bigger next year and the question for you as well.

Speaker Change #152: Back to the corporate.

The corporate agents, so I mean.

Speaker Change: Why do you you've mentioned several times on the call that these this class of corporate agents is better than you've ever had why why is it so high quality.

Speaker Change #152: Pretty amazing new agents with less than a year tenure were at $2 77 in the quarter versus 132.

Speaker Change #152: Margin year over year in the fourth quarter.

Speaker Change #152: And.

Speaker Change #152: Correct.

Speaker Change #156: Then you talk about adding this Phoenix office.

Speaker Change: I'll start with just.

Speaker Change #152: Okay that was it.

Speaker Change #156: Very helpful.

Speaker Change: I mentioned, a moment ago the quality of the.

Back to the corporate.

Speaker Change #158: So I'm not sure I kind of got the answer to the question and earlier questions.

The corporate agents, so I mean.

Speaker Change: Corporate agents as a function of how we recruit where we recruit the scrutiny with which we put on those agents.

Speaker Change #156: Pretty amazing the new agents with less than a year tenure were at $2 77 in the quarter versus 132.

Speaker Change #158: But my sense is that that $2 77.

Speaker Change: We mentioned several quarters ago.

Speaker Change #158: Could be meaningfully bigger next year and the question for you is why do you you've mentioned several times on the call that these this class of corporate agencies is better than you've ever had why why is it so high quality.

Speaker Change: During the Covid period are a recruiting criteria was not as stringent as it is today. So we have put more recruiters out there recruiting at more college campuses recruiting to higher standards and putting them through a very rigorous interview process.

Speaker Change #156: And.

Speaker Change #159: Then you talk about adding this Phoenix office.

Speaker Change #152: So.

Speaker Change #160: Im not sure I kind of got the answer to the question and earlier questions.

Speaker Change #161: But my sense is that that $2 77.

Speaker Change #161: I'll start with just.

Speaker Change: Yes, and we've revamped our training and onboarding programs as well to make that process more efficient and more effective. So you can get them down the learning curve better and if you think about the environment that these new agents are coming into the fact that they're performing as well as they are in such a constricted product environment with housing transactions well down you should expect that.

Speaker Change #164: I mentioned, a moment ago, the quality of the corporate agents as a function of how we recruit where we recruit the scrutiny with which we put on those agents.

Speaker Change #163: Could be meaningfully bigger next year and the question for you is.

Why do you you've mentioned several times on the call that these this class of corporate agencies is better than you've ever had why why is it so high quality.

We mentioned several quarters ago during the Covid period are our recruiting criteria was not as stringent as it is today. So we have put more recruiters out there recruiting at more college campuses recruiting to higher standards and putting them through a very rigorous interview process.

I'll start with just.

Speaker Change: They perform better than what we have historically as product becomes more available housing starts to pick back up more acute gi functionality becomes online it's a lot easier for us to ramp up agents in a good environment that isn't a challenging months I'm really pleased with how we're doing this so far.

Speaker Change #152: I mentioned, a moment ago, the quality of the corporate agents as a function of how we recruit where we recruit the scrutiny with which we put on those agents.

Speaker Change #164: Yes, and we've revamped our training and onboarding programs as well to make that process more efficient and more effective. So you can get them down the learning curve better and if you think about the environment that these new agents are coming into the fact that they're performing as well as they are in such a constricted product environment with housing transactions well down you should expect that.

Speaker Change #165: We mentioned several quarters ago during the Covid period are our recruiting criteria was not as stringent as it is today. So we have put more recruiters out there recruiting at more college campuses recruiting to higher standards and putting them through a very rigorous interview process.

And then maybe just to sneak in one last one you talked about the captives raising prices.

Speaker Change: Just curious what about the big dog captive state farm, they finally kind of.

Speaker Change: Leveled out or are they still.

Speaker Change: Flat to down in pricing as you see the competition there.

Speaker Change #166: Yes, and we've revamped our training and onboarding programs as well to make that process more efficient and more effective. So you can get them down the learning curve better and if you think about the environment that these new agents are coming into the fact that they're performing as well as they are in such a constricted product environment with housing transactions well down you should expect that.

Speaker Change #164: They perform better than what we have historically as product becomes more available housing starts to pick back up more <unk> functionality becomes online you know, it's a lot easier for us to ramp up agents in a good environment that isn't a challenging months I'm really pleased with how we're doing this so far.

Speaker Change: Yes, I mean, what I would tell you is we have a market for pretty much everybody. That's out there and so where we are competitive will depend on.

Speaker Change: What the pricing of other players that aren't on our platform look like in that market. So I can't speak to somebody's specific pricing models, but we're doing a good job using our technology and our carrier relationships to provide our agents the product they need.

And then maybe just to sneak in one last one you talked about the captives raising prices.

Speaker Change #164: They perform better than what we have historically as product becomes more available housing starts to pick back up more acute gi functionality becomes online it's a lot easier for us to ramp up agents in a good environment that isn't that challenging months I'm really pleased with how we're doing this so far.

Speaker Change #167: Just curious what about the big dog Captain State farm, they finally kind of.

Speaker Change: Feel like Youre carriers are kind of gaining steam versus the captives in general.

Speaker Change #167: Leveled out or are they still.

Speaker Change #169: Flat to down in pricing as you see the competition there.

Speaker Change: It depends on the geography, there is puts and takes everywhere some markets are better than others.

Speaker Change #170: And then maybe just to sneak in one last one you talked about the captives raising prices.

Speaker Change #171: Yes, I mean, what I would tell you is we have a market for pretty much everybody that's out there and so.

Speaker Change: Got it thanks a lot.

No problem.

Thank you and one moment our next question.

Speaker Change #171: Where we are competitive will depend on what.

Speaker Change #173: Just curious what about the big dog captive state farm, they finally kind of.

The pricing of other players that aren't on our platform look like in that market. So I can't speak to somebody's specific pricing models, but we're doing a good job using our technology and our carrier relationships to provide our agents the product they need.

Speaker Change: And our next question comes from Pablo things on from J P. M. Your line is now open.

Speaker Change #174: Leveled out or are they still.

Speaker Change #175: Flat to down in pricing as you see the competition there.

Pablo: Hi, Thanks for squeezing me in so first one I was curious to hear what's your sense of how long the pricing tailwind from homeowners insurance will lessen once the market normalizes.

Yes, I mean, what I would tell you is we have a market for pretty much everybody that's out there and so.

Speaker Change #176: Did you feel like Youre carriers are kind of gaining steam versus the captives in general.

Speaker Change #164: Where we are competitive will depend on what.

Speaker Change #177: It depends on the geography, there's puts and takes everywhere.

Speaker Change #164: The pricing of other players that aren't on our platform look like in that market. So I can't speak to somebody's specific pricing models, but we're doing a good job using our technology and our carrier relationships to provide our agents the product they need.

Pablo: What how do you think about the benefit you will get from pricing exposure.

Speaker Change #178: Markets are better than others got it thanks a lot.

Speaker Change: Yeah, Pablo I think every time I've tried to guess on this I have been wrong.

Speaker Change #179: No problem and thank you and one moment our next question.

Speaker Change: But I would tell you that business is really naturally hedged like I talked about in my prepared remarks. So when you see the pricing of homeowners level off you get better client retention, which just means you retain a significant amount of your earnings from one year to the next because that's where all the profitability is we don't really make much money on new business production Thats all on the renewal book now and.

Speaker Change #180: Did you feel like Youre carriers are kind of gaining steam versus the captives in general.

Speaker Change #180: And our next question comes from Pablo things on from J P. M. Your line is now open.

Speaker Change #181: It depends on the geography, there's puts and takes everywhere.

Pablo: Hi, Thanks for squeezing me in so first one.

Speaker Change #167: Markets are better than others got it thanks a lot.

Pablo: I was curious to hear what's your sense of how long the pricing tailwind from homeowners insurance will lessen once the market normalizes.

Speaker Change #169: No problem and thank you and one moment our next question.

Speaker Change: And then you get a higher amount of payout from a contingent Commission program and you get a good value proposition to your referral partners, because youre, winning a higher percentage of the deals you could happier agents because they are winning a higher percentage of the deal. So I don't necessarily love. It when prices are up 15% year over year I'd be much happier at a high single digit rate, where youre still getting nice kind of.

Speaker Change #184: And our next question comes from Pablo things on from J P. M. Your line is now open.

Pablo: How do you think about the benefit you will get from pricing exposure.

Pablo: Yeah.

Speaker Change #185: I think every time I have tried to guess on this I have been wrong.

Speaker Change #184: Hi, Thanks for squeezing me in so first one.

Speaker Change #185: But I would tell you that business is really naturally hedged like I talked about in my prepared remarks. So when you see the pricing of homeowners level off you get better.

Speaker Change #187: I was curious to hear what's your sense of how long the pricing tailwind from homeowners insurance will lessen once the market normalizes.

Speaker Change: Asian Protection rays on your book, but your agents are winning consistently client retention has consistently high.

Speaker Change #185: Current retention, which just means you retain a significant amount of your earnings from one year to the next because that's where all the profitability as we don't really make much money on new business production Thats all on the renewal book.

Speaker Change #187: How do you think about the benefit you will get from pricing exposure.

Speaker Change: So I can't give you a perfect timeline on what that looks like but we're starting to see early indications of good loss ratios from underwriters.

Speaker Change #187: Yes.

Speaker Change #187: I think every time I have tried to guess on this I have been wrong.

Speaker Change #185: And then you get a higher amount of payout from a contingent Commission program and you get a good value proposition to your referral partners, because youre, winning a higher percentage of the deals you could happier agents because they are winning a higher percentage of the deal. So I don't necessarily love. It when prices are up 15% year over year I'd be much happier at a high single digit rate, where youre still getting nice kind of.

Speaker Change: Thank you.

Speaker Change #177: But I would tell you that business is really naturally hedged like I talked about in my prepared remarks. So when you see the pricing of homeowners level off you get better.

Speaker Change: And then my second question.

Speaker Change: Two other questions that have been asked on the call right, but I think.

Speaker Change: One standout aspect of this quarter or is this your expense control.

Speaker Change #189: Current retention, which just means you retain a significant amount of your earnings from one year to the next because that's where all the profitability as we don't really make much money on new business production Thats all on the renewal book.

Speaker Change: That's been mentioned G&A was a standout.

Speaker Change: Is there any way to quantify maybe frame, how you're thinking about the trajectory there.

Speaker Change: If you take a simple metric like year over year growth. It was up 2%, which is probably the lowest you've.

Speaker Change #180: And then you get a higher amount of payout from a contingent Commission program and you get a good value proposition to your referral partners, because youre, winning a higher percentage of the deals you could happier agents because they are winning a higher percentage of the deal. So I don't necessarily love. It when prices are up 15% year over year I'd be much happier at a high single digit rate, where youre still getting nice kind of.

Speaker Change #185: Protection rays on your book, but your agents are winning consistently client retention has consistently high.

Speaker Change: Experience so.

Speaker Change #185: To give you a perfect timeline on what that looks like but we're starting to see early indications of good loss ratios from underwriters.

Speaker Change: As you think about the lineup G&A. How are you guys managing that right. So obviously is going to be lower than revenue growth, but you know.

Speaker Change #190: Thank you.

Speaker Change: Any any help in how to think about that more quantitatively.

Speaker Change #191: And then my second question sort of a follow up to other questions that have been asked on the call right, but I think one start out aspect of this quarter versus your expense control.

Speaker Change: Yes, if you remember after the first quarter.

Speaker Change #185: <unk> protection rays on your book, but your agents are winning consistently client retention has consistently high.

Speaker Change: When we lowered our revenue guidance immediately what we did was try and reevaluate everything that we are investing in in 2024 and make sure that it was strategically exactly what we needed to do to secure growth for 'twenty four and 425, so we're going to keep making all of those investments that we need to and you shouldnt expect to see 2% growth in G&A looking at <unk>.

Speaker Change #191: That hasn't been mentioned G&A was a standout.

Speaker Change #185: So I can't give you a perfect timeline on what that looks like but we're starting to see early indications of good loss ratios from underwriters.

Speaker Change #191: Is there any way to quanta.

Speaker Change #191: And any frame, how you're thinking about the trajectory there.

Speaker Change #191: If you take a simple metric like year over year growth. It was up 2% participated the lowest you've ever experienced so.

Speaker Change #192: Thank you.

Speaker Change #193: And then my second question.

Two other questions that have been asked on the call right, but I think.

As you think about the lineup G&A. How are you guys managing that right. So obviously, it's going to be lower than revenue growth, but.

Speaker Change #193: One standout aspect of this quarter versus your expense control.

Speaker Change: 25, but I'm not going to give you specific guidance on that but I will tell you is you should expect to see G&A in compensation and benefits growing slower than total revenue on an annual basis, because we are committed to driving margin expansion.

Speaker Change #194: That's been mentioned G&A was a standout.

Speaker Change #191: Any any help in how to think about that more quantitatively.

Speaker Change #195: Is there any way to quantify maybe frame, how you're thinking about the trajectory there.

Speaker Change #195: Yes, if you remember after the first quarter.

Speaker Change #197: If you take a simple metric like year over year growth. It was up 2% participated the lowest you've ever experienced so.

Speaker Change #195: When we lowered our revenue guidance immediately what we did was try and reevaluate everything that we are investing in in 2024 and make sure that it was strategically exactly what we needed to do to secure growth for 'twenty four and 425, so we're going to keep making all of those investments that we need to and you shouldnt expect to see 2% growth in G&A looking at.

Speaker Change: Okay.

Speaker Change: And then last for me just a numbers question and apologies if I missed this.

Speaker Change #198: As you think about the lineup G&A. How are you guys managing that right. So obviously, it's going to be lower than revenue growth, but you know.

Speaker Change: Can we have the <unk> payments for the corporate and franchisee.

Speaker Change: I believe that was in the prepared remarks, but if it wasn't you should be able to find that in the 10-Q, which should be out.

Speaker Change #185: Any any help in how to think about that more quantitatively.

Speaker Change #199: Yes, if you remember after the first quarter.

Speaker Change: Sometimes.

Speaker Change #201: When we lowered our revenue guidance immediately what we did was try and reevaluate everything that we are investing in in 2024 and make sure that it was strategically exactly what we needed to do to secure growth for 'twenty four and 425, so we're going to keep making all of those investments that we need to and you shouldnt expect to see 2% growth in G&A looking at <unk>.

Speaker Change #195: 225, but I'm not going to give you specific guidance on that but I will tell you is you should expect to see G&A in compensation and benefits growing slower than total revenue on an annual basis, because we are committed to driving margin expansion.

Speaker Change: Gotcha. Thank you.

Speaker Change: No problem.

Speaker Change: Thank you one moment our next question.

Speaker Change: And our next question comes from Scott <unk> from RBC capital markets. Your line is now open.

Speaker Change #200: Okay that makes sense and then last for me just a numbers question and apologies if I missed this.

Speaker Change #100: Yeah. Thanks, just wondering if you could expand on the opening of the corporate office in Phoenix, just talk about your market presence that you have there.

Speaker Change #201: Can we have the <unk> payments for the corporate and franchisee channel. Please.

Speaker Change #203: 25, but I'm not going to give you specific guidance on that but I will tell you is you should expect to see G&A in compensation and benefits growing slower than total revenue on an annual basis, because we are committed to driving margin expansion.

I believe that was in the prepared remarks, but if it wasn't you should be able to find that in the 10-Q, which should be okay.

Speaker Change #100: The opportunity you feel like.

Is out there at west compared to where you are now and kind of what drove that.

Speaker Change #201: Right.

Speaker Change #191: Okay.

Speaker Change #201: Got it thank you.

Speaker Change #204: And then last for me just a numbers question and apologies if I missed this.

Speaker Change #101: Yes, the new corporate office out there.

Speaker Change #205: No problem and thank you and one moment our next question.

Yes, when we look at where we want to open a new corporate office and we haven't done one in several years at least since I've been here.

Speaker Change #195: Can we have the <unk> payments for the corporate and franchisee.

Speaker Change #206: And our next question comes from Scott <unk> from RBC capital markets. Your line is now open.

Speaker Change #207: I believe that was in the prepared remarks, but if it wasn't you should be able to find that in the 10-Q, which should be out.

Speaker Change #101: We look at what coverage, we have with existing franchises, which when we look at.

Speaker Change #209: Yeah. Thanks, just wondering if you could expand on the opening of the corporate office in Phoenix, just talk about your market presence that you have there.

Speaker Change #101: Arizona.

Speaker Change #207: Sometimes.

Speaker Change #101: We don't have a big we have some good franchises out there, but we don't have a big presence.

Got it thank you.

Speaker Change #208: No problem.

Speaker Change #209: Thank you one moment our next question.

Speaker Change #101: Have anybody that many that extend into California, and some of the other western states.

Speaker Change #209: The opportunity you feel like is out there at west compared to where you are now and kind of what drove that.

Speaker Change #211: And our next question comes from Scott <unk> from RBC capital markets. Your line is now open.

Speaker Change #101: We look at the schools that are around it.

Speaker Change #101: Into it and so <unk> happens to have a good feeder program for.

Speaker Change #209: The new corporate office out there.

Speaker Change #212: Yes. Thanks, just wondering if you could expand on the opening of the corporate office in Phoenix, just talk about your market presence that you have there.

Speaker Change #212: Yes, when we look at where we want to open a new corporate office and we haven't done one in several years at least since I've been here.

Speaker Change #101: For what we need to do there and when we look at the carrier environment.

Speaker Change #101: And is it a good carrier market for us and it is Arizona is very good for us and there's parts of California that look pretty good too at this point, but we don't plan to open in California office, but we look at every every market the same way, which is on that same criteria.

Speaker Change #212: We look at what coverage, we have with the existing franchises, which when we look at Arizona, We don't have a big we have some good franchises out there, but we don't have a big presence.

Speaker Change #201: The opportunity you feel like.

Speaker Change #201: Is out there at west compared to where you are now and kind of what drove that.

Speaker Change #214: Yes, the new corporate office out there.

Speaker Change #212: We don't have anybody that many that extend into California, and some of the other western states.

Speaker Change #215: Yes, when we look at where we want to open a new corporate office and we haven't done one in several years at least since I've been here.

Speaker Change #102: Okay got it that makes sense and then just my other question to follow up is just wondering if you can talk about just kind of the shopping activity youre seeing out there in the last few months versus the previous few quarters is that does that settled down and all do you feel like thats, peaking or just any observations that you can share on kind of what your agents are seeing out there.

Speaker Change #212: Look at the schools that are around it.

Speaker Change #205: We look at what coverage, we have with existing franchises, which when we look at.

Speaker Change #212: Into it and so <unk> happens to have a good feeder program for.

Speaker Change #205: Arizona.

Speaker Change #212: So what we need to do there and when we look at the carrier environment.

Speaker Change #216: We don't have a big we have some good franchises out there, but we don't have a big presence.

Speaker Change #212: And is it a good carrier market for us and it is Arizona is very good for us and there's parts of California that look pretty good too at this point, but we don't plan to open in California office, but we look at every every market the same way, which is on that same criteria.

Speaker Change #216: Have anybody that many that extend into California, and some of the other western states.

Speaker Change #103: Yes, I wish I could tell you it settled down but it really hasnt.

Speaker Change #209: We look at the schools that are around it.

Speaker Change #103: Pricing has slowed down just barely a little bit in the third quarter compared to the second quarter, but.

Speaker Change #209: Into it and so <unk> happens to have a good feeder program for.

As those clients still get their renewals I know personally for me My insurance is up 30% in my deductible doubled so that doesn't feel great for me I had to reach out personally in my account.

Speaker Change #209: For what we need to do there and when we look at the carrier environment.

Speaker Change #217: Okay got it that makes sense and then just my other question to follow up is just wondering if you can talk about just kind of the shopping activity you're seeing out there in the last few months versus the previous few quarters is that does that settled down and all do you feel like thats, peaking or just any observations that you can share on kind of what your agents are seeing out there.

Speaker Change #209: And is it a good carrier market for us and it is Arizona is very good for us and there's parts of California that look pretty good too at this point, but we don't plan to open in California office, but we look at every every market the same way, which is on that same criteria.

Speaker Change #103: So theres still a lot of shopping activity going on in the market and that makes us think that productivity numbers look all the more impressive because they're doing a lot more work in the day to.

Speaker Change #103: To generate the level of productivity they are doing.

Speaker Change #218: Yes, I wish I could tell you it settled down but it really hasnt.

Speaker Change #219: Okay got it that makes sense and then just my other question to follow up is just wondering if you can talk about just kind of the shopping activity youre seeing out there in the last few months versus the previous few quarters is that does that settled down and all do you feel like thats, peaking or just any observations that you can share on kind of what your agents are seeing out there.

Speaker Change #104: Okay. Thanks, a lot.

Speaker Change #218: Pricing has slowed down just barely a little bit in the third quarter compared to the second quarter, but.

Speaker Change #105: And thank you and one moment for our next question.

Speaker Change #218: As those clients they'll get their renewals I know personally for me My insurance is up 30% in my deductible doubled so that doesn't feel great for me I had to reach out personally in my account.

Speaker Change #106: And our next question comes from Kt <unk> from Autonomous Research. Your line is now open.

Speaker Change #107: Alright, Thank you and good evening.

Speaker Change #220: Yes, I wish I could tell you it settled down but it really hasnt.

So theres still a lot of shopping activity going on in the market and that makes us think that productivity numbers look all the more impressive because they're doing a lot more work in the day.

Speaker Change #108: Question for you guys.

Speaker Change #109: We've talked about.

Speaker Change #221: Pricing has slowed down just barely a little bit in the third quarter compared to the second quarter, but.

Speaker Change #110: Cadence of margin expansion being a little bit more weighted to the back half of this year and noted that should be the most robust in the fourth quarter can we expect a similar cadence to margin improvement in 2025.

Speaker Change #223: As those clients they'll get their renewals I know personally for me My insurance is up 30% in my deductible doubled so that doesn't feel great for me I had to reach out personally in my account.

To generate the level of productivity they are doing.

Speaker Change #222: Okay. Thanks, a lot.

Speaker Change #224: From an thing Q1 moment for our next question.

Speaker Change #223: So theres still a lot of shopping activity going on in the market and that makes us think that productivity numbers look all the more impressive because they're doing a lot more work in the day to.

Speaker Change #111: Typically as you think about the seasonality of the earnings a lot and contingencies can swing that pretty dramatically from quarter to quarter and so usually you get more information on your contingencies in the third and fourth quarter than you would have in the first and second quarter. So that can drive a lot of margin in the back half of the year, but also as you onboard.

Speaker Change #225: And our next question comes from Katie <unk> from Autonomous Research. Your line is now open.

Speaker Change #217: To generate the level of productivity they are doing.

Speaker Change #225: Alright, Thank you and good evening.

Speaker Change #217: Okay. Thanks, a lot.

Speaker Change #227: Question for you guys.

Speaker Change #228: We've talked about.

Speaker Change #229: And thank you and one moment for our next question.

The cadence of margin expansion being a little bit more weighted to the back half of this year end.

Speaker Change #111: Producers really beginning in kind of late May early June and they start to become productive and then seasonality of housing transactions happens consistently really in the second and third quarter. So that drives a lot of new business production, which just means you'll get more renewals come in in the second and third quarter. So you should typically expect EBITDA growth to follow the similar.

Speaker Change #228: Noted that should be the most robust in the fourth quarter can we expect a similar cadence to margin improvement in 2025.

Speaker Change #230: And our next question comes from Katie <unk> from Autonomous Research. Your line is now open.

Speaker Change #232: Hi, Thank you good evening.

Speaker Change #233: Typically as you think about the seasonality of the earnings a lot and contingencies can swing that pretty dramatically from quarter to quarter and so usually you get more information on your contingencies of third and fourth quarter than you would have in the first and second quarter. So that can drive a lot of margin in the back half of the year, but also as you onboard.

Speaker Change #231: Question for you guys.

Speaker Change #231: We've talked about the <unk>.

Speaker Change #233: Cadence of margin expansion being a little bit more weighted to the back half of this year and noted that should be the most robust in the fourth quarter can we expect a similar cadence to margin improvement in 2025.

Speaker Change #111: Cadence as new business production, and then contingencies weighted in the second half of the year will drive typically strong expansion year over year.

Speaker Change #112: Okay helpful. Thank you and then.

Speaker Change #113: A follow up I think.

Speaker Change #114: A couple of questions ago, you guys mentioned that this class of corporate.

Speaker Change #233: New producers really beginning in kind of late May early June and they start to become productive and then seasonality of housing transactions happens consistently really in the second and third quarter. So that drives a lot of new business production, which just means you get more renewals come in in the second and third quarter. So you should typically expect EBITDA growth to follow the <unk>.

Speaker Change #235: Typically as you think about the seasonality of the earnings a lot and contingencies can swing that pretty dramatically from quarter to quarter and so usually you get more information on your contingencies in the third and fourth quarter than you would have in the first and second quarter. So that can drive a lot of margin in the back half of the year, but also as you onboard.

Speaker Change #115: Has slightly different economics compared to previous coffee.

Yes thinking in terms of those different things.

Speaker Change #115: What I mean.

Speaker Change #116: Let me be clear I, probably didnt state that.

Speaker Change #238: New producers really beginning in kind of late May early June and they start to become productive and then seasonality of housing transactions happens consistently really in the second and third quarter. So that drives a lot of new business production, which just means you get more renewals come in in the second and third quarter. So you should typically expect EBITDA growth to follow.

Speaker Change #233: Fuller cadence as new business production, and then contingencies weighted in the second half of the year will drive.

Speaker Change #116: Properly earlier I'm talking about like how you retain agents not versus how they're commission flows work or anything like that so it shouldnt be.

Speaker Change #233: Typically strong expansion year over year.

Speaker Change #236: Okay helpful. Thank you and then.

Speaker Change #116: Any kind of change to your model.

Speaker Change #236: I think a couple of questions ago.

Speaker Change #116: Okay.

Speaker Change #116: I think in terms of.

Speaker Change #237: You guys mentioned that this class of corporate.

Speaker Change #116: The impact of that the most recent Clos corporate recruit should have on <unk>.

Has slightly different economics compared to previous coffee.

Similar cadence as new business production, and then contingencies weighted in the second half of the year will drive typically strong expansion year over year.

Speaker Change #116: Margin at the end of their first year of Wacky now how does that net impact for this class in light of improved productivity.

Yes thinking in terms of those differences.

Speaker Change #237: What I mean.

Speaker Change #240: Okay helpful. Thank you and then.

Speaker Change #237: Let me be clear I, probably didnt state that properly.

Speaker Change #239: I think yes.

Speaker Change #116: <unk> previous classes.

A couple of questions ago, you guys mentioned that this class of corporate.

Properly earlier I'm talking about like how you retain agents not versus how they're commission flows work or anything like that so it shouldnt be.

Speaker Change #117: Typically if you've got better productivity you should expect to receive better margin on the same number of agents and just from an economics perspective really what we're doing is trying to shift some of the economics more weighted to the retention of the employees, we want to make sure people get through their first year. They can see the full benefits of work.

Speaker Change #239: Has slightly different economics compared to previous coffee.

Speaker Change #237: Any kind of change to your model.

Speaker Change #233: Yes thinking in terms of those differences.

Speaker Change #237: Okay.

Speaker Change #237: I think so in terms of.

Speaker Change #233: What I mean.

Speaker Change #237: The impact that the most recent Clos corporate should have on <unk>.

I mean, let me be clear I, probably didnt state that.

Speaker Change #241: Properly earlier I'm talking about like how you retain agents not versus how they're commission flows work or anything like that so it shouldnt be.

Speaker Change #117: In our systems and the differentiation that we have compared to the other jobs that are out there. That's really all it is it shouldnt impact your modeling of the economics of a corporate agent.

Speaker Change #237: Margins at the end of their first year of Wacky now how does that net impact deferred for this class in light of improved productivity.

Speaker Change #233: Any kind of change to your model.

Speaker Change #118: Okay. Thank you.

Speaker Change #237: <unk> previous classes.

Speaker Change #233: Okay.

Speaker Change #119: No problem and thank you.

Speaker Change #233: I think in terms of.

Typically if you've got better productivity you should expect to receive better margin on the same number of agents and just from an economics perspective really what we're doing is trying to shift some of the economics more weighted to the retention of the employees, we want to make sure people get through their first year. They can see the full benefits of work.

Speaker Change #233: The impact of that most recent Clos corporate should have on <unk>.

Speaker Change #120: And I would now like to turn the call back over to CEO Mark Miller.

Speaker Change #236: Margins at the end of their first year of Wacky now how does that net impact for this class in light of improved productivity.

Mark Miller: I wanted to thank everyone for taking the time to join US today I appreciate the continued investment and support.

Mark Miller: We look forward to talking to you again in February.

Speaker Change #237: <unk> previous classes.

Speaker Change #121: This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change #237: In our systems and the differentiation that we have compared to the other jobs that are out there. That's really all it is it shouldnt impact your modeling of the economics of a corporate agent.

Speaker Change #237: Okay. Thank you.

Speaker Change #242: No problem and thank you.

Speaker Change #243: And I would now like to turn the call back over to CEO Mark Miller.

Mark Miller: I wanted to thank everyone for taking the time to join US today I appreciate the continued investment and support.

Speaker Change #244: Okay. Thank you.

Mark Miller: We look forward to talking to you again in February.

Speaker Change #245: No problem and thank you.

Speaker Change #246: This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change #247: And I would now like to turn the call back over to CEO Mark Miller.

Speaker Change #248: I wanted to thank everyone for taking the time to join US today I appreciate the continued investment and support.

Speaker Change #248: We look forward to talking to you again in February.

Speaker Change #246: Yes.

Speaker Change #249: This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change #246: [music].

Speaker Change #246: Okay.

Speaker Change #246: Yeah.

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