Hagerty (NYSE: HGTY) reported third quarter 2022 total revenue increased 29% year-over-year (YoY) to $216.8 million, and year-to-date 2022 total revenue increased 27% YoY to $590.6 million. Total written premium in Q3 increased 16% YoY to $222.1 million compared to $192.1 million in 3Q 2021. Here are five things you should know about this earnings call:
- For 3Q 2022, HGTY reported net income of $24.3 million, compared to -$0.5 million in 3Q 2021, and net income of $34.6 million year-to-date, compared to $5.1 million in the prior year period. Net income included the impact from the change in fair value of warrant liabilities and the revaluation gain on previously held equity method investment.
- HGTY’s Founder and CEO McKeel O. Hagerty stated, “We are very encouraged by our 27% year-to-date revenue growth, which keeps us on track to deliver full year 2022 revenue toward the high end of our previous outlook despite a challenging economic environment and heightened volatility across the broader property and casualty space.”
- HGTY reported adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) of -$10.0 million for the third quarter compared to $7.6 million in the prior year period. This 3Q decrease was driven in part by the impact from Hurricane Ian, the increased 2022 loss reserves, and pre-revenue costs related to scaling their infrastructure. The year-to-date adjusted EBITDA was $0.1 million, compared to $28.0 million in the prior year period.
- In August 2022, HGTY acquired the Broad Arrow Group to help build the Hagerty Marketplace platform for members to buy, sell and finance collector vehicles. In 3Q HGTY executed its first live auction at Motorlux in Monterey with $55 million in total vehicle sales helping drive $8 million in year-to-date Hagerty Marketplace revenue. Two more auctions are planned for Q4.
- As part of the State Farm partnership, HGTY expects to begin activating State Farm’s 19,200 agents to sell classic car policies during the first half of 2023 and to begin the state-by-state conversion of the existing 460,000 policies to the new program.
To learn more visit: Hagerty Q3 2022 News Details
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