The Baldwin Insurance Group, Inc. (BWIN) 10 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Bonnie Bishop	Executive Director of Investor Relations
Trevor Baldwin	Chief Executive Officer
Brad Hale	Chief Financial Officer
Kris Wiebeck	Chief Strategy Officer
Greg Peters	Raymond James
Josh Shanker	Bank of America
Elyse Greenspan	Wells Fargo
Pablo Singzon	JPMorgan
Meyer Shields	KBW

Call transcript

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Operator

Greetings, and welcome to the BRP Group Inc.

Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure Investor your Relations. my Executive Bonnie now of Director is to host introduce Bishop, It Thank you.

begin. may You

Bonnie Bishop

Welcome to the Today's BRP Group's Second Quarter being call XXXX recorded. is Earnings Call.

certain issued information Second on the on the related are and projections may at expectations that and Form results, include XXXX note website afternoon of supplemental expectations, other Please of made quarter XX-Q are estimates financial company's today, were COVID-XX management based remarks earlier ir.baldwinriskpartners.com. available forward-looking this and which including and to as matters. today statements,

to Forward-looking statements difficult assumptions, are may differ such and uncertainties, a and those predict, of subject cause are various that from risks results to by materially and factors actual which variety contemplated to statements.

of company's to discussion which all and please a are including SEC quarter, this XX-K, on more earnings website. for our most the those the most to recent of available our filings, detailed refer factors, Form release recent For BRP

also financial the today, call certain measures. discuss company the During may non-GAAP

For Group. and and a BRP refer the earnings website on ir.baldwinriskpartners.com, the company's company's most found to Executive be I of the of call measures, of announcement to comparable Officer the GAAP to company's the closely Trevor information, have been SEC over please both at which posted now these in filings. will can supplemental reconciliation measures hand Baldwin, Chief

Trevor Baldwin

our second highlighted call. of good and quarter Bonnie, revenue and growth growth earnings afternoon, everyone us and quarter you, XX% of for for excited Thank another organic you to thank We're by record announce XXX%. total joining

our on during XX% to homeowners, flood and be into progress we both also growth XXXX execute in continued important history beyond. The Market, which at a organic as organically a the continuing believe rate, grew quarterly demonstrated MGA while contributors will segments Future growth of and Middle best company. our strong including the which of grew All public to XX%, making its multifamily, our at performance double-digit quarter

business third As a XX% expect across above the in our organic momentum business, result range. the target to growth we our of entire quarter the strong currently overall high-teens to XX%

the strategy of On industry's on front, partnering very execute with the independent to best firms. continued partnership only our we've

the RogersGray in fourth span the marks of our partnership of leverage eight a homeowners' unique all quarter Shield also Earlier Founder Group with completed the the additional England expands BRP. our largest Capital and that we this month, broadly four partnership MGA presence BRP in incremental across partnerships, bring XXX two months which of top during announced The to significantly plan efforts capabilities Future. Our and we complements include within New Group's

Including which revenue proprietary drivers broker, done Specifically, accelerate anticipate business, we all that growth track be announced for total growing future. XX record tech-enabled into our well of of Founder Shield specialty-focused deployment partnerships integrated Specialty we digital when will from same Shield BRP which profitable It find rate another million. will announced tech-enabled, believe $XX.X client brings the and BRP, year-to-date. a as rapidly growth is our firm platform. Founder Shield profitably joining and rare at growing innovation is Specialty has to we our Founder across and product our interfaces, XXXX stands meaningful the partnerships year-to-date, at of annual platform, the a

the intent broad the delivered half a we carrying performance to and letters year, through to of continues for Looking strong are in deals range have across of In sizes. significant have we're third proud pipeline very signed the as XXXX, we the and the first balance of multiple of quarter. remains of momentum into continue build, closing, our the we

at a execute home clients daily on with thank for continues to a to technology basis, convergence stakeholders building To enable ability a stakeholders high the ongoing for thoughtful level. of and of our great a for and our our on execute huge colleagues, who in amazing focus investments and you. innovate talent collective our all clients Our

been You firm's our into With Brad reason strongest are turn history. call detail I that, more results. the our will to the business our has position be over in to in QX to continues the go on it

Brad Hale

Thanks, everyone good to afternoon call. on Trevor and the

reconciling the all backdrop to XX% the particular to the segment, of or year-over-year prior improve. For is table a the loss of in second Specialty year model, $X.XX share. diluted release million combined our the adjusted which quarter that $X.X generated diluted of on our generated million was second we to XXXX second per prior year Market. $XX.X record-setting for the period. primarily new performance second the We found or in partnerships contributions income of in fully SEC. quarter other Adjusted the organic organic earnings also for revenue the XXXX, compensation, sectors hybrid margin compared growth net demonstrating delivering of EBITDA $X.XX share. Adjusted per recorded growth XX% XXX% Adjusted thanks results, A of across of compared million, as XX-Q our for with with was growth and outsized from million quarter, again and continues can period. loss basis, GAAP economic quarter quarter filed XXXX, for net to to $XXX.X growth second expenses, We onetime rose income GAAP EBITDA to and strong not net of but excludes Middle income amortization XXX% our million to from be a fully our $XX.X XX% $XX.X in only share-based strong a namely

margin anticipate M&A of versus given is related as This margin quarter, of timing XX%. EBITDA an the seasonality a we the adjusted movement business to the result year success. changing, prior XX% For of third our

over few achieve basis relative communicated XX. And X, XXX,XXX For a increased previously further adjusted XXX June XXX,XXX. of have August in our increase of in XXXX MGA, force as renters XXXXX KPIs to by the XX%. to the full March to we policies for force over as year's increased With respect the high XX to to in of policies EBITDA to end from expect XXX year, point our margin, last

XX, July on our policies in also which policies. year record another X,XXX unit to bringing available daily XXX our over on units, our eclipsing count earnings nine we call solution turned from new by million. new previous Additionally, roughly last sold a May an we've Since last is day of high for the renter total XXX,XXX policies additional XX, in on set

of late improved capital. a last $XXX $XX Term million million executed we performance May fantastic larger set to since XXXX B size in week, on and facility, a our took Finally, pricing and revolving new advantage that, now and upsize our capacity October upside strong Loan credit incremental growing while our position call to partnership better our us the turn to over cost will providing Kris. of us reducing and to I With for pipeline,

Kris Wiebeck

partnership few to of has and their hybrid Insurance everyone momentum based currently we relatively goal To with call. A closing ranks facilitated only in a short the early outsized the in BRP for trajectory This reflect on remarks When were independent our consistent list highlights on XXX Top on in Brad top how of of amount best hit that XXXX growth the and our number strategy same the organic good we Thanks, published has annual we list firms XX growth ranked recently afternoon a results. of combination Q&A. Business very strategy a just XXXX, supported powerful which our attracting XX. XX brokers, before in moment launched on been. of time, XX

and confident well in we remain uniquely our ahead, As we look XX Top to achieve goal. positioned XX

open for an all stakeholders. Operator? executing welcome have of all each that and I colleagues for job joined in last the up Lastly we'll call that, echo quarter Q&A. the our to other in and thanking and new and over importantly, amazing time, your our for the you I for us want thank colleagues With Trevor of such now

Operator

Ladies James. and Greg you. question-and-answer gentlemen, the of this question conducting comes a time, your Thank Raymond session. from [Operator Our with line we Peters question. will Instructions] with be proceed first Please Instructions] [Operator at

Greg Peters

appreciated. the for comments. of afternoon. for short relatively conference so talk the it's Most will thank companies good calls XX-plus minutes, listen we Hey, And to you

As far as…

Trevor Baldwin

good Thanks, Greg and evening.

Greg Peters

Yeah, good evening.

Is us -- -- and what's from? all give or when it perspective of three where the growth Market having exposure give Is the be when you're I some us give can another quarter this give new results second them? substantial -- rate? challenges us that us we great out third to at think you've Can quarter for laid -- one market's you obviously organic. So the the the I going it sense of clients look And is you you or think driving you But it can a the on? is is look results, in you. going quarter probably of organic at of Middle

Trevor Baldwin

Greg, Yeah, to. happy

kind more specifically. question things to we of in BRP the just the the better. ever of lay One think the franchise platform before of couple momentum across a it's our and client I resources as of So to never foundation diving kind our of have maybe strong and expertise of people been. been sector at our collective as capabilities breadth The strength has is the

consistently ultimately what's highest results the that to levels we're and leading seeing here. seen executing which we're in of So our winning we've you're at is clients, the front

building business. the talked view the organic be of Specifically, all highlighting across again we've as of was we double-digits franchise across that. there about to past, the growth kind the at growth our collective quarter four we contributors relative we in When look the to and four for have momentum segments to the our of strength organic blocks really

to helpful, to certainly start impact client unit historical the an insurance growth we you exceptional of which contraction. of X.X% with was combined growth normalizes exposure ultimately rate is XX%, and XX% of the organic the or organic industry's quarter, combined our impact underlying that result And reported the growth down rate which for so in would And compared for context and exposure is trends. the but the still

of retention when say and most minus. I'd of so organic retention of going plus of businesses. think Maybe basis up a tick driver. a other growth slightly the by I well the XXX not points our kind again meaningful you or And seen be of as growth, relative that it's two say in strength our But of would revenues that's to about client symptom drivers we've platform, impacts

continue our And meaningfully to share it market peers what's the growth our to single ability exceeds business. ultimately of onto the our write so a rate And driving generally are driver win for clients doing. platform at and organic is really business, bring BRP that new new what is that largest

Greg Peters

the That's the that forward balance going being be in. XX%, points forward? rate versus with -- continually Is I'm of curious going would that color. by [Technical great new it of XX% about in the Difficulty] XX% exposure total Is sort organic this about business? to retention think overall rating would in with X.X defined you exposure your think

Trevor Baldwin

generally so I GDP relatively it environment don't that Greg a you're to underlying it's I basis or speaking environmental headwind organic is know points. external in state that wouldn't where of of kind XXX XXX I'd points, about minus like tied XXX kind Maybe and Rate, -- expect environmental. driver factors, a plus to meaningful right? units think it's So if basis to again economic growing growth. that's because be exposure steady or XXX to

seeing in environment, certainly so positive And meaningful current trends. rate we're the

action is place. kind rate caveat through being and becoming point, trend continued and With seen riskier at the longer. world's we we've this expect certainly deescalating rate The that that I'll XXXX that said, a just quarter. positive this Now potentially of

catastrophes natural built perspective. impacting got out are value-at-risk that geographies more that a generally You've are from

set's of You've near-term exposure impact who the where like exponentially. got the in inflation. growing cyber then, things got the you've And --

You uncertainty have social and impact the longer-term the inflation with relative comes that. of that

for there's a positive we continue are healthy lot years. next to to out And there momentum couple drive, factors of the believe so going relatively that of rate

Greg Peters

makes That sense.

economy And about The the next about, your recruiting would Can XX talk given, be question have to of think the talk the second and M&A, six are I months? related how where then, we can you pipeline the we you and with employment, state to out recruiting. that, efforts are looks how around as going? today, organic

Trevor Baldwin

Absolutely.

a and example bring unique to that. an and of be perspective XX% mean, continues specialty from with really of broker businesses. or going greater much strong, casualty incredibly leverage and their we our technology insurance believe, to up $XX tools Founder great partnership have to I manner medium-sized to be are that leveraged transacting property more So Greg, pipeline the a quality doing capabilities of profitably. is broadly MGA firms know-how, that and on their to to M&A continues tech out we've our across digital And proprietary at stack, to of a seamless utmost approximately is made the They're automate so Shield growing of their on able million we're small stack basis to a and a highest the the They've for approach growth. to their revenue of capabilities the resources. meaningful be drive which really year-to-date built business, in than very similar technology Future, that we

we And think way recruiting there. about about to manner. in of quality feel standpoint, so, that's pipeline. a excited we're a really, good long-winded leaning continue the I saying And we're of From the heavy activity our really a

to just goes client of colleagues strength well. franchise and is the all-time And at but beyond that as wins, high. an our earlier, importantly goes execution mentioned I've as So,

through attract so ultimate of has us product professionals, We've new ability we've And the than July to meaningful December. of the year better. range talented total last made expertise for in midpoint all by never and since the we lines team into added hires five is across size over on XXX hires And new of organic XXXX. a our really areas recruiting a the basis our times been of more which team an of margin this

our deeply that So momentum really talent in seeing platform, across And we're there. and the all four investing segments. excited we're the about across we're success

Greg Peters

net looking cash I final activities of at by or Brad fast detailed as operating flows. provided your grow the didn't The was for, as cash operating little And or Great. the results. revenue statement your question just Kris,

but lower reporting. in than little the So other you're on embedded going of grew, I'm a indicators will growth wondering, some you if what's that, that's that -- bit the making rate still

Brad Hale

of previously AR net fact free hold so in that cash and the the change Hi as flow because we've we Greg, discussed fiduciary evaluate cash. we of AP,

free AP, actually cash $XX in get if you prior of million So generation you back year. AR out the and flow

$XX on year at basis. times number this million So have we that four year-over-year a

Greg Peters

for answers. Thanks Got your it.

Brad Hale

Greg. Thanks,

Operator

Our Bank question. the with your next America. line question comes Josh from with Please Shanker proceed of of

Josh Shanker

some maybe Yes. much what thinking do Congratulations of the it I'm ex trying XX%. for the Future? to Thank taking math question. quarter. can doing that MGA -- run I'm doing through organic on very wrong. I'm Am maybe you I'm and was you my But not growth I correctly?

Trevor Baldwin

is specifically disclosed Future. which Market double-digit, So four across What strength were I an organic Josh, of seeing the as XX% relative we share example just growth of Middle haven't business. I our the all highlights would for ex-MGA our the was segments think quarter we're and

Josh Shanker

in I'm Future very trying was me some good non-MGA you guess, comparison to on trying It schlock because growth I'm XQ. quarter what I had this maybe the that a So, of that seems math make it. business guys have and the to I'm to doing

in some been see the able weren't to you Just talk difference quarter. I between Certainly reach a the was to of while. this quarter trying we the the clients should businesses, with to that guess to how able on sort inform and what's Medicare who about out reopening growth figure probably out qualitative for quarter? the the going of this organic going quarter, what economy Can we on about like think differences should you've third last

Trevor Baldwin

do that, Yes. Josh. Happy to

kind kind much activity good and about to certainly from and in clients BRP broadly and and people making to to relative the a being say think frankly of recovering willing changes economies more QX we resurgent So QX, of our way. open in as environmental I'd and changes and it's differences general a reopening meeting business

organic a relative of about of positive. is the X.X%. to the that plus and all I'd impact think activity the So you impact of when And our economic mentioned I was exposure rate earlier as think Greg combined growth on

competitors share So organic driving real from the while take performance is that was results. our ability business and ultimately the tailwind business story growth to the that's the new driving a the our underlying of

the As as into forward expect good a of as our organic of across as growth to quarter we I and continuing execute momentum and beyond. third in for year platform high-teens mentioned and balance look the XXXX forward we the looking the earlier strength remarks organic feel really we this to about and think had result growth my about

Josh Shanker

between organic the easy Is quarter third the difference actual in projection XXXX? the XQ from XQ comps

Trevor Baldwin

XQ the think our organic was XXXX, say sure look I'd as XX% there's Well, necessarily comp. in so an of growth so easy I XQ harder. of slightly not think I'm XX% was for XXXX that I'd variant choppiness get bit little openness Delta some front ability clients. and uncertainty and and could a and folks in create just recovery and undoubtedly resurges to prospects that of as more our the

see that think our result of amount that that business the the I the the in so to we're a balance to will remains, and while we're uncertainty as conservatism that of continuing year. leaning carry an some And you're into forward projecting of appropriate of the strength momentum seeing relative

Josh Shanker

can MGA there guys net of or the always new the so for step-up. partners one to growth next new I accelerates a the that net guess quarter And or know tout growth. here? recruitment I on business How we but Future customer -- don't expect if going? rate channel it be is customer only are for matters And you channel any maybe new the big do decelerate huge partners any now can from it it's

Trevor Baldwin

Yes.

relative recent the look ever pipeline firm level. we the new business record new When strong a new broken new month earlier of by as to sold the perform in continues Specific took subsequently record technology approximately to business policies MGA record partners to of it's in policies that history Future for a trends was a in the with at XX% as of at in we've as month policy to higher MGA channel the as that QX and was high the was new our transaction June month being relative really one the quarter July. that's been in HOX the August. of a history a So live got then issued this recently that

to strong there. momentum be So continues very

technology invested product expand breadth flood. and to to our addition and in a capabilities we've of that new deeply across homeowners lines including In talent

a look homeowner as out to on national brought billion-plus represents and recently we market $XXX who's launching homeowners XX-state Specifically, building gentleman Patel, a that our the Naimish the build capable solution to tackle spearheading US. we across quickly of a ambitions that team

about momentum. So we're the excited

I think trajectory we from relative and in have that would what to we've prior update continue growth the to feel discussed good quarters about that not we look

Josh Shanker

Thank much. you very

Trevor Baldwin

Thanks, Josh

Operator

Our question. proceed line question your Please the from Elyse comes with next with Greenspan of Fargo. Wells

Elyse Greenspan

Good thanks. Hi, the on first acquisition evening. side. question My

So talk certainty million announced year in this of also around guys $XXX lot far bullish year. this sound was guys under goal just there's to of I $XXX the $XX there's end you when you on about so and the reform towards momentum of tax million. know a what's are pipeline. million The more

us could So sense, give will year stack you to think the a that if how just you guidance. relative up

Trevor Baldwin

evening, thanks. Elyse. Yes Good

We continue good $XXX to the year. million $XXX that to about feel target for really million

Elyse Greenspan

think more between more the or maybe even Do right deals to think in Okay. in or will QX now we're be it two? Do when you start you August relative -- be QX-heavy it come to will right?

Trevor Baldwin

lumpiness to it has timing Yes. Look some Elyse. M&A

be would QX late what the probably tell I is the announcements effective will but occurring is And most QX. that dates like you for of likely transaction so, in deals

Elyse Greenspan

want the growth just in about that's And on of follow then questions. terms just one helpful. organic of prior to Okay I up thinking

guidance teens above the well was guys which that are this came you also that. So in the third quarter for quarter, for in high looking

conservatism to where conservatism higher recognizing it's you the -- So level like think uncertainty some Delta economy. July a than it on in slowing that with your that's and is or business just embedded you sounds sense there's there cause growth? an variant and seen, normally that have you organic would anything more of guide in of the of are things just Or

Trevor Baldwin

Yes.

of highlight would above I teens one, high that Elyse, certainly XX% is to long-term range think XX%. I our

was fact think to rebound there. relative about signal we a of that carrying bit in reopens I like variant. a in little there's think to catch-up potential forward And certainly a feel of feel really and way, conservatism there's should the and But world the deceleration then the of choppiness kind business. QX, certainly, little good a there an bit and the Delta I balance uncertainty that result of year that of a as appropriate the there's and We amount some a the the beyond. of momentum that of no the so

Elyse Greenspan

-- would keeping Is then just you it came still second of the And some you said have in kind know better think margin Okay. year? Can guide. in full-year has the so in investment half the you're I a us been second growth than expected the quarter you it that through of the side, more More of And what's the driving on given full-year half the just sense strong? second sounds the in help given like just margins guide. with M&A. seasonality

Brad Hale

organic in also communicated Elyse, into the future, the guide we're drive business to the to half of us in the reinvestments end is allowed of high that Yes. multiple heavier the business, the the we're But previously lean our into first and plan year revenue why able so range. of the which range. growth not total to expanding has our well ahead namely outperformance to

Trevor Baldwin

a with of Elyse about that think a result normal is finer you keeping we're Yes. doing the And point to you bit up investments of the course. like into -- leaning a for the put growth little business on that shouldn't being

to investments in into be we'll and we're we lines able that manner. with launch capabilities growth solutions the, and of innovative future being product meaningful about new really of but leaning kind drive You areas a should think believe

an up to across that. a Patel and end and Naimish homeowners nearly a year inside of XX-state team as so And example great by going initiatives solution scale the a team leading ambitions the We're his XX-person MGA of homeowners example. the up being our

Elyse Greenspan

Okay. That’s the helpful. Thanks color. for

Trevor Baldwin

Thanks, Elyse.

Operator

Our Singzon the of with Please next question from comes proceed Pablo JPMorgan. with line your question.

Pablo Singzon

Thanks. Hi.

just question you balance to enough then I give partnerships if thinking for latest the mix XXXX. and fund not, thoughts is, you first might to on had can the that's debt, fund between your and incremental you in And in need? recent about The are cash equity movements whether debt adjusted how then, cash

Trevor Baldwin

this is Pablo, Yes. Trevor.

me were Let to the the ask to then, talking some you partnership specific tackle and funding metrics Brad of about. I'll point

we in our numbers, and to grow targeted So And to M&A, that. so ability ability And to cash based relative our continues capital to pipeline free we our leverage the and the cash that feel balance evaluate on have good about the as exceed available fund extent those on flow business to for does and to options. year EBITDA debt our sheet. M&A we'll our scale certainly and the

capital So, they options about we'll we sense. strategy to continue make to partnership executing the feel evaluate and as continue future, good into our on

Brad Hale

Pablo. Yes,

$XXX cash So million. roughly the as end of balance quarter the of was

saw look, in structure we're as partnership as continues us As that and our capital assist our in led strategy. last TLB the constantly May to week, to well upsize us you revolver disclose of the the which vigilant about

Pablo Singzon

comps last it sequentially and seems quarter given last like fourth -- get organic could the at thinking when growth in you're you Like business Delta on and comp a year as the just, bit the quarter I just momentum speak that assume like surprising the quarter down other the you -- then, strongest easier how and from bit. right here from I if look if right? what caveats And expect hear right? was it interested actually quarter comp seems the just to to growth, I Market, that way how business And the year last was year sustain right? remember, think be the the if business would your recognizing your for is same year So amid guess But Middle suggesting that slow just the it. should sort Market growth last if slowing And versus segments Middle even had at be to actually in Middle results last right economy to might of why Got reasonable least of obviously negative -- Market second was second for the putting ask you're the right? that even question another So just given in and stronger can I logically you just variant a I'd a see guess momentum guess I second Trevor, how half continues developed. it you evolve. about year year for grow comps it because

Trevor Baldwin

Yes.

QX. had So Delta done have a Pablo, With been we real point, QX, about in clients I that growth we organic for in able all execute. uncertainty said, the there was that growth business and little our reopened feel organic kind and is being a our world really variant. ability of feel some there's momentum mentioned good and professionals. rebound as really our to from prospects with get And dialogue the healthy to But lot is as any the outsized with in the a this of appropriate At quarter. for good the in third the to to of thoughts bit providing specificity and effect been and about conversation earlier, with high-teens a not choppiness our we're and conservatism relative

Pablo Singzon

Got it. the one me. for And then, last

I I just first a is, confirm, Founder Trevor. question I of to you if the -- ventures one want Shield, understood new I guess So two about right? yours correctly Just

to firms. commercial just But from market? you're for plans expand So like saying it seems like small and seems broader today what you Founder the start-ups Shield, market are their it there are main it to VC-backed

Trevor Baldwin

exactly That's Pablo. Yes. right,

Pablo Singzon

million Millennial all on asking an second think If obviously like not number this -- I homeowners $XX to question new could my sense hit for right. correctly, and but... flood of same of Okay, revenues ventures. be? topic Any Like then, do probably I I'm the exact big under math year. And close how or

Trevor Baldwin

This year or future? into the

Pablo Singzon

homeowners take relationship recognizing the Millennial, to is doing homeowners Like apply a of it recognizing to a you're In be market Just a the much much rollout, would right? is reasonable XX-state that sort bigger and it you're doing with that right? And future? bigger what market?

Trevor Baldwin

Yes.

think the it, I to that's exactly about Pablo. think way

to about we've renters As goals renters support strategies the feel homeowners and TAM of tech multiples tech and The opportunity. that around developed that like meaningful leveraging massive able coming our particular here, to think set. it's business We it's in go-to-market ambitions what be really big the market for a we our that built is, deploying a that bench is our we is we're think across and to already of product in experts the line. marketplace. years the MGA out and make about going building a into progress building and We're

Pablo Singzon

All luck right. and rest the for of answers the for good Thanks year.

Trevor Baldwin

Pablo. Thanks,

Operator

next Our Instructions] Shields from line proceed comes question. KBW. with [Operator with question your the Please Meyer of

Meyer Shields

Thanks. Great. small couple A of really ones.

can catch EBITDA I quarter hoping I to the timing details Brad was didn't review First, the that. of mentioned, think, providing I an outlook get adjusted element I him the third margin. for when

Brad Hale

Yes.

can communicating and in So to in years. revenue business the relation as we phasing our what change are result timing of given a mix that the change of is margins the prior of recognition year-to-year M&A

expect we XX% quarter base margin third this So for what to third expectation quarter last communicated of EBITDA set quarter. a we to as the XX% to trying third were this for versus and

Trevor Baldwin

that the at of phasing do as has prior the in anything result it of internally a occurred kind business. Meyer, as changing of revenue of It's to M&A the result purely year a the period. And with nothing

Meyer Shields

in acquisitions partnerships understood us revenue what growth I don't growth you assume BRP in to number. the that I That's to impacted organic for revenues that the I wanted include that the same did reasonable it know no organic sure timing Is to that extent was issues. make the Yes. that quarter? there in accelerated recent legacy

Trevor Baldwin

great question. Meyer, Yes,

on owned organic on to meet first partner the you I is calculation earnings not the Page total you included for So, performance and to new I would at business, of we yet very that there are like-for-like IR XX/XX/XXXX. of And bottom in of highlight that is our on the that the revenue which key firms thing put supplement including that the growth be new deck, chart, to this of a basis. tell point exceed and of X our see overall the And would you'll of new slide should of expectations, our partners investors up performance in a that metrics really our website. as continues performance businesses

you accounting you'll accelerated X. of the at sheets what is point a as acquisition I basis so year-to-date, at into total year-over-year is quarter if look caused I you would XX%. Note the earnings And of point And booked there balance to see thing opening you'll on the would rate $XX But that And if other of sub revenue a business the for XX%. it's and approximately result a that out a was that revenue things timing to to recall get from QX call, basically nature. million the

that I and which in is business, And that so of fact outsized think XX%, levels new partner similar performing is growth you the excess frankly the normalize that performance levels. year-to-date overall of if including firms for highlights at really the number

Meyer Shields

that line bottom a just think With there that is growth new promotes regard That Shield the it actually [ph], can of tremendously pointing helpful. Yes. of Cover BRP commercial whether or margins? a we as and faster new or way Thank Okay. adopt Shield all for you elements should businesses platform, within to Cover higher other are that of go-to-market or out. brokerage

Trevor Baldwin

result a only has Founder not in they've small growing significant their to VC a to rapidly that them and technology and of a win into to built focus start-up profitable and methodology Shield enables as insurance their stack enabled that them on successful build a that's the answer clients, go-to-market But of they're using overall process. and out delightful high-growth share Meyer. that to strategy, The clientele. procurement and addition is highly unique innovation growth yes, experiences developed

what going pouring profitability And client our focused tech to across for more but innovation already, to they're and on so to that drive their platform, their doing all accelerate capital and small really clients. what our leveraging well experience we're better business business not be of then is into only

of tech. they've through already is kind directly product In that that, built proprietary their addition connected to in

products in needs. truly more MGA, continue layered delivering bespoke to build we've their proprietary so the solutions effective that be out able And to to clients with meet our that and to

about it. very excited we're So

Meyer Shields

I least any productive takes recruits it how Okay. at are And last of then to question, long Is there year-to-date client-facing? them that way promise. be ballparking, the those of

Trevor Baldwin

from longer It's a and cycle, different sale generally is side kind of folks, team pretty our riding answers highly we're for coming productive the to a the experienced new of different competitive parts we of of in and more in out novo examples them, recruiting Market can Middle up those of mentors kind of plugging have folks all highly technical strategy example. our but that in it's running longer where with They're months, kind and day our ground that business, kind Meyer. business are with so and of sales in six that becoming with I'd homeowner business, into We're are organizations say, we're doing of that the folks one of that highly of we're there's are expertise in as along running de and that's or tend quickly. an parts a hit experienced. building that bringing lot a recruiting

the not in general, it's of range on But our the months So a role in and measured depending it's part business. years.

Meyer Shields

Okay. so Perfect. Thank you much.

Trevor Baldwin

Meyer. Thanks,

Operator

remarks. for further to the management no queue. closing the like questions hand I'd call are There to back in

Trevor Baldwin

franchise us call. our the position They us incredible this a have Thank better. been And put and of second evening you. and provide I our never platform, and our strength huge you quarter to reiterate thank in We our earnings just appreciate everybody to has and of for joining this momentum colleagues. want all

to we and care. everyone look soon. you, thank Take So forward seeing

Operator

you gentlemen, teleconference. this Thank Ladies today's for does conclude and your participation.

You may your day. have this a time, disconnect lines and at wonderful

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