Artificial Intelligence

Goosehead Insurance, Inc. Announces Second Quarter 2021 Results and Will Demonstrate Digital Agent Platform

Published

3 years ago

July 28, 2021

–   Total Revenue Growth of 28% and Core Revenue Growth of 40% over the Prior Year Period –
– Total Written Premium Growth of 46% over the Prior Year Period   –
–   Total Franchises and Corporate Sales Headcount Grew 59% and 43%, Respectively   –
–   Record High Client Retention of 89%   –
– Policies in Force Growth of 48% over the Prior Year Period –
– Special Dividend of $60 Million Declared –

WESTLAKE, Texas, July 28, 2021 (GLOBE NEWSWIRE) — Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2021.

Second Quarter 2021 Highlights

Total Revenues grew organically 28% to $38.2 million in the second quarter of 2021
Core Revenues* of $34.7 million increased 40% over the prior year period
Second quarter net income of $3.1 million; net income attributable to Goosehead Insurance, Inc. of $1.5 million or $0.08 per basic share and $0.07 per diluted share
Second quarter Adjusted EBITDA* of $6.8 million.
Second quarter Adjusted EPS* of $0.13 per share.
Total written premiums placed increased 46% from the prior-year period to $399 million
Policies in force grew 48% from the prior-year period to 872,000
Corporate sales headcount of 452 was up 43% year-over-year
Total franchises increased 59% compared to the prior year period to 1,801; operating franchises grew 47% compared to the prior-year period to 1,072

^*Core Revenue, Adjusted EPS, and Adjusted EBITDA are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EBITDA to net income and Adjusted EPS to basic earnings per share, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

“Our second quarter of 2021 saw continued momentum in our business and further reinforces our formidable and expanding competitive moat,” stated Mark E. Jones, Chairman and CEO. “We achieved these strong growth levels while continuing to deliver an unmatched client experience as evidenced by our 92 net promoter score which drove a record level of client retention of 89%. We are very excited to launch our Digital Agent Platform in the coming weeks. We believe this innovative proprietary platform will be highly differentiated from any competitive offering in the marketplace, providing an effortless insurance shopping experience that leverages artificial intelligence driven by our accumulated experience of millions of quotes prepared by our professional agents. With as little as three data points – name, address, and date of birth – clients will be able to generate accurate home and auto quotes online from multiple carriers in less than 60 seconds. We are excited to demonstrate this platform during our Q2 results call this afternoon. We believe this powerful technology will be accretive to revenue over time, strengthen our existing go-to-market strategy through lenders, realtors and client referrals, and enhance the value proposition for our clients, agents and franchises.”

Second Quarter 2021 Results
For the second quarter of 2021, revenues were $38.2 million, an increase of 28% compared to the corresponding period in 2020. Core Revenues, a non-GAAP measure which excludes contingent commissions and initial franchise fees, were $34.7 million, a 40% increase from $24.7 million in the prior year period. Core Revenues are the most reliable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions, and Renewal Royalty Fees. Core Revenue growth was driven by growth in the number of corporate agents and operating franchises (which were driven by investments in our recruiting team in 2019 and prior), productivity improvements in the Franchise Channel, and increasingly high levels of retention of 89%. The Company grew total written premiums, which we consider to be the leading indicator of future revenue growth, by 46% in the second quarter.

Total operating expenses for the second quarter of 2021 were $34.4 million, up 54% from $22.3 million in the prior-year period. The increase from the prior period was due to larger employee compensation and benefits expenses related to ongoing investments in our corporate agents, agent support team, service agents, and information systems developers. Also, we continued to expand our real estate footprint with additional office openings, plus additional investments in our technology roadmap, including finalizing our Digital Agent Platform and enhancements to our client-facing portal, which grew the Company’s general and administrative expenses for the quarter.

Net income for the second quarter of 2021 was $3.1 million. We expect to continue to experience seasonality in our earnings throughout each year due to insurance sales patterns and recognition of contingent commissions, with the bulk of contingents realized in the fourth quarter. Net income attributable to Goosehead Insurance, Inc. for the second quarter of 2021 was $1.5 million, or $0.08 per basic share and $0.07 per diluted share. Total Adjusted EBITDA was $6.8 million for the second quarter of 2021. Adjusted EPS for the second quarter of 2021, which excludes equity-based compensation, was $0.13 per share.

Liquidity and Capital Resources
During the second quarter, the Company generated $12.1 million of operating cash flow, which brought the balance of cash and cash equivalents to $35.0 million as of June 30, 2021. We also had an unused line of credit of $19.7 million at quarter end. Total outstanding term note payable balance was $77.0 million as of June 30, 2021.

On July 21, 2021, the company refinanced its $25 million revolving credit facility and $77 million term note payable to a $50 million revolving facility, which will be partially drawn in advance of the dividend payment, and a $100 million term note payable agreement.

Special Dividend
Goosehead also announced today that Goosehead Financial, LLC declared a special dividend of $60 million payable in cash on August 23, 2021 to holders of LLC Units of record, including Goosehead Insurance, Inc., as of the close of business on August 9, 2021. In addition, Goosehead Insurance announced today that its Board of Directors declared a special cash dividend of an estimated $1.63 per share on the Company’s Class A common stock.

2021 Outlook
Based on our experience to date, the Company is reiterating its full-year 2021 outlook with respect to total written premiums and revenue:

Total written premiums placed for 2021 are expected to be between $1.50 billion and $1.56 billion, representing organic growth of 40% on the low end of the range to 45% on the high end of the range.
Total revenues for 2021 are expected to be between $146 million and $156 million, representing organic growth of 25% on the low end of the range to 33% on the high end of the range.

Conference Call Information
Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.

The dial-in number for the conference call is (855) 327-6837 (toll-free) or (631) 891-4304 (international). Please dial the number 10 minutes prior to the scheduled start time.

In addition, a live webcast of the conference call will also be available on Goosehead’s investor relations website at http://ir.gooseheadinsurance.com.

A webcast replay of the call will be available at http://ir.gooseheadinsurance.com for one year following the call.

About Goosehead
Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 140 insurance companies that underwrite personal lines and small commercial lines risks, and its operations include a network of eleven corporate sales offices and over 1,801 operating and contracted franchise locations. For more information, please visit gooseheadinsurance.com.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the economic effects of the COVID-19 pandemic, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2020 and in Goosehead’s other filings with the SEC, which are available free of charge on the Securities Exchange Commission’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

Contacts
Investor Contact:
Dan Farrell
Goosehead Insurance – VP Capital Markets
Phone: (214) 838-5290
Email: [email protected]; [email protected];

PR Contact:
Mission North for Goosehead Insurance
Email: [email protected]; [email protected]

Goosehead Insurance, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Revenues:
Commissions and agency fees	$	21,053		$	18,248		$	38,587		$	30,059
Franchise revenues	16,841			11,484			30,274			19,929
Interest income	279			192			540			361
Total revenues	38,173			29,924			69,401			50,349
Operating Expenses:
Employee compensation and benefits	22,475			15,904			43,784			29,407
General and administrative expenses	10,134			5,364			19,408			11,236
Bad debts	646			319			1,093			628
Depreciation and amortization	1,132			712			2,132			1,252
Total operating expenses	34,387			22,299			66,417			42,523
Income from operations	3,786			7,625			2,984			7,826
Other Income (Expense):
Other income	119			—			139			66
Interest expense	(546		)	(479		)	(1,147		)	(1,083		)
Income before taxes	3,359			7,146			1,976			6,809
Tax expense (benefit)	223			(240		)	(71		)	(281		)
Net income	3,136			7,386			2,047			7,090
Less: net income attributable to non-controlling interests	1,649			4,007			956			3,867
Net income attributable to Goosehead Insurance, Inc.	$	1,487		$	3,379		$	1,091		$	3,223
Earnings per share:
Basic	$	0.08		$	0.21		$	0.06		$	0.20
Diluted	$	0.07		$	0.19		$	0.05		$	0.18
Weighted average shares of Class A common stock outstanding
Basic	18,774			16,458			18,574			16,011
Diluted	20,367			17,947			20,251			17,432

Goosehead Insurance, Inc.
Consolidated Supplemental Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Revenues:
Core Revenue:
Renewal Commissions⁽¹⁾	$	10,310		$	7,718		$	18,067		$	13,451
Renewal Royalty Fees⁽²⁾	11,670			7,903			20,416			13,289
New Business Commissions⁽¹⁾	5,944			4,329			10,560			7,662
New Business Royalty Fees⁽²⁾	3,680			2,599			6,837			4,647
Agency Fees⁽¹⁾	3,105			2,185			5,529			3,871
Total Core Revenue	34,709			24,734			61,409			42,920
Cost Recovery Revenue:
Initial Franchise Fees⁽²⁾	1,458			901			2,890			1,879
Interest Income	279			192			540			361
Total Cost Recovery Revenue	1,737			1,093			3,430			2,240
Ancillary Revenue:
Contingent Commissions⁽¹⁾	1,694			4,016			4,431			5,075
Other Income⁽²⁾	33			81			131			114
Total Ancillary Revenue	1,727			4,097			4,562			5,189
Total Revenues	38,173			29,924			69,401			50,349
Operating Expenses:
Employee compensation and benefits	22,475			15,904			43,784			29,407
General and administrative expenses	10,134			5,364			19,408			11,236
Bad debts	646			319			1,093			628
Depreciation and amortization	1,132			712			2,132			1,252
Total operating expenses	34,387			22,299			66,417			42,523
Income from operations	3,786			7,625			2,984			7,826
Other Income (Expense):
Other income	119			—			139			66
Interest expense	(546		)	(479		)	(1,147		)	(1,083		)
Income before taxes	3,359			7,146			1,976			6,809
Tax (benefit) expense	223			(240		)	(71		)	(281		)
Net Income	3,136			7,386			2,047			7,090
Less: net income attributable to non-controlling interests	1,649			4,007			956			3,867
Net Income attributable to Goosehead Insurance Inc.	$	1,487		$	3,379		$	1,091		$	3,223

Earnings per share:
Basic	$	0.08		0.21			0.06			0.20
Diluted	$	0.07		0.19			0.05			0.18
Weighted average shares of Class A common stock outstanding
Basic	18,774			16,458			18,574			16,011
Diluted	20,367			17,947			20,251			17,432

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2021 and 2020.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Income are included in “Franchise revenues” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2021 and 2020.

Goosehead Insurance, Inc.
Segment Information
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended June 30, 2021
	Franchise Channel			Corporate Channel			Other			Total
Revenues:
Core Revenue:
Renewal Commissions⁽¹⁾	$	—		$	10,310		$	—		$	10,310
Renewal Royalty Fees⁽²⁾	11,670			—			—			11,670
New Business Commissions⁽¹⁾	—			5,944			—			5,944
New Business Royalty Fees⁽²⁾	3,680			—			—			3,680
Agency Fees⁽¹⁾	—			3,105			—			3,105
Total Core Revenue	15,350			19,359			—			34,709
Cost Recovery Revenue:
Initial Franchise Fees⁽²⁾	1,458			—			—			1,458
Interest Income	279			—			—			279
Total Cost Recovery Revenue	1,737			—			—			1,737
Ancillary Revenue:
Contingent Commissions⁽¹⁾	1,136			558			—			1,694
Other Income⁽²⁾	33			—			—			33
Total Ancillary Revenue	1,169			558			—			1,727
Total Revenues	18,256			19,917			—			38,173
Operating expenses:
Employee compensation and benefits, excluding equity based compensation	8,020			12,603			—			20,623
General and administrative expenses	4,927			4,402			805			10,134
Bad debts	135			511			—			646
Total Operating Expenses	13,082			17,516			805			31,403
Adjusted EBITDA	5,174			2,401			(805		)	6,770
Other income (expense)	11			108			—			119
Equity based compensation	—			—			(1,852		)	(1,852		)
Interest expense	—			—			(546		)	(546		)
Depreciation and amortization	(728		)	(404		)	—			(1,132		)
Taxes	—			—			(223		)	(223		)
Net income	$	4,457		$	2,105		$	(3,426	)	$	3,136
June 30, 2021:
Total Assets	$	94,489		$	44,332		$	99,182		$	238,003

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the three months ended June 30, 2021 and 2020.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Income are included in “Franchise revenues” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the three months ended June 30, 2021 and 2020.

	Six Months Ended June 30, 2021
	Franchise Channel			Corporate Channel			Other			Total
Revenues:
Core Revenue:
Renewal Commissions⁽¹⁾	$	—		$	18,067		$	—		$	18,067
Renewal Royalty Fees⁽²⁾	20,416			—			—			20,416
New Business Commissions⁽¹⁾	—			10,560			—			10,560
New Business Royalty Fees⁽²⁾	6,837			—			—			6,837
Agency Fees⁽¹⁾	—			5,529			—			5,529
Total Core Revenue	27,253			34,156			—			61,409
Cost Recovery Revenue:
Initial Franchise Fees⁽²⁾	2,890			—			—			2,890
Interest Income	540			—			—			540
Total Cost Recovery Revenue	3,430			—			—			3,430
Ancillary Revenue:
Contingent Commissions⁽¹⁾	3,252			1,179			—			4,431
Other Income⁽²⁾	131			—			—			131
Total Ancillary Revenue	3,383			1,179			—			4,562
Total Revenues	34,066			35,335			—			69,401
Operating expenses:
Employee compensation and benefits, excluding equity based compensation	15,589			24,402			—			39,991
General and administrative expenses	9,140			8,908			1,360			19,408
Bad debts	296			797			—			1,093
Total Operating Expenses	25,025			34,107			1,360			60,492
Adjusted EBITDA	9,041			1,228			(1,360		)	8,909
Other income	31			108			—			139
Equity based compensation	—			—			(3,793		)	(3,793		)
Interest expense	—			—			(1,147		)	(1,147		)
Depreciation and amortization	(1,375		)	(757		)	—			(2,132		)
Income tax benefit	—			—			71			71
Net income	$	7,697		$	579		$	(6,229	)	$	2,047
June 30, 2021:
Total Assets	$	94,489		$	44,332		$	99,182		$	238,003

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the six months ended June 30, 2021 and 2020.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Income are included in “Franchise revenues” as shown on the Consolidated statements of operations within Goosehead’s Form 10-Q for the six months ended June 30, 2021 and 2020.

Goosehead Insurance, Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)

	June 30,			December 31,
	2021			2020
Assets
Current Assets:
Cash and cash equivalents	$	34,975		$	24,913
Restricted cash	1,551			1,323
Commissions and agency fees receivable, net	6,063			18,604
Receivable from franchisees, net	2,724			2,100
Prepaid expenses	7,394			3,705
Total current assets	52,707			50,645
Receivable from franchisees, net of current portion	23,354			18,179
Property and equipment, net of accumulated depreciation	22,618			16,650
Right-of-use asset	34,207			22,513
Intangible assets, net of accumulated amortization	1,756			549
Deferred income taxes, net	98,114			73,363
Other assets	5,247			3,938
Total assets	$	238,003		$	185,837
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued expenses	$	7,884		$	8,101
Premiums payable	1,551			1,323
Lease liability	4,360			3,203
Contract liabilities	5,189			4,233
Note payable	5,000			3,500
Total current liabilities	23,984			20,360
Lease liability, net of current portion	48,549			32,933
Note payable, net of current portion	76,539			79,408
Contract liabilities, net of current portion	36,200			29,968
Liabilities under tax receivable agreement, net of current portion	80,232			61,572
Total liabilities	265,504			224,241
Class A common stock, $0.01 par value per share – 300,000 shares authorized, 19,209 shares issued and outstanding as of June 30, 2021, 18,304 shares issued and outstanding as of December 31, 2020	191			183
Class B common stock, $0.01 par value per share – 50,000 shares authorized, 17,586 issued and outstanding as of June 30, 2021, 18,447 shares issued and outstanding as of December 31, 2020	176			184
Additional paid in capital	36,579			29,371
Accumulated deficit	(33,527		)	(34,614		)
Total stockholders’ equity	3,419			(4,876		)
Non-controlling interests	(30,920		)	(33,528		)
Total equity	(27,501		)	(38,404		)
Total liabilities and equity	$	238,003		$	185,837

Goosehead Insurance, Inc.
Reconciliation Non-GAAP Measures to GAAP

This release includes Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). The Company refers to these measures as “non-GAAP financial measures.” The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses Core Revenue, Cost Recovery Revenue, Ancillary Revenue, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS for business planning purposes and in measuring its performance relative to that of its competitors.

These non-GAAP financial measures are defined by the Company as follows:

“Core Revenue” is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.
“Cost Recovery Revenue” is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.
“Ancillary Revenue” is a supplemental measure of our performance and includes Contingent Commissions and Other Income. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.
“Adjusted EBITDA” is a supplemental measure of the Company’s performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.
“Adjusted EBITDA Margin” is Adjusted EBITDA as defined above, divided by total revenue excluding other non-operating items. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
“Adjusted EPS” is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.

While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company’s industry, may calculate such measures differently, which reduces their usefulness as comparative measures.

The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Total Revenues	$	38,173	$	29,924	$	69,401	$	50,349

Core Revenue:
Renewal Commissions⁽¹⁾	$	10,310	$	7,718	$	18,067	$	13,451
Renewal Royalty Fees⁽²⁾	11,670		7,903		20,416		13,289
New Business Commissions⁽¹⁾	5,944		4,329		10,560		7,662
New Business Royalty Fees⁽²⁾	3,680		2,599		6,837		4,647
Agency Fees⁽¹⁾	3,105		2,185		5,529		3,871
Total Core Revenue	34,709		24,734		61,409		42,920
Cost Recovery Revenue:
Initial Franchise Fees⁽²⁾	1,458		901		2,890		1,879
Interest Income	279		192		540		361
Total Cost Recovery Revenue	1,737		1,093		3,430		2,240
Ancillary Revenue:
Contingent Commissions⁽¹⁾	1,694		4,016		4,431		5,075
Other Income⁽²⁾	33		81		131		114
Total Ancillary Revenue	1,727		4,097		4,562		5,189
Total Revenues	$	38,173	$	29,924	$	69,401	$	50,349

(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Consolidated statements of operations.
(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Income are included in “Franchise revenues” as shown on the Consolidated statements of operations.

The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,								Six Months Ended June 30,
	2021				2020				2021				2020
Net income (loss)	$	3,136			$	7,386			$	2,047			$	7,090
Interest expense	546				479				1,147				1,083
Depreciation and amortization	1,132				712				2,132				1,252
Tax expense (benefit)	223				(240		)		(71		)		(281		)
Equity-based compensation	1,852				1,416				3,793				1,914
Other income (expense)	(119		)		—				(139		)		(66		)
Adjusted EBITDA	$	6,770			$	9,753			$	8,909			$	10,992
Adjusted EBITDA Margin⁽¹⁾	18			%	33			%	13			%	22			%

(1) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($6,770 / 38,173) and ($9,753 / 29,924) three months ended June 30, 2021 and 2020. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($8,909 / 69,401) and ($10,992 / 50,349) six months ended June 30, 2021 and 2020.

The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and six months ended June 30, 2021 and 2020 (in thousands, except per share amounts). Note that totals may not sum due to rounding:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Earnings per share – basic (GAAP)	$	0.08	$	0.21	$	0.06	$	0.20
Add: equity-based compensation⁽¹⁾	0.05		0.04		0.10		0.05
Adjusted EPS (non-GAAP)	$	0.13	$	0.25	$	0.16	$	0.25

(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [ $1.9 million / ( 18.8 million + 18.0 million )] for the three months ended June 30, 2021 and [ $1.4 million / ( 16.5 million + 20.0 million )] for the three months ended June 30, 2020. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [ $3.8 million / ( 18.6 million + 18.2 million )] for the six months ended June 30, 2021 and [ $1.9 million / ( 16.0 million + 20.4 million )] for the six months ended June 30, 2020.

Goosehead Insurance, Inc.
Key Performance Indicators

	June 30, 2021			December 31, 2020			June 30, 2020
Corporate sales agents < 1 year tenured	266			207			182
Corporate sales agents > 1 year tenured	186			157			135
Operating franchises < 1 year tenured (TX)	53			43			26
Operating franchises > 1 year tenured (TX)	196			185			182
Operating franchises < 1 year tenured (Non-TX)	353			285			235
Operating franchises > 1 year tenured (Non-TX)	470			378			287
Policies in Force	872,000			713,000			590,000
Client Retention	89		%	88		%	88		%
Premium Retention	90		%	89		%	89		%
QTD Written Premium (in thousands)	$	398,920		$	285,209		$	273,693
Net Promoter Score (“NPS”)	92			92			90

Related Topics:AI Artificial Intelligence Machine learning

Up Next

Mercury introduces industry-first heterogeneous processing module with integrated artificial intelligence functionality

Don't Miss

SAW (Surface Acoustic Wave) Filter Market to Outstrip $2,826.81 Million by 2028 Growing Sturdy at 8.3% CAGR – COVID-19 Impact and Global Analysis by TheInsightPartners.com

GlobeNewswire

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Artificial Intelligence

Data Center Chip Market Size was Valued at USD 11.7 Billion in 2022 and is Expected to Reach USD 45.3 Billion by 2032 at a CAGR of 14.6% | Valuates Reports

Published

12 hours ago

July 26, 2024

CISION (PR Newswire)

BANGALORE, India, July 26, 2024 /PRNewswire/ — Data Center Chip Market By Chip Type (GPU, ASIC, FPGA, CPU, Others), By Data Center Size (Small and Medium Size, Large Size), By Industry Verticals (BFSI, Manufacturing, Government, IT and Telecom, Retail, Transportation, Energy and Utilities, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032.

The Data Center Chip Market was valued at USD 11.7 Billion in 2022, and is estimated to reach USD 45.3 Billion by 2032, growing at a CAGR of 14.6% from 2023 to 2032.
Get Free Sample @ https://reports.valuates.com/request/sample/ALLI-Auto-2B326/Data_Center_Chip_Market
Major Factors Driving the Growth of Data Center Chip Market
Because of the growing need for data processing and storage solutions brought about by the quick development of cloud computing, artificial intelligence, and big data analytics, the data center chip market is expanding significantly. High-performance chips are necessary for data centers to process massive volumes of data quickly and efficiently. As a result, advances in chip technology, including CPUs, GPUs, and specialist AI processors, have been made. The need for more resilient and scalable data center infrastructure is fueled in part by the expansion of digital services and Internet of Things (IoT) devices. The market is expanding due to key areas including Asia-Pacific, with its investments in technology and fast digital transformation, and North America, with its top tech businesses and vast data center networks.
View Full Report @ https://reports.valuates.com/market-reports/ALLI-Auto-2B326/data-center-chip
TRENDS INFLUENCING THE GROWTH OF THE DATA CENTER CHIP MARKET:
In data centers, Graphics Processing Units (GPUs) are essential for speeding up computing operations and data processing. They are perfect for managing workloads related to artificial intelligence (AI), machine learning, and large-scale data analytics because of their parallel processing capabilities. The need for GPUs in data centers is growing as these technologies become increasingly essential to corporate operations. Businesses are purchasing GPUs in order to increase the effectiveness of their data processing, lower latency, and boost overall performance. The need for data center chips is being driven by the increasing reliance on GPUs for sophisticated computing activities, which is considerably contributing to the market’s rise. This need is further increased by the growing use of AI and machine learning in a variety of sectors, which puts GPUs at the forefront of the data center semiconductor industry.
Compared to general-purpose chips, Application Specific Integrated Circuits (ASICs) provide better performance and efficiency since they are designed specifically for a given application. ASICs are extensively utilized in data centers for specific tasks including networking, data compression, and encryption. ASICs are becoming more and more common as a result of the growth of cloud computing, big data analytics, and blockchain technology, which has increased demand for high-performance, energy-efficient processors. Their capacity to provide tailored performance for certain applications aids data centers in better workload management, power conservation, and operating expense reduction. The market is expanding as a result of the increased preference for ASICs in data centers, which is fueling the need for specialized data center chips.
Large data centers are important users of data center chips; they are run by well-known IT firms and cloud service providers. To manage enormous volumes of data and provide a wide range of services, these facilities need a great deal of processing power and sophisticated computing skills. High-performance data center chips are becoming more and more necessary as a result of the growth of massive data centers and the rising demand for online streaming, cloud services, and digital transactions. These chips are necessary to ensure effective data management, processing, and storage, which helps big data centers fulfill the increasing expectations of its clientele. Large data center proliferation is anticipated to considerably boost the data center chip industry as the digital economy continues to grow.
Data centers are becoming more and more important to the Banking, Financial Services, and Insurance (BFSI) industry as a means of safely and effectively managing high transaction volumes, consumer data, and financial records. The need for sophisticated data center processors is being driven by the sector’s requirement for real-time data processing, high-performance computing, and strong security measures. BFSI organizations may improve their operational efficiency, guarantee data integrity, and deliver superior client services by utilizing data centers fitted with robust chips. The BFSI sector’s need for data center chips is being driven by the increasing use of online banking, digital banking, and financial analytics tools, all of which increase the requirement for sophisticated data center infrastructure.
The market for data center chips is significantly influenced by the cloud computing industry’s explosive growth. There is a growing need for scalable, effective, and high-performance data center infrastructure as more companies move their operations to the cloud. In order to handle enormous volumes of data, facilitate virtualization, and guarantee flawless service delivery, cloud service providers need sophisticated data center chips. Sturdy data center chips are becoming more and more necessary as cloud-based solutions become more and more popular. Benefits like cost savings, flexibility, and scalability are driving this trend. In places like North America and Europe, where cloud adoption rates are high and data center chip demand is rising rapidly, this tendency is especially significant.
Buy Now @ https://reports.valuates.com/api/directpaytoken?rcode=ALLI-Auto-2B326&lic=single-user
DATA CENTER CHIP MARKET SHARE
In 2022, North America gained a sizable portion of the market.
In 2022, the GPU made up the largest portion of the market share.
Throughout the projection period, large data centers are expected to gain a significant portion.
The BFSI market is anticipated to be one of the most profitable markets.
Purchase Regional Report @ https://reports.valuates.com/request/regional/ALLI-Auto-2B326/Data_Center_Chip_Market
Key Companies:
Advanced Micro Devices IncTaiwan Semiconductor Manufacturing Company LimitedBroadcomHuawei Technologies Co LtdIntel CorporationNVidia CorporationSamsung Electronics Co LtdQualcomm Technologies IncGlobalFoundriesARM LIMITED (SOFTBANK GROUP CORP.)Purchase Chapters @ https://reports.valuates.com/request/chaptercost/ALLI-Auto-2B326/Data_Center_Chip_Market
SUBSCRIPTION
We have introduced a tailor-made subscription for our customers. Please leave a note in the Comment Section to know about our subscription plans.
DISCOVER MORE INSIGHTS: EXPLORE SIMILAR REPORTS!
– The global modular data center market size was valued at USD 14,952 Million in 2019 and is projected to reach USD 59,971 Million by 2027, registering a CAGR of 18.7% from 2020 to 2027.
– Data Centre Market was estimated to be worth USD 137500 Million in 2023 and is forecast to a readjusted size of USD 412740 Million by 2030 with a CAGR of 16.8% during the forecast period 2024-2030.
– Data Center PCIe Chip market was valued at USD 194.9 Million in 2023 and is anticipated to reach USD 377.4 Million by 2030, witnessing a CAGR of 10.2% during the forecast period 2024-2030.
– Data Center Accelerator Market
– Data Center Networking Market
– According to a new report published by , titled, “Big Data Analytics in Semiconductor & Electronics Market,” The big data analytics in semiconductor & electronics market was valued at D18.7 billion in 2021, and is estimated to reach D47.2 billion by 2031, growing at a CAGR of 9.9% from 2022 to 2031.
– IoT market was valued at USD 34250 Million in 2023 and is anticipated to reach USD 74630 Million by 2030, witnessing a CAGR of 11.6% during the forecast period 2024-2030.
– Data Center AI Accelerator Chip Market
– Electro-absorption Modulated Laser Chip Market
– According to a new report published by , titled, “Data Processing Unit Market”, the data processing unit market was valued at D553.96 Million in 2021, and is estimated to reach D5.5 billion by 2031, growing at a CAGR of 26.9% from 2022 to 2031.
– Optical Chip for Data Center Market
– EML Chip Market
– Optical Communication Chip Market revenue was USD 3102.7 Million in 2022 and is forecast to a readjusted size of USD 7251.5 Million by 2029 with a CAGR of 12.9% during the forecast period (2023-2029).
– SiC Power Chip Market
– Silicon Carbide Chip Market
– High Speed Optical Communication Chip Market
– 56G eml Optical Chip Market
– FPGA Master Control Chip Market
– Single-port Industrial Grade Ethernet PHY Chip Market
– AWG Chip Market
– Discrete Graphics Chip Market
– LNOI Optoelectronic Chip Market
– Smartphone Chip Market
– Smartphone TFT-LCD Display Driver Chip Market
– Smart Phone Baseband Chip Market
DISCOVER OUR VISION: VISIT ABOUT US!
Valuates offers in-depth market insights into various industries. Our extensive report repository is constantly updated to meet your changing industry analysis needs.
Our team of market analysts can help you select the best report covering your industry. We understand your niche region-specific requirements and that’s why we offer customization of reports. With our customization in place, you can request for any particular information from a report that meets your market analysis needs.
To achieve a consistent view of the market, data is gathered from various primary and secondary sources, at each step, data triangulation methodologies are applied to reduce deviance and find a consistent view of the market. Each sample we share contains a detailed research methodology employed to generate the report. Please also reach our sales team to get the complete list of our data sources.
YOUR FEEDBACK MATTERS: REACH OUT TO US!Valuates [email protected] U.S. Toll-Free Call 1-(315)-215-3225WhatsApp: +91-9945648335Website: https://reports.valuates.comBlog: https://valuatestrends.blogspot.com/ Pinterest: https://in.pinterest.com/valuatesreports/ Twitter: https://twitter.com/valuatesreports Facebook: https://www.facebook.com/valuatesreports/ YouTube: https://www.youtube.com/@valuatesreports6753 https://www.facebook.com/valuateskorean https://www.facebook.com/valuatesspanish https://www.facebook.com/valuatesjapanese https://valuatesreportspanish.blogspot.com/ https://valuateskorean.blogspot.com/ https://valuatesgerman.blogspot.com/ https://valuatesreportjapanese.blogspot.com/
Logo: https://mma.prnewswire.com/media/1082232/Valuates_Reports_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/data-center-chip-market-size-was-valued-at-usd-11-7-billion-in-2022-and-is-expected-to-reach-usd-45-3-billion-by-2032-at-a-cagr-of-14-6–valuates-reports-302207745.html

Artificial Intelligence

Industry 4.0 Market to Surpass USD 513.89 Billion by 2031 with Automation Surge | SkyQuest Technology

Published

12 hours ago

July 26, 2024

CISION (PR Newswire)

WESTFORD, Mass., July 26, 2024 /PRNewswire/ — According to SkyQuest, the global Industry 4.0 Market size was valued at USD 133.05 billion in 2022 and is poised to grow from USD 154.6 billion in 2023 to USD 513.89 billion by 2031, growing at a CAGR of 16.2% during the forecast period (2024-2031).

Industry 4.0 or the fourth industrial revolution emphasizes the use of automation and interconnectivity. Employment of advanced technologies such as artificial intelligence, machine learning, robotics, and connected devices to improve the productivity and efficiency of industries. Rapid digitization and advancements in technology are forecasted to bolster the Industry 4.0 market growth over the coming years. The global Industry 4.0 market is segmented into technology, industry vertical, and region.
Download a detailed overview:
https://www.skyquestt.com/sample-request/industry-4-0-market
Industry 4.0 Market Overview:
Report Coverage
Details
Market Revenue in 2023
$ 154.6 billion
Estimated Value by 2031
$ 513.89 billion
Growth Rate
Poised to grow at a CAGR of 16.2%
Forecast Period
2024–2031
Forecast Units
Value (USD Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
Technology, Industry and Region
Geographies Covered
North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
Report Highlights
Internet of Things (IoT) technology takes centerstage for Industry 4.0 adoption
Key Market Opportunities
Adoption of smart manufacturing and additive manufacturing practices
Key Market Drivers
Rising demand for automation across all industry verticals
Segments covered in Industry 4.0 Market are as follows:
TechnologyRobots (Traditional Industrial Robots {Articulated robots, Cartesian Robots, Selective Compliance Assembly Robot Arm (SCARA), Cylindrical Robots, Others}, Collaborative Robots), Blockchain in Manufacturing, Industrial Sensors (Level Sensors, Temperature Sensors, Flow Sensors, Position Sensors, Pressure Sensors, Force Sensors, Humidity & Moisture Sensors, Gas Sensors), Industrial 3D Printing, Machine Vision (Camera {Digital Camera, Smart Camera}, Frame Grabbers, Optics, and LED Lighting, Processor and Software), HMI (Offering {Hardware [Basic HMI, Advanced Panel-based HMI, Advanced PC-based HMI, Others], Software [On-premises HMI, Cloud-based HMI], Services}), Configuration ({Embedded HMI, Standalone HMI}, Technology {Motion HMI, Bionic HMI, Tactile HMI, Acoustic HMI}, End-user Industry {Process industries [Oil & Gas, Food & beverages, Pharmaceuticals, Chemicals, Energy & power, Metals & mining, Water & wastewater, Others], Discrete industry [Automotive, Aerospace & defense, Packaging, Medical devices, Semiconductor & electronics, Others]}), AI In Manufacturing (Offering {Hardware [Processor MPU, GPU, FPGA, ASIC, Memory, Network], Software [AI solutions- | On-premises, Cloud |, AI platform- | Machine learning framework, Application program interface |], Services [Deployment & integration, Support & maintenance]}, Technology {Machine learning [Deep learning, Supervised learning, Reinforcement learning, Reinforcement learning, Others], Natural language processing [Context-aware computing, Computer vision]}, Application {Predictive maintenance and machinery inspection, Material movement, Production planning, Field services, Quality control, Cybersecurity, Industrial robots, Reclamation}, Digital Twin {Technology [Internet of Things (IOT), Blockchain, Artificial intelligence & machine learning, Artificial intelligence & machine learning, Big data analytics, 5G], Usage Type [Product digital twin, Process digital twin, System digital twin], Application [Product design & development, Performance monitoring, Predictive maintenance, Inventory management, Business optimization, Others]}, Automated Guided Vehicles (AGV) {Type [Tow vehicles, Unit load carriers, Pallet trucks, Assembly line vehicles, Forklift trucks, Others], Navigation Technology [Laser guidance, Magnetic guidance, Inductive guidance, Optical tape guidance, Vision guidance, Others]}, Machine Condition Monitoring {Monitoring Technique [Vibration monitoring, Embedded systems, Vibration analyzers and meters, Thermography, Oil analysis, Corrosion monitoring, Ultrasound emission, Motor current analysis], Offering [Hardware – Vibration sensors, Accelerometers, Tachometers, Infrared sensors, Spectrometers, Ultrasound detectors, Spectrum analyzers, Corrosion probes], Software [Data integration, Diagnostic reporting, Order tracking analysis, Parameter calculation], Deployment Type [On-premises deployment, Cloud deployment], Monitoring Process [Online condition monitoring, Portable condition monitoring]})IndustryManufacturing, Automotive, Energy, Medical, Semiconductor & Electronics, Food & Beverage, Oil & Gas, Aerospace, Metals & Mining, Chemicals, and OthersRequest Free Customization of this report:
https://www.skyquestt.com/speak-with-analyst/industry-4-0-market
Internet of Things (IoT) Technology to Remain Indispensable for Industry 4.0
Internet of Things (IoT) remains the most crucial technology in global Industry 4.0 market growth owing to its role in interconnectivity and automation across different verticals. Advancements in connectivity technologies and rising use of automation in different industry verticals are also estimated to help this sub-segment gain an impressive market share. Surging demand for predictive maintenance will also boost the adoption of IoT technology in the long run.
Advanced robotic technologies are also slated to gain traction in the Industry 4.0 market. Growing acceptance of robots and high investments in advancements of robotic technologies are also slated to create new opportunities for providers of advanced robotics in the Industry 4.0 market. The low margin of error and the immense scope of automation are key benefits of robotics that help this sub-segment flourish.
Artificial intelligence (AI) will be another popular technology in the Industry 4.0 world going forward. Increasing demand for continuous monitoring, real-time analytics, and predictive maintenance are slated to help the demand for artificial intelligence in the future. The rising use of IoT devices will also boost the demand for cloud computing technology in the long run.
View report summary and Table of Contents (TOC):
https://www.skyquestt.com/report/industry-4-0-market
Manufacturing Vertical to Spearhead Industry 4.0 Market Development
The manufacturing vertical is estimated to be at the forefront when it comes to Industry 4.0 adoption. The surge in use of robotics, advanced technologies, and smart manufacturing practices sets the tone for Industry 4.0 in this industry vertical. High emphasis on improving manufacturing efficiency, reducing downtime, and maximizing profits are all contributing to the high market share of this sub-segment.
The automotive industry is another vertical where Industry 4.0 market players could invest to get good returns. The high adoption of advanced robotics and other smart manufacturing technologies to maximize production allows this sub-segment to become a crucial one for Industry 4.0 providers. The aerospace and defense industry vertical also shows a lot of promise for Industry 4.0 companies going forward. Growing demand for advanced manufacturing techniques and technologies to create complex aerospace components is helping Industry 4.0 market growth via this segment.
The oil & gas industry is also estimated to embrace Industry 4.0 trend with open hands as they try to improve their operations and promote better resource utilization. High demand for predictive maintenance to reduce downtime and the growing adoption of digital oilfield solutions are estimated to bolster Industry 4.0 market development in the long run.
To sum it up, the application scope for Industry 4.0 is endless as automation and digitization pick up pace around the world. High investments in development of IoT and AI technologies will create better opportunities for Industry 4.0 companies in the future. The manufacturing industry will remain the top revenue generating sub-segment and more opportunities for aerospace, automotive, and oil & gas verticals will be seen over the coming years.
Related Report:
Digital Twin Market
Cyber Security Market
Artificial Intelligence (AI) Market
Internet Of Things (IoT) Market
Machine Learning Market
About Us:
SkyQuest is an IP focused Research and Investment Bank and Accelerator of Technology and assets. We provide access to technologies, markets and finance across sectors viz. Life Sciences, CleanTech, AgriTech, NanoTech and Information & Communication Technology.
We work closely with innovators, inventors, innovation seekers, entrepreneurs, companies and investors alike in leveraging external sources of R&D. Moreover, we help them in optimizing the economic potential of their intellectual assets. Our experiences with innovation management and commercialization has expanded our reach across North America, Europe, ASEAN and Asia Pacific.
Contact: Mr. Jagraj SinghSkyQuest Technology1 Apache Way,Westford,Massachusetts 01886USA (+1) 351-333-4748Email: [email protected] Our Website: https://www.skyquestt.com/
Logo : https://mma.prnewswire.com/media/2446095/SkyQuest_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/industry-4-0-market-to-surpass-usd-513-89-billion-by-2031-with-automation-surge–skyquest-technology-302206499.html

Artificial Intelligence

Generative AI Cybersecurity Market worth $40.1 billion by 2030 – Exclusive Report by MarketsandMarkets™

Published

14 hours ago

July 26, 2024

CISION (PR Newswire)

CHICAGO, July 26, 2024 /PRNewswire/ — The Generative AI cybersecurity Market is anticipated to experience substantial expansion, ascending from a value of USD 7.1 billion in 2024 to a substantial worth of USD 40.1 billion by the year 2030, according to a new report by MarketsandMarkets™. This growth trajectory reflects a robust compound annual growth rate (CAGR) of 33.4% over the forecast period.

Browse in-depth TOC on “Generative AI cybersecurity Market”
350 – Tables 60 – Figures450 – Pages
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=164202814
Scope of the Report
Report Metrics
Details
Market size available for years
2019–2030
Base year considered
2023
Forecast period
2024–2030
Forecast units
USD (Million)
Segments Covered
Offering, Generative AI-based Cybersecurity, Cybersecurity for Generative AI, Security Type, End-user, and Region
Geographies covered
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
Companies covered
Microsoft (US), IBM (US), Google (US), SentinelOne (US), AWS (US), NVIDIA (US), Cisco (US), CrowdStrike (US), Fortinet (US), Zscaler (US), Trend Micro (Japan), Palo Alto Networks (US), BlackBerry (Canada), Darktrace (UK), F5 (US), Okta (US), Sangfor (China), SecurityScorecard (US), Sophos (UK), Broadcom (US), Trellix (US), Veracode (US), LexisNexis (US), Abnormal Security (US), Adversa AI (Israel), Aquasec (US), BigID (US), Checkmarx (US), Cohesity (US), Credo AI (US), Cybereason (US), DeepKeep (Israel), Elastic NV (US), Flashpoint (US), Lakera (US), MOSTLY AI (Austria), Recorded Future (US), Secureframe (US), Skyflow (US), SlashNext (US), Snyk (US), Tenable (US), TrojAI (Canada), VirusTotal (Spain), XenonStack (UAE), and Zerofox (US).
This dramatic surge is being fueled by a number of causes. The primary growth driver is the enhancement of existing cybersecurity tools through generative AI algorithms by improving anomaly detection, automating threat hunting and penetration testing, and providing complex simulations for security testing purposes. These techniques enable various cyber-attack scenarios that can be simulated using the Generative Adversarial Networks (GANs), thus enabling the development of better preparedness and response strategies. On the other hand, it requires special cyber security tools to protect generative AI workloads against unique vulnerabilities such as adversarial attacks, model inversions and LLM poisoning. These tools include differential privacy and secure multi-party computation that are integrated into AI systems for training and deployment data protection purposes.
Request Sample Pages@ https://www.marketsandmarkets.com/requestsampleNew.asp?id=164202814
Generative AI apps security segment will account for largest market share during the forecast period.
The cybersecurity landscape is rapidly changing for generative AI apps, which are already making their way into chatbots, content creation tools like word processors, and personalized recommendation systems. According to McAfee, 55% of these programs have had security breaches. This highlights the dire need for stronger protective measures from unauthorized access. Several generative AI applications that use adversarial techniques to force the desired reaction out of intelligent machines.
Therefore, there is a pressing demand in the number of developers who ensure that such machines are made more robust through techniques like adversarially trained models and resistant architectures. Finally, the usage of secure enclaves plus hardware-based security measures is growing off late, mainly aimed at safeguarding vulnerable AI computations from being tampered with. For instance, OpenAI has very strict security rules meant to protect GPT models thereby ensuring data integrity and user privacy.
By end-user, government & defense sector is poised to account for larger market share in 2024.
Government as well as defense industries are increasingly resorting to generative AI for cyber security purposes due to the urgency of protecting sensitive information and national security. According to a recent CSIS report, AI is being integrated into the cybersecurity framework of 43% of government agencies which resultantly improves their ability to identify and counter threats. As an example, the United States Department of Defense has started using artificial intelligence (AI) based security solutions backed by generative AI that can create fictitious cyber-attacks, thereby providing them with enhanced preparedness against advanced types of threats.
This technology also helps these sectors handle and analyze large volumes of data more effectively, giving valuable insights that will enable them prevent or mitigate cyber threats. This trend demonstrates an increasing reliance on generative AI in fortifying cyber security measures so as to ensure that critical infrastructure and sensitive data remain secure in today’s intricate digital landscape.
By region, North America to hold the largest share by market value in 2024.
In 2024, North America will be the leading region based on market share due to its excellent technology infrastructure, substantial investments in AI-enabled cybersecurity and the presence of key players. Major cyber security research universities and tech companies such as Google, AWS, CrowdStrike, SentinelOne and IBM are present in this area, pushing them on the forefront of potent risk management technologies and generative AI tools for threat detection. For example, IBM’s security platform powered by AI has improved detection rates for threats up by 40%, thus proving the relevance of AI technology to enhancing cybersecurity.
Moreover, legislative instruments such as Cybersecurity Information Sharing Act (CISA) are being put in place to promote advanced cybersecurity technologies. As internet attacks continue getting more complicated, North American enterprises prefer generative artificial intelligence (AI), so as to enhance their safety measures pertaining to personal data and digital infrastructure.
Inquire Before Buying@ https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=164202814
Top Key Companies in Generative AI cybersecurity Market:
The major players in the generative AI cybersecurity market include Palo Alto Networks (US), AWS (US), CrowdStrike (US), SentinelOne (US), and Google (US), along with SMEs and startups such as MOSTLY AI (Austria), XenonStack (UAE), BigID (US), Abnormal Security (US), and Adversa AI (Israel).
Browse Adjacent Market: Artificial Intelligence (AI) Market Research Reports & Consulting
Browse Other Reports:
AI Model Risk Management Market – Global Forecast to 2029
AI in Chemicals Market – Global Forecast to 2029
Artificial Intelligence in Cybersecurity Market – Global Forecast to 2028
Explainable AI Market – Global Forecast to 2028
Artificial Intelligence (AI) Toolkit Market – Global Forecast to 2028
Get access to the latest updates on Generative AI cybersecurity Companies and Generative AI cybersecurity Industry
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
Contact:Mr. Rohan SalgarkarMarketsandMarkets™ INC.630 Dundee RoadSuite 430Northbrook, IL 60062USA: +1-888-600-6441Email: [email protected] Our Website: https://www.marketsandmarkets.com/
Logo: https://mma.prnewswire.com/media/1951202/4609423/MarketsandMarkets.jpg

View original content:https://www.prnewswire.co.uk/news-releases/generative-ai-cybersecurity-market-worth-40-1-billion-by-2030—exclusive-report-by-marketsandmarkets-302207361.html