Hagerty, Inc.

Greetings and welcome to the Hagerty first quarter 2022 earnings call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Garrett Edson from ICR. Please go ahead.

Thank you, Operator. Good afternoon, ladies and gentlemen. Thank you for joining us on Hagerty's first quarter 2022 earnings conference call. Please note that this call will be simultaneously webcast on the investor relations section of the company's corporate website at investor.hagerty.com. Our stockholder letter covering this period is also posted on the IR website. Joining the call today are Mikhail Hagerty, Chief Executive Officer, and Fred Turcotte, Chief Financial Officer. Before we start, I'd like to remind you that the discussion today may contain statements related to our business that may be considered forward-looking, including statements concerning our expected future business and financial performance, our ability to maintain existing and acquired new members, our plans to expand market share, including planned investments and partnerships, expectations regarding key operational metrics, and other statements regarding our plans and prospects. Forward-looking statements are often identified words such as we expect, we anticipate, we believe, or similar expressions. These statements reflect our view only as of today, May 9, 2022, and should not be considered our views as of any subsequent date. We do not undertake any obligation to update or revise any forward-looking statements. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For discussion of material risks and other important factors that could affect our actual results, please refer to those contained in our filings with the SEC, which are available on the Investor Relations section of our website and on the SEC's website at sec.gov. Finally, during today's call, we will refer to certain non-GAAP financial measures. The discussion of these non-GAAP financial measures, along with reconciliation to the most directly comparable GAAP measure, is included in our stockholder letter, investor deck and form 10Q, copies of which can be found on the investor relations section of our website and on the SEC's website at sec.gov. Unless otherwise noted in today's call, all comparisons are on a year-over-year basis. And with that, I'd like to turn the call over to Nikhil Hagerty, CEO of Hagerty.

Nikhil Hagerty Good afternoon. I'm happy to report that we have had a strong first quarter of 2022 and are tracking favorably to meet our financial goals for the year. We're also excited and ready to launch our long-term and contractual partnership with State Farm in the fourth quarter. Fred Turcotte, our CFO, will provide the financial details in just a moment, but the headlines are total revenue grew 30% year-over-year to $168 million. Written premium grew 16% year-over-year to $155 million. Total active numbers grew 11% year-over-year to $2.5 million. Before we dive in, I will say a few words about car people and how they enjoy their cars each year. Spring has sprung throughout North America, which means it is once again driving season for tens of millions of people who describe themselves as automotive enthusiasts. Our company was built to serve this massive community, and we are honored to do so. So while auto enthusiasts spend their long winters driving a little less, but still working on cars, researching the next car they intend to buy, or planning their next driving adventure, we at Hagerty have been hard at work steadily adding to our automotive lifestyle ecosystem to make their favorite pastime easier and more fun. All of our offerings help car people enjoy the car world, whether they are racers, Sunday drivers, serious collectors, or shade tree mechanics. but they also allow Hagerty to gain a larger share of consumer discretionary spend and to create a sense of community and belonging among car lovers, which is important because the larger this community grows, the more discretionary income car people spend within our ecosystem. During the first quarter, the Hagerty team achieved several strategic milestones. First and foremost, We announced the expansion of Hagerty Marketplace, which will offer multiple platforms for buying and selling collectible cars. This is a large market that will provide us with a number of growth opportunities. In 2021, our members alone bought and sold approximately $9.5 billion worth of cars. We believe our strategic investment in the trusted experts at Broad Arrow Group, the launch of our digital marketplace, combined with our strong membership base and our media capabilities will give us a competitive advantage in this arena. Our marketplace won't be just about our members buying and selling cars, but will also serve businesses in the automotive world with our acquisition of Speed Digital. a technology company that is a leading provider of inventory management services to specialty dealers, auction houses, and collectors. In the events and experience space, for the first time ever, we operated the renowned Amelia Concord Elegance, attracting 22,000 enthusiasts to Northeast Florida in March. We also announced plans to reimagine and expand the upcoming Detroit Concours d'Elegance and expanded to Hagerty Garage and Social Footprint, our growing nationwide network of premium storage clubhouses. We celebrated the addition of Radwood and Concours de Lemons to Hagerty's portfolio of events. Radwood features the cars, music, and fashion of the 80s and 90s, while the Lemons events celebrate the oddball and unexceptional of the automotive world. Both are a lot of fun. And finally, to draw video gamers into our world, we staked out a position in their world by launching an exciting new partnership with Sony to integrate Hagerty into Gran Turismo 7, the popular video game enjoyed by millions internationally. Gamers of all ages can now access the Hagerty Legends Garage, where they can own and drive more than 70 of the best and most iconic cars of all times. This is a fun way to draw a younger crowd into our world. Our purpose as a company, as we have mentioned before, is to save driving and car culture for future generations. We will do that by continuing to provide on-ramps to our automotive ecosystem, our community, by continuing to enhance our value-added offerings for the benefit and satisfaction of our members. Lastly, we recognize a higher level of global economic uncertainty, even for us. There are inflationary pressures in vehicle repairs, ongoing supply chain issues remain, There are challenges in surrounding industries like vehicle transportation and roadside assistance, and there are general concerns about the crisis in Ukraine. We can't control global macroeconomic factors, so we remain focused on what we can control, which is continuing to manage our unique business model in a way that will allow us to sustain long-term growth through different economic cycles. Additionally, as we have seen in past economic downturns, the enthusiast vehicle universe tends to be a safe haven where people spend available discretionary funds and their free time. We are confident that our business model is perfectly positioned to capitalize on this pattern by offering unique access to the car world to millions of auto enthusiasts. With that, I will turn it over to Fred, who will discuss our financial results in more detail. Fred?