BRP Group, Inc. (NASDAQ:BRP) Q1 2024 Earnings Conference Call May 7, 2024 5:00 PM ET

Company Participants

Bonnie Bishop - IR
Trevor Baldwin - CEO
Brad Hale - CFO

Conference Call Participants

Meyer Shields - KBW
Elyse Greenspan - Wells Fargo & Co.
Pablo Singzon - JPMorgan Chase & Co.

Operator

Ladies and gentlemen, greetings, and welcome to The Baldwin Group First Quarter 2024 Earnings Conference Call. [Operator Instructions]. It is now my pleasure to introduce your host, Bonnie Bishop, Executive Director, Investor Relations. Please go ahead.

Bonnie Bishop

Thank you, operator. Welcome to The Baldwin Group first-quarter 2024 earnings call. Today's call is being recorded. First quarter financial results, supplemental Information, and Form 10-Q were issued earlier this afternoon and are available on the company's website at ir.baldwin.com. Please note that remarks made today may include forward-looking statements subject to various assumptions, risks, and uncertainties.

The company's actual results may differ materially from those contemplated by such statements. For a more detailed discussion, please refer to the note regarding forward-looking statements in the company's earnings release on our most recent Form 10-Q, both of which are available on the Baldwin website. During the call today, the Company may also discuss certain non-GAAP financial measures. For more detailed discussion of these non-GAAP financial measures and historical reconciliations to the most closely comparable GAAP measures, please refer to the company's earnings release and supplemental information, both of which have been posted on the company's website at ir.baldwin.com. I will now turn the call over to Trevor Baldwin, Chief Executive Officer of The Baldwin Group.

Trevor Baldwin

Good afternoon and thank you for joining us to discuss our first quarter results reported earlier this afternoon. I'm joined this afternoon by Brad Hale, Chief Financial Officer; and Bonnie Bishop, Executive Director of Investor Relations. Our first-quarter 2024 results represented one of the most complete performances we've seen across the business since going public, showcasing broad-based revenue momentum, in tandem with robust margin expansion and improved free cash flow generation in the wake of the expense rationalization initiatives completed in 2023.

All three of our segments achieved double-digit organic revenue growth, resulting in overall organic revenue growth of 16%. Adjusted EBITDA grew 29% year-over-year, resulting in an adjusted EBITDA margin of 26.7%, a 280 basis points expansion over the first quarter of 2023, and free cash flow from operations grew 51% in the quarter to $53 million. As we discussed on our last earnings call, the business is rapidly approaching a real inflection point. We are four quarters away from satisfying substantially all our outstanding earn-out obligations; the result of which, will be a step function increase of our free cash flow profile.