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Mar 31, 2020

Frontdoor Q1 2020 Earnings Report

Frontdoor's first quarter revenue increased, driven by growth across all customer channels and effective cost management.

Key Takeaways

Frontdoor reported an 8% increase in revenue to $294 million for Q1 2020. Net income remained consistent at $13 million, with diluted earnings per share also at $0.15. The company's cash and cash equivalents increased by $54 million, reaching $482 million.

Revenue increased by 8% to $294 million.

Gross profit margin increased by 270 basis points to 50%.

Net income remained steady at $13 million.

Cash and cash equivalents increased by $54 million to $482 million.

Total Revenue
$294M
Previous year: $271M
+8.5%
EPS
$0.21
Previous year: $0.19
+10.5%
Home Service Plans
2.2M
Previous year: 2.1M
+4.8%
Gross Profit
$147M
Previous year: $128M
+14.8%
Cash and Equivalents
$482M
Previous year: $341M
+41.3%
Free Cash Flow
$52M
Previous year: $48M
+8.3%
Total Assets
$1.29B
Previous year: $1.1B
+17.7%

Frontdoor

Frontdoor

Frontdoor Revenue by Segment

Forward Guidance

The company anticipates revenue between $410 million and $420 million, and adjusted EBITDA between $95 million and $105 million for the second quarter of 2020. The full-year outlook was withdrawn due to COVID-19 uncertainties.

Positive Outlook

  • Second quarter revenue is anticipated to range from $410 million to $420 million, compared to $388 million in the prior year period.
  • Second quarter Adjusted EBITDA is anticipated to range from $95 million to $105 million, compared to $105 million in the prior year period.

Challenges Ahead

  • Full-Year 2020 Outlook was withdrawn due to the uncertainty around the COVID-19 impact on the business.
  • Second quarter financial outlook primarily reflects the anticipated COVID-19 impact on U.S. home resales and new home service plans in real estate channel.

Revenue & Expenses

Visualization of income flow from segment revenue to net income