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Mar 31, 2021
Frontdoor Q1 2021 Earnings Report
Frontdoor reported a revenue increase of 12 percent, reaching $329 million, with a net income of $5 million for the first quarter of 2021.
Key Takeaways
Frontdoor, Inc. announced a strong start to 2021 with a 12% increase in revenue to $329 million. The company's net income was $5 million, and adjusted EBITDA reached $36 million. Growth was driven by direct-to-consumer marketing investments and an increase in home service plans.
Revenue increased 12 percent to $329 million.
Net income was $5 million.
Adjusted EBITDA was $36 million.
Home service plans grew 4 percent to 2.25 million.
Frontdoor
Frontdoor
Frontdoor Revenue by Segment
Forward Guidance
Frontdoor provided full-year 2021 outlook with revenue expected to be in the range of $1.63 billion to $1.65 billion and Adjusted EBITDA between $280 million and $300 million.
Positive Outlook
- Revenue is anticipated to range from $460 million to $470 million for Q2 2021.
- Gross margin target of approximately 48 percent for the full year.
- Capital expenditures range remains between $35 million and $45 million.
- Annual effective tax rate remains at approximately 25 percent.
Challenges Ahead
- Adjusted EBITDA is anticipated to range from $90 million to $105 million for Q2 2021, compared to $100 million in the prior year period.
- Adjusted EBITDA reflects improved revenue growth, higher costs and inflation.
- Adjusted EBITDA reflects an elevated level of service requests.
- Adjusted EBITDA reflects additional investments in marketing and customer service.
Revenue & Expenses
Visualization of income flow from segment revenue to net income