Frontdoor Q1 2022 Earnings Report
Key Takeaways
Frontdoor reported a 7% increase in revenue to $351 million for Q1 2022. The growth was driven by double-digit revenue increases in the renewal and direct-to-consumer channels, which was partially offset by a decline in real estate channel revenue. Net income was $2 million, and adjusted EBITDA was $25 million.
Revenue increased 7% to $351 million.
Double-digit revenue growth was achieved in the renewal and direct-to-consumer channels.
Net income was reported at $2 million.
Adjusted EBITDA was reported at $25 million.
Frontdoor
Frontdoor
Frontdoor Revenue by Segment
Forward Guidance
Frontdoor updated its full-year 2022 outlook, with revenue expected to be in the range of $1.66 billion to $1.69 billion and adjusted EBITDA in the range of $215 million to $245 million.
Positive Outlook
- Revenue of $475 million to $485 million for Q2 2022
- Double-digit revenue growth in the direct-to-consumer channel
- Upper single-digit revenue growth in the renewal channel
- ProConnect revenue outlook of approximately $40 million
- Gross profit margin range updated to 44 percent to 45 percent
Challenges Ahead
- Decline in real estate channel revenue
- Gross profit margin range updated to 44 percent to 45 percent, driven primarily by expectations that the acceleration of inflationary cost pressures will continue throughout the remainder of the year
- SG&A range updated to $540 million to $565 million
- Adjusted EBITDA of $75 million to $90 million for Q2 2022
- The consolidated revenue growth for the home service plan business is anticipated to be in the low-single digits
Revenue & Expenses
Visualization of income flow from segment revenue to net income