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Mar 31, 2024
Frontdoor Q1 2024 Earnings Report
Frontdoor's Q1 2024 performance showed revenue increased by 3% to $378 million, gross profit margin expanded to 51%, and net income reached $34 million.
Key Takeaways
Frontdoor reported a 3% increase in revenue to $378 million for Q1 2024. The company's gross profit margin expanded to 51%, and net income increased to $34 million. The company is raising full-year 2024 gross profit margin and Adjusted EBITDA outlook.
Revenue increased 3% to $378 million, driven by an 11% increase from price that was partly offset by an 8% decline from lower volume.
Gross profit margin expanded 510 basis points to 51% due to higher realized price, a transition to higher service fees, and process improvement initiatives, partly offset by inflationary cost pressures.
Net income and diluted earnings per share increased to $34 million and $0.43, respectively.
Adjusted EBITDA increased 33% to $71 million.
Frontdoor
Frontdoor
Frontdoor Revenue by Segment
Revenue by Segment
Renewals Revenue
CapyFin.comReal Estate (First-Year) Revenue
CapyFin.comDirect-to-Consumer (First-Year) Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Frontdoor provided the following guidance: Maintaining revenue range of $1.81 billion to $1.84 billion. Increasing gross profit margin range to approximately 50.0%. Increasing Adjusted EBITDA range to $360 million to $370 million.
Positive Outlook
- Maintaining revenue range of $1.81 billion to $1.84 billion
- Increasing gross profit margin range to approximately 50.0%
- Increasing Adjusted EBITDA range to $360 million to $370 million
- Second-Quarter 2024 Outlook revenue of $530 million to $540 million, a 2% increase over the prior-year period.
- Second-Quarter 2024 Outlook Adjusted EBITDA of $130 million to $140 million, a 12% increase over the prior-year period.
Challenges Ahead
- Approximately 10% decline in direct-to-consumer channel revenue
- A 15% to 20% decline in real estate channel revenue
- The number of home warranties is expected to decline 1% to 3%
- Ongoing inflationary cost pressures from our contractor network, replacement parts and equipment
- Net cash used for investing activities was $10 million for the three months ended March 31, 2024 and was primarily comprised of capital expenditures related to technology projects.
Revenue & Expenses
Visualization of income flow from segment revenue to net income