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Frontdoor
🇺🇸 NASDAQ:FTDR
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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.

Total Revenue
$378M
Previous year: $367M
+3.0%
EPS
$0.44
Previous year: $0.29
+51.7%
Gross Profit
$195M
Previous year: $170M
+14.7%
Cash and Equivalents
$378M
Previous year: $337M
+12.2%
Free Cash Flow
$73M
Previous year: $52M
+40.4%
Total Assets
$1.15B
Previous year: $1.13B
+1.6%

Frontdoor

Frontdoor

Frontdoor Revenue by Segment

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

Company Overview

Full financial data and analysis

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