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Jun 30, 2020

Frontdoor Q2 2020 Earnings Report

Reported an 8% increase in revenue, reaching $417 million, and customer retention remained stable at 75%.

Key Takeaways

Frontdoor reported an 8% increase in revenue to $417 million. Despite challenges from COVID-19, the company saw stable customer retention at 75% and an increase in available liquidity. The company is investing in direct-to-consumer marketing and customer retention initiatives.

Revenue increased eight percent to $417 million.

Gross profit margin of 52 percent.

Net income of $49 million.

Adjusted EBITDA of $100 million.

Total Revenue
$417M
Previous year: $388M
+7.5%
EPS
$0.66
Previous year: $0.73
-9.6%
Home Service Plans
2.2M
Previous year: 2.1M
+4.8%
Gross Profit
$218M
Previous year: $205M
+6.3%
Cash and Equivalents
$545M
Previous year: $420M
+29.8%
Free Cash Flow
$70M
Previous year: $82M
-14.6%
Total Assets
$1.36B
Previous year: $1.18B
+15.4%

Frontdoor

Frontdoor

Frontdoor Revenue by Segment

Forward Guidance

Revenue is anticipated to range from $430 million to $440 million, compared to $407 million in the prior year period. Adjusted EBITDA is anticipated to range from $90 million to $100 million, compared to $106 million in the prior year period.

Revenue & Expenses

Visualization of income flow from segment revenue to net income