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Sep 30, 2020

Frontdoor Q3 2020 Earnings Report

Frontdoor's Q3 2020 earnings were released, revealing an 8% increase in revenue to $440 million and a net income of $49 million.

Key Takeaways

Frontdoor reported an 8% increase in revenue, reaching $440 million. The company's net income was $49 million, with diluted earnings per share at $0.57. Customer retention improved to 76%, and home service plan growth accelerated to 4%.

Revenue increased by 8% to $440 million.

Net income reached $49 million.

Customer retention improved to 76%.

Home service plan growth accelerated to 4%.

Total Revenue
$440M
Previous year: $407M
+8.1%
EPS
$0.59
Previous year: $0.73
-19.2%
Gross Profit
$215M
Previous year: $206M
+4.4%
Cash and Equivalents
$551M
Previous year: $425M
+29.6%
Free Cash Flow
$6M
Previous year: $9M
-33.3%
Total Assets
$1.41B
Previous year: $1.22B
+15.6%

Frontdoor

Frontdoor

Frontdoor Revenue by Segment

Forward Guidance

Frontdoor provided its outlook for Q4 2020, expecting revenue between $315 million and $325 million and Adjusted EBITDA between $28 million and $32 million. For the full year 2020, revenue is projected to be between $1,460 million and $1,470 million, with an Adjusted EBITDA of approximately $266 million to $270 million.

Challenges Ahead

  • Revenue of $315 million to $325 million.
  • Adjusted EBITDA of $28 million to $32 million, which reflects a continuation of higher service request demand
  • additional investments in customer service.
  • Revenue of $1,460 million to $1,470 million.
  • Adjusted EBITDA of approximately $266 million to $270 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income