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Dec 31, 2020
Frontdoor Q4 2020 Earnings Report
Frontdoor reported an 8% increase in revenue and a net income of $2 million for Q4 2020.
Key Takeaways
Frontdoor Inc. announced solid Q4 2020 results with an 8% increase in revenue to $323 million. However, net income decreased significantly to $2 million, and adjusted EBITDA fell by 33% to $32 million due to increased contract claims, sales and marketing, and customer service costs.
Revenue increased by 8% to $323 million.
Net income was $2 million, a decrease from $19 million in the prior year.
Adjusted EBITDA decreased by 33% to $32 million.
The company is focused on initiatives to drive double-digit revenue growth and improve customer retention.
Revenue by Segment
Forward Guidance
Frontdoor anticipates revenue between $1.63 billion and $1.65 billion for the full year 2021 and expects first-quarter revenue between $325 million and $330 million.
Positive Outlook
- Revenue of $1.63 billion to $1.65 billion for full-year 2021, approximately 11% to 12% higher than the prior year.
- Gross profit margin of approximately 48% for full-year 2021.
- Capital expenditures of $35 million to $45 million, primarily consisting of technology investments.
- First-quarter 2021 revenue of $325 million to $330 million.
- Adjusted EBITDA of $30 million to $35 million for first-quarter 2021.
Challenges Ahead
- Adjusted EBITDA of $280 million to $300 million for full-year 2021.
- Gross profit margin reflects a continuation of higher appliance service requests into the first half of 2021.
- Adjusted EBITDA reflects a continuation of higher service request demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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