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Dec 31, 2021
Frontdoor Q4 2021 Earnings Report
Frontdoor's financial performance was reported for Q4 2021, with revenue increasing by 5% to $340 million and net income reaching $7 million.
Key Takeaways
Frontdoor reported a 5% increase in revenue to $340 million for Q4 2021. Net income was $7 million and Adjusted EBITDA was $28 million. The company is focused on driving demand growth, raising customer retention, and tackling pandemic-driven inflationary pressures.
Revenue increased 5 percent to $340 million.
Gross profit margin of 41 percent reflects a sharp increase in inflationary cost pressures that occurred in the second half of the year.
Net income was $7 million.
Adjusted EBITDA was $28 million.
Frontdoor
Frontdoor
Frontdoor Revenue by Segment
Revenue by Segment
Renewals Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Frontdoor anticipates revenue between $345 million and $355 million and Adjusted EBITDA between $25 million and $35 million for Q1 2022. For the full year 2022, Frontdoor expects revenue between $1.70 billion and $1.73 billion and Adjusted EBITDA between $265 million and $295 million.
Positive Outlook
- Double-digit revenue growth in the direct-to-consumer channel.
- Upper single-digit revenue growth in the renewal channel.
- Revenue growth is mostly driven by higher price and product mix.
- Customer growth is expected to be in the low single digits.
- ProConnect revenue outlook of approximately $40 million, primarily due to expectations of a higher number of jobs completed by deepening offerings across a similar geographic footprint.
Challenges Ahead
- Higher inflationary cost trends are anticipated to continue through at least the first half of 2022.
- Low double-digit revenue decline in the real estate channel.
- Continuation of cost pressures throughout the year.
- Higher sales and marketing costs to grow the business.
- Annual effective tax rate of approximately 25 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income