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Dec 31, 2022
Frontdoor Q4 2022 Earnings Report
Frontdoor's Q4 2022 financial results reflected moderation of inflationary cost pressures.
Key Takeaways
Frontdoor's Q4 2022 revenue was $339 million, in line with the prior year. Net income was $8 million, and Adjusted EBITDA was $33 million. The gross profit margin of 43% was better than expected due to moderating inflation.
Revenue of $339 million was in line with the prior year period
Gross profit margin of 43% was better than expected as inflation moderated
Net income of $8 million and Adjusted EBITDA of $33 million
Launching New Frontdoor Brand in the Second Quarter of 2023
Frontdoor
Frontdoor
Frontdoor Revenue by Segment
Revenue by Segment
Renewals Revenue
CapyFin.comReal Estate (First-Year) Revenue
CapyFin.comDirect-to-Consumer (First-Year) Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Full-Year 2023 Outlook: Revenue range of $1.70 billion to $1.74 billion, Gross profit margin range of 43% to 45%, Adjusted EBITDA range of $220 million to $240 million
Positive Outlook
- Approximately 10% revenue growth in the renewals channel.
- Gross profit margin of 43% to 45%, which reflects prior pricing actions flowing through and a moderation of inflation.
- Capital expenditures of approximately $35 to 45 million, primarily consisting of technology investments.
- Adjusted EBITDA(2) of $220 million to $240 million.
- Annual effective tax rate of approximately 26%.
Challenges Ahead
- Low double digit revenue decline in the direct-to-consumer channel.
- Nearly 20% revenue decline in the real estate channel.
- Number of home service plans is expected to decline in the mid to upper single digit rate.
- SG&A of $560 million to $585 million, which includes costs associated with marketing, technology and staffing related to the launch of the new Frontdoor brand.
- Ongoing sales pressure in our go-to-market home service plan channels as well as increased SG&A attributed to the launch of our Frontdoor brand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income