NASDAQ$FTDR

Frontdoor Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Frontdoor's first quarter revenue increased, driven by growth across all customer channels and effective cost management.

Frontdoor reported an 8% increase in revenue to $294 million for Q1 2020. Net income remained consistent at $13 million, with diluted earnings per share also at $0.15. The company's cash and cash equivalents increased by $54 million, reaching $482 million.

  • Revenue increased by 8% to $294 million.
  • Gross profit margin increased by 270 basis points to 50%.
  • Net income remained steady at $13 million.
  • Cash and cash equivalents increased by $54 million to $482 million.

Headline financials

Total Revenue

$294M

Previous: $271M+8.5%
EPS (adj)

$0.21

Previous: $0.19+10.5%
Home Warranties

2.2M

Previous: 2.1M+4.8%
Customer Retention Rate

75.0%

Previous: 75.0%+0.0%
Capital Expenditures

-$8M

Previous: -$4M-100.0%
Free Cash Flow

$5M

Previous: $9M-44.4%
Net Income

$13M

Previous: $13M+0.0%
Operating Income

$33M

Previous: $34M-2.9%
Gross Profit

$147M

Previous: $128M+14.8%
Cash & Equivalents

$482M

Previous: $341M+41.3%
Total Assets

$1.29B

Previous: $1.1B+17.7%
Stock-Based Comp

$3M

Previous: $2M+50.0%

Revenue & EPS history

Frontdoor · Revenue · Quarterly

$294M

Q1 2020+8.5%vs Q1 2019
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Revenue by segment

Frontdoor · $203M total across 2 segments · Q1 2020

  • Renewals
    $200M+9.9%
  • Non-warranty and other
    $3M+200.0%

Forward guidance

The company anticipates revenue between $410 million and $420 million, and adjusted EBITDA between $95 million and $105 million for the second quarter of 2020. The full-year outlook was withdrawn due to COVID-19 uncertainties.

Tailwinds

  • Second quarter revenue is anticipated to range from $410 million to $420 million, compared to $388 million in the prior year period.
  • Second quarter Adjusted EBITDA is anticipated to range from $95 million to $105 million, compared to $105 million in the prior year period.

Headwinds

  • Full-Year 2020 Outlook was withdrawn due to the uncertainty around the COVID-19 impact on the business.
  • Second quarter financial outlook primarily reflects the anticipated COVID-19 impact on U.S. home resales and new home service plans in real estate channel.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

-0.1%

Avg return

30 days after

59%

20 / 34 earnings

Positive

+25.0%

Q1 2025

Best reaction

-34.2%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+13.3%+8.8%+2.3%
Q4 2025+16.9%+22.8%-4.7%
Q3 2025-15.8%-24.1%-19.3%
Q2 2025-4.0%-6.2%+8.2%
Q1 2025+25.0%+30.0%+33.8%
Q4 2024-19.2%-26.4%-33.5%
Q3 2024+10.7%+17.9%+19.9%
Q1 2024+12.6%+16.8%+15.0%
Q4 2023-5.1%-6.8%-1.4%
Q3 2023+13.4%+21.2%+19.5%
Q2 2023+5.6%+4.6%-4.8%
Q1 2023+11.7%+15.1%+19.5%
Q4 2022+4.3%+1.6%-1.3%
Q3 2022+12.9%+12.2%+12.8%
Q2 2022-0.9%-5.4%-12.5%
Q1 2022-12.9%-14.3%-21.4%
Q4 2021-6.6%-8.1%-11.9%
Q3 2021-11.8%-6.7%-16.5%
Q2 2021-13.8%-14.7%-14.2%
Q1 2021+2.0%+1.6%+1.0%
Q4 2020-1.3%-3.9%-0.2%
Q3 2020+4.0%+9.0%+9.1%
Q2 2020+7.0%+3.8%+0.1%
Q1 2020+5.5%+6.2%+12.5%
Q4 2019-2.1%+0.9%-20.1%
Q3 2019-5.3%-4.7%-3.9%
Q2 2019+16.5%+14.9%+17.5%
Q1 2018+0.2%-0.7%+4.0%
Q1 2019+11.9%+12.0%+17.6%
Q4 2016+12.7%+13.0%+8.9%
Q2 2018+12.7%+13.0%+8.9%
Q4 2018+13.6%+25.2%+22.2%
Q4 2017-34.2%-36.6%-35.4%
Q3 2018-29.0%-36.4%-36.0%

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