NASDAQ$FTDR

Frontdoor Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Frontdoor reported a revenue increase of 12 percent, reaching $329 million, with a net income of $5 million for the first quarter of 2021.

Frontdoor, Inc. announced a strong start to 2021 with a 12% increase in revenue to $329 million. The company's net income was $5 million, and adjusted EBITDA reached $36 million. Growth was driven by direct-to-consumer marketing investments and an increase in home service plans.

  • Revenue increased 12 percent to $329 million.
  • Net income was $5 million.
  • Adjusted EBITDA was $36 million.
  • Home service plans grew 4 percent to 2.25 million.

Headline financials

Total Revenue

$329M

Previous: $294M+11.9%
EPS (adj)

$0.10

Previous: $0.21-52.4%
Home Warranties

2.3M

Previous: 2.2M+2.3%
Customer Retention Rate

75.0%

Previous: 75.0%+0.0%
Capital Expenditures

-$7M

Previous: -$8M+12.5%
Free Cash Flow

-$2M

Previous: $5M-140.0%
Net Income

$5M

Previous: $13M-61.5%
Operating Income

$22M

Previous: $33M-33.3%
Gross Profit

$148M

Previous: $147M+0.7%
Cash & Equivalents

$538M

Previous: $482M+11.6%
Total Assets

$1.36B

Previous: $1.29B+5.0%
Stock-Based Comp

$6M

Previous: $3M+100.0%

Revenue & EPS history

Frontdoor · Revenue · Quarterly

$329M

Q1 2021+11.9%vs Q1 2020
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Frontdoor · $232M total across 2 segments · Q1 2021

  • Renewals
    $224M+12.0%
  • Non-warranty and other
    $8M+166.7%

Forward guidance

Frontdoor provided full-year 2021 outlook with revenue expected to be in the range of $1.63 billion to $1.65 billion and Adjusted EBITDA between $280 million and $300 million.

Tailwinds

  • Revenue is anticipated to range from $460 million to $470 million for Q2 2021.
  • Gross margin target of approximately 48 percent for the full year.
  • Capital expenditures range remains between $35 million and $45 million.
  • Annual effective tax rate remains at approximately 25 percent.

Headwinds

  • Adjusted EBITDA is anticipated to range from $90 million to $105 million for Q2 2021, compared to $100 million in the prior year period.
  • Adjusted EBITDA reflects improved revenue growth, higher costs and inflation.
  • Adjusted EBITDA reflects an elevated level of service requests.
  • Adjusted EBITDA reflects additional investments in marketing and customer service.

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 2021

Historical avgQ1 2021

+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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