NASDAQ$FTDR
Frontdoor Inc. · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Frontdoor's first quarter performance was marked by a 4% revenue increase, improved gross profit margin, and strategic initiatives, including the launch of a new mobile app, driving enhanced earnings and a focus on shareholder returns.
Frontdoor reported a 4% increase in revenue to $367 million for Q1 2023. Gross profit margin improved to 46%, and net income rose to $22 million. The company launched a new mobile app and expects to repurchase approximately $80 million in stock in 2023.
- Revenue increased by 4% to $367 million, driven by a 10% increase from price, partially offset by a 5% decline from lower volume.
- Gross profit margin increased 540 basis points to 46% due to higher realized price, fewer service requests, and moderated inflationary cost pressures.
- Net income increased by $20 million to $22 million.
- Adjusted EBITDA increased by $29 million to $54 million.
Headline financials
Revenue & EPS history
Frontdoor · Revenue · Quarterly
$367M
Revenue by segment
Frontdoor · $289M total across 2 segments · Q1 2023
- Renewals$278M+12.6%96.2%
- Non-warranty and other$11M-15.4%3.8%
Forward guidance
Frontdoor provided full-year 2023 revenue guidance of $1.70 billion to $1.74 billion and Adjusted EBITDA guidance of $220 million to $240 million.
Tailwinds
- Revenue growth in the renewals channel is expected to be approximately 10%.
- Gross profit margin is expected to be between 43.5% and 46.0% due to a moderation of inflation.
- Expects to repurchase approximately $80 million in stock in 2023
- Second-quarter 2023 revenue is expected to be $505 million to $520 million, a 5% increase over the prior year period
- Second-quarter 2023 Adjusted EBITDA is expected to be $80 million to $90 million, a 10% increase over the prior year period
Headwinds
- Revenue decline in the direct-to-consumer channel is expected to be in the low double digits.
- Revenue decline in the real estate channel is expected to be nearly 20%.
- The number of home service plans is expected to decline in the mid to upper single digits.
- SG&A is projected to be $570 million to $595 million due to additional investments in the American Home Shield brand.
- Capital expenditures are expected to be approximately $35 to $45 million, primarily consisting of technology investments.
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 2023
+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
| Quarter | Report date | Reaction (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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