NASDAQ$FTDR
Frontdoor Inc. · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Frontdoor's Q1 2024 performance showed revenue increased by 3% to $378 million, gross profit margin expanded to 51%, and net income reached $34 million.
Frontdoor reported a 3% increase in revenue to $378 million for Q1 2024. The company's gross profit margin expanded to 51%, and net income increased to $34 million. The company is raising full-year 2024 gross profit margin and Adjusted EBITDA outlook.
- Revenue increased 3% to $378 million, driven by an 11% increase from price that was partly offset by an 8% decline from lower volume.
- Gross profit margin expanded 510 basis points to 51% due to higher realized price, a transition to higher service fees, and process improvement initiatives, partly offset by inflationary cost pressures.
- Net income and diluted earnings per share increased to $34 million and $0.43, respectively.
- Adjusted EBITDA increased 33% to $71 million.
Headline financials
Revenue & EPS history
Frontdoor · Revenue · Quarterly
$378M
Revenue by segment
Frontdoor · $430M total across 2 segments · Q3 2023
- Renewals$406M+14.0%94.4%
- Non-warranty and other$24M+84.6%5.6%
Forward guidance
Frontdoor provided the following guidance: Maintaining revenue range of $1.81 billion to $1.84 billion. Increasing gross profit margin range to approximately 50.0%. Increasing Adjusted EBITDA range to $360 million to $370 million.
Tailwinds
- Maintaining revenue range of $1.81 billion to $1.84 billion
- Increasing gross profit margin range to approximately 50.0%
- Increasing Adjusted EBITDA range to $360 million to $370 million
- Second-Quarter 2024 Outlook revenue of $530 million to $540 million, a 2% increase over the prior-year period.
- Second-Quarter 2024 Outlook Adjusted EBITDA of $130 million to $140 million, a 12% increase over the prior-year period.
Headwinds
- Approximately 10% decline in direct-to-consumer channel revenue
- A 15% to 20% decline in real estate channel revenue
- The number of home warranties is expected to decline 1% to 3%
- Ongoing inflationary cost pressures from our contractor network, replacement parts and equipment
- Net cash used for investing activities was $10 million for the three months ended March 31, 2024 and was primarily comprised of capital expenditures related to technology projects.
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 2024
+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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