NASDAQ$FTDR

Frontdoor Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported an 8% increase in revenue, reaching $417 million, and customer retention remained stable at 75%.

Frontdoor reported an 8% increase in revenue to $417 million. Despite challenges from COVID-19, the company saw stable customer retention at 75% and an increase in available liquidity. The company is investing in direct-to-consumer marketing and customer retention initiatives.

  • Revenue increased eight percent to $417 million.
  • Gross profit margin of 52 percent.
  • Net income of $49 million.
  • Adjusted EBITDA of $100 million.

Headline financials

Total Revenue

$417M

Previous: $388M+7.5%
EPS (adj)

$0.66

Previous: $0.73-9.6%
Home Warranties

2.2M

Previous: 2.1M+4.8%
Capital Expenditures

-$18M

Previous: -$10M-80.0%
Free Cash Flow

$31M

Previous: $50M-38.0%
Net Income

$49M

Previous: $60M-18.3%
Operating Income

$84M

Previous: $95M-11.6%
Gross Profit

$218M

Previous: $205M+6.3%
Cash & Equivalents

$545M

Previous: $420M+29.8%
Total Assets

$1.36B

Previous: $1.18B+15.4%
Stock-Based Comp

$5M

Previous: $2M+150.0%

Revenue & EPS history

Frontdoor · Revenue · Quarterly

$417M

Q2 2020+7.5%vs Q2 2019
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Revenue by segment

Frontdoor · $292M total across 2 segments · Q2 2020

  • Renewals
    $289M+9.9%
  • Non-warranty and other
    $3M

Forward guidance

Revenue is anticipated to range from $430 million to $440 million, compared to $407 million in the prior year period. Adjusted EBITDA is anticipated to range from $90 million to $100 million, compared to $106 million in the prior year period.

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 Q2 2020

Historical avgQ2 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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