Frontdoor Inc. · Q3 2021 earnings

Briefing

Frontdoor's Q3 2021 earnings were released, showcasing a 7% revenue increase to $471 million and a net income of $76 million.

Frontdoor reported a 7% increase in revenue to $471 million for Q3 2021, driven by growth in renewal and direct-to-consumer channels, offsetting challenges in the real estate channel. The company achieved a gross profit margin of 54% and net income of $76 million, with adjusted EBITDA reaching a record $122 million. A $400 million share repurchase program was launched, with $25 million repurchased in September.

• Revenue increased by 7% to $471 million, driven by growth in renewal and direct-to-consumer channels.
• Gross profit margin reached 54%, a 500 basis point increase year-over-year, due to lower service requests and process improvements.
• Net income increased by 56% to $76 million compared to the prior year period.
• Adjusted EBITDA reached a record $122 million, a 34% increase over the prior year period.

Headline financials

Revenue & EPS history

Frontdoor provided an updated full-year 2021 outlook, including a revenue range of $1.59 billion to $1.60 billion and an adjusted EBITDA range of $310 million to $315 million. For the fourth quarter of 2021, the company expects a revenue range of $330 million to $340 million and an adjusted EBITDA range of $40 million to $45 million.