NASDAQ$FTDR
Frontdoor Inc. · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Frontdoor's third-quarter performance in 2022 showed revenue growth, but net income and adjusted EBITDA decreased due to rising costs, however, full-year revenue and adjusted EBITDA guidance were raised.
Frontdoor reported a 3% increase in revenue to $484 million for Q3 2022. However, net income decreased by 63% to $28 million, and adjusted EBITDA decreased by 35% to $79 million. The company broadened cost reduction initiatives and reduced its workforce by 7%. Despite these challenges, Frontdoor raised its full-year 2022 revenue and adjusted EBITDA guidance.
- Revenue increased by 3% to $484 million, driven by price and product mix changes.
- Net income decreased 63% to $28 million, impacted by a Streem impairment charge and restructuring costs.
- Adjusted EBITDA decreased 35% to $79 million due to higher contract claims costs.
- Full-year revenue guidance increased to $1.65 billion to $1.66 billion, and adjusted EBITDA guidance increased to $185 million to $195 million.
Headline financials
Revenue & EPS history
Frontdoor · Revenue · Quarterly
$484M
Revenue by segment
Frontdoor · $369M total across 2 segments · Q3 2022
- Renewals$356M+8.5%96.5%
- Non-warranty and other$13M+18.2%3.5%
Forward guidance
Frontdoor expects revenue between $326 million and $336 million and adjusted EBITDA between $4 million and $14 million for Q4 2022. For the full year 2022, the company anticipates revenue between $1.65 billion and $1.66 billion and adjusted EBITDA between $185 million and $195 million.
Tailwinds
- Upper single-digit revenue growth in the renewal channel.
- Upper single-digit revenue growth in the direct-to-consumer channel.
- SG&A range updated to $515 million to $520 million, an approximately $45 million reduction from the original 2022 outlook.
- Gross profit margin updated to approximately 41 percent, driven primarily by the continuation of high cost inflation that is partly offset by higher pricing and process improvement efforts.
- Revenue growth is mostly driven by higher price and product mix.
Headwinds
- Approximately 30 percent revenue decline in the real estate channel.
- Low-single digit revenue decline in the direct-to-consumer channel.
- Adjusted EBITDA of $4 million to $14 million, a decline from the prior year period.
- Revenue growth customer growth is expected to decline approximately 5 percent.
- High cost inflation that is partly offset by higher pricing and process improvement efforts.
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 Q3 2022
+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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