NASDAQ$FTDR
Frontdoor Inc. · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Frontdoor's Q3 2023 performance was marked by revenue growth, margin expansion and increased profitability.
Frontdoor reported an 8% increase in revenue to $524 million for Q3 2023. Gross profit margin expanded by 760 bps to 51%, and net income more than doubled to $71 million. Adjusted EBITDA increased by 61% to $128 million. The company is raising its full-year 2023 outlook for revenue, Adjusted EBITDA, and share repurchases.
- Revenue increased by 8% to $524 million, driven by price increases.
- Gross profit margin expanded significantly to 51% due to pricing, process improvements and favorable cost development.
- Net income more than doubled, reaching $71 million.
- Adjusted EBITDA increased by 61% to $128 million.
Headline financials
Revenue & EPS history
Frontdoor · Revenue · Quarterly
$524M
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 is raising its full-year 2023 revenue outlook to $1.765 billion to $1.775 billion and Adjusted EBITDA outlook to $320 million to $330 million. The company expects fourth-quarter revenue of $350 million to $360 million and Adjusted EBITDA of approximately $20 million to $30 million.
Tailwinds
- Raised revenue outlook to $1.765B to $1.775B
- Renewals channel revenue growth of nearly 15%
- Increased gross profit margin to 48.0% to 49.5%
- Increased Adjusted EBITDA outlook to $320M to $330M
- Narrowed capital expenditures to approximately $35M
Headwinds
- Direct-to-Consumer channel revenue decline in the low double-digit range
- Real Estate channel revenue decline in the mid-20% range
- Number of home service plans is expected to decline in the mid-to-upper single digits.
- Revenue of $350 million to $360 million for Q4
- Adjusted EBITDA of approximately $20 million to $30 million for Q4
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 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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