NASDAQ$FTDR

Frontdoor Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Frontdoor's Q4 2019 performance showcased revenue growth and improved profitability.

Frontdoor reported a 7% increase in revenue to $300 million and an 11% increase in net income to $19 million for the fourth quarter of 2019. The company successfully launched its Candu offering and completed the acquisition of Streem.

  • Revenue increased seven percent to $300 million.
  • Gross profit margin increased 170 basis points to 46 percent.
  • Net income increased 11 percent to $19 million.
  • Adjusted EBITDA increased three percent to $48 million.

Headline financials

Total Revenue

$300M

Previous: $279M+7.5%
EPS (adj)

$0.25

Previous: $0.23+8.7%
Home Warranties

2.2

Previous: 2.1+4.8%
Capital Expenditures

$7M

Previous: $6M+16.7%
Free Cash Flow

$39M

Previous: $57M-31.6%
Net Income

$19M

Previous: $17M+11.8%
Operating Income

$23M

No prior period
Gross Profit

$139M

Previous: $124M+12.1%
Cash & Equivalents

$428M

Previous: $296M+44.6%
Total Assets

$1.25B

Previous: $1.04B+20.1%
Stock-Based Comp

$2M

Previous: $1M+100.0%

Revenue & EPS history

Frontdoor · Revenue · Quarterly

$300M

Q4 2019+7.5%vs Q4 2018
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Revenue by segment

Frontdoor · $299M total across 4 segments · Q4 2019

  • Renewals
    $204M+9.1%
  • Real Estate (First-Year)
    $56M-1.8%
  • Direct-to-Consumer (First-Year)
    $36M+5.9%
  • Non-warranty and other
    $3M

Forward guidance

Frontdoor anticipates revenue to range from $1.47 billion to $1.49 billion and Adjusted EBITDA to range from $300 million to $320 million for the full year 2020. Additionally, first-quarter 2020 Adjusted EBITDA is anticipated to range from $40 million to $45 million.

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 Q4 2019

Historical avgQ4 2019

+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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