NASDAQ$FTDR

Frontdoor Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Frontdoor's financial performance was reported for Q4 2021, with revenue increasing by 5% to $340 million and net income reaching $7 million.

Frontdoor reported a 5% increase in revenue to $340 million for Q4 2021. Net income was $7 million and Adjusted EBITDA was $28 million. The company is focused on driving demand growth, raising customer retention, and tackling pandemic-driven inflationary pressures.

  • Revenue increased 5 percent to $340 million.
  • Gross profit margin of 41 percent reflects a sharp increase in inflationary cost pressures that occurred in the second half of the year.
  • Net income was $7 million.
  • Adjusted EBITDA was $28 million.

Headline financials

Total Revenue

$340M

Previous: $323M+5.3%
EPS (adj)

$0.10

Previous: $0.08+25.0%
Capital Expenditures

$8M

Previous: $6M+33.3%
Free Cash Flow

$35M

Previous: $47M-25.5%
Net Income

$7M

Previous: $2M+250.0%
Operating Income

$7M

Previous: $1M+600.0%
Gross Profit

$141M

Previous: $137M+2.9%
Cash & Equivalents

$262M

Previous: $597M-56.1%
Total Assets

$1.07B

Previous: $1.41B-23.9%
Stock-Based Comp

$6M

Previous: $4M+50.0%

Revenue & EPS history

Frontdoor · Revenue · Quarterly

$340M

Q4 2021+5.3%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Frontdoor · $251M total across 2 segments · Q4 2021

  • Renewals
    $236M+7.3%
  • Non-warranty and other
    $15M+150.0%

Forward guidance

Frontdoor anticipates revenue between $345 million and $355 million and Adjusted EBITDA between $25 million and $35 million for Q1 2022. For the full year 2022, Frontdoor expects revenue between $1.70 billion and $1.73 billion and Adjusted EBITDA between $265 million and $295 million.

Tailwinds

  • Double-digit revenue growth in the direct-to-consumer channel.
  • Upper single-digit revenue growth in the renewal channel.
  • Revenue growth is mostly driven by higher price and product mix.
  • Customer growth is expected to be in the low single digits.
  • ProConnect revenue outlook of approximately $40 million, primarily due to expectations of a higher number of jobs completed by deepening offerings across a similar geographic footprint.

Headwinds

  • Higher inflationary cost trends are anticipated to continue through at least the first half of 2022.
  • Low double-digit revenue decline in the real estate channel.
  • Continuation of cost pressures throughout the year.
  • Higher sales and marketing costs to grow the business.
  • Annual effective tax rate of approximately 25 percent.

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 2021

Historical avgQ4 2021

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro