NASDAQ$FTDR
Frontdoor Inc. · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Frontdoor's Q4 2022 financial results reflected moderation of inflationary cost pressures.
Frontdoor's Q4 2022 revenue was $339 million, in line with the prior year. Net income was $8 million, and Adjusted EBITDA was $33 million. The gross profit margin of 43% was better than expected due to moderating inflation.
- Revenue of $339 million was in line with the prior year period
- Gross profit margin of 43% was better than expected as inflation moderated
- Net income of $8 million and Adjusted EBITDA of $33 million
- Launching New Frontdoor Brand in the Second Quarter of 2023
Headline financials
Revenue & EPS history
Frontdoor · Revenue · Quarterly
$339M
Revenue by segment
Frontdoor · $340M total across 4 segments · Q4 2022
- Renewals$254M+7.6%74.7%
- Direct-to-Consumer (First-Year)$43M—12.6%
- Real Estate (First-Year)$31M—9.1%
- Non-warranty and other$12M-20.0%3.5%
Forward guidance
Full-Year 2023 Outlook: Revenue range of $1.70 billion to $1.74 billion, Gross profit margin range of 43% to 45%, Adjusted EBITDA range of $220 million to $240 million
Tailwinds
- Approximately 10% revenue growth in the renewals channel.
- Gross profit margin of 43% to 45%, which reflects prior pricing actions flowing through and a moderation of inflation.
- Capital expenditures of approximately $35 to 45 million, primarily consisting of technology investments.
- Adjusted EBITDA(2) of $220 million to $240 million.
- Annual effective tax rate of approximately 26%.
Headwinds
- Low double digit revenue decline in the direct-to-consumer channel.
- Nearly 20% revenue decline in the real estate channel.
- Number of home service plans is expected to decline in the mid to upper single digit rate.
- SG&A of $560 million to $585 million, which includes costs associated with marketing, technology and staffing related to the launch of the new Frontdoor brand.
- Ongoing sales pressure in our go-to-market home service plan channels as well as increased SG&A attributed to the launch of our Frontdoor brand.
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 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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