Frontdoor Announces Record Third-Quarter 2024 Results
Revenue Increased 3% to
Net Income Increased 40% to
Repurchased
Launched New American Home
2-10 Acquisition Remains on Track to Close in the Fourth Quarter of 2024
Financial Results |
|
|||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|||||||||
(In millions except as noted) |
|
2024 |
|
|
2023 |
|
|
Change |
|
|||
Revenue |
|
$ |
540 |
|
|
$ |
524 |
|
|
|
3 |
% |
Gross Profit |
|
|
306 |
|
|
|
268 |
|
|
|
14 |
% |
Net Income |
|
|
100 |
|
|
|
71 |
|
|
|
40 |
% |
Diluted Earnings per Share |
|
|
1.30 |
|
|
|
0.89 |
|
|
|
47 |
% |
Adjusted Net Income(1) |
|
|
106 |
|
|
|
76 |
|
|
|
40 |
% |
Adjusted Diluted Earnings per Share(1) |
|
|
1.38 |
|
|
|
0.94 |
|
|
|
46 |
% |
Adjusted EBITDA(1) |
|
|
165 |
|
|
|
128 |
|
|
|
29 |
% |
Home Warranties (number in millions) |
|
|
1.95 |
|
|
|
2.04 |
|
|
|
(4 |
)% |
Third-Quarter 2024 Summary
-
Revenue increased 3% to
$540 million and was comprised of a 4% increase from price that was partly offset by a 1% decline from lower volume - The number of first year Direct-to-Consumer home warranties grew 3% over Q2 2024 to 271k
- Gross profit margin increased 550 basis points to 57% primarily as a result of higher realized price, a lower number of service requests per customer, a transition to higher service fees and continued process improvement initiatives
-
Net Income and Diluted Earnings Per Share increased 40% to
$100 million and 47% to$1.30 , respectively -
Adjusted EBITDA(1) increased 29% to
$165 million -
Frontdoor completed its prior$400 million share repurchase authorization, which included$119 million of share repurchases year-to-date through August -
Established new 3-year,
$650 million share repurchase authorization onSeptember 4, 2024
Updated Full-Year 2024 Outlook
-
Increasing revenue outlook from a midpoint of
$1.825 to approximately$1.830 billion - Increasing gross profit margin outlook from slightly above 51% to approximately 53%
-
Increasing Adjusted EBITDA(2) outlook from a midpoint of
$390 to approximately$430 million
“We have dramatically improved our operations over the last two years and are on pace for a record year of financial performance," said Chairman and Chief Executive Officer
"Frontdoor’s financial position has never been stronger," said Chief Financial Officer
Third-Quarter 2024 Results
Revenue by Customer Channel |
|
|||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|||||||||
(In millions) |
|
2024 |
|
|
2023 |
|
|
Change |
|
|||
Renewals |
|
$ |
422 |
|
|
$ |
406 |
|
|
|
4 |
% |
Real estate (First-Year) |
|
|
36 |
|
|
|
40 |
|
|
|
(10 |
)% |
Direct-to-consumer (First-Year) |
|
|
49 |
|
|
|
54 |
|
|
|
(10 |
)% |
Other |
|
|
34 |
|
|
|
24 |
|
|
|
41 |
% |
Total |
|
$ |
540 |
|
|
$ |
524 |
|
|
|
3 |
% |
Third-quarter 2024 revenue increased 3% to
- Renewal revenue increased 4% due to improved price realization that was partially offset by lower volume;
- Real estate revenue and direct-to-consumer revenue both decreased 10%, primarily due to a cyclical decline in home warranty sales as a result of the challenging real estate market and the impact of inflation on consumer sentiment;
- Other revenue increased 41% due to higher on-demand home services, primarily new HVAC sales.
Third-quarter 2024 net income increased 40% to
Period-over-Period Adjusted EBITDA(1) Bridge
(In millions) |
|
|
|
|
|
Three Months Ended |
|
$ |
|
128 |
|
Impact of change in revenue |
|
|
|
17 |
|
Contract claims costs |
|
|
|
21 |
|
Sales and marketing costs |
|
|
|
1 |
|
General and administrative costs |
|
|
|
(3 |
) |
Interest and net investment income |
|
|
|
1 |
|
Other |
|
|
|
1 |
|
Three Months Ended |
|
$ |
|
165 |
|
Third-quarter 2024 Adjusted EBITDA(1) of
-
$17 million from higher revenue conversion(3), as price increases were partly offset by lower volume; -
$21 million of lower contract claims costs(4), excluding the impact of claims costs related to the change in revenue. The decrease in contract claims costs primarily reflects:-
A lower number of customer service requests per customer primarily driven by
$14 million of favorable weather; - A transition to higher service fees;
- Continued process improvement initiatives;
-
Favorable claims cost development of
$3 million , compared to a$9 million favorable claims cost development in the third quarter of 2023; partially offset by - Normal inflation across our contractor network, replacement parts and equipment.
-
A lower number of customer service requests per customer primarily driven by
-
$3 million of higher G&A costs primarily due to increased professional fees and personnel costs.
Cash Flow
|
|
Nine Months Ended |
|
|||||||
|
|
|
|
|||||||
(In millions) |
|
2024 |
|
|
2023 |
|
||||
Net cash provided from (used for): |
|
|
|
|
|
|
|
|
||
Operating activities |
|
$ |
|
212 |
|
|
$ |
|
139 |
|
Investing activities |
|
|
|
(31 |
) |
|
|
|
(23 |
) |
Financing activities |
|
|
|
(131 |
) |
|
|
|
(88 |
) |
Cash increase during the period |
|
$ |
|
50 |
|
|
$ |
|
28 |
|
Net cash provided from operating activities was a record
Net cash used for investing activities was
Net cash used for financing activities was
Free Cash Flow(1) increased 56% to a record of
Cash as of
Capital Allocation Update
-
In August, the company completed its previous 3-year,
$400 million share repurchase authorization. This included$119 million to repurchase 3.2 million shares year-to-date through August. -
Frontdoor is now operating under a new 3-year,$650 million share repurchase authorization that beganSeptember 4, 2024 , a 63% increase over the prior authorization.
Fourth-Quarter 2024 Outlook
-
Revenue of approximately
$367 million . -
Adjusted EBITDA(2) of approximately
$36 million .
Updated Full-Year 2024 Outlook
-
Increasing revenue from a midpoint of
$1.825 to approximately$1.830 billion . Key assumptions:- A mid-single digit increase in renewals channel revenue.
- An approximately 15% decline in both direct-to-consumer and real estate channel revenue.
- An approximately 40% increase in other revenue, which is primarily driven by the new HVAC program.
- The number of home warranties is expected to decline approximately 4%.
- Increasing gross profit margin from slightly above 51% to approximately 53%.
-
Decreasing SG&A to approximately
$605 million . This includes an estimated$15 million of acquisition-related costs related to closing the 2-10 acquisition, which is excluded from Adjusted EBITDA. -
Increasing Adjusted EBITDA(2) from a midpoint of
$390 to approximately$430 million . -
Capital expenditures of approximately
$40 million . - Annual effective tax rate of approximately 25%.
Third-Quarter 2024 Earnings Conference Call
The call will be available for replay for approximately 60 days. To access the replay of this call, please call 877-481-4010 and enter conference passcode 51429 (international participants: 919-882-2331, conference passcode 51429). To view a replay of the webcast, visit the company’s https://investors.frontdoorhome.com.
About
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, projected future performance and any statements about Frontdoor’s plans, strategies and prospects as well as statements with respect to the proposed acquisition of 2-10
Non-GAAP Financial Measures
To supplement Frontdoor’s results presented in accordance with accounting principles generally accepted in
We define "Adjusted EBITDA" as net income before depreciation and amortization expense; goodwill and intangibles impairment; restructuring charges; acquisition-related costs; provision for income taxes; non-cash stock-based compensation expense; interest expense; loss on extinguishment of debt; and other non-operating expenses. We believe Adjusted EBITDA is useful for investors, analysts and other interested parties as it facilitates company-to-company operating performance comparisons by excluding potential differences caused by variations in capital structures, taxation, the age and book depreciation of facilities and equipment, restructuring and acquisition initiatives and equity-based, long-term incentive plans.
We define “Free Cash Flow” as net cash provided from operating activities less property additions. Free Cash Flow is not a measurement of our financial performance or liquidity under
We define “Adjusted Net Income” as net income before: amortization expense; restructuring charges; loss on extinguishment of debt; other non-operating expenses; and the tax impact of the aforementioned adjustments. We believe Adjusted Net Income is useful for investors, analysts and other interested parties as it facilitates company-to-company operating performance comparisons by excluding potential differences caused by items listed in this definition.
We define “Adjusted Diluted Earnings per Share” as Adjusted Net Income divided by the weighted-average diluted common shares outstanding.
We define “Unrestricted Cash” as cash not subject to third-party restrictions. For additional information related to our third-party restrictions, see “Liquidity and Capital Resources — Liquidity” under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2023 Annual Report on Form 10-K filed with the
See the schedules attached hereto for additional information and reconciliations of such non-GAAP financial measures. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors’ evaluation of Frontdoor’s business performance and are useful for period-over-period comparisons of the performance of Frontdoor’s business. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with
© 2024
(1) |
See “Reconciliations of Non-GAAP Financial Measures” accompanying this release for a reconciliation of Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Diluted Earnings per Share, each a non-GAAP measure, to the nearest GAAP measure. See “Non-GAAP Financial Measures” included in this release for descriptions of calculations of these measures. Amounts presented in the reconciliations and other tables presented herein may not sum due to rounding. |
|
(2) |
A reconciliation of the forward-looking fourth-quarter and full-year 2024 Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. |
|
(3) |
Revenue conversion includes the impact of the change in the number of home warranties as well as the impact of year-over-year price changes. The impact of the change in the number of home warranties considers the associated revenue on those plans less an estimate of contract claims costs based on margin experience in the prior year period. |
|
(4) |
Contract claims costs includes the impact of changes in service request incidence, inflation and other drivers associated with the number of home warranties in the prior year period. The impact on contract claims costs resulting from year-over-year changes in the number of home warranties is included in revenue conversion above. |
|
||||||||||||||||||||
Consolidated Statements of Operations and Comprehensive Income (Unaudited) |
||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||||
Revenue |
|
$ |
|
540 |
|
|
$ |
|
524 |
|
|
$ |
|
1,461 |
|
|
$ |
|
1,414 |
|
Cost of services rendered |
|
|
|
235 |
|
|
|
|
256 |
|
|
|
|
655 |
|
|
|
|
706 |
|
Gross Profit |
|
|
|
306 |
|
|
|
|
268 |
|
|
|
|
806 |
|
|
|
|
708 |
|
Selling and administrative expenses |
|
|
|
154 |
|
|
|
|
152 |
|
|
|
|
456 |
|
|
|
|
439 |
|
Depreciation and amortization expense |
|
|
|
10 |
|
|
|
|
9 |
|
|
|
|
28 |
|
|
|
|
28 |
|
Restructuring charges |
|
|
|
3 |
|
|
|
|
5 |
|
|
|
|
5 |
|
|
|
|
6 |
|
Interest expense |
|
|
|
10 |
|
|
|
|
10 |
|
|
|
|
29 |
|
|
|
|
30 |
|
Interest and net investment income |
|
|
|
(5 |
) |
|
|
|
(4 |
) |
|
|
|
(15 |
) |
|
|
|
(12 |
) |
Income before Income Taxes |
|
|
|
134 |
|
|
|
|
96 |
|
|
|
|
303 |
|
|
|
|
217 |
|
Provision for income taxes |
|
|
|
34 |
|
|
|
|
24 |
|
|
|
|
77 |
|
|
|
|
54 |
|
Net Income |
|
$ |
|
100 |
|
|
$ |
|
71 |
|
|
$ |
|
226 |
|
|
$ |
|
163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other Comprehensive (Loss) Income, Net of Income Taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized (loss) gain on derivative instruments, net of income taxes |
|
|
|
(4 |
) |
|
|
|
— |
|
|
|
|
(3 |
) |
|
|
|
2 |
|
Total Other Comprehensive (Loss) Income, Net of Income Taxes |
|
|
|
(4 |
) |
|
|
|
— |
|
|
|
|
(3 |
) |
|
|
|
2 |
|
Comprehensive Income |
|
$ |
|
97 |
|
|
$ |
|
72 |
|
|
$ |
|
223 |
|
|
$ |
|
164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
|
1.32 |
|
|
$ |
|
0.89 |
|
|
$ |
|
2.92 |
|
|
$ |
|
2.01 |
|
Diluted |
|
$ |
|
1.30 |
|
|
$ |
|
0.89 |
|
|
$ |
|
2.90 |
|
|
$ |
|
2.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
|
76.2 |
|
|
|
|
80.1 |
|
|
|
|
77.4 |
|
|
|
|
81.0 |
|
Diluted |
|
|
|
77.1 |
|
|
|
|
80.6 |
|
|
|
|
78.0 |
|
|
|
|
81.3 |
|
|
||||||||||
Condensed Consolidated Statements of Financial Position (Unaudited) |
||||||||||
(In millions, except share data) |
||||||||||
|
|
As of |
|
|||||||
|
|
|
|
|
|
|
||||
|
|
2024 |
|
|
2023 |
|
||||
Assets: |
|
|
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
|
375 |
|
|
$ |
|
325 |
|
Receivables, less allowance of |
|
|
|
6 |
|
|
|
|
6 |
|
Prepaid expenses and other current assets |
|
|
|
28 |
|
|
|
|
32 |
|
Contract assets |
|
|
|
75 |
|
|
|
|
— |
|
Total Current Assets |
|
|
|
484 |
|
|
|
|
363 |
|
Other Assets: |
|
|
|
|
|
|
|
|
||
Property and equipment, net |
|
|
|
68 |
|
|
|
|
60 |
|
|
|
|
|
503 |
|
|
|
|
503 |
|
Intangible assets, net |
|
|
|
141 |
|
|
|
|
143 |
|
Operating lease right-of-use assets |
|
|
|
8 |
|
|
|
|
3 |
|
Deferred customer acquisition costs |
|
|
|
10 |
|
|
|
|
12 |
|
Other assets |
|
|
|
3 |
|
|
|
|
5 |
|
Total Assets |
|
$ |
|
1,217 |
|
|
$ |
|
1,089 |
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
|
|
||
Accounts payable |
|
$ |
|
91 |
|
|
$ |
|
76 |
|
Accrued liabilities: |
|
|
|
|
|
|
|
|
||
Payroll and related expenses |
|
|
|
29 |
|
|
|
|
38 |
|
Home warranty claims |
|
|
|
73 |
|
|
|
|
76 |
|
Other |
|
|
|
42 |
|
|
|
|
22 |
|
Deferred revenue |
|
|
|
89 |
|
|
|
|
102 |
|
Current portion of long-term debt |
|
|
|
17 |
|
|
|
|
17 |
|
Total Current Liabilities |
|
|
|
341 |
|
|
|
|
331 |
|
Long-Term Debt |
|
|
|
565 |
|
|
|
|
577 |
|
Other Long-Term Liabilities: |
|
|
|
|
|
|
|
|
||
Deferred tax liabilities, net |
|
|
|
24 |
|
|
|
|
25 |
|
Operating lease liabilities |
|
|
|
21 |
|
|
|
|
16 |
|
Other long-term liabilities |
|
|
|
6 |
|
|
|
|
5 |
|
Total Other Long-Term Liabilities |
|
|
|
50 |
|
|
|
|
46 |
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
||
Shareholders' Equity: |
|
|
|
|
|
|
|
|
||
Common stock, |
|
|
|
1 |
|
|
|
|
1 |
|
Additional paid-in capital |
|
|
|
139 |
|
|
|
|
117 |
|
Retained earnings |
|
|
|
522 |
|
|
|
|
296 |
|
Accumulated other comprehensive income |
|
|
|
2 |
|
|
|
|
6 |
|
Less treasury stock, at cost; 11,411,148 shares as of |
|
|
|
(403 |
) |
|
|
|
(283 |
) |
Total Shareholders' Equity |
|
|
|
261 |
|
|
|
|
136 |
|
Total Liabilities and Shareholders' Equity |
|
$ |
|
1,217 |
|
|
$ |
|
1,089 |
|
|
||||||||||
Consolidated Statements of Cash Flows (Unaudited) |
||||||||||
(In millions) |
||||||||||
|
|
Nine Months Ended |
|
|||||||
|
|
|
|
|||||||
|
|
2024 |
|
|
2023 |
|
||||
Cash and Cash Equivalents at Beginning of Period |
|
$ |
|
325 |
|
|
$ |
|
292 |
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
||
Net Income |
|
|
|
226 |
|
|
|
|
163 |
|
Adjustments to reconcile net income to net cash provided from operating activities: |
|
|
|
|
|
|
|
|
||
Depreciation and amortization expense |
|
|
|
28 |
|
|
|
|
28 |
|
Deferred income tax benefit |
|
|
|
— |
|
|
|
|
(12 |
) |
Stock-based compensation expense |
|
|
|
20 |
|
|
|
|
21 |
|
Restructuring charges |
|
|
|
5 |
|
|
|
|
6 |
|
Payments for restructuring charges |
|
|
|
(3 |
) |
|
|
|
(3 |
) |
Other |
|
|
|
2 |
|
|
|
|
5 |
|
Changes in working capital: |
|
|
|
|
|
|
|
|
||
Receivables |
|
|
|
— |
|
|
|
|
(1 |
) |
Prepaid expenses and other current assets |
|
|
|
(74 |
) |
|
|
|
(70 |
) |
Accounts payable |
|
|
|
14 |
|
|
|
|
7 |
|
Deferred revenue |
|
|
|
(12 |
) |
|
|
|
(22 |
) |
Accrued liabilities |
|
|
|
(11 |
) |
|
|
|
(2 |
) |
Current income taxes |
|
|
|
18 |
|
|
|
|
22 |
|
Net Cash Provided from Operating Activities |
|
|
|
212 |
|
|
|
|
139 |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
|
(31 |
) |
|
|
|
(23 |
) |
|
|
|
|
(31 |
) |
|
|
|
(23 |
) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
||
Repayments of debt |
|
|
|
(13 |
) |
|
|
|
(13 |
) |
Repurchase of common stock |
|
|
|
(120 |
) |
|
|
|
(76 |
) |
Other financing activities |
|
|
|
2 |
|
|
|
|
— |
|
|
|
|
|
(131 |
) |
|
|
|
(88 |
) |
Cash Increase During the Period |
|
|
|
50 |
|
|
|
|
28 |
|
Cash and Cash Equivalents at End of Period |
|
$ |
|
375 |
|
|
$ |
|
320 |
|
Reconciliations of Non-GAAP Financial Measures |
||||||||||||||||
The following table presents reconciliations of Net Income to Adjusted Net Income. |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
(In millions, except per share amounts) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net Income |
|
$ |
100 |
|
|
$ |
71 |
|
|
$ |
226 |
|
|
$ |
163 |
|
Amortization expense |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
3 |
|
Acquisitions-related Costs |
|
|
3 |
|
|
|
— |
|
|
|
9 |
|
|
|
— |
|
Restructuring Charges |
|
|
3 |
|
|
|
5 |
|
|
|
5 |
|
|
|
6 |
|
Tax Impact of Adjustments |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
Adjusted Net Income |
|
$ |
106 |
|
|
$ |
76 |
|
|
$ |
240 |
|
|
$ |
170 |
|
Adjusted Earnings per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.39 |
|
|
$ |
0.95 |
|
|
$ |
3.11 |
|
|
$ |
2.10 |
|
Diluted |
|
$ |
1.38 |
|
|
$ |
0.94 |
|
|
$ |
3.08 |
|
|
$ |
2.09 |
|
Weighted-average Common Shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
76.2 |
|
|
|
80.1 |
|
|
|
77.4 |
|
|
|
81.0 |
|
Diluted |
|
|
77.1 |
|
|
|
80.6 |
|
|
|
78.0 |
|
|
|
81.3 |
|
The following table presents reconciliations of net cash provided from operating activities to Free Cash Flow.
|
|
Nine Months Ended |
|
|||||||
|
|
|
|
|||||||
(In millions) |
|
2024 |
|
|
2023 |
|
||||
Net cash provided from operating activities |
|
$ |
|
212 |
|
|
$ |
|
139 |
|
Property additions |
|
|
|
(31 |
) |
|
|
|
(23 |
) |
Free Cash Flow |
|
$ |
|
181 |
|
|
$ |
|
116 |
|
The following table presents reconciliations of net income to Adjusted EBITDA.
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
(In millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||||
Net Income |
|
$ |
|
100 |
|
|
$ |
|
71 |
|
|
$ |
|
226 |
|
|
$ |
|
163 |
|
Depreciation and amortization expense |
|
|
|
10 |
|
|
|
|
9 |
|
|
|
|
28 |
|
|
|
|
28 |
|
Restructuring charges |
|
|
|
3 |
|
|
|
|
5 |
|
|
|
|
5 |
|
|
|
|
6 |
|
Acquisition-related costs |
|
|
|
3 |
|
|
|
|
— |
|
|
|
|
9 |
|
|
|
|
— |
|
Provision for income taxes |
|
|
|
34 |
|
|
|
|
24 |
|
|
|
|
77 |
|
|
|
|
54 |
|
Non-cash stock-based compensation expense |
|
|
|
6 |
|
|
|
|
8 |
|
|
|
|
20 |
|
|
|
|
21 |
|
Interest expense |
|
|
|
10 |
|
|
|
|
10 |
|
|
|
|
29 |
|
|
|
|
30 |
|
Adjusted EBITDA |
|
$ |
|
165 |
|
|
$ |
|
128 |
|
|
$ |
|
394 |
|
|
$ |
|
302 |
|
Key Business Metrics |
|||||||||
|
|
As of |
|
|
|||||
|
|
2024 |
|
|
2023 |
|
|
||
Number of home warranties (in millions) |
|
|
1.95 |
|
|
|
2.04 |
|
|
Renewals |
|
|
1.50 |
|
|
|
1.55 |
|
|
First-Year Direct-To-Consumer |
|
|
0.27 |
|
|
|
0.28 |
|
|
|
|
|
0.18 |
|
|
|
0.20 |
|
|
Reduction in number of home warranties |
|
|
(4 |
) |
% |
|
(6 |
) |
% |
Customer retention rate(1) |
|
|
77.7 |
|
% |
|
76.2 |
|
% |
(1) |
Customer retention rate is presented on a rolling 12-month basis in order to avoid seasonal anomalies. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104789637/en/
Investor Relations:
901.701.5199
ir@frontdoorhome.com
Media:
901.701.5198
mediacenter@frontdoorhome.com
Source: