Frontdoor Announces Third-Quarter 2020 Revenue Increase of 8 Percent to $440 Million; Home Service Plan Growth Accelerated to 4 Percent; Customer Retention Increased to 76 Percent; Expanded On-Demand Offering to 35 Cities

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[{"type":"text","content":"\n \n\n MEMPHIS, Tenn.--(BUSINESS WIRE)--\nFrontdoor, Inc. (NASDAQ: FTDR), the nation’s leading provider of home service plans, today announced third-quarter 2020 results.\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n \n\n\n\n\n\nFinancial Results\n\n\n\n\n\n \n\n\n\n \n\n\n\nThree Months Ended\n\n\n\n\n\n \n\n\n\n \n\n\n\nSeptember 30,\n\n\n\n\n\n$ millions (except as noted)\n\n\n\n \n\n\n\n2020\n\n\n\n \n\n\n\n2019\n\n\n\n \n\n\n\nChange\n\n\n\n\n\nRevenue\n\n\n\n \n\n\n\n$\n\n\n\n440\n\n\n\n \n\n\n\n$\n\n\n\n407\n\n\n\n \n\n\n\n8\n\n\n\n%\n\n\n\n\n\nGross Profit\n\n\n\n \n\n\n\n \n\n\n\n215\n\n\n\n \n\n\n\n \n\n\n\n206\n\n\n\n \n\n\n\n4\n\n\n\n%\n\n\n\n\n\nNet Income\n\n\n\n \n\n\n\n \n\n\n\n49\n\n\n\n \n\n\n\n \n\n\n\n61\n\n\n\n \n\n\n\n(20\n\n\n\n)%\n\n\n\n\n\nDiluted Earnings per Share\n\n\n\n \n\n\n\n \n\n\n\n0.57\n\n\n\n \n\n\n\n \n\n\n\n0.72\n\n\n\n \n\n\n\n(21\n\n\n\n)%\n\n\n\n\n\nAdjusted Net Income(1)\n\n\n\n \n\n\n\n \n\n\n\n50\n\n\n\n \n\n\n\n \n\n\n\n62\n\n\n\n \n\n\n\n(19\n\n\n\n)%\n\n\n\n\n\nAdjusted Diluted Earnings per Share(1)\n\n\n\n \n\n\n\n \n\n\n\n0.59\n\n\n\n \n\n\n\n \n\n\n\n0.73\n\n\n\n \n\n\n\n(19\n\n\n\n)%\n\n\n\n\n\nAdjusted EBITDA(1)\n\n\n\n \n\n\n\n \n\n\n\n91\n\n\n\n \n\n\n\n \n\n\n\n106\n\n\n\n \n\n\n\n(14\n\n\n\n)%\n\n\n\n\n\nHome Service Plans (number in millions)\n\n\n\n \n\n\n\n \n\n\n\n2.24\n\n\n\n \n\n\n\n \n\n\n\n2.15\n\n\n\n \n\n\n\n4\n\n\n\n%\n\n\n\n\nThird-Quarter 2020 Summary\n\n\nRevenue increased eight percent to $440 million \n\n\nGross profit margin of 49 percent \n\n\nNet income of $49 million \n\n\nAdjusted EBITDA of $91 million\n\n\nAvailable liquidity of $624 million\n\n\nStrong demand and retention initiatives resulted in better than expected revenue growth, improved customer retention to 76 percent and increased home service plan growth to 4 percent\n\n\nConsumers are spending more time at home due to COVID-19, which enhances the customer value proposition and results in higher near-term service request demand\n\n\nStreem’s augmented reality technology recently featured by Apple and Google; partnerships now include Lowe’s, Best Buy, British Gas and CLEAResult\n\n\nLaunched ProConnect and expanded on-demand offering to 35 cities; expect to c...

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