Business
Frontdoor Announces Third-Quarter 2021 Revenue Increase of 7 Percent to $471 Million
Gross Margin of 54 Percent Highest in Over 15 years; Net Income of $76 Million Adjusted EBITDA of $122 Million Acquired $25 Million in Stock Under New Share
About this update from Frontdoor, Inc.
[{"type":"text","content":"\nGross Margin of 54 Percent Highest in Over 15 years; Net Income of $76 Million\n\nAdjusted EBITDA of $122 Million\n\nAcquired $25 Million in Stock Under New Share Repurchase Program\n\n MEMPHIS, Tenn.--(BUSINESS WIRE)--\nFrontdoor, Inc. (NASDAQ: FTDR), the nation’s leading provider of home service plans, today announced third-quarter 2021 results.\n\n\n\nFinancial Results\n\n\n\n\n\n \n\n\n\n \n\n\n\nThree Months Ended\n\n\n\n\n\n \n\n\n\n \n\n\n\nSeptember 30,\n\n\n\n\n\n$ millions (except as noted)\n\n\n\n \n\n\n\n2021\n\n\n\n \n\n\n\n2020\n\n\n\n \n\n\n\nChange\n\n\n\n\n\nRevenue\n\n\n\n \n\n\n\n$\n\n\n\n471\n\n\n\n \n\n\n\n$\n\n\n\n440\n\n\n\n \n\n\n\n7\n\n\n\n%\n\n\n\n\n\nGross Profit\n\n\n\n \n\n\n\n \n\n\n\n254\n\n\n\n \n\n\n\n \n\n\n\n215\n\n\n\n \n\n\n\n18\n\n\n\n%\n\n\n\n\n\nNet Income\n\n\n\n \n\n\n\n \n\n\n\n76\n\n\n\n \n\n\n\n \n\n\n\n49\n\n\n\n \n\n\n\n56\n\n\n\n%\n\n\n\n\n\nDiluted Earnings per Share\n\n\n\n \n\n\n\n \n\n\n\n0.89\n\n\n\n \n\n\n\n \n\n\n\n0.57\n\n\n\n \n\n\n\n56\n\n\n\n%\n\n\n\n\n\nAdjusted Net Income(1)\n\n\n\n \n\n\n\n \n\n\n\n78\n\n\n\n \n\n\n\n \n\n\n\n50\n\n\n\n \n\n\n\n55\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\n0.91\n\n\n\n \n\n\n\n \n\n\n\n0.59\n\n\n\n \n\n\n\n55\n\n\n\n%\n\n\n\n\n\nAdjusted EBITDA(1)\n\n\n\n \n\n\n\n \n\n\n\n122\n\n\n\n \n\n\n\n \n\n\n\n91\n\n\n\n \n\n\n\n34\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\n2.23\n\n\n\n \n\n\n\n \n\n\n\n2.24\n\n\n\n \n\n\n\n—\n\n\n\n%\n\n\n\n\nThird-Quarter 2021 Summary\n\n\nRevenue increased 7 percent to $471 million as continued growth in the renewal and direct-to-consumer channels offset an unprecedented challenging real estate channel environment; includes greater contribution from ProConnect and Streem as they continue to expand off a small base\n\n\nQuarterly gross profit margin of 54 percent; increase of approximately 500 basis points over the prior year period due to a lower number of service requests and process improvement benefits\n\n\nQuarterly net income of $76 million; 56 percent increase over the prior year period\n\n\nRecord quarterly Adjusted EBITDA of $122 million; 34 percent increase over the prior year period\n\n\nCustomer retention of 74 percent; declined from 75 percent in the second quarter of 2021\n\n\nLaunched three-year, $400 million s...