Frontdoor, Inc. · NASDAQ:FTDR
Frontdoor — Q2 2021 Earnings Presentation
16 slides from Frontdoor's earnings presentation, Aug 4, 2021
Slide 1: Second-Quarter 2021 Earnings Webcast
Second-Quarter 2021 Earnings Webcast August 4, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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
Slide 3: Today's Speakers
Today’s Speakers Rex Tibbens Brian Turcotte Matt Davis President & Senior Vice President & Vice President Chief Executive Officer Chief Financial Officer Investor Relations & Treasurer 3
Slide 4: 2021 Objectives
2021 Objectives • Increase revenue growth trajectory • Focus on automation • Expand customer retention initiatives • Execute ProConnect & Streem strategies 4
Slide 5: Real Estate Channel Update
Real Estate Channel Update Existing Home Sales Market FTDR Response • Constrained home service plan • Direct-to-Consumer channel: sales due to strong sellers’ o New initiatives targeting home market buyers National Median Days on Market(1) o Incremental investment 52 46 • Real Estate channel: 40 41
Slide 6: Q2 2021 Financial Summary
Q2 2021 Financial Summary In millions Net Adjusted Revenue Income EBITDA(1) $462 $40 $114 (1) See the Appendix accompanying this presentation for a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the nearest U.S. GAAP measure. See “Reconciliations of Non-GAAP Financial Measures” included i
Slide 7: Q2 2021 Adjusted EBITDA Bridge
Q2 2021 Adjusted EBITDA(1) Bridge In millions Three Months Ended June 30, 2020 $100 Impact of change in revenue(2) 31 Contract claims costs (6) Sales and marketing costs (4) Customer service costs (3) General and administrative costs (3) Other (1) Three Months Ended June 30, 2021 $114 Note: Revenue
Slide 8: Q2 2021 Cash Flow
Q2 2021 Cash Flow In millions In millions Six Months Ended June 30, Free Cash Available Gross Debt Net cash provided from Flow(1) Liquidity(2) Reduction 2021 2020 (used for): Operating Activities $119 $140 $104 $398 ~$350 Investing Activities (15) (19) Financing Activities (378) (4) (1} See the Appe
Slide 9: Q3 2021 and FY 2021 Outlook
Q3 2021 and FY 2021 Outlook Q3 2021 Outlook Q3 2020 Results Low High Revenue ($ millions) 440 470 480 Adjusted EBITDA ($ millions) (1)(2) 91 95 105 FY 2021 Outlook FY 2020 Results Low High Revenue ($ billions) 1.47 1.60 1.62 Gross Profit Margin (%) 49 48 - 49 Adjusted EBITDA ($ millions) (1)(2) 270
Slide 10: Q&A
Q&A For more information please visit our website: frontdoorhome.com 10
Slide 11: Appendix
Frontdoor. APPENDIX
Slide 12: Q2 2021 Consolidated Results
Q2 2021 In millions, except per share amounts Three Months Ended June 30, 2021 2020 Better / (Worse) Consolidated Revenue YoY Growth $ 462 $ 417 $ 45 11% Results Gross Profit % of revenue Selling and administrative expenses 242 52.3% 136 218 52.1% 125 24 0.1 pts (11) Note: See elsewhere in this Appe
Slide 13: YTD 2021 Consolidated Results
YTD 2021 $ millions, except per share amounts Six Months Ended June 30, 2021 2020 Better / (Worse) Consolidated Revenue YoY Growth $ 791 $ 711 $ 80 11% Results Gross Profit % of revenue Selling and administrative expenses 390 49.2% 254 364 51.2% 229 25 (2) pts (24) Note: See elsewhere in this Append
Slide 14: Net Income to Adjusted EBITDA Reconciliations
Net Income to Adjusted EBITDA Reconciliations In millions Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net Income $ 40 $ 49 $ 45 $ 62 Depreciation and amortization expense 9 10 19 18 Restructuring charges 1 1 2 4 Provision for income taxes 14 17 15 21 Non-cash stock-base
Slide 15: Net Income to Adjusted EBITDA Reconciliations (Cont.)
Net Income to Adjusted EBITDA Reconciliations (Cont.) In millions Three Months Ended Twelve Months Ended September 30, December 31, 2020 2020 Net Income $ 49 $ 112 Depreciation and amortization expense 7 34 Restructuring charges — 8 Provision for income taxes 16 37 Non-cash stock-based compensation
Slide 16: Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations
Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations In millions Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net Cash Provided from Operating Activities $ 67 $ 80 $ 119 $ 140 Property Additions (8) (11) (15) (18) Free Cash Flow $ 59 $ 70 $ 104 $