Frontdoor, Inc. · NASDAQ:FTDR
Frontdoor — Q3 2020 Earnings Presentation
15 slides from Frontdoor's earnings presentation, Nov 4, 2020
Slide 1: Third-Quarter 2020 Earnings Webcast
Third-Quarter 2020 Earnings Webcast November 4, 2020
Slide 2: 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 2
Slide 3: Forward Looking Statements
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
Slide 4: Current Business Focus
Current Business Focus • Accelerating revenue growth • Expanding dynamic pricing • Addressing higher service request demand • Improving customer service • Growing emerging businesses 4
Slide 5: Streem
Streem Featured by Apple & Google Expanded partnerships Released software development kits 55
Slide 6: On-Demand
On-Demand Convenient Scheduling Pricing Transparency Savings Peace of Mind 6
Slide 7: Q3 2020 Financial Summary
Q3 2020 Financial Summary $ millions Net Adjusted Revenue Income EBITDA(1) $440 $49 $91 (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 in
Slide 8: Q3 2020 Adjusted EBITDA Bridge
Q3 2020 Adjusted EBITDA(1) Bridge $ millions Three Months Ended September 30, 2019 $106 Impact of change in revenue(2) 28 Contract claims costs (19) Sales and marketing costs (16) Customer service costs (6) General and administrative costs (1) Other (2) Three Months Ended September 30, 2020 $91 Note
Slide 9: Q3 2020 Cash Flow
Q3 2020 Cash Flow $ millions Nine Months Ended September 30, Net cash provided from 2020 2019 $ millions (used for): Operating Activities $154 $154 Free Cash Available Flow(1) Liquidity(2) Investing Activities (25) (19) Financing Activities (6) (6) $127 $624 Cash increase during $123 $129 the period
Slide 10: Q&A
Q&A For more information please visit our website: frontdoorhome.com 10
Slide 11: Appendix
=p Frontdoor. APPENDIX
Slide 12: Q3 2020 Consolidated Results
Q3 2020 $ millions, except per share amounts Three Months Ended September 30, Consolidated 2020 2019 Better / (Worse) Revenue $ 440 $ 407 $ 33 YoY Growth 8% Results Note: See elsewhere in this Appendix for a reconciliation of Adjusted Gross Profit % of revenue Selling and administrative expenses 215
Slide 13: YTD 2020 Consolidated Results
YTD 2020 Nine Months Ended $ millions, except per share amounts September 30, Consolidated 2020 2019 Better / (Worse) Revenue $ 1,151 $ 1,065 $ 86 YoY Growth 8% Results Gross Profit 579 539 40 % of revenue 50.3% 50.6% (0.3) pts Selling and administrative expenses 358 297 (61) Note: See elsewhere in
Slide 14: Net Income to Adjusted EBITDA Reconciliations
Net Income to Adjusted EBITDA Reconciliations $ millions Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net Income $ 49 $ 61 $ 111 $ 134 Depreciation and amortization expense 7 6 25 18 Restructuring charges — — 4 — Spin-off charges — — — 1 Provision for income t
Slide 15: Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations
Net Cash Provided from Operating Activities to Free Cash Flow Reconciliations $ millions Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net Cash Provided from Operating Activities $ 13 $ 14 $ 154 $ 154 Property Additions (8) (5) (26) (15) Free Cash Flow $ 5 $ 9