Frontdoor, Inc. · NASDAQ:FTDR
Frontdoor — Q3 2021 Earnings Presentation
17 slides from Frontdoor's earnings presentation, Oct 28, 2021
Slide 1: Third-Quarter 2021 Earnings Webcast
Third-Quarter 2021 Earnings Webcast October 28, 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: FTDR Vision Remains Strong
FTDR Vision Total Addressable Remains Strong Market Home • Vision is to redefine Maintenance home services space 21% • Near-term focus on ~$400B U.S. Home transforming customer 55% Services Market experience Home 24% Improvement • Well-positioned to Home Repair emerge as leader over time 4 Source: M
Slide 5: Unprecedented Real Estate Channel Market
Unprecedented Real Estate Channel Market National Median Days on Market 41 21 17 FY 2019 FY 2020 YTD 9/30 Total Existing Home Sales (in millions) 7 6 5 4 3 Jan-19 Jan-20 Jan-21 Oct-18 Apr-19 Jul-19 Oct-19 Apr-20 Jul-20 Oct-20 Apr-21 Jul-21 Dec 2018 2020 Oct 2018 Oct 2021 Dec 2019 Dec 5 Source: Natio
Slide 6: Business Update
Business Update • Real Estate Channel • Direct-to-Consumer Channel • Renewal Channel • ProConnect and Streem 6
Slide 7: Q3 2021 Financial Summary
Q3 2021 Financial Summary In millions Net Adjusted Revenue Income EBITDA(1) $471 $76 $122 (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 8: Q3 2021 Adjusted EBITDA Bridge
Q3 2021 Adjusted EBITDA(1) Bridge In millions Three Months Ended September 30, 2020 $91 Impact of change in revenue(2) 24 Contract claims costs(3) 16 Sales and marketing costs (7) Customer service costs 1 General and administrative costs (3) Other (1) Three Months Ended September 30, 2021 $122 Note:
Slide 9: Q3 2021 Cash Flow
Q3 2021 Cash Flow In millions In millions Nine Months Ended September 30, Free Cash Available Gross Debt Net cash provided from Flow(1) Liquidity(2) Reduction(3) 2021 2020 (used for): Operating Activities $142 $154 $119 $379 $350 Investing Activities (23) (25) Financing Activities (407) (6) (1} See
Slide 10: Q4 2021 and FY 2021 Outlook
Q4 2021 and FY 2021 Outlook Q4 2021 Outlook Q4 2020 Results Low High Revenue ($ millions) 323 330 340 Adjusted EBITDA ($ millions) (1)(2) 32 40 45 FY 2020 Results FY 2021 Outlook Revenue ($ billions) 1.47 1.59 1.60 Gross Profit Margin (%) 49 ~50 Adjusted EBITDA ($ millions) (1)(2) 270 310 315 Capita
Slide 11: Q&A
Q&A For more information please visit our website: frontdoorhome.com 11
Slide 12: Appendix
Frontdoor. APPENDIX
Slide 13: Q3 2021 Consolidated Results
Q3 2021 $ millions, except per share amounts Three Months Ended September 30, 2021 2020 Better / (Worse) Consolidated Revenue YoY Growth $ 471 $ 440 $ 31 7% Results Gross Profit % of revenue 254 54.0% 215 48.8% 40 5.2 pts Note: See elsewhere in this Appendix for a reconciliation of Adjusted Selling
Slide 14: YTD 2021 Consolidated Results
YTD 2021 $ millions, except per share amounts Nine Months End September 30, 2021 2020 Better / (Worse) Consolidated Revenue YoY Growth $ 1,263 $ 1,151 $ 111 10% Results Gross Profit % of revenue 644 51.0% 579 50.3% 65 0.7 pts Note: See elsewhere in this Appendix for a reconciliation of Adjusted Sell
Slide 15: Net Income to Adjusted EBITDA Reconciliations
Net Income to Adjusted EBITDA Reconciliations In millions Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net Income $ 76 $ 49 $ 122 $ 111 Depreciation and amortization expense 8 7 27 25 Restructuring charges — — 2 4 Provision for income taxes 25 16 39 37 Non-cas
Slide 16: Net Income to Adjusted EBITDA Reconciliations (Cont.)
Net Income to Adjusted EBITDA Reconciliations (Cont.) In millions Three Months Ended Year Ended December 31, December 31, 2020 2020 Net Income $ 2 $ 112 Depreciation and amortization expense 9 34 Restructuring charges 4 8 Provision for income taxes (1) 37 Non-cash stock-based compensation expense 4
Slide 17: 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, 2021 2020 2021 2020 Net Cash Provided from Operating Activities $ 23 $ 13 $ 142 $ 154 Property Additions (8) (8) (23) (26) Free Cash Flow $ 14 $ 5