Frontdoor Inc (FTDR, Financial), the nation's leading provider of home service plans, announced its third-quarter 2023 results on November 1, 2023. The company reported an 8% increase in revenue, reaching $524 million. Gross profit margin expanded 760 basis points to 51%, and net income increased to $71 million. Adjusted EBITDA also saw a significant increase, rising to $128 million. Furthermore, the company repurchased $75 million of stock in 2023.
Financial Performance
Frontdoor Inc (FTDR, Financial) reported a 27% increase in gross profit, reaching $268 million. Net income saw a substantial increase of 154%, rising to $71 million. Diluted earnings per share increased by 158% to $0.89. Adjusted net income rose by 64% to $76 million, and adjusted diluted earnings per share increased by 66% to $0.94. Adjusted EBITDA increased by 61% to $128 million.
Revenue by Customer Channel
Third-quarter 2023 revenue increased by 8% to $524 million. Revenue from renewals saw a 14% increase, reaching $406 million. However, revenue from real estate and direct-to-consumer channels saw a decrease of 23% and 16% respectively. Other revenue saw a significant increase of 85%, reaching $24 million.
Cash Flow
Net cash provided from operating activities was $139 million for the nine months ended September 30, 2023. Net cash used for investing activities was $23 million, and net cash used for financing activities was $88 million. Free Cash Flow was $116 million for the nine months ended September 30, 2023. Cash as of September 30, 2023, was $320 million.
Company Outlook
Frontdoor Inc (FTDR, Financial) is raising its full-year 2023 outlook. The company's strategic objectives for 2024 are focused on increasing customer acquisitions across its two brands and advancing its retention efforts. The company is also stepping up its share repurchase target for 2023 as it continues to generate strong cash flows.
Conference Call Details
Frontdoor has scheduled a conference call on November 1, 2023, at 7:30 a.m. Central time (8:30 a.m. Eastern time). During the call, Chairman and Chief Executive Officer Bill Cobb, and Chief Financial Officer Jessica Ross, will discuss the company’s operational performance and financial results for third-quarter 2023.
Explore the complete 8-K earnings release (here) from Frontdoor Inc for further details.
