Frontdoor Inc

Latest Results (14.08.2024):

Revenue Growth

Frontdoor Inc. reported a 4% increase in revenue for the second quarter of 2024, reaching $542 million. This growth was driven by a 7% increase from price adjustments, which was partially offset by a 3% decline in volume. The company saw a 6% increase in renewal revenue, although real estate and direct-to-consumer revenues both decreased by 14% due to market challenges.

Gross Profit Margin

Frontdoor Inc. achieved a record high gross profit margin of 56% in the second quarter of 2024, an increase of 470 basis points. This improvement was primarily due to higher realized prices, a transition to higher service fees, and ongoing process improvement initiatives. The company continues to focus on enhancing its margin through strategic initiatives.

Net Income and Earnings

For the second quarter of 2024, Frontdoor Inc. reported a net income of $92 million, marking a 32% increase from the previous year. Diluted earnings per share also saw a significant rise, increasing by 38% to $1.18. The strong financial performance reflects the company's effective execution of its strategic initiatives.

Adjusted EBITDA

Frontdoor Inc.'s Adjusted EBITDA for the second quarter of 2024 was $158 million, a 31% increase compared to the same period in the previous year. This growth was attributed to higher revenue conversion, lower contract claims costs, and reduced sales and marketing expenses. The company continues to optimize its operations to drive profitability.

Share Repurchase Authorization

Frontdoor Inc.'s Board of Directors approved a new 3-year, $650 million share repurchase authorization, set to begin on September 4, 2024. This new authorization represents a 63% increase over the existing share repurchase plan. Year-to-date through July, the company has repurchased $83 million worth of shares under the current authorization.