frontdoor. Second-Quarter 2022 Earnings Webcast August 4, 2022 Today's Speakers Bill Cobb Chairman & Chief Executive Officer Brian Turcotte Senior Vice President & Chief Financial Officer Matt Davis Vice President Investor Relations & Treasurer 2 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 fut ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from to Commission file number 001-38617 ________________________________________________ Frontdoor, Inc. (Exact name of registrant as specified in its charter) Delaware 82-3871179 WASHINGTON, D.C. 20549 ________________________________________________ FORM 10-Q ________________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June ...

frontdoor. First-Quarter 2022 Earnings Webcast May 5, 2022 Today's Speakers Rex Tibbens President & Chief Executive Officer Brian Turcotte Senior Vice President & Chief Financial Officer Matt Davis Vice President Investor Relations & Treasurer 2 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 futu ...

Financial Performance - For the three months ended March 31, 2022, the company generated revenue of $351 million, net income of $2 million, and Adjusted EBITDA of $25 million, compared to $329 million, $5 million, and $36 million for the same period in 2021[86]. - Revenue for the three months ended March 31, 2022, was $351 million, a 7% increase from $329 million in the same period of 2021[111]. - Net income decreased by 69% to $2 million compared to $5 million in the prior year[122]. - Adjusted EBITDA was $25 million, down from $36 million, reflecting increased contract claims costs and higher operating expenses[123]. - Free cash flow for the three months ended March 31, 2022, was $39 million, down from $45 million in the same period of 2021, indicating a decline of approximately 13.3%[144]. Revenue Sources - 70% of the total operating revenue for Q1 2022 was derived from existing customer renewals, while 13% came from new home service plan sales related to real estate transactions and 13% from direct-to-consumer sales[87]. - Renewal revenue increased by $23 million (10%) to $247 million, while real estate revenue decreased by $11 million (20%) to $45 million[111]. Customer Metrics - The company had 2.2 million active home service plans across all 50 states and the District of Columbia as of March 31, 2022[85]. - The number of home service plans decreased by 3% to 2.19 million, and the customer retention rate declined to 74.1% from 75.1%[114]. - The company reported a customer retention rate calculated as the ratio of ending home service plans to the sum of beginning plans, new sales, and acquired accounts[106]. Cost and Expenses - Cost of services rendered rose to $207 million, an increase of 14% from $181 million, primarily due to inflationary pressures and contract claims costs[116]. - Selling and administrative expenses increased to $125 million, up 6% from $118 million, driven by higher sales and marketing costs[117]. Cash Flow and Liquidity - Cash and cash equivalents totaled $255 million as of March 31, 2022, down from $262 million at the end of 2021[127]. - Available liquidity was $340 million, consisting of $92 million in unrestricted cash and $248 million in borrowing capacity[127]. - Net cash provided from operating activities was $47 million for the three months ended March 31, 2022, compared to $52 million for the same period in 2021, reflecting a decrease of approximately 9.6%[137]. - Net cash used for investing activities was $8 million in Q1 2022, slightly higher than $7 million in Q1 2021[139]. - Net cash used for financing activities decreased significantly to $47 million in Q1 2022 from $105 million in Q1 2021, primarily due to reduced debt repayments[141]. Shareholder Actions - The company has repurchased 3,643,468 shares at an aggregate cost of $143 million under a three-year repurchase authorization of up to $400 million[130]. - Total shareholders' equity showed a deficit of $20 million as of March 31, 2022, compared to a surplus of $2 million as of December 31, 2021, primarily due to stock repurchases[146]. - The company repurchased a total of 3,643,468 outstanding shares at an aggregate cost of $143 million under its share repurchase program as of March 31, 2022[156]. Market Conditions - The ongoing COVID-19 pandemic has created uncertainty regarding its impact on the company's financial performance, with increased service-related costs expected due to higher home system usage[91]. - The company continues to monitor macroeconomic conditions, including inflation and labor availability, which may adversely affect demand for its services[89]. - The company is exposed to macroeconomic risks including inflation and global supply chain challenges, which could adversely impact future operations[147]. Operational Challenges - The company experienced challenges in customer retention due to industry-wide supply chain issues and inflation affecting contractor costs[95]. - Seasonal fluctuations significantly impact the company's revenue, with approximately 21% of revenue recognized in Q1 2021, driven by increased service requests during the pandemic[92]. - Deferred revenue increased during Q1 2022, reflecting a net contract liability related to customer revenue recognition[146]. Performance Metrics - Adjusted EBITDA margin is a key performance metric, defined as Adjusted EBITDA divided by revenue, which helps in comparing operating performance across periods[104]. - There were no material changes in internal control over financial reporting during the most recently completed fiscal quarter[150].

Financial Data and Key Metrics Changes - In 2021, the company achieved a revenue increase of 9%, marking the highest annual growth rate since going public, despite a 4% decline in real estate channel revenue [16][77] - Adjusted EBITDA rose by 11% to $300 million, with free cash flow exceeding $150 million [16][81] - The fourth quarter of 2021 saw a revenue increase of 5% to $340 million, driven by higher pricing and a shift to higher-priced products [50][92] Business Line Data and Key Metrics Changes - Revenue from the home service plan channels increased by 9% due to improved price realization and growth in renewed plans [78] - ProConnect revenue reached $23 million, while Streem generated $10 million in revenue for the year [80] - The real estate channel experienced a 4% decline in revenue, attributed to a lower number of home service plans sold [78] Market Data and Key Metrics Changes - The existing home sales market hit a 15-year high of 6.1 million units sold, but the company struggled to place products in real estate transactions due to low inventory levels [27][28] - The National Association of Realtors reported an all-time low of 850,000 unsold existing homes, equating to only 1.6 months of supply [28] - Forecasts for 2022 predict a 3% decline in existing home sales, continuing pressure on the real estate channel [29] Company Strategy and Development Direction - The company aims to enhance its digital-first service experience, focusing on remote diagnostics and troubleshooting [10][13] - Plans include expanding ProConnect and Streem to deepen market penetration and improve customer experience [11][12] - The company is committed to sustainability and has launched its first sustainability report, highlighting efforts to reduce environmental impact [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged inflationary pressures impacting financial performance, particularly in the second half of 2021 [18][54] - The company remains optimistic about long-term growth opportunities in the $500 billion home services industry [47] - Expectations for 2022 include revenue growth of approximately 6% to 8%, with a focus on dynamic pricing to mitigate inflationary costs [93][97] Other Important Information - The company repurchased over $100 million in shares as part of its strategy to return value to shareholders [17] - Full-year 2021 gross profit increased by 10% to $784 million, with a gross profit margin of 49% [81] - The company is targeting a mid-single-digit price increase in 2022 to address rising costs [68] Q&A Session Summary Question: Strategic priorities for capital allocation - Management emphasized the focus on growing demand in the core home service plan business and advancing technology platforms to enhance customer experience [105][106] Question: Impact of inflation on costs - Management discussed the significant rise in contractor costs and the impact of the Omicron variant on service requests, indicating a need for ongoing adjustments [109][110] Question: Scaling ProConnect and marketing learnings - The company plans to deepen service offerings in existing markets for ProConnect while leveraging marketing efficiencies across its channels [122][123]

Frontdoor, Inc. (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) WASHINGTON, D.C. 20549 ________________________________________________ FORM 10-K ________________________________________________ For the transition period from to Commission file number 001-38617 ________________________________________________ Delaware 82-3871179 150 Peabody Place, Memphis, ...

frontdoor. Third-Quarter 2021 Earnings Webcast October 28, 2021 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 about Frontdoor's plans, strategies and prospects. Forward-looking statements can be identified by the use of forward-looking terms such as "believe ...

Financial Data and Key Metrics Changes - Revenue increased by 7% year-over-year to $471 million, driven by higher pricing in home service plans and growth in ProConnect and Streem [26][30] - Gross profit rose by 18% to $254 million, with a gross profit margin of 54%, the highest in 15 years [31][32] - Adjusted net income increased by 55% to $78 million, and adjusted EBITDA was $122 million, exceeding guidance by over $20 million [32][46] Business Line Data and Key Metrics Changes - Revenue from customer renewals increased by 8% due to improved price realization and growth in renewed plans [27] - First-year real estate revenue decreased by 5% due to a decline in home service plans sold in a tight housing market [27] - Direct-to-consumer (D2C) channel revenue grew by 7%, attributed to improved pricing and the introduction of a new product mix [28][29] Market Data and Key Metrics Changes - The real estate market remains tight, with homes selling quickly and low inventory levels, impacting the sale of home service plans [14][15] - The D2C channel faced challenges due to lower customer demand and increased advertising costs, with a nearly 20% decline in internet search demand for home service plans [18][20] Company Strategy and Development Direction - The company aims to enhance customer experience through digital self-service options and a mobile-first strategy, including the launch of a new app [10][24] - Plans to expand into home maintenance and improvement services to attract a broader customer base [9] - The focus remains on balancing growth and profitability, particularly in the ProConnect business, while addressing challenges in the real estate channel [13][60] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about service request trends returning to pre-pandemic levels, with expectations for continued growth in the D2C channel [61] - The company anticipates ongoing challenges from inflation and supply chain disruptions, particularly affecting appliance trades [22][47] - A high single-digit revenue growth rate is projected for 2022, with expectations of continued pressure in the real estate channel [70][71] Other Important Information - The company has a solid liquidity position with $309 million in total cash and plans for a $400 million share repurchase program [41][42] - Adjusted EBITDA for the full year 2021 is expected to be between $310 million and $315 million, reflecting strong cost management [46] Q&A Session Summary Question: ProConnect revenue tracking and cost assumptions - Management confirmed ProConnect is on track to meet the $20 million revenue target, with expectations to double revenue in 2022 based on service mix [52][53] Question: Claims trends and expectations - Claims requests are trending close to pre-pandemic levels, with cautious optimism for Q4 and 2022 [60][61] Question: Labor shortages and inflation impact - Labor shortages are affecting contractors, but strong relationships with preferred providers are helping mitigate issues [66] Question: Revenue growth assumptions for 2022 - Revenue growth is expected to be similar to 2021, with challenges in the real estate channel anticipated [70][71] Question: Dynamic pricing impact on margins - Dynamic pricing contributed to improved margins, but process improvements and lower service requests were the main drivers [78][79] Question: Competitive environment and market share - The company believes its scale provides a competitive advantage, with opportunities for market share gains despite challenging conditions [87]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________________ FORM 10-Q ________________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38617 _______________________________ ...

Frontdoor, Inc. (NASDAQ:FTDR) Q2 2021 Earnings Conference Call August 4, 2021 4:30 PM ET Company Participants Matt Davis - Vice President of Investor Relations & Treasurer Rex Tibbens - Chief Executive Officer Brian Turcotte - Chief Financial Officer Conference Call Participants Nick Cronin - Truist Securities Ian Zaffino - Oppenheimer Matthew Gaudioso - Compass Point Michael Ng - Goldman Sachs Robert Coolbrith - Wells Fargo Securities Operator Ladies and gentlemen, welcome to Frontdoor's Second Quarter 202 ...