UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________________ FORM 10-K ________________________________________________ For the transition period from to Commission file number 001-38617 ________________________________________________ Frontdoor, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) Delaware 82-3871179 3400 Players Club Parkway, M ...

frontdoor. Third-Quarter 2022 Earnings Webcast November 3, 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 fu ...

Financial Data and Key Metrics Changes - Third quarter revenue increased by 3% year-over-year to $484 million, driven by a 5% increase from pricing and changes in customer product mix, which offset a 3% decline in customer volume [22][23] - Gross profit declined by 17% year-over-year to $210 million, with a gross profit margin of 43%, primarily due to a $58 million increase in contract claims costs driven by inflationary pressures [25][26] - Net income decreased by $48 million to $28 million, influenced by the gross profit decline and a $14 million goodwill and intangibles impairment charge [26][28] - Adjusted net income decreased by $32 million to $46 million, with adjusted EBITDA at $79 million, down $42 million from the prior year [28] Business Line Data and Key Metrics Changes - Revenue from customer renewals increased by 8% year-over-year due to improved price realization and growth in renewed Home Service Plans [22] - First-year real estate revenue decreased by 30% year-over-year, reflecting challenges in the seller's market and low home inventory levels [23] - First-year DTC revenue increased by 8% year-over-year, with 11% growth from improved price realization, partially offset by a 3% decline in volume [24] Market Data and Key Metrics Changes - Existing home sales declined nearly 24% year-over-year, with inventory increasing to 3.2 months of supply from 2.4 months in the prior year [16] - The company is monitoring the level of existing home sales closely as a significant decline could shrink the potential pool for Home Service Plan purchases [18] Company Strategy and Development Direction - The company is focused on rebuilding its core Home Service Plan business, improving execution, and reducing SG&A expenses, with a 7% workforce reduction implemented [11][12] - A pricing strategy targeting a 12% to 13% price increase for 2022 is in place, with an 8% realized price increase so far [20][21] - The company is working on business transformation initiatives and enhancing customer experience through consumer segmentation studies [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment but sees signs of improvement as they close out 2022 [21] - The company expects fourth quarter revenue to be between $326 million and $336 million, reflecting a mid-single-digit increase in renewal channel revenue [39] - Full year revenue is projected to be between $1.65 billion and $1.66 billion, with a nearly 30% decrease in the real estate channel [40] Other Important Information - The company has raised its full year adjusted EBITDA range to between $185 million and $195 million, reflecting ongoing inflationary pressures [45] - Free cash flow is projected to be approximately $85 million for the year, with a cash position of $244 million at the end of the third quarter [38] Q&A Session Summary Question: Pricing strategy and its benefits - Management confirmed that the realized price increase for 2022 will be 8% and discussed the complexities of revenue recognition [51] Question: Contract claims costs and inflation - Management indicated that inflation from contractors is stabilizing, with the inflation rate on a service request basis remaining consistent with the previous quarter [53][54] Question: 2023 outlook for renewals and DTC channel - Management is not ready to discuss 2023 but will provide more information in March [56] Question: On-demand offering and SG&A reductions - Management expressed optimism about the on-demand business and detailed the areas of SG&A reductions, including workforce optimization and marketing spend [60][62] Question: Lower service request volume - Management attributed lower service request volume to favorable HVAC conditions and a decline in pandemic-related trades [75] Question: Customer satisfaction trends - Management reported stable customer satisfaction metrics and improvements in service operations [88] Question: Home Service Plans in a buyer's market - Management noted that they are not yet in a position to quantify the potential uplift from the shift to a buyer's market [92] Question: Revamped marketing strategy - Management outlined a comprehensive marketing strategy focusing on renewals, conversion, and targeted promotions to drive better outcomes [100]

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, 2022 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 2022 Earnings Conference Call August 4, 2022 8:30 AM ET Company Participants Matt Davis - Vice President, Investor Relations and Treasurer Bill Cobb - Chairman and CEO Brian Turcotte - Chief Financial Officer Conference Call Participants Ian Zaffino - Oppenheimer Youssef Squali - Truist Securities Justin Patterson - KeyBanc Eric Sheridan - Goldman Sachs Brian Fitzgerald - Wells Fargo Operator Ladies and gentlemen, welcome to Frontdoor's Second Quarter 2022 Earnings Call. [Op ...

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]