Frontdoor, Inc. (FTDR) Tops Q4 EPS by 7c, Revenues In-Line; Provides FY20 Revenue Outlook

Frontdoor, Inc. (NASDAQ: FTDR) reported Q4 EPS of $0.25, $0.07 better than the analyst estimate of $0.18. Revenue for the quarter came in at $300 million versus the consensus estimate of $300.18 million.

Fourth-Quarter 2019 Summary

• Revenue increased seven percent to $300 million
• Gross profit margin increased 170 basis points to 46 percent
• Net income increased 11 percent to $19 million
• Adjusted EBITDA increased three percent to $48 million
• Successfully launched Candu offering and completed Streem acquisition

“Last year was a foundational period for our company as we successfully improved business processes, launched Candu, our on-demand offering, and completed the acquisition of Streem,” said Chief Executive Officer Rex Tibbens. “In 2020, we will focus on driving top-line growth and providing new solutions to our customers, which will further strengthen our platform and provide long-term value for our stakeholders.”

“Our financial performance dramatically improved in 2019,” said Chief Financial Officer Brian Turcotte. “We increased Adjusted EBITDA by nearly 30 percent and generated $200 million in cash from operations. Our 2020 outlook reflects our commitment to grow the business, diversify our revenue streams and drive further process improvements.”

GUIDANCE:

Frontdoor, Inc. sees FY2020 revenue of $1.47-1.49 billion, versus the consensus of $1.48 billion.

• Gross profit margin is anticipated to range from 49 to 50 percent;
• Adjusted EBITDA(2) is anticipated to range from $300 million to $320 million;
• Capital expenditures are anticipated to range from $30 million to $40 million; and
• Annual Effective Tax Rate is anticipated to be approximately 25 percent.

Additionally, first-quarter 2020 Adjusted EBITDA(2) is anticipated to range from $40 million to $45 million.

For earnings history and earnings-related data on Frontdoor, Inc. (FTDR) click here.

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