Frontdoor ( (FTDR) ) has released its Q4 earnings. Here is a breakdown of the information Frontdoor presented to its investors.
Frontdoor, Inc. is a leading provider of home warranties and on-demand home repair services, operating primarily in the home services industry. The company is known for its brands, American Home Shield and 2-10 Home Buyers Warranty, and serves over two million members across the United States.
Frontdoor reported record financial results for the full year 2024, with revenue increasing by 4% to $1.84 billion and a significant 37% rise in net income to $235 million. The company also completed a major acquisition of 2-10 Home Buyers Warranty and secured a $1.47 billion credit facility, further strengthening its market position.
Key financial highlights include a 12% increase in gross profit to $991 million and a 28% rise in adjusted EBITDA to $443 million. The company also repurchased approximately 4 million shares, utilizing $160 million. The acquisition of 2-10 Home Buyers Warranty contributed to a 6% increase in the number of home warranties, enhancing Frontdoor’s service offerings.
Looking ahead, Frontdoor projects revenue growth of approximately 10% for 2025, driven by the integration of 2-10 and strategic initiatives to expand its non-warranty services. The company aims to maintain a gross profit margin between 51.5% and 53%, despite anticipated cost inflation and increased service requests.
Frontdoor’s management remains optimistic about the future, focusing on long-term growth in home warranty membership and optimizing the integration of 2-10. The company is committed to delivering shareholder value through strategic investments and continued operational improvements.