Frontdoor, Inc. Provides Earnings Guidance for the Fourth Quarter and Full Year of 2022
November 03, 2022 at 08:05 am EDT
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Frontdoor, Inc. provided earnings guidance for the fourth quarter and full year of 2022. For the quarter, the company expects Revenue of $326 million to $336 million, reflecting a mid-single digit increase in renewal revenue versus the prior year period that is partly offset by an approximately 30% revenue decline in the real estate channel and a low-single digit revenue decline in the direct-to-consumer channel.
For the year, the company's Revenue range updated to $1.65 billion to $1.66 billion, or slightly higher than the prior year at the mid-point. Some of the key revenue assumptions include: Upper single-digit revenue growth in the renewal and direct-to-consumer channels and a nearly 30% decline in real estate channel revenue; and The consolidated revenue growth for the home service plan business is anticipated to be in the low single digits. Revenue growth is mostly driven by higher price and product mix while customer growth is expected to decline approximately 5%.
Frontdoor, Inc. is a provider of home warranties in the United States. The Companyâs customizable home warranties help customers protect and maintain their homes, typically their assets, from costly and unplanned breakdowns of essential home systems and appliances. The Company operates under the brands American Home Shield, HSA, OneGuard and Landmark Home Warranty. Its annual service subscribe plan covers the repair or replacement of major components of more than 20 home systems and appliances, including electrical, plumbing, heating, ventilation, and air conditioning (HVAC) systems, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as optional coverages for electronics, pools, spas, and pumps. Its operations also include its Streem, a technology platform that uses augmented reality, computer vision and machine learning to, among other things, help home service professionals more quickly and accurately diagnose breakdowns and complete repairs.