Frontdoor (FTDR) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Business model and industry overview

• Operates a subscription-based home warranty model covering 29 home systems and appliances.

• Expanded into non-warranty initiatives, including partnerships and a new HVAC replacement program.

• Acquired 2-10 Home Buyers Warranty, adding structural warranties and access to homebuilders.

• Holds about 20% share in the home structural warranty market.

Recent performance and operational changes

• Refocused on core home warranty business, improving customer and contractor relationships.

• Achieved record profitability and strong free cash flow, with $117 million in Q1 and over $2 billion in revenue.

• Embedded a culture of operational excellence, driving ongoing optimization.

Industry trends and innovation

• Industry has been stagnant, with little differentiation among competitors.

• Launched new branding, advertising, and an app with video chat for expert advice, leading to 17% of calls resolved without a contractor visit.

• Focused on better communicating the value proposition to increase market penetration.