(FTDR) 2022 Q2 法說會逐字稿

Ladies and gentlemen, welcome to Frontdoor's Second Quarter 2022 Earnings Call. Today's call is being recorded and broadcasted on the Internet. Beginning today's call is Matt Davis, Vice President of Investor Relations and Treasurer, and he will introduce the other speakers on the call.

女士們，先生們，歡迎來到 Frontdoor 的 2022 年第二季度財報電話會議。今天的電話正在互聯網上進行錄音和廣播。今天的電話會議由投資者關係副總裁兼財務主管 Matt Davis 主持，他將介紹電話會議中的其他發言人。

At this time, we'll begin today's call. Please go ahead, Mr. Davis.

在這個時候，我們將開始今天的通話。請繼續，戴維斯先生。

Thank you, operator. Good morning, everyone, and thank you for joining Frontdoor's Second Quarter 2022 Earnings Conference Call. Joining me today are Frontdoor's Chairman and Chief Executive Officer, Bill Cobb, and Frontdoor's Chief Financial Officer, Brian Turcotte. The press release and slide presentation that will be used during today's call can be found on the Investor Relations section of Frontdoor's website, which is located at investors.frontdoorhome.com.

謝謝你，接線員。大家早上好，感謝您參加 Frontdoor 的 2022 年第二季度收益電話會議。今天加入我的還有 Frontdoor 的董事長兼首席執行官 Bill Cobb 和 Frontdoor 的首席財務官 Brian Turcotte。可在 Frontdoor 網站的投資者關係部分找到將在今天的電話會議中使用的新聞稿和幻燈片演示，該部分位於 Investors.frontdoorhome.com。

As stated on Slide 3 of the presentation, I'd like to remind you that this call and webcast may contain forward-looking statements. These statements are subject to various risks and uncertainties, which could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's filings with the SEC. Please refer to the Risk Factors section in our filings for a more detailed discussion of our forward-looking statements and the risks and uncertainties related to such statements.

如演示文稿的幻燈片 3 所述，我想提醒您，本次電話會議和網絡廣播可能包含前瞻性陳述。這些陳述受到各種風險和不確定性的影響，可能導致實際結果與今天討論的結果大不相同。這些風險因素在公司提交給美國證券交易委員會的文件中有詳細解釋。請參閱我們文件中的風險因素部分，以更詳細地討論我們的前瞻性陳述以及與此類陳述相關的風險和不確定性。

All forward-looking statements are made as of today, August 4. And except as required by law, the company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. We will also reference certain non-GAAP financial measures throughout today's call. We have included definitions of these terms and reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures in our press release and the appendix to the presentation in order to better assist you in understanding our financial performance.

所有前瞻性陳述均於今天 8 月 4 日作出。除法律要求外，公司不承擔更新任何前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因。我們還將在今天的電話會議中參考某些非公認會計準則財務指標。我們在我們的新聞稿和演示文稿的附錄中包含了這些術語的定義以及這些非公認會計原則財務指標與其最具可比性的公認會計原則財務指標的對賬，以便更好地幫助您了解我們的財務業績。

Before I turn the call over to Bill for opening comments, let me start with a brief introduction. As many of you know, Bill has been Chairman since the spin-off of Frontdoor, and he assumed the CEO role at the beginning of June. Bill is a tenured executive, with over 35 years of business experience at world-class market-leading companies. He has served on several boards and was the President and Chief Executive Officer of H&R Block from 2011 to 2017.

在我將電話轉給比爾發表評論之前，讓我先做一個簡短的介紹。眾所周知，比爾自 Frontdoor 分拆以來一直擔任董事長，並於 6 月初擔任首席執行官一職。 Bill 是一名終身高管，在世界級的市場領先公司擁有超過 35 年的業務經驗。他曾在多個董事會任職，並於 2011 年至 2017 年擔任 H&R Block 的總裁兼首席執行官。

Prior to that, he had extensive corporate and marketing experience through various leadership roles at eBay, Pepsi and Pizza Hut from 1987 to 2008. You can find more on Bill's background on Frontdoor's website.

在此之前，他曾在 1987 年至 2008 年期間在 eBay、百事可樂和必勝客擔任各種領導職務，擁有豐富的企業和營銷經驗。您可以在 Frontdoor 網站上找到有關比爾背景的更多信息。

I am very pleased to now turn the call over to Frontdoor's new CEO, Bill Cobb, for opening comments. Bill?

我很高興現在將電話轉給 Frontdoor 的新任首席執行官比爾·科布 (Bill Cobb) 以徵求意見。賬單？

Thanks, Matt, and hi, everyone. It is great to be here to speak with all of you. I look forward to getting out and meeting our investors over the next several months, and I'm extremely excited about the opportunity to lead the next phase of Frontdoor's journey.

謝謝，馬特，大家好。很高興來到這裡與大家交談。我期待在接下來的幾個月裡走出去與我們的投資者會面，我對有機會領導 Frontdoor 下一階段的旅程感到非常興奮。

Let me start on Slide 4 by saying that over the last few months, I have been able to meet with a broader group of Frontdoor's associates, and I continue to be impressed with the level of talent across the organization. I am also very bullish on the company's future, as we know, there is substantial demand for home repair and maintenance services across the United States.

讓我從幻燈片 4 開始說，在過去的幾個月裡，我已經能夠與更廣泛的 Frontdoor 員工會面，並且我繼續對整個組織的人才水平印象深刻。我也非常看好公司的未來，眾所周知，美國各地對家庭維修和保養服務的需求很大。

I am confident that we have a great business with a bright long-term future ahead of us. However, we are facing some significant near-term issues that are worse than I expected coming into this position. We are looking at a macroeconomic environment that continues to deteriorate, rapid cost inflation, declining consumer sentiment and a dynamic global backdrop marked by war, rising geopolitical tensions and global supply chain disruptions.

我有信心，我們有一個偉大的業務，我們擁有光明的長期未來。然而，我們面臨一些重大的近期問題，這些問題比我擔任這個職位時的預期還要糟糕。我們正在關注持續惡化的宏觀經濟環境、快速的成本膨脹、消費者信心下降以及以戰爭、地緣政治緊張局勢升級和全球供應鏈中斷為標誌的動態全球背景。

So let me state it right up front. We are lowering our full year 2022 adjusted EBITDA to be in a range of $170 million to $190 million as a result of these factors. These are difficult times, and I have been struck by the magnitude of the impact on our financial outlook. But let me be clear, we will work our way through it and emerge stronger for it. I still completely believe in the future of this company, and the last 2 months in the job has only increased by conviction despite the tough outlook for 2022. Frontdoor competes in the growing home services space, has a great recurring revenue business model, a strong management team and a solid foundation as the leader in the home service plan category.

所以讓我在前面聲明一下。由於這些因素，我們將 2022 年全年調整後 EBITDA 降低至 1.7 億美元至 1.9 億美元之間。這是困難時期，我對我們財務前景的巨大影響感到震驚。但讓我明確一點，我們將努力克服它，並為此變得更強大。我仍然完全相信這家公司的未來，儘管 2022 年前景艱難，但我在工作的最後 2 個月的信念只增不減。Frontdoor 在不斷增長的家庭服務領域展開競爭，擁有出色的經常性收入業務模式，強大的管理團隊和作為家庭服務計劃類別領導者的堅實基礎。

Let's turn to Slide 5, and review some of the changes that are currently underway at Frontdoor as we are moving quickly to improve execution and better balance revenue growth and earnings. Specifically, our teams are working on the following areas: first, we have determined that priority one is to zero in on rebuilding the core home service plan business. We are the leader in the home service plan category. We offer consumers both peace of mind and budget protection against inevitable and unexpected expenses and the inconvenience of breakdowns to major systems and appliances.

讓我們轉到幻燈片 5，並回顧一下 Frontdoor 目前正在進行的一些變化，因為我們正在迅速採取行動以提高執行力並更好地平衡收入增長和收益。具體來說，我們的團隊正致力於以下領域：首先，我們確定在重建核心家庭服務計劃業務方面的首要任務是歸零。我們是家庭服務計劃類別的領導者。我們為消費者提供高枕無憂和預算保護，避免不可避免和意外的費用以及主要係統和設備故障帶來的不便。

Our home service plans do this by leveraging the convenience of our prequalified network of 17,000 contractors that we partner with. This is a great recurring revenue business with significant upside, given our powerful marketplace model. That means that our new businesses will be transitioning to a supporting role. ProConnect has not performed up to our expectations, and my team is working to complete a full study of how to improve our on-demand offering as it does not make sense to continue to lose money in the current approach.

我們的家庭服務計劃利用與我們合作的 17,000 名承包商的資格預審網絡的便利性來做到這一點。鑑於我們強大的市場模式，這是一項具有巨大優勢的經常性收入業務。這意味著我們的新業務將轉變為支持角色。 ProConnect 的表現沒有達到我們的預期，我的團隊正在努力完成一項關於如何改進我們的按需產品的全面研究，因為在當前的方法中繼續虧損是沒有意義的。

But to be clear, an on-demand offering remains an important element to realizing our long-term potential, and that has not changed. We are extremely optimistic about how an on-demand approach still gives us the potential to broaden our reach to a much larger pool of customers than what we can capture today under a home service plan. We are looking to go much deeper into this market and completely restate our offering as I think we can execute much better in this area.

但需要明確的是，按需提供仍然是實現我們長期潛力的重要因素，而且這一點並沒有改變。我們非常樂觀地認為，按需方法仍然使我們有可能將我們的覆蓋面擴大到比我們今天在家庭服務計劃下所能捕捉到的更大的客戶群。我們正在尋求更深入地進入這個市場並完全重申我們的產品，因為我認為我們可以在這個領域執行得更好。

Now turning to Streem. We love the Streem technology's ability to remotely troubleshoot issues around the home and provide real-time feedback to our customers and contractors. However, going forward, we will be laser-focused on integrating Streem into the core business and less focus on selling this technology platform to third-party customers. This will have the added benefit of reducing our costs.

現在轉向斯特里姆。我們喜歡 Streem 技術遠程解決家庭問題並向我們的客戶和承包商提供實時反饋的能力。然而，展望未來，我們將專注於將 Streem 整合到核心業務中，而不是專注於向第三方客戶銷售這個技術平台。這將具有降低我們成本的額外好處。

Second, we have reorganized key parts of the company to increase our focus on execution. We now have clear and separate teams dedicated to marketing, sales and product, which I will speak to in a moment. They are supported by operations, service, technology and our other internal functions to create a seamless end-to-end operating role.

其次，我們對公司的關鍵部分進行了重組，更加註重執行力。我們現在有專門負責營銷、銷售和產品的明確而獨立的團隊，我稍後會談到。它們得到運營、服務、技術和我們其他內部職能的支持，以創建無縫的端到端運營角色。

Third, we are working to address the rapid acceleration in claims cost inflation. I have put together a cross-functional team across finance and contractor relations to really dig into this and reevaluate how we can better control our costs. Brian will go into the details more in a minute. And four, we are undertaking a comprehensive review of our total SG&A expense footprint, which is expected to be completed in the third quarter of this year. While we continue to generate positive cash flow and have a strong balance sheet, we have to adapt to the current business environment and reduce expenses.

第三，我們正在努力解決索賠成本膨脹的快速加速問題。我組建了一個跨財務和承包商關係的跨職能團隊，以真正深入研究並重新評估我們如何更好地控製成本。 Brian 將在稍後詳細介紹。第四，我們正在對我們的總 SG&A 費用足跡進行全面審查，預計將於今年第三季度完成。雖然我們繼續產生正現金流並擁有強大的資產負債表，但我們必須適應當前的商業環境並減少開支。

Now turning to Slide 6, where I want to share some of the guiding principles that I'm using to look at all aspects of the company. First, we will approach the business with a comprehensive focus on the customer and increased focus on our branding approach. While I generally feel good about our overall approach to growing the business, I don't believe we have executed up to our potential, and we are not growing the market as well as we should.

現在轉到幻燈片 6，我想在其中分享一些我用來審視公司各個方面的指導原則。首先，我們將以全面關注客戶的方式開展業務，並更加關注我們的品牌推廣方式。雖然我總體上對我們發展業務的整體方法感覺良好，但我不認為我們已經發揮了我們的潛力，而且我們沒有像我們應該的那樣發展市場。

Our goal is to offer one straightforward, consistently great experience. We operate in a complex category, and we must improve how we go to market. As part of this effort, we are also undertaking a broad customer segmentation study. This will give us better insight into how the customers' view of their home has changed since the start of the pandemic and the work-from-home expansion.

我們的目標是提供一種直截了當、始終如一的出色體驗。我們在一個複雜的類別中運營，我們必須改進我們進入市場的方式。作為這項工作的一部分，我們還進行了廣泛的客戶細分研究。這將使我們更好地了解自大流行開始和在家工作擴展以來客戶對其家的看法發生了怎樣的變化。

Second, we will have a detailed and focused technology road map as we continue to digitize our business. This group is led by Tony Bacos, our Chief Digital Officer, who is a well-known industry leader that came to us from Amazon. Tony has helped us to really focus our digital priorities at Frontdoor. We remain committed to investing in our digital transformation as it will help us drive a superior customer and contractor experience as well as cost savings over the long term.

其次，隨著我們繼續將業務數字化，我們將製定詳細且重點突出的技術路線圖。這個小組由我們的首席數字官 Tony Bacos 領導，他是從亞馬遜來到我們這裡的知名行業領導者。托尼幫助我們將我們的數字優先事項真正集中在 Frontdoor。我們仍然致力於投資於我們的數字化轉型，因為這將幫助我們推動卓越的客戶和承包商體驗以及長期的成本節約。

Third, we want to simplify all aspects of our business. One of my early impressions since becoming CEO is how complex our legacy internal processes and systems remain. We want to reinvent how we interact with customers, contractors and other partners to reduce manual work. As we are in the process of reevaluating so many areas of our company, we plan to hold an Investor Day in early March of 2023. This will allow investors to meet the senior leaders of our management team and allow us to share more details on how we are transforming this company.

第三，我們希望簡化業務的各個方面。自從成為 CEO 以來，我的早期印象之一就是我們遺留的內部流程和系統是多麼複雜。我們希望重塑我們與客戶、承包商和其他合作夥伴的互動方式，以減少人工工作。由於我們正在重新評估公司的許多領域，我們計劃在 2023 年 3 月上旬舉辦投資者日。這將使投資者能夠與我們管理團隊的高級領導會面，並讓我們分享更多關於如何我們正在改變這家公司。

Now turning to Slide 7 and a quick review of the business. Taking over the CEO role has provided me with a deeper understanding of the challenges our business is facing. As I mentioned earlier, I think we know a much better job of executing, specifically on the overall sales process to drive revenue growth across all of our channels. That is why I reorganized the company to better define roles and focus on building our brand and providing us with an end-to-end view of the consumer.

現在轉到幻燈片 7 并快速回顧一下業務。接任首席執行官一職讓我對我們的業務面臨的挑戰有了更深入的了解。正如我之前提到的，我認為我們知道執行工作要好得多，特別是在整體銷售流程方面，以推動我們所有渠道的收入增長。這就是為什麼我重組公司以更好地定義角色並專注於建立我們的品牌並為我們提供端到端的消費者視圖。

We hired Kathy Collins as our Chief Marketing Officer. Kathy is an accomplished leader with broad experiences across all facets of marketing. She most recently served as Chief Sales and Marketing Officer for a large medical benefits provider. Prior to that, she held various roles around marketing strategy, product development and client experience at Lee Jeans, Massage Envy and H&R Block. And she specializes in transforming brands of legacy businesses.

我們聘請了 Kathy Collins 作為我們的首席營銷官。 Kathy 是一位成就卓著的領導者，在營銷的各個方面擁有豐富的經驗。她最近擔任一家大型醫療福利提供商的首席銷售和營銷官。在此之前，她曾在 Lee Jeans、Massage Envy 和 H&R Block 擔任營銷策略、產品開發和客戶體驗方面的各種職務。她擅長改造傳統企業的品牌。

We also hired Jessica Fields as our Chief Sales Officer. Jes will have responsibility for real estate and direct-to-consumer sales and business development across the Frontdoor portfolio. Jes was previously with Rocket Mortgage, where she was in charge of driving revenue and partnerships across the company. Prior to that, she had a variety of sales experiences at International Bancard and Sears. With her prior real estate experience, Jes is bringing new ideas on how to improve our go-to-market real estate sales efforts.

我們還聘請了 Jessica Fields 作為我們的首席銷售官。 Jes 將負責 Frontdoor 投資組合中的房地產和直接面向消費者的銷售和業務開發。 Jes 之前曾在 Rocket Mortgage 工作，負責推動整個公司的收入和合作夥伴關係。在此之前，她在 International Bancard 和 Sears 有過各種銷售經驗。憑藉她之前的房地產經驗，Jes 正在就如何改進我們的房地產銷售工作帶來新的想法。

Additionally, Raj Midha has transitioned to lead home service plan, product and pricing across all of our brands. Raj brings a wealth of home service plan experience, given his leadership roles in marketing, strategy and product development at Frontdoor, American Home Shield and ServiceMaster over the last 13 years. By realigning these teams, we expect to increase focus on the customer, develop a more consistent sales methodology and improve accountability throughout the sales funnel. As part of this effort, we are evaluating changes to our overall marketing and branding strategy.

此外，Raj Midha 已過渡到領導我們所有品牌的家庭服務計劃、產品和定價。過去 13 年，Raj 在 Frontdoor、American Home Shield 和 ServiceMaster 擔任營銷、戰略和產品開發方面的領導職務，因此擁有豐富的家庭服務計劃經驗。通過重新調整這些團隊，我們希望增加對客戶的關注，開發更一致的銷售方法，並提高整個銷售渠道的責任感。作為這項工作的一部分，我們正在評估我們整體營銷和品牌戰略的變化。

We are also looking at our products, which should be transparent, simple, easy to understand and use. While still early days, we have already identified opportunities to execute better and drive more sales over time. In the near term, our revenue growth will be primarily impacted by the challenges we are facing in selling home service plans in our real estate channel. The record low days on market continue to support a strong seller's market which, in turn, makes it difficult for us to attach our home service plan as part of a real estate transaction.

我們也在關注我們的產品，它應該是透明的、簡單的、易於理解和使用的。雖然仍處於早期階段，但我們已經發現了隨著時間的推移更好地執行並推動更多銷售的機會。在短期內，我們的收入增長將主要受到我們在房地產渠道銷售家庭服務計劃方面面臨的挑戰的影響。市場上創紀錄的最低天數繼續支持強勁的賣方市場，這反過來又使我們難以將我們的家庭服務計劃作為房地產交易的一部分。

This trend appeared to continue through June based on the most recent data from the National Association of Realtors. Existing home sales declined 14% year-over-year. Inventory data was mixed as the supply of homes increased to 3 months from 2.5 months, yet the days on market declined again to just 14 days and all cash offers increased from 23% to 25%.

根據全國房地產經紀人協會的最新數據，這種趨勢似乎一直持續到 6 月。現有房屋銷售同比下降 14%。庫存數據喜憂參半，房屋供應從 2.5 個月增加到 3 個月，但待售天數再次下降至僅 14 天，所有現金報價從 23% 增加到 25%。

However, we believe that the real estate market has already entered a period of transition. Mortgage rates have increased to 5.5%, and we are hearing commentary from our real estate brokerage partners that the market dynamics are quickly shifting as multiple offers are diminishing and inspections are becoming the norm once again.

但是，我們認為房地產市場已經進入了轉型期。抵押貸款利率已升至 5.5%，我們聽到房地產經紀合作夥伴的評論稱，隨著多重報價的減少和檢查再次成為常態，市場動態正在迅速變化。

Let me be clear. We believe that the sales decline in our real estate channel is not permanent, and we are optimistic that improvements in these leading indicators will result in a more favorable market environment to sell home service plans as the real estate market normalizes.

讓我說清楚。我們認為，我們房地產渠道的銷售下滑不是永久性的，我們樂觀地認為，隨著房地產市場的正常化，這些領先指標的改善將帶來更有利的銷售家庭服務計劃的市場環境。

Regardless of market conditions, I believe that we can do a better job of executing in our real estate channel. Jes is working to change our sales culture and increase accountability. We are prioritizing leads in the strongest markets and aggressively deploying our field sales team to improve conversion. These changes are expected to improve our overall capture rate in all market conditions.

無論市場情況如何，我相信我們可以在房地產渠道上做得更好。 Jes 正在努力改變我們的銷售文化並增加責任感。我們在最強勁的市場中優先考慮潛在客戶，並積極部署我們的現場銷售團隊以提高轉化率。這些變化有望提高我們在所有市場條件下的整體捕獲率。

In conclusion, there is a high level of energy across the company as we are moving quickly to make improvements at Frontdoor, and I am confident that we will turn things around. I have already made changes to our leadership team. We are aggressively addressing the challenging economic environment. We are taking steps to improve the execution and substantially reduce costs, and we are reimagining the industry that we founded.

總而言之，隨著我們迅速採取行動改進 Frontdoor，整個公司都充滿了活力，我相信我們會扭轉局面。我已經改變了我們的領導團隊。我們正在積極應對充滿挑戰的經濟環境。我們正在採取措施改進執行並大幅降低成本，並且我們正在重新構想我們創立的行業。

Longer term, our opportunity to profitably grow the business has not changed. We remain extremely confident in the underlying fundamentals for the following reasons: First, demand for home repair and maintenance services continues to grow, and is supported by changing demographics and recent home nesting trends; second, there is tremendous demand for digital transformation in the home services space; third, there is massive potential to deepen Frontdoor's market penetration as we improve our branding; and finally, there is significant opportunity to grow through our on-demand offering.

從長遠來看，我們實現業務盈利增長的機會並沒有改變。我們對基本面仍然非常有信心，原因如下：首先，對房屋維修和保養服務的需求持續增長，並受到人口結構變化和近期房屋嵌套趨勢的支持；第二，家庭服務領域的數字化轉型需求巨大；第三，隨著我們品牌的提升，Frontdoor 的市場滲透率具有巨大的潛力；最後，通過我們的按需產品，還有很大的發展機會。

I will now turn the call over to Brian to review our financial results.

我現在將把電話轉給布賴恩來審查我們的財務業績。

Thanks, Bill, and good morning, everyone. Please turn to Slide 8, and I'll review our second quarter 2022 financial results. Second quarter 2022 revenue increased 5% versus the prior year period to $487 million as a result of higher pricing and a mix shift to higher-priced products in our home service plan business, which more than offset a slight decline in customer volume.

謝謝，比爾，大家早上好。請轉到幻燈片 8，我將回顧我們 2022 年第二季度的財務業績。 2022 年第二季度的收入較上年同期增長 5% 至 4.87 億美元，這是由於我們的家庭服務計劃業務中定價和向高價產品的混合轉變，這足以抵消客戶數量的小幅下降。

Looking at our home service plan channels, second quarter revenue derived from customer renewals increased 10% versus the prior year period due to growth in the number of renewed home service plans and improved price realization. First year real estate revenue decreased 26% versus the prior year period, reflecting a continued decline in the number of home service plans in this channel, offset in part by improved price realization.

從我們的家庭服務計劃渠道來看，由於更新的家庭服務計劃數量的增長和價格實現的提高，第二季度來自客戶續訂的收入比去年同期增長了 10%。第一年的房地產收入與去年同期相比下降了 26%，反映出該渠道中的家庭服務計劃數量持續下降，部分被價格實現的改善所抵消。

The decline in the number of home service plans in this channel was due to the ongoing challenges presented by the seller's market, driven in part by extremely low home inventory levels across the U.S. First year direct-to-consumer, or D2C, revenue increased 15% versus the prior year period due to improved price realization and a mix shift to higher-priced products as the volume was relatively flat. Second quarter revenue reported in our other channel increased $5 million over the prior year period, primarily driven by ProConnect growth.

此渠道中家庭服務計劃數量的下降是由於賣方市場面臨的持續挑戰，部分原因是美國極低的家庭庫存水平。第一年直接面向消費者或 D2C 的收入增加了 15 % 與去年同期相比，這是由於價格實現的提高以及由於銷量相對持平而轉向高價產品的組合。我們在其他渠道報告的第二季度收入比去年同期增加了 500 萬美元，主要受 ProConnect 增長的推動。

Gross profit declined 13% in the second quarter versus the prior year period to $211 million, and our gross profit margin was 43%. I'll speak to the inflationary cost pressures that unfavorably impacted gross profit in a moment.

第二季度毛利潤與去年同期相比下降 13% 至 2.11 億美元，我們的毛利率為 43%。稍後我將談到對毛利潤產生不利影響的通脹成本壓力。

Moving down to income statement. I would point out that as part of our efforts to better match our office space footprint to our current needs and also to reduce operating expense, we are entering into a sublease for our downtown Memphis headquarters. Our plans are to do a smaller and less expensive space, which is more centrally located for our Memphis-based employee population. While this action resulted in a noncash impairment charge of $11 million in the second quarter related to our headquarters facility operating lease right-of-use assets and leasehold improvements, the cash flow and adjusted EBITDA impacts over the remainder of our lease term are expected to be positive.

向下移動到損益表。我要指出，作為我們努力使我們的辦公空間足跡更好地滿足我們當前的需求並降低運營費用的一部分，我們正在為我們的孟菲斯市中心總部進行轉租。我們的計劃是建造一個更小、更便宜的空間，該空間位於我們位於孟菲斯的員工群體的中心位置。雖然這一行動導致第二季度與我們的總部設施經營租賃使用權資產和租賃資產改進相關的非現金減值費用為 1100 萬美元，但預計剩餘租賃期的現金流和調整後 EBITDA 影響將要樂觀。

Net income decreased $7 million in the second quarter of 2022 to $33 million. Adjusted net income decreased $22 million over the prior year period to $44 million. Adjusted EBITDA was $77 million in the second quarter or $37 million lower than the prior year period.

2022 年第二季度的淨收入減少了 700 萬美元，至 3300 萬美元。調整後的淨收入比去年同期減少了 2200 萬美元至 4400 萬美元。第二季度調整後的 EBITDA 為 7700 萬美元，比去年同期低 3700 萬美元。

Let's move to the table on Slide 9, and I'll provide context for the year-over-year decline in second quarter adjusted EBITDA. Starting at the top, we had $23 million of favorable revenue conversion in the second quarter of 2022 versus the prior year period. Contract claims costs increased $53 million in the second quarter versus the prior year period, primarily driven by an acceleration of inflationary cost pressures, including rising contract-related expenses and higher parts and equipment costs. Second quarter claims costs were also unfavorably impacted by approximately $4 million from the extremely hot weather across the country, primarily in May.

讓我們轉到幻燈片 9 上的表格，我將提供第二季度調整後 EBITDA 同比下降的背景。從頂部開始，與去年同期相比，我們在 2022 年第二季度實現了 2300 萬美元的有利收入轉換。與去年同期相比，第二季度的合同索賠成本增加了 5300 萬美元，這主要是由於通貨膨脹成本壓力的加速，包括合同相關費用的增加以及零件和設備成本的增加。第二季度的理賠成本也受到了約 400 萬美元的不利影響，主要是在 5 月份全國極端炎熱的天氣。

Additionally, contract claims cost for the second quarter of 2022 include a $7 million unfavorable adjustment related to the adverse cost development of prior period claims. Sales and marketing costs increased $6 million in the second quarter versus the prior year period, primarily related to increased investments in the DTC channel and ProConnect. And finally, general and administrative costs increased $1 million in the second quarter, primarily due to increased professional fees.

此外，2022 年第二季度的合同索賠成本包括與前期索賠的不利成本發展相關的 700 萬美元的不利調整。與去年同期相比，第二季度的銷售和營銷成本增加了 600 萬美元，主要與增加對 DTC 渠道和 ProConnect 的投資有關。最後，第二季度的一般和行政成本增加了 100 萬美元，主要是由於專業費用的增加。

I'll now go into more detail on the significant claims cost inflation we're experiencing as a result of the challenging macroeconomic environment, the effects on the business and our ongoing cost mitigation strategies. Over the 12 months ended June 2022, the consumer price index increased 9.1%, not only the largest 12-month increase in over 40 years, but also included an acceleration over the last 2 months of the second quarter.

現在，我將更詳細地介紹由於具有挑戰性的宏觀經濟環境、對業務的影響以及我們正在進行的成本緩解策略，我們正在經歷的重大索賠成本膨脹。在截至 2022 年 6 月的 12 個月中，消費者價格指數上漲了 9.1%，不僅是 40 多年來最大的 12 個月漲幅，而且在第二季度的最後兩個月中也出現了加速增長。

Furthermore, we are seeing cost inflation in home services rising even faster. For example, in June, our contractors were faced with fuel costs that were up over 60% versus 1 year ago. We also saw the producing price index for heating and air conditioning equipment and appliances up over 20% and 15%, respectively. It is one of the most challenging environments we've ever faced, and it continues to evolve as issues such as the war in Ukraine and its impact on fuel prices and rolling COVID lockdowns in China impacting the global supply chain.

此外，我們看到家庭服務的成本上漲速度更快。例如，在 6 月份，我們的承包商面臨的燃料成本比一年前上漲了 60% 以上。我們還看到，供暖和空調設備和電器的生產價格指數分別上漲了 20% 和 15% 以上。這是我們曾經面臨過的最具挑戰性的環境之一，並且隨著烏克蘭戰爭及其對燃料價格的影響以及中國滾動的 COVID 封鎖對全球供應鏈的影響等問題不斷演變。

However, we are seeing some green shoots as certain commodity prices are now declining. For example, cold-rolled steel, a critical component in the manufacture of water heaters and HVAC equipment, declined 20% in June versus the prior year period. Additionally, as I mentioned last quarter, while we have great pricing visibility and an ability to influence our own direct purchases of parts and equipment, we don't have that same level of real-time visibility into our contractor costs.

然而，由於某些商品價格現在正在下跌，我們看到了一些萌芽。例如，製造熱水器和暖通空調設備的關鍵部件冷軋鋼在 6 月份與去年同期相比下降了 20%。此外，正如我上個季度提到的，雖然我們有很好的定價可見性和影響我們自己直接購買零件和設備的能力，但我們對承包商成本的實時可見性並不相同。

Our contractors, for the most part, who are small business owners, generally pass along their higher cost to us. And as they can take months to complete their billing process, our ability to identify and manage accelerating contractor costs in the near term is limited. I believe it would be helpful to provide more context as to how the current environment impacts Frontdoor's operations. The challenging macroeconomic environment, including higher parts and equipment costs and contractor-related inflation, resulted in our second quarter year-over-year cost per service request increasing about 23%, which was much higher than the mid- to high-teens increase we experienced in the first quarter.

我們的承包商，大部分是小企業主，通常會將較高的成本轉嫁給我們。由於他們可能需要數月才能完成計費流程，因此我們在短期內識別和管理加速承包商成本的能力是有限的。我相信提供更多關於當前環境如何影響 Frontdoor 運營的背景信息會很有幫助。具有挑戰性的宏觀經濟環境，包括更高的零件和設備成本以及與承包商相關的通貨膨脹，導致我們第二季度的每次服務請求成本同比增長約 23%，這遠高於我們經歷了第一季度。

We believe the main drivers of this inflation are: first, a rapid acceleration of contractor-related costs, including higher fuel costs, operating costs and labor rates. It also includes a substantial increase in contractor supply parts and equipment costs; second, our product mix now includes broader coverage offerings, such as our new Platinum product, which has both a higher price point and a higher service cost; and third, although still within our projected ranges, we are paying higher prices for parts and equipment we directly source.

我們認為，這種通脹的主要驅動因素是：首先，與承包商相關的成本迅速增加，包括更高的燃料成本、運營成本和勞動力成本。它還包括承包商供應零件和設備成本的大幅增加；其次，我們的產品組合現在包括更廣泛的覆蓋範圍，例如我們的新白金產品，它具有更高的價格點和更高的服務成本；第三，雖然仍在我們的預計範圍內，但我們為直接採購的零件和設備支付了更高的價格。

As we've mentioned in the past, implementing additional price increases is a lever we can pull to help cover higher inflation, and we've already taken 2 price increases earlier this year. We will continue to look for opportunities to increase price while minimizing the impact to our customer count. We are currently working on launching an update to our dynamic pricing model. We will take that opportunity to implement a third round of price increases for certain products in the second half of the year. As a result, we are now targeting a 12% to 13% overall price increase in 2022.

正如我們過去提到的，實施額外的價格上漲是我們可以用來幫助應對更高通脹的槓桿，今年早些時候我們已經採取了 2 次價格上漲。我們將繼續尋找機會提高價格，同時盡量減少對客戶數量的影響。我們目前正在努力對我們的動態定價模型進行更新。我們將以此為契機，在下半年對部分產品實施第三輪漲價。因此，我們現在的目標是在 2022 年實現 12% 到 13% 的整體價格上漲。

However, it's worth noting that with our annual service plan structure, price increases take time to be realized. And while we started the process early this year, they will provide more revenue and gross profit benefit in 2023. I also wanted to remind you that our price testing continues to show that our customers are mostly priced in elastic. And we expect to be able to continue to increase our price over time to cover inflationary pressures.

但是，值得注意的是，在我們的年度服務計劃結構中，價格上漲需要時間才能實現。雖然我們今年年初開始了這一過程，但它們將在 2023 年提供更多的收入和毛利收益。我還想提醒您，我們的價格測試繼續表明，我們的客戶大多是彈性定價的。我們希望能夠隨著時間的推移繼續提高價格以應對通脹壓力。

Beyond price, our top priority is working to improve visibility into our contractor cost trends and then to mitigate the impact of the inflation on our margins. Let me explain some of our initiatives in more detail. First, we are continuing to improve our processes. These actions primarily focus on how we engage and utilize our contractors, including increasing the percent of total jobs assigned to our preferred contractors. We're also expanding our recruiting efforts to increase our contractor count and create more competition for contractor selection in key markets.

除了價格之外，我們的首要任務是努力提高對承包商成本趨勢的可見性，然後減輕通貨膨脹對我們利潤率的影響。讓我更詳細地解釋我們的一些舉措。首先，我們正在繼續改進我們的流程。這些行動主要關注我們如何聘用和利用我們的承包商，包括增加分配給我們首選承包商的總工作的百分比。我們還在擴大招聘力度，以增加我們的承包商數量，並為關鍵市場的承包商選擇創造更多競爭。

Our contract relations team is also improving our end-to-end operating processes in an effort to further mitigate cost increases. One example is they now require a review of all service risk cost estimates over a certain dollar limit from nonpreferred contractors to manage our cost exposure.

我們的合同關係團隊也在改進我們的端到端運營流程，以進一步降低成本增加。一個例子是，他們現在需要審查非首選承包商超過一定美元限制的所有服務風險成本估算，以管理我們的成本風險。

Second, we are continuing to maximize our strategic sourcing efforts by broadening the Frontdoor parts and equipment sourcing network and supplying lower cost materials to our contractors than they could have purchased on their own. Another example is offering our contractors direct buy programs for water heaters and HVAC equipment that we purchase at much lower prices. The added benefit of this program is that it's digital and reduces the number of inbound phone calls from contractors.

其次，我們將繼續通過擴大 Frontdoor 零件和設備採購網絡以及向我們的承包商提供比他們自己購買的成本更低的材料來最大化我們的戰略採購工作。另一個例子是為我們的承包商提供熱水器和暖通空調設備的直接購買計劃，我們以低得多的價格購買這些設備。該計劃的額外好處是它是數字化的，並減少了承包商的呼入電話數量。

And third, we are undertaking a comprehensive review of our SG&A expenses and have already identified a number of cost reduction opportunities that will result in over $30 million of improvement to our original full year 2022 SG&A guidance.

第三，我們正在對我們的 SG&A 費用進行全面審查，並已經確定了一些降低成本的機會，這些機會將導致我們最初的 2022 年全年 SG&A 指導的改進超過 3000 萬美元。

Please now turn to Slide 10 for a review of our cash flow and cash position. Net cash provided from operating activities was $94 million for the 6 months ended June 30, 2022, and was comprised of $68 million in earnings adjusted for noncash charges and $26 million of cash provided from working capital.

現在請轉到幻燈片 10，查看我們的現金流和現金狀況。截至 2022 年 6 月 30 日的 6 個月，經營活動提供的淨現金為 9400 萬美元，其中包括 6800 萬美元的非現金費用調整後的收益和 2600 萬美元的營運資金提供的現金。

Net cash used for investing activities was $19 million and was primarily comprised of technology-related capital expenditures. Net cash used for financing activities was $69 million, primarily driven by $59 million used for share repurchases. Since launching the $400 million share repurchase program last September, we have repurchased $162 million worth of shares or 40% of the total program. I should note that we continue to prioritize share repurchases in our capital allocation strategy and remain committed to returning cash to our valued shareholders.

用於投資活動的淨現金為 1900 萬美元，主要包括與技術相關的資本支出。用於融資活動的淨現金為 6900 萬美元，主要受用於股票回購的 5900 萬美元推動。自去年 9 月啟動 4 億美元的股票回購計劃以來，我們已經回購了價值 1.62 億美元的股票，佔整個計劃的 40%。我應該指出，我們繼續在我們的資本配置策略中優先考慮股票回購，並繼續致力於向我們尊貴的股東返還現金。

However, like many other companies, the amount of additional share repurchases, if any, will depend on the macroeconomic environment and how our business performs throughout the rest of 2022. Free cash flow, calculated as net cash provided from operating activities minus property additions, was $75 million for the 6 months ended June 30, 2022, compared to $104 million for the prior year. We ended the second quarter of 2022 with $269 million in cash.

然而，與許多其他公司一樣，額外股票回購的數量（如果有的話）將取決於宏觀經濟環境以及我們在 2022 年剩餘時間內的業務表現。自由現金流，計算為經營活動提供的淨現金減去增加的財產，截至 2022 年 6 月 30 日的 6 個月內為 7500 萬美元，而上一年為 1.04 億美元。我們以 2.69 億美元現金結束了 2022 年第二季度。

Restricted net assets totaled $159 million and unrestricted cash totaled $109 million. However, unrestricted cash, combined with $248 million of available capacity under our revolving credit facility, provides us with a solid available liquidity position of $357 million.

受限淨資產總計 1.59 億美元，非受限現金總計 1.09 億美元。然而，不受限制的現金，加上我們循環信貸額度下的 2.48 億美元可用容量，為我們提供了 3.57 億美元的穩定可用流動資金頭寸。

I'll now conclude my prepared remarks with our current thoughts regarding the financial outlook for the third quarter and updated full year 2022 provided on Slide 11. We expect our third quarter 2022 revenue to be within a range of $470 million to $480 million, which reflects an increase in direct-to-consumer and renewal channel revenue versus the prior year period, partly offset by approximately 30% decline in real estate channel revenue.

現在，我將以幻燈片 11 提供的關於第三季度財務前景和更新的 2022 年全年的當前想法來結束我準備好的講話。我們預計 2022 年第三季度的收入將在 4.7 億美元至 4.8 億美元之間，其中反映了直接面向消費者和更新渠道收入與去年同期相比有所增加，部分被房地產渠道收入下降約 30% 所抵消。

Third quarter adjusted EBITDA is expected to range between $65 million and $75 million, which is below the prior year period and driven by the accelerating inflationary cost trends, the impact of the July heat wave on HVAC claims and the challenging real estate environment.

第三季度調整後的 EBITDA 預計在 6500 萬美元至 7500 萬美元之間，低於上年同期，受通脹成本趨勢加速、7 月熱浪對暖通空調索賠的影響以及充滿挑戰的房地產環境的推動。

Turning to our updated full year 2022 outlook, revenue is projected to be within a range of $1.63 billion to $1.65 billion. The full year revenue growth assumptions include upper single-digit revenue growth in the D2C and renewal channels and a nearly 30% decrease in the real estate channel, driven by the historically challenging seller's market and extremely low levels of home inventory.

談到我們更新的 2022 年全年展望，收入預計在 16.3 億美元至 16.5 億美元之間。全年收入增長假設包括 D2C 和續訂渠道的上個位數收入增長以及房地產渠道下降近 30%，這是受歷史上具有挑戰性的賣方市場和極低水平的房屋庫存的推動。

On a consolidated basis, our core home service plan business revenue growth is now expected to be in the low single digits. Customer count is expected to decline by approximately 5% in 2022, primarily driven by the weakness in first year real estate sales. Additionally, reductions in ProConnect marketing investment in the back half of the year will lower the full year revenue target to $30 million to $35 million.

在綜合基礎上，我們的核心家庭服務計劃業務收入增長現在預計將處於低個位數。預計 2022 年客戶數量將下降約 5%，主要是由於第一年房地產銷售疲軟。此外，下半年 ProConnect 營銷投資的減少將使全年收入目標降低至 3000 萬至 3500 萬美元。

Our full year 2022 gross profit margin is projected to be between 41% and 42% as a result of the challenging macroeconomic conditions, including an acceleration of inflationary cost pressures, which is partly offset by higher pricing and process improvement efforts. This projection assumes that inflation will be 20% on a cost per service request basis, and the actual number of service requests will be slightly down versus prior year.

由於具有挑戰性的宏觀經濟條件，包括通脹成本壓力的加速，我們 2022 年全年的毛利率預計將在 41% 至 42% 之間，這部分被更高的定價和流程改進工作所抵消。該預測假設基於每次服務請求成本的通貨膨脹率為 20%，並且服務請求的實際數量將比上一年略有下降。

We're now targeting full year 2022 SG&A to range between $525 million and $535 million, including a stock compensation expense target of approximately $28 million. The $30 million decrease from our original 2022 guidance primarily relates to the SG&A expense reduction actions I mentioned earlier. Based on these updated inputs, full year 2022 adjusted EBITDA is expected to range between $170 million and $190 million.

我們現在的目標是 2022 年全年 SG&A 介於 5.25 億美元和 5.35 億美元之間，其中包括大約 2800 萬美元的股票薪酬支出目標。與我們最初的 2022 年指導相比，減少 3000 萬美元主要與我之前提到的 SG&A 費用削減行動有關。根據這些更新的輸入，2022 年全年調整後的 EBITDA 預計在 1.7 億美元至 1.9 億美元之間。

With that, I'll now turn the call back over to Bill for closing comments before Matt opens the question-and-answer session. Bill?

有了這個，我現在將在馬特打開問答環節之前將電話轉回給比爾以結束評論。賬單？

Thanks, Brian. A couple of final thoughts. This management team is not pleased with where we are with this outlook. Our Board has directed me to make the changes necessary as quickly as possible. As a result, we are working with a high level of intensity to do everything we can to improve our results for the rest of 2022 and put ourselves in the right footing heading into next year.

謝謝，布賴恩。最後的一些想法。這個管理團隊對我們的這種前景並不滿意。我們的董事會已指示我盡快做出必要的改變。因此，我們正以高強度工作，盡我們所能改善 2022 年剩餘時間的業績，並在明年進入正確的基礎。

With that, I'll now turn the call back over to Matt to open the question-and-answer session. Matt?

有了這個，我現在將把電話轉回給 Matt 以打開問答環節。馬特?

(Operator Instructions) Please note that our guidance is limited to the outlook we've provided. Operator, let's open the line for questions.

（操作員說明）請注意，我們的指導僅限於我們提供的前景。接線員，讓我們打開問題線。

(Operator Instructions) Our first questions comes from Ian Zaffino from Oppenheimer.

（操作員說明）我們的第一個問題來自 Oppenheimer 的 Ian Zaffino。

Bill, I wanted to ask a few things now that you're in the CEO seat. You mentioned ProConnect really not performing the way it should be. What exactly is going wrong there? Why does it continue to lose money? Is it basically a scaling thing? Is there something else wrong with the product? Maybe help us understand what you identify as the issues there? And maybe what you can do to sort of get it back on the right track? And then I have a follow-up.

比爾，既然你已經擔任首席執行官，我想問一些事情。您提到 ProConnect 確實沒有按應有的方式執行。那裡到底出了什麼問題？為什麼一直虧損？它基本上是縮放的東西嗎？產品還有其他問題嗎？也許可以幫助我們了解您認為那裡的問題？也許你能做些什麼讓它回到正確的軌道上？然後我有一個跟進。

Yes. I think we have -- starting at the beginning, I think we have a branding issue. The term ProConnect may not have been the best term; and two, it has a ProConnect -- it's a pretty generic item. And we haven't really spent beyond building that brand and explaining really what it is about.

是的。我認為我們有 - 從一開始，我認為我們有一個品牌問題。 ProConnect 這個詞可能不是最好的詞；第二，它有一個 ProConnect - 這是一個非常通用的項目。除了建立該品牌並真正解釋它的含義之外，我們並沒有真正花費。

Second, I think we expanded too quickly. We expanded to too many cities and too many trades as opposed to building up our process and the way it happens. So we kind of spread out to, I think, 35 cities or so. We had all of our major trades. And we, in hindsight, probably should have been focused on maybe find us trade in limited number of markets.

其次，我認為我們擴張得太快了。我們擴展到太多城市和太多行業，而不是建立我們的流程及其發生方式。所以我們有點分散到，我認為，大約 35 個城市。我們進行了所有主要交易。事後看來，我們可能應該專注於發現我們在有限數量的市場中進行交易。

Third, I think the way we engage with contractors and their value proposition was not enticing to contractors. So I think we had some trouble getting contractors, and I think they're a little confused by the proposition.

第三，我認為我們與承包商打交道的方式及其價值主張對承包商沒有吸引力。所以我認為我們在獲得承包商方面遇到了一些麻煩，我認為他們對這個提議有點困惑。

So that's why, as I said in the script, there's a whole overhaul that we're looking at in terms of how we go to market. But let me try to step back then, and I can follow up if I didn't fully answer your question. We have the home service plan, which is primarily a repair and replace model. What we want to do with our on-demand offering is have a repair and maintenance offering so that we are focused on areas that you don't have to access our business, our brand because you don't have a year-long subscription.

所以這就是為什麼，正如我在劇本中所說，我們正在考慮如何進入市場進行全面改革。但是，讓我試著退後一步，如果我沒有完全回答你的問題，我可以跟進。我們有家庭服務計劃，主要是維修和更換模式。我們希望通過按需提供的服務提供維修和維護服務，以便我們專注於您不必訪問我們的業務、我們的品牌的領域，因為您沒有為期一年的訂閱。

We think that in tandem, a subscription model, the year -- annual contracts plus an ability to engage with us on a one-off a la carte, whatever you want to call it, basis around repair and maintenance is really an ideal blending of our overall business model. So I think, like I said earlier, this is important to keep our focus on, on-demand. We've got to restage the ProConnect business.

我們認為，訂閱模式、年度合同以及與我們進行一次性點菜的能力，無論您想怎麼稱呼它，圍繞維修和維護的基礎確實是一個理想的混合我們的整體商業模式。所以我認為，就像我之前所說的，這對於保持我們的關注點很重要，按需提供。我們必須重演 ProConnect 業務。

And in the interim, we're continuing to support it, albeit at lower levels. So we'll continue to see revenue coming out of this year. And there's been some good work done by the current team on funnel improvements and interaction with our customers and our contractors. So it's going to be important as we go forward, but it just hasn't been executed the way we probably should have.

在此期間，我們將繼續支持它，儘管水平較低。因此，我們將繼續看到今年的收入。目前的團隊在改進漏斗以及與我們的客戶和承包商的互動方面做了一些很好的工作。因此，在我們前進的過程中，這將很重要，但它並沒有按照我們應該有的方式執行。

Okay. That's helpful. And then on the real estate side, I know you laid out a bunch of the headwinds you're seeing at the sort of macro. But are you also seeing maybe a share shift inside that market, maybe you're not holding the share like you intended to, you're not growing the share like you want to?

好的。這很有幫助。然後在房地產方面，我知道你列出了你在宏觀上看到的一些不利因素。但是你是否也看到了該市場內部的份額轉移，也許你沒有按照你的意願持有份額，你沒有按照你的意願增加份額？

And if that's the case, what do you plan to do about it? How do you plan to address that? And then if I just sneak in one other question, maybe for Brian, is third quarter has been very hot so far. What are you assuming as far as headwinds from the weather and increased service calls?

如果是這樣，你打算怎麼做？你打算如何解決這個問題？然後，如果我只是偷偷問另一個問題，也許對布賴恩來說，第三季度到目前為止一直很熱。就天氣的逆風和增加的服務電話而言，您有什麼假設？

Yes. So Ian, let me address the real estate piece because while I won't comment specifically on whether we've lost share or not, let's put it this way, we have to gain share. Our performance in real estate is not to the level notwithstanding a challenging market. And Jes Fields, our new Chief Sales Officer, is all over this. She has brought in a new sales culture, she's brought in accountability, and she's doing things that are blocking and tackling. She's got now -- everybody has a weekly field sales plan, there's a weekly training module every week that the field agents have to go into. She is completely focused on real estate and not trying to chase a bunch of other opportunities, which maybe we should get to later on.

是的。所以伊恩，讓我談談房地產這件事，因為雖然我不會具體評論我們是否失去了份額，但讓我們這樣說吧，我們必須獲得份額。儘管市場充滿挑戰，但我們在房地產方面的表現並未達到水平。我們的新任首席銷售官 Jes Fields 就在這方面。她帶來了一種新的銷售文化，她帶來了責任感，並且她正在做一些阻礙和解決問題的事情。她現在有了——每個人都有每週的現場銷售計劃，每週都有一個每周培訓模塊，現場代理必須參加。她完全專注於房地產，而不是試圖追逐一堆其他機會，也許我們應該稍後再談。

Right now, we need to fix real estate, and Jes is all over that. She's so much energy and she's really brought a dynamism, if you will, I think that's a word, to our sales process. So I couldn't be more thrilled with her hiring. And I believe she is sort of a no-excuses person, and she believes there are going to be 5 million to 6 million of homes sold this year, and we need to get our fair share of that. Brian, I'll turn it over to you for the other question.

現在，我們需要修復房地產，而 Jes 就是這樣。她精力充沛，她真的給我們的銷售過程帶來了活力，如果你願意的話，我認為這是一個詞。所以我對她的聘用感到非常興奮。而且我相信她是一個沒有藉口的人，她相信今年將售出 500 萬到 600 萬套房屋，我們需要從中獲得公平的份額。布賴恩，我會把它交給你的另一個問題。

Thanks, Bill, and good morning, Ian. Regarding the third quarter and HVAC claims, we've had the benefit of seeing July, and it was a hot July, but we've built that into our forecast and also maybe a little more hot weather in August. And we start to trail off towards the end of the third quarter, obviously, with HVAC claims. So I think we've built that into our guidance, but we're not sitting pat watching the weather.

謝謝，比爾，早上好，伊恩。關於第三季度和 HVAC 索賠，我們有幸看到了 7 月，這是一個炎熱的 7 月，但我們已將其納入我們的預測，而且 8 月的天氣可能會更熱一些。顯然，隨著 HVAC 索賠，我們在第三季度末開始落後。所以我認為我們已經將這一點納入了我們的指導，但我們並沒有坐視天氣。

As I mentioned in my prepared remarks, we're improving our processes to lower our cost. We're trying to move to the mid-range, mid-80s for our preferred contractors. We're expanding our recruiting for contractors. We're improving the end-to-end processes, as I mentioned in the call. And also on the sourcing side, trying to lower our costs through maximizing our sourcing efforts and purchasing lower cost materials that our contractors could purchase. So we're watching the weather, we're trying to reduce our costs and things we can control. Is that helpful?

正如我在準備好的評論中提到的，我們正在改進我們的流程以降低成本。我們正在努力為我們首選的承包商進入中檔、80 年代中期。我們正在擴大對承包商的招聘。正如我在電話中提到的那樣，我們正在改進端到端流程。在採購方面，通過最大限度地提高采購力度和購買承包商可以購買的低成本材料來降低我們的成本。所以我們正在關注天氣，我們正在努力降低我們的成本和我們可以控制的事情。這有幫助嗎？

Yes, this is great.

是的，這很棒。

Our next question comes from Youssef Squali from Truist Securities.

我們的下一個問題來自 Truist Securities 的 Youssef Squali。

This is Nick Cronin, on for Youssef. Can you just talk a little bit about the pace of price increases? I think you said you've gone through 2 already this year with another to go. And any impact you're seeing on customer churn? And then secondly, just for Streem, is that still on track to do $10 million to $15 million this year? I know you called out ProConnect going down.

這是尼克·克羅寧，代表優素福。你能簡單談談價格上漲的步伐嗎？我想你說你今年已經經歷了 2 次，還有一次要去。您對客戶流失有何影響？其次，就斯特里姆而言，今年是否仍有望達到 1000 萬至 1500 萬美元？我知道你叫 ProConnect 宕機了。

So let me take the price increase piece, and Brian, please augment whatever comments I make. As Brian said, we have taken 2 price increases, we're planning on a third. We are targeting it, well -- by the time the year ends, we will have taken approximately a 12% to 13% increase in price. Any churn or declines have been as expected, as we've said all along. We are generally inelastic. We don't take that for granted. So we're doing everything to market and provide value to our customers.

因此，讓我接受價格上漲部分，布賴恩，請增加我發表的任何評論。正如布賴恩所說，我們已經進行了兩次價格上漲，我們正計劃進行第三次上漲。我們的目標是，嗯——到年底，我們的價格將上漲大約 12% 到 13%。正如我們一直所說的那樣，任何流失或下降都符合預期。我們通常是缺乏彈性的。我們不認為這是理所當然的。因此，我們正在盡一切努力向客戶推銷和提供價值。

But given this incredible inflation and contractor costs, we're somewhat forced into taking pricing beyond what we might normally have expected. So as you noted, we will have a decline in customers this year, but that is primarily due to the real estate channel. So I feel pretty good about how we're controlling and managing and staging the pricing actions that we're taking. But I'll turn the rest over to you, Brian.

但考慮到令人難以置信的通貨膨脹和承包商成本，我們在某種程度上被迫採取超出我們通常預期的定價。因此，正如您所指出的，我們今年的客戶數量會有所下降，但這主要是由於房地產渠道。所以我對我們如何控制、管理和分期我們正在採取的定價行動感覺很好。但我會把剩下的交給你，布賴恩。

No, I think you covered it well, Bill. I would -- the only thing I'd say, Nick, is that 12% to 13% price increase, if you look at it on an annualized basis, on our revenue base, that increase more than covers the COGS increase we're going to have this year. And although we're not going to see it all this year, as I described in my comments, we'll see the benefits next year. But that just shows the power of pricing with our model.

不，我認為你講得很好，比爾。我會 - 尼克，我唯一想說的是，如果你按年計算，在我們的收入基礎上，價格上漲 12% 到 13%，這個增長超過了我們的 COGS 增長今年會有。正如我在評論中所描述的那樣，儘管我們今年不會全部看到，但明年我們會看到好處。但這只是顯示了我們模型定價的力量。

Got it. And then Streem, is that on pace to do $10 million to $15 million still?

知道了。然後是斯特里姆，這是否還在以 1000 萬到 1500 萬美元的速度增長？

Yes, Streem is not going to track that way again. As Bill described, we're going to view that as a technology play for us. We love the business, but it's more of a technology play supporting our core home service plan business. So we're investing less money into that business to find customers and enterprise customers. So that volume, we -- that revenue will be much lower this year than that.

是的，Streem 不會再這樣追踪了。正如比爾所描述的，我們將把它視為我們的技術遊戲。我們熱愛這項業務，但它更多的是支持我們的核心家庭服務計劃業務的技術遊戲。因此，我們在該業務上投入更少的資金來尋找客戶和企業客戶。所以這個數量，我們 - 今年的收入將比這低得多。

And you've built that in the guidance -- the revenue guide we gave you, that's included.

你已經在指南中建立了這一點——我們給你的收入指南，包括在內。

That's included in the guidance, yes. It will be less than $10 million.

這包含在指南中，是的。它將不到1000萬美元。

Our next question comes from Justin Patterson from KeyBanc.

我們的下一個問題來自 KeyBanc 的 Justin Patterson。

Great. Perhaps just a big picture one around the home service plan opportunity. This is a product that's been in market for quite some time now. How do you think about just the attractiveness of that opportunity? Where you are in market share penetration? And what the incremental investments are to really grow home service plan adoption more meaningfully?

偉大的。也許只是圍繞家庭服務計劃機會的大圖。這是一款已經上市很長時間的產品。您如何看待這個機會的吸引力？您的市場份額滲透率在哪裡？什麼增量投資才能真正更有意義地增加家庭服務計劃的採用？

Yes. Justin, it's one I ponder every day, if you will. Part of the reason we're doing the customer segmentation study, which we haven't done for a few years, is to state the obvious. The world has changed and certainly the home being so much more a centerpiece of your complete life. We've got to understand those dynamics. The research -- the tracking work we do, there is still a need for repair, home maintenance, replacement of major systems.

是的。賈斯汀，如果你願意的話，這是我每天都在思考的問題。我們進行客戶細分研究的部分原因是為了說明這一點。世界已經發生了變化，當然，家已成為您整個生活的核心。我們必須了解這些動態。研究——我們所做的跟踪工作，仍然需要維修、上門維護、更換主要係統。

So I think the core market, the addressable market -- and we talk a lot about $500 billion total addressable market. I'm trying to get to a real total addressable market for us. We're not going to get into the renovation business. But I do think that between the on-demand area and home service plans, we're going to have a sufficiently large business to try to attack. So I think the opportunity is still there. I do believe we have to modernize our approach. I think there are some steps we have to take on the product and the offering.

所以我認為核心市場，潛在市場——我們經常談論 5000 億美元的潛在市場。我正在努力為我們找到一個真正的潛在市場。我們不會涉足裝修業務。但我確實認為，在按需區域和家庭服務計劃之間，我們將擁有足夠大的業務來嘗試攻擊。所以我認為機會仍然存在。我確實相信我們必須使我們的方法現代化。我認為我們必須對產品和產品採取一些步驟。

We took some steps this year with our Platinum product, which expanded services. We're able to get an additional pricing opportunities there, but we also ran into more service costs, and we launched that in the year where we had all the issues that Brian talked about with contractor costs. So I think there's some rebalancing we need to do. But I think, overall, the market is still there.

今年我們在白金產品上採取了一些措施，擴展了服務。我們能夠在那裡獲得額外的定價機會，但我們也遇到了更多的服務成本，我們在遇到 Brian 談到的承包商成本的所有問題的那一年推出了這項服務。所以我認為我們需要做一些重新平衡。但我認為，總體而言，市場仍然存在。

As for investment, diving through all of that right now, I think we can still have a very healthy financial model as we go forward. I think we just have to figure out what's the best way to go to market with that in terms of our marketing, our sales effort, and that's really what we're grinding on right now.

至於投資，現在通過所有這些，我認為隨著我們的前進，我們仍然可以擁有一個非常健康的財務模型。我認為我們只需要弄清楚就我們的營銷、銷售努力而言，進入市場的最佳方式是什麼，而這正是我們現在正在努力的方向。

Our next question comes from Eric Sheridan from Goldman Sachs.

我們的下一個問題來自高盛的 Eric Sheridan。

Maybe taking a step back, I know we've talked a lot about the short term on the call. But Bill, you're new to the role you have now in the organization. It's been a couple of months since you took on that role. Can you give us a little bit of your perspective of what you've seen from inside the company? And how you think about your agenda versus maybe what in prior periods the company was focused on? And how you think about affecting change inside the organization? Maybe that's question one.

也許退後一步，我知道我們在電話會議上談了很多關於短期的問題。但是比爾，你對你現在在組織中的角色不熟悉。自從你擔任那個角色已經過去幾個月了。您能否就您從公司內部看到的情況談談您的看法？你如何看待你的議程與公司之前關注的議程？您如何看待影響組織內部的變革？或許這是第一個問題。

And then two, just coming back to the real estate. Again, zooming out, understood blocking and tackling renewed focus around gaining share. Can you give us a little bit sense of like how the market share dynamic changes? Like what should we be thinking of in terms of the ramp of putting investments behind wanting to change the dynamic in real estate and actually seeing it come through in the results? And how much of that is in your control as a result of investments versus out of your control just because of the broader real estate environment.

然後是兩個，剛回到房地產。再次，縮小範圍，了解阻塞和解決圍繞獲得份額的新焦點。您能否讓我們了解一下市場份額的動態變化？就像我們應該考慮如何將投資放在想要改變房地產動態並實際看到它的結果中？其中有多少是由於投資而在您的控制範圍內，而不是由於更廣泛的房地產環境而不受您的控制。

Okay. And if I didn't get all that, come back at it. But in terms of my perspective relative to where we were. At the highest level, the strategy has not changed. We still believe that there's a lot of vitality in home service plans. And we still believe that there is an opportunity for us, notwithstanding we may not have executed it particularly well to date in the on-demand piece. So that is the highest level, is unchanged.

好的。如果我沒有得到所有這些，請回來。但就我對我們所處位置的看法而言。在最高級別，策略沒有改變。我們仍然相信家庭服務計劃充滿活力。我們仍然相信我們有機會，儘管迄今為止我們在點播節目中可能沒有特別好地執行它。所以說是最高級別，是不變的。

What has changed is the increased emphasis I put on home service plans. I think, previously, we're really trying to build Streem off the platform as a separate business, if you will, in ProConnect. And I think I've come to believe that we need to be more centered almost call it 1 business and use the assets that we have with Streem, use the learning that we have with ProConnect, use the ability for us to evolve the home service plan piece to really build a better offering as we go forward.

改變的是我更加重視家庭服務計劃。我認為，以前，我們真的試圖在 ProConnect 中將 Streem 作為一個單獨的業務從平台上構建出來，如果你願意的話。而且我認為我已經開始相信我們需要更加集中，幾乎將其稱為 1 業務並使用我們在 Streem 中擁有的資產，使用我們在 ProConnect 中擁有的學習，使用我們發展家庭服務的能力在我們前進的過程中，計劃一塊真正建立更好的產品。

That is what a couple of minutes ago is what we're grinding on. So I think the company, generally, the broad population is really excited about the direction we're going in. There's a lot of people who -- I've used the term around the company, let's reinvent the category we invented, and that's a little bit of the mantra that we're using internally as we really are questioning all elements of that.

這就是幾分鐘前我們正在研究的內容。所以我認為公司，一般來說，廣大民眾對我們前進的方向感到非常興奮。有很多人——我在公司周圍使用過這個詞，讓我們重新發明我們發明的類別，那就是我們在內部使用的一些口頭禪，因為我們確實在質疑其中的所有元素。

And I think we can have a very exciting modern offering. We continue to make steps on our digital transformation. It reminds me a little bit of when I walked in to H&R Block, and Block made their major strategic error 15 years before I got there in 2011 when they didn't engage within the digital area. They said it's going to cannibalize their business, they listened to the franchisees.

而且我認為我們可以提供非常令人興奮的現代產品。我們繼續在數字化轉型方面邁出步伐。這讓我想起了當我走進 H&R Block 時，Block 在我 2011 年到達那裡的 15 年之前犯了重大戰略錯誤，當時他們沒有涉足數字領域。他們說這會蠶食他們的業務，他們聽取了加盟商的意見。

And we didn't really have a very good digital offering. By the time I left there, we had a product that in some reviews was superior to TurboTax. Same situation here. We've been talking about a digital transformation. I'm really, really impressed with Tony Bacos, the people he's brought in with him in terms of the way he is relentlessly focusing on that.

而且我們並沒有真正提供非常好的數字產品。當我離開那裡時，我們的產品在某些評論中優於 TurboTax。這裡的情況相同。我們一直在談論數字化轉型。托尼·巴科斯（Tony Bacos）給我留下了非常非常深刻的印象，就他不懈地專注於這一點的方式而言，他帶來的人。

So I think we've got a lot of things lined up here. I've got some new members of the management team that I'm fired up about in terms of marketing and sales. And then Raj, who's working on product and pricing is just -- his experience is just invaluable. So we're pretty jazzed about our opportunity as we go forward, notwithstanding the no one's happy with where we are in 2022.

所以我認為我們在這里安排了很多事情。我有一些管理團隊的新成員，我對營銷和銷售方面很感興趣。然後是負責產品和定價的 Raj，他的經驗非常寶貴。因此，儘管沒有人對我們在 2022 年所處的位置感到滿意，但我們對前進的機會感到非常興奮。

As far as real estate goes, I think what Jes and I have talked about is we've got to stop worrying about where the market is going. As Jes pointed out, when she presented to our Board last week, we're still going to have 5 million or 6 million homes sold next year. That's what our focus needs to be. We need to be in the game with regard to all those sales. We have just re-upped our partnership with Anywhere, former Realogy. We've got a partnership with HSOA. I was with Jes last week on a sales call with another partner that we're trying to build a trusted partner relationship with.

就房地產而言，我認為 Jes 和我談論的是我們必須停止擔心市場的走向。正如 Jes 指出的那樣，當她上周向我們的董事會提交報告時，明年我們仍將售出 500 萬或 600 萬套房屋。這就是我們需要的重點。我們需要參與所有這些銷售的遊戲。我們剛剛重新加強了與前 Realogy 的 Anywhere 的合作夥伴關係。我們與 HSOA 建立了合作關係。上週，我與 Jes 一起與另一個合作夥伴進行了銷售電話會議，我們正試圖與之建立可信賴的合作夥伴關係。

So we are trying to go at a high level with major real estate houses, and yet -- and also do it, grind it out real estate agent by real estate agent. So as I said a little bit earlier, it's a lot of blocking and tackling. We got to make sure that we have coverage. We got to make sure we have plans. We got to make sure we have targets, and that's really the spirit that Jes has brought forward.

因此，我們正在嘗試與主要房地產公司進行高水平的合作，但是 - 並且也這樣做，通過房地產經紀人將房地產經紀人淘汰出局。所以正如我之前所說的，這需要大量的阻截和攔截。我們必須確保我們有報導。我們必須確保我們有計劃。我們必須確保我們有目標，而這正是 Jes 所提出的精神。

(Operator Instructions) Our next question comes from Brian Fitzgerald from Wells Fargo.

（操作員說明）我們的下一個問題來自富國銀行的 Brian Fitzgerald。

We wanted to ask about the dynamics you're seeing, maybe more in general, in repair, in extensions, in the maintenance, maybe into home improvement over time. With the macro headwinds rising, are you seeing any shifts in consumer behavior resonating through dynamics, getting more frugal, maybe more tolerance for fixing versus replacing, anything you can tell there?

我們想詢問您所看到的動態，也許更籠統地說，在維修、擴建、維護中，也許隨著時間的推移進入家庭裝修。隨著宏觀逆風的上升，您是否看到消費者行為的任何變化通過動態產生共鳴，變得更加節儉，也許對修復與更換的容忍度更高，您可以在那裡告訴任何事情嗎？

It's a great question, Brian. I think I would describe it right now as swirling winds. I think a lot of people have -- with the downturn in the stock market, with really some uncertainty generally, with the way inflation has impacted people at the grocery store, in restaurant and all the other areas, I don't think we have a full picture of this right now because it has been -- the pace has been brisk.

這是一個很好的問題，布賴恩。我想我現在會把它描述為旋風。我認為很多人都有——隨著股市的低迷，總體上確實存在一些不確定性，通貨膨脹對雜貨店、餐館和所有其他領域的人們的影響，我認為我們沒有現在全面了解這一點，因為它一直 - 步伐一直很快。

I think, generally, these things normalize. My experience is we're going through the shock, we're going to get through it. People are going to still want to buy a new home, people still want to their home, people are still going to need to maintain their home, repair systems, et cetera.

我認為，一般來說，這些事情都會正常化。我的經驗是我們正在經歷衝擊，我們將度過難關。人們仍然想買新房，人們仍然想要自己的家，人們仍然需要維護他們的家，維修系統等等。

Let's try and keep talking about the broad perspective for this company is actually quite strong. We have to execute better. There's no doubt about that. But I think that we still see things -- while there's some shocks to the system, we still see things that point to a positive future. And we'll get through this stage both as a company, and, I think in general, as an economy, and then we'll go from there.

讓我們試著繼續談論這家公司的廣闊視野實際上是相當強大的。我們必須更好地執行。毫無疑問。但我認為我們仍然看到了一些事情——雖然系統受到了一些衝擊，但我們仍然看到了指向積極未來的事情。我們將作為一家公司度過這個階段，我認為總的來說，作為一個經濟體，然後我們將從那裡開始。

That concludes our Q&A session for today. I will now hand back to the management team for closing remarks.

今天的問答環節到此結束。我現在將交還給管理團隊以結束髮言。

Thank you for participating this morning in our Q2 earnings call. We look forward to speaking with you going forward. Thank you.

感謝您今天早上參加我們的第二季度財報電話會議。我們期待在未來與您交談。謝謝你。

Ladies and gentlemen, thank you again for joining Frontdoor's Second Quarter 2022 Earnings Call. Today's call is now concluded.

女士們先生們，再次感謝您參加 Frontdoor 的 2022 年第二季度財報電話會議。今天的電話會議現已結束。