(FTDR) 2023 Q1 法說會逐字稿

Ladies and gentlemen, welcome to Frontdoor's First Quarter 2023 Earnings Call. Today's call is being recorded and broadcast 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. At this time, we'll begin today's call. Go ahead, Mr. Davis.

女士們，先生們，歡迎來到 Frontdoor 2023 年第一季度財報電話會議。今天的通話正在錄音並在互聯網上播出。今天的電話會議首先由投資者關係副總裁兼財務主管馬特·戴維斯 (Matt Davis) 主持，他將介紹電話會議上的其他發言人。這時，我們將開始今天的電話會議。繼續，戴維斯先生。

Thank you, operator. Good morning, everyone, and thank you for joining Frontdoor's First Quarter 2023 Earnings Conference Call. Joining me today are Frontdoor's Chairman and Chief Executive Officer, Bill Cobb; and Frontdoor's Chief Financial Officer, Jessica Ross.

謝謝你，運營商。大家早上好，感謝您參加 Frontdoor 的 2023 年第一季度收益電話會議。今天加入我的是 Frontdoor 的董事長兼首席執行官 Bill Cobb；和 Frontdoor 的首席財務官 Jessica Ross。

Let me start by reminding you that we are coming off our Investor Day in early March, and there is a lot more detail about our company and our strategy in the Investor Day presentation, which we will be referring back to during today's call. 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.

讓我首先提醒您，我們將在 3 月初結束投資者日，在投資者日的演示中有更多關於我們公司和我們戰略的細節，我們將在今天的電話會議上提到這些細節。將在今天的電話會議中使用的新聞稿和幻燈片演示可以在 Frontdoor 網站的投資者關係部分找到，該部分位於 investors.frontdoorhome.com。

There's also additional detail about our new Frontdoor brand at frontdoor.com, and in our new mobile app that you can download in the App Store and on Google Play.

在 frontdoor.com 上還有關於我們新的 Frontdoor 品牌的更多詳細信息，在我們的新移動應用程序中，您可以在 App Store 和 Google Play 上下載。

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. All forward-looking statements are made as of today, May 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.

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。這些陳述受各種風險和不確定性的影響，可能導致實際結果與今天在這裡討論的結果大不相同。公司向美國證券交易委員會提交的文件中詳細解釋了這些風險因素。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。所有前瞻性陳述均於今天 5 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。

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 the 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.

在今天的電話會議中，我們還將參考某些非 GAAP 財務指標。我們在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 GAAP 財務措施與最具可比性的 GAAP 財務措施的對賬，以更好地幫助您了解我們的財務業績。

I will now turn the call over to Bill Cobb for opening comments. Bill?

我現在將把電話轉給 Bill Cobb 以發表評論。賬單？

Thanks, Matt, and good morning, everyone. Before we get into the details of our first quarter earnings call, I wanted to address our full year 2023 outlook. Let me be clear, while we had a tremendous first quarter, we will not be raising our full year 2023 outlook at this time. It is not our practice to raise our outlook after just one quarter. It's too early to do that. We are heading into our peak summer season, which typically has much higher claims. Additionally, our first quarter financial results benefited from favorable timing around SG&A spend and weather. On the revenue side, our go-to-market channels remain challenged, and it is still too early to assess the revenue profile of our new Frontdoor brand.

謝謝，馬特，大家早上好。在我們討論第一季度財報電話會議的細節之前，我想談談我們的 2023 年全年展望。讓我明確一點，雖然我們第一季度表現出色，但此時我們不會提高 2023 年全年展望。我們的做法不是在一個季度後就提高我們的展望。現在這樣做還為時過早。我們即將進入我們的夏季高峰期，通常會有更高的索賠。此外，我們第一季度的財務業績得益於圍繞 SG&A 支出和天氣的有利時機。在收入方面，我們的上市渠道仍然面臨挑戰，現在評估我們新 Frontdoor 品牌的收入狀況還為時過早。

So with that, let's jump into Slide 4 of the web deck. I am pleased to report that we are making good progress on advancing our strategic initiatives that we laid out at our Investor Day in March. As I just mentioned, our first quarter financial results were significantly better than expected. We saw gross margins expand as our prior pricing actions are flowing through. Cost pressures continue to moderate, and our process improvement initiatives are beginning to take hold. For example, we drove a significant increase in preferred contractor utilization, which rose 270 basis points to a 10-year high of 84% in the first quarter.

因此，讓我們跳到網絡甲板的幻燈片 4。我很高興地報告，我們在推進我們在 3 月份投資者日制定的戰略舉措方面取得了良好進展。正如我剛才提到的，我們第一季度的財務業績明顯好於預期。我們看到毛利率隨著我們之前的定價行動的進行而擴大。成本壓力繼續緩和，我們的流程改進計劃開始發揮作用。例如，我們推動了首選承包商利用率的顯著提高，第一季度上升了 270 個基點，達到 84% 的 10 年新高。

Additionally, we continue to make progress in sourcing more parts and replacement equipment for our contractors, where our larger size enables us to purchase at a substantial discount. We also increased our direct-to-consumer or DTC demand, which I will cover in more detail shortly. And in April, we launched Frontdoor, our one-stop app for all things home maintenance and repair. While it remains early in the year, we are delivering on what we said we would do, and we look forward to continuing our progress throughout the rest of 2023.

此外，我們在為承包商採購更多零件和更換設備方面繼續取得進展，我們更大的規模使我們能夠以大幅折扣購買。我們還增加了直接面向消費者或 DTC 的需求，稍後我將對此進行更詳細的介紹。 4 月，我們推出了 Frontdoor，這是我們的一站式家庭維護和維修應用程序。雖然今年仍處於年初，但我們正在兌現我們所說的我們會做的事情，我們期待在 2023 年餘下的時間裡繼續取得進展。

Now let's turn to Slide 5, where I will cover the new Frontdoor app that was launched in April. We reviewed the new offering in detail at our Investor Day. In short, we believe that we have really differentiated our offering through the video chat with an expert feature, which will revolutionize how homeowners maintain and repair their homes. Our team has supported this launch with an innovative and talked about marketing campaign. Some of you have probably already seen our fun and compelling TV and digital spots. Our robust marketing effort also leverages several strategic partnerships, such as Major League Baseball's opening week, Home & Garden TV and NFL Draft week.

現在讓我們轉到幻燈片 5，我將在其中介紹 4 月份推出的新 Frontdoor 應用程序。我們在投資者日詳細審查了新產品。簡而言之，我們相信我們通過具有專家功能的視頻聊天真正使我們的產品與眾不同，這將徹底改變房主維護和修理房屋的方式。我們的團隊通過創新且備受關注的營銷活動來支持此次發布。你們中的一些人可能已經看過我們有趣且引人入勝的電視和數字廣告。我們強大的營銷工作還利用了多個戰略合作夥伴關係，例如美國職業棒球大聯盟的開幕週、家庭與花園電視和 NFL 選秀週。

We also have a program with Amazon, which will land the Frontdoor brand on millions of doorsteps across the country through our customized box design. That will happen mid-summer. All of these efforts are working.

我們還有一個與亞馬遜合作的項目，通過我們定制的盒子設計，Frontdoor 品牌將登陸全國數百萬家門口。那將發生在仲夏。所有這些努力都在奏效。

Since our launch 3 weeks ago, the app has now been downloaded over 165,000 times. We look forward to sharing more details next quarter. But for now, we are very pleased with the pace of downloads.

自 3 週前發布以來，該應用程序的下載量現已超過 165,000 次。我們期待在下個季度分享更多細節。但就目前而言，我們對下載速度感到非常滿意。

Now let's turn to Slide 6, which serves as a quick reminder of our Frontdoor product lineup. Frontdoor Basic is a free offering, where consumers can download the app at no cost and get one free video chat with an expert. The free product also includes rich content, including maintenance tips and repair videos. It's a great way to introduce the product and encourage upgrading to our more robust offering, Frontdoor Prime. At $99 per year, Prime includes everything in the basic plan, but members get 3 video chats per year. They also get access to steeply discounted HVAC systems with available financing and special member pricing on home products and services. If you haven't already done so, I encourage you to download the app and try it out for yourself. You can also go to frontdoor.com for more details.

現在讓我們轉到幻燈片 6，它可以快速提醒我們的 Frontdoor 產品系列。 Frontdoor Basic 是一項免費產品，消費者可以免費下載該應用程序並與專家進行一次免費視頻聊天。免費產品還包括豐富的內容，包括維護技巧和維修視頻。這是介紹產品並鼓勵升級到我們更強大的產品 Frontdoor Prime 的好方法。每年 99 美元，Prime 包括基本計劃中的所有內容，但會員每年可以獲得 3 次視頻聊天。他們還可以獲得大幅折扣的 HVAC 系統，以及可用的融資和家庭產品和服務的特殊會員定價。如果您還沒有這樣做，我鼓勵您下載該應用程序並親自試用。您也可以訪問 frontdoor.com 了解更多詳細信息。

Now moving to Frontdoor Pro, on-demand home services with a la carte pricing. This is our service delivery channel rather than a consumer-facing offering. Its services are available through both, the Frontdoor and AHS brands. We are very excited about the potential growth in Frontdoor Pro, which could be one of the largest revenue streams for the new brand. Specifically, we are extremely optimistic about our HVAC upgrade offering that is exceeding our revenue expectations so far this year.

現在轉向 Frontdoor Pro，按需點菜定價的家庭服務。這是我們的服務交付渠道，而不是面向消費者的產品。它的服務可通過 Frontdoor 和 AHS 品牌獲得。我們對 Frontdoor Pro 的潛在增長感到非常興奮，這可能是新品牌最大的收入來源之一。具體來說，我們對今年迄今為止超出我們收入預期的 HVAC 升級產品非常樂觀。

Turning to Slide 7, and our upcoming Frontdoor Premium product that will be coming out in June. Premium is our reinvention of the home service plan. It is our goal to make this an easy, convenient one-stop shop for everything the homeowners need to repair and maintain their homes. It's an annual membership plan that starts at $35 per month. Premium includes all the benefits of Frontdoor Pro -- Frontdoor Basic and Prime, and it will cover the same systems and appliances that we do today under American Home Shield, with an additional option for HVAC coverage. For premium members, it is easy to make service requests through the app. For a flat service fee of $100, we will fix the covered item, or the member will be provided with a payout of $500.

轉向 Slide 7，以及我們即將於 6 月推出的 Frontdoor Premium 產品。 Premium 是我們對家庭服務計劃的改造。我們的目標是使它成為一個簡單、方便的一站式商店，滿足房主維修和保養房屋所需的一切。這是一個年度會員計劃，每月 35 美元起。 Premium 包括 Frontdoor Pro 的所有優勢——Frontdoor Basic 和 Prime，它將涵蓋我們今天在 American Home Shield 下使用的相同系統和設備，以及 HVAC 覆蓋範圍的附加選項。對於高級會員，可以通過該應用程序輕鬆提出服務請求。對於 100 美元的固定服務費，我們將修復承保項目，否則將向會員支付 500 美元。

In the case of those who elect HVAC coverage, the payout will be $1,000. This process allows for a more digitally enhanced and transparent experience, while enabling us to better predict costs. Additionally, for premium members receiving a payout, we will work with them to replace their system or appliance. This includes all of the prime discounts previously mentioned.

對於選擇 HVAC 保險的人，賠付金額為 1,000 美元。這個過程可以提供更加數字化和透明的體驗，同時使我們能夠更好地預測成本。此外，對於收到付款的高級會員，我們將與他們合作更換他們的系統或設備。這包括前面提到的所有主要折扣。

Now turning to Slide 8, where I will provide a business update on American Home Shield, starting with the DTC channel. First, I want to be clear that we have 2 growth engines, and we are as equally focused on growing American Home Shield as we are on launching the new Frontdoor brand. DTC has been a tremendous growth platform for us. And while it has been challenged recently, we are redoubling our efforts to get this channel back to positive customer growth. In fact, our team has really been digging into the main drivers of the recent decline.

現在轉到幻燈片 8，我將在其中提供有關 American Home Shield 的業務更新，從 DTC 頻道開始。首先，我想明確一點，我們有兩個增長引擎，我們同樣專注於發展 American Home Shield 和推出新的 Frontdoor 品牌。 DTC 對我們來說是一個巨大的增長平台。雖然它最近受到挑戰，但我們正在加倍努力使該渠道恢復正客戶增長。事實上，我們的團隊確實一直在挖掘近期下跌的主要驅動因素。

While it is an ongoing body of work, the team has identified 3 main issues impacting near-term demand. The first main issue is price. Over the past year, we significantly raised price for our home service plans in response to inflation. This was done with the goal of getting our gross margins back to historical levels. As part of our deep dive, the analysis showed that price had a bigger impact on our go-to-market channels and that the category for new consumers might not be as inelastic in this market environment.

雖然這是一項持續的工作，但該團隊已經確定了影響近期需求的 3 個主要問題。第一個主要問題是價格。在過去的一年裡，我們大幅提高了家庭服務計劃的價格以應對通貨膨脹。這樣做的目的是讓我們的毛利率回到歷史水平。作為我們深入研究的一部分，分析表明價格對我們的上市渠道影響更大，而且在這種市場環境下，新消費者的品類可能不會那麼缺乏彈性。

On the other hand, we have been pleasantly surprised by the stronger-than-expected elasticity in our renewal channel as our renewal rates have improved. Inflation is the second main issue impacting near-term demand. We have seen that higher inflation has impacted consumer sentiment and behavior. Further, with inflation comes rising media costs, creating additional pressure on our go-to-market strategies.

另一方面，隨著我們的續訂率提高，我們的續訂渠道的彈性強於預期，這讓我們感到驚喜。通脹是影響近期需求的第二個主要問題。我們已經看到更高的通貨膨脹影響了消費者的情緒和行為。此外，隨著通貨膨脹而來的是媒體成本的上升，給我們的上市戰略帶來了額外的壓力。

In response to these recent findings, we have pivoted our discounting strategy. Since we last spoke to you at our Investor Day, we have explored new discounting strategies and continue to test and learn how to better attract new DTC members. While we are pleased with these learnings and some of these early sales trends, we want to see more results before we adjust our full year DTC expectations.

為了響應這些最近的發現，我們調整了折扣策略。自從我們上次在投資者日與您交談以來，我們探索了新的折扣策略，並繼續測試和學習如何更好地吸引新的 DTC 成員。雖然我們對這些經驗教訓和其中一些早期銷售趨勢感到滿意，但我們希望在調整全年 DTC 預期之前看到更多結果。

Additionally, we have also taken steps to improve conversion. We are becoming more efficient at converting the demand we do generate. This is through efforts such as upgrading our call center leadership and training. DTC marketing spend is the third main issue impacting near-term demand. We had reduced DTC marketing spend in our original 2023 operating plan for AHS. This was done to improve overall marketing efficiency. Now that we are seeing better marketing effectiveness, we have decided to increase our spend compared to our initial plan in 2023. We will also work to continue to optimize marketing throughout the remainder of the year. Those are the near-term actions we are taking to address the decline in DTC sales.

此外，我們還採取措施提高轉化率。我們在轉換我們確實產生的需求方面變得更加有效。這是通過提升我們的呼叫中心領導力和培訓等努力實現的。 DTC 營銷支出是影響近期需求的第三個主要問題。我們在最初的 2023 年 AHS 運營計劃中減少了 DTC 營銷支出。這樣做是為了提高整體營銷效率。既然我們看到更好的營銷效果，我們決定與 2023 年的初始計劃相比增加支出。我們還將努力在今年剩餘時間繼續優化營銷。這些是我們為解決 DTC 銷售下降問題而採取的近期行動。

Longer term, we will continue to enhance branding and marketing as well as the value of American Home Shield. Specifically, we need to further differentiate and promote our products over the competition. We are also continuing our work to optimize pricing and discounting as we refresh our value proposition with key consumer segments.

從長遠來看，我們將繼續提升品牌和營銷以及 American Home Shield 的價值。具體來說，我們需要在競爭中進一步區分和推廣我們的產品。我們還在繼續努力優化定價和折扣，因為我們更新了對主要消費者群體的價值主張。

Now turning to Slide 9 and our real estate channel. The National Association of Realtors updated the adjusted annual rate of existing home sales for March to 4.4 million homes or a 22% decline over the prior year period. Inventory levels remain low and only 2.6 months of supply, which is one of the main drivers delaying the transition to a more balanced buyer and seller market. Regardless of market conditions, our sales team is focused on improving sales accountability through data usage and market-level dashboards. But at this point, it remains a challenging market to sell home service plans.

現在轉向幻燈片 9 和我們的房地產頻道。全國房地產經紀人協會將 3 月份的調整後成屋銷售年率更新為 440 萬套，比去年同期下降 22%。庫存水平仍然很低，只有 2.6 個月的供應量，這是延遲向更平衡的買賣雙方市場過渡的主要驅動因素之一。無論市場狀況如何，我們的銷售團隊都專注於通過數據使用和市場層面的儀表板來提高銷售責任感。但在這一點上，銷售家庭服務計劃仍然是一個充滿挑戰的市場。

Now turning to Slide 10, and our renewal channel. As I mentioned earlier, customer retention rates are coming in better than expected despite a targeted realized price increase of 11% in 2023. Retention rates actually increased 180 basis points to 75.9% in the first quarter. While channel mix shift is clearly a driver, our dynamic pricing strategies are delivering a price increase that our existing customers still find tremendous value in. We also continue to work on process improvements to drive members to renew.

現在轉到幻燈片 10 和我們的續訂頻道。正如我之前提到的，儘管 2023 年目標實現價格上漲 11%，但客戶保留率仍好於預期。第一季度保留率實際上增加了 180 個基點，達到 75.9%。雖然渠道組合轉變顯然是一個驅動因素，但我們的動態定價策略帶來了價格上漲，我們的現有客戶仍然從中發現了巨大的價值。我們還繼續致力於流程改進，以推動會員續訂。

Now in closing, we are off to a great start in 2023. We continue to expect our financial results to improve over 2022 as our prior pricing actions take hold, inflation headwinds continue to moderate and as we expand our process improvement efforts. As I told you at our Investor Day, we now have 2 growth engines that are focused on different consumer segments that will drive the business for years to come.

現在結束，我們在 2023 年有了一個良好的開端。我們繼續預計我們的財務業績將在 2022 年有所改善，因為我們之前的定價行動已經開始，通脹逆風繼續緩和，並且我們擴大了流程改進工作。正如我在投資者日告訴你的那樣，我們現在有兩個增長引擎，它們專注於不同的消費者群體，將在未來幾年推動業務發展。

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

我現在將電話轉給傑西卡來審查我們的財務業績。傑西卡？

Thanks, Bill, and good morning, everyone. Please turn to Slide 11, and I'll take you through our first quarter 2023 financial results. Starting at the top of our income statement, where first quarter revenue increased 4% versus the prior year period to $367 million, driven by a 10% increase from price, which more than offset a 5% decline in volume.

謝謝，比爾，大家早上好。請轉到幻燈片 11，我將向您介紹我們 2023 年第一季度的財務業績。從我們的損益表頂部開始，第一季度收入比上年同期增長 4% 至 3.67 億美元，這是由於價格上漲 10%，抵消了銷量下降 5% 以上。

Now let's move to Slide 12, where I'll review our revenue by channel. First quarter revenue derived from customer renewals increased 13% versus the prior year period due to realization of pricing actions taken last year. First year real estate revenue decreased 28% versus the prior year period, reflecting a continued decline in the number of home service plans sold due to the strong sellers market. First year DTC revenue decreased 5% versus the prior year period due to the items Bill covered earlier.

現在讓我們轉到幻燈片 12，我將在其中按渠道查看我們的收入。由於實現了去年採取的定價行動，第一季度來自客戶續訂的收入比上年同期增長了 13%。第一年的房地產收入較上年同期下降 28%，反映出由於賣方市場強勁，已售出的家庭服務計劃數量持續下降。由於法案較早涵蓋的項目，第一年 DTC 收入比上年同期下降 5%。

Now let's turn to Slide 13. Gross profit for the quarter increased $26 million to $170 million. This resulted in a 540-basis point increase in our gross profit margin to 46%. The gross profit improvement was primarily driven by higher realized price, a lower number of service requests driven by favorable weather as well as the moderation of inflationary cost pressures, as our cost per service request came in slightly better than expected at 7%. Our first quarter gross profit also reflects operational improvements we have made to the business such as increasing the percentage of jobs we assigned to our preferred contractors by 270 basis points to a 10-year high of 84%, as Bill mentioned earlier.

現在讓我們轉到幻燈片 13。本季度的毛利潤增加了 2600 萬美元，達到 1.7 億美元。這導致我們的毛利率增加了 540 個基點，達到 46%。毛利改善的主要原因是更高的實際價格、有利天氣導致的服務請求數量減少以及通脹成本壓力的緩和，因為我們的每項服務請求成本略好於預期的 7%。我們第一季度的毛利潤還反映了我們對業務所做的運營改進，例如，正如比爾之前提到的那樣，我們將分配給首選承包商的工作百分比提高了 270 個基點，達到 84% 的 10 年高點。

Our management team continues to be focused on initiatives such as this to drive operational excellence and sustainable margin improvement for our shareholders.

我們的管理團隊繼續專注於此類舉措，以推動卓越運營並為我們的股東帶來可持續的利潤率改善。

On Slide 14, you'll see that net income increased $20 million in the first quarter of 2023 to $22 million as a result of higher gross margins and favorable timing of SG&A expenses. Adjusted net income increased $20 million over the prior year period to $23 million. Adjusted EBITDA improved $29 million to $54 million.

在幻燈片 14 上，您會看到由於較高的毛利率和有利的 SG&A 支出時機，2023 年第一季度的淨收入增加了 2000 萬美元，達到 2200 萬美元。調整後的淨收入比上年同期增加 2000 萬美元，達到 2300 萬美元。調整後的 EBITDA 增加 2900 萬美元至 5400 萬美元。

Let's move to the (inaudible) table on Slide 15, and I'll provide more context for the year-over-year improvement in first quarter adjusted EBITDA. Starting at the top, we had $22 million of favorable revenue conversion. Contract claims costs decreased $4 million in the first quarter, primarily driven by a lower number of service requests per member and $6 million of favorable development, slightly offset by inflationary cost pressures.

讓我們轉到幻燈片 15 上的（聽不清）表格，我將為第一季度調整後的 EBITDA 的同比改善提供更多背景信息。從最高層開始，我們獲得了 2200 萬美元的有利收入轉換。第一季度合同索賠成本減少了 400 萬美元，這主要是由於每個成員的服務請求數量減少和 600 萬美元的有利發展，略微被通脹成本壓力所抵消。

Sales and marketing costs increased $3 million in the first quarter, primarily driven by efforts to grow the direct-to-consumer channel. Customer service costs decreased $2 million in the first quarter, driven by a lower number of service requests. And finally, interest and net investment income increased $3 million as a result of rising interest rates on cash deposits.

第一季度銷售和營銷成本增加了 300 萬美元，這主要是由於努力發展直接面向消費者的渠道。由於服務請求數量減少，第一季度客戶服務成本減少了 200 萬美元。最後，由於現金存款利率上升，利息和淨投資收入增加了 300 萬美元。

In summary, our first quarter adjusted EBITDA (inaudible) was a record split between favorable gross margin and SG&A costs as well as continued execution of process improvement. Please now turn to Slide 16 for a review of our first quarter cash flow.

總而言之，我們第一季度調整後的 EBITDA（聽不清）是有利的毛利率和 SG&A 成本以及持續執行流程改進之間的創紀錄分割。現在請轉到幻燈片 16，查看我們第一季度的現金流量。

Net cash provided from operating activities was $60 million for the 3 months ended March 31, 2023, which is comprised of $34 million in earnings adjusted for noncash charges and $26 million in cash provided from working capital. Cash provided from working capital was primarily driven by seasonality as our first quarter can be an exceptionally strong cash generation period. Net cash used for investing activities was $8 million for the 3 months ended March 31, 2023 and was primarily comprised of capital expenditures related to investments in technology. Net cash used for financing activities was $7 million for the 3 months ended March 31, 2023 and was primarily comprised of debt payments.

截至 2023 年 3 月 31 日的三個月，經營活動提供的現金淨額為 6000 萬美元，其中包括非現金費用調整後的 3400 萬美元收益和營運資金提供的 2600 萬美元現金。營運資金提供的現金主要受季節性因素驅動，因為我們的第一季度可能是一個異常強勁的現金產生期。截至 2023 年 3 月 31 日的三個月，用於投資活動的淨現金為 800 萬美元，主要包括與技術投資相關的資本支出。截至 2023 年 3 月 31 日的三個月，用於融資活動的現金淨額為 700 萬美元，主要包括債務支付。

On Page 17, you will see that our free cash flow, calculated as net cash provided from operating activities, less property additions, was $52 million for the 3 months ended March 31, 2023. We are projecting approximately $100 million of free cash flow for the full year.

在第 17 頁，您將看到截至 2023 年 3 月 31 日止的 3 個月，我們的自由現金流量為 5200 萬美元，計算方式為經營活動提供的淨現金減去新增資產。我們預計自由現金流量約為 1 億美元整年。

We ended the first quarter with $337 million in cash. This was comprised of $150 million of restricted net assets and unrestricted cash of $187 million. I covered our capital allocation strategy in detail at our Investor Day in March. The main message I want to deliver on this call is that we have a solid financial position, our unrestricted cash is growing along with our confidence in the business, and it remains our intention to return approximately $80 million of cash to shareholders through our existing share repurchase program in 2023.

我們以 3.37 億美元的現金結束了第一季度。這包括 1.5 億美元的受限淨資產和 1.87 億美元的非受限現金。我在三月份的投資者日詳細介紹了我們的資本配置策略。我想在這次電話會議上傳達的主要信息是，我們擁有穩固的財務狀況，我們不受限制的現金隨著我們對業務的信心而增長，我們仍然打算通過我們現有的股份向股東返還大約 8000 萬美元的現金2023 年的回購計劃。

Now turning to Slide 18. I'll conclude my prepared remarks with our current thoughts regarding the financial outlook for the second quarter and full year 2023. We expect our second quarter revenue to be within a range of $505 million to $520 million. This reflects a nearly 15% increase in the renewal channel, partially offset by a roughly 25% decline in the real estate channel and a low double-digit revenue decline in the DTC channel. Second quarter adjusted EBITDA is expected to range between $80 million and $90 million, an increase of $10 million from the prior year period as a result of higher gross margin. This outlook ultimately includes a meaningful increase in SG&A as we invest in the new Frontdoor brand that Bill spoke about earlier.

現在轉到幻燈片 18。我將以我們目前對第二季度和 2023 年全年財務前景的看法來結束我準備好的發言。我們預計第二季度的收入將在 5.05 億美元至 5.2 億美元之間。這反映出續訂渠道增長了近 15%，部分被房地產渠道下降約 25% 和 DTC 渠道的低兩位數收入下降所抵消。第二季度調整後的 EBITDA 預計在 8000 萬美元至 9000 萬美元之間，由於較高的毛利率，比去年同期增加 1000 萬美元。這一前景最終包括 SG&A 的顯著增加，因為我們投資於 Bill 之前談到的新 Frontdoor 品牌。

Turning to our full year outlook. We are maintaining our revenue range of $1.7 billion to $1.74 billion. The full year assumptions include approximately 10% revenue growth in the renewal channel, a low double-digit revenue decline in the DTC channel and a nearly 20% decrease in the real estate channel. We continue to expect approximately 11% growth from higher price, which will more than offset a 6% decline from lower volume. Note that we priced for higher inflation than what we are currently seeing in 2023.

轉向我們的全年展望。我們維持 17 億美元至 17.4 億美元的收入範圍。全年假設包括續訂渠道收入增長約 10%、DTC 渠道收入出現低兩位數下降以及房地產渠道收入下降近 20%。我們繼續預計價格上漲將帶來約 11% 的增長，這將抵消銷量下降帶來的 6% 的下滑。請注意，我們為 2023 年的通貨膨脹率定價。

We also expect our home service plan member count to decline in the mid- to upper single digits in 2022. We slightly raised our full year gross profit margin outlook to be between 43.5% and 46%. This reflects the benefit of prior pricing actions flowing through and a moderation of inflation. This also assumes that inflation will average approximately 9% on a cost per service request basis. And the number of members service requests will be down in the mid-single-digit range to approximately 4.2 million.

我們還預計到 2022 年我們的家庭服務計劃成員數量將下降中上個位數。我們將全年毛利率預期略微上調至 43.5% 至 46%。這反映了先前定價行動的好處和通貨膨脹的緩和。這還假設通貨膨脹率平均約為每項服務請求成本的 9%。會員服務請求的數量將下降到大約 420 萬個中個位數範圍內。

Additionally, we increased our full year SG&A target by $10 million from last quarter to now range between $570 million and $595 million. This increase is related to investments in marketing spend for American Home sales. However, we are working to improve our marketing efficiency, and our current outlook continues to reflect lower AHS marketing spend compared to prior year. Our outlook assumes approximately $60 million of marketing spend associated with the launch of the new Frontdoor brand.

此外，我們將全年 SG&A 目標比上一季度增加了 1000 萬美元，目前範圍在 5.7 億美元至 5.95 億美元之間。這一增長與美國房屋銷售的營銷支出投資有關。然而，我們正在努力提高我們的營銷效率，我們目前的展望繼續反映出與去年相比較低的 AHS 營銷支出。我們的展望假設與新 Frontdoor 品牌的推出相關的營銷支出約為 6000 萬美元。

Based on these updated inputs, we maintained our full year adjusted EBITDA range to be between $220 million and $240 million. This includes stock compensation expense of approximately $30 million and $12 million of interest income. We are carefully monitoring inflation, SG&A investments, weather and other variables as we evaluate the back half of the year. And finally, we're projecting our full year capital expenditures to range between $35 million and $45 million and the annual effective tax rate to be approximately 26%.

根據這些更新的輸入，我們將全年調整後的 EBITDA 範圍維持在 2.2 億美元至 2.4 億美元之間。這包括大約 3000 萬美元的股票補償費用和 1200 萬美元的利息收入。在我們評估下半年時，我們正在仔細監測通貨膨脹、SG&A 投資、天氣和其他變量。最後，我們預計全年資本支出在 3500 萬美元到 4500 萬美元之間，年有效稅率約為 26%。

In conclusion, we delivered strong first quarter results as our pricing actions continue to flow through, cost pressures moderated and as we benefited from several favorable items related to [timing]. We remain confident in our long-term business outlook as we continue to invest in building a strong foundation towards the future.

總之，由於我們的定價行動繼續進行，成本壓力有所緩和，並且我們受益於與[時機]相關的幾個有利項目，我們在第一季度取得了強勁的業績。隨著我們繼續投資為未來打下堅實的基礎，我們對我們的長期業務前景充滿信心。

With that, I'll now turn the call back over to Matt for questions.

有了這個，我現在將把電話轉回給馬特提問。

Thanks, Jessica. As a reminder, during the question-and-answer session, we encourage you to ask any questions that you may have, but please note that guidance is limited to the outlook we've provided. Operator, let's open the line for questions.

謝謝，傑西卡。提醒一下，在問答環節中，我們鼓勵您提出任何問題，但請注意，指導僅限於我們提供的展望。接線員，讓我們打開問題熱線。

(Operator Instructions) Our first question for today comes from Cory Carpenter of JPMorgan.

（操作員說明）我們今天的第一個問題來自摩根大通的 Cory Carpenter。

I had one question on the new brand and one question on American Home Shield. For Frontdoor, could you just talk about how the consumers are engaging with the app, those who have downloaded it thus far, just what features you're seeing the most engagement with? And then on the service -- on the American Home Shield side, could you just give us an update on where you are with consolidating your 4 brands under American Home Shield, and what the next steps are?

我有一個關於新品牌的問題和一個關於 American Home Shield 的問題。對於 Frontdoor，您能否談談消費者是如何使用該應用程序的，到目前為止已經下載了該應用程序的用戶，您看到哪些功能參與度最高？然後在服務方面——在 American Home Shield 方面，您能否向我們介紹一下您在 American Home Shield 下整合 4 個品牌的最新進展，以及接下來的步驟是什麼？

All right. Thanks, Cory. Let me take both of those, and Jessica, please weigh in with anything else. So in terms of engagement, the goal right now is to get -- we're launching a new brand. So the goal here is to get people to access the brand, download it, register and then try our video chat. So I'm not going to go into the details about specific numbers and everything.

好的。謝謝，科里。讓我把這兩個都拿走，傑西卡，請權衡其他任何事情。因此，就參與度而言，現在的目標是——我們正在推出一個新品牌。所以這裡的目標是讓人們訪問這個品牌，下載它，註冊然後嘗試我們的視頻聊天。所以我不打算詳細介紹具體數字和所有內容。

But what we have found is that the user experience here is -- has played to rave reviews. The experts we have hired in all the key trades and even the handyman group that we've hired are excited. They're energized, they're on the side of the consumer and the feedback we're getting -- and a lot of us have done video chats ourselves. And it's really -- I mean I keep saying it's changing the culture of our company to have real experts in the company.

但我們發現，這裡的用戶體驗是 - 贏得了好評。我們在所有關鍵行業聘請的專家，甚至我們聘請的勤雜工團隊都很興奮。他們充滿活力，他們站在消費者和我們得到的反饋的一邊——我們中的很多人都自己進行了視頻聊天。這真的 - 我的意思是我一直在說它正在改變我們公司的文化，讓公司擁有真正的專家。

So when you have something of interest that's like this product, I've done a bunch of media interviews with things that are consumer interest, the reporters, to a person, have been talking about how this is long overdue, and that a user experience like this, I'm very confident that we're on to something with this approach. So more to come in the second quarter.

所以當你對這個產品感興趣時，我做了很多媒體採訪，採訪消費者感興趣的事情，記者，對一個人來說，一直在談論這是多麼遲到，以及用戶體驗像這樣，我非常有信心我們會用這種方法做一些事情。所以第二季度會有更多。

In terms of the AHS consolidation or the overall -- or with the brands, that's moving along. Nothing really to report. We're managing the OneGuard and Landmark consolidation. We are moving AHS into those markets. So -- but it's something that's going to take a while to do, because we have renewal products. This is going to run out for a couple of years. So -- but it's on track. Nothing really to report. But at this point, I feel good about the way the team is executing on this.

就 AHS 整合或整體而言——或與品牌一起，這正在發生。真的沒什麼可報告的。我們正在管理 OneGuard 和 Landmark 合併。我們正在將 AHS 推向這些市場。所以——但這需要一段時間才能完成，因為我們有更新產品。這將用完幾年。所以 - 但它正在走上正軌。真的沒什麼可報告的。但在這一點上，我對團隊在這方面的執行方式感到滿意。

Our next question comes from Maxwell [Fresher from Truist.]

我們的下一個問題來自 Maxwell [來自 Truist 的新生。]

I'm calling in for [Mark] today. And I was wondering if you could provide some more color around the front or prime and more specifically, if we head into some sort of mild recession, what are your expectations for consumers' appetite for a subscription service?

我今天打電話找 [Mark]。我想知道你是否可以在前面或主要部分提供更多顏色，更具體地說，如果我們進入某種溫和的衰退，你對消費者對訂閱服務的興趣有何期望？

Yes. I think that the flavor around it is what I talked about. When you upgrade from basic, you get 3 video chats. There are also discounts on HVAC systems. It has available financing. We have special member pricing in addition to the video chats. So I think that this is actually something that could play very well in a recessionary environment because the -- for $99, you're going to get someone who knows what they're doing and whatever the various repair issues you might have in your home to help you and be on your side, too.

是的。我認為它周圍的味道就是我所說的。從基本版升級後，您將獲得 3 次視頻聊天。 HVAC 系統也有折扣。它有可用的融資。除了視頻聊天之外，我們還有特殊的會員價格。所以我認為這實際上可以在經濟衰退的環境中發揮很好的作用，因為 - 只需 99 美元，您就會得到一個知道他們在做什麼以及您家中可能遇到的各種維修問題的人幫助你，也站在你這邊。

We've had some calls where people have called in that they've gotten an estimate on a new system. And we've had our experts go through and tell them whether that's a good deal or not. We've had other situations where -- what the experts really pride themselves on, they want to solve the problem on the spot versus having to do service calls. So I think there are a lot of elements here as people engage with the app more and more and with the brand, where people are going to see the value that they get for this is really quite high.

我們接到過一些電話，有人打電話說他們已經對新系統進行了評估。我們已經讓我們的專家通過並告訴他們這是否划算。我們遇到過其他情況——專家們真正引以為豪的是，他們希望當場解決問題，而不是必須撥打服務電話。所以我認為這裡有很多元素，因為人們越來越多地與應用程序和品牌互動，人們會看到他們為此獲得的價值真的很高。

So I don't think -- obviously, we're all trying to figure out the recessionary impacts. That's part of the reason why we're being very cautious on our outlook. But I do think that this product is going to play very well in the future.

所以我不認為 - 顯然，我們都在努力弄清楚經濟衰退的影響。這就是我們對前景非常謹慎的部分原因。但我確實認為這個產品在未來會發揮得很好。

Yes. I think one of the other things I'd add there, though, one of the additional features is the discount on home services and products. And I think heading into a recession, consumers are looking for the best deal, which is another benefit of the prime offering.

是的。不過，我認為我要在那裡添加的其他內容之一是，附加功能之一是家庭服務和產品的折扣。而且我認為進入經濟衰退，消費者正在尋找最好的交易，這是優質產品的另一個好處。

Also staying on the recession topic, if the Fed starts cutting rates in a lower rate environment, do you think that we'll see like a boost in the real estate channel?

同樣留在經濟衰退話題上，如果美聯儲開始在較低利率環境下降息，您認為我們會看到房地產渠道的提振嗎？

I would think so. I'm not going to -- because as mortgage rates would come down, I mean, mortgage rates are having an impact on the real estate channel. It's pretty clear that that's happened. So I do think that, that will give the macro environment of real estate, which is really suffering right now, a boost. So I think your premise is correct.

我會這麼認為。我不會——因為隨著抵押貸款利率的下降，我的意思是，抵押貸款利率正在對房地產渠道產生影響。很明顯，這已經發生了。所以我確實認為，這將提振目前真正受苦的房地產宏觀環境。所以我認為你的前提是正確的。

Our next question comes from Ian Zaffino from Oppenheimer.

我們的下一個問題來自奧本海默的 Ian Zaffino。

Okay. Great. I guess the question would really be, again, on the DTC side. Just I don't know if you gave us actually price versus volume in DTC, what you're expecting going forward. And I guess really the question is, is that I know DTC was taking a lot of price last year. Like, when do you think you hit that or bumped up against that elasticity? And given the elasticity, how are you actually thinking about your focus on, let's just say, price versus retention and what we should expect from there?

好的。偉大的。我想問題真的會再次出現在 DTC 方面。只是我不知道你是否給了我們 DTC 的實際價格與數量，你對未來的期望是什麼。我想真正的問題是，我知道 DTC 去年付出了很多代價。就像，你認為你什麼時候擊中了那個彈性或碰到了那個彈性？考慮到彈性，您實際上如何考慮您對價格與保留率的關注以及我們應該從中得到什麼？

So I'll take the first part, Ian. I think that this is something, as I said in our -- in my commentary, we've looked hard at it. I think there has been -- it's been a tough situation. We had to raise prices given the rapid increase in costs that we've certainly faced last year. So we're up against that. which is why we pivoted on our discounting strategy and been more aggressive on that. And we're 6 weeks or so into that. But I think that we're feeling good about the early sales trends, and we'll talk more about that in Q2.

所以我先講第一部分，Ian。正如我在我們的評論中所說的那樣，我認為這是一件事情，我們已經認真研究過它。我認為已經 - 這是一個艱難的局面。鑑於我們去年肯定面臨的成本快速增加，我們不得不提高價格。所以我們反對這一點。這就是為什麼我們將重點放在折扣策略上，並且在這方面更加積極。我們已經進行了 6 週左右。但我認為我們對早期的銷售趨勢感覺良好，我們將在第二季度更多地討論這一點。

So I think it's something we continue to test and refine. Ultimately, this company is driven by the renewal side. That's really where we do our best efforts. And obviously, we have to keep feeding that funnel. So we will continue to work hard on trying to bring as many members in as we can, but I'm really pleased with what we've been able to do, notwithstanding the price increases with our renewals effort, I think the thing that's not seen in the numbers, if you will, is a tremendous work being done by our technology, our digital teams, our marketing teams, our product teams in terms of on the margin, getting people to renew at higher rates. So I'm really pleased with the executional efforts and the process improvement situation that has happened within the company.

所以我認為這是我們繼續測試和完善的東西。最終，這家公司是由更新方面驅動的。這確實是我們盡最大努力的地方。顯然，我們必須繼續為那個漏斗提供食物。因此，我們將繼續努力爭取盡可能多的成員加入，但我對我們所做的事情感到非常滿意，儘管我們的續約努力導致價格上漲，但我認為這不是從數字中可以看出，如果你願意的話，我們的技術、我們的數字團隊、我們的營銷團隊、我們的產品團隊正在做一項巨大的工作，讓人們以更高的速度續訂。因此，我對公司內部的執行工作和流程改進情況感到非常滿意。

So renewals are always going to be most important, but we're only as good as how we can continue to feed that funnel.

因此，續訂永遠是最重要的，但我們只能盡我們所能繼續為該漏斗提供食物。

Yes. And Ian, just on the details, directionally, we've given that the increase in revenue is going to be largely priced overall and the B2C channel, a low double-digit decline for the year.

是的。伊恩，就細節而言，在方向上，我們已經考慮到收入的增長將在很大程度上被整體和 B2C 渠道定價，今年出現兩位數的低跌幅。

Okay. But basically, I would imagine DTC would track similarly to kind of the overall numbers you were giving. Or would you basically maybe take less price and then have better volume?

好的。但基本上，我想 DTC 會以類似於您提供的總體數字的方式進行跟踪。或者你基本上可以採取更低的價格然後有更好的數量？

Yes. Yes. That's...

是的。是的。那是...

Yes, I think that's part of what we're saying when we say we're pivoting our discounting strategy.

是的，我認為這就是我們說我們正在調整折扣策略時所說的一部分。

Yes.

是的。

Perfect. And then the other question would be on inflation. I guess you're still saying 9%. Is there a potential for you to come in better than that? Are you just trying to be conservative when you think about your cost pressures?

完美的。然後另一個問題是通貨膨脹。我猜你還在說9%。你有沒有比這更好的潛力？在考慮成本壓力時，您是否只是想保守一點？

Yes. I think that -- since I took over nearly a year ago, we've been conservative in general. The 9%, we think, is the right number given the situation. We had some favorable situations like Jessica talked about with weather and the like. And during Q1 where it came in at 7%, but we're comfortable with the 9% as the right guidance to give you.

是的。我認為——自從我將近一年前接任以來，我們總體上一直很保守。我們認為，鑑於這種情況，9% 是正確的數字。我們有一些有利的情況，比如傑西卡談到天氣等。在第一季度，它以 7% 的速度出現，但我們對 9% 作為給你的正確指導感到滿意。

Our next question comes from Justin Patterson of KeyBanc.

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

Great. Two, if I can. First, I just wanted to go back to the video call commentary. It sounds like you're seeing some nice early results in terms of cutting down service calls, doing more solving from a distance. How much more room do you have -- do you think you have there in terms of just improving that level of adoption and seeing the cost-to-benefit?

偉大的。兩個，如果可以的話。首先，我只想回到視頻通話評論。聽起來您在減少服務呼叫、進行更多遠程解決方面看到了一些不錯的早期結果。你還有多少空間——你認為你在提高采用水平和查看成本效益方面還有多少空間？

And then the second question is just around the preferred contractors. Great progress with a [10-year] high there. How much more room do you think we have to go there? Or is that just more of, say, a byproduct of the period, less service requests just inflated that number?

然後第二個問題是關於首選承包商的。取得了 [10 年] 的巨大進步。你認為我們還有多少空間可以去那裡？或者這只是那個時期的副產品，服務請求的減少只是誇大了這個數字？

Yes. So first of all, on the video calls, we're 3 weeks in -- 3 weeks and a couple of days. The early indications are really, really very positive. So that's something that we're going to continue to work on. The other piece that I want to point out is this is a new concept. I mean, we have gotten some people. It's free. What's the catch? How much does it -- and there is no catch. So it's going to take some time for this to settle in. I think with the awareness we've built as I talked about, I talked about marketing campaign, people singing the song. This is all great stuff.

是的。所以首先，在視頻通話中，我們進行了 3 週 - 3 週零幾天。早期跡象確實非常非常積極。所以這是我們將繼續努力的事情。我想指出的另一點是這是一個新概念。我的意思是，我們得到了一些人。免費。有什麼收穫？它有多少——而且沒有任何收穫。所以這需要一些時間才能解決。我認為在我談到的時候我們已經建立了意識，我談到了營銷活動，人們唱這首歌。這都是很棒的東西。

But what it comes down to is the user experience, and that's where the strength of this video chat with an expert comes in. And that's why I'm confident that as this becomes more well known, as people understand the proposition, this is a very, very complete and thorough -- we're calling it revolutionizing home and repair. This is going to take some time to get there, but we're really pleased by the interest from people, and I'm really pleased ultimately with the job these experts are doing and the user experience they have.

但這歸根結底是用戶體驗，這就是與專家進行視頻聊天的優勢所在。這就是為什麼我相信隨著人們對這個提議的了解越來越廣為人知，這是一個非常、非常完整和徹底——我們稱之為徹底改變家庭和維修。這將需要一些時間才能實現，但我們對人們的興趣感到非常高興，最終我對這些專家所做的工作和他們擁有的用戶體驗感到非常滿意。

And now Jessica, do you want to take the preferred contractor piece, or do you want me to do it?

現在傑西卡，你是想拿首選承包商的作品，還是想讓我來做？

Yes, I think just not preferred contractors. We're continuing just to be focused on executing on that initiative. Evan and team are doing an excellent job there, and we're going to continue to watch it that we're pleased with the results so far.

是的，我認為只是不喜歡承包商。我們將繼續專注於執行該計劃。 Evan 和他的團隊在這方面做得非常出色，我們將繼續關注目前為止我們對結果感到滿意的情況。

I do think though, Justin -- though, yes, the lower service request did help us with that. But some of the process improvement priorities we put together I think we're really enhancing the contractor relations team to drive that number. So I think there's a lot of things working in the right direction on that.

我確實認為，賈斯汀——不過，是的，較低的服務請求確實幫助了我們。但是我們放在一起的一些流程改進優先事項我認為我們真的在加強承包商關係團隊來推動這個數字。所以我認為有很多事情都在朝著正確的方向努力。

Our next question comes from Brian Fitzgerald of Wells Fargo.

我們的下一個問題來自富國銀行的布賴恩菲茨杰拉德。

I wanted to just follow up on Justin's questions maybe a little bit on the preferred contract network. Anything you could tell us about the favorability to gross margin from that? And then also the runway to continue growing at maybe specifically as you get into the busier part of the year. And then last piece on the preferred contract network. I think you've said in the past, it's a bit of a balancing act there as you continue to feed other contractors to grow the preferred network but also maintain some flexibilities. Are you pushing up against any limits there in terms of that balancing act?

我只想在首選合同網絡上跟進賈斯汀的問題。你能告訴我們關於毛利率的有利因素嗎？然後還有跑道繼續增長，也許特別是當你進入一年中最繁忙的時候。然後是首選合同網絡上的最後一塊。我想你過去說過，這是一種平衡行為，因為你繼續為其他承包商提供資金以發展首選網絡，同時保持一些靈活性。就平衡行為而言，您是否正在挑戰那裡的任何限制？

So just -- I think just on your question on gross margin, we've given kind of a 1% change in our preferred contractor rate translates to about $5 million of profit. So that obviously, there is by contractor trade and geography.

所以只是 - 我認為就你關於毛利率的問題，我們已經給出了我們首選承包商費率 1% 的變化轉化為大約 500 萬美元的利潤。所以很明顯，有承包商貿易和地理。

I think with regard to the contractor piece, one of the things that we have found is with the awareness building that we're doing on Frontdoor, the contract relations team is getting calls about I want to be a contractor. So I think that we're going to get to a point where an unintended consequence of our efforts is that we may be getting more and better contractors wanting to come into the fold here. So I don't think that there's a limitation in terms of running out of, if you will, contractor supply. So that's been a nice add on. Like I said, it's very early days but we've been pleased with that. So I want to make sure, does that -- have we answered your questions, Brian?

我認為關於承包商部分，我們發現的一件事是我們在 Frontdoor 上進行的意識建設，合同關係團隊正在接到關於我想成為承包商的電話。因此，我認為我們將達到這樣一個地步，即我們的努力的意外後果是我們可能會得到更多更好的承包商，他們希望加入我們的行列。因此，我認為在耗盡（如果您願意的話）承包商供應方面沒有限制。所以這是一個很好的補充。就像我說的，現在還很早，但我們對此很滿意。所以我想確定一下，我們是否回答了您的問題，布賴恩？

Yes, that's right.

恩，那就對了。

Our next question comes from Eric Sheridan of Goldman Sachs.

我們的下一個問題來自高盛的 Eric Sheridan。

Maybe a 2-parter, if I could, on marketing. I know we've talked a little bit about it on the call already. But is there any sort of visibility you've got now in terms of which partnerships or which channels around the new marketing efforts you're the most excited about or where we might see that you want to sort of amplify or push into certain channels or partnerships as you go through the year because the early reaction is maybe exceeding your expectations?

如果可以的話，也許是營銷方面的兩人合作。我知道我們已經在電話中討論了一些。但是，您現在是否了解哪些合作夥伴關係或哪些渠道是您最感興趣的新營銷活動，或者我們可能會看到您希望在哪些方面擴大或推進某些渠道或因為早期的反應可能超出您的預期，所以在這一年中建立合作夥伴關係？

And then second, can you just remind us a little bit how to think about marketing as we move through the year? Obviously, you're in this sort of brand building environment right now in the front half of the year. But how should we think about the cadence of marketing as we move through the year once you're beyond this initial push around the brand?

其次，您能否提醒我們在這一年中如何思考營銷？顯然，今年上半年你正處於這種品牌建設環境中。但是，一旦你超越了圍繞品牌的最初推動，我們應該如何考慮營銷的節奏呢？

Yes. Okay. So your first question, with the NFL Draft weekend was phenomenal in terms of downloads. And it was really -- I give Kathy Collins and her team a lot of credit, because you got a lot of people sitting around, a lot of time in between [draft ticks] and it really was a good weekend for us, if you will. We're very excited about this Amazon initiative, which is dropping in midsummer, which essentially, we've done a tie-in with Amazon where the boxes will be branded.

是的。好的。所以你的第一個問題，NFL 選秀週末的下載量非常驚人。這真的是——我對凱西柯林斯和她的團隊給予了很大的讚揚，因為你有很多人圍坐在一起，在[選秀時間]之間有很多時間，這對我們來說真的是一個愉快的周末，如果你將要。我們對亞馬遜的這項計劃感到非常興奮，該計劃將在仲夏推出，從本質上講，我們已經與亞馬遜進行了合作，將在這些盒子上貼上品牌標籤。

You'll still have their logo, obviously and their brand, but we'll have a wrapper around it all about Frontdoor. And we think that the irony of right at your front door of the box, the whole thing works together. And the whole line, which is really resonating that people have to open the front door has worked that well.

您仍然會保留他們的徽標，顯然還有他們的品牌，但我們將圍繞 Frontdoor 進行包裝。而且我們認為具有諷刺意味的是，就在您的前門，整個事情一起工作。整條線，人們必須打開前門，這確實引起了共鳴，效果很好。

In terms of the cadence and marketing, we will begin to shift more marketing effort to premium in about a month. So that will continue to drive people to -- we think that the interest level is driven by the video chat with an expert. But we will drive more and more people to premium as we move into the summer month. So that will become a bigger part of our initiative.

在節奏和營銷方面，我們將在大約一個月內開始將更多的營銷力度轉移到高端。因此，這將繼續推動人們 - 我們認為興趣水平是由與專家的視頻聊天驅動的。但隨著我們進入夏季月份，我們將推動越來越多的人購買優質產品。因此，這將成為我們計劃的重要組成部分。

At the same time, as Jessica pointed out, AHS spend will be on the increase. We might have cut it down a little bit too much. So we're getting pretty good efficiencies. We're pivoting our discounting strategy. We're going to support that with additional marketing. So I feel good about where we're headed on that regard, too.

與此同時，正如傑西卡指出的那樣，AHS 支出將會增加。我們可能把它削減得太多了。所以我們的效率非常高。我們正在調整我們的折扣策略。我們將通過額外的營銷來支持這一點。因此，我也對我們在這方面的進展感到滿意。

Our next question comes from Jeff Schmitt of William Blair.

我們的下一個問題來自威廉布萊爾的傑夫施密特。

What percentage of parts and equipment is front door sourcing now versus before the pandemic? And how much is that helping on the reduce sort of claims cost or inflation? Can you put any numbers behind that?

與大流行之前相比，現在前門採購的零件和設備的百分比是多少？這對降低索賠成本或通貨膨脹有多大幫助？你能在後面加上任何數字嗎？

Yes, we're digging that number out for you right now, Jeff.

是的，傑夫，我們現在正在為您挖掘出這個數字。

Okay. And then one on... Yes, we can get -- come back to that.

好的。然後一個......是的，我們可以 - 回到那個。

(inaudible) Second question.

（聽不清）第二個問題。

Okay. And then on favorable development looks to be $6 million in the quarter, what period was that related to? And I'm just looking at, I guess, the fourth quarter, I think it was $25 million, which felt like almost sort of a true-up for last year. So what is -- what period is that $6 million related to?

好的。然後有利的發展在本季度看起來是 600 萬美元，這與什麼時期有關？我只是在看，我想，第四季度，我認為是 2500 萬美元，這感覺就像是去年的調整。那麼，這 600 萬美元與什麼時期有關？

So on the contractor piece, I believe the number is we just exceeded 50%. Is that correct? Which is up from last year. We're less than that, because supply was in such high demand. On the second question, I'll defer to Jessica on that.

所以在承包商部分，我相信這個數字是我們剛超過 50%。那是對的嗎？這比去年有所增加。我們比那個少，因為供應需求如此之高。關於第二個問題，我會聽從 Jessica 的意見。

Yes. We just don't -- we don't break out the $6 million.

是的。我們只是不——我們不突破 600 萬美元。

Thank you. At this time, we have no further questions. Ladies and gentlemen, thank you again for joining Frontdoor's First Quarter 2023 Earnings Call. Today's call is now concluded.

謝謝。目前，我們沒有進一步的問題。女士們，先生們，再次感謝您參加 Frontdoor 的 2023 年第一季度財報電話會議。今天的電話會議到此結束。