(FTDR) 2023 Q4 法說會逐字稿

Ladies and gentlemen, welcome to Frontdoor's fourth quarter and full Year 2023 earnings call.

女士們、先生們，歡迎參加 Frontdoor 第四季和 2023 年全年財報電話會議。

Today's call is being recorded and broadcast on the Internet.

今天的通話正在錄製並在網路上播放。

Beginning today's call is Matt Davis, Vice President of Investor Relations and Treasurer, and he will introduce the other speakers on the call.

今天的電話會議由投資者關係副總裁兼財務主管 Matt Davis 開始，他將介紹電話會議上的其他發言人。

At this time, we'll begin today's call.

此時，我們將開始今天的通話。

Please go ahead, Mr. Davis.

請繼續，戴維斯先生。

Thank you, operator.

謝謝你，接線生。

Good morning, everyone.

大家，早安。

And thank you for joining Frontdoor's fourth quarter and full year 2023 earnings conference call.

感謝您參加 Frontdoor 第四季和 2023 年全年財報電話會議。

Joining me today are Frontdoor's Chairman and Chief Executive Officer, Bill Cobb; and Frontdoor's Chief Financial Officer, Jessica Ross.

今天與我一起出席的有 Frontdoor 董事長兼執行長 Bill Cobb；以及 Frontdoor 的財務長 Jessica Ross。

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.

今天電話會議中將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，該網站位於 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.

正如簡報投影片 3 所述，我想提醒您，本次電話會議和網路廣播可能包含前瞻性陳述。

These statements are subject to various risks and uncertainties which could cause actual results to differ materially from those discussed here today.

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有重大差異。

These risk factors are explained in detail in the company's filings with the SEC.

這些風險因素在該公司向美國證券交易委員會提交的文件中進行了詳細解釋。

Please refer to the Risk Factors section and our filings, for a more detailed discussion of our forward-looking statements and the risks and uncertainties related to such statements.

請參閱「風險因素」部分和我們的文件，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, February 28 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.

所有前瞻性陳述均截至今天 2 月 28 日，除法律要求外，本公司不承擔更新任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。

We will also reference certain non-GAAP financial measures throughout today's call.

我們也將在今天的電話會議中提及某些非公認會計準則財務指標。

We are including 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.

我們將這些術語的定義以及這些非公認會計準則財務指標與其最具可比性的公認會計準則財務指標的調節表納入我們的新聞稿和簡報的附錄中，以便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.

我現在將把電話轉給比爾·科布徵求開場評論。

Bill?

帳單？

Thanks, Matt, and good morning, everyone.

謝謝馬特，大家早安。

Let's start with 2023, where we smashed expectations and delivered record financial performance.

讓我們從 2023 年開始，我們超越了預期，實現了創紀錄的財務表現。

As you can see from slide 4, we drove revenue 7% higher to a record $1.78 billion despite a decline in overall demand.

正如您從幻燈片 4 中看到的，儘管總體需求下降，但我們的收入增長了 7%，達到創紀錄的 17.8 億美元。

Gross margins rebounded 700 basis points to 50% a nine-year high.

毛利率反彈 700 個基點至 50%，創九年來新高。

Adjusted EBITDA increased 62% to an all-time high of $346 million.

調整後 EBITDA 成長 62%，達到 3.46 億美元的歷史新高。

We generated $170 million of free cash flow, and we returned $120 million to investors through share repurchases.

我們產生了 1.7 億美元的自由現金流，並透過股票回購向投資者返還了 1.2 億美元。

In short, the turnaround in our financial performance has been remarkable.

簡而言之，我們的財務表現發生了顯著的轉變。

So how can we complete such a successful turnaround.

那麼如何才能完成如此成功的扭虧為盈呢？

When I stepped into the CEO role 21 months ago, the company was struggling to respond to inflationary cost pressures.

21 個月前，當我擔任執行長時，公司正在努力應對通膨成本壓力。

Since that time, I brought in new leadership, we accelerated our pricing actions, we took decisive steps to improve execution, and we increased our retention rates.

從那時起，我引入了新的領導層，我們加快了定價行動，我們採取了果斷措施來提高執行力，並且我們提高了保留率。

I am extremely proud of how everyone responded to these challenges and to be perfectly transparent, the plan came together faster and better than we had hoped.

我對每個人如何應對這些挑戰感到非常自豪，為了完全透明，該計劃比我們希望的更快更好地制定出來。

Notwithstanding that we had a lot of things fall our way in 2023.

儘管 2023 年我們遇到了很多事情。

One of the main themes you will hear today is when we experienced a challenge in any part of our business, we do the research, we establish a strategy and then we execute against that strategy.

您今天聽到的主題之一是，當我們在業務的任何部分遇到挑戰時，我們都會進行研究，制定策略，然後根據該策略執行。

This is what we did with our margins over the last two years, and this is now what we are focused on doing for our top line sales, which is a great transition to Slide 5.

這就是我們在過去兩年中對利潤所做的事情，這也是我們現在專注於為我們的頂線銷售所做的事情，這是向幻燈片 5 的一個偉大過渡。

So let me be clear.

讓我說清楚。

Our top priority for 2024 is to focus on driving customer growth.

我們 2024 年的首要任務是專注於推動客戶成長。

We will do this by relaunching the American Home Shield brand, increasing direct-to-consumer sales, driving renewal rates higher and expanding our on-demand revenue while positioning the company for an eventual turnaround in the real estate market.

為此，我們將重新推出 American Home Shield 品牌，增加直接面向消費者的銷售，提高續約率並擴大我們的按需收入，同時為公司在房地產市場的最終扭虧為盈做好準備。

On the margin front, we feel very good about delivering a consistent margin profile in 2024, with the volatility of the past two years behind us.

在利潤方面，我們對 2024 年實現穩定的利潤狀況感到非常滿意，過去兩年的波動已經成為過去。

As a reminder, we had to take significant price increases to combat inflation and rightsize our margins, which frankly impacted customer growth.

提醒一下，我們必須大幅提高價格來應對通貨膨脹並調整利潤率，這坦率地影響了客戶的成長。

Now that inflation has come down and margins have stabilized.

現在通膨已經下降，利潤率已經穩定。

We do not need to continue to take double-digit price increases and can focus on growing our customer count over the long term.

我們不需要繼續採取兩位數的價格上漲，可以專注於長期增加我們的客戶數量。

In addition to the objective shown on this page, we have a host of initiatives designed to continue to build a strong foundation across our contractor relations, procurement and technology groups.

除了本頁所示的​​目標之外，我們還採取了一系列舉措，旨在繼續為我們的承包商關係、採購和技術團隊奠定堅實的基礎。

Many of these efforts are aimed at our longer-term goals, to enhance the customer experience, expand on-demand offerings and improve operational efficiency.

其中許多努力都是為了我們的長期目標，即增強客戶體驗、擴大按需服務並提高營運效率。

All with the ultimate objective of accelerating customer growth.

所有這些的最終目標都是加速客戶成長。

Now turning to Slide 6.

現在轉到投影片 6。

And with significant long-term growth opportunities for home warranties.

家庭保固具有重大的長期成長機會。

In the US, there are about 5 million homes that have a warranty.

在美國，大約有 500 萬戶家庭享有保固。

We believe that figure could be approximately three times higher, if consumers could better understand the value of a home warranty.

我們相信，如果消費者能夠更好地理解家庭保固的價值，這個數字可能會高出約三倍。

As the category leader, it is our job to solve that problem and drive demand for our products.

身為品類領導者，我們的工作就是解決這個問題並推動對我們產品的需求。

Let me quickly walk you through some of the main reasons consumers should buy a home warranty from American Home Shield.

讓我快速向您介紹消費者應該從 American Home Shield 購買家庭保固的一些主要原因。

First, we offer homeowners financial protection from expensive repairs or replacements that will inevitably happen.

首先，我們為房主提供財務保護，避免不可避免地發生昂貴的維修或更換。

The median savings account balance for American households is only $5,300 according to the last Federal Reserve survey.

根據聯準會上次調查，美國家庭儲蓄帳戶餘額中位數僅 5,300 美元。

So this aspect of our value proposition specifically appeals to those homeowners.

因此，我們價值主張的這一方面特別吸引這些房主。

Second, we offer customer convenience.

其次，我們為客戶提供便利。

You don't have to deal with climbing into your hot attic to see why your air conditioner is not working, nor do you have to deal with finding a reliable uninsured contractor.

您不必爬進炎熱的閣樓來查看空調不工作的原因，也不必尋找可靠的未投保承包商。

We have built a curated nationwide contractor network to support you.

我們建立了一個精心策劃的全國承包商網絡來為您提供支援。

And unlike an insurance company, we typically don't just write you a check.

與保險公司不同，我們通常不會只是給您一張支票。

We take care of covered repairs for you and get you back up and running.

我們為您提供保固範圍內的維修服務，並讓您恢復正常運作。

And finally, our value proposition offers peace of mind, that the work will be done right and guaranteed so that you can feel in control of your home.

最後，我們的價值主張讓您高枕無憂，工作將正確完成並得到保證，讓您感覺掌控自己的家。

Owning a home can be challenging, and the value proposition that we offer is still very relevant to consumers.

擁有房屋可能具有挑戰性，但我們提供的價值主張仍然與消費者非常相關。

Homeowners just want their systems and appliances to work.

房主只希望他們的系統和電器能夠正常運作。

And that is exactly the service we provide.

這正是我們所提供的服務。

On slide 7, you will see that American Home Shield is the largest home warranty company with 2 million customers and 16,000 contractors, and that we completed approximately 4 million service requests last year.

在幻燈片 7 中，您將看到 American Home Shield 是最大的家庭保固公司，擁有 200 萬客戶和 16,000 名承包商，去年我們完成了大約 400 萬個服務請求。

We have built a virtuous flywheel where our size gives us leverage with our contractors and suppliers.

我們已經建立了一個良性的飛輪，我們的規模使我們能夠與承包商和供應商產生影響力。

This provides us with a superior margin profile, which we can then invest in the business.

這為我們提供了優越的利潤狀況，然後我們可以將其投資於業務。

As the leader in the category, we have the opportunity to reset the industry by changing our approach to what a home warranty is and how we should go to market.

作為該類別的領導者，我們有機會透過改變我們對家庭保固的定義以及我們應該如何進入市場的方法來重新調整行業。

We will do that by relaunching the American Home Shield brand to reignite unit growth, as shown on slide 8.

我們將透過重新推出 American Home Shield 品牌來重新激發銷售成長來實現這一目標，如幻燈片 8 所示。

Let me start by answering the question, why a relaunch?

首先回答一下這個問題，為什麼要重啟？

And what exactly does that mean?

這到底意味著什麼？

To stay relevant, smart brands must evolve.

為了保持相關性，智慧品牌必須不斷發展。

This is especially true with category leaders who have been around for a while.

對於已經存在了一段時間的品類領導者來說尤其如此。

American Home Shield is over 50 years old.

美國家庭盾已經有 50 多年的歷史了。

And we have built tremendous equity with millions of homeowners, but there was a time when even the best consumer brands must bring a fresh approach to the marketplace, think Dunkin or Domino's, Arby's or Old Spice, it is now our time.

我們已經與數百萬房主建立了巨大的股權，但曾經有一段時間，即使是最好的消費品牌也必須為市場帶來新鮮的方法，例如Dunkin 或Domino's、Arby's 或Old Spice，現在是我們的時代。

So let's get specific about what we mean by a brand relaunch.

因此，讓我們具體了解一下品牌重新推出的含義。

First, we are improving our brand positioning strategy.

首先，我們正在完善品牌定位策略。

Our consumer research tells us that consumers are failing to understand the value a home warranty bring.

我們的消費者研究告訴我們，消費者無法理解家庭保固帶來的價值。

As the category leader, we must do a better job of educating homeowners, and that is exactly what this brand relaunch will accomplish.

身為品類領導者，我們必須更好地教育房主，而這正是本次品牌重新推出所要實現的目標。

We will explain what it means to quote warranty at home unquote in a creative memorable way.

我們將以創意難忘的方式解釋在家報價保固的含義。

Second, we are improving how we execute that strategy with an innovative ad campaign, a new tag line, a new logo, as well as a new brand voice and visual identity that will launch in early April.

其次，我們正在透過創新的廣告活動、新的口號、新的標誌以及將於四月初推出的新的品牌聲音和視覺標誌來改進我們執行該策略的方式。

Third, we will drive greater interest to these having celebrity spokesperson across our marketing channels.

第三，我們將透過我們的行銷管道提高那些擁有名人代言人的興趣。

Fourth, the relaunch will be supported by a refreshed or user-friendly website, which will launch in late March to support the early April media campaign.

第四，重新啟動將得到一個更新或用戶友好的網站的支持，該網站將於三月底啟動，以支持四月初的媒體宣傳活動。

I am extremely excited about what the relaunch of American Home Shield can do for us.

我對重新啟動美國家庭盾能為我們帶來的好處感到非常興奮。

Now turning to Slide 9 and an update on our real estate channel.

現在轉向幻燈片 9 和我們房地產頻道的更新。

The National Association of Realtors or NAR. reported that existing home sales declined 20% in 2023 to 4.1 million homes, the lowest level since 1995.

全國房地產經紀人協會 (NAR)。報告稱，2023 年現有房屋銷售量下降 20%，至 410 萬套，為 1995 年以來的最低水準。

Mortgage rates increased to an average of 6.8% in 2023, a 22-year high, which impacted consumer affordability.

2023 年抵押貸款利率平均升至 6.8%，創 22 年來新高，影響了消費者的承受能力。

At the same time, inventory still remains tight.

與此同時，庫存依然緊張。

NAR reported properties remained on the market for just 36 days in January, which is a slight increase from the 33 days, a year ago, but well below normal levels.

NAR 報告稱，1 月房產在市場上停留的時間僅為 36 天，比一年前的 33 天略有增加，但遠低於正常水平。

We sell our products through real estate brokers.

我們透過房地產經紀人銷售我們的產品。

And last year we had significantly fewer opportunities to place a home warranty as part of a home sale because of the challenging housing market.

去年，由於房地產市場充滿挑戰，我們將房屋保固作為房屋銷售一部分的機會明顯減少。

In fact, our real estate channel sales in 2023 were less than half of what they were five years ago.

事實上，我們2023年的房地產通路銷售額還不到五年前的一半。

As the macro factors continue to be a drag on our revenue, profitability and cash flows.

由於宏觀因素繼續拖累我們的收入、獲利能力和現金流。

As a result of these trends persisting over the last several years, we have taken steps to optimize our real estate channel spend.

由於這些趨勢在過去幾年中持續存在，我們已採取措施優化我們的房地產通路支出。

We have reduced the size of our sales team.

我們縮小了銷售團隊的規模。

Work to optimize agreements with our real estate partners and continue to look at new and creative ways to market our products to drive sales.

努力優化與我們的房地產合作夥伴的協議，並繼續尋找新的、創意的方式來行銷我們的產品以推動銷售。

In short, it's a tough market, but we will be well positioned for when the market improves for home warranty sales.

簡而言之，這是一個艱難的市場，但當家庭保固銷售市場改善時，我們將處於有利地位。

Looking forward to 2024, there are signs of market will improve, NAR is projecting sales to increase to 4.7 million homes and inventory levels could improve as more sellers enter the market.

展望 2024 年，有跡象表明市場將會改善，NAR 預計銷量將增加至 470 萬套房屋，並且隨著更多賣家進入市場，庫存水準可能會改善。

However, we have not seen any material improvements in our real estate business so far this year, and until we see more tangible proof, it will continue to be a drag on our overall sales.

然而，今年到目前為止，我們的房地產業務尚未看到任何實質改善，在我們看到更多切實證據之前，這將繼續拖累我們的整體銷售。

Now turning to Slide 10, where we've continued to see impressive improvements in our retention rates over the last few years.

現在轉向投影片 10，我們在過去幾年中繼續看到我們的保留率取得了令人矚目的進步。

For the end of 2023, our retention rate increased to 76.2%.

到 2023 年底，我們的保留率增加到 76.2%。

While this includes a lower mix of real estate customers, retention rates definitely exceeded our expectations last year.

雖然這包括房地產客戶組合較少，但保留率絕對超出了我們去年的預期。

And how we done this?

我們是如何做到這一點的？

We've taken the steps to fully understand the customer lifecycle journey and have implemented a wide range of initiatives to improve retention, including better engaging our customers, specifically during the onboarding process, expanding dynamic pricing to minimize churn, continuing to improve the customer experience with a large part of that effort coming from increasing utilization of our preferred contractors.

我們已採取措施充分了解客戶生命週期旅程，並實施了一系列旨在提高保留率的舉措，包括更好地吸引客戶（特別是在入職流程中）、擴大動態定價以最大程度地減少客戶流失、持續改善客戶體驗其中很大一部分努力來自於提高我們首選承包商的使用率。

This has the dual benefit of lowering costs while delivering a better experience.

這具有降低成本同時提供更好體驗的雙重好處。

In fact, our customer five-star ratings increased to an all-time high in 2023, while our one-star rating decrease to an all-time low.

事實上，我們的客戶五星級評級在 2023 年升至歷史最高水平，而我們的一星評級則降至歷史最低水平。

And finally, we have increased the number of customers on AutoPay to a record 86% in 2023, which makes them much more likely to renew their home warranty.

最後，我們已將 AutoPay 客戶數量在 2023 年增加到創紀錄的 86%，這使得他們更有可能續訂家庭保固。

We know there's more we can do to improve our customer service, and we are diligently working on those initiatives.

我們知道我們可以做更多的事情來改善我們的客戶服務，並且我們正在努力實施這些措施。

But I am super proud of our team's accomplishments in this area.

但我對我們團隊在這一領域所取得的成就感到非常自豪。

Now turning to Slide 11 in our On-Demand Services.

現在轉向我們的點播服務中的幻燈片 11。

We have been making a lot of changes to this part of our business, which is approaching $100 million of revenue.

我們一直在對這部分業務做出很多改變，該部分的收入已接近 1 億美元。

And I want to take a moment to clarify how we think about On-Demand.

我想花點時間澄清一下我們對點播的看法。

We launched a new Frontdoor brand last year, to provide a digital solution to expand our customer base.

我們去年推出了新的 Frontdoor 品牌，以提供數位解決方案來擴大我們的客戶群。

We built an app.

我們建立了一個應用程式。

We are providing access to video chats with an expert, and we have other services such as partner discounts available to our customers through the app.

我們提供與專家的視訊聊天，我們還透過該應用程式向客戶提供其他服務，例如合作夥伴折扣。

At this point, there are three parts to our On-Demand business; upgrades, maintenance services and appliance repair services.

目前，我們的點播業務分為三個部分；升級、維護服務和電器維修服務。

Upgrades are currently the largest part of our on-demand business.

目前，升級是我們按需業務的最大組成部分。

We expanded our HVAC upgrade program last year, which grew to $50 million.

去年，我們擴大了 HVAC 升級計劃，金額增加至 5,000 萬美元。

This year, we are targeting it to grow even more.

今年，我們的目標是進一步成長。

Over time, we intend to further expand upgrades to include hot water heaters and appliances.

隨著時間的推移，我們打算進一步擴大升級範圍，包括熱水器和電器。

Second is maintenance services.

其次是維修服務。

This includes things like HVAC tune-ups, dryer vent cleaning and carpet cleaning.

這包括暖通空調調整、烘乾機通風口清潔和地毯清潔等。

Overtime, we are looking to expand into additional preventive maintenance offerings.

隨著時間的推移，我們希望擴展到更多的預防性維護產品。

Third, appliance repair service, that we are offering in a limited number of markets today.

第三，我們目前在有限的市場中提供家電維修服務。

The plan is to expand into additional geographies while also looking to broaden our offering into our traditional trades.

該計劃旨在擴展到更多地區，同時也尋求將我們的產品範圍擴大到我們的傳統產業。

What I like about the approach we're taking is that we're doing it methodically and with a heavy focus on execution and delivering on near term revenue.

我喜歡我們採取的方法，因為我們正在有條不紊地開展工作，並高度重視執行和實現短期收入。

Additionally, we are investing in the tech resources and capabilities required to enhance access to these services through the app.

此外，我們正在投資所需的技術資源和能力，以增強透過應用程式對這些服務的存取。

In closing, 2023 was a terrific year for us.

最後，2023 年對我們來說是極好的一年。

We took decisive action to improve execution that resulted in record financial performance.

我們採取果斷行動來提高執行力，從而實現了創紀錄的財務表現。

I will now turn the call over to Jessica to cover our financial results in more detail.

我現在將把電話轉給傑西卡，以更詳細地介紹我們的財務表現。

Thanks, Bill, and good morning, everyone.

謝謝比爾，大家早安。

It is amazing to see the progress Frontdoor has made since I first spoke at our Investor Day just 12 months ago.

自從 12 個月前我在投資者日首次發言以來，Frontdoor 所取得的進展令人驚嘆。

We took decisive actions to improve execution and combat a challenging environment, which contributed to gross margins rebounding to the highest levels in nearly 10 years, along with record adjusted EBITDA.

我們採取果斷行動來提高執行力並應對充滿挑戰的環境，這使得毛利率反彈至近十年來的最高水平，調整後的 EBITDA 創歷史新高。

I could not be more proud of our team and what we have accomplished together since I started 14 months ago.

我為我們的團隊以及自 14 個月前我入職以來共同取得的成就感到無比自豪。

Please turn to Slide 12 and our fourth quarter financial summary.

請參閱投影片 12 和我們第四季的財務摘要。

Fourth quarter revenue increased 8% versus the prior year period to $366 million.

第四季營收較去年同期成長 8%，達到 3.66 億美元。

Net income increased 4% to $9 million and adjusted EBITDA increased 35% to $45 million.

淨利潤成長 4%，達到 900 萬美元，調整後 EBITDA 成長 35%，達到 4,500 萬美元。

Next, we will move to slide 13, where gross profit for the quarter increased 22% versus the prior year period to $177 million, and our gross margin increased 570 basis points to 48%.

接下來，我們將轉到投影片 13，其中該季度的毛利較去年同期成長 22%，達到 1.77 億美元，毛利率成長 570 個基點，達到 48%。

Let's now move to the adjusted EBITDA bridge on Slide 14.

現在讓我們轉到投影片 14 上調整後的 EBITDA 橋接器。

Starting at the top, we had $29 million of favorable revenue conversion, driven by a 15% increase in price over the prior-year period, partly offset by a 7% decline in volume.

從頂部開始，我們獲得了 2,900 萬美元的有利收入轉化，這是由於價格比上年同期上漲 15%，但銷量下降 7% 部分抵消了這一影響。

Contract claims costs decreased $4 million, which was better than expected.

合約索賠成本減少了 400 萬美元，好於預期。

This includes $10 million of favorable weather, a transition to higher service fees and continued process improvement initiatives, which was partially offset by ongoing inflationary pressure as well as a $19 million change in favorable claims cost development.

其中包括 1,000 萬美元的有利天氣、向更高服務費的過渡以及持續的流程改進舉措，但這些支出被持續的通膨壓力以及有利索賠成本開發的 1,900 萬美元的變化部分抵消。

Sales and marketing costs increased $17 million over the prior-year period, primarily due to investments to drive growth in our direct-to-consumer channel and our Frontdoor brand.

銷售和行銷成本比去年同期增加 1,700 萬美元，主要是由於投資推動我們的直接面向消費者管道和 Frontdoor 品牌的成長。

And finally, general and administrative costs increased $6 million, primarily due to increased personnel costs.

最後，一般和管理成本增加了 600 萬美元，主要是因為人員成本增加。

Please turn to slide 15, where I'll review highlights from our 2023 financial results.

請參閱投影片 15，我將回顧我們 2023 年財務表現的亮點。

Revenue increased 7% versus the prior year to $1.78 billion.

營收較上年成長 7%，達到 17.8 億美元。

Net income more than doubled to $171 million and adjusted EBITDA increased 62% to a record $346 million.

淨利潤成長了一倍多，達到 1.71 億美元，調整後 EBITDA 成長 62%，達到創紀錄的 3.46 億美元。

Now turning to slide 16, or gross profit for the year increased 25% to $885 million, and our gross margin increased 700 basis points versus 2022 to 50%, which is also a nine-year high.

現在轉向幻燈片 16，即今年的毛利成長了 25%，達到 8.85 億美元，我們的毛利率比 2022 年增長了 700 個基點，達到 50%，這也是九年來的新高。

Now moving to Slide 17, where we will walk through the decisive actions we took to improve our margins in response to the challenging macro-economic environment.

現在轉到投影片 17，我們將介紹我們為應對充滿挑戰的宏觀經濟環境而提高利潤率所採取的果斷行動。

First, we were aggressive about price in response to rising inflation, which resulted in an 11% increase in realized price in 2023.

首先，我們在價格上採取了積極的應對通膨上升的舉措，導致 2023 年實現價格上漲了 11%。

As a reminder, we typically sell 12-month contract.

提醒一下，我們通常會出售 12 個月的合約。

So pricing actions take 24 months to fully show up in our financials.

因此，定價行為需要 24 個月才能完全體現在我們的財務數據中。

It is about 12 months to impact all relevant contracts and then another 12 months for those contracts to fully translate into earned revenue.

大約需要 12 個月的時間來影響所有相關合同，然後再用 12 個月的時間讓這些合約完全轉化為賺取的收入。

Second, we improved cost control and planning processes.

其次，我們改進了成本控制和計劃流程。

Third, we leveraged our purchasing power with suppliers and contractors.

第三，我們利用供應商和承包商的購買力。

And finally, we implemented a new review process for our highest cost jobs.

最後，我們對成本最高的工作實施了新的審查流程。

Let's now move to the adjusted EBITDA bridge on Slide 18.

現在讓我們轉到投影片 18 上調整後的 EBITDA 橋接器。

Starting at the top, we had $126 million of favorable revenue conversion, driven by an 11% increase in price, partly offset by a 4% decline in volume.

從頂部開始，我們獲得了 1.26 億美元的有利收入轉化，這主要得益於價格上漲 11%，但銷量下降 4% 部分抵消了這一影響。

Contract claims cost decreased $52 million compared to the full year 2022.

與 2022 年全年相比，合約索賠成本減少了 5,200 萬美元。

This improvement was driven by a lower number of service requests per customer, which includes a $30 million impact from favorable weather.

這項改進是由於每位客戶的服務請求數量減少所致，其中包括有利天氣帶來的 3000 萬美元的影響。

A $23 million change in claims cost development as we had favorable claims cost development of $11 million in 2023 compared to a $12 million unfavorable claims cost development in 2022.

索賠成本發展變化為 2,300 萬美元，因為我們在 2023 年的有利索賠成本發展為 1,100 萬美元，而 2022 年的不利索賠成本發展為 1,200 萬美元。

A transition to higher service fees and continued process improvement initiatives.

轉向更高的服務費和持續的流程改善措施。

All of that was partially offset by higher costs driven by inflation of 5%.

所有這些都被 5% 的通貨膨脹導致的成本上升部分抵消。

Sales and marketing costs increased $46 million versus full year 2022, primarily related to the Frontdoor brand, as well as investments in the direct-to-consumer channel to drive sales.

與 2022 年全年相比，銷售和行銷成本增加了 4,600 萬美元，主要與 Frontdoor 品牌以及為推動銷售而對直接面向消費者的管道進行的投資有關。

Customer service costs decreased $6 million, primarily due to a lower number of service requests.

客戶服務成本減少了 600 萬美元，主要是因為服務請求數量減少。

General and administrative expense increased $15 million, primarily due to increased personnel costs.

一般及行政費用增加了 1500 萬美元，主要是因為人員成本增加。

And interest and net investment income increased $13 million, as a result of rising interest rates on cash deposits.

由於現金存款利率上升，利息和淨投資收入增加了 1,300 萬美元。

All of this culminated into a 62% increase in adjusted EBITDA in 2023.

所有這些最終導致 2023 年調整後 EBITDA 成長 62%。

Let's now turn to Slide 19 for a review of our statement of cash flows.

現在讓我們轉向投影片 19 來回顧一下我們的現金流量表。

Net cash provided from operating activities was $202 million for the 12 months ended December 31.

截至 12 月 31 日的 12 個月，經營活動提供的淨現金為 2.02 億美元。

Net cash used for investing activities was $32 million and was primarily comprised of capital expenditures related to investments in technology.

用於投資活動的淨現金為 3,200 萬美元，主要包括與技術投資相關的資本支出。

Net cash used for financing activities was $137 million and was mainly comprised of share repurchases.

用於融資活動的現金淨額為1.37億美元，主要包括股票回購。

We returned $120 million to our valued investors by repurchasing 3.6 million shares in 2023 or approximately 4% of our outstanding shares.

我們透過在 2023 年回購 360 萬股股票（約占我們已發行股票的 4%），向我們尊貴的投資者返還 1.2 億美元。

You will also see that our free cash flow of $170 million for the 12 months ended December 31.

您還將看到截至 12 月 31 日的 12 個月我們的自由現金流為 1.7 億美元。

We ended the year with $325 million in cash.

年底我們擁有 3.25 億美元現金。

This was comprised of $157 million of restricted net assets and unrestricted cash of $168 million.

其中包括 1.57 億美元的限制性淨資產和 1.68 億美元的非限制性現金。

Now before I get to our outlook, I'd like to review our current capital structure in more detail.

現在，在闡述我們的前景之前，我想更詳細地回顧一下我們目前的資本結構。

We have an extremely strong financial position and a consistent capital allocation framework.

我們擁有極為強勁的財務狀況和一致的資本配置架構。

Our number one priority is to focus on growth, and we will continue to prioritize investments that expand revenue, both organic and through opportunistic M&A.

我們的首要任務是專注於成長，我們將繼續優先考慮擴大收入的投資，包括有機投資和機會性併購。

Our second objective is to ensure we have a solid financial profile, which includes maintaining appropriate levels of liquidity to run the business and a prudent long-term debt structure.

我們的第二個目標是確保我們擁有穩健的財務狀況，其中包括維持業務營運所需的適當流動性水準和審慎的長期債務結構。

We currently have a modest level of debt, and we have an extremely strong net leverage ratio of 1.2 times.

我們目前的債務水準適中，淨槓桿率非常高，達到 1.2 倍。

And finally, our third objective is to return cash to shareholders.

最後，我們的第三個目標是將現金回饋給股東。

As a reminder, we have returned a total of $280 million through share repurchases.

提醒一下，我們已透過股票回購總共返還了 2.8 億美元。

Since we initiated the program in 2021.

自從我們於 2021 年啟動該計劃以來。

This amounts to 8.1 million shares or approximately 10% of our outstanding share count.

這相當於 810 萬股，約占我們已發行股票數量的 10%。

Looking ahead, we are targeting $100 million of repurchases in 2024.

展望未來，我們的目標是在 2024 年回購 1 億美元。

Now turning to slide 21, where I will walk through our first quarter and full year 2024 outlook.

現在轉到幻燈片 21，我將在其中介紹我們的第一季和 2024 年全年展望。

We expect our first quarter revenue to be between $370 million and $380 million, which reflects an upper single digit increase in our renewal revenue.

我們預計第一季的營收將在 3.7 億美元至 3.8 億美元之間，反映出我們的續訂收入將出現較高個位數的成長。

A decline in real estate revenue of approximately 20% to 25%, a roughly 20% decline in our D2C revenue and a $5 million increase in other revenue to $17 million.

房地產收入下降約 20% 至 25%，D2C 收入下降約 20%，其他收入增加 500 萬美元至 1,700 萬美元。

First quarter adjusted EBITDA is expected to range between $40 million and $50 million.

第一季調整後 EBITDA 預計在 4,000 萬美元至 5,000 萬美元之間。

The decline from the prior year period is driven by an increase in marketing investments to drive DTC sales, which also reflects better pacing of marketing spend throughout the year and will set us up for our brand relaunch in the second quarter.

與去年同期相比下降的原因是為推動 DTC 銷售而增加的行銷投資，這也反映出全年行銷支出的節奏加快，並將為我們在第二季度重新推出品牌做好準備。

I would also like to mention that this outlook does not include a significant impact from weather.

我還想指出的是，這一前景不包括天氣的重大影響。

While we experienced an increase in service requests from the cold weather in January.

雖然一月份的寒冷天氣導致我們的服務請求增加。

This was largely offset by favorable weather in February.

這在很大程度上被二月的有利天氣所抵消。

Before I turn to our full year outlook, I want to take a moment to address the 2025 outlook we provided at our Investor Day last year.

在談到我們的全年展望之前，我想花點時間談談我們在去年投資者日提供的 2025 年展望。

At the time we targeted $300 million of adjusted EBITDA by the end of 2025.

當時我們的目標是到 2025 年底調整後 EBITDA 達到 3 億美元。

We have absolutely exceeded that objective, in two years earlier than we expected.

我們絕對超出了這個目標，比我們預期提前了兩年。

We also shared a $2 billion revenue target.

我們也共同設定了 20 億美元的收入目標。

A lot has changed since then.

從那以後很多事情改變了。

We provided that outlook at a time when we thought that the real estate channel is going to significantly improve, which has not happened.

當我們認為房地產管道將顯著改善時，我們提供了這一前景，但這並沒有發生。

At this point, we are solely focused on delivering on our 2024 objectives.

目前，我們只專注於實現 2024 年目標。

Once we assess how the AHS brand relaunch goes, as well as how market conditions evolve throughout this year.

一旦我們評估了 AHS 品牌重新推出的進展情況，以及今年市場狀況的演變。

We will come back to you with an update on our 2025 goals.

我們將向您通報 2025 年目標的最新情況。

Now for our 2024 outlook, starting with revenue, where we expect it to range between $1.81 billion and $1.84 billion.

現在我們對 2024 年的前景進行展望，從收入開始，我們預計收入在 18.1 億美元到 18.4 億美元之間。

This assumes a mid-single digit increase in the renewal channel, a 10% decline in the DTC channel and a 15% to 20% decline in the real estate channel.

假設續約管道出現中個位數成長，DTC 通路下降 10%，房地產通路下降 15% 至 20%。

It also assumes other revenue will increase approximately 30% to $100 million, primarily driven by sales from our HVAC program.

它還假設其他收入將增加約 30% 至 1 億美元，主要由我們的 HVAC 計劃的銷售推動。

Our revenue guide also assumes a mid-single digit increase in realized price, which will be delivered to our dynamic pricing model to minimize churn.

我們的收入指南還假設實現價格出現中個位數的成長，這將傳遞到我們的動態定價模型中，以最大限度地減少客戶流失。

Due to the timing of our price increases, we would expect slightly more price at the beginning of the year, which will then taper as the year progresses.

由於我們提價的時間安排，我們預計年初的價格會略有上漲，然後隨著時間的推移價格會逐漸下降。

To be clear, we price for a much higher rate of inflation than what we experienced in 2023.

需要明確的是，我們預期的通膨率將遠高於 2023 年的通膨率。

As a result, our gross margins rebounded back to normalized levels in the upper 40% range.

結果，我們的毛利率反彈至 40% 以上的正常水平。

Now that inflation expectations have moderated, we can turn our focus to growing our customer base.

既然通膨預期已經緩和，我們可以將重點轉向擴大客戶群。

This will be offset by a mid-single digit decline in realized volume from lower customer counts.

這將被客戶數量減少導致的實際銷售中個位數的下降所抵消。

As a reminder, our 2023 customer count was down 6%, and we expect this to decline 1% to 3% in 2024 to approximately 1.95 million.

提醒一下，我們 2023 年的客戶數量下降了 6%，我們預計 2024 年這一數字將下降 1% 至 3%，至約 195 萬。

As we look at this by channel, we would expect the largest decline to come from real estate.

當我們按通路來看時，我們預計最大的跌幅將來自房地產。

Additionally, our renewal channel is expected to slightly fall in 2024 as a result of a decline in our go-to-market channels flowing through.

此外，由於我們的上市通路流量減少，預計我們的續約管道將在 2024 年略有下降。

We expect our full year gross profit margin outlook to be between 48.5% and 49.5%.

我們預計全年毛利率前景在 48.5% 至 49.5% 之間。

It is important to note that we are lapping $30 million of favorable weather in 2023, which amounts to about 200 basis points of margin.

值得注意的是，我們將在 2023 年享受 3000 萬美元的有利天氣，相當於約 200 個基點的利潤。

It also reflects a slightly higher mix of on-demand services.

它也反映出按需服務的組合略高。

So we are very much viewing this as delivering stable margins in our core business this year.

因此，我們非常認為這將在今年為我們的核心業務帶來穩定的利潤。

Our guide also assumes that inflation will be in the mid-single digits on a net cost per service request basis.

我們的指南也假設，以每個服務請求的淨成本為基礎，通貨膨脹將在中個位數。

Additionally, the number of service requests is expected to decline 5% to approximately 3.7 million, which assumes a slightly higher incidence rates across a lower total number of customers.

此外，服務請求數量預計將下降 5%，降至約 370 萬個，這是假設客戶總數較少而發生率略高的情況下。

Our full year SG&A target is between $580 million and $595 million and includes a shift of marketing investments from the Frontdoor brand to the American Home Shield brand to support the relaunch.

我們的全年 SG&A 目標為 5.8 億至 5.95 億美元，其中包括將行銷投資從 Frontdoor 品牌轉向 American Home Shield 品牌，以支持重新推出。

In total, we are essentially holding SG&A spend flat, as we grow revenue.

總的來說，隨著收入的成長，我們基本上保持銷售、行政管理支出持平。

Based on these inputs, we expect our full year adjusted EBITDA range to be between $350 million and $360 million.

根據這些投入，我們預計全年調整後 EBITDA 範圍將在 3.5 億美元至 3.6 億美元之間。

Our full year outlook also includes $11 million of interest income and reflects stock compensation expense of approximately $35 million.

我們的全年展望還包括 1,100 萬美元的利息收入，並反映了約 3,500 萬美元的股票補償費用。

And finally, we expect our full year capital expenditures to range between $35 million and $45 million and the annual effective tax rate to be approximately 25%.

最後，我們預計全年資本支出將在 3,500 萬至 4,500 萬美元之間，年度有效稅率約為 25%。

Turning to slide 22, before I close, I want to make a very important point. 2023 was a truly exceptional year, one of outsized financial performance.

轉到投影片 22，在結束之前，我想強調一個非常重要的觀點。 2023 年確實是不平凡的一年，財務表現斐然。

Adjusted EBITDA was up 62%.

調整後 EBITDA 成長 62%。

And as much as I would love to continue that performance, I don't think that is realistic.

儘管我很想繼續這樣的表演，但我認為這是不切實際的。

Instead.

反而。

I look to our two year adjusted EBITDA CAGR from 2022 to 2024, which is expected to be up nearly 30%.

我預計從 2022 年到 2024 年，我們的兩年調整後 EBITDA 複合年增長率預計將增長近 30%。

That's an impressive return.

這是一個令人印象深刻的回報。

I will now turn it back over to Bill for closing statements.

我現在將把它轉回比爾以供結案陳詞。

Bill?

帳單？

Thanks Jessica.

謝謝傑西卡。

In closing, I want to leave you with the top reasons to invest in from Frontdoor Inc. As shown on Slide 23.

最後，我想向您介紹投資 Frontdoor Inc. 的首要理由，如投影片 23 所示。

First, we are the leader in home warranties and have a massive growth opportunity.

首先，我們是家庭保固領域的領導者，擁有巨大的成長機會。

Second, we have a great core business that is supported by our recurring revenue model.

其次，我們擁有強大的核心業務，並得到我們的經常性收入模式的支持。

And I believe our American Home Shield brand is at an inflection point for future growth.

我相信我們的 American Home Shield 品牌正處於未來成長的轉折點。

Third, our margins have rebounded, and we are looking to deliver a consistent margin profile in 2024.

第三，我們的利潤率已經反彈，我們希望在 2024 年能實現穩定的利潤率。

Fourth, we generate a significant amount of cash, and we use that to aggressively repurchase shares.

第四，我們產生大量現金，並用它來積極回購股票。

And finally, it is clear to me that Frontdoor share price is significantly undervalued.

最後，我很清楚 Frontdoor 的股價被嚴重低估。

When you look at slide 24, you can see that our adjusted EBITDA multiple is at an all-time low.

當您查看投影片 24 時，您可以看到我們調整後的 EBITDA 倍數處於歷史最低水準。

We are currently trading at an approximately nine times multiple.

我們目前的交易價格約為九倍。

Well below our peak multiple of approximately 18 times and also below our average of 13 times.

遠低於我們約 18 倍的峰值倍數，也低於我們 13 倍的平均倍數。

Logic would say that our valuation has to improve as we continue to deliver strong financial performance, our growth initiatives take root and as market conditions normalize.

從邏輯上講，隨著我們繼續實現強勁的財務業績、我們的成長計劃紮根以及市場狀況正常化，我們的估值必須提高。

So operator, let's now open the line for questions.

接線員，現在讓我們開始提問。

(Operator instructions)

（操作員說明）

Jeff Schmitt, William Blair.

傑夫·施密特，威廉·布萊爾。

Hi, good morning, everyone.

嗨，大家早安。

In the DTC channel, it looks like you're expecting revenues to decline 20% in Q1, I think.

我認為，在 DTC 通路中，您預計第一季的營收將下降 20%。

And then 10% for '24, what do you think it will take to turn growth positive there?

然後 24 年成長 10%，您認為怎樣才能達到正成長？

Is it pricing issue they need do they need to come down as for advertising, you think or is it just a just a broader industry issue where you need consumer demand to be stronger.

您認為這是他們需要的定價問題嗎？他們需要降低廣告費用嗎？或者這只是一個更廣泛的行業問題，您需要消費者需求更加強勁。

Good going Jeff.

幹得好，傑夫。

No, you captured it pretty well.

不，你捕捉得很好。

I think the industry is the biggest issue, we have had -- since the real estate market, which really has an overlay to the entire industry.

我認為這個行業是我們遇到的最大問題——自從房地產市場以來，它確實涵蓋了整個行業。

Since that has moved to such a strong seller's market.

自此已經進入如此強勁的賣方市場。

It has really dampened real estate sales, which has had some impact on DTC.

它確實抑制了房地產銷售，這對 DTC 產生了一些影響。

We haven't done a good job, as I said of talking about the value of the home warranty.

正如我在談論家庭保固的價值時所說的那樣，我們做得還不夠好。

I think the brands a little tired.

我覺得這些品牌有點累了。

I think that's what we're doing this relaunch.

我認為這就是我們這次重新啟動所做的事情。

So I think that, freshening the brand and I referenced some other brands that have done this, that are category leaders.

所以我認為，要讓品牌煥然一新，我參考了其他一些已經做到這一點的品牌，它們是類別領導者。

I think our pricing efforts by stabilizing, we had to get our margins right, as you know.

我認為，如您所知，透過穩定定價工作，我們必須確保利潤率正確。

So we're not looking for the significant price increases that we've taken in the past.

因此，我們不會像過去那樣大幅漲價。

So I think this combination of factors will begin to turn things.

所以我認為這些因素的結合將開始扭轉局面。

We're excited about our relaunch beginning in about a month.

我們對大約一個月後開始重新啟動感到興奮。

And you know, I honestly believe this is going to turn, but we tried to give you a guide that we felt was appropriate at this point and we got to prove it as the year goes on.

你知道，我真誠地相信情況將會發生轉變，但我們試圖為你提供我們認為目前合適的指南，隨著時間的推移，我們必須證明這一點。

Okay, great.

好的，太好了。

And then on the on-demand business, what type of profitability do you expect from that kind of overtime.

然後在點播業務上，你期望從這種加班中獲得什麼樣的獲利能力。

I'm sure you build that out and spend more, maybe won't see it in '24.

我確信你建造了它並花費更多，也許在 24 年就看不到它了。

But over time, help us maybe think about that.

但隨著時間的推移，也許可以幫助我們思考這一點。

I would think the upgrade program would be pretty profitable, but then you have the repair the maintenance pieces.

我認為升級計劃會非常有利可圖，但之後你就可以修理維修零件了。

So how should we think about that, profitability?

那我們該如何考慮獲利能力呢？

Yeah, I'll take it first and then Jessica if you want to jump in.

是的，我先接，然後傑西卡，如果你想加入的話。

At this point because a lot of the upgrades have been with the repair credit, which has dampened our margins.

此時，因為許多升級都是透過維修信用來進行的，這削弱了我們的利潤。

I think over time we think it's going to be a healthy business, most likely lower than home warranties.

我認為隨著時間的推移，我們認為這將是一項健康的業務，很可能低於家庭保固。

But the dollar volume, we like the -- revenue dollar volume.

但就美元數量而言，我們喜歡收入美元數量。

And I think, you know, I think what we're starting to build a culture of by being very methodical and continuous improvement is part of our daily efforts.

我認為，你知道，我認為我們開始建立一個非常有條理和持續改進的文化，這是我們日常努力的一部分。

We're going to help to build that margin profile over time.

隨著時間的推移，我們將幫助建立這樣的利潤狀況。

So we feel good about it in the long term.

因此，從長遠來看，我們對此感覺良好。

But for now, it's clearly nowhere close to the home warranty margins.

但就目前而言，它顯然與家庭保固利潤相差甚遠。

Jessica, is there anything else you want to add?

潔西卡，你還有什麼要補充的嗎？

No, I think you covered it, Bill.

不，我想你已經報道過了，比爾。

Okay, great.

好的，太好了。

Thank you.

謝謝。

Thanks Jeff.

謝謝傑夫。

Brian Fitzgerald, Wells Fargo.

布萊恩·菲茨傑拉德，富國銀行。

Thank you.

謝謝。

You talked color on the marketing outlook around the DTC business.

您談到了 DTC 業務的營銷前景。

I want to ask if are you seeing anything from FX, what you're doing kind of indigenously, are you seeing anything, any changes to note in promotional environment in the quarter in terms of your activity or your competitors' activity?

我想問一下，您是否從 FX 中看到了任何東西，您在本地所做的事情，您是否看到本季度促銷環境中您的活動或競爭對手的活動方面有任何需要注意的變化？

And then, comparing your '24 plan to '23, and the relaunch, could you talk a bit about your approach both to marketing and promotion around DTC channel?

然後，將您的 '24 計劃與 '23 計劃以及重新啟動進行比較，您能否談談您圍繞 DTC 管道進行行銷和促銷的方法？

Is the phasing there, is it going to be centered around April, May, maybe very similar to what we saw with the front door rebrand, should we see it, you're going to pursue that same kind of playbook and phasing around the relaunch this year?

分階段是否存在，是否會以四月、五月為中心，也許與我們在前門品牌重塑中看到的非常相似，如果我們看到它，你會追求同樣的劇本並圍繞重新啟動分階段進行今年？

Yeah.

是的。

Okay.

好的。

So on the first one on the promotional levels, we've been aggressive on our discounting.

因此，在第一個促銷等級上，我們一直在積極進行折扣。

I think that's been common throughout the industry.

我認為這在整個行業都是普遍現象。

Nothing out of the ordinary in Q4, but I think it's been pretty consistent.

第四季沒有什麼異常，但我認為情況非常穩定。

And with -- we had to be more aggressive on discounting because of all the pricing actions we took and we've talked about that.

由於我們採取了所有定價行動，我們必須更加積極地進行折扣，並且我們已經討論過這一點。

With regard to AHS, I think obviously, we're pointing out a lot of things to April, but this is different than Frontdoor, we're trying to establish a new brand.

關於 AHS，我認為顯然，我們向 April 指出了很多事情，但這與 Frontdoor 不同，我們正在嘗試建立一個新品牌。

We're trying to introduce -- build awareness, et cetera.

我們正在嘗試引入——建立意識等等。

We have high awareness of American Home Shield.

我們對美國主場盾牌的認知度很高。

This is going to be the start of a continuous effort to improve the value proposition for American Home Shield.

這將成為持續努力改善 American Home Shield 價值主張的開始。

So it kicks off with all the things I talked about.

所以它從我談到的所有事情開始。

Our new logo and refreshed website, new advertising, celebrity and all that stuff.

我們的新標誌和更新的網站，新的廣告，名人和所有這些東西。

But that is only part of the equation as we go forward, we've got to improve the value proposition and that's what the plans are.

但這只是我們前進過程中的一部分，我們必須改進價值主張，這就是計畫。

Not ready to talk specifically about what those are, but you'll hear more about that in the coming months.

還沒準備好具體討論這些是什麼，但在接下來的幾個月裡您會聽到更多相關資訊。

Yeah.

是的。

And the one thing that I would just add.

我要補充的一件事是。

I think last year we were because we're really focused on the Frontdoor brand.

我認為去年我們是因為我們真正專注於 Frontdoor 品牌。

We have kind of lower marketing upfront so that we could spend it and towards the middle and back half of the year.

我們的前期行銷費用較低，這樣我們就可以在今年中下半年使用它。

This year, you're going to see better pacing of spend throughout the year.

今年，您將看到全年支出節奏加快。

Because in Q1 of last year, we had really lowered the American Home Shield spending, we're spending at a at a better level this year to lead into their relaunch.

因為去年第一季度，我們確實降低了美國家庭盾的支出，所以今年我們的支出處於更好的水平，以引導他們的重新啟動。

Okay.

好的。

And then one more for me if I could.

如果可以的話，再給我一份。

Last quarter, you had talked about retention improvements from an improved customer experience.

上個季度，您談到了透過改善客戶體驗來提高保留率。

Did that continue to play out through the quarter?

這種情況在本季繼續發生嗎？

And where do you think we are heading wise in terms of addressing the consumer experience improvement opportunity?

您認為我們在解決消費者體驗改善機會方面的明智方向是什麼？

Yeah, no, I mean, we landed the year with a really strong retention rate, so that we both process improvements continue to play through.

是的，不，我的意思是，我們今年的保留率非常高，因此我們雙方的流程改進都在繼續發揮作用。

We are really better engaging our customers through the onboarding process end to end, as Bill talked about, the work that we did to really understand, the full customer service lifecycle, and we'll continue to use our expanding utilization of our dynamic pricing tool, which we really think it's a competitive advantage for us.

正如比爾所說，我們確實透過端到端的入職流程更好地吸引了客戶，我們為真正理解整個客戶服務生命週期所做的工作，我們將繼續擴大對動態定價工具的利用，我們確實認為這對我們來說是一個競爭優勢。

So we are seeing the results, but it's something that we're not letting up on.

所以我們正在看到結果，但我們不會放棄。

Okay.

好的。

Thank you.

謝謝。

Appreciate it.

欣賞它。

Thanks, Brian.

謝謝，布萊恩。

Ian Zaffino, Oppenheimer.

伊恩·扎菲諾，奧本海默。

Hi.

你好。

On the SG&A, I was wondering if you could just maybe unpack that a little bit as far as the guidance into 2024.

關於 SG&A，我想知道您是否可以稍微解釋一下 2024 年的指導。

What is the puts and takes?

什麼是賣出和賣出？

I know you're doing a bunch of relaunches, which will cost money?

我知道你們正在進行一系列重新啟動，這會花錢嗎？

What are you doing, I guess, to offset that and maybe walk us through that bridge.

我想你在做什麼來抵消這一點，也許可以帶我們穿過那座橋。

So I think big picture, Ian.

所以我考慮大局，伊恩。

Remember, we are essentially holding SG&A flat.

請記住，我們基本上保持 SG&A 持平。

There's some increases that are really just due to inflation and G&A.

有一些增長實際上只是由於通貨膨脹和一般行政費用。

So really think about it, last year was the year of Frontdoor.

所以仔細想想，去年是 Frontdoor 的一年。

This year, we are very focused on AHS.

今年，我們非常關注 AHS。

That's really a shift between the two.

這確實是兩者之間的轉變。

I think the other thing just getting back to Bill's comment on a culture of process improvements, I think knowing that we need to invest in growth.

我認為另一件事是回到比爾對流程改進文化的評論，我認為知道我們需要投資成長。

We've also been very intentional about managing costs across the business so that we can shift spend into investments for growth such as marketing sales.

我們也非常有意識地管理整個業務的成本，以便我們可以將支出轉化為行銷銷售等成長投資。

I think we're really feeling good about the guidance of the year.

我認為我們對今年的指導感覺真的很好。

Okay.

好的。

And then if I could squeeze in one more on the retention side.

然後我是否可以在保留一側再擠入一個。

Good job, I guess 50 bps improvement this year.

幹得好，我估計今年會提高 50 個基點。

What are we kind of expecting over the next several years?

我們對未來幾年有何期待？

Where do we think we can get it?

我們認為可以從哪裡得到它？

How do we get there in a matter we're bringing auto pay up to the 90% level, they basically help us understand like where it could go on and how you get there?

我們如何實現這一目標，我們將自動支付提高到 90% 的水平，它們基本上幫助我們了解它可能會在哪裡進行以及如何實現這一目標？

Yeah, I don't think we're ready for a number, but I think we're tasking ourselves that this has to be a continuous improvement approach to retention, and I think you've pointed out -- we've made great strides in auto pay.

是的，我認為我們還沒有準備好接受一個數字，但我認為我們正在為自己設定任務，這必須是一種持續改進的保留方法，我想你已經指出了——我們已經取得了很大的成就自動支付方面取得長足進展。

We're not done with that.

我們還沒結束。

We've made great strides in understanding the consumer journey.

我們在了解消費者旅程方面取得了長足進步。

We've improved the percentage of preferred contractors, which is here you heard about Five Star at highest, one stars at lowest, these are all part of an effort within the company, a relentless effort to improve that retention rate because we know that's really the lifeblood of the company.

我們提高了首選承包商的比例，在這裡您聽說過最高五星級，最低一星級，這些都是公司內部努力的一部分，是提高保留率的不懈努力，因為我們知道這確實是公司的命脈。

And so we got a lot of people committed to doing that.

因此，我們有很多人致力於這樣做。

Yes, I would just add again, we that theory at strong pricing team have really been leveraging dynamic pricing.

是的，我想再次補充一下，我們強大的定價團隊的理論確實在利用動態定價。

And I think that's the model we continue to build and will get stronger and plays a big role in our retention rates.

我認為這就是我們繼續建立的模型，並將變得更加強大，並對我們的保留率發揮重要作用。

I agree.

我同意。

Thank you very much.

非常感謝。

Thank Ian.

謝謝伊恩。

Thanks, Ian.

謝謝，伊恩。

Mark Hughes, Truist.

馬克‧休斯，真理主義者。

Yeah, thanks.

是的，謝謝。

Good morning.

早安.

In the real estate channel, seems like you've been -- the declines have been shallowing the down 15% this quarter.

在房地產領域，本季的跌幅已經縮小了 15%。

But your guide, I think for Q1 is down 20% to 25%.

但我認為第一季的指導值下降了 20% 到 25%。

I hear what you're saying that you haven't seen it turn here, but it seems like that industry data would look a little more upbeat on that and just curious to get your thoughts.

我聽到你說你還沒有看到它在這裡發生變化，但似乎行業數據對此看起來會更樂觀一些，只是想知道你的想法。

Yeah.

是的。

Let me let me address.

讓我來說說吧。

I think a really good call out mark.

我認為這是一個非常好的標註。

What I was saying in the script was, the NAR data would indicate in our 13% improvement in real estate sales for the year, continuing improvements in inventory levels and the like, and we're rooting that -- we want that to happen.

我在劇本中所說的是，NAR 數據顯示我們今年的房地產銷售成長了 13%，庫存水準持續改善等，我們正在紮根——我們希望這種情況發生。

What the point was at this point 2 months in, and we have not seen much material change.

兩個月過去了，我們還沒有看到太多實質變化。

And obviously, you saw the industry declined 20% last year, we were right in line with those numbers.

顯然，去年該行業下降了 20%，我們的數據與這些數字相符。

And the macro on this particular channel is such that, it almost drives, you know what our home warranty sales will be.

這個特定管道的宏觀情況是這樣的，它幾乎推動了我們的家庭保固銷售量。

So I think we're encouraged by the by the NAR data.

所以我認為 NAR 的數據讓我們受到了鼓舞。

I think we're encouraged by my conversations with a number of top leaders in real estate, but we're just trying to point out that at this point, we haven't seen that turn.

我認為我與房地產領域一些高層領導人的對話讓我們受到了鼓舞，但我們只是想指出，目前我們還沒有看到這種轉變。

And then, just could you talk about the inflation claims, inflation of 5% for the full year?

然後，您能談談通膨索賠嗎？全年通膨率為 5%？

It looks like the fourth quarter underlying claims are pretty good.

看起來第四季的基本索賠情況相當不錯。

When you back out the change in that claims development.

當您撤銷索賠開發中的變更。

Seems like you even when you adjust for the weather, seems like it's pretty good, did the fourth quarter's Specific claims inflation number?

看來你即使根據天氣進行調整，看起來也相當不錯，第四季度的特定索賠通膨數字是多少？

Yes, it's a 5%.

是的，是5%。

It was 5%?

原來是5%？

It's 5%.

是5%。

Yeah.

是的。

And we're really looking at as, especially as we're heading into the year feeling that we're moving into normalized inflation there and holding at that mid-single digit.

我們確實在關注這一點，尤其是在我們即將進入今年的時候，我們感覺我們正在進入正常化的通貨膨脹並保持在中個位數。

Yeah.

是的。

And if I could just squeeze in one more your price increases 15% this quarter, that was the faster than the full year, I think, faster than last quarter you talked about maybe doing some of the pricing promotion but in fact the pricing accelerated, what drove that?

如果我能再把你們這個季度的價格上漲 15%，我想，這比全年更快，比上個季度更快，你談到可能會進行一些定價促銷，但實際上定價加速了，是什麼推動了這一點？

Yeah, again, we took very aggressive pricing actions in 2022, and you're really seeing the peak of those actions hitting in Q4 of this year.

是的，我們在 2022 年再次採取了非常積極的定價行動，你真的會看到這些行動在今年第四季達到頂峰。

You'll see that in Q1 of next year as well, and that's incorporated into our guide.

您也會在明年第一季看到這一點，並將其納入我們的指南中。

And then you'll expect for those to taper off.

然後你會期望這些會逐漸減少。

But that still does 2022 actions, flowing through based on the way that those hit our revenue.

但這仍然會影響 2022 年的行動，並根據這些行動對我們收入的影響方式進行流動。

Yeah.

是的。

Okay.

好的。

Thank you.

謝謝。

Thanks, Mark.

謝謝，馬克。

Thanks, Mark.

謝謝，馬克。

Sergio Segura, KeyBanc.

塞爾吉奧·塞古拉 (Sergio Segura)，KeyBanc。

Great.

偉大的。

Thank you and good morning.

謝謝你，早安。

Congratulations on another strong quarter of gross margin expansion.

祝賀毛利率再次強勁成長。

I've notice that the guide does call for the 2024 guidance does call for margins, gross margins have come down a bit.

我注意到該指南確實要求 2024 年指南確實要求利潤率，毛利率有所下降。

So just wondering if there's any underlying conservatism with that outlook and any opportunities that you see in the business to expand gross margins from the 49% level they currently are at.

因此，我想知道這種前景是否存在任何潛在的保守主義，以及您在業務中看到的任何將毛利率從目前 49% 的水平擴大的機會。

Yeah, no, I think the big thing there's remember we are lapping $30 million of favorable weather, which accounts for about 200 bps of margin.

是的，不，我認為最重要的是記住我們正在享受 3000 萬美元的有利天氣，這約佔利潤率的 200 個基點。

And we are really looking at that upper 40s as being normalized for the business, especially as we think about on-demand in the mix going forward.

我們確實認為 40 多歲的人正在成為業務的常態，特別是當我們考慮未來組合中的按需服務時。

But we continue to be aggressive on process improvements and so on.

但我們繼續積極致力於流程改善等。

That guide really takes into account for $30 million plus the continued benefits that we are seeing from process improvements across the business.

該指南確實考慮了 3000 萬美元以及我們從整個企業的流程改進中看到的持續收益。

Yeah, I think, Sergio, I think you make a good point also Jessica answered it completely.

是的，我認為，塞爾吉奧，我認為你說得很好，傑西卡也完全回答了這個問題。

You know, it's one of those things where we got, like I said in my script, notwithstanding the fact that we did a few things break our way last year, including weather was one of them.

你知道，這是我們得到的事情之一，就像我在劇本中所說的那樣，儘管去年我們做了一些事情打破了我們的方式，包括天氣就是其中之一。

So as we put together the plan for this year, as we put together the guidance for all of you, we have to take into effect that we might have gotten a few breaks like on whether.

因此，當我們制定今年的計劃時，當我們為大家製定指導時，我們必須考慮到我們可能已經得到了一些休息，例如是否。

Look at what happened in January.

看看一月份發生了什麼事。

And as Jessica said, it looks like February has offset that.

正如傑西卡所說，二月似乎已經抵消了這一點。

But that's the kind of thing that as you're forecasting these things together, you have to be mindful of that anomalies need to be factored out.

但這就是當你一起預測這些事情時，你必須注意需要排除的異常情況。

So as I think about our Investor Day last year.

當我想起去年的投資者日。

I feel like one of the biggest questions are when are we going to get back to 50-20?

我覺得最大的問題之一是我們什麼時候才能回到 50-20？

Or when are we going to get back with our upper 40s and again, just really proud of the team and the work that's been done on to get us where we are today.

或者我們什麼時候才能回到40多歲的狀態，再次為我們的團隊和我們為取得今天的成就所做的工作感到自豪。

Yep.

是的。

Got it.

知道了。

And if I could ask a second one.

如果我可以問第二個。

Just wondering what gives you the confidence to reaccelerate on customer growth in '24, without a real significant increase in marketing spend on, Why not spend more aggressively with the customer growth being one of your top priority this year?

只是想知道，在行銷支出沒有真正顯著增加的情況下，是什麼讓您有信心在 24 年重新加速客戶成長，為什麼不更積極地支出，將客戶成長作為您今年的首要任務之一呢？

Yeah.

是的。

I mean, I think as you said, if you look at the investment behind American Home Shield, it is up because we invested more in Frontdoor last year and took away from AHS.

我的意思是，我認為正如你所說，如果你看看 American Home Shield 背後的投資，你會發現它有所上升，因為我們去年在 Frontdoor 上投資了更多，並從 AHS 拿走了。

AHS investment will be stronger in '24.

24 年 AHS 投資將會更加強勁。

That the other thing that gives me confidence is the the whole of the program, not just the marketing efforts in April, but the things we're looking at to enhance the value proposition later in the year and into 2025.

另一件讓我充滿信心的事情是整個計劃，不僅僅是 4 月份的營銷工作，還有我們正在考慮在今年晚些時候和 2025 年增強價值主張的事情。

And that's why I think we're where in my words that I use, it's we're kind of on a relentless march now.

這就是為什麼我認為我們現在用我的話來說，我們現在正在不懈地前進。

The category has been been stagnant or down.

該類別一直停滯不前或下降。

I think the brands got a little tired.

我認為這些品牌有點厭倦了。

We need to freshen it up.

我們需要讓它煥然一新。

We need to come out with more things that are going to turn consumers' heads, and that's why I think we'll start to head north with our customer growth.

我們需要推出更多能夠吸引消費者註意力的產品，這就是為什麼我認為我們將開始隨著客戶成長而北上。

That's helpful.

這很有幫助。

Thank you, Bill and Jessica.

謝謝你們，比爾和潔西卡。

Thanks.

謝謝。

Thanks, Sergio.

謝謝，塞爾吉奧。

Cory Carpenter, JPMorgan.

科里·卡彭特，摩根大通。

Good morning.

早安.

I'm hoping you could talk about the level of consumer engagement you're seeing with on-demand services and then as you shift your marketing spend to the AHS relaunch, what are your expectations in 2024 for on-demand?

我希望您能談談您所看到的點播服務的消費者參與度，然後當您將行銷支出轉移到 AHS 重新推出時，您對 2024 年點播服務的期望是什麼？

I know you're planning to build out in that booking capability and some other stuff, but maybe just an update on where you are with some of those initiatives.

我知道您計劃增強預訂功能和其他一些功能，但也許只是更新您在其中一些舉措方面的進展。

Thank you.

謝謝。

Okay.

好的。

So from an engagement perspective, the interesting thing about this part of our business is, it's a real partnership with our contractors.

因此，從參與的角度來看，我們這部分業務的有趣之處在於，它是與我們的承包商的真正合作關係。

This is -- As you know, in the traditional home warranty business, our contractors execute the concept as we get service calls and we're dealing a lot direct to the consumer and with real estate.

如您所知，在傳統的家庭保固業務中，我們的承包商在接到服務電話時執行此概念，並且我們直接與消費者和房地產打交道。

This one is really getting contractors to go and it's really a partnership with them.

這確實是在吸引承包商，並與他們建立真正的合作關係。

So from a consumer point of view, we're still building that out, in terms of how we engage with them.

因此，從消費者的角度來看，我們仍在與他們互動的方式上建立這一點。

But I think the great thing about this particular part of the business is we can do things that don't cost a lot of money by just engaging with our contractors in the right way.

但我認為該業務的這一特定部分的偉大之處在於，我們只需以正確的方式與承包商合作，就可以做一些不需要花費很多錢的事情。

And that's one of the core strengths of our company is the contractor network that we have.

我們公司的核心優勢之一就是我們擁有的承包商網路。

The 2,500 or so preferred contractors and another 12,000, 13,000, 14,000 other contractors.

約 2,500 名首選承包商和另外 12,000、13,000、14,000 名其他承包商。

So that's where we're getting better because we had a nice kick-up in HVAC last year and we've got other things in the -- your comments I mentioned.

這就是我們正在變得更好的地方，因為去年我們在暖通空調方面取得了很好的進展，而且我們在我提到的您的評論中也得到了其他東西。

So I think this is one that is both going to be a combination of consumer engagement and contractor engagement.

所以我認為這將是消費者參與和承包商參與的結合。

Yeah.

是的。

And then just on what we're expecting for 2024, at a revenue is going to be up approximately 30% to $100 million.

根據我們對 2024 年的預期，營收將成長約 30%，達到 1 億美元。

And the majority of that is really a HVAC upgrade.

其中大部分實際上是暖通空調升級。

It is building a really nice job laying out the full portfolio of our on-demand and services in his shared remarks.

在他的共同演講中，我們正在建立一項非常出色的工作，展示了我們的點播和服務的完整產品組合。

So also in there are things from the other on-demand services such as the HVAC tune-ups, three key as well.

因此，還有其他按需服務的內容，例如暖通空調調整，也是三個關鍵。

So again, this is a great opportunity to also test into it.

再說一遍，這是一個很好的機會來測試它。

We're learning a lot, but we're also seeing a lot of strength from the upgrade component of that business.

我們學到了很多東西，但我們也從該業務的升級部分中看到了許多優勢。

Okay.

好的。

Thank you both.

謝謝你們倆。

Ladies and gentlemen, this concludes our Q&A and today's Frontdoor's fourth quarter and full year 2023 earnings call.

女士們、先生們，我們的問答和今天的 Frontdoor 第四季和 2023 年全年財報電話會議到此結束。

We'd like to thank you for your participation.

我們衷心感謝您的參與。

You may now disconnect your lines.

現在您可以斷開線路。