Frontdoor Inc (FTDR) 2024 Q2 法說會逐字稿

Ladies and gentlemen, welcome to Frontdoor's second-quarter 2024 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. Please go ahead, Mr. Davis.

女士們、先生們，歡迎參加 Frontdoor 的 2024 年第二季財報電話會議。今天的通話正在錄製並在網路上播出。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。此時，我們將開始今天的通話。請繼續，戴維斯先生。

Thank you, operator. Good morning, everyone, and thank you for joining Frontdoor's second-quarter 2024 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，接線生。大家早安，謝謝您參加 Frontdoor 2024 年第二季財報電話會議。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. There is also additional detail about Frontdoor, about our brand at frontdoor.com and on our new mobile App that you can download in the App Store and at Google Play.

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。在 frontdoor.com 以及我們新的行動應用程式上還有有關 Frontdoor 和我們品牌的更多詳細信息，您可以在 App Store 和 Google Play 中下載該應用程式。

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.

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。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。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 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 August 1st, 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.

請參閱我們提交的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。所有前瞻性陳述均截至今天 8 月 1 日作出，除非法律要求，否則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. We have included definitions of these terms and reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures in our press release and the appendix to the presentation in order to better assist you in understanding our financial performance.

我們還將在今天的電話會議中引用某些非公認會計準則財務指標。我們在新聞稿和簡報的附錄中包含了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，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. Bill?

我現在將把電話轉給比爾·科布徵求開場評論。帳單？

Thanks, Matt Davis, and good morning, everyone. Frontdoor Inc., continues to operate consistently well and this was a record quarter for financial performance.

謝謝馬特戴維斯，大家早安。Frontdoor Inc. 持續持續良好運營，本季財務表現創歷史新高。

As you can see on slide 4, in the second quarter, revenue grew 4% to $542 million. Our gross margin expanded 470 basis points to a record 56%. Adjusted EBITDA grew 31% to $158 million. Free cash flow more than doubled to $91 million and we have used $83 million of cash to repurchase 2.5 million shares year-to-date through July.

正如您在投影片 4 中看到的那樣，第二季的收入成長了 4%，達到 5.42 億美元。我們的毛利率擴大了 470 個基點，達到創紀錄的 56%。調整後 EBITDA 成長 31%，達到 1.58 億美元。自由現金流增加了一倍多，達到 9,100 萬美元，今年迄今到 7 月份，我們已使用 8,300 萬美元現金回購了 250 萬股股票。

Now moving to slide 5 in our strategic objectives. To be clear, our number one strategic priority remains growing our customer base through more sales of home warranties. While we strongly believe in the long-term growth opportunity of the home warranty category, which I will return to in a few slides, we must face the near-term reality that macroeconomic headwinds are impacting home warranty sales.

現在轉到我們策略目標中的投影片 5。需要明確的是，我們的首要策略重點仍然是透過增加房屋保固的銷售來擴大我們的客戶群。雖然我們堅信家庭保固類別的長期成長機會（我將在幾張投影片中返回），但我們必須面對宏觀經濟逆風正在影響家庭保固銷售的近期現實。

As a result, we are taking the prudent step of slightly lowering our outlook for member count, which Jessica will cover in her section. Our number two strategic objective is to continue growing our on-demand business. This has become a very important line of our business that is already proven it's work and we're just getting started. And finally, our third strategic objective is to close the acquisition of 2-10 Home Buyers Warranty.

因此，我們正在採取謹慎的步驟，稍微降低我們對會員數量的預期，傑西卡將在她的部分中介紹這一點。我們的第二大策略目標是繼續發展我們的按需業務。這已經成為我們業務的一個非常重要的領域，它已經被證明是有效的，而我們才剛剛開始。最後，我們的第三個策略目標是完成 2-10 Home Buyers Warranty 的收購。

So let's move to slide 6 and a quick refresh on 2-10 and where the acquisition stands. As you heard me say in June, this is a great business and as a leading provider of new home structural warranties, it's a perfect strategic fit for us. We will gain more customers. We will diversify our product portfolio into an adjacent category and we expect to generate significant synergies, all of which will generate long-term benefits. On the acquisition itself, our integration team continues to work with 2-10 to prepare for a smooth transition of ownership.

因此，讓我們轉到投影片 6，並快速回顧投影片 2-10 以及收購的情況。正如您在六月聽到我所說的那樣，這是一項偉大的業務，作為新房結構保固的領先提供商，它對我們來說是完美的戰略契合。我們將贏得更多的客戶。我們將把我們的產品組合多樣化到相鄰的類別，我們期望產生顯著的協同效應，所有這些都將產生長期利益。就收購本身而言，我們的整合團隊將繼續與 2-10 合作，為所有權的順利過渡做好準備。

In fact, our team has been in Denver this week. The main update for today and this is really great news. It's that the Applicable Federal Hart-Scott-Rodino waiting period to close the transaction has expired. Now we continue to wait for regulatory approval from a handful of states. Bottom-line, the acquisition remains on track to close in the fourth quarter.

事實上，我們的團隊本週一直在丹佛。今天的主要更新，這真是個好消息。這是適用的聯邦 Hart-Scott-Rodino 等待期結束交易已到期。現在我們繼續等待少數幾個州的監管部門批准。最重要的是，此次收購仍有望在第四季完成。

Moving to slide 7. Let's now look at operational areas that are doing exceptionally well, starting with our on-demand business. This has proven to be a real success and we think it presents a great opportunity with plenty of runway. We are realizing our vision of providing a consolidated ecosystem for all things home. We are reaching more homeowners who are virtual experts and network of independent contractors. Effectively growing our share of wallet across our member base and leveraging these great partnerships to meet the repair, replacement and maintenance needs of every homeowner.

轉到投影片 7。現在讓我們來看看表現異常出色的營運領域，首先是我們的按需業務。事實證明，這是一次真正的成功，我們認為它提供了一個擁有充足跑道的絕佳機會。我們正在實現為家居萬物提供統一生態系統的願景。我們正在接觸更多的房主，他們是虛擬專家和獨立承包商網路。有效地增加我們在會員群中的錢包份額，並利用這些偉大的合作夥伴關係來滿足每個房主的維修、更換和維護需求。

For example, our new HVAC program has taken off. For all of 2023, this program delivered $50 million of revenue, and we are on track to far surpass that number this year. We are also continuing to build out our technology capabilities to grow alternative revenue streams. Our new partnership with Moen is a great example of this.

例如，我們的新 HVAC 計劃已經啟動。2023 年全年，該計劃帶來了 5000 萬美元的收入，今年我們預計將遠遠超過這個數字。我們也持續增強我們的技術能力，以增加替代收入來源。我們與摩恩的新夥伴關係就是一個很好的例子。

Frontdoor, through our independent plumbing contractors, is the exclusive provider for installing Moen Water Shutoff Valves in California homes ensured by Farmers Insurance. This is a growing opportunity as Farmers and other insurers are requiring these valves to prevent water damage. And it's not just in California. In fact, Moen and Farmers have asked us to expand into a number of other states before the end of the year. We'll have more to say about this during our Q3 earnings call in November.

Frontdoor 透過我們的獨立管道承包商，成為在農民保險承保的加州房屋中安裝摩恩截止閥的獨家供應商。這是一個越來越大的機會，因為農民和其他保險公司需要這些閥門來防止水災。這不僅僅是在加利福尼亞州。事實上，摩恩和法默斯已要求我們在今年年底前擴展到其他一些州。我們將在 11 月的第三季財報電話會議上對此進行更多討論。

Now moving to slide 8, customer retention continues to be another terrific story for us. Our second quarter retention rate grew to an all-time high of 76.6%. While this includes a lower mix of real estate customers, our team has also done a great job of engaging members throughout the customer journey, improving customer service, expanding the use of preferred contractors and moving more members to auto pay which finished last year at 86%.

現在轉到投影片 8，客戶保留對我們來說仍然是另一個了不起的故事。我們第二季的保留率升至 76.6% 的歷史新高。雖然房地產客戶的比例較低，但我們的團隊在整個客戶旅程中吸引會員、改善客戶服務、擴大首選承包商的使用以及讓更多會員使用自動支付方面也做得很好，去年的會員數量為86 %。

Now let's move to slide 9 and a look at some of the cyclical issues that remain a challenge for our business. I believe this is a story of near-term realism and long-term optimism. As we've seen in recent earnings announcements from several leading companies, consumers are stressed, spending less and this is impacting our category and many other sectors of the US economy.

現在讓我們轉到投影片 9，看看仍然對我們的業務構成挑戰的一些週期性問題。我相信這是一個近期現實主義和長期樂觀主義的故事。正如我們在幾家領先公司最近發布的財報中看到的那樣，消費者面臨壓力，支出減少，這正在影響我們的類別和美國經濟的許多其他部門。

The good news for us is that American Home Shield already in the leading player in the category has actually outperformed our top competitors nationally. This is based on our analysis of data from the California Department of Insurance, which maintains nationwide data on home warranty providers based in California.

對我們來說，好消息是，American Home Shield 已經在該類別中處於領先地位，實際上已經超越了我們在全國範圍內的頂級競爭對手。這是基於我們對加州保險部數據的分析，該部門維護加州家庭保固提供者的全國數據。

Additionally, real estate continues to be a major near-term headwind for the category. It's been a significant drag on our business for three years now and it's likely to remain so for the balance of 2024. To that point, on slide 10, let's take a closer look at the real estate market today. In short, things are not improving. Last December, existing home sales were projected to be $4.7 million in 2024. However, that is not going to happen.

此外，房地產仍然是該類別近期的主要阻力。三年來，這一直對我們的業務造成重大拖累，並且在 2024 年剩餘時間裡可能仍然如此。就這一點而言，在幻燈片 10 上，讓我們仔細看看今天的房地產市場。簡而言之，情況並沒有改善。去年 12 月，預計 2024 年現房銷售額為 470 萬美元。然而，這不會發生。

According to the most recent report from the National Association of Realtors, the annual runrate of home sales has decreased to 3.9 million homes. That's a 5% decline year-over-year and as this graph shows, this is amongst the lowest real estate activity in 30 years. NAR also said home prices grew 4% year-over-year to a record median price of $427,000. Mortgage rates also remain elevated and inventory remains low. While the current situation is bad, it will change the real estate market has been through down cycles before and it will come out of this one eventually. We will continue to make refinements that will have us better positions when the market does turn.

根據全國房地產經紀人協會的最新報告，房屋銷售年增率已降至 390 萬套。年比下降 5%，正如該圖所示，這是 30 年來房地產活動最低的時期之一。NAR 也表示，房價年增 4%，達到創紀錄的中位數 427,000 美元。抵押貸款利率也仍然很高，庫存仍然很低。雖然目前的情況很糟糕，但它將改變房地產市場先前經歷的下行週期，最終將走出這一輪。我們將繼續進行改進，以便在市場轉變時使我們處於更好的位置。

Turning to slide 13. To better understand the challenges facing home warranties, we completed a deep dive on the American Home Shield customer base in May. This analysis show that ages has wide appeal across key demographics all AHS, income and ethnic segments. Let me be clear the customer base for AHS is not aging out. About 60% of our customer base are boomers and Gen X and about 40% few younger between millennials Gen Y and Gen Z. In fact, AHS over indexes with the primary home buying segment of 35- to 54-year-olds.

轉到投影片 13。為了更了解家庭保固面臨的挑戰，我們在 5 月完成了對 American Home Shield 客戶群的深入研究。該分析表明，年齡對所有 AHS、收入和種族群體的關鍵人口統計數據具有廣泛的吸引力。我要澄清的是，AHS 的客戶群並沒有老化。我們的客戶群中約 60% 是嬰兒潮世代和 X 世代，約 40% 的客戶群是千禧世代 Y 世代和 Z 世代。

Now let's look at income on slide 14. AHS resonates with various levels of household income and contrary to some perceptions AHS is not an offering that's used for lower income households. In fact, our analysis shows that about half of our members have annual household incomes over a $100,000 with the other half making less. In aggregate, the data on the AHS customer base also reveals that we have long-term opportunities to drive more targeted acquisition.

現在讓我們來看看幻燈片 14 上的收入。AHS 與不同程度的家庭收入產生共鳴，與某些看法相反，AHS 並非適用於低收入家庭的產品。事實上，我們的分析顯示，大約一半的會員家庭年收入超過 10 萬美元，而另一半的家庭年收入則低於 10 萬美元。總的來說，AHS 客戶群的數據也表明，我們擁有推動更有針對性的收購的長期機會。

On slide 15, we can see the race and ethnicity makeup of our member base. As we said, that millennials are the sweet spot of future homebuyers and the data indicates they are favorably disposed to home warranties. Within that millennial profile, while AHS currently overindexes on black homeowners, we believe there is even more opportunity with this segment, as well as with Latinos. We'll have more to say about these opportunities during our Investor Day presentation.

在投影片 15 上，我們可以看到我們會員群的種族和民族組成。正如我們所說，千禧世代是未來購屋者的最愛，數據顯示他們更傾向於房屋保固。在千禧世代的形像中，雖然 AHS 目前對黑人房主的指數過高，但我們相信這群人以及拉丁美洲人有更多的機會。我們將在投資者日演講中更多地談論這些機會。

Now let's move to slide 16 and the comprehensive actions we are taking now to improve home warranty sales. In April, we launched the new marketing campaign for AHS yielding strong results. Brand awareness is now at 50%, double our nearest competitor. Google searches for AHS are up 6%, ahs.com website session have increased over 30%. In essence, the brand relaunches doing exactly what we hope to do; drive demand and brand engagement. We are also deploying programs in the short-term to grow members such as our focused discounting strategy.

現在讓我們轉到投影片 16 以及我們現在為提高家庭保固銷售而採取的全面行動。4 月份，我們針對 AHS 推出了新的行銷活動，並取得了良好的成果。品牌知名度目前為 50%，是最接近的競爭對手的兩倍。AHS 的 Google 搜尋量增加了 6%，ahs.com 網站訪問量增加了 30% 以上。從本質上講，該品牌的重新推出正是我們希望做的事情；推動需求和品牌參與。我們也在短期內部署計劃來增加會員數量，例如我們的重點折扣策略。

In March of 2023, we ran a 50% off road promotion. What we learned is that members renewed 12 months later at a retention rate and stepped up price similar to those who are not initially discounted. With this learning, we ran another 50% off promotion throughout the month of July 2024 that yielded very positive results.

2023 年 3 月，我們進行了 50% 越野促銷活動。我們了解到，12 個月後，會員續約的保留率和價格與最初未折扣的會員類似。了解到這一點後，我們在 2024 年 7 月整個月再次開展了 50% 的促銷活動，並取得了非常積極的成果。

With this success, we are confident in using time-bound discounts to acquire and retain new members going forward. Now looking further out, we are moving to the next phase of the AHS brand relaunch. Drilling down on educating consumers about the value of our home warranty and improving our targeting of homeowners at a point when they are most likely to convert such as following the recent purchase of an expensive appliance.

憑藉這一成功，我們有信心在未來利用有時限的折扣來獲取和留住新會員。現在，展望未來，我們正進入 AHS 品牌重新推出的下一階段。深入教育消費者我們的房屋保固的價值，並在房主最有可能轉變的時候（例如最近購買了昂貴的電器後）提高我們對房主的定位。

Moving to slide 17, here are the primary reasons we remain bullish fullest about the long-term opportunity for home warranties.

轉向投影片 17，以下是我們對房屋保固的長期機會保持最充分看好的主要原因。

First, the market for home warranties is huge. 85 million homeowners. Through our research, we believe there are approximately 5 million homeowners with warranties today and we believe there is an opportunity to capture at least 10 million more.

首先，房屋保固市場龐大。 8500 萬名房主。透過我們的研究，我們相信目前大約有 500 萬名房主擁有保修，我們相信還有機會獲得至少 1000 萬以上的房主。

Second, this situation presents a massive opportunity to educate homeowners about the benefits of a home warranty. For millions of consumers being pinched by the cost of living, home warranties remain in that front way to guard against unplanned expenses. Furthermore, our research shows that peace of mind is the number one reason our members own a home warranty.

其次，這種情況提供了一個巨大的機會來教育房主有關房屋保固的好處。對於數以百萬計受到生活成本困擾的消費者來說，房屋保固仍然是防止計劃外支出的首要方式。此外，我們的研究表明，安心是我們的會員擁有家庭保固的首要原因。

Third, US demographics are conducive to future member expansion. Millennials are coming to the forefront as the primary group of homeowners, and we know we have significant opportunities with certain subgroups of this population.

第三，美國的人口結構有利於未來的會員擴張。千禧世代作為主要的房主群體走在最前沿，我們知道我們在這一人群的某些亞群體中擁有巨大的機會。

Finally, as the industry leader, we have a proven track record of innovation. The rapid rise of our on-demand offerings is a clear demonstration of how we are using technology to meet the needs of homeowners in the ways they want to be served. Together, all these factors give us optimism about the long-term demand for home warranties.

最後，作為行業領導者，我們擁有良好的創新記錄。我們的按需服務的迅速崛起清楚地表明了我們如何利用科技以房主想要的服務方式滿足他們的需求。所有這些因素共同使我們對房屋保固的長期需求感到樂觀。

And on that high note, I'll now turn it over to Jessica for the financials of the quarter.

說到這裡，我現在將把本季的財務數據交給傑西卡。

Thanks, Bill, and good morning, everyone.

謝謝比爾，大家早安。

Let's turn to slide 18, where you will see that Frontdoor delivered another quarter of strong financial performance. Revenue increased 4% versus the prior year period to $542 million. Net income increased 32% to $92 million and adjusted EBITDA increased 31% to $158 million.

讓我們轉向幻燈片 18，您將看到 Frontdoor 又一個季度實現了強勁的財務業績。營收較上年同期成長 4%，達到 5.42 億美元。淨利潤成長 32%，達到 9,200 萬美元，調整後 EBITDA 成長 31%，達到 1.58 億美元。

On slide 19, you will see gross profit increased 13% versus the prior year period to $306 million and gross profit margin improved 470 basis points to a record 56%.

在投影片 19 上，您將看到毛利較上年同期成長 13%，達到 3.06 億美元，毛利率提高 470 個基點，達到創紀錄的 56%。

Let's now move to the bridge on slide 20 where I’ll provide more context for the year-over-year improvement in second quarter adjusted EBITDA. Starting at the top, we had $17 million of favorable revenue conversion, driven by a 7% increase in price over the prior year period. This was partially offset by a 3% decline in volume. As a reminder, this includes the impact of a lower home warranty volume, which was partially offset by an $11 million increase in new HVAC sales.

現在讓我們轉到幻燈片 20 上的橋樑，我將在其中提供有關第二季度調整後 EBITDA 同比改善的更多背景資訊。從頂部開始，由於價格較上年同期上漲 7%，我們實現了 1700 萬美元的有利收入轉換。這被成交量下降 3% 部分抵消。需要提醒的是，這包括家庭保固量減少的影響，但新 HVAC 銷售額增加 1,100 萬美元部分抵消了這一影響。

Now turning to contract claims cost, which decreased $17 million, driven by a transition to higher trade service fees and continued process improvement initiatives. As a reminder, we increased our trade service fees in 2022 in response to inflationary cost pressures including higher contractor related expenses and greater parts and equipment costs. The transition to higher trade service fees has two impacts on our business.

現在轉向合約索賠成本，由於轉向更高的貿易服務費和持續的流程改進舉措，合約索賠成本減少了 1700 萬美元。謹此提醒，我們在 2022 年提高了貿易服務費，以應對通膨成本壓力，包括更高的承包商相關費用以及更高的零件和設備成本。向更高的貿易服務費過渡對我們的業務有兩個影響。

First, higher trade service fees results in a lower net cost per service request as these fees are a contra cost to claims expense on our income statement. When combined with a normalized inflationary environment Frontdoor’s second quarter inflation rate on a net cost per service request basis was slightly favurable as the increase in trade service fee dollars more than offset external inflation.

首先，較高的貿易服務費會導致每次服務請求的淨成本較低，因為這些費用是我們損益表中索賠費用的對照成本。與正常化的通膨環境相結合，Frontdoor 第二季度按每項服務請求的淨成本計算的通膨率略為有利，因為貿易服務費的增長足以抵消外部通膨。

Second, higher service fees result in a temporary decline in the number of service requests per customer as we typically see a short-term change in customer behavior until they become accustomed to the new amounts. Additionally, our team continues to be laser focused on cost management and we continue to benefit from the process improvement initiatives implemented over the past few years.

其次，較高的服務費會導致每位客戶的服務請求數量暫時下降，因為我們通常會看到客戶行為會發生短期變化，直到他們習慣新的金額。此外，我們的團隊繼續專注於成本管理，並且我們繼續從過去幾年實施的流程改善措施中受益。

These include, our high cost claims review programs, leveraging our bulk purchasing power with our suppliers and moving more of our service request to preferred contractors, which reached a record high 85% in the second quarter. This is an outstanding result, especially given that this is the beginning of our peak season and directly attributable to the great work our contractor relations team is doing to strengthen relationships across our contractor network. Contract claims costs were also negatively impacted by weather by approximately $4 million.

其中包括我們的高成本索賠審查計劃、利用我們對供應商的大量購買力以及將更多的服務請求轉移給首選承包商，這一比例在第二季度達到了創紀錄的 85%。這是一個出色的結果，特別是考慮到這是我們旺季的開始，並且直接歸功於我們的承包商關係團隊為加強整個承包商網絡的關係所做的出色工作。合約索賠成本也受到天氣影響約 400 萬美元。

Now moving to sales and marketing costs, which decreased $3 million over the prior period, primarily due to sales optimization efforts. And finally, general and administrative costs increased $2 million, primarily due to increased personnel costs, partially offset by a decrease in professional fees. In summary, adjusted EBITDA increased to $158 million, which exceeded the midpoint of our outlook by $23 million. I want to take a moment to provide some context here.

現在轉向銷售和行銷成本，比上一期減少了 300 萬美元，這主要歸功於銷售優化工作。最後，一般和行政成本增加了 200 萬美元，主要是由於人員成本增加，但部分被專業費用的減少所抵消。總之，調整後的 EBITDA 增至 1.58 億美元，比我們預期的中位數高出 2,300 萬美元。我想花點時間在這裡提供一些背景資訊。

Approximately, $10 million of the beat was due to a lower number of service requests, compared to our expectations, primarily in the HVAC trade. We anticipated a higher number of service requests in HVAC given the large favorability we saw in the second quarter of 2023 driven by mild weather and that is what happened as cooling degrees increased 20%.

與我們的預期相比，大約 1000 萬美元的增長是由於服務請求數量減少，主要是在暖通空調行業。鑑於 2023 年第二季溫和天氣的推動下，我們預計暖通空調領域的服務請求數量將會增加，而製冷度增加了 20% 時也出現了這種情況。

However, we only saw a moderate increase in the HVAC incidence rate, which was driven by other factors such as the change in trade service fees and Geographic concentration of our customer base. Our earnings beat also reflects an $8 million benefit from process improvement initiatives such as preferred contractor utilization increasing to 85%. Finally, we had $5 million from favorable claims costs adjustments related to prior periods.

然而，我們只看到暖通空調發生率略有上升，這是由其他因素驅動的，例如貿易服務費的變化和客戶群的地理集中度。我們的獲利成長也反映出流程改善措施帶來的 800 萬美元收益，例如首選承包商利用率提高到 85%。最後，我們從與前期相關的有利索賠成本調整中獲得了 500 萬美元。

Let's now turn to slide 21 for a review of our statement of cash flows. Net cash provided from operating activities was $187 million for the six months ended June 30 as a result of our exceptionally strong earnings and was comprised of $158 million in earnings adjusted for non-cash charges and $28 million in cash provided from working capital that was primarily driven by seasonality. Net cash used for investing activities was $22 million and was primarily comprised of capital expenditures related to investments in technology.

現在讓我們轉向投影片 21 來回顧我們的現金流量表。截至6 月30 日的六個月，由於我們的盈利異常強勁，經營活動提供的淨現金為1.87 億美元，其中包括1.58 億美元的非現金費用調整後的盈利和2,800 萬美元的營運資金提供的現金，主要是受季節性驅動。用於投資活動的淨現金為 2,200 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 $71 million and was comprised of $58 million of share repurchases, as well as $8 million of scheduled debt payments. We ended the quarter with $419 million in cash. This was comprised of $167 million of restricted cash and $252 million of unrestricted cash. I would like to point out that we ended the second quarter with a high amount of unrestricted cash. This is due to timing and seasonality of our claims costs and is expected to reverse in the third quarter. We are also extremely pleased to highlight Frontdoor’s strong free cash flow conversion of $164 million or 72% of EBITDA for the six months ended June 30.

用於融資活動的淨現金為 7,100 萬美元，其中包括 5,800 萬美元的股票回購以及 800 萬美元的預定債務支付。本季結束時，我們的現金為 4.19 億美元。其中包括 1.67 億美元的限制性現金和 2.52 億美元的非限制性現金。我想指出的是，我們在第二季結束時擁有大量不受限制的現金。這是由於我們的索賠成本的時間和季節性造成的，預計將在第三季扭轉。我們也非常高興地強調 Frontdoor 在截至 6 月 30 日的六個月中實現了 1.64 億美元的強勁自由現金流轉換，即 EBITDA 的 72%。

Now turning to slide 22, where I’ll provided update on our capital structure. We are in the strongest financial position this company has ever been in. And with this strength we are able to deliver on each aspect of our capital allocation strategy. Let me give you an update on each of our priorities.

現在轉到投影片 22，我將提供有關我們資本結構的最新資訊。我們正處於該公司有史以來最強勁的財務狀況。憑藉這一優勢，我們能夠實現資本配置策略的各個方面。讓我向您介紹我們每個優先事項的最新情況。

Our number one priority is growth, and we continue to target closing the 2-10 acquisition in the fourth quarter, which will add more customers, more revenue and more earnings.

我們的首要任務是成長，我們繼續目標是在第四季度完成 2-10 家收購，這將增加更多客戶、更多收入和更多收益。

Our second objective is to ensure we have a solid financial profile. Our net leverage ratio was less than one times that the end of the second quarter. This is well below our targeted range of 2 to 2.5 times, which we anticipate getting back to after the 2-10 acquisition closes.

我們的第二個目標是確保我們擁有穩健的財務狀況。我們的淨槓桿率不到第二季末的一倍。這遠低於我們 2 至 2.5 倍的目標範圍，我們預計在 2-10 次收購結束後會回到這個目標範圍。

And finally, our third objective is to return cash to shareholders. Year-to-date, through the end of July, we use $83 million to repurchase 2.5 million shares. This brings our total to $364 million since we initiated our $400 million share repurchase program in 2021.

最後，我們的第三個目標是將現金回饋給股東。今年迄今，截至 7 月底，我們使用 8,300 萬美元回購了 250 萬股股票。自 2021 年啟動 4 億美元的股票回購計畫以來，這使我們的總額達到 3.64 億美元。

Additionally, as Bill said earlier, our Board just approved a new three-year $650 million share repurchase authorization that starts on September 4, 2024. This amount is 63% higher than our current three-year authorization. In summary, we are fortunate to be in a position where we can dramatically increase our ability to repurchase shares, at the same time we are completing the largest acquisition in the company’s history. And I believe both of these actions will deliver substantial shareholder value over time.

此外，正如比爾早些時候所說，我們的董事會剛剛批准了一項新的為期三年、價值 6.5 億美元的股票回購授權，該授權將於 2024 年 9 月 4 日開始生效。這筆金額比我們目前的三年授權高出 63%。總之，我們很幸運能夠大幅提高回購股票的能力，同時我們也正在完成公司史上最大的收購。我相信，隨著時間的推移，這兩項行動都將為股東帶來可觀的價值。

Now turning to slide 23, where I will walk through our third quarter and full year 2024 outlook. We expect our third quarter revenue to be between $530 million and $545 million, which reflects a mid-single-digit increase in our renewal channel, a decline in both our real estate and B2C channels of slightly over 10%, and an approximately $10 million increase in other revenue. Third quarter adjusted EBITDA is expected to range between $130 million and $140 million, up about $7 million over the prior period at the midpoint.

現在轉到投影片 23，我將在其中介紹我們的第三季和 2024 年全年展望。我們預計第三季的營收將在5.3 億美元至5.45 億美元之間，反映出我們的續訂管道出現中個位數成長，我們的房地產和B2C 通路下降略高於10%，約1000 萬美元其他收入的增加。第三季調整後的 EBITDA 預計在 1.3 億美元至 1.4 億美元之間，比上一季中點增加約 700 萬美元。

Now turning to our full-year 2024 outlook, starting with revenue where we are maintaining our range at $1.81 billion to $1.84 billion, which includes a mid-single-digit increase in realized price, partially offset by a mid-single-digit decline and realized volume. This assumes a mid-single-digit increase in the renewal channel and a roughly 15% decline in both the real estate and B2C channel.

現在轉向我們的 2024 年全年展望，從收入開始，我們將收入範圍維持在 18.1 億美元至 18.4 億美元之間，其中包括實現價格中個位數的增長，部分被中個位數的下降和實現量。假設續約管道出現中位數個位數成長，而房地產和 B2C 通路均下降約 15%。

It also seems other revenue will now increase approximately 40% to approximately $110 million. This is almost entirely driven by higher new HVAC sales. We are now expecting the number of home warranties to decline 3% (technical difficulty) in 2024.

其他收入現在似乎也將增加約 40%，達到約 1.1 億美元。這幾乎完全是由新暖通空調銷售的增加所推動的。我們現在預計 2024 年房屋保固數量將下降 3%（技術難度）。

Now turning to our gross profit margin outlook. I want to call out that our first-half gross margin was 54%. However gross profit margin is expected to be lower in the second half of the year for the following reasons: lower contributions from realized price and trade service fees; and increase in the number of service requests per customer for the balance of the year; and finally, we expect to see normal low-single-digit inflation for the duration of 2024.

現在轉向我們的毛利率前景。我想指出的是，我們上半年的毛利率為 54%。但下半年毛利率預計較低，原因如下：已實現價格和貿易服務費的貢獻較低；當年剩餘時間內每位客戶的服務請求數量增加；最後，我們預期 2024 年通膨率將維持在正常的低個位數水準。

The net effect is that we are raising our full year gross profit margin outlook to be slightly above 51%. We are increasing our full-year SG&A range to be between $605 million and $615 million to account for an additional $10 million investments to drive organic growth and customer retention initiatives.

最終效果是我們將全年毛利率預期提高至略高於 51%。我們將全年 SG&A 範圍提高到 6.05 億美元至 6.15 億美元之間，以額外投資 1,000 萬美元來推動有機成長和客戶保留計畫。

This also includes an estimated $15 million of transaction costs related to closing the 2-10 acquisition, which is excluded from adjusted EBITDA. Based on these updated inputs, we are increasing our full-year adjusted EBITDA range to be between $385 million and $395 million. Our full-year outlook also includes $16 million of interest income and reflects stock compensation expense of approximately $28 million.

這還包括與完成 2-10 收購相關的估計 1500 萬美元的交易成本，該成本不包括在調整後的 EBITDA 中。根據這些更新的信息，我們將全年調整後 EBITDA 範圍擴大到 3.85 億美元至 3.95 億美元之間。我們的全年展望還包括 1,600 萬美元的利息收入，並反映了約 2,800 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%. In conclusion, we continue to deliver exceptionally strong financial results and our business is operating consistently well. Before I turn the call over to Bill, I would like to tell you about a change in our Investor Day date, which we are moving to February 27, 2025.

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%。總之，我們持續取得異常強勁的財務業績，並且我們的業務始終運作良好。在將電話轉給 Bill 之前，我想告訴您有關投資者日日期的變更，我們將其推遲到 2025 年 2 月 27 日。

After we announced the acquisition of 2-10, we felt it was more important to focus the team on delivering on integration and synergy planning for the balance of 2024. And we can then come back to you at Investor Day to share more details on the combined business.

在我們宣布收購 2-10 後，我們認為更重要的是讓團隊專注於 2024 年剩餘時間的整合和協同規劃。然後我們可以在投資者日與您聯繫，分享有關合併後業務的更多詳細資訊。

With that, I will now turn the call back over to Bill.

這樣，我現在將把電話轉回給比爾。

Thanks, Jessica. I want to re-emphasize what I said earlier about near-term realism and long-term optimism. While we face the realism of near-term challenges of the real estate in BTC funds, our long-term optimism about home warranties is strong. And over the past two years, we have done what we said we would do. We've taken several decisive actions to position the company for the long haul.

謝謝，傑西卡。我想再次強調我之前所說的近期現實主義和長期樂觀主義。雖然我們面臨比特幣基金房地產近期挑戰的現實，但我們對房屋保固的長期樂觀態度仍然強烈。在過去的兩年裡，我們做到了我們所說的話。我們採取了幾項果斷行動來為公司做好長期定位。

We've explored strategic M&A to accelerate our growth and the acquisition of 2-10 is proceeding. We're seeing positive momentum with the relaunch of our American Home Shield brand. We’ve positioned ourselves team for the eventual turnaround in the real estate channel. We continue to drive higher customer retention rates. Our HVAC on-demand business is doing exceptionally well and our partnership with Moen is showing tremendous potential. Over the past 18 months, we have stabilized our margins, and we remain confident in our long-term margin profile.

我們已經探索了策略併購來加速我們的成長，2-10 的收購正在進行中。隨著 American Home Shield 品牌的重新推出，我們看到了積極的勢頭。我們已經為房地產通路的最終轉變做好了團隊定位。我們持續提高客戶保留率。我們的 HVAC 按需業務表現非常出色，我們與摩恩的合作關係顯示出巨大的潛力。在過去 18 個月中，我們的利潤率已經穩定，我們對長期利潤率狀況仍然充滿信心。

Finally, we continue to return excess cash to shareholders through share buybacks. As demonstrated by our new $650 million share repurchase authorization, which is a 63% increase over our previous authorization. As you can see, we have a lot of great news and that's why I continue to be so optimistic about the future of our business. But our valuation doesn't reflect these facts and that leads into my final point. We showed this slide in February.

最後，我們繼續透過股票回購將多餘的現金回饋給股東。正如我們新的 6.5 億美元股票回購授權所證明的那樣，這比我們之前的授權增加了 63%。正如您所看到的，我們有很多好消息，這就是為什麼我仍然對我們業務的未來如此樂觀。但我們的估值並沒有反映這些事實，這就是我的最後一點。我們在二月展示了這張投影片。

The data on the slide has been updated through the end of July. However, taking into account the guidance we just provided, our multiple has actually declined to eight times as of today. The message here is simple. Our stock remains significantly undervalued.

幻燈片上的數據已更新至七月底。然而，考慮到我們剛剛提供的指導，截至今天我們的市盈率實際上已下降至八倍。這裡的資訊很簡單。我們的股票仍然被嚴重低估。

With that, Jessica and I are now ready to take your questions. Operator?

至此，傑西卡和我現在準備好回答你們的問題了。操作員？

(Operator Instructions) Jeff Schmitt, William Blair.

（操作員說明）傑夫·施密特，威廉·布萊爾。

Hi, thank you. Could you give us an update on your pricing strategy over the next year? I know you said you are going to focus more on discounting then kind of broad price cuts. You had mentioned that in the past, but maybe if you could refresh us on why you are taking that route and kind of how does the competitive environment look? Are they discounting, as well?

你好，謝謝。您能否向我們介紹一下您明年的定價策略的最新情況？我知道你說過你將更專注於折扣而不是廣泛的降價。您過去曾提到過這一點，但也許您能讓我們重新了解為什麼要走這條路以及競爭環境是什麼樣的？他們也打折嗎？

Yeah, hi, Jeff. So let me let me flip this into DTC I1 and then renewal pricing. So with the renewal pricing, we're going to be consistent. We will have an increase but not to the level that we've done in the past couple of years. So but there will be a pricing action o our renewals.

是的，嗨，傑夫。因此，讓我將其翻轉為 DTC I1，然後是續訂定價。因此，對於續訂定價，我們將保持一致。我們將會有所增加，但不會達到過去幾年的水平。因此，我們的續訂將會採取定價行動。

On new BTC1, we will be at a competitive price and as we said use targeted discounts on a time bounded basis as the tools not only grow new members, but we're very pleased by the work we've done in terms of being able to renew people even when they are faced with an aggressive discount.

在新的 BTC1 上，我們將提供具有競爭力的價格，正如我們所說，在有時間限制的基礎上使用有針對性的折扣，因為這些工具不僅可以增加新成員，而且我們對我們在能夠即使他們面臨大幅折扣，也能續約員工。

So, I think it's going to be more of what we're doing right now with the added piece. I think we've talked about this as we're going to have a more almost historic way of looking at our pricing for renewals. And I think that's a reflects the new user is more elastic and the renewal users and more inelastic to our customer.

所以，我認為這將更多地是我們現在正在做的增加的部分。我想我們已經討論過這個問題，因為我們將採取一種更接近歷史的方式來看待我們的續約定價。我認為這反映了新用戶更具彈性，而續訂用戶對我們的客戶來說更具彈性。

kay. Yeah, that makes sense. And then, you lowered your full year outlook for direct growth to a decline of 15% could you maybe discuss what drove that? Is just too tough of an environment I guess for that, for the pricing strategy to move the needle a ton there or just tough broad industry trend?

凱。是的，這是有道理的。然後，您將全年直接成長預期下調至下降 15%，您能否討論一下是什麼推動了這一下降？我想，對於定價策略來說，是環境太艱難了，還是產業整體趨勢嚴峻？

Yeah, I think they'll hit it in a script domain at the end of the day consumers are stressed, but they're spending less. We ended this year expecting interest cuts in the real estate market to rebound and it just simply hasn't. So, we are just saying to reflect the current macro.

是的，我認為最終消費者會感到壓力，但他們會在腳本領域中實現這一目標，但他們的支出會減少。今年結束時，我們預計房地產市場的降息將會反彈，但事實並非如此。所以，我們只是說要反映當前的宏觀情況。

Yeah, I think Jeff, we grinded over this one a lot. I think we -- I said new term realism. The category is down we showed you today that we when we talked about the data from the California Department of Insurance, which looks at all national providers who are based in California. And while we're performing better than they are, there's nothing to brag about because we're all, we've all declined. So we it’s a tough as Jessica said macro, but the specific home warranty category continues to be slow. And I think the overhang of real estate is really affecting that.

是的，我想傑夫，我們在這個問題上苦思了很多。我認為我們——我說的是新術語現實主義。該類別已下降，我們今天向您展示了我們在談論加州保險部的數據時，該部門查看了位於加州的所有全國性提供者。雖然我們的表現比他們好，但沒有什麼值得吹噓的，因為我們都拒絕了。因此，正如傑西卡所說，宏觀我們的處境很艱難，但特定的家庭保固類別仍然緩慢。我認為房地產的過剩確實影響了這一點。

Sergio Segura, KeyBanc.

塞爾吉奧·塞古拉 (Sergio Segura)，KeyBanc。

Great. Thanks for taking the question. Something you could dive into the Moen partnership a little bit more? Just how big of an opportunity is this for the business? And I guess you know taking a step back and taking a bigger picture view, do you envision partnerships like this be more of a strategic priority in the future? Any thoughts on that would be helpful. Thank you.

偉大的。感謝您提出問題。您可以進一步深入了解與摩恩的合作關係嗎？這對企業來說到底有多大的機會呢？我想您知道退後一步並以更大的視角來看，您是否認為這樣的合作夥伴關係將成為未來的策略優先事項？對此的任何想法都會有所幫助。謝謝。

Yeah, we're not ready to share the numbers on Moen. We are off to a very fast start and logically, it's a terrific opportunity for us. Even if it fits just with Farmers Insurance as they look to expand into other states. Moen is also proven to be a terrific partner and our plumbing contractors are thrilled to be doing this at this point in California, but looking to expand that.

是的，我們還沒準備好分享摩恩的數據。我們的起步非常快，從邏輯上講，這對我們來說是一個絕佳的機會。即使它只適合農民保險，因為他們希望擴展到其他州。摩恩也被證明是一個出色的合作夥伴，我們的管道承包商很高興此時在加州這樣做，但希望擴大這一範圍。

But I think it is an indication of the type of approaches we want to take where I think our on-demand business or non-warranty business really is starting to do two things. We've got this user base of American Home Shield members, 1.9 million, 2 million strong that we can grow share of wallet with as their -- a lot of their systems reach end of life.

但我認為這表明了我們想要採取的方法類型，我認為我們的按需業務或非保固業務確實開始做兩件事。我們擁有美國家庭盾會員的用戶群，有 190 萬、200 萬，隨著他們的許多系統達到使用壽命，我們可以增加錢包份額。

And then, we have this ability to go directly to the consumer and I think that with the leveraging, the contractor network we have, which is really one of the core capabilities of this company. We have a lot of opportunity in a lot of different ways and that's why we're so excited about the on-demand side.

然後，我們有能力直接面向消費者，我認為透過利用我們擁有的承包商網絡，這確實是這家公司的核心能力之一。我們以許多不同的方式擁有很多機會，這就是為什麼我們對按需方面如此興奮。

Got it. And maybe. A second question. Thanks for the demographic breakdown in the presentation. I thought that was really helpful and interesting to see. I'm curious since you relaunched the American Home Shield brand, have you seen any differences in the types of customers coming into the sales funnel compared to your existing customer base? Anything that call out there would be very helpful. Thank you.

知道了。也許吧。第二個問題。感謝演示中的人口統計細分。我認為這確實很有幫助並且很有趣。我很好奇，自從您重新推出 American Home Shield 品牌以來，與您現有的客戶群相比，您是否發現進入銷售管道的客戶類型有任何差異？任何在那裡呼籲的事情都會非常有幫助。謝謝。

Yeah, I don't want to go into the specifics, but as we indicated in the demographic data, we are resonating more that's what I wanted to say, this is not just an old person's brand or a lower income brand. We are seeing a broad base group of folks coming through. And I think. The stuff we did with the relaunch the new tagline, the new logo, the new look, the advertising and the website which we’re really pleased with the increase in visits to the website.

是的，我不想透露細節，但正如我們在人口統計中所表明的那樣，我們產生了更多的共鳴，這就是我想說的，這不僅僅是一個老年人的品牌或低收入品牌。我們看到有一個廣泛的基礎群體正在湧入。我認為。我們在重新推出新口號、新商標、新外觀、廣告和網站方面所做的工作，我們對網站訪問量的增加感到非常滿意。

So it's been a broad based group there. But we're pleased with how the relaunch has started and relaunches they take time. They're a long-term play and what you're looking to do is make sure your consumer indicators are going in the right direction, and they certainly are in this case.

所以這是一個基礎廣泛的群體。但我們對重新啟動的方式感到滿意，重新啟動需要時間。這是一項長期的工作，您要做的就是確保您的消費者指標朝著正確的方向發展，在這種情況下確實如此。

Maxwell Fritscher, Truist.

麥克斯韋·弗里徹，真理論者。

Hey, good morning. I am on for Mark Hughes. I was wondering what the contribution to the margin was from the HVAC on-demand or more broadly the other channel this quarter?

嘿，早安。我代表馬克休斯。我想知道本季 HVAC 按需或更廣泛的其他管道對利潤的貢獻是什麼？

So, we said that was about $11 million increase over prior year coming from HVAC. So, again, this continues to be a bright spot for us and really outperforming as we continue to expand the program.

因此，我們說 HVAC 比前一年增加了約 1,100 萬美元。因此，這仍然是我們的一個亮點，並且隨著我們繼續擴展該計劃，它的表現確實非常出色。

Yeah, I think, to your question. The margin contribution we're not going to go into specifically. We have indicated that it's a lower margin than certainly the home warranty piece. But we're not going to indicate exactly how much, And to us right now, it's all a matter of how it all comes together as the total P&L.

是的，我想，對於你的問題。我們不會具體討論保證金貢獻。我們已經表明，它的利潤比家庭保固的利潤要低。但我們不會具體說明多少，現在對我們來說，問題在於如何將其匯總為總損益。

Got it. Understood and then you had mentioned that the HVAC service requests were down in the quarter due to geography of your customers. Is that a similar trend that you are seeing thus far in 3Q as it seems to the warmer weather has continued?

知道了。了解，然後您提到由於客戶的地理位置，本季度的 HVAC 服務請求有所下降。到目前為止，您在第三季度看到的趨勢是否類似，因為天氣似乎仍在持續變暖？

Well, I think there's like a couple of reasons. So I think lower incidents as I said there was an impact just that the change to trade service fees that drive just a change in customer behavior in the near term, where they are maybe a little bit more thoughtful about filing for a service request. I think the other one thing that we're really diving into is the impact of the new HVAC program is also having.

嗯，我認為有幾個原因。因此，我認為，正如我所說，事件減少會產生影響，因為交易服務費的變化會在短期內推動客戶行為的變化，他們在提交服務請求時可能會更加考慮周全。我認為我們真正深入研究的另一件事是新的暖通空調計劃也產生的影響。

I think that it's transitioning a service requests into a new HVAC sale, which this is a new program for us. We're still digging into that. But I think the combination of the incidents, as well as the impact that new HVAC is having had really probably the largest drivers as we think about the impact on overall incidents for the quarter. It definitely was a little bit head scratching right?

我認為它將服務請求轉變為新的暖通空調銷售，這對我們來說是一個新計劃。我們仍在深入研究這一點。但我認為，當我們考慮對本季整體事件的影響時，這些事件的結合以及新暖通空調的影響可能確實是最大的驅動因素。這確實有點讓人頭痛吧？

Because I looked at the overall increase in cooling degree days year-over-year, but yet our HVAC incidents were down. So, some good benefits for us in the quarter, but definitely something we continue to dig into.

因為我觀察了冷卻度天數同比的整體增加​​，但我們的暖通空調事故下降了。因此，本季對我們來說有一些好處，但絕對是我們繼續深入研究的東西。

Yeah, we're not going to go into Q3 specifically, but it's -- suffice to say it's all in the guidance that we gave for the full year.

是的，我們不會具體討論第三季度，但足以說明這一切都在我們為全年提供的指導中。

Daniel Pfeiffer, JP Morgan.

丹尼爾‧菲佛，摩根大通。

Hey, thanks for the question. For the first, obviously, HVAC upgrade has been a huge success. But I am wondering if you could give us any color on expectations for which category you might want to be into more within on-demand outside of the other partnerships? And then, I have a follow-up.

嘿，謝謝你的提問。首先，顯然，暖通空調升級取得了巨大成功。但我想知道您是否可以給我們任何關於您可能希望在其他合作夥伴關係之外更多地參與點播類別的期望的信息？然後，我有一個後續行動。

Yeah, obviously, our secondary is the Moen partnership. We're not ready to talk through other alternatives, but suffice to say that our corporate partnerships team is hard at work. And I think with the HVAC success and then the thing with Moen, we are getting a lot of interest from here. So, really what we want to do is not only work with the partner, but work with our contractor networks to decide, can we can we deploy our contractors? Can we execute it? And that's been part of the early success for Moen because our plumbing group has really jumped on this and is executing beautifully.

是的，顯然，我們的第二個合作夥伴是摩恩合作夥伴。我們還沒有準備好討論其他替代方案，但足以說明我們的企業合作夥伴團隊正在努力工作。我認為，隨著暖通空調領域的成功以及摩恩的成功，我們從這裡獲得了許多興趣。因此，我們真正想做的不僅是與合作夥伴合作，而是與我們的承包商網路一起決定，我們可以部署我們的承包商嗎？我們可以執行嗎？這是摩恩早期成功的一部分，因為我們的管道團隊確實抓住了這一點，並且執行得非常出色。

Got you. And then, for the second, maybe talk about your expectations for marketing spend for the remainder the year? And maybe whether it makes sense to pull back a little given the macro headwinds and continued weakness? Thanks.

明白你了。然後，第二個問題，也許可以談談您對今年剩餘時間行銷支出的預期？考慮到宏觀不利因素和持續疲軟，稍微回撤是否有意義？謝謝。

Yeah, I actually want to go the other way. I want to spend into it because I think we have our brand straights. We just relaunched the brand. I mean we indicated in the – and Jessica’s talk, we're looking at an incremental $10 million to try to drive demand and retention initiatives. We're figuring out what the best way to deploy that is.

是的，我其實想走另一條路。我想投資它，因為我認為我們有自己的品牌優勢。我們剛剛重新推出了該品牌。我的意思是，我們在 和 Jessica 的談話中表示，我們正在考慮增加 1000 萬美元，以嘗試推動需求和保留計劃。我們正在找出部署它的最佳方法。

But we're thinking more in the opposite direction, which is, we still think there are great opportunities. We think we have momentum here. And so, we're going to try to drive into it. It's not all the money in the world. We're taking, I think we're going to make, well, I'll use the prudent word again, prudent investments. But we're looking to continue to grow. We want to we want to keep the hammer down.

但我們更多的是在相反的方向思考，也就是說，我們仍然認為存在著很大的機會。我們認為我們在這裡有動力。因此，我們將嘗試進入其中。這不是世界上所有的錢。我們正在採取，我認為我們將進行，嗯，我會再次使用謹慎這個詞，謹慎投資。但我們希望繼續成長。我們希望我們希望保持低調。

Isaac Sellhausen, Oppenheimer.

艾薩克·塞爾豪森，奧本海默。

Hey, good morning. It’s Isaac on for Ian. Thanks for taking the question. Congrats on the strong quarter. My first is on the gross profit margin target. Now that your sort of exceeding the pre-covered margins. Is there anything structural that it’s changed the business that would make these margins sustainable over the longer term. I know you mentioned margins will moderate in the second half of the year for a few reasons. But as you monetize new initiatives like the Frontdoor App could, margins go higher over the long term?

嘿，早安。由艾薩克代替伊恩。感謝您提出問題。恭喜季度表現強勁。我的第一個目標是毛利率目標。現在您已經超越了預先覆蓋的利潤。它是否對業務產生了任何結構性改變，使這些利潤率能夠長期持續。我知道您提到下半年利潤率將因幾個原因而放緩。但是，當您將 Frontdoor 應用程式等新舉措貨幣化時，從長遠來看，利潤率會更高嗎？

No, I think I want to continue as we just talk about kind of our long-term focus which we’ve guided to the upper 40%. As Bill alluded to, we are not ready to talk about really on-demand margins specifically but they are lower than the traditional home warranty business. So I think that as we think about what the long-term margin profile is again it's that upper 40s, which really incorporates the balance we anticipate as we continue to grow on-demand.

不，我想我想繼續，因為我們只是談論我們的長期重點，我們已經將其引導到了 40% 以上的人群。正如比爾所提到的，我們還沒有準備好具體討論真正的按需利潤，但它們低於傳統的家庭保固業務。因此，我認為，當我們考慮長期利潤狀況時，再次考慮的是 40 多歲，這確實包含了我們隨著我們繼續按需增長而預期的平衡。

Okay. Understood. And then just a quick one on the 2-10 acquisition. How large is the traditional home warranties business within that? And maybe how does it compare to others in the space and HS?

好的。明白了。然後快速介紹一下 2-10 的收購。其中傳統的房屋保固業務有多大？也許它與空間和 HS 中的其他產品相比如何？

Yeah, stay tuned on that Isaac. We are - we gave the broad numbers for 2-10 in terms of the number of customers they have year-to-date around 300,000. Their revenue is around $200 million. Their EBITDA was around $40 million. We have not yet disclosed the way we're going to combine the companies. That's why one of the reasons why we pushed back Investor Day.

是的，請繼續關注艾薩克。我們給出了 2-10 家的大致數字，他們今年迄今擁有的客戶數量約為 30 萬名。他們的收入約為2億美元。他們的 EBITDA 約為 4000 萬美元。我們尚未透露合併公司的方式。這就是我們推遲投資者日的原因之一。

We want to come to you with a full look at it. Right now, we have to operate as independent companies while we're meeting with 2-10 on organization and structure and things like that we really can't get into business plans or anything like that. So, more to come, but obviously in the model that we put together that made us decide to go after and to make this investment, we saw enough indicators there that said I think is going to be a great value-added acquisition for our shareholders.

我們希望為您提供全面的了解。現在，我們必須作為獨立公司運營，同時我們正在與 2-10 人就組織和結構等問題舉行會議，我們確實無法討論商業計劃或類似的問題。因此，還會有更多的事情發生，但顯然在我們建立的模型中，我們決定進行這項投資，我們看到了足夠的指標，表明我認為這對我們的股東來說將是一次巨大的增值收購。

Thank you. We have no further questions. So this concludes today's call. Thank you for joining. You may now disconnect your lines.

謝謝。我們沒有其他問題了。今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。

Thank you all.

謝謝大家。

Thank you.

謝謝。