Frontdoor Inc (FTDR) 2024 Q3 法說會逐字稿

Ladies and gentlemen, welcome to front doors, third quarter, 2024 earnings call.

女士們、先生們，歡迎來到前門 2024 年第三季財報電話會議。

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演講者。

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

此時。我們將開始今天的通話。請繼續，戴維斯先生。

Thank you, operator.

謝謝你，接線生。

Good morning, everyone and thank you for joining front doors, third quarter, 2024 earnings conference call and a special. Thank you for joining the Monday before the election.

大家早安，感謝您參加前門 2024 年第三季收益電話會議和特別活動。感謝您在選舉前的星期一加入。

Joining me today are front doors, Chairman and Chief Executive Officer, Bill Cobb and front doors. Chief Financial Officer, 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 dot frontdoorhome dotcom.

今天加入我的是前門、董事長兼執行長比爾·科布和前門。財務長 Jessica Ross 表示，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，該網站位於投資者網 frontdoorhome dotcom。

There is also additional detail about our front door brand at front door dotcom and in our new mobile app that you can download in the app Store and Google Play 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.

在 Front Door dotcom 和我們的新行動應用程式中還有有關我們前門品牌的更多詳細信息，您可以在應用程式商店和 Google Play 中下載，如演示文稿幻燈片 3 中所述。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SEC 提交的文件。

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.

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。

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

所有前瞻性陳述均截至今天（11 月4 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，我們還將參考某些前瞻性陳述。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 GAAP 財務指標與其最具可比性的 GAAP 財務指標的調整表，以便更好地幫助您了解我們的財務表現。

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. I want to start by highlighting our dramatic improvement over the last two plus years when I came into the business in 2022 our gross margins were at an all time low of 43% that has changed today. We are increasing our 2024 gross margin outlook to about 53% an all time high.

謝謝馬特戴維斯，大家早安。首先，我想強調一下，當我在2022 年進入該行業時，我們在過去兩年多的時間裡取得了巨大的進步，我們的毛利率處於43% 的歷史最低水平，而今天這一情況發生了變化。我們將 2024 年毛利率展望提高至 53% 左右，創歷史新高。

Not many companies can show an over 1,000 basis point margin improvement in such a short time frame.

沒有多少公司能夠在如此短的時間內實現超過 1,000 個基點的利潤率改善。

Turning to slide. Five, we delivered record financial performance in the third quarter, revenue increased 3% to $540 million gross profit margin expanded 550 basis points to 57%.

轉身滑行。五、第三季我們交付了創紀錄的財務業績，營收成長3%至5.4億美元，毛利率擴大550個基點至57%。

Net income grew 40% to $100 million adjusted EBITA grew 29% to $165 million. And we have used $119 million to repurchase 3.2 million shares year-to-date through August and probably the best news of all as we will show you shortly, our marketing and discounting efforts are working. The DTC customer account actually grew in the third quarter versus the second quarter. And we're now forecasting that our ending 2024 DTC customer count will be in line with a year ago. This is the progress we have been working towards while we are very pleased with the recent trajectory of the DTC business growing. Our home warranty customer base continues to be our number one strategic priority. Our other key strategic priorities are to expand our on demand business and to close the acquisition of 210 homebuyers' warranty.

淨利潤成長 40%，達到 1 億美元，調整後 EBITA 成長 29%，達到 1.65 億美元。年初至今，截至 8 月份，我們已使用 1.19 億美元回購了 320 萬股股票，這可能是最好的消息，因為我們很快就會向您展示，我們的行銷和折扣工作正在發揮作用。第三季 DTC 客戶帳戶實際上比第二季有所成長。我們現在預測 2024 年底的 DTC 客戶數量將與一年前持平。這是我們一直在努力取得的進展，同時我們對 DTC 業務最近的成長軌跡感到非常滿意。我們的上門保固客戶群仍是我們的第一個策略重點。我們的其他關鍵策略重點是擴大我們的按需業務並完成對 210 個購屋者保固的收購。

Speaking of the acquisition, our integration team continues to work with 210 to prepare for a smooth transition. The regulatory approval process is nearing completion and we're now just waiting for approval from California bottom line. The acquisition remains on track to close in the fourth quarter okay. So here's how I'm going to lay out the next few minutes first, I'm going to discuss what's happening with home warranties in both the real estate and DTC channels followed by our momentum and on demand, then renewals and finally a major milestone in our customer experience journey. The new A HS app starting with real estate, the market continues to flounder. According to the September report from the National Association of Realtors or NAR, the annual run rate of home sales decreased to 3.8 million homes. The lowest in 14 years. Additionally, mortgage rates and home prices remain elevated.

說到收購，我們的整合團隊將繼續與 210 合作，為順利過渡做好準備。監管審批程序已接近完成，我們現在只是等待加州底線的批准。此次收購仍有望在第四季完成。因此，我將首先介紹接下來的幾分鐘，我將討論房地產和 DTC 管道中房屋保固的情況，然後是我們的動力和按需，然後是續訂，最後是一個重要的里程碑在我們的客戶體驗之旅中。新的A HS應用程式從房地產開始，市場繼續陷入困境。根據全國房地產經紀人協會 (NAR) 9 月的報告，房屋銷售年運行率下降至 380 萬套。創14年來最低。此外，抵押貸款利率和房價仍然很高。

Simply put with fewer homes being sold. There are fewer opportunities to attach a home warranty for some context. Our 1st year real estate customer count is down almost 14% in the third quarter versus the prior year and down more than half from five years ago.

簡而言之，出售的房屋減少了。在某些情況下附加家庭保固的機會較少。第三季我們的第一年房地產客戶數量比前一年減少了近 14%，比五年前減少了一半以上。

But there is some positive momentum, some positive movement. Existing home inventory is rising now at 4.3 months of supply which is the highest it's been in the last four years. Further mortgage rates are down from a year ago.

但也有一些積極的勢頭，一些積極的行動。現有房屋庫存目前正在上升，供應量達到 4.3 個月，這是過去四年來的最高水準。抵押貸款利率比一年前進一步下降。

Finally, American Home Shield has continued to maintain its category leading share of warranties attached to home purchases, turning to slide 11 and the direct to consumer channel. Let's start with the performance of the marketing campaign. In short, it is working for starters. We have significantly grown aided brand awareness. It's jumped from 39% in 2022 to over 54% today due to the brand relaunch and marketing campaign.

最後，American Home Shield 繼續保持其在購房附加保固類別中的領先份額，轉向幻燈片 11 和直接面向消費者的管道。讓我們從行銷活動的表現開始。簡而言之，它對初學者來說是有效的。我們顯著提高了輔助品牌知名度。由於品牌重新推出和行銷活動，這一比例從 2022 年的 39% 躍升至如今的 54% 以上。

A awareness is also up. Recent research shows that about 40% of homeowners now recognize at least one of the three warranty of TV spots in a crowded media space. That's a very good number.

意識也起來了。最近的研究表明，大約 40% 的房主現在至少認識到在擁擠的媒體空間中電視廣告的三個保證中的至少一項。這是一個非常好的數字。

Google searches for A HS are also up year over year, but I need to make a key point here. There has been some confusion that searches are down according to Google trends. Let me provide some clarity. Google trends is a snapshot of how popular your search term is relative to all search terms. It is not representative of a specific brand's performance over time.

谷歌對 A HS 的搜尋量也逐年上升，但我需要在這裡指出一個關鍵點。根據谷歌趨勢，搜尋量有所下降，這引起了一些困惑。讓我澄清一下。Google 趨勢是您的搜尋字詞相對於所有搜尋字詞的受歡迎程度的快照。它並不代表特定品牌隨時間的表現。

Even Google says you should not use Google trends for insights or predictive analytics.

甚至谷歌也表示，你不應該使用谷歌趨勢來進行洞見或預測分析。

So the fact is Google searches for AHS are actually up through September. How do we know that we get our information directly from Google? And we certainly do pay for that.

事實上，谷歌對 AHS 的搜尋實際上一直持續到 9 月。我們如何知道我們直接從 Google 獲取資訊？我們確實為此付出了代價。

This information represents true volume over time and is much more brand specific, accurate and comprehensive.

這些資訊代表了一段時間內的真實交易量，並且更加具有品牌針對性、準確性和全面性。

So to be clear, the 1st year of the campaign has been successful as we move forward into the second phase of the A HS marketing campaign, we will continue to build brand awareness in 2025 through a more focused and targeted approach that builds consideration and grows leads. We will share these plans in much more detail at our investor day in new York on February 27th, we are also optimizing our price discounting strategy. This is what smart brands do in times of market, softness brands must adjust to changing consumer behavior.

因此，需要明確的是，隨著我們進入A HS 行銷活動的第二階段，該活動的第一年已經取得了成功，我們將在2025 年繼續透過更有針對性和更有針對性的方法來建立品牌知名度，從而建立關注度並成長領先。我們將在 2 月 27 日紐約投資者日上更詳細地分享這些計劃，我們也正在優化我們的價格折扣策略。這就是聰明品牌在市場時代所做的事情，軟性品牌必須適應不斷變化的消費者行為。

To be clear. We are not relying solely on aggressive discounting. We understand it's not a long term strategy, but it's where we are seeing strong demand and conversion.

要明確的是。我們不僅僅依靠大幅折扣。我們知道這不是一個長期策略，但我們看到了強勁的需求和轉換。

In summary, within the DTC channel awareness is up, brand, searches are up demand and conversion are up and our customer count is up again. This is what we have been working toward.

總之，在 DTC 通路內，知名度提高了，品牌、搜尋需求和轉換率也提高了，我們的客戶數量也再次增加。這也是我們一直在努力的方向。

Now. Let me step away from our traditional home warranty business and talk about our ondemand business. We expect to generate over $100 million in ondemand revenue this year, primarily due to our new HVAC program which continues to deliver great results regarding our new partnership with Sorry Moen as announced in our press release last week, we are currently expanding that business to seven additional states. In addition to California front door will still soon be the exclusive installer of mowen smart shutoff valves in Idaho, Arizona, Utah, Oregon, Texas, Georgia and South Carolina.

現在。讓我拋開我們傳統的上門保固業務，談談我們的按需業務。我們預計今年的按需收入將超過1 億美元，這主要歸功於我們新的HVAC 計劃，正如上週我們在新聞稿中宣布的那樣，我們與抱歉摩恩的新合作夥伴關係繼續帶來了出色的成果，我們目前正在將該業務擴展到七個其他州。除加州外，Front Door 很快就會成為愛達荷州、亞利桑那州、猶他州、俄勒岡州、德克薩斯州、喬治亞州和南卡羅來納州的 mowen 智慧截止閥的獨家安裝商。

We are also making excellent progress on marketing BT C home warranties to different demographics and channels of distribution. A AR P is a great example of an alternative way to go to market by targeting different segments of their membership. We have been able to grow unit sales with AARP by 25% year over year now turning to renewals, this continues to be a great story for us retention rates in the third quarter improved 150 basis points to a record high of 77.7%.

我們在向不同人群和分銷管道行銷 BTC 家庭保固方面也取得了巨大進展。ARP 是透過針對不同會員群體來進入市場的替代方式的一個很好的例子。透過 AARP，我們的單位銷售額年增了 25%，現在轉向續訂，這對我們來說仍然是一個偉大的故事，第三季的保留率提高了 150 個基點，達到 77.7% 的歷史新高。

That is amazing.

這真是太棒了。

While channel mix shift is the primary driver, this improvement improvement is also the result of a lot of tremendous work by our team improving customer service, expanding use of preferred contractors, getting more members on auto pay and increasing member engagement throughout the customer journey.

雖然通路組合轉變是主要驅動力，但這種改進也是我們團隊在改善客戶服務、擴大首選承包商的使用、讓更多會員使用自動支付以及在整個客戶旅程中提高會員參與度方面所做的大量工作的結果。

Finally, one of the things I'm most excited about is the progress we're making on enhancing our customer experience in a major milestone. We launched an AHS app a few days ago. This is a big deal and we will make our formal public announcement on Thursday with easy convenient service right at their fingertips. Our members can now quickly access their account and plan, plan information, make and track their service requests, take advantage of special offers and manage their payment informa information all through the convenience of their phone.

最後，我最興奮的一件事是我們在增強客戶體驗方面取得的進展，這是一個重要的里程碑。幾天前，我們推出了 AHS 應用程式。這是一件大事，我們將於週四正式公開宣布，並為他們提供觸手可及的輕鬆便捷的服務。我們的會員現在可以透過手機輕鬆快速存取他們的帳戶和計劃、計劃資訊、提出和追蹤他們的服務請求、利用特別優惠並管理他們的付款資訊。

We will have additional enhancements to the app over the coming months, we believe these enhancements will further differentiate American Home Shield from the competition. We are super excited about the app and I encourage everyone listening to download the app now through Google Play or the App Store. I think you'll be impressed.

我們將在未來幾個月內對該應用程式進行更多增強，我們相信這些增強將進一步使 American Home Shield 在競爭中脫穎而出。我們對應用程式感到非常興奮，我鼓勵每位聽眾立即透過 Google Play 或 App Store 下載該應用程式。我想你會印象深刻。

So with that, I'll now turn the call over to Jessica for more on our record third quarter. Financials Jessica.

因此，我現在將把電話轉給傑西卡，以了解有關我們創紀錄的第三季的更多資訊。財務傑西卡.

Thanks Bill and Good morning everyone.

謝謝比爾，大家早安。

I want to start with a clear message to all of our stakeholders front doors. Financial position has never been stronger. We delivered another exceptional adjusted Eva to be we increased our full year outlook for the second time. This year, we are generating a record amount of cash and we remain focused on returning that cash to investors through share repurchases specific to our third quarter. Financial summary on slide 15, you will see that revenue increased 3% versus the prior year period to $540 million. Net income increased 40% to $100 million and adjusted EBITA increased 29% to $165 million.

首先，我想向所有利害關係人傳達一個明確的訊息。財務狀況從未如此強大。我們交付了另一個特殊的調整後伊娃，這是我們第二次提高了全年展望。今年，我們產生了創紀錄的現金金額，我們仍然致力於透過第三季的股票回購將現金回饋給投資者。在投影片 15 的財務摘要中，​​您將看到營收比去年同期成長 3%，達到 5.4 億美元。淨利潤成長 40%，達到 1 億美元，調整後的 EBITA 成長 29%，達到 1.65 億美元。

Let's take a moment to review our third quarter revenue which landed at $540 million versus our guided midpoint of about $537 million. This is a beat of almost 3 million.

讓我們花點時間回顧一下我們第三季的收入，該收入為 5.4 億美元，而我們的指導中位數約為 5.37 億美元。這幾乎是 300 萬的節奏。

Now on slide 16, you will see gross profit increased 14% versus the prior year period to $306 million and gross profit margin improved 550 basis points to a record 57%.

現在在投影片 16 上，您將看到毛利比去年同期成長 14%，達到 3.06 億美元，毛利率提高 550 個基點，達到創紀錄的 57%。

Let's now move to the adjusted EBITA bridge on slide 17, starting at the top, we had $17 million of favorable revenue conversion driven by a 4% increase in price over the prior year period.

現在讓我們轉向幻燈片 17 上調整後的 EBITA 橋，從頂部開始，由於價格比上年同期上漲 4%，我們獲得了 1700 萬美元的有利收入轉化。

This was partially offset by a 1% 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 nonwarranty sales.

這被成交量下降 1% 部分抵消。需要提醒的是，這包括家庭保固數量減少的影響，但非保固銷售額增加 1,100 萬美元部分抵消了這一影響。

Turning to contract claims costs which decreased $21 million.

合約索賠成本減少了 2100 萬美元。

This was primarily driven by a lower number of service requests per customer. A transition to higher trade service fees and continued process improvement initiatives.

這主要是由於每個客戶的服務請求數量減少所致。過渡到更高的貿易服務費和持續的流程改善措施。

Let's now take a moment to unpack each of those third quarter. Customer incidence rates were some of the lowest that we have ever seen. Primarily due to three reasons. First, we had $14 million of favorable weather as cooling degree days were down 16% versus the prior year period.

現在讓我們花點時間來解開第三季的各個部分。客戶發生率是我們見過的最低的。主要是由於三個原因。首先，我們迎來了價值 1,400 萬美元的有利天氣，降溫天數比去年同期下降了 16%。

Second, we have made significant process improvements over the last two years and we are now executing better than ever. We are doing a better job of getting the right contractor to the right customer at the right time which results in a better customer experience and reduces cost and noise in our system.

其次，我們在過去兩年中取得了顯著的流程改進，現在的執行效果比以往任何時候都更好。我們正在更好地在正確的時間為正確的客戶找到合適的承包商，從而帶來更好的客戶體驗並降低我們系統的成本和噪音。

Some of the process improvements include a moving more of our service requests to preferred contractors. We had a record third quarter high with 85% of our jobs going to preferred contractors. This is an outstanding result, especially given that this was in the middle of our peak summer season.

一些流程改善包括將更多的服務請求轉移給首選承包商。第三季創歷史新高，85% 的工作流向了首選承包商。這是一個出色的結果，特別是考慮到這是我們夏季高峰期的中期。

B our high cost claims review program and c leveraging our bulk purchasing power with our suppliers to optimize availability and achieve better prices.

B 我們的高成本索賠審查計劃以及 c 利用我們與供應商的大量購買力來優化可用性並實現更優惠的價格。

And the third reason our incidence rate is down is the transition to higher trade service fees which has resulted in a temporary and expected 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.

我們的發生率下降的第三個原因是向更高的貿易服務費過渡，這導致每個客戶的服務請求數量暫時且預期下降。正如我們通常看到的，客戶行為會發生短期變化，直到他們習慣新的金額。

The increase in trade service fees is also driving a lower net cost per service request in 2024.

貿易服務費的增加也將導致 2024 年每次服務請求的淨成本下降。

As you may recall, our service fees are a contra cost to claims expense. On our income statement. When combined with a normalized inflationary environment, front doors. Third quarter, inflation rate was essentially flat again. This is on a net cost per service request basis. As the increase in trade service fee dollars mostly offset external inflation.

您可能還記得，我們​​的服務費是索賠費用的相反成本。在我們的損益表上。當與正常化的通貨膨脹環境結合時，前門。第三季度，通膨率再次基本持平。這是基於每個服務請求的淨成本。由於貿易服務費的增加大部分抵消了外部通膨。

In summary adjusted ebita increased to $165 million which exceeded the midpoint of our outlook by $30 million.

總之，調整後的息稅前利潤增至 1.65 億美元，比我們預期的中位數高出 3,000 萬美元。

The difference is primarily driven by over $10 million of favorable weather. Approximately $10 million of lower SG and a due to timing $3 million of favorable claims cost development and better than expected benefits from process improvements.

造成這種差異的主要原因是超過 1000 萬美元的有利天氣。大約 1000 萬美元的較低 SG 以及由於時間安排而產生的 300 萬美元的有利索賠成本開發以及流程改進帶來的優於預期的效益。

Let's now turn to slide 18 for a review of our statement of cash flows with strong earnings comes strong cash flows, net cash provided from operating activities with a record $212 million for the nine months ended September 30th as a result of our exceptionally strong earnings and was primarily comprised of $281 million in earnings adjusted for non cash charges and $66 million in cash used for working capital.

現在讓我們轉向幻燈片18，回顧我們的現金流量表，盈利強勁。我們異常強勁的獲利和主要包括根據非現金費用調整後的 2.81 億美元收益和用於營運資本的 6,600 萬美元現金。

Net, cash used for investing activities was $31 million and was primarily comprised of capital expenditures related to investments in technology.

用於投資活動的現金淨額為 3,100 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 $131 million and was comprised of $119 million of share purchases as well as $13 million of scheduled debt payments.

網。用於融資活動的現金為 1.31 億美元，其中包括 1.19 億美元的股票購買以及 1,300 萬美元的預定債務支付。

Free cash flow increased 56% to a record $181 million for the nine months ended September 30th.

截至 9 月 30 日的 9 個月，自由現金流成長 56%，達到創紀錄的 1.81 億美元。

We ended the quarter with $375 million in cash. This was comprised of $161 million of restricted cash and $214 million of unrestricted cash and we remain focused on using our cash to buy back shares. For example, we are extremely pleased that we were able to complete the three year $400 million share repurchase program before it expired in early September.

本季結束時，我們擁有 3.75 億美元現金。其中包括 1.61 億美元的限制性現金和 2.14 億美元的非限制性現金，我們仍專注於使用現金回購股票。例如，我們非常高興能夠在 9 月初到期之前完成為期三年、價值 4 億美元的股票回購計畫。

This is especially impressive since we paused share repurchases for almost a year in 2022.

自 2022 年我們暫停股票回購近一年以來，這一點尤其令人印象深刻。

As a reminder, last quarter, we announced our new three year $650 million share repurchase authorization that started on September 4th.

提醒一下，上個季度，我們宣布了新的三年期 6.5 億美元股票回購授權，該授權於 9 月 4 日開始。

This amount is 63% higher than our previous three year authorization.

這筆金額比我們之前三年的授權高出 63%。

Now, let's turn to our outlook on slide 19 given that there is less than two months remaining in the year. And that the fourth quarter is typically our lowest volume quarter. We are moving our outlook to point estimates versus providing ranges.

現在，鑑於今年還剩下不到兩個月的時間，讓我們轉向幻燈片 19 中的展望。第四季通常是我們銷量最低的季度。我們將我們的展望轉向點估計而不是提供範圍。

While this is a departure from our standard practice for this quarter, we felt that this would help our investors better understand our estimates for the remainder of the year.

雖然這與我們本季的標準做法不同，但我們認為這將有助於我們的投資者更好地了解我們對今年剩餘時間的估計。

Now, for the fourth quarter, we expect our revenue to be approximately $367 million which reflects a low single digit increase in our renewal channel. A decline of approximately 10% in our real estate channel driven by volume.

現在，我們預計第四季度的營收約為 3.67 億美元，這反映了我們續訂管道的低個位數成長。由於成交量的推動，我們的房地產通路下降了約 10%。

A decline of approximately 20% in our D to C channel. Primarily due to our discounting strategy and an approximately $5 million increase in other revenue for the fourth quarter adjusted EBIDA is expected to come in at approximately 36 million.

我們的 D 至 C 通路下降了約 20%。主要由於我們的折扣策略以及第四季度其他收入增加約 500 萬美元，調整後的 EBIDA 預計將達到約 3,600 萬美元。

Let's now move to our full year outlook starting with revenue.

現在讓我們從收入開始展望全年展望。

We are increasing our revenue outlook to approximately $1.83 billion or a 3% increase which includes a mid single digit increase in realized price, partially offset by a mid single digit decline in realized volume.

我們將營收預期提高至約 18.3 億美元，即成長 3%，其中包括實現價格中個位數的成長，部分被實現數量中個位數的下降所抵消。

This assumes a mid single digit increase in the renewal channel.

這假設續訂管道出現中個位數成長。

A roughly 15% decline in the real estate and D to C channels.

房地產和 D to C 通路下降了約 15%。

It also assumes other revenue which includes on demand will increase 40% to approximately $110 million.

它還假設包括點播在內的其他收入將成長 40%，達到約 1.1 億美元。

The growth over the prior year is almost entirely driven by higher new HVAC sales, which is trending towards $85 million in 2024.

上一年的成長幾乎完全是由新 HVAC 銷售額的增加所推動的，預計 2024 年銷售額將達到 8,500 萬美元。

One, brief note of caution here.

一，這裡簡單說明一下。

Our guide includes only a minor amount of revenue from Moen in 2024. It's still early. And while we are very excited about where this relationship can go, we will provide more details at our investor day.

我們的指南僅包含摩恩 2024 年的一小部分收入。現在還早。雖然我們對這種關係的發展方向感到非常興奮，但我們將在投資者日提供更多詳細資訊。

From a customer count perspective, we still expect the number of total home warranties to decline approximately 4% in 2024.

從客戶數量角度來看，我們仍預計 2024 年房屋保固總數將下降約 4%。

As I close my comments on the revenue outlook and bridge to our growth margin guide. I want to provide some additional context on our pricing strategy.

當我結束對收入前景的評論並過渡到我們的成長利潤指南時。我想提供一些有關我們定價策略的額外背景資訊。

We significantly raised prices in 2022 in response to the highly inflationary environment and the dramatic increase in external costs to service our customers.

為了因應高通膨環境和服務客戶的外部成本急劇增加，我們在 2022 年大幅提高了價格。

We were not only pricing for inflation experienced in 2022 but also for expected inflation in 2023. Since then, inflation has come in much lower than expected. But because of our model, it has taken nearly two years for those price increases to run their course. Because of that, we have now initiated a new mid single digit price increase that will slightly benefit the fourth quarter and carry over into 2025.

我們不僅對 2022 年的通膨進行定價，還對 2023 年的預期通膨進行定價。自那時以來，通貨膨脹率遠低於預期。但由於我們的模式，這些價格上漲花了近兩年的時間才結束。因此，我們現在啟動了新的中個位數漲價，這將使第四季度略有受益，並延續到 2025 年。

Now moving to gross profit where we are raising our full year margin outlook to be approximately 53% which would be a new record for our business. However, it does incorporate several favorable items. We have taken a lot of price. We have had a lot of favorable weather and our system has not been stressed with high levels of claims.

現在轉向毛利，我們將全年利潤率預期提高至約 53%，這將是我們業務的新紀錄。然而，它確實包含了一些有利的項目。我們已經拿了很多價格了。我們經歷了許多有利的天氣，我們的系統並未因高額索賠而受到壓力。

Now let's turn to our full year SG&A outlook which we expect to be about $605 million based on all of these inputs. We are increasing our full year adjusted EBITA guide to be approximately $430 million.

現在讓我們轉向全年 SG&A 展望，根據所有這些投入，我們預計該展望約為 6.05 億美元。我們將全年調整後 EBITA 指南增加至約 4.3 億美元。

Our full year outlook also includes $19 million of interest income and reflects stock compensation expense of approximately $27 million. And finally, we expect our full year capital expenditures to be approximately $40 million and the annual effective tax rate to be approximately 25%.

我們的全年展望還包括 1,900 萬美元的利息收入，並反映了約 2,700 萬美元的股票補償費用。最後，我們預計全年資本支出約為 4,000 萬美元，年度有效稅率約為 25%。

In summary, Front door's financial position has never been stronger. We are generating record earnings, record cash flows and we are on target to buy back a record amount of shares.

總而言之，Front Door 的財務狀況從未如此強大。我們正在創造創紀錄的盈利、創紀錄的現金流，而我們的目標是回購創紀錄數量的股票。

We are making the investments to grow this business and we are doing so from a position of strength and I am extremely excited to see how those investments will drive future growth.

我們正在進行投資來發展這項業務，我們是在實力雄厚的情況下這樣做的，我非常高興看到這些投資將如何推動未來的成長。

Finally, before we take your questions, I'm sure our plan for 2025 is top of mind for you, but we're not quite ready to discuss that plan today.

最後，在我們回答您的問題之前，我確信您最關心的是我們 2025 年的計劃，但我們今天還沒有準備好討論該計劃。

The acquisition of 210 is still pending and we want to make sure we account for that before we finalize our plan for 2025 and beyond, we will be ready to present all of those details to you at Investor Day.

210 的收購仍懸而未決，我們希望確保在最終確定 2025 年及以後的計劃之前考慮到這一點，我們將準備在投資者日向您展示所有這些詳細信息。

With that. I will now turn it over to the operator to start. Q&A.

就這樣。我現在將其交給操作員開始。問答。

Thank you. At this time, we will be conducting our question and answer session.

謝謝。此時，我們將進行問答環節。

If you would like to ask a question, please press star one on your telephone keypad.

如果您想提問，請按電話鍵盤上的星號一。

A confirmation tone will indicate your line is in the question queue.

確認音將表示您的線路已在問題佇列中。

You may press star two. If you would like to remove your question from the queue and for participants using speaker equipment, it may be necessary to pick up your handset before pressing the stair keys.

您可以按星二號。如果您想從佇列中刪除您的問題，並且對於使用揚聲器裝置的參與者，可能需要在按樓梯鍵之前拿起聽筒。

One moment, please. While we poll for questions.

請稍等一下。當我們投票詢問問題時。

Thank you.

謝謝。

Our first question is coming from Cory Carpenter with JP Morgan. Your line is life.

我們的第一個問題來自摩根大通的科里·卡彭特。你的線就是生命。

Thanks and good morning Bill. I wanted to ask you about the AHS app launch. Just how do you plan on marketing and rolling that out? Any details you could provide in a bigger picture. How do you see this impacting your business over time? And then I have a follow up call for Jeff. Thank you.

謝謝，早上好，比爾。我想問您有關 AHS 應用程式發布的問題。您計劃如何行銷和推廣？您可以在更大的範圍內提供任何細節。隨著時間的推移，您認為這對您的業務有何影響？然後我給傑夫打了後續電話。謝謝。

Okay. Yeah, we, we just rolled it out. I hope you downloaded Corey. It's a, it's a member focused app. So this is really designed to appeal to our members. It's all about our user experience, it's enhancing our user experience. I mean, there's some downstream benefits that it makes our service request process more efficient. People can deal directly through the app as opposed to always having to pick up the phone. So there's a lot of benefits that come from, from the user experience. And I think it's a modern, it's a modern brand move. It also can be the catalyst for further enhancements that we will have down the road. So in terms of marketing, we will be starting by, if you will marketing it to our existing members. And then as far as broad communications, I mean, I think you'll see it in action. I don't think we'll just necessarily announce we have a new app, but it's, it's going to be part of our overall brand character or brand image. So we're, we're excited about what it can do for our members. And I think the the modernity look, it'll give us broadly will help us to drive hopefully additional members.

好的。是的，我們，我們剛剛推出了它。我希望你下載了科里。這是一個以會員為中心的應用程式。所以這確實是為了吸引我們的會員而設計的。這一切都與我們的用戶體驗有關，它正在增強我們的用戶體驗。我的意思是，它有一些下游好處，可以讓我們的服務請求流程更有效率。人們可以直接透過應用程式進行交易，而不必總是拿起電話。因此，使用者體驗帶來了許多好處。我認為這是現代的、現代的品牌舉措。它還可以成為我們未來進一步增強的催化劑。因此，在行銷方面，如果您願意向我們現有的會員進行行銷，我們將首先開始。然後就廣泛的溝通而言，我的意思是，我想你會看到它的實際效果。我認為我們不一定會宣布我們有一個新的應用程序，但它將成為我們整體品牌特徵或品牌形象的一部分。因此，我們對它能為我們的會員做的事情感到興奮。我認為現代性的外觀會為我們帶來廣泛的幫助，希望能吸引更多的成員。

Thank you. And then just, just on the, you mentioned in your prepared remarks that you're initiating a mid single digit percent price increase, I believe. Could you just expand a bit, is that across all your channels or, or certain channels that you're targeting and kind of how you expect that to roll through the P&L in 4 June next year?

謝謝。然後，就在您準備好的發言中提到，我相信您正在啟動中個位數的價格上漲。您能否稍微擴展一下，是在您的所有管道中，還是在您所定位的某些管道中，以及您預計明年 6 月 4 日的損益表將如何滾動？

Thank you, cory with No, thanks coy with our price increases. Those are really focused through the renewal channels. So hopefully that answers your question. We roll those out through the renewals book.

謝謝你，科里，不，謝謝你，科里對我們的價格上漲。這些確實是透過更新管道來集中的。希望這能回答你的問題。我們透過續訂手冊推出這些內容。

Yeah, because you know, real estate, we hold pretty constant and obviously the way the market's been, we, we aren't looking at any pricing action there. And then DTC one is a part of, you know, all the discounting stuff we talked about earlier. So, as Jessica said, think of it as through the renewals channel.

是的，因為你知道，房地產，我們保持相當穩定，顯然市場的方式，我們，我們沒有考慮那裡的任何定價行為。然後，DTC 是我們之前討論過的所有折扣內容的一部分。因此，正如傑西卡所說，將其視為透過續約管道。

Great. Thank you.

偉大的。謝謝。

Thanks Cory.

謝謝科里。

Thank you. Our next question is coming from Ian Zaffino with Oppenheimer. Your line is live.

謝謝。我們的下一個問題來自伊恩·扎菲諾和奧本海默。您的線路已上線。

Hi, great. Thank. Thank you very much. You know, I wanted to also ask on, on the pricing side and kind of how are you arriving at? You know, your price increases, I guess we're kind of facing some down demand. And just kind of trying to understand your decision, you know, balancing between, you know, price and volume. Thanks.

嗨，太好了。感謝。非常感謝。你知道，我還想問一下，在定價方面，你是如何達成的？你知道，你的價格上漲，我想我們面臨一些需求下降。只是試著理解你的決定，你知道，在價格和數量之間取得平衡。謝謝。

Yeah. No, I, you know, I think as I shared in my prepared remarks, we obviously priced for the high inflationary environment in 2022 as we're going forward, I mean, we definitely think that pricing should be more in line with what we're seeing from an inflation perspective. And I think, and, you know, we've also got our dynamic pricing strategy and capability that will be used as we roll that those pricing increases out amongst our renewal channel.

是的。不，我，你知道，我認為正如我在準備好的演講中所分享的那樣，我們顯然為2022 年的高通膨環境定價，因為我們正在前進，我的意思是，我們絕對認為定價應該更符合我們的預期。我認為，而且，你知道，我們還擁有動態定價策略和功能，當我們在續約管道中增加這些定價時，將使用這些策略和功能。

So I, and one of the things we do is we obviously monitor our, our elasticities, all the time. And, and we're fortunate as, as you heard, our retention rate continues to be quite strong in the Renewal Channel, which is, as Jessica said, is primarily where the price increases are happening in the DTC channel. We're being very aggressive on bringing in 1st year members, which is really, you know, the feeder into the, the, you know, the backbone of our business, the Renewal Book.

所以我和我們所做的一件事就是我們一直監控我們的彈性。而且，我們很幸運，正如您所聽到的，我們在續約管道中的保留率仍然相當高，正如傑西卡所說，這主要是 DTC 管道中價格上漲的地方。我們非常積極地引進第一年的會員，這實際上是我們業務的支柱，即續約書。

Okay, thanks. And then, you know, maybe talk about the launch of 00, of the A S fa sorry A ahsf sorry. You know, talk about the difference between that launch and maybe this this front door launch, you know, one of the differences there. And then is there any kind of concern of canalization in the front door product at all? Thanks.

好的，謝謝。然後，你知道，也許談論 00 的推出，A S fa A ahsf 抱歉。你知道，談談那次發射和也許這次前門發射之間的區別，你知道，這是那裡的區別之一。那麼前門產品是否有任何通路化問題？謝謝。

Yeah. No, it's an important point to note the A HS app is designed for our existing members and is focused on the home warranty business. The front door app is, is open to anyone. And it also is the catalyst for our overall on demand business. So that is so we don't see, we see them working in tandem because they are serving different markets. So we're excited to have both as a part of the overall front door inc business. And I think they, they serve two different purposes that can work in tandem.

是的。不，值得注意的是，A HS 應用程式是為我們現有會員設計的，專注於家庭保固業務。前門應用程式對任何人開放。它也是我們整體按需業務的催化劑。所以我們看不到，我們看到他們協同工作，因為他們服務不同的市場。因此，我們很高興將兩者納入前門公司整體業務的一部分。我認為它們有兩個不同的目的，可以協同工作。

Okay. Thank you very.

好的。非常感謝。

Much.

很多。

Thanks Ian.

謝謝伊恩。

Thank you. Our next question is coming from Sergio Segura. With Keyban. Your line is live.

謝謝。我們的下一個問題來自塞爾吉奧·塞古拉。與鑰匙班。您的線路已上線。

Hey, good morning. Thanks for taking the questions. Wanted to start, I guess with the real estate channel. So it looked like the customer account, there was stable and I think revenue came in slightly above where you guys previously guided. Despite existing home sales actually declining this quarter. I was wondering if that implies any improvements you're seeing in the tax rates and maybe just more broadly, we've been stuck in a seller's market, strong seller's market for some time. Now. Are there any signs that you're seeing that we're returning to a more balanced market in real estate?

嘿，早安。感謝您提出問題。想從房地產頻道開始。所以看起來客戶帳戶很穩定，我認為收入略高於你們之前指導的水平。儘管本季現房銷售實際上有所下降。我想知道這是否意味著您在稅率方面看到了任何改善，也許更廣泛地說，我們已經陷入賣方市場，強大的賣方市場一段時間了。現在。您是否看到任何跡象表明我們正在回歸一個更加平衡的房地產市場？

Yeah, I think overall, I, I think I credit, you know, as you said that the trend being better, notwithstanding it, it's still a very tough market, you know, that some of the execution that we've done, our, our sales team has done a, done an excellent job, you know, grinding really for, for every unit they can. So I don't want to get ahead of ourselves on real estate. As we said, the market continues to flounder. But there are a few elements as we talked about the the listings is now over four months worth of supply mortgage rates should continue to fall. I heard today there may be a rate cut coming very soon. We have done a good job of keeping our attach rate up. You know, relative to our, to our competition. So to your point, there are some elements that seem to be, you know, on the macro side coming our way, but we don't want to get ahead of ourselves on that. We've been kind of calling for this all along. We still believe the market's going to rebound, you know, all the real estate professional or, you know, experts worst market in 14 years and, and the like, so I think this is going to be a I, I, you know, I don't want to go all the way to, we'll talk about this more at Investor Day in February. I want, I don't want to call it a tailwind at this point, but I think things are stabilizing and we certainly hope they're going to turn up very soon.

是的，我認為總的來說，我，我認為我相信，你知道，正如你所說，趨勢更好，儘管如此，這仍然是一個非常艱難的市場，你知道，我們所做的一些執行，我們的，我們的銷售團隊做得非常出色，你知道，他們真的為每個單位努力奮鬥。所以我不想在房地產方面超前。正如我們所說，市場繼續低迷。但正如我們所討論的，有一些因素使得現在掛牌的房屋數量超過四個月，抵押貸款利率應該會繼續下降。我今天聽說可能很快就會降息。我們在保持附加率方面做得很好。你知道，相對於我們，相對於我們的競爭對手。因此，就您的觀點而言，您知道，宏觀方面的一些因素似乎正在向我們襲來，但我們不想在這方面超越自己。我們一直在呼籲這一點。我們仍然相信市場將會反彈，你知道，所有房地產專業人士，或者，你知道，專家們，這是 14 年來最糟糕的市場等等，所以我認為這將是一個我，我，你知道，我不想一直說下去，我們將在二月份的投資者日進一步討論這個問題。我想，我現在不想稱之為順風，但我認為事情正在穩定下來，我們當然希望它們很快就會出現。

Got it that's helpful and maybe a second one on the DTC channel, we saw that the customer account re accelerated there. So congrats on that. Hoping to just talk about maybe the drivers behind that. Was that more of the marketing strategy? I think you guys talked about a more targeted marketing strategy last quarter if that was driving the results or is that more of the discounting strategy? And then, you know, related to that, we saw you guys did lower the SG&A outlook with any of that marketing spend that you're lowering there and just given the success if that is so like, why pull back when you're seeing some success in that channel. Thank you.

明白了，這很有幫助，也許是 DTC 頻道上的第二個，我們看到客戶帳戶在那裡重新加速。所以恭喜你。希望只是談談背後的驅動因素。這更多的是行銷策略嗎？我想你們上個季度討論了更有針對性的行銷策略，如果這推動了結果，或者更多的是折扣策略？然後，你知道，與此相關的是，我們看到你們確實降低了 SG&A 前景，並降低了任何營銷支出，而且既然取得了成功，如果情況是這樣的話，為什麼要撤回呢？成功。謝謝。

So, I love your questions. It's, it's kind of yes, yes and yes, but let me go, let me unpack that. So, and we, and we certainly wanted to talk about, you know, our Google information since you have been very keen to point out Google trends. But look, the information we got from Google is our searches are up. Discounting has been a good thing for us. Demand and conversion are up. The campaign we believe has worked very well with the awareness numbers I cited earlier. So I think that there's, there's not one element. I think the discounting is a bit of a blunt instrument, but we feel it's been effective and especially effective in terms of the long term value of the customer. So that's, that's really what we're doing. We're taking advantage of this ability for us to generate the, the IDA growth that we have to reinvest in the, in the, in the, in the brand. And that is part of what you see in Q4 that we did. We are looking to use some of the SD and A to do some incremental marketing which is really going to impact 2025. So, so yeah, I think your, your instincts are right. It is across the board and we love the trend and hopefully it'll continue.

所以，我喜歡你的問題。是的，是的，是的，是的，但是讓我走，讓我解開它。所以，我們，我們當然想談談，你知道，我們的谷歌訊息，因為你一直非常熱衷於指出谷歌趨勢。但是看，我們從谷歌得到的資訊是我們的搜尋量上升了。折扣對我們來說是件好事。需求和轉換率上升。我們認為，根據我之前引用的認知數字，該活動效果非常好。所以我認為沒有一個元素。我認為折扣有點生硬，但我們認為它是有效的，而且對於客戶的長期價值尤其有效。這就是我們正在做的事情。我們正在利用這種能力來產生 IDA 成長，我們必須將其重新投資於品牌。這是我們在第四季度所做的工作的一部分。我們希望利用一些 SD 和 A 來進行一些增量行銷，這確實會對 2025 年產生影響。所以，是的，我認為你的直覺是對的。這是全面的，我們喜歡這種趨勢，並希望它能持續下去。

Great. There you.

偉大的。就你了。

Go.

去。

Thank you. Our next question is coming from Jeff Schmitt with William Blair. Your line is life.

謝謝。我們的下一個問題來自傑夫·施密特和威廉·布萊爾。你的線就是生命。

Hi, good morning.

嗨，早安。

Question on the direct channel. How much of an impact do you think your promotional strategy will have on retention rates there when prices step up for those customers? You know, I think you mentioned last quarter that, you know, that you think they'll hold up well, but is there anything new you learned there anymore that you could add on on, on how much of an impact that will have?

關於直接頻道的問題。當價格上漲時，您認為您的促銷策略會對這些客戶的保留率產生多大影響？你知道，我想你在上個季度提到過，你知道，你認為它們會保持良好的狀態，但是你在那裡學到了什麼新東西可以補充，這會產生多大的影響？

Yeah, so we, you know, we started the deep discounting in March of last year. So we've been tracking very closely that cohort as we go forward. Fortunately, we have seen that as we, as we start to renew when you're out, et cetera that the that the retention that, you know, renewals are, are holding that the cancel rate is not outsized relative to any anybody else. I think we'll touch on this more at Investor Day, but it's the right question to ask that. How does it impact one year later? And so far, we, we've been pleased with, with the effort on the on the 1st year renewal after the 50% off.

是的，所以我們，你知道，我們從去年三月開始大幅折扣。因此，在我們前進的過程中，我們一直在密切跟踪這一群體。幸運的是，我們已經看到，當我們在您外出時開始續訂時，等等，您知道，續訂的保留率保持著取消率相對於其他任何人來說並不算大。我想我們會在投資者日更多地討論這個問題，但這是正確的問題。一年後有何影響？到目前為止，我們對 50% 折扣後第一年續約的努力感到滿意。

Okay.

好的。

And then how is the attachment rate in the real estate channel trending? Like where is it at today versus you know, last few quarters or even last few years? And do you have any concerns, I guess with mortgage rates, you know, sort of moving back up. They, they were heading towards six now they're, you know, going, going north. So, any, any thoughts on, if that will have an impact here?

那麼房地產通路的附著率趨勢如何？就像你知道的，過去幾個季度甚至過去幾年，今天的情況如何？我猜你對抵押貸款利率的回升有任何擔憂嗎？他們，他們正朝著六點前進，現在他們，你知道，正在向北前進。那麼，有什麼想法嗎？

Yeah. Let me take the first part and this, and then separate that from the second part of the, the attach rate has fallen for the industry, you know, home warranties where it used to be pretty, pretty steady at around 30% or high 20s. It's now in the 10s. What the point we're making earlier was as that has happened, we have maintained our share of of, you know, our, our fair share in terms of, you know, attachment rate, but the attachment rate has fallen and that is a concern for the industry in terms of, you know, mortgage rates and the like, I don't think it'll have any different effect than just hopefully it'll start to raise the overall market. But you know, people will see that as mortgage rates are falling. I mean, people are going to want to buy a new house, they're going to sell their old house, they want to take the equity that they have in there. So, so we see a lot of the should be natural reasons why the market will improve. But I don't think the interest rates are going to have much of an impact on, on attachment rate. I don't know, just because you have a different No.

是的。讓我把第一部分和這個分開，然後將其與第二部分分開，該行業的附加率已經下降，你知道，房屋保固曾經相當穩定在 30% 左右或高達 20 多歲。現在已經是10幾歲了。我們之前提出的觀點是，當這種情況發生時，我們在依戀率方面保持了我們的公平份額，但依戀率已經下降，這是一個對於該行業在抵押貸款利率等方面的擔憂，我認為這不會產生任何不同的效果，只是希望它會開始提高整個市場的水平。但你知道，隨著抵押貸款利率下降，人們會看到這一點。我的意思是，人們想要購買新房子，他們想要賣掉舊房子，他們想要拿走他們擁有的房產。因此，我們看到了市場將會改善的許多理應是自然的原因。但我認為利率不會對附加率產生太大影響。我不知道，只是因為你有不同的號碼。

I think III, I agree. I think the one thing with the mortgage rates right now just as we're seeing kind of interest rates, but we see them flowing but, you know, just in recent times they're popping back up a little bit. So it'll be, we'll be cautiously optimist on that front.

我想III，我同意。我認為現在抵押貸款利率的一件事就像我們看到的利率一樣，但我們看到它們在流動，但你知道，就在最近，它們又略有回升。因此，我們將在這方面持謹慎樂觀態度。

Okay, great. Thank you.

好的，太好了。謝謝。

Jessica. Thanks, Jess.

傑西卡.謝謝，傑西。

Thank you. Our next question is coming from Eric Sheridan with Goldman Sachs. Your line is on.

謝謝。我們的下一個問題來自高盛的艾瑞克·謝裡丹。你的線路已接通。

Thanks so much for taking the question. Maybe two. If I could just first broadly on the competitive landscape, you know, I think we talked a lot so far on the call on the demand landscape, you find yourself in, in both sides of the business. But how are you finding the competitive landscape? And where are there pockets where maybe competition is either more elevated or less elevated than maybe you anticipated when you think about the beginning of this year and how sort of 2024 laid out? And then I know we're going to get an update more broadly on the 210 acquisition at the analyst day. But any key learnings about the elements of accelerating growth in organically in the business through acquisition versus building and scaling products yourself that maybe are some of the key takeaways from 2024 that might involve inform elements of strategy into 2025 and beyond. Thanks so much.

非常感謝您提出問題。也許是兩個。如果我能先廣泛地討論競爭格局，你知道，我認為到目前為止我們在需求格局的電話會議上討論了很多，你會發現自己處於業務的雙方。但你要如何找到競爭格局？當您考慮今年年初以及 2024 年的佈局時，哪些地方的競爭可能比您預期的更加激烈或不那麼激烈？然後我知道我們將在分析師日獲得有關 210 收購的更廣泛的更新。但是，任何有關透過收購與自行建立和擴展產品來加速業務有機成長的要素的關鍵知識，可能是 2024 年的一些關鍵收穫，可能涉及到 2025 年及以後的策略要素。非常感謝。

Yeah, I'll take the first one if you want to take the second one, Jessica in terms of competition. You know, there, there are a number of our direct competitors are private companies, so we don't have a lot of information except what we can hear in the marketplace. There are a couple of, you know, public, generally it's a division of a public company. They have obviously seen our aggressive discounting and they have responded in that. I think we've been effective in that regard. So there isn't any any product enhancements or, or anything of note, I think a number of competitors are focused on the real estate business. You know, our DTC business is a higher share for us than a it is in real estate even though we're number one in both. So I think competitively, we feel like we're in, we're in, we're in good shape on that.

是的，如果你想選第二個，我就選第一個，潔西卡，就競爭而言。你知道，我們有很多直接競爭對手是私人公司，所以除了我們在市場上聽到的信息外，我們沒有太多資訊。你知道，有幾個是公開的，通常是上市公司的一個部門。他們顯然看到了我們激進的折扣，並做出了回應。我認為我們在這方面一直是有效的。因此，沒有任何產品增強或任何值得注意的事情，我認為許多競爭對手都專注於房地產業務。您知道，我們的 DTC 業務所佔份額高於房地產業務，儘管我們在這兩個領域都排名第一。所以我認為從競爭角度來說，我們感覺我們處於有利地位，我們處於有利地位，我們在這方面處於良好狀態。

Yeah.

是的。

Just from an M&A landscape you, you hit it, Eric, we are still very, very focused on 210 and what we can learn from that, I think going forward as we think about capital allocation, I always want to think about healthy in organic growth and how that balances with, you know, our focus on, on, on, on organic growth. And we're going to continue to evaluate that going forward. I think the one thing just in terms of our deal strategy, we're still looking at, you know, what's out there in the market and we'd be very focused on things that are going to grow, revenue, grow customers and grow. Ebida.

從併購的角度來看，你，你成功了，埃里克，我們仍然非常非常關注 210，我們可以從中學到什麼，我認為，在我們考慮資本配置時，我總是想考慮有機的健康增長以及如何與我們對有機成長的關注相平衡。我們將繼續評估未來的情況。我認為就我們的交易策略而言，我們仍在關注市場上的情況，我們將非常關注那些會成長的事物，包括收入、客戶成長和成長。艾比達。

Yeah, just to be clear, Eric you know, we have a lot to absorb with the integration of 210. So there's nothing on the horizon that I would say from an acquisition perspective. I mean, we can always keep that open. We are very committed to buying back shares with with our excess cash. So it's not that we won't look at that at some point down the road. But right now, absorbing 210 is going to take a lot. It's a heavy lift for us. We're excited about what it can do. We'll talk more about it in February, but, you know, in terms of where we're going, that that's going to be our focus for the immediate future.

是的，需要澄清的是，Eric，你知道，我們在 210 的整合方面有很多東西需要吸收。因此，從收購的角度來看，我不會說任何事。我的意思是，我們可以始終保持開放。我們非常致力於用多餘的現金回購股票。所以我們並不是不會在未來的某個時候考慮這個問題。但現在，吸收210需要很多時間。這對我們來說是一個沉重的負擔。我們對它的功能感到興奮。我們將在二月更多地討論它，但是，你知道，就我們的發展方向而言，這將是我們近期的重點。

Thanks so much.

非常感謝。

Thanks, Eric.

謝謝，埃里克。

Thank you. Our final question today is coming from Mark Hughes with Trust Securities. Your line is life.

謝謝。我們今天的最後一個問題來自信託證券公司的馬克休斯。你的線就是生命。

Yeah. Thank you. Good morning.

是的。謝謝。早安.

Hey Mark.

嘿馬克。

Good morning on the HV AC sales you've done really well. Ramping that up is, there's still potential for that to be a kind of outsized contributed to growth, rolling it out to different regions, different contractors. What, what are the dynamics there?

早上好，您在 HV AC 銷售方面做得非常好。加大力度，仍然有可能對成長做出某種巨大的貢獻，將其推廣到不同的地區、不同的承包商。什麼，那裡有什麼動態？

Yeah, I think you nailed it. What we're doing with our contract relations team, they're, they're rolling out. You know, market by market. It is a, it is a sale that you have to get the contractors on board and the contractors want to be on board because the economics that they can get from this and it's, you know, we've talked about this, you know, in the past it's a great value proposition. We give it a consumer a break. I'm a new customer of HVAC. Just installed my new, my new HVAC last week. So I can't, I can't talk about fourth quarter, I guess, Matt, but, you know, well, that'll, that'll be part of the part of the numbers.

是的，我想你已經成功了。我們與合約關係團隊正在做的事情，他們正在推出。你知道，逐個市場。這是一次銷售，你必須讓承包商加入，承包商希望加入，因為他們可以從中獲得經濟效益，你知道，我們已經討論過這個，你知道，在過去，這是一個很好的價值主張。我們讓消費者休息一下。我是 HVAC 的新客戶。上週剛安裝了我的新暖通空調。所以我不能，我不能談論第四季度，我猜，馬特，但是，你知道，好吧，這將是數字的一部分。

But no, what, what we're doing is, you know, we were in Kansas City a couple of weeks ago, we're, we're going market by market enhancing the overall piece. We have stronger markets. And I think what we can talk about is, is kind of a full potential analysis when we get to February. But, but we think that there's a lot of, a lot of blue sky out there for HVAC and then with regard to MO and we haven't said, you know, JSIC, I put the note of caution out there. You heard me say that we're expanding seven more states. We'll have more to say about it in February. But, but we think that's on a nice build and they're a great partner and we love working with them.

但不，我們正在做的是，你知道，幾週前我們在堪薩斯城，我們正在逐個市場地增強整體產品。我們有更強大的市場。我認為我們可以討論的是，到了二月時，我們會進行全面的潛力分析。但是，但我們認為 HVAC 領域有很多很多藍天，然後就 MO 而言，我們沒有說，你知道，JSIC，我在那裡提出了警告。你聽到我說我們正在擴大另外七個州。我們將在二月對此進行更多討論。但是，但我們認為這是一個很好的構建，他們是一個很好的合作夥伴，我們喜歡與他們合作。

Do you think the Ming can that be material in 2025?

你認為明朝到 2025 年會變得重要嗎？

This materiality is a few points at least.

這種重要性至少有幾點。

Well, that's a great tee up with our Investor Day, February 27th in New York City that we'll talk about it more. I don't want to jump ahead just now because we're still in the middle. We, we haven't even rolled out to those additional states yet.

嗯，這是我們 2 月 27 日在紐約舉行的投資者日的一個很好的聚會，我們將對此進行更多討論。我現在不想跳到前面，因為我們還處於中間。我們，我們甚至還沒有推廣到這些額外的州。

I think the point is though, Mark, you hit it right. Like New HVAC, we've learned a lot from it. It's been a great growth opportunity for us And I think that's going to give us a lot of good learnings as we think about expanding into two other capabilities as well.

我認為重點是，馬克，你說對了。就像新暖通空調一樣，我們從中學到了很多。這對我們來說是一個巨大的成長機會，我認為當我們考慮擴展到其他兩個功能時，這將為我們提供許多好的學習機會。

If I might ask one more, Jessica, you talked about the trade service fees, sort of dampen claims frequency until the consumer gets used to it.

如果我可以再問一個問題，傑西卡，您談到了貿易服務費，這在某種程度上降低了索賠頻率，直到消費者習慣為止。

The u usual timing of that, you know, that that process and I think you had mentioned that was maybe something that would impact the fourth quarter as well. Is that, is that fair? How long does that?

你知道，這個過程的通常時間安排，我想你已經提到過，這可能也會影響第四季。這樣，這樣公平嗎？那要多久？

I think? I mean, I think the way I think about it, you have to think about it is it's, we roll those out very similar to a pricing increase. So it's, you know, it's a contract item on our claims costs, but we launched that on the back half of 2022. And the process takes, you know, 1224 months to roll out. They're exactly like pricing. So as we think about pricing kind of reaching its run in Q4 tsfs are doing the same thing. And then just from a behavior perspective, it takes, typically we look at maybe a year or so for people to just get hired to that trade service fee and, and start calling in for repairs again.

我認為？我的意思是，我認為我思考這個問題的方式，你必須考慮它，我們推出這些與漲價非常相似。所以，你知道，這是我們索賠費用的合約項目，但我們是在 2022 年下半年推出的。你知道，這個過程需要 1224 個月才能推出。它們就像定價一樣。因此，當我們考慮到第四季度的定價時，tsfs 也在做同樣的事情。然後，僅從行為角度來看，通常我們需要一年左右的時間，人們才能被雇用以支付該貿易服務費，並開始再次要求維修。

So, is that fair to say that you, you've kind of that because it's run its course?

那麼，可以公平地說，你之所以這樣，是因為一切都已成定局嗎？

Yes, it's run its course. It's exactly exactly what I'm saying.

是的，它已經完成了它的進程。這正是我所說的。

Yeah. Okay. All right. Thank.

是的。好的。好的。感謝。

You.

你。

Thanks Mark.

謝謝馬克。

Thank you so much. We have reached the end of our question and answer session. So I will now turn the call over to Mr Bill Cobb for his closing remarks.

太感謝了。我們的問答環節已經結束。現在我將把電話轉給比爾·科布先生作結束語。

Thank you very much. Before we sign off, I want to reiterate some final points as you heard me say last quarter and it's worth repeating here. Our strategy and plan is about near term realism and long term optimism. While macroeconomic factors continue to challenge member growth for all home warranty providers, we remain very bullish about this category and especially our strategy to continue driving awareness and consideration.

非常感謝。在我們結束之前，我想重申一些最後的觀點，正如您在上個季度聽到我所說的那樣，值得在這裡重複。我們的策略和計劃是近期現實主義和長期樂觀主義。雖然宏觀經濟因素繼續挑戰所有家庭保固提供者的會員成長，但我們仍然非常看好這個類別，尤其是我們繼續提高意識和考慮的策略。

There are millions of untapped homeowners who could benefit from a home warranty as well as our on demand offerings like the new HVAC program that said, I'd like you to reflect on what's been accomplished over the past two years. We have focused on customer growth and we're seeing positive momentum on our campaign and the relaunch of the American Home Shield brand. These efforts are working and as I mentioned earlier, we now expect our annual DTC customer count to be in line with last year.

有數百萬尚未開發的房主可以受益於家庭保固以及我們的按需產品，例如新的 HVAC 計劃，該計劃說，我希望您反思過去兩年所取得的成就。我們一直專注於客戶成長，我們看到了我們的行銷活動和 American Home Shield 品牌重新推出的積極勢頭。這些努力正在發揮作用，正如我之前提到的，我們現在預計我們的年度 DTC 客戶數量將與去年持平。

We've also explored strategic M&A to accelerate our growth and the acquisition of 210 that's proceeding on track to close in Q4.

我們還探索了策略併購以加速我們的成長，並收購了 210，該收購預計將在第四季度完成。

We have enhanced our margins. We continue to drive high customer attention rates with the third quarter, setting a record at 77.7%.

我們提高了利潤率。第三季我們持續保持較高的客戶關注率，創下 77.7% 的紀錄。

We've expanded our on demand business. It's doing very well through HVAC sales as well as our growing partnerships with Moen and others.

我們擴大了按需業務。透過暖通空調銷售以及我們與摩恩和其他公司不斷發展的合作夥伴關係，它的表現非常好。

And finally, we continue to return excess cash to shareholders through share buybacks and with our new $650 million share repurchase authorization, we remain committed to continuing share repurchases so you can see a lot has been accomplished. We've done what we said we would do on that note. I hope these facts and the results of another absolutely amazing quarter of financial performance are giving you good reason to believe in front door for the long term. Thank you and I look forward to seeing all of you in New York on February 27th for our investor day. Thanks again.

最後，我們繼續透過股票回購向股東返還多餘的現金，並透過新的 6.5 億美元股票回購授權，我們仍然致力於繼續股票回購，因此您可以看到我們已經取得了很多成就。我們已經做了我們在該說明中所說的事情。我希望這些事實和另一個絕對令人驚嘆的季度財務業績的結果能夠讓您有充分的理由長期相信前門。謝謝大家，我期待 2 月 27 日在紐約舉行的投資者日與大家見面。再次感謝。

Thank you, ladies and gentlemen. This concludes today's conference and you may disconnect at this time and we thank you for your participation.

謝謝你們，女士們、先生們。今天的會議到此結束，此時您可能會斷開連接，我們感謝您的參與。