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Frontdoor, Inc. (FTDR) operates in the home warranty and home services industry, primarily serving customers in the United States. The company provides home warranty services that cover repair and replacement costs for home systems and appliances, such as HVAC systems, plumbing, and electrical systems. Additionally, it offers non-warranty home services and leverages technology to enhance customer experience and operational efficiency.
- Renewals - Generates revenue from renewing existing home warranty contracts, which represent the largest share of the company's business.
- Direct-to-Consumer (DTC) - Sells first-year home warranty contracts directly to consumers, targeting homeowners outside of real estate transactions.
- Real Estate - Offers first-year home warranty contracts sold through real estate transactions, catering to homebuyers and sellers.
- Other Services - Includes on-demand home services, such as HVAC sales and installations, as well as partnerships for smart home product installations.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
William C. Cobb ExecutiveBoard | CEO and Chairman of the Board | Board Member at Deluxe Corporation | William C. Cobb has been CEO since June 2022 and Chairman since October 2018. He has extensive leadership experience in technology and online-focused businesses, including as former CEO of H&R Block and executive at eBay. | |
Evan Iverson Executive | Senior Vice President and Chief Operating Officer | None | Evan Iverson has been COO since January 2024. He has expertise in operations, contractor engagement, and technology integration, with prior roles at Amazon and McKinsey & Company. | |
Jeffrey A. Fiarman Executive | Senior Vice President, Chief Legal Officer, and Secretary | None | Jeffrey A. Fiarman has been Chief Legal Officer since at least December 2022. No additional roles or achievements are detailed in the documents. | |
Jessica P. Ross Executive | Senior Vice President and CFO | None | Jessica P. Ross is the CFO of Frontdoor, with no additional roles or achievements detailed in the documents. | |
Anna C. Catalano Board | Director, Chair of Compensation Committee | Board Member at Ecovyst, Inc. and HF Sinclair Corporation | Anna C. Catalano has been a director since September 2018. She has extensive experience in marketing, governance, and executive compensation, with prior leadership roles at BP and Amoco. | |
Balakrishnan A. Ganesh Board | Director | Chief Technology Officer at OnTrac Logistics | Balakrishnan A. Ganesh has been a director since July 2023. He has expertise in digital transformation, cybersecurity, and product development, with prior leadership roles at UPS and AKF Consulting. | |
Brian P. McAndrews Board | Lead Director, Chair of Nominating and Corporate Governance Committee | Board Member at The New York Times Company and Xero Limited | Brian P. McAndrews has been a director since October 2018 and Lead Director since June 2022. He has extensive experience in media and technology, including as former CEO of Pandora Media. | |
Christopher L. Clipper Board | Director, Chair of Audit Committee | CFO at David Yurman Enterprises, LLC | Christopher L. Clipper has been a director since October 2021. He has extensive financial expertise, with prior leadership roles at Ralph Lauren, Nike, and Time Warner. | |
D. Steve Boland Board | Director | Chief Administrative Officer at Bank of America Corporation | D. Steve Boland has been a director since October 2021. He is also the Chief Administrative Officer at Bank of America, with expertise in financial services and governance. | |
Liane J. Pelletier Board | Director, Member of Audit and Compensation Committees | Board Member at Expeditors International and ATN International | Liane J. Pelletier has been a director since September 2018. She has expertise in cybersecurity, governance, and business transformation, with prior leadership roles at Alaska Communications and Sprint. | |
Peter L. Cella Board | Director, Member of Audit and Compensation Committees | Board Member at Saudi Aramco, Critica Infrastructure, and Inter Pipeline Ltd. | Peter L. Cella has been a director since October 2018. He is a former CEO of Chevron Phillips Chemical Company and has extensive experience in the chemicals and energy sectors. |
- Given that your improved margins are partly due to favorable weather reducing claims, how sustainable are these margin levels, and what steps are you taking to mitigate potential risks if claims incidence returns to normal?
- With aggressive discounting in the direct-to-consumer channel driving customer growth, how do you balance the short-term benefits of this strategy with potential long-term impacts on profitability and customer retention when prices increase?
- Considering the attachment rate in the real estate channel has declined to the teens and first-year customer count is down significantly over the past five years, what specific strategies are you implementing to reverse this trend and stimulate growth in this segment?
- As you integrate the 2-10 acquisition, how are you ensuring that this doesn't distract from your core business operations, and what measures are in place to manage potential integration risks and achieve the anticipated synergies?
- With the launch of both the AHS app for existing members and the Frontdoor app for the broader market, how are you ensuring a cohesive user experience and avoiding customer confusion or cannibalization between your different digital platforms?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
2-10 Home Buyers Warranty | 2024 | Frontdoor, Inc. acquired 2-10 Home Buyers Warranty for $585 million in an all‐cash, debt‐financed deal that closed on December 19, 2024 after regulatory approvals from several states. The acquisition is strategically aimed at boosting Frontdoor’s customer base, diversifying its product portfolio, and enabling cross-selling of home warranties and on-demand services. |
On-Demand Technology Assets | 2020 | In the second quarter of 2020, Frontdoor completed a cash acquisition for $5 million aimed at expanding its on-demand offering via its technology platform, with the purchase price primarily allocated to developed technology and intangible assets. The purchase price allocation was finalized in the third quarter of 2020, confirming the strategic focus on enhancing its digital service capabilities. |
Streem | 2019 | The acquisition of Streem in 2019 was executed to modernize Frontdoor’s service model through virtual diagnostics, allowing for faster issue resolution via video and image capture technology. This move not only improved operational efficiency and customer experience but also positioned Streem’s technology for revenue opportunities and potential licensing deals. |