(MT Newswires) -- Frondoor CEO Bill Cobb notes that rates may remain high for longer than the market had initially expected, impacting Frondoor's sales. Last year, the company sold around 20% fewer property guarantees due to the slowdown in the property market.
Despite these challenges, Frondoor managed to renew 76% of its contracts, a record for the company. The direct-to-consumer business, which suffered a major blow last year, will be relaunched in April with an overhaul of the American Home Shield brand, including a new website, logo and celebrity advertising campaign.
In a challenging property market, Frondoor aims to slightly outperform thanks to its property team. Financially, the company saw revenue growth of 7% and a 62% increase in adjusted EBITDA last year. Price increases were necessary to offset increased labour and supply chain costs, which benefited the company's margins.
Frontdoor, Inc. is a provider of home warranties in the United States. The Companyâs customizable home warranties help customers protect and maintain their homes, typically their assets, from costly and unplanned breakdowns of essential home systems and appliances. The Company operates under the brands American Home Shield, HSA, OneGuard and Landmark Home Warranty. Its annual service subscribe plan covers the repair or replacement of major components of more than 20 home systems and appliances, including electrical, plumbing, heating, ventilation, and air conditioning (HVAC) systems, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as optional coverages for electronics, pools, spas, and pumps. Its operations also include its Streem, a technology platform that uses augmented reality, computer vision and machine learning to, among other things, help home service professionals more quickly and accurately diagnose breakdowns and complete repairs.