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Frontdoor Frontdoor Announces Third - Quarter 2021 Revenue Increase of 7 Percent to $ 471 Million Gross Margin of 54 Percent Highest in Over 15 years ; Net Income of $ 76 Million Adjusted EBITDA of $ 122 Million Acquired $ 25 Million in Stock Under New Share Repurchase Program MEMPHIS , TENN . - October 28 , 2021- Frontdoor , Inc. ( NASDAQ : FTDR ) , the nation's leading provider of home service plans , today announced third - quarter 2021 results . Financial Results $ millions ( except as noted ) Revenue Gross Profit Net Income Diluted Earnings per Share Adjusted Net Income ( ¹ ) Adjusted Diluted Earnings per Share ( ¹ ) Adjusted EBITDA ( 1 ) Home Service Plans ( number in millions ) ● ● Updated Full - Year 2021 Outlook ● 2021 ● 471 254 76 0.89 78 0.91 Revenue range updated to $ 1.59 billion to $ 1.60 billion Gross margin updated to approximately 50 percent Adjusted EBITDA ( ² ) range updated to $ 310 million to $ 315 million 122 2.23 Three Months Ended September 30 , 2020 $ Third - Quarter 2021 Summary Revenue increased 7 percent to $ 471 million as continued growth in the renewal and direct - to - consumer channels offset an unprecedented challenging real estate channel environment ; includes greater contribution from ProConnect and Streem as they continue to expand off a small base 440 215 49 0.57 50 0.59 91 2.24 Change 7 % 18 % 56 % 56 % 55 % 55 % 34 % - % Quarterly gross profit margin of 54 percent ; increase of approximately 500 basis points over the prior year period due to a lower number of service requests and process improvement benefits Quarterly net income of $ 76 million ; 56 percent increase over the prior year period Record quarterly Adjusted EBITDA of $ 122 million ; 34 percent increase over the prior year period Customer retention of 74 percent ; declined from 75 percent in the second quarter of 2021 Launched three - year , $ 400 million share repurchase program ; repurchased $ 25 million in September " Our vision of redefining home services and becoming a leader in residential repair and maintenance solutions remains as strong as ever , " said Chief Executive Officer Rex Tibbens . " While key initiatives drove improved profitability this quarter , we remain committed to delivering stronger revenue growth in the future . We recognize where we are on our customer service journey and are further increasing our efforts to fundamentally change the customer experience . Our long - term strategy remains solid , and we are developing a strong foundation that will benefit all of our stakeholders in the future . " " I am extremely pleased with the strength of our third quarter earnings , " said Chief Financial Officer Brian Turcotte . " We delivered an 18 percent increase in gross profit due to a lower than anticipated number of service requests and process improvement benefits . We continue to generate strong cash flow and repurchased $ 25 million of stock in the third quarter . Our full - year 2021 outlook primarily reflects a continuation of both the historically challenging market conditions in our real estate channel and favorable cost trends in the fourth quarter . "