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Nov 30, 2023
FranklinCovey Q1 2024 Earnings Report
Franklin Covey's Q1 2024 financial results were announced, with consolidated sales exceeding expectations, subscription and subscription services sales reaching a first-quarter record, and the company affirming its earnings guidance for fiscal year 2024.
Key Takeaways
Franklin Covey reported consolidated sales of $68.4 million for Q1 2024, slightly below the $69.4 million from Q1 2023. Subscription and subscription services sales reached a record $54.8 million. The company reaffirmed its fiscal year 2024 Adjusted EBITDA guidance of $54.5 million to $58.0 million.
Consolidated sales totaled $68.4 million, exceeding expectations.
Subscription and subscription services sales reached a first quarter record of $54.8 million.
Sum of billed and unbilled deferred subscription revenue increased 12% to $169.7 million.
Cash flows from operating activities increased to $17.4 million from $3.0 million in the prior year’s first quarter.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
FranklinCovey Revenue by Geographic Location
Revenue by Segment
Education Division Revenue
CapyFin.comRevenue by Geographic Location
International Licensees Revenue
CapyFin.com Forward Guidance
The company affirms its guidance for fiscal 2024 that Adjusted EBITDA will increase to between $54.5 million and $58.0 million in constant currency.
Positive Outlook
- Continued strength and strategic durability of its All Access Pass
- Leader in Me membership subscriptions performing well
- First quarter results exceeded expectations
- Expectation of a strong second half of the year
- Company expects to achieve growth while continuing to make additional growth investments
Challenges Ahead
- Potential macroeconomic disruptions that could adversely impact its future operating results
- Impact of deferred revenues on future financial results
- Market acceptance of new products or services, including new AAP portal upgrades and content launches
- Inflation
- Ability to achieve sustainable growth in future periods