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Feb 28, 2022
FranklinCovey Q2 2022 Earnings Report
FranklinCovey's second quarter 2022 financial results were marked by sales growth and increased profitability.
Key Takeaways
Franklin Covey reported strong second-quarter results with an 18% increase in sales to $56.6 million, driven by subscription growth. Operating income rose to $3.5 million, and Adjusted EBITDA increased by 57% to $8.0 million. The company also increased its earnings guidance for fiscal year 2022.
Consolidated sales increased by 18% to $56.6 million compared to fiscal year 2021.
All Access Pass subscription and subscription services sales grew by 29% to $32.0 million.
Education Division revenues grew by 31%.
Operating income increased to $3.5 million and Adjusted EBITDA increased 57% to $8.0 million.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
FranklinCovey Revenue by Geographic Location
Revenue by Segment
Enterprise Division Revenue
CapyFin.comEducation Division Revenue
CapyFin.comRevenue by Geographic Location
International Direct Offices Revenue
CapyFin.comInternational Licensees Revenue
CapyFin.com Forward Guidance
The Company increased its guidance for fiscal 2022 and now expects Adjusted EBITDA to total between $38.0 million and $39.0 million.
Positive Outlook
- Strong performance in the first and second quarters of fiscal 2022.
- Anticipated results for the remainder of the current fiscal year.
- Strength of the All Access Pass and Leader in Me membership subscriptions.
- Continued growth in the second half of fiscal 2022 and subsequent years.
- Company expects Adjusted EBITDA to total between $38.0 million and $39.0 million.
Challenges Ahead
- Growth trajectory in the third and fourth quarters is expected to be impacted by comparisons to prior year periods which were less impacted by the COVID-19 pandemic.
- Planned investments in the second half of fiscal 2022 for long-term growth.
- Costs associated with hiring new client partners to position the Company for sales growth in future periods.
- Additional investments in content and delivery platform development.
- Other growth investments, including sales support personnel.
Revenue & Expenses
Visualization of income flow from segment revenue to net income