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Feb 28, 2023
FranklinCovey Q2 2023 Earnings Report
FranklinCovey's Q2 2023 financial results, featuring revenue growth and strong gross margins, were announced.
Key Takeaways
Franklin Covey reported a 9% increase in consolidated sales to $61.8 million for the second quarter of fiscal 2023, with All Access Pass subscription and Education Division revenues driving growth. The company's gross margin remained strong at 76.4%, and Adjusted EBITDA increased to $8.2 million.
Consolidated sales increased 9% to $61.8 million compared to fiscal 2022.
All Access Pass subscription and subscription services sales grew 11% to $35.4 million.
Education Division revenues grew 28% compared to fiscal 2022.
The sum of billed and unbilled deferred subscription revenue increased 22% to $145.8 million compared to February 28, 2022.
Revenue by Segment
Forward Guidance
The Company affirms its previously announced guidance that Adjusted EBITDA for fiscal 2023 will increase to between $47 million and $49 million in constant currency, compared with the $42.2 million in Adjusted EBITDA achieved in fiscal 2022.
Positive Outlook
- Continued strategic strength of All Access Pass and Leader in Me membership subscriptions.
- Accelerated growth over the past years.
- Performance through the first two quarters of fiscal 2023.
- Increased investments to add new client partners and client-facing personnel.
- Investments in the Company’s delivery portals and content.
Challenges Ahead
- Potentially challenging macroeconomic circumstances.
- Potential for ongoing disruptions in China and Japan resulting from the lingering effects of the COVID-19 pandemic.
- Economic conditions in China.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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