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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.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
Revenue by Segment
Enterprise Division Revenue
CapyFin.comEducation Division Revenue
CapyFin.com 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.
- Economic conditions in Japan.
- Uncertainty about the amount of AAP contracts invoiced and renewed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income