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Feb 29, 2024
FranklinCovey Q2 2024 Earnings Report
Franklin Covey's financial performance remained resilient amidst economic uncertainty, marked by strong client and revenue retention, and growth in deferred subscription revenue.
Key Takeaways
Franklin Covey reported second quarter fiscal 2024 financial results with consolidated revenue totaling $61.3 million. The company's subscription and subscription services sales reached $50.3 million. Net income was $0.9 million, or $0.06 per diluted share, and Adjusted EBITDA was $7.4 million.
Consolidated sales for the quarter totaled $61.3 million, compared to $61.8 million in the prior year.
Total Company subscription and subscription services sales reached $50.3 million, a 5% increase over the second quarter of fiscal 2023.
Consolidated deferred subscription revenue increased 13% to $86.1 million.
Net income for the second quarter was $0.9 million, or $0.06 per diluted share.
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 expects that its Adjusted EBITDA for fiscal 2024 will be at the lower end of its previously announced guidance range of $54.5 million to $58.0 million in constant currency.
Positive Outlook
- Strength of the Company’s business model that features high recurring revenue.
- High gross margins.
- Low capital intensity.
- Continued strength and strategic durability of the All Access Pass.
- Continued strength and strategic durability of the Leader in Me membership subscriptions.
Challenges Ahead
- Challenges from the first half of fiscal 2024.
- Slower-than-expected rebound of subscription services sales will impact anticipated sales growth in the third and fourth quarters.
- Concern about economic conditions slowed decision-making.
- More difficult selling environment during the first half of fiscal 2024.
- Expectation to be at the low end of Adjusted EBITDA guidance range.
Revenue & Expenses
Visualization of income flow from segment revenue to net income