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May 31, 2020

FranklinCovey Q3 2020 Earnings Report

FranklinCovey's Q3 2020 results were significantly impacted by the COVID-19 pandemic, with revenue decline due to postponed onsite training and coaching, while subscription business remained strong.

Key Takeaways

FranklinCovey reported a challenging third quarter due to the COVID-19 pandemic, which led to office and school closures and the postponement of onsite training and coaching. While overall sales decreased, the subscription business remained strong. The company is focusing on digital delivery systems and investing in new content and electronic delivery capabilities.

Revenue and Adjusted EBITDA declined due to the rescheduling of onsite programs caused by worldwide stay-at-home restrictions.

The subscription business remained strong and durable, even amidst the COVID-19 pandemic.

The strength of the subscription business has deep strategic and operational roots, proving valuable to clients.

The company expects to resume its growth trajectory once the period of uncertainty subsides.

Total Revenue
$37.1M
Previous year: $56M
-33.7%
EPS
-$0.12
Previous year: -$0.14
-14.3%
Gross Profit
$26.8M
Cash and Equivalents
$37M

FranklinCovey

FranklinCovey

FranklinCovey Revenue by Segment

Forward Guidance

Franklin Covey withdrew its fiscal 2020 guidance due to the COVID-19 pandemic but remains confident that it will resume accelerated growth once economies return to normalcy.

Revenue & Expenses

Visualization of income flow from segment revenue to net income