FranklinCovey Q3 2023 Earnings Report
Key Takeaways
Franklin Covey reported an 8% increase in consolidated sales, reaching a record $71.4 million. Education Division revenues grew by 18%, and the sum of billed and unbilled deferred subscription revenue increased by 21% to $140.9 million. Pre-tax income increased by 18% to $6.6 million, and Adjusted EBITDA increased by 9% to $11.9 million.
Consolidated sales increased by 8% to a record $71.4 million.
Education Division revenues grew by 18%.
The sum of billed and unbilled deferred subscription revenue grew by 21% to $140.9 million.
Adjusted EBITDA increased by 9% to $11.9 million.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
Forward Guidance
The Company affirms its previously provided 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 subscriptions
- Durability of Leader in Me membership subscriptions
- Accelerated growth over the past years
- Expected continued growth in the future
- Confidence in the All Access Pass and Leader in Me membership subscriptions
Challenges Ahead
- Additional growth investments
- Continuing macroeconomic headwinds
- Adverse impact on fiscal 2023 operating results
- General economic conditions
- Market acceptance of new products or services
Revenue & Expenses
Visualization of income flow from segment revenue to net income