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May 31, 2024
FranklinCovey Q3 2024 Earnings Report
Franklin Covey's Q3 2024 financial results were announced, showing revenue growth and increased profitability.
Key Takeaways
Franklin Covey reported a 3% increase in consolidated revenue to $73.4 million for the third quarter of fiscal 2024. Net income increased by 25% to $5.7 million, and Adjusted EBITDA rose by 17% to $13.9 million. The company reaffirmed its fiscal 2024 guidance and continues to expect Adjusted EBITDA to be at the low end of its previously announced range.
Consolidated revenue for the third quarter increased to $73.4 million, a 3% increase year-over-year.
Net income for the third quarter rose by 25% to $5.7 million, or $0.43 per diluted share.
Adjusted EBITDA for the third quarter increased by 17% to $13.9 million.
The company reaffirmed its fiscal 2024 Adjusted EBITDA guidance.
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.comNorth America Revenue
CapyFin.com Forward Guidance
The Company looks forward to a strong finish to fiscal 2024. Despite the challenges the Company faced in the first half of fiscal 2024, the Company continues to expect that its Adjusted EBITDA for fiscal 2024, while showing a strong increase in the third quarter, will be at the low end of its previously announced guidance range of $54.5 million to $58.0 million in constant currency, which excludes the impact of approximately $0.5 million of negative foreign exchange.
Positive Outlook
- Company anticipates achieving all-time highs in revenue, Adjusted EBITDA, and Free Cash Flow in fiscal 2024.
- Strength of third quarter operating results was generally broad based across the Enterprise and Education Divisions.
- Company continues to be pleased with the growth in balances of billed and unbilled deferred subscription revenue.
- Improved subscription services booking pace.
- Company expects a strong finish to fiscal 2024.
Challenges Ahead
- Company faced challenges in the first half of fiscal 2024.
- Economic environment remains uncertain.
- Adjusted EBITDA for fiscal 2024 expected to be at the low end of the previously announced guidance range.
- Guidance excludes the impact of approximately $0.5 million of negative foreign exchange.
- There is no guarantee that the Company’s actual future performance will meet management’s expectations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income