https://assets.capyfin.com/instruments/678fdc13234e27009c5d6278.png avatar
FranklinCovey
🇺🇸 NYSE:FC
View Company
OverviewEarningsDividends
•
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.

Total Revenue
$73.4M
Previous year: $71.4M
+2.7%
EPS
$0.43
Previous year: $0.32
+34.4%
Gross Profit
$56.2M
Previous year: $54.2M
+3.6%
Cash and Equivalents
$36.6M
Previous year: $39.3M
-7.0%
Free Cash Flow
$7.27M
Previous year: $13.8M
-47.5%
Total Assets
$221M
Previous year: $218M
+1.5%

FranklinCovey

FranklinCovey

FranklinCovey Revenue by Segment

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

Company Overview

Full financial data and analysis

View FranklinCovey