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Aug 31, 2022
FranklinCovey Q4 2022 Earnings Report
FranklinCovey's Q4 performance was driven by strong subscription sales and operational efficiency.
Key Takeaways
FranklinCovey reported a strong fourth quarter with a 14% increase in sales to $78.8 million. The company's performance was driven by growth in All Access Pass subscriptions and Education Division revenues. Operating income increased by 101% to $8.7 million, and Adjusted EBITDA increased by 26% to $13.3 million.
Consolidated sales increased by 14% to $78.8 million.
All Access Pass subscription and subscription services sales grew by 26% to $40.3 million.
Education Division sales grew by 17%.
Operating income increased by 101% to $8.7 million.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
Revenue by Segment
Enterprise Division Revenue
CapyFin.comEducation Division Revenue
CapyFin.com Forward Guidance
Franklin Covey anticipates Adjusted EBITDA for fiscal year 2023 to increase between $47 million and $49 million in constant currency.
Positive Outlook
- Strength and strategic durability of All Access Pass and Leader in Me membership subscriptions.
- Continuing strong performance and momentum generated in fiscal 2022.
- Increased investments to add an estimated 40 new client partners in fiscal 2023.
- Additional personnel.
- Investments in the Company’s delivery portals and content.
Challenges Ahead
- Increased investments to add an estimated 40 new client partners in fiscal 2023, other personnel, and investments in the Company’s delivery portals and content
- Potential for ongoing disruptions in China and Japan resulting from the COVID-19 pandemic and economic conditions in these countries
- Potentially challenging macroeconomic conditions.
- Ongoing disruptions in China resulting from the COVID-19 pandemic.
- Challenging macroeconomic conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income