FranklinCovey Q4 2023 Earnings Report
Key Takeaways
Franklin Covey's Q4 2023 results showed a slight decrease in consolidated sales but an increase in gross profit and net income. The company's Enterprise Division and AAP subscription sales experienced growth, while the Education Division saw a slight decline. Adjusted EBITDA improved by 24% compared to the previous year.
Consolidated sales for the quarter were $78.0 million, slightly down from $78.8 million in Q4 2022.
Net income increased to $6.8 million, or $0.49 per diluted share, compared to $5.6 million, or $0.39 per diluted share, in Q4 2022.
Adjusted EBITDA improved by 24% to $16.5 million, compared to $13.3 million in the prior year.
Enterprise Division sales grew to $52.4 million, with AAP subscription sales increasing by 3%.
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FranklinCovey Revenue by Segment
Forward Guidance
Franklin Covey anticipates Adjusted EBITDA to increase to between $54.5 million and $58.0 million in constant currency for fiscal year 2024.
Positive Outlook
- Strength and strategic durability of All Access Pass subscriptions.
- Strength and strategic durability of Leader in Me membership subscriptions.
- Strong fiscal 2023 financial performance.
- Continued growth in All Access Pass subscriptions.
- Continued growth in Leader in Me membership subscriptions.
Challenges Ahead
- Additional growth investments.
- Potential macroeconomic headwinds.
- Adverse impacts on future operating results.
- Uncertainty of future events.
- Difficulties in obtaining information for GAAP reconciliation of Adjusted EBITDA.
Revenue & Expenses
Visualization of income flow from segment revenue to net income