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Aug 31, 2023
FranklinCovey Q4 2023 Earnings Report
Franklin Covey reported mixed results for Q4 2023, with sales slightly decreasing but net income and Adjusted EBITDA increasing significantly.
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%.
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 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