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Aug 31, 2024
FranklinCovey Q4 2024 Earnings Report
Franklin Covey reported strong fourth-quarter financial results, with consolidated revenue increasing by 8% and net income increasing by 76% compared to the prior year.
Key Takeaways
Franklin Covey reported strong Q4 results, with revenue up 8% to $84.1 million and net income up 76% to $12.0 million. The company's performance reflects the successful transition to a technology-enabled content and services subscription business model.
Consolidated fourth-quarter revenue increased 8% to $84.1 million.
Fourth-quarter net income increased 76% to $12.0 million.
Adjusted EBITDA increased 39% to $22.9 million in the fourth quarter.
The company purchased 127,252 shares of its common stock for $4.9 million during the fourth quarter.
FranklinCovey
FranklinCovey
FranklinCovey Revenue by Segment
Revenue by Segment
Enterprise Division Revenue
CapyFin.comEducation Division Revenue
CapyFin.com Forward Guidance
Franklin Covey expects fiscal 2025 revenue to be in the range of $295 million to $305 million and Adjusted EBITDA to be in the range of $40 million to $44 million.
Positive Outlook
- Investments in sales and marketing are expected to drive revenue growth.
- Strategic investments are expected to result in long-term revenue growth and value creation.
- Revenue growth is expected to accelerate in fiscal 2026 and beyond.
- The company anticipates solid double-digit revenue growth.
- The company expects to expand its presence within existing clients.
Challenges Ahead
- Adjusted EBITDA is expected to decrease in fiscal 2025 due to investments in sales, sales support, and marketing personnel.
- A significant amount of invoiced sales will be recorded as deferred subscription revenue and recognized over the lives of the underlying contracts.
- The company is making approximately $16 million of incremental investments.
- Future results are subject to various risks and uncertainties, including macroeconomic conditions and geopolitical conflicts.
- The company is unable to provide a reconciliation of forward-looking Adjusted EBITDA to GAAP measures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income