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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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