NYSE$FC

Franklin Covey Co · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

FranklinCovey's Q2 2023 financial results, featuring revenue growth and strong gross margins, were announced.

Franklin Covey reported a 9% increase in consolidated sales to $61.8 million for the second quarter of fiscal 2023, with All Access Pass subscription and Education Division revenues driving growth. The company's gross margin remained strong at 76.4%, and Adjusted EBITDA increased to $8.2 million.

  • Consolidated sales increased 9% to $61.8 million compared to fiscal 2022.
  • All Access Pass subscription and subscription services sales grew 11% to $35.4 million.
  • Education Division revenues grew 28% compared to fiscal 2022.
  • The sum of billed and unbilled deferred subscription revenue increased 22% to $145.8 million compared to February 28, 2022.

Headline financials

Total Revenue

$61.8M

Previous: $56.6M+9.1%
EPS (adj)

$0.12

Previous: $0.13-7.7%
Adjusted EBITDA

$8.2M

Previous: $8.04M+2.0%
Deferred Subscription Revenue

$146M

Previous: $119M+22.2%
Capital Expenditures

-$2.64M

Previous: -$1.26M-109.2%
Free Cash Flow

-$905K

Previous: $614K-247.4%
Net Income

$1.74M

Previous: $1.88M-7.4%
Operating Income

$2.83M

Previous: $3.52M-19.6%
Gross Profit

$47.2M

Previous: $44.1M+7.0%
Cash & Equivalents

$55.1M

Previous: $61.1M-9.7%
Total Assets

$234M

Previous: $233M+0.3%
Stock-Based Comp

$3.32M

Previous: $1.97M+68.4%

Revenue & EPS history

FranklinCovey · Revenue · Quarterly

$61.8M

Q2 2023+9.1%vs Q2 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

FranklinCovey · $60.8M total across 2 segments · Q2 2023

  • Enterprise Division
    $46.6M+5.7%
  • Education Division
    $14.2M+28.3%

Forward guidance

The Company affirms its previously announced guidance that Adjusted EBITDA for fiscal 2023 will increase to between $47 million and $49 million in constant currency, compared with the $42.2 million in Adjusted EBITDA achieved in fiscal 2022.

Tailwinds

  • Continued strategic strength of All Access Pass and Leader in Me membership subscriptions.
  • Accelerated growth over the past years.
  • Performance through the first two quarters of fiscal 2023.
  • Increased investments to add new client partners and client-facing personnel.
  • Investments in the Company’s delivery portals and content.

Headwinds

  • Potentially challenging macroeconomic circumstances.
  • Potential for ongoing disruptions in China and Japan resulting from the lingering effects of the COVID-19 pandemic.
  • Economic conditions in China.
  • Economic conditions in Japan.
  • Uncertainty about the amount of AAP contracts invoiced and renewed.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.3%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+5.4%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+44.5%

Q2 2026

Best reaction

-26.5%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+44.5%+1.2%
Q1 2026+1.0%+11.1%+3.4%
Q4 2025-10.7%-13.0%-10.1%
Q3 2025+2.0%+0.1%-1.6%
Q2 2025-26.5%-29.3%-24.0%
Q1 2025-11.3%-13.8%+7.2%
Q4 2024-8.3%-4.3%-11.6%
Q3 2024+6.5%+6.9%+24.0%
Q2 2024+0.7%-3.6%+1.4%
Q1 2024+1.9%-1.8%+2.0%
Q4 2023-11.0%-11.3%-0.3%
Q3 2023+28.7%+26.2%+32.5%
Q2 2023-17.7%-12.3%-16.6%
Q1 2023-8.4%-7.7%+1.0%
Q4 2022-0.6%-5.8%-0.3%
Q3 2022+19.0%+21.4%+34.8%
Q2 2022-6.8%-3.8%-17.4%
Q1 2022+10.9%+12.1%+2.0%
Q4 2021+5.6%+13.3%+2.9%
Q3 2021+11.6%+6.3%+13.5%
Q2 2021+6.6%+7.1%+8.0%
Q1 2021+4.8%+3.1%+15.8%
Q4 2020+16.4%+36.7%+26.0%
Q3 2020-8.3%-7.1%-0.2%
Q2 2020+15.4%+29.6%+35.8%
Q1 2020-3.6%-2.3%-3.2%
Q4 2019+3.5%+1.0%-2.8%
Q3 2019+8.2%+8.8%+17.0%
Q2 2019+8.4%+5.0%+13.0%
Q1 2019+3.7%+4.3%+5.4%
Q4 2018+3.5%+0.6%+3.0%
Q3 2018-6.8%-8.9%-11.4%
Q2 2018+9.0%-1.9%-4.1%
Q1 2018+14.5%+36.5%+26.6%
Q4 2017+11.0%+2.9%+2.9%
Q3 2017-7.9%-6.2%-12.9%
Q2 2017+26.6%+29.2%+33.2%
Q1 2017-6.4%-6.9%-13.0%
Q4 2016-1.6%+4.4%+14.8%
Q3 2016-4.3%-1.7%+13.4%
Q2 2016-9.8%
Q1 2016+1.5%
Q4 2015-13.3%
Q3 2015-13.0%
Q2 2015-2.2%
Q1 2015-0.5%
Q4 2014+0.5%
Q3 2014+0.3%
Q2 2014+1.1%
Q1 2014+0.7%
Q4 2013+5.3%
Q3 2013+3.8%
Q2 2013-0.7%
Q1 2013+0.9%
Q4 2010-7.0%
Q4 2012-7.0%
Q3 2011+0.6%
Q3 2012+6.2%
Q2 2012-2.2%
Q2 2011-2.2%
Q4 2011-0.6%
Q1 2012-0.6%
Q1 2011-5.0%
Q3 2010+4.1%
Q2 2010+0.9%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro