NYSE$FC

Franklin Covey Co · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Franklin Covey's Q3 2024 financial results were announced, showing revenue growth and increased profitability.

Franklin Covey reported a 3% increase in consolidated revenue to $73.4 million for the third quarter of fiscal 2024. Net income increased by 25% to $5.7 million, and Adjusted EBITDA rose by 17% to $13.9 million. The company reaffirmed its fiscal 2024 guidance and continues to expect Adjusted EBITDA to be at the low end of its previously announced range.

  • Consolidated revenue for the third quarter increased to $73.4 million, a 3% increase year-over-year.
  • Net income for the third quarter rose by 25% to $5.7 million, or $0.43 per diluted share.
  • Adjusted EBITDA for the third quarter increased by 17% to $13.9 million.
  • The company reaffirmed its fiscal 2024 Adjusted EBITDA guidance.

Headline financials

Total Revenue

$73.4M

Previous: $71.4M+2.7%
EPS

$0.43

Previous: $0.32+34.4%
Adjusted EBITDA

$13.9M

Previous: $11.9M+17.0%
Deferred Subscription Revenue

$83.8M

No prior period
Capital Expenditures

-$2.62M

Previous: -$3.55M+26.1%
Free Cash Flow

$3.1M

Previous: $1.02M+204.8%
Net Income

$5.72M

Previous: $4.56M+25.4%
Operating Income

$8.34M

Previous: $6.57M+26.9%
Gross Profit

$56.2M

Previous: $54.2M+3.6%
Cash & Equivalents

$36.6M

Previous: $39.3M-7.0%
Total Assets

$221M

Previous: $218M+1.5%
Stock-Based Comp

$2.83M

Previous: $3.31M-14.5%

Revenue & EPS history

FranklinCovey · Revenue · Quarterly

$73.4M

Q3 2024+2.7%vs Q3 2023
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

FranklinCovey · $78M total across 3 segments · Q4 2023

  • Enterprise Division
    $52.4M+0.5%
  • Education Division
    $24.1M-2.2%
  • Corporate and other
    $1.43M

Forward guidance

The Company looks forward to a strong finish to fiscal 2024. Despite the challenges the Company faced in the first half of fiscal 2024, the Company continues to expect that its Adjusted EBITDA for fiscal 2024, while showing a strong increase in the third quarter, will be at the low end of its previously announced guidance range of $54.5 million to $58.0 million in constant currency, which excludes the impact of approximately $0.5 million of negative foreign exchange.

Tailwinds

  • Company anticipates achieving all-time highs in revenue, Adjusted EBITDA, and Free Cash Flow in fiscal 2024.
  • Strength of third quarter operating results was generally broad based across the Enterprise and Education Divisions.
  • Company continues to be pleased with the growth in balances of billed and unbilled deferred subscription revenue.
  • Improved subscription services booking pace.
  • Company expects a strong finish to fiscal 2024.

Headwinds

  • Company faced challenges in the first half of fiscal 2024.
  • Economic environment remains uncertain.
  • Adjusted EBITDA for fiscal 2024 expected to be at the low end of the previously announced guidance range.
  • Guidance excludes the impact of approximately $0.5 million of negative foreign exchange.
  • There is no guarantee that the Company’s actual future performance will meet management’s expectations.

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 Q3 2024

Historical avgQ3 2024

+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%

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