NYSE$FC

Franklin Covey Co · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$84.1M

Previous: $78M+7.9%
EPS (adj)

$0.89

Previous: $0.49+81.6%
Adjusted EBITDA

$22.9M

No prior period
Deferred Subscription Revenue

$108M

No prior period
Adjusted EBITDA Margin

27.3%

No prior period
Cash Provided by Operating Activities

$21.9M

No prior period
Subscription and Services Revenue

$65.8M

No prior period
Subscription Revenue Invoiced

$62.9M

No prior period
Unbilled Deferred Subscription Revenue

$75.2M

No prior period
Capital Expenditures

-$3.5M

Previous: $970K-460.5%
Net Income

$12M

Previous: $6.81M+75.5%
Operating Income

$17.9M

Previous: $10.6M+69.6%
Gross Profit

$65.7M

Previous: $59.3M+10.8%
Stock-Based Comp

$3.05M

Previous: $3.16M-3.6%

Revenue & EPS history

FranklinCovey · Revenue · Quarterly

$84.1M

Q4 2024+7.9%vs Q4 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

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2024

Historical avgQ4 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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