- Franklin Covey (FC +2.5%) reports Q3 revenue growth of 15.3% Y/Y to $50.5M.
- Gross margin increased 670 bps to 69.2%, the increase was primarily due to a change in the mix of revenues, as subscription revenues, including the All Access Pass, continue to grow as a percentage of recognized sales.
- Subscription Services momentum further strengthens with Paying Subscribers up 37% Y/Y to 540,000.
- Deferred Subscription revenue increases 46% Y/Y to $34.5M, additional investments expected to add growth in fiscal 2019 and beyond.
- Unbilled deferred revenue which represents business that is contracted but unbilled were $15.1M (+504% Y/Y).
- Adjusted EBITDA improved to $0.6M for Q3.
- The Company had $11.8M of cash & $14.1M of available borrowing capacity on its revolving line of credit facility.
- 2018 Outlook: The Company reaffirms its previously announced Adj. EBITDA to be $10-15M.
- Now read: Franklin Covey Company 2018 Q3 - Results - Earnings Call Slides
Original article