Q3 2024 Franklin Covey Co Earnings Call Transcript
Key Points
- Revenue for Q3 2024 came in at $73.4 million, exceeding the expected $72.2 million.
- Adjusted EBITDA for Q3 2024 was $13.9 million, surpassing the expected range of $12 million to $13 million.
- Free cash flow through the third quarter was $30.6 million, significantly higher than the $15.6 million from the same period last year.
- The balance of billed and unbilled deferred revenue increased by 9% to $153.2 million, indicating strong future revenue potential.
- The education division saw a 16% increase in invoiced amounts in Q3 2024, reflecting strong growth and retention in new and existing schools.
- Revenue from international direct operations decreased by 7% in Q3 2024, primarily due to geopolitical issues in China.
- International licensee partner revenue also saw a decline of 5% in Q3 2024.
- The company faced restructuring costs amounting to $3 million year-to-date, impacting overall profitability.
- Deferred subscription revenue on the balance sheet showed a 16% decline from $95 million to $80 million year-to-date.
- The geopolitical and economic challenges in China continue to pose uncertainties for future growth in that market.
Good day and thank you for standing by. Welcome to the Q3 2024 Franklin Covey earnings conference call. At this time, all participants are in a listen only mode. Please be advised that today's conference is being recorded. (Operator Instructions) I would now like to hand the conference over to your speaker today Derek Hatch, Corporate Controller.
Hello, everyone, and thanks so much for joining us. We're glad to have the opportunity to talk with you today. Participating on our call this afternoon are Paul Walker, our Chief Executive Officer; Steve Young, our Chief Financial Officer; Jennifer Colosimo, President of our Enterprise division; and Sean Covey, President of our Education division.
Before we get started, I would like to remind everybody that this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon management's current expectations and are subject to various risks and
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