Apr. 2 at 8:27 PM
$FC Franklin Covey cuts FY25 revenue view to
$275M-
$285M from
$295M-
$305M
Consensus
$297.5M. The company states: "The objectives of the Company's new go-to-market transformation remain unchanged. Despite the on-the-margin interruptions in revenue from government and international operations, as described above: (a) The engines in the Company's Enterprise Division in North America and in Education are strong and durable; (b) the new go-to-market transformation is tracking a bit ahead of expectation; and (c) the go-to-market transformation is expected to drive significant acceleration of the Company's overall revenue growth, moving the trajectory from single-digit to double-digit revenue growth in the coming years, with a significant flow-through of this incremental revenue to increases in Adjusted EBITDA and Cash Flow.
However, due to the impacts of Government actions and the current business environment on certain areas of the business, the Company is adjusting its guidance for fiscal 2025. Last year the Company achieved revenue of
$287.2 million and generated
$55.3 million of Adjusted EBITDA. The Company's low-end of its original fiscal 2025 guidance anticipated revenue growth of approximately
$8 million, generating Adjusted EBITDA of
$40 million, which reflected a reduction from the prior year for the
$16 million of incremental growth investments being made in fiscal 2025.
Due to the impact of Government actions and the current business environment, the Company now expects fiscal 2025 revenue to be between
$275 million to
$285 million. The mid-point of this range is
$7 million, or 2.5%, lower than the prior year and
$15 million, or 5%, lower than the low end of the Company's original guidance, in constant currency. Based on these revised projected revenues, the Company now expects Adjusted EBITDA to be between
$30 million and
$33 million, in constant currency, primarily reflecting the expected loss in gross profit from the decline in revenue related to Government actions."
