Franklin Covey Finds Itself at a Crossroads Ahead of First-Quarter Earnings
Leadership training and organizational consulting dynamo Franklin Covey (NYSE: FC) will report its fiscal first-quarter 2020 earnings on Jan. 9 after the close of trading. The company completed a turnaround in its fiscal 2019 that helped its stock soar by 44% during the calendar year. However, with much of the heavy lifting of that transformation now complete, will investors maintain their enthusiasm? Below, we'll discuss the company's recent progress, and why its successes of the last 12 months may be hard to top during the next 12.
Franklin Covey reached a significant milestone in fiscal 2019 as it successfully finished a three-year shift of its revenue framework to a subscription model. The organization's subscription momentum was clear from the progress of its flagship "All Access Pass," which proved especially popular among larger enterprise customers. Total revenue in 2019 increased by 7% to $225.4 million, but more importantly, subscription revenue jumped by 23%.
Other indicators commonly used to gauge the success of software-as-a-service (SaaS) companies also exhibited vibrancy. Franklin Covey finished fiscal 2019 with a deferred subscription revenue balance of $58.2 million (up 20%), and its unbilled deferred revenue balance advanced by 22% against the balance at fiscal year-end 2018, to $30 million.
Source Fool.com
