FC - Earnings call transcript Q4 2019

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Operator

Welcome to the Q4 2019 Franklin Covey Earnings Conference Call. My name is Adrienne and I will be your operator for today’s call. At this time, all participants are in al listen-only mode. Later, we’ll conduct the question-and-answer session. [Operator Instructions] Please note this conference is being recorded.

call Corporate the Derek turn now over Controller, to Hatch. I’ll you may Hatch, begin. Derek

Derek Hatch

Good behalf investor Thank I everyone. year you, afternoon, Adrienne. XXXX. XX, On fourth and to you ended August the would welcome of to for our call quarter fiscal like Covey Franklin

we like Act Reform everyone of to Before that forward-looking contains Litigation presentation begin, Private the within Securities we’d statements meaning remind this of the XXXX.

market including various but management’s current limited expectations to of they in or risks economic are sales and of products statements to uncertainties, market competition the acceptance changes ability acceptance stabilize based services upon hire and the general company’s rates marketing of marketplace; of Forward-looking the size professionals; to for and Pass; Access changes of productive share; the and the company’s not the All revenues; market products. are to strategies; new and company renewal subject the in company overall the conditions; the in the targeted the ability for grow company’s

circumstances be the date other Commission. company’s and control reports update training we future forward-looking are company’s or presentation, report the no as clients; of and the the may on on materially future to revise the obligation current based And forward-looking company’s one will recent can events to discussed which no required factors reflect XX-K to our company’s assurance identified expectations. today’s policies cause management’s from Many results the and undertake Form These meet of and of are law. or these in statements and these statements after current there in with expectations. of except performance by annual actual Exchange spending filed or the management’s expectations Changes Securities beyond other and most periodic conditions influence, any differ

and to With our Mr. like that Bob. over time turn to Chairman Bob Chief we’d out Executive way, Whitman, the of Officer. the

Bob Whitman

much, so Derek. We Good really joining everyone. appreciate afternoon, you Thanks today.

and We’re full expected. strong were really and – strong QX really, than better pleased results XXXX year our fiscal to report very that even

momentum and business to momentum have we We fully build our on forward. strong expect going that in

fourth we when EBITDA year really for The we SG&A model the margins; made business quarter expected and high-single-digit in high growth and reduced years change flow-through; ago really high cash and what constant retention; the gross the are high for in for revenue results revenue growth adjusted that was currency; – accelerated flow. several

is and growth high expectation consistently as in specifically Consistent rates and As to see objective, adjusted come. high and and X. very this XXXX, flow very it EBITDA adjusted expectations to in for for growth you fiscal and cash our achieve these can in years know, with of had to Slide EBITDA goal you cash we flow, do

expected and We increase in in XXXX. adjusted in in million that million million our $XX $XX XXXX fiscal would EBITDA from to fiscal between constant XXXX reported currency $XX.X

and $XX our would in increase million generated currency net cash in million to plus million deferred our also change adjusted revenue expect million. between $XX our balance that We $XX constant increase that and EBITDA and $XX between the would

of a was our X, of our fiscal strength the adjusted $XX.X can the from these us in fiscal growth meet guidance, that increased pleased results exceed constant or Again, fiscal EBITDA million in to in XXXX currency Slide in million allowed our XXXX, $XX.X see for million to We’re of basis XX%. $X.X you or in each XXXX as expectations. which

or growth to XX%. $X.X Before from million of $XX.X million, adjusting foreign and changes increased for adjusted in reported, exchange million EBITDA a as $XX.X

increased million, and to the in $XX.X revenue increased cash generated deferred change adjusted in to the our combination constant You currency of can million. plus $XX.X also net see EBITDA importantly,

In activities cash fiscal flow to operating million $XX.X million addition, $XX.X million in fiscal XXXX. XXXX XX% our $XX.X or increased from from

It all this forward. feel of with that well-positioned on pleased we’re it we’re to performance. So the that was moving the kind to strong really growth strong be continue fronts we on, and expected

we��ll discuss moment, great really more also As a education was this in across this detail the performance was that enterprise and pleased in we’re – broad-based both divisions.

for last As quarters. factors Slide many in reasons is increases and high driven through the of that flowing dollar high for combined talk three you we’ve in to EBITDA percentage flow. about Factor sales several We’ll a can see of is talked every and growth impact adjusted flow cash of being that X X, adjusted the by that. about in cash the the is EBITDA

future is Factor we’ll talk about, of revenue. that and rapidly, X is growing durability high all and retaining lifetime margin value. establishing we’re structural It’s sticky, is subscription substantially gross of strategic the also which visibility our revenue it, customer predictability it’s and and and our trajectory, creating high increasing

and of the The rates The in cash aggressively compelling sales these which we factors continued advantage growth, growth flow. as EBITDA is great adjusted mountain accelerate and of to in fiscal we EBITDA of to how has a detail growth combination driving It and flow adjusted put trajectory, are XXXX on opportunity XXXX, think, can for said accelerated a beyond. third that march in expansion that is work. is achieving taking we’ll XXXX, an expected our we factor further us force cash up and significant high

$XX.X between $XX fiscal section, achieved for before Slide discuss again FX, guidance constant in million fiscal grow XXXX adjustment million to more As to in indicated the and which we’ll X, XXXX. in currency, in we EBITDA we XXXX what expect million and $XX in detail in in was fiscal as adjusted from

bit from we between what growth So year. last and that raised a represents we’ve That said XX%. XX%

net $XX as and generated also, increase expect We cash $XX between shown, our million. to million

$XX to increase and over in $XX generated million results as grow million in $XX and fiscal a $XX $XX and and an between our strong and again, what and and adjusted all from XXXX, grow note, fiscal XXXX then to million we achieve million to of cash year team Also million both to we also as and what between represent you fiscal to million targeted fiscal would said also last million and between thought is EBITDA expectation very it. shown, in bit million adjusted to last net expected cash to are committed we XXXX. an increase As $XX thereafter growth, XXXX, year. EBITDA and $XX target a to These $XX and in flow, aligned between

the combine just you we cash at adjusted I’d do look generate more to now a three talked factors, growth these future. and in to in high expect them XXXX detailed about, how so and to flow these EBITDA provide to factors like I continue in why

point gross and the high-single-digit the bullet EBITDA in that just declining stickiness revenue Slide the this high combination shows this growth So accelerated is the incremental that’s that growth, of a driving is thing high flow-through driving sales of on margins, X to incremental our revenue revenue, as of adjusted SG&A reflecting of percentage EBITDA.

our XXXX. we $XXX.X can the XXXX $XX.X grew foreign currency expected. grew More revenue you exchange detail in to which X% in $XXX.X or that to X, In in that from or million million on slightly in $XXX.X changes fiscal exceeded before adjustment for fiscal $XX.X million X.X% constant revenue currency, million million X.X% constant really see our Slide just

both the constant division’s revenue X.X% education also or growing growth currency, This constant currency. X.X% the broad-based enterprise growing with and was revenue across division’s X.X%, divisions, X%, in in

$XX.X or from million million the you here, to grew for the year see revenue year, in XX.X% As related $XX.X our $XXX.X million subscription and previous XXXX.

was million. all the recognized and $X.X $XXX.X Our million any fourth all million constant hardly that In increase because to added X.X% of the the invoice subscription sheet. sales substantially up of revenue the $XX.X made grew that quarter revenue of almost sales, was balance currency. it’s quarter subscription invoiced to because grew in And in or that

reported was actual added because small it growth was but a the the sheet. we all to subscription, balance lot So

unbilled end $XX And XX% – $XX.X million billed Our year. revenue and up million to grew breaking or sales, unbilled. fiscal at broken XXXX from two related deferred deferred subscription revenue the billed and just deferred out, between groups balance of last the out $XX.X all this to million the of

of increased million, an balance $XX.X million. to increase of billed to revenue $XX.X of revenue of And million. XX% our unbilled XX% deferred Our $XX.X balance increased $X.X million, deferred an increase

very of margin increases in revenue all recognized fiscal substantially XXXX. throughout high this be throughout smooth deferred help Importantly, the profit year. evenly revenue will out That’ll and

annual royalty payments addition annually-recurring contractual, deferred our the revenue. minimum royalty total million royalty the – increasing balance In range revenue, now to adding million of large minimum $XX.X licensee our contractual to growing were totaled million. balance payments and from of business The significant $XX large is further the more this to $XX and actual in of of million, $XX.X but payments that

Our total X.X% XXXX. during fiscal contracted grew revenue

EBITDA. We had a high flow-through of to adjusted revenue

currency Slide see or million $X.X model adjusted As the was XX% reported resulted or as constant and growth business in for This adjusted which you approximately X, flow resulted EBITDA basis increases EBITDA. now dollar XX% through adjusted million to increased of in in of can guidance. to revenue in in every in EBITDA $X.X we XX% our the in have growth

that There that. drove a things couple were of

lower add-on to margin XX.X% high Access we last margin grow services the fact XX.X%. us our continued despite of this to gross achieved First, percentage the but have All the blend and a allowed maintain we which year at Pass little the remained level that still our

constant million quarter year and that subscription Gross none fourth be for in recognized. the is sales, of fourth or higher. the the in was in the increased even all revenue because currency in substantially sheet margin invoiced and In on growth dollars X.X% was quarter recognized balance the $XX will again was but almost of

gross XXXX. operating our of expenses helped high sales besides in as was it, decline drive SG&A operating that fiscal driving SG&A the again in thing second The a margin, relatively-fixed percentage

sales. as of XX.X% basis XX.X% lower That’s the SG&A year’s last And a level compared that fourth figure XX.X%. to a XXX at points, in operating For quarter, points of sales the coming XXX year, quarter. improved in than XX% fourth was year’s basis in last percentage

revenue as the margins, can you resulted see, in EBITDA. So combination in high adjusted gross growth, reduced expense, very operating growth strong strong of

in or previously, $XX.X the increase the million adjusted the Adjusted $XX.X noted to even XX% with $X.X million. revenue foreign of the through And As fourth XX% grew to for it increased XX% currency higher. EBITDA. to million close to adjustments of In or exchange million adjusted EBITDA XX% increased top was in million, our quarter, EBITDA flowing common before $XX.X range. EBITDA to $X.X

Finally, our was flow cash also very growth significant. in

or generated net $XX.X to $X.X Our million million. XX% increased cash

the the you cash net appendix, And increased you As flow in see which in can you’re to compared in which $XX.X appendix, in exceeded to to or high by expected million detail $XX.X provided end the the activities, million range. year. XX% $XX.X million can our XX Slide going see Slide see of XX operating last

overall, the revenue we pleased the margins, and result high strength quarter, fourth the divisions of were pleased that sales. enterprise a with high broad-based in was strong very So had performance with flow-through, strong declining country’s the strong and percentage of both which education the performance results SG&A and especially for same gross that of growth, as

strong to reasons adjusted we and high So adjusted through to increases growth for in a resulting and of rates flow expect cash percentage EBITDA same very revenue will and XXXX in achieve in the EBITDA cash fiscal revenue growth the high in expect beyond. flow able again in that of be and this future, flow continue to to

future the – some and each just we as I enterprise and of same to I take would go if minutes to these just those good that be in – just on. quarters and track be three quarters this and through said But you Here, the and this inasmuch from results say think said, mercifully detailed yourselves. in results things, back walk detail enterprise the the put and to can taken let and we’d in know couple move education, in occurred just highlight to have strong them it probably have you and a the we I just able detail you appreciated results through like in nuances in because a could us you’ll future of ahead some prior the you then of education year few

you’ll we hope detail. I the okay So be go through that

as the of total accounted enterprise XX% for Again, grew to EBITDA high-single-digit XXXX, the revenue million. revenue driven flow-through the this adjusted same the which and revenue. high very in million represents of $X.X SG&A adjusted percentage of $XX.X or of In combination factors, by lowering company’s XX% a incremental to high revenue margins division, gross fiscal EBITDA growth,

enterprise revenue the to or to million $XX.X X, a year. just Slide compared to $XXX in enterprise division’s reported revenue see million last currency million division’s little for X.X% the as or can $XXX.X, or million grew expectation. you our As X.X% In constant the $XXX.X year meeting grew $XX.X exceeding

All X.X% for increases year and invoiced related they the grew sheet and fourth as the XX.X% for increased the for reflected and noted, subscription in Access fourth recognized onto XX% FX Pass again, Invoiced year. sales were be because already all as quarter. sales the the sales in pre-adjustment in sales the – almost the balance quarter and went in throughout the they’ll year

reported balance only because quarter, sheet. fourth the grew it revenue in So onto that the but X% meant went that’s the all

XXXX. increasing to down $XX.X million. That deferred year-end the increasing $XX.X revenue billed million of $XX.X at XX.X% and million billed at of and broken to unbilled was deferred the million balance Our unbilled deferred XX% end XX% from $XX.X $XX.X between or grew to million

of provides sales the we really grew quarter for but are the sales throughout much again little combination future years have a last in quarter, few occurred in where have now strong process the and fourth foundation a growth, fourth spread that contract multi-year these multi-year the whereas the declined primarily pretty So in revenue a X.X% year. our reflecting evenly

result, factors little dollars two constant year, and increase adjusted adjusted increased for high As Slide revenues. service it in EBITDA this X.X% a growing million these growth last adjusted or The flow-through EBITDA through a high in X% million the stayed behind flow-through. $X.X enterprise pre-FX gross Strong over to at XX% level $X $X.X achieved XX, see in you despite that. of enterprise to resulting of as margins, in XX.X% approximately to gross EBITDA this were currency. XX% the can revenue of division same million the adjusted adjustment, that division or for in year And margin the its as XX% or flowed

of percentage The to SG&A operating improve. as second continued a sales, also

can as see improved the points significantly last lower that year. basis fourth a quarter XX.X% That percentage operating again. this You XXX SG&A actually and XX.X%, sales of was than was in year’s

you increase adjusting $X.X sales currency $XX.X adjusted million And EBITDA. in see increase before growth or the in was $XX.X as can So noted, or in $X with EBITDA of changes increased flowing for XX.X% to constant was the foreign for enterprise million. to XX% as to exchange, million through XX% million

quarter, fourth to million EBITDA million last increased $XX.X adjusted $X.X $X.X the in XX% fourth or from In year’s quarter.

be in offices, the It’s momentum the of the strong. So very domestic. the enterprise division as continues international direct international generally to across as operation, parts operations all well

factors. those If of constant or revenue the again, through also, idea. These division, for at total of $X currency in $X.X our XX% play EBITDA Same education $XXX,XXX grew quickly Education grew patience division’s which same approximately million, you faster, fiscal you’ll accounted reflecting and just so or we’ll million, were detail XX% in XXXX. XX.X% the in adjusted even to factors division. go the get have education same

see education X% $XX.X division’s grew XX, to in constant Slide X.X%. in million currency you can grew revenue As

reduced flat last first the top same put amounts as enterprise, top lines accounting quarter. with transition the the reported strong division revenues approximately As division’s in deferred fourth were education education in revenue bottom more quarter, on the balance in sales to XXX and the by subscription lines year sheet growth benefited which the to the bottom fourth in and quarter and

last deferred the $XX.X the quarter, just year’s in division And year-end revenue the standard, X% at of note, XX% fourth would balance quarter. education have accounting in million division’s to grown Under increased large education revenue which reflecting sales the in sales quarter. makes the of million subscription the or division end education of balance $XX.X and third XXX% grew amount and the of last the the over

the good adjusted a high better. fourth in quarter. last which and And gross SG&A in of in There resulted This XX% really sales of in came with better in quarter, growth fourth XX% as high points year. was again in basis operating a than margins flow-through the XXX again, in XX%, growth basis came percentage XXX the improvement points EBITDA

breadth, within we’re that about the again the the operations of each both of divisions. excited really ability So broad-based was strength and the

gone other having the touch just through on now, two So me points. let the financials,

Factor of subscription-related is indicates our margin X XX, Slide sticky. the going in revenue – our that results. which growing you’re strength is sales driving see high to are This very it’s rapidly,

retaining enterprise and durable We’re it’s divisions. of substantially in both value customer all and it and the creating significant lifetime education

company’s and the Slide grew subscription All year. last subscribers XX.X% can than Pass paying of see in XX% to Pass and the and Access As related you sales Access All grew for our revenue year. compared more related XX, total number XX% grew

we of rapidly us achieving but Pass All is company reported it’s subscription in Access key the metrics in companies. As the top not the of putting some subscription past, only are that growing

that really services satisfaction As because shown rate an again is of levels they and throughout which They’re sales them to – in games leaders, us that exceeded XX%, things a whole performance, help add-on services hire for they’re – with hiring make retention they’re annual organization. or customer sure this Slide building correlated are include highly high high to increased an willing trust XX, to do XX% get to that these rate guest building must-win metrics revenue driving new retention done.

also less We unit we large of size which the for a level establishes typically foundation price and economics, strong the also is customer population have which Access is Pass purchase It X-to-X. All relatively which acquisition cost the than for a initial large reflects relatively purchased. have

strong really customer lifetime and value. change – sticky scale. margins, a retention also the slide, lifetime All price, is both can This creating is behavior on their revenue want creating addressing you challenges at challenges, organization. combination see Pass, of they significant all Access customers’ annual human are as revenue, our require gross services with giving and a on entire of Where – high customer high high XX, purchase solutions subscription We lasting services, add-on next which intractable at the most in value and across it performance

Helping organizations why are multi-year strategic successfully address solving. problems they’re they’re important on and entering increasingly creates us. with these challenges contracts services. that adding means into worth That’s and They’re durability

XXXX over XX, indicated leaders $XXX,XXX Pass company also just financial development example, Slide additional and with Access partners multi-year X,XXX-leader, world. the in In a a to us all their more provide services. to expanded services pass As All purchased leadership to large their add-on one in they than

our launched that we wanted Recently not pretty wanted something only to leaders, add much but new Bias was and while to Unconscious their whole population. offering they for they their

And content onto a the over Access All offering pass single X,XXX-leader which to Bias employees. added to an addition in so Pass their Unconscious special can All they they go Access pass, add to Pass XX,XXX called

leaders Access to or on increasingly performance to employee customer all but both their years. adding leaders our their of considering holders every They loyalty three front all of that leading populations also take reach All specific in pass All clients decide to extended training content our passes front-line Access who let’s because make they’re the they’re they Pass happens to Unconscious single-content are and want solution are Access All in Unconscious I’d significant Pass Maybe Pass to but their there to number Bias where their a to the our pass every term take customer are additions areas. they another want they line just for and note sales this salesperson, their drive a the say loyalty with Bias, an employees, training

people the content some for of skew subscribers lower specific buying comparability of tend relatively these at Because year-over-year you’ll populations a are it paid number will time who to a of area large our this, because have price. of over

on and number the subscribers, because it number. look related we we’re Access not We so clean on we think All will know, really it’s it for to like Pass want just but to we’re add-ons, total is will which All it will the to our skew – going make mean, it report better doing And future the that we’re but skew Access you keep of reason of Pass be and what that than it Access continue great selling exact in doing giving All revenues I Pass. we

customer that elements on Access highlights generating has two value, to durability. addition create In All Pass structural

and in passholders year And pay multi-year on as for least you First, increasing second, percentage All their Access into Pass Slide see a at XX, of full subscription purchasers advance. can an entering contracts. contract are

multi-year contract here to year an months XX% that fiscal passholder extended-term has XXXX, we’re might multi-year from contracts. or that on be number up larger XX is into entered of some even be For ago. a going XX% reporting actual There organizations whatever, but just contracts

division retention Me in education cycle and last XXXX, achieving year one K is In schools. Me Just very thing, XX% which our in this last the division. fiscal Leader our X,XXX metrics Leader our Leader schools XX quality a in number And value, from our increased similar our of high lifetime globe virtuous is Me we model a enjoys of enjoy the with primary year. subscription offering in through to around education rate similar of paid customer X,XXX

year. with For basis, year a from we global XX% a last fiscal on finished XXXX retention rate XX% of up the

and the XX%. of Leader also their rate retention schools Our rate retention a finished of licensee school in Me enjoy high partners a with

really great school a growth. upside for in in headroom America growth district, able Even districts to average and in schools Similar district we’ve Me within expand a Pass given an only are we in that the only school a to beachhead is in within to able Me in North on had with expand Leader Access to XXX the it Leader is education, tremendous had two but per we how strong continue in Leader the district. in provides where enterprise, All Me is XX,XXX a of approximately

business the development this, Valley, effort we Leader in in ago. former that example even United district community and the to school partnered how XX, single Pennsylvania, all the school in for can Me Lehigh of economy, in in The handle just you and years district eight reinvent a It see literacy. Way to Me the share steel-based Slide began bring an workforce the schools Leader students improve XXX with its with to to together can with

districts. has in all years eight past Leader of XX,XXX bring the schools to with the parents, done results, The to Leader and XX,XXX thrilled with neighboring that in to of Me community and expand is as it XX schools. Over are all Me achieving to expanded they When get the it it teachers, are XX the the are stated with they the students, bring the its evidenced plan a schools with is desire achieving then to – other to plan they they districts. what their schools to to by other expand

just to flow top-tier a really bringing sales cash growth and of XX at adjusted and of growth top-tier of the the rates subscription combination rare economics subscription-related that and Slide in is is customer time idea metrics all get in EBITDA generating with illustrative high three. same

factors these our in of opportunity us our value to shareholders. intersection For achieving the increases three accelerates for significant create

by expansion factor advantage sales addressable strong created our the economics model. aggressively number enormous that which we’re our the is taking the are total that market compelling expansion size three, by Finally, of force unit of is created opportunity business by and

on investment our partner. we’ve as of headroom new see growth client have in a payback in So period discussed with lot we quarters, for prior XX as an approximately in Slide can one-year you

Our sales are very compelling. force economics growth

advantage XX, have this are been taking and see, can aggressively of we opportunity. Slide you in As

of the thought we XXX at Last bring end of of from a XXXX. add we fiscal least the this net at the by of That new a XXXX year, client end of start expect year XXXX. XX fiscal ahead XXXX fiscal base partners of net in XXX bit to where progress client we our at XX end time of the by where the partners and by at total the new objectives and with that We fiscal fiscal partners XXX XX XXXX toward of would said fiscal XXX. to to total added we partners client made XXXX in of and end these client lot the new

benefiting sales Importantly Slide being are our also that above ramp customer our shown from lifetime generated the also various on of we’re achieving high by in offerings right-hand rate value hires and a side. cohorts the XX subscription

So factors revenue growth. that’s durable; taking are strategically our very advantage of of and ability rapidly high sticky, structurally sales going XX, three we’re rapidly in and idea driving conclusion, forward. third, very Slide and growing subscription to flow-through; our that the the accelerated force Again, grow

cash in So put trajectory to these we believe factors adjusted shareholder of that continued the three significant factors value. key combination that great on high achieving XXXX, EBITDA for a and growth significant has continue XXXX us beyond, these of and flow drive fiscal XXXX, and will

and new and are hiring performance to partners. achieve the enterprise capabilities. to time divisions in And and turn have both achieved resources I and are new Before services. successfully central expected on our portals, with the annual Both revenue ramping add-on again, have key up about both have client that other licensee subscription schools, division both also and both well. doing sales, and continue And becoming new models local services like adding more IT, achieving significant direct divisions subscription and to Both and human recurring making strong to each education high really operations, technology generating operations, subscription otherwise just Steve investments office over draw talk have are business they’re significant Both our more guidance, I growth. including want to other. mention indicators similar

they’re overall. support that better divisions for leveraging and both innovations, further this more our growth establishing kind best opportunities as by of there profitability divisions both that we well accelerate believe are As We central uniform practices by functions. exciting can both to across doing, some growth divisions of for company believe further the coordination and accelerate IT increase the and and

leveraging in addition help progress of this overall and capabilities president as responsibilities and as chief company for for of us to these serve to take facilitate we’ve the the officer advantage Paul division, To Walker’s opportunities across divisions. operating enterprise him president resources to asked

Covey, As vast overall education the huge serve who’s of key will of where utilizes for revenues committees our company’s you division as to division, strategy of phenomenal over majority president and central made also innovation many he rebuilding to Franklin enterprise of division member has accounts president is serve and years. continue done innovations and a know, the Covey’s XX% book of services. continue Paul the division the education will as the our contributions job enterprise approximately the Sean and and

our Both to officer Paul job respective divisions members are continue executive Sean running doing and and as recognize and the in Paul appointment both and want Sean overall. I company his president team. will and congratulate have chief the their as of to key operating tremendous on for Paul serve done

we long really your XX really that. partners to our And associates Covey. we and the Franklin that X,XXX and support We and had of the be approximately meeting time is at the trajectory we’re ago appreciate and and on. licensee excited our feel world, are throughout So great agreed a efforts not our kickoff about opportunities this everybody

Thank I’ll it you much. to guidance. Steve, turn very you for

Steve Young

you, Thank Bob. Okay. Good afternoon, everyone.

So, guidance.

adjusted increase a single high and to significant to we grow of digits in through revenue net portion at discussed, this As in in expect will a expect sales flow of increases rate fiscal that XXXX Bob EBITDA.

adjusted XXXX. $XX.X in fiscal million million range guidance between million of that in in $XX from therefore and to a XXXX Our is FY fiscal XXXX currency increase common $XX will EBITDA

growth range and adjusted from XX% growth really that think in XX%. represents rates between we in with EBITDA, Anywhere strong

growing rapidly. continue that to we’re high So have pleased flow-through we and

adjusted investments, first Now new to QX compared quarter. to in Despite significant last million we in expect EBITDA year, to our quarter. to million investments to $X.X up our approximately XX and grow by $X client in other partners the the still

So guidance. our that’s

touch also me matters a before couple it turn other of Bob. let back on to Now, I

A about little bit liquidity.

We liquidity have significant use also value. and to to additional create it tend shareholder

So four points related to liquidity.

significant in generated we cash flow fiscal First, XXXX.

portal XX% investments to million as $XX.X million client adding $XX.X discussed million year, from in functionality $XX.X already flows net million and XXXX we $XX.X or define our new increased after operating our even As last cash it, increased significant cash generated this in new a to making substantial partners. year FY growth of from and increased content, number activities

cash point, we the to the additional year. in flows in generate expect coming significant second So future

is cash year. discussed, net ongoing target content, million than etc., for investments is in to increase new by $XX As our portals, after still next generated more

have we liquidity. point, Third substantial

year that availability million on with facility. the sheet noticed and significant balance almost ended we cash have credit probably of $XX the our You under

And $XX million. the to fourth point stock authorization we expanded our repurchase is, recently

force which the priority make And earned first customer year. business has we’ll our in return the on in these new in investments each business. those strong to business Our we made investments accelerate the content, sales very and we’ve to that modes increase our strategic to have a portals enhancements and always growth significant growth, investments investments can in make and continue and been

to generate these we Even utilize still repurchase expect substantial and of still stock. investments, excess portion liquidity with to liquidity a meaningful this plan to excess

have liquidity. we So

only grant options One stock your unexercised. of just years of Almost interest. options, for received company the these outstanding. and has I additional a which all remain the point, Whitman XX options Bob one-time ago,

expire January. While to both we love these them would most in hold options, of continue to

shares. will consequence, just of Neither plans while to Bob open a options sell exercise any by these both as reflecting planning and will shares, need us when as company it us of the the know, exercise in sale show period. to is these pay wanted we you these next We to neither let a know and the of sale, options to I taxes. any to a three-week these purchase net that sell exercised As the you of

that past reach XX the board. from mandatory our Also, the retire retirement year years please be of of next will age directors for member board a and aware

XXbX-X director of to put place, this in that in planning, that intends sale program, put and stock place shares. a part selling retirement be As will some

So them. want to surprised these I to didn’t options do we by something with years, just XX that. cetera, cetera, et you need holding After et be for

Bob Whitman

Thank much, it you, everyone. Steve. With open questions. that, to we’ll you Thank very

Operator

from Martin Roth [Operator Thank from Capital. first you. Our comes Jeff Instructions] question

open. is line Your

Jeff Martin

guys. you? Good afternoon, How are Thanks.

Bob Whitman

How you? are

Jeff Martin

in and XXXX. Wanted or sticky. creation I’m investment items what content, on development those, your some if have and just of in doing then touch become is content investment either for us update sales, you those well. Thanks bought uptake some you or the and and I was what your could new helping on your in past give the an – lot. some a drive content so, are on wondering those to content pretty if year plan of additional

Bob Whitman

bet. You Historically, in every development we’ve invested new content about X% year.

at With increased of and kind X% settle we a to years X% the around in budget introduction for X% a or think in Me, it’ll or couple of All Access year. Pass and X% Leader that

but some and ongoing development or access functionality necessary or content. work, the licensing that and new we user really mundane acquisition the of on So that are substantial way etc., as include have the investments and things portals as end, to other customer these very

and year In a your three Critical important last One to Team. new half, content we’ve with additions or Great our Jhana Leading content, Manager, a Everyone the to Six acquisition is of a Deserves had really called, associated that’s Practices the for point.

new on our of have be to it’s leaders. key unit-level solution done, develop a We which best-selling book supports jobs focused but that is that one helping

And been good a hit. so really that’s

large second The pass of offering, All number are out has Bias the XX,XXX six really X,XXX. populations to mentioned, which had for Access is quite I some all this inside noted, going – having landed that they’re of is But Unconscious as really addition in been Pass employees a an about to months. we holder, where their it

significant has acquisition and X.X this us the division new multipliers. to this scalable Leader of as the as we to thing. or because of and effort which And re-architect Liz massive whole the districts happening added in more district. the that all The to in rights acquired new get make joint district want every a investment as weekly. their it But year. Me sticky, We’ve model These that. itself great versioning the to a this schools, two take that’s in has education gone in well to to Jhana content allows comes our added, been opportunity. out then big it made very Had one We’ve they love Me. what’s see So on we Wiseman’s we’ve Leader content

the that’s important later content. and know, – of now with – in of development one coming be of some year. we’re hopefully is a Liz, The pieces we’ll that’s across are if that this investments responsive, making you those out last things. so think But I that’s And range wide

existing refreshing Jeff? that also but We of is have content, helpful,

Jeff Martin

the slide. appreciate if referring I signed wondering call you was that. to Slide but just – if I’m I then Definitely, contracts late, And – got some on bit quite wondering of you a change I revenue. put was billed change I in little into fourth could XX, could fourth think a kind in that would the quarter quarter. there in the were perspective deferred grow would because and deferred revenue you things In bit that the the

I a for significant give that? All think last Pass, so on some Access pretty year’s fourth period quarter maybe had you perspective

Bob Whitman

Yes.

think things page, signed too, that this in I reflected unbilled contracts one on of the deferred the gets is revenue.

fourth multi-year in And in the all sales fourth our we prior essentially so multi-year, quarter, our quarter. of did years, of all the

helpful really that deferred the And was on edition. so unbilled

to know, sales throughout these deferred year. now if a is edition want way to is don’t we are and this year evenly do that. of selling. day-in, We Paul, – have this you This good what now spread the but we day-out, add unbilled just more I

effort And process. just we settle the said, a let’s quarter, to a to so rather than making everybody sign up get fourth in big for multi-year into

quarter press bit big that’s We And whole a not of have it’ll the decided throughout similarly – so historically a this hit it because run and at end big bunch year. a little anymore any presses we to at the end. to the had just first fourth

we Otherwise I what pretty that’s primary the So steady normally think with factor, Jeff. was it would do.

Jeff Martin

new their they recent you what year have know I hypothesize wondering hitting of marks? was your than progressed. then Okay. them hit with model? seeing your Are earlier Are class last them it’s… salespeople And how you

Bob Whitman

respond Let me and to Sean Paul ask to that…

Jeff Martin

that. Your experience thanks. Yes, with

Paul Walker

respond is for this enterprise, I’ll Paul.

really years. We’re last last this couple but the only pleased with year, of not

that a of – subscription with One we this when we happen model of happen things Bob pass. hoped to things we would the number moved as hoped mentioned we would all-access earlier

to client place. And the a particular has they’re those is be that trying are it case they of would One that those ramp we or because on prior we each in But that proving of that rates these of substantially that impact ramp about. all of from year the partners. for hit client partners in be to it of as revenue our see year with start new talk would a place, all all would faster subscription

partners. again saw It XXXX. And client a the year great so that in we for was new fiscal

reworked I process Just this think another about ago. a done, other for point we we’ve one client the really two talked on our of partners, that, or We’ve our things well. onboarding as call

now where they with so it’s used we time need to spending quite the And have into sure we’re XX amount put really they bit that to make – a them them, to of client partners successful. us paying we’re the hit for also, from XXXX with running new that’s be pleased so And what we off – and sure. Fiscal in the for we’re saw to ground everything

Sean Covey

I’ll Sean. just add – this is

what years. client of had that couple education. in with done sales in we management. growth, haven’t their And much putting pleased their the also we’ve rates partners and ramp the that we’ve So last place been been historically, We’ve

managers that ramp so district now, regional oversee And been client several managers, helping a and which we positive partners, has to thing. have very are

So we’re hire, months returns time. better we’re we we’ve partners education And feel got, net over eight since continuing and two hired we’ve last client the in to all onboarding good year, process our new in the like last getting is the new. getting because

And so future. the we’re about very gung-ho

Bob Whitman

were bunch The each of retaining and kind a be about than what’s Leader we all to Paul place rather happening in Me, All And when XXX, it generate million, know on Overall of of they’re ahead cohorts – the it. the for trajectory. Access ramp, on seems look same between the is cohort. X the course, you about for so overall been XXX, XX% the on, And that has in Sean. if XXXX XXXX puts them since first X, higher it’s you – they that slide substantially the the revenue Jeff, million, XX. thanks, we’ve And at year each losing cohort. a XXX, ramp, XXX, the Pass XXX, expected and hired And which

the the same. keeping goals We’re

So we’re numbers. those of XX% at ahead about

Jeff Martin

hear. to Thanks, guys. great That’s

Bob Whitman

Jeff. Thanks,

Operator

Your next Markets. Rodriguez Capital question comes Stonegate from Marco with

open. is line Your

Marco Rodriguez

Good my afternoon, guys. Hey. taking Thanks questions. for

Bob Whitman

you. Thank

Marco Rodriguez

the on but this the bit missed here the margins down was flattish more kind year-over-year a I you wondering guys year-over-year few that margin a points I you gross revenue if went about of if in basis sorry call, could as the well. saw, and gross quarter talk I’m little growth

versus figure the So you of out margin have revenue mix higher the higher in revenue, I’m kind drivers year. some last of presuming that to there. just obviously trying I’m

Bob Whitman

we a XX.X% whole that was because margin as services increased year maintained What revenue right-on we margin. that And year the this bit a the grew we the about our percentage, the mentioned over really quite though years. what is – even the that they’re some, both for earlier services gross we despite fact that during a little add-on talked was

Jhana. but all – company, by that the of service almost the to subscription investments But more sales, kept it’s division related some we less where You portal a terms retained as the so little in impacted it’s fourth overall – of increase additional primarily some related company by in we derivative same, a In education well reflected made overall launched services. higher that’s that’s had percentage the quarter the of as the for overall that. a a as margins, margins new they

Weekly called Me every it’s – and Me week. Leader faculty Leader to goes the – it’s in it’s in that But out administrators

those the we this affected won’t won’t again. not margin sheet. of quarter. quarter, in those – And balance then showed And were of of one-time the this up that that in this most division. little education two And saw they fourth so bit increasing it but investments, be the subscription on increase in revenue It’s a none kind high-margin like we all the

that it’s the which combination a the don’t some expect on margin and that the income we didn’t know, see increased all it this of – balance – the swallow quite the these investments in flattish, flow year, kept again, in revenue really the quarter, fact that high decline yet. that’s services happened we this signed through but of to bit to that decline more fourth statement that So sheet, you all is we won’t it education not

Marco Rodriguez

Very the opportunity helpful. and market in education have Then Can you the that division, with available to spent the under-penetration of or service. you guys you the that past time some about line terms talking the that you maybe overall in looking years, try of or you talk that more sort be for a market little might just at education within initiatives increase might the bit drivers about what next to couple penetration that division?

Sean Covey

it are in because of like biggest we’re two instead America, expand all, And and to They a with we has get about take about there of this we opportunity, XX,XXX we happened lowest-hanging time it, Sure. see district. had increasingly shared, district. Well, what’s district districts they And a further inside in the opportunity North kind in And is the fruit the the and is penetration. the XXX kind it of start and of want Canada. the U.S. And we them. of and as across in or school some of to feel taken penetrated districts. of first to us these some

opportunities we district, can for a it, of to we to do very and you give if them. decide many of easy Leader year, it adjusted they can to offering future, and so okay, our make we’ve you, districts the Made so you this do next next inside and the And certify Me year or it easier ways so expand. it’s to district-friendly self-implement. affordable We foreseeable more it with implementing, can do in we say, flexible

just now the with we’re that’s X.X new and last been district big in focus. focus selling this right Me months, So the few in Leader

districts the have average we’re about by penetration vary per two and They So in that’s between district in is probably districts. first opportunity On schools XX. size. only most and XX

XXX, right. are Some are some X and

grew started number past This focus this schools we’ve XXX And big into focus. new XXX to to Yeah. this well year, get the districts. district schools. so our We new the from year, is that’s one

years districts. really year-over-year. with additional new about what’s happy And Internationally, growth going XX% so happening upcoming like we’ve feel well. internationally with XXX as on about only brought and to it’s that’s on schools, accelerate that, the So we’re and we’re happy in focus with

So expensive penetration’s model X.X too I the year. has is Leader our the Me. it it think new to district-focused, more of of part it’s one the district one a and complaint also is up-front, part Because and be first a of combination been, is, you’re in focus going biggest flexible,

to spreads over that’s year. offering new a same It’s it get over it expensive but the the out made less still in. It’s easier amount we’ve So time. about first time,

flexible, I come months what This the offering seeing. we’ve the come really us and happy you’ve lot and issue. this districts in more is solved say, to several new with heard Just with hey, a last cost and we’re customers to two and we’re think affordable us

And big seeing districts. so opportunities we’re in

So that’s the plan.

Marco Rodriguez

then was the the ability if just through your cadence, year. And or you address about I as a hires wondering of cadence, maybe just could can expected ramp, maybe kind talk client lastly And then additional if more partners. client talk bit the progress partner little you if you could perhaps find to of about you

Paul Walker

us kickoff two hire their year. new very classes mentioned, for XX ramping is in about every quarter excited we client in which we to sales it great well, partners cohorts of year we XX quarterly. They’re Again, call additional tend we them feel the partners, as last five-week or partners added orientation, at of The net last partners, to this add try weeks client about. We’ll academy. new client least client we them. So

batch starting client another so have soon, here we partners And of actually coming in.

them equally – the space feel to throughout year, we as as try do. we we we So can. And

their a mentioned about their ramp and we development. great and we As that, feel minute ago

client at headquarters As far team as partners, have our Salt in sourcing here Lake. a recruiting we

people their this and five the between on profile partners find job who say client you’d have recruiters. is, is I who to we think of are think those too, coming. We increasingly, Sean, and the we in divisions. the And both think, And full-time we’re We right right years couple they’re increasingly more and the running hitting recently and and backgrounds quickly. candidate, very are hired of all very, getting last with our love ground strong very more client in great confident. we’ve zeroing partners,

Bob Whitman

in fifth you million you classes salespeople And year, net adding year know is the years, of if fifth by but XX add new a this, Marco, year first five the doing additional $XX for the revenue. – just

$XXX close to additional first two almost of ramp. adding million You’re are only classes the and revenue

thing as in is process. it sales getting invested this right. So in heavily, said, school, whole the in We’ve an the important Paul

Now days, it used to be And is now this a for we’ve few it’s heavily months. this a behind decade. – invested

position we million a least a last net the a at makes to where can we year. years but big add this like feel And we to growth $XX million $XX Now million like we’re $XX really that couple rates out. did this in – really difference

Marco Rodriguez

time. guys. lot, Appreciate your Thanks a

Bob Whitman

Thank you so much, Marco.

Operator

next Capital. question our And comes Patel from Samir Askeladden from

Your open. is line

Samir Patel

there’s how these of is brighter wonderful tighter, a know, Franklin move ago Bob performance actually talked really Paul, So, Covey client help this years campfires question, ask in I to couple top campfire and organizations want client those which you you metaphor, a about organizations, right. can

about people sitting to to you you some role, see, talk With your new Thanks. campfires of practices those that best So or that the and campfires. are you plan could more those regards organization? maybe around replicate those across how

Paul Walker

Good our Good company. Inside question. question.

and not of is, think, that as it’s for years well to can a inside ago made and think alive imagine, that We But this and it company. is about being as us we Sean our place. now a enterprise ago. clients. did have, working a move metaphor the We well. with his metaphor just it Covey in big enterprise I years Bob started have Then for transition So we is a right Franklin subscription business. a pieces think talk we relates we it the a to Me, years, Leader number all as before four right that you that that strategy. really these It’s the story in

that. right development have funding We behind right strategy, content the acquisition the

those you of pen will, you kind decide pieces, strokes the if do. those can to that things the of of All

all those execute, moving righter, all day an talk And really every that what campfires us. become tighter and bigger bonfires around place in the play become to to our to we it our is we have bonfires, than get, little better for and about speak we can the it for culturally really see We nice examples can And growing bonfires key so with this, where long example, but something of talk for UK now here. execution we’re starting is great and All a metrics a about. Pass really that. now a that of we the of been the and great to The doing hitting – had well, these example thriving it’s Access time business

we if everything accelerate. piece major we’ll that a say of to and for there on be that, – I of client what we ramp it us, so That’s almost continue answer question, The would of takes care that be righter one higher and us, strategy continue to that’s to right us. partners. else for get would do And specifically those your and it growth tighter, staying some are our for big of will and

continuing Second today to and our one retaining relationships client hire which for sell we as we’re doing is maintaining those clients, clients. then new partners those us is and what it’s we with

and the clients move to we process more They of we retain All a we more only And customer, become other do services. that’s that. that do we excellence, of But at and have towards we know where excellence. add once that for we things add that when process seats. we holder, not right, So They do that that we customer we grows. better have we want. an get with example the Access places and – have Pass need what an All they pockets

and ramp, be things do side. hiring around retaining content So clients. it The those the great we would

would those probably things three do. say how we big the all would I be to They’re three, so And know ones.

Samir Patel

understanding I’m if this so And correctly…

Paul Walker

ahead. Go Thank you.

Samir Patel

Go ahead. Finish.

Paul Walker

That’s going, know, we whole it, the things how to just we places, point get of all right? to started we how it say, get need fire know know you the they’re more to frequently. and As We do. more

Samir Patel

or best it’s it, would just to school how already kind client that how or you partner we how cohort cohort you clients, this the okay, just clients, know institutionalizing nothing or better other this than that sales – cohort it’s cohort, practices do? It’s organization? revolutionary, of the is that and finding like of So of say a selling are across is kind standardizing in of

Paul Walker

what That’s exactly it is.

They have somewhere of speech this. that’s every organizations. of in they do I and they we excellence uniform And know those where institutionally, how do things excellence. are fact, it’s great and kind on widespread. how But – where happening. more here. for and pockets the what become – day, doesn’t In Shawn thing we of really the It They organization, just that’s do They know giving have uniform pockets how most you’re Bob’s is focused widespread. to make

Bob Whitman

on four of are each metric they the key Samir, scoreboard, directors. there’s every the these There’s outcomes XX in managing tight of They and each a and metrics. have four a how month to see right

faster. trying it nudging and to little time at a we’re a so it nudge And

Samir Patel

thanks. Perfect,

Operator

from Cummins next from Riley. Zach B. Our comes question

Your line is open.

Zach Cummins

balance we expect the growth to going onto kind taking lot Hi. this be out to revenue in to everyone. just straight was quarter going here should sheet, just the QX, time to from growth questions. just quarter, quarter? – it you, Bob, with quarter ask Thanks of subscription to my that smooth this do Good revenue from having for a to with afternoon, flat going Or over I is of revenue fluctuation

Bob Whitman

used And know, what in the much year in think were the quarters. it. occurred EBITDA first It is pretty growth glad mean, quarters, that first three you I XX% be exactly – saying would in that didn’t for case. we the I three the the of year you’re to this

And more The every the growth revenue But in it we quarter. bigger continue. helps the in mean, so trend our that we’ll think put – will other subscription the the that quarter, books on recognize I I fourth less quarter.

increasing each year third increasing a as So decreasing the show our in forecasts we’ll occurs a second a there’ll amounts would fourth. EBITDA quarter. It’ll get and that first, quarter, the keep amount percentage – that percentage – year for and in nudging of total in be every we the the

think what it’s I and exactly So happen, happening. is will

Zach Cummins

that of the lower was on the you talk brought you drivers And then with on, it. Got to the down of the SG&A line surprised we that partners year-over-year Can QX? in sequential especially I was a about terms all client of basis. kind see here it SG&A saw in

Bob Whitman

Steve? bet. You

Steve Young

So of the our either that answer simple a is semi-fixed. fixed, portion SG&A good or is

those revenue grow and year, a So years, All for example. going cost. business, and transition good three through transitioning having proportional a the amount Pass as that two of we essentially the department, a those an specialist in maybe then areas, some years the Access portion adds we maybe costs. can added implementation without become The as increase We fixed to added a in we’re the costs

So is going of things. on a couple what’s

We are things. – well, three

are partners. We client new investing in

adding there. We’re money

in adding money We’re innovations.

like other and money adding we’ve find can that then that We’re through about. implementation we on side costs. efficiencies specialists. the finding in now some as in fixed to A reduce transition, gone And we’re actually other areas, our talked we’re the effectiveness costs I are of good portion

have costs that decreasing. that So and are we are increasing, costs cost fixed,

accelerated to that EBITDA we revenue growth. expect a a portion from have same we flow-through to good scenario of overall come of repeat And this our so

stays percentage a margin smaller smaller good and our gross of Our becomes revenue. and SG&A

Zach Cummins

be generated some all to cash. with M&A that’s final potential cash in generated being question potential then potentially stock. using It a really point, own or here uses approach just sounds still what’s around years, and the one there? Have of this back coming that And explored you of to buy like the that the expected your at

Steve Young

we’ve same the much Pretty about. as talked

excess the could could that we find this view. that, to Jhana holes that that business, the and very couple acquisitions. is investing we I the think see or we’re years. Robert valuable best business to content – would great past then incremental the could acquisitions what provide example, shareholders. both return the I would the in cash beneficial, first in and will believe the fill because doing to growth as add done the and extent my If will And said here, And that we anything be And we – to to in have small Gregory company. adding or always As we that like then fit an over we salespeople then do run to business, are acceleration the use and into were an well, if of acquisitions we

to continue a And back So incremental shareholders we’ve willingness cash, cash have return still to do expect through to we’ll that. that shown we stock. then and buying to

Bob Whitman

lot anything making, space add us and our lots and and a big, are – you Robert big such, things transformative in – of right we capabilities. now, going think But can lots like that or Jhana that are acquisitions and tremendous like bets. on, like, won’t There that, see lots there’s really there Gregory

and otherwise, X% content, We are Roberts, executive we’ve our between acquisitions, are of And team, uses. kind our content to on mentioned from radar, also and all small development. people’s boosted the on license who’s for content charge is Boyd X%. acquisitions investment with in our of business deals we as Those

the We’ve been business, tangible net of what rates the cash tangible to to the relative generate high kind invest able of flow we of very a asset. in assets, net return

we do a thing So if good that’d can it. be

time. have we’re like a we’ll be our have do. suspect beyond with likely I that to what to and even we lot cash to out being we feelers conceive, say, that, But of all the excess We we generated do, and have that quite can continuing – will applied

trajectory more total of million shareholders great shareholder base long that is we growth. a the more by think shares we existing like time. more of of As EBITDA XX you really high the know, flow over And of own on business cash we’ve idea continued. having period than a and It’s reduced our the and

Zach Cummins

and best luck end of Great. we my FYXXXX. Thanks as for questions, taking

Bob Whitman

you. Thank

Operator

Our Patel from Capital. next Askeladden Samir comes from question

is line Your open.

Samir Patel

incremental high partner, about best-in-class, period payback and it’d but type the that the the new like on It Have put haven’t be revenue disclosed an LTV-to-CAC retention of into and metric? one-year margin. guys together XX% it. you obviously actually talked You seems client you

Bob Whitman

less X-to-X – I it’s your is said but but exactly We have. think We right. than point

part that’s these infrastructure so infrastructure. people. these mean, built whole exactly who the taken that’s though the that it’s really are and ramp not But I But up It’s managing years the it’s it. school build is easy. think can I yeah, mentor the why we really unit to but sales compelling easier even this economics, building directors of all

customer ratio of that value to so And cost. acquisition the lifetime customer

that of say, are us, a population, the costs amount first because size For the our of is X-to-X. the price well our sale and as the combination substantial pretty initial you of than acquisition less of fact

So we metric. that’s a think compelling

Samir Patel

Thanks.

Bob Whitman

Thanks.

Operator

Blair. Nicholas Our comes Andrew from from next question William

open. is line Your

Andrew Nicholas

afternoon. Good Hi.

Bob Whitman

How you? There are you go.

Andrew Nicholas

Great.

lot questions you appreciate in. have but squeezing asked, been a of my So me I

you was maybe in talk maybe on given do the you the have the going any are in the across regions. And and could I think then performance Where Are forward? those engagement of Just UK uncertainty some you most in opportunity any particularly client Europe quarter color well right one, hoping geographies. regions little there the now? different a about growing that bit

Bob Whitman

Thanks. go. Paul, you might want to

Paul Walker

and pleased, success even mentioned different fourth all we’re – year our So in broad-based results and Bob quarter, operations. from the earlier, and of all result quite

years that’s growth growth. the we operation ago. license earlier of be a reason The see think a operations. a We year, one good and Areas China. thing to year, Austria fiscal Germany, strong really for one that had lot headroom did in Very point. us. Switzerland converted broad-based. expect We same there’s there December, future, in would that great we really our so the this a a few where to from with Everybody And direct

out license run of the managed formerly direct, So that UK being us. ours, was and now operation a of for is

as opportunity potential a – So growth we see also. that good potential

and else that great network that economies the So we now of cover have major world us helps kind then the in everywhere this direct, the licensee are in world.

in what’s UK really That all in Europe, and despite on great the to going Specifically there UK – had and well. questions happen. the Brexit the actually we is a growing year business we

growing One while that which we’re still is we in most us probably things, the nicely a the of like of anywhere true think, in this serve. underpenetrated I we UK, very benefits operate, place markets we’re the and of in is

going even choppiness headroom And us there well. on to if as so grow there’s for is the

that just We’re not big.

as operations. grow. saw now the it’s along think And so happen to that we year Switzerland all and and we in that’ll well in being UK that way of run allows our the us Germany, that chug We run this to to continue Austria and direct

Operator

for the remarks. And call this I’ll to Bob turn concludes the question-and-answer Whitman session. over back final

Bob Whitman

just each you with being us we thank to want Great. for of Well, on today. the call

for you and thank guidance and we feel We the and we have tremendous premium your a of team throughout importantly, forth support people like the More company. over coaching so years.

– on answer, today, company thing. the a position we’ll the Occasionally a yellows have say, major those that’s the is all or scoreboard, right we positions. we big seat two the the and – right have green the is the and person one every of kind critical bus a we on have that And with on one of We critical but where are we key positions. them, do in have work

and for spent $XX is so value time services our a Access that’s increasing other that, clients or All where performance an forth at outsourced alone, and us down to we’re improvement and we it business, a the and narrow Pass primarily we’re XX – and Second, fragmented billion content to we’ve with in a win proposition more have to suppliers and their greater And decided take who of of one supplier. position more and and us share greater that. and many got in

so And a we opportunity. great think it’s

beyond. to to our and grateful about partners where the about prospects feel as great chance have we are, you the XXXX for and We’re have in this

us for much joining very today. thanks So

Operator

participating Thank concludes disconnect. you, ladies you now may and you gentlemen. and This for conference. Thank today’s

Franklin Covey (FC) 9 Nov 192019 Q4 Earnings call transcript