Funko Inc · Q1 2023 earnings

Briefing

Funko reported a net sales decrease, a significant increase in net loss, and advancements in cost-saving measures.

Funko reported a decrease in net sales by 18% to $251.9 million, a significant increase in net loss to $61.1 million, and an adjusted EBITDA loss of $14.0 million. However, the company saw a 61% sales increase in its direct-to-consumer channel and launched successful new products. They are raising the midpoint of their outlook for adjusted EBITDA for the full year.

• Net sales decreased by 18% to $251.9 million.
• Net loss increased by 521% to $61.1 million.
• Direct-to-consumer net sales grew 61% year-over-year.
• Adjusted EBITDA loss increased 139% to $14.0 million.

Headline financials

Revenue & EPS history

For the second quarter of 2023, the Company expects net sales of $240 million to $260 million, sequential gross margin improvement, SG&A approximately in line with the first quarter, Adjusted EBITDA of a loss of $10 million to break even, and Adjusted Net Loss of $24 million to $16 million. For the full year 2023, the Company expects net sales to decline year-over-year between 10% and 5%, and Adjusted EBITDA for the year to be between $65 million and $75 million.