NASDAQ$FNKO

Funko Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record second quarter net sales driven by broad-based strength across brands, channels, and geographies.

Funko reported a record second quarter with net sales of $315.7 million, a 33.7% increase year-over-year. This growth was driven by broad-based strength across all geographies and brand categories. However, net income declined by 24.6% to $15.8 million, and adjusted EBITDA decreased by 22.7% to $31.8 million.

  • Net sales increased 33.7% year-over-year to $315.7 million.
  • Net income declined 24.6% year-over-year to $15.8 million.
  • Loungefly brand recorded net sales of $70.0 million, a 114% year-over-year increase.
  • Direct-to-consumer sales grew 26% year-over-year.

Headline financials

Total Revenue

$316M

Previous: $236M+33.7%
EPS (adj)

$0.26

Previous: $0.40-35.0%
Gross Margin

32.7%

Previous: 39.0%-16.2%
Adjusted EBITDA Margin

10.1%

Previous: 17.4%-42.0%
Capital Expenditures

-$33.7M

Previous: -$10.1M-232.9%
Free Cash Flow

-$19M

Previous: $3.69M-616.7%
Net Income

$14.7M

Previous: $13.8M+6.2%
Operating Income

$8.94M

Previous: $27.3M-67.2%
Gross Profit

$103M

Previous: $92.4M+11.7%
Cash & Equivalents

$56.2M

Previous: $95.5M-41.1%
Total Assets

$1.14B

Previous: $847M+34.5%
Stock-Based Comp

$3.95M

Previous: $3.52M+12.3%

Revenue & EPS history

Funko · Revenue · Quarterly

$316M

Q2 2022+33.7%vs Q2 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Funko · $316M total across 3 segments · Q2 2022

  • Core Collectible
    $233M+24.5%
  • Loungefly
    $70M+136.5%
  • Other
    $12.7M-74.0%

Forward guidance

Funko expects net sales of $1.30 to $1.35 billion (+26% to +31% y/y), Adjusted EBITDA margin of approximately 14.6%, Adjusted Net Income of $101.8 million to $107.3 million, and Adjusted Earnings per Diluted Share of $1.88 to $1.99 for the full year 2022.

Tailwinds

  • Net sales of $1.30 to $1.35 billion (+26% to +31% y/y)
  • Adjusted EBITDA margin of approximately 14.6% at the midpoint of our revenue range
  • Adjusted Net Income of $101.8 million to $107.3 million, based on a blended tax rate of 25%
  • Adjusted Earnings per Diluted Share of $1.88 to $1.99, based on estimated adjusted average diluted shares outstanding of 54.1 million for the full year.
  • Based on the current demand environment and assuming the Company doesn't experience a deepening of supply chain congestion

Headwinds

  • Company doesn't experience a deepening of supply chain congestion

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+4.2%

Avg return

30 days after

56%

19 / 34 earnings

Positive

+25.1%

Q1 2020

Best reaction

-59.2%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.6%+26.3%+16.2%
Q4 2025-4.0%-18.6%-15.3%
Q3 2025+10.3%+22.2%-0.3%
Q1 2025-16.5%+11.7%+14.5%
Q4 2024-13.5%-28.8%-49.3%
Q3 2024-3.4%-9.2%+0.9%
Q2 2024+11.7%+11.0%+11.6%
Q1 2024+8.9%+28.2%+43.5%
Q4 2023+7.0%-0.8%-10.6%
Q3 2023+22.1%+9.6%-5.0%
Q2 2023-13.2%-12.7%-4.4%
Q1 2023+15.0%+13.5%+27.4%
Q4 2022-8.0%-9.6%-12.8%
Q3 2022-59.2%-47.1%-45.8%
Q2 2022-19.2%-22.0%-23.1%
Q1 2022+19.5%+8.9%+21.7%
Q4 2021+9.5%-4.0%-1.6%
Q3 2021+10.8%+8.1%-7.6%
Q2 2021-3.3%-5.0%-0.5%
Q1 2021+19.1%+9.5%+10.2%
Q4 2020+23.0%+24.3%+58.0%
Q3 2020-9.4%+12.0%+63.2%
Q2 2020-4.8%+2.9%+2.6%
Q1 2020+25.1%+18.4%+88.1%
Q4 2019-8.1%-17.5%-57.8%
Q3 2019-12.7%-16.1%-18.0%
Q2 2019+10.0%+9.1%+8.1%
Q1 2019+3.4%+9.7%+4.6%
Q4 2018+3.8%-6.7%+7.8%
Q3 2018-25.3%-25.7%-31.5%
Q2 2018+8.5%+7.3%+50.3%
Q1 2018+2.5%+3.5%+28.4%
Q4 2017+7.1%+13.0%+3.4%
Q3 2017-10.7%-17.2%-34.7%
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015

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