NASDAQ$FNKO

Funko Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Funko's second quarter results exceeded expectations, driven by strong demand for core collectible products and solid growth in the direct-to-consumer business.

Funko reported strong second-quarter results, with net sales, gross margin, and adjusted EBITDA all exceeding expectations. The company saw strong demand for core collectible products, particularly in Europe and other international markets, as well as solid growth in its direct-to-consumer business. Funko reiterated its full-year outlook for 2024.

  • Net sales were $247.7 million, compared to $240.0 million in the same quarter of the prior year.
  • Gross profit was $104.0 million, with a gross margin of 42.0%, compared to $70.0 million and 29.2% respectively in the prior year.
  • Net income was $5.4 million, or $0.10 per diluted share, compared to a net loss of $75.9 million, or $1.54 per share in the prior year.
  • Adjusted EBITDA was $27.9 million, compared to negative adjusted EBITDA of $7.6 million in the prior year.

Headline financials

Total Revenue

$248M

Previous: $240M+3.2%
EPS

$0.10

Previous: -$0.43+123.3%
Gross Margin

42.0%

Previous: 29.2%+43.8%
Adjusted EBITDA Margin

11.3%

No prior period
Capital Expenditures

-$13.3M

Previous: -$22.7M+41.6%
Free Cash Flow

-$8.15M

Previous: -$95.7M+91.5%
Net Income

$5.12M

Previous: -$73M+107.0%
Operating Income

$10.7M

Previous: -$30.5M+135.2%
Gross Profit

$104M

Previous: $70M+48.6%
Cash & Equivalents

$41.6M

Previous: $36.8M+12.8%
Total Assets

$738M

Previous: $898M-17.8%
Stock-Based Comp

$3.28M

Previous: $4.8M-31.7%

Revenue & EPS history

Funko · Revenue · Quarterly

$248M

Q2 2024+3.2%vs Q2 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Funko · $313M total across 3 segments · Q3 2023

  • Core Collectible
    $233M-17.4%
  • Loungefly
    $57.4M-3.6%
  • Other
    $22.2M-5.9%

Forward guidance

The company reiterated its 2024 full-year outlook, which assumes, among other things, a strong holiday season, and provided guidance for its 2024 third quarter, which reflects, in part, a pull forward of an estimated $9 million in net sales and $2.5 million of adjusted EBITDA into its 2024 second quarter from the 2024 third quarter.

Tailwinds

  • Net Sales $1.047 billion to $1.103 billion
  • Adjusted EBITDA $65 million to $85 million
  • Gross margin % 38% to 39%
  • Adjusted net income $0.5 million to $3 million
  • Adjusted net income per diluted share $0.01 to $0.06

Headwinds

  • SG&A expense, in dollars $90 million to $95 million
  • Equity-based compensation of approximately $4 million
  • Depreciation and amortization of approximately $16 million
  • Interest expense of approximately $4 million
  • Adjusted EBITDA $21 million to $25 million

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 2024

Historical avgQ2 2024

+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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