NASDAQ$FNKO

Funko Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Funko reported a record quarter with sales up 40.0% driven by broad-based strength across products, channels, and geographies.

Funko reported strong Q3 2021 results with net sales increasing by 40.0% year-over-year to $267.7 million and net income increasing by 17.8% to $18.4 million. The company exceeded Q3 expectations and raised full year guidance despite supply chain headwinds.

  • Net sales increased 40.0% year-over-year to $267.7 million.
  • Net income increased 17.8% year-over-year to $18.4 million.
  • All-time high demand levels drove broad-based strength in all geographies.
  • Direct-to-consumer sales increased 88% year-over-year and now comprise 11% of net sales.

Headline financials

Total Revenue

$268M

Previous: $191M+40.0%
EPS (adj)

$0.39

Previous: $0.31+25.8%
Gross Margin

36.0%

Previous: 38.6%-6.7%
Adjusted EBITDA Margin

15.0%

Previous: 18.9%-20.6%
Capital Expenditures

-$17.4M

Previous: -$14.7M-18.6%
Free Cash Flow

-$5.53M

Previous: -$4.91M-12.7%
Net Income

$11.9M

Previous: $9.8M+21.5%
Operating Income

$26.2M

Previous: $20.7M+26.7%
Gross Profit

$96.4M

Previous: $73.7M+30.8%
Cash & Equivalents

$93.2M

Previous: $31.9M+192.3%
Total Assets

$915M

Previous: $763M+19.9%
Stock-Based Comp

$3.66M

Previous: $2.46M+48.9%

Revenue & EPS history

Funko · Revenue · Quarterly

$268M

Q3 2021+40%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
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 expects net sales of $950 million to $975 million, Adjusted EBITDA margin of 14.0% to 14.5%, Adjusted Net Income of $64.4 million to $70.4 million, and Adjusted Earnings per Diluted Share of $1.20 to $1.31 for the full year 2021.

Tailwinds

  • Net sales of $950 million to $975 million
  • Adjusted EBITDA margin of 14.0% to 14.5%
  • Adjusted Net Income of $64.4 million to $70.4 million
  • Adjusted Earnings per Diluted Share of $1.20 to $1.31
  • Based on estimated adjusted average diluted shares outstanding of 53.9 million for the full year.

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 Q3 2021

Historical avgQ3 2021

+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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