NASDAQ$FNKO

Funko Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Net sales, adjusted net income and adjusted EBITDA exceeded expectations, driven by strong direct-to-consumer sales and improved sales to wholesale customers.

Funko reported net sales of $312.9 million for the third quarter of 2023, compared to $365.6 million in the third quarter of 2022. The company's adjusted net income was $1.7 million, or $0.03 per diluted share, and adjusted EBITDA was $25.4 million.

  • Net sales were $312.9 million, a decrease compared to $365.6 million in Q3 2022.
  • Gross profit was $104.0 million with a gross margin of 33.2%, including $6.4 million in charges related to factory purchase order cancellations.
  • Net loss was $15.0 million, or $0.31 per share, compared to a net income of $9.6 million, or $0.19 per diluted share, in Q3 2022.
  • Adjusted EBITDA was $25.4 million, exceeding expectations.

Headline financials

Total Revenue

$313M

Previous: $366M-14.4%
EPS (adj)

$0.03

Previous: $0.28-89.3%
Gross Margin

33.2%

Previous: 35.0%-5.1%
Capital Expenditures

-$30.9M

Previous: -$46.9M+34.2%
Free Cash Flow

-$45.9M

Previous: -$37.3M-23.0%
Net Income

-$15M

Previous: $9.63M-255.9%
Operating Income

-$5.45M

Previous: $17.4M-131.3%
Gross Profit

$104M

Previous: $128M-18.7%
Cash & Equivalents

$31.9M

Previous: $25.1M+27.3%
Total Assets

$880M

Previous: $1.14B-22.6%
Stock-Based Comp

-$916K

Previous: $4.68M-119.6%

Revenue & EPS history

Funko · Revenue · Quarterly

$313M

Q3 2023-14.4%vs Q3 2022
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 narrowed the net sales range of its 2023 full-year outlook and provided guidance for its 2023 fourth quarter.

Tailwinds

  • Gross margin % Increasing sequentially from Q3
  • SG&A expense, in dollars Decreasing sequentially from Q3

Headwinds

  • 2023 Full Year Net Sales $1.065 billion to $1.105 billion
  • Adjusted EBITDA* $20 million to $30 million
  • Net sales $260 million to $300 million
  • Adjusted net income (loss)*($4.2) million to $2.8 million
  • Adjusted net income (loss) per share*($0.08) to $0.05

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 2023

Historical avgQ3 2023

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro