NASDAQ$FNKO

Funko Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Funko reported solid financial results, with net sales at the top end of guidance and better-than-expected profitability due to improved gross margins.

Funko reported Q3 2024 financial results with net sales of $292.8 million and net income of $4.6 million. The company updated its full-year 2024 outlook, expecting net sales to be at the low end to slightly below the previous range and raising the full-year outlook for Adjusted EBITDA to above the high end of the range.

  • Net sales were $292.8 million, compared to $312.9 million in the prior year.
  • Gross profit was $119.8 million, with a gross margin of 40.9%, compared to $104.0 million with a gross margin of 33.2% in the prior year.
  • Net income was $4.6 million, or $0.08 per diluted share, compared to a net loss of $16.2 million, or $0.31 per share in the prior year.
  • Adjusted EBITDA was $31.0 million, compared to $25.4 million in the prior year.

Headline financials

Total Revenue

$293M

Previous: $313M-6.4%
EPS

$0.08

Previous: $0.03+166.7%
Capital Expenditures

-$20.8M

Previous: -$30.9M+32.6%
Free Cash Flow

-$16.5M

Previous: -$45.9M+64.1%
Net Income

$4.33M

Previous: -$15M+128.8%
Operating Income

$11.7M

Previous: -$5.45M+315.4%
Gross Profit

$120M

Previous: $104M+15.2%
Cash & Equivalents

$28.5M

Previous: $31.9M-10.5%
Total Assets

$784M

Previous: $880M-11.0%
Stock-Based Comp

$3.43M

Previous: -$916K+474.5%

Revenue & EPS history

Funko · Revenue · Quarterly

$293M

Q3 2024-6.4%vs Q3 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

Funko provided guidance for its 2024 fourth quarter, including net sales between $280 million and $294 million, gross margin between 38% and 40%, and adjusted EBITDA between $17 million and $22 million. The company lowered the range for net sales and raised the range for adjusted EBITDA for full year 2024.

Tailwinds

  • Gross margin %: 38% to 40%
  • Adjusted net income (loss)*: ($3) million to $1 million

Headwinds

  • Net sales: $280 million to $294 million
  • SG&A expense, in dollars: $93 million to $99 million
  • Adjusted net income (loss) per diluted share*: ($0.05) to $0.02
  • Adjusted EBITDA*: $17 million to $22 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 Q3 2024

Historical avgQ3 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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