NASDAQ$FNKO

Funko Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Funko's Q4 2021 earnings exceeded expectations, driven by strong sales growth across all segments and geographies.

Funko reported a strong fourth quarter in 2021, with net sales increasing by 48% to $336.3 million. Net income increased 17% to $17.4 million, and adjusted EBITDA increased 17% to $38.9 million. The company achieved over $1 billion in annual sales for the full fiscal year.

  • Net sales increased 48% year-over-year to $336.3 million.
  • Net income increased 17% to $17.4 million.
  • Figures revenue grew 50% year-over-year to $255.1 million.
  • U.S. net sales increased 47% year-over-year to $252.9 million.

Headline financials

Total Revenue

$336M

Previous: $227M+48.5%
EPS (adj)

$0.38

Previous: $0.29+31.0%
Gross Margin

33.9%

Previous: 37.2%-8.9%
Capital Expenditures

$10.3M

Previous: $3.78M+173.3%
Free Cash Flow

-$1.76M

Previous: $43.1M-104.1%
Net Income

$17.4M

Previous: $14.9M+16.8%
Operating Income

$25.2M

Previous: $20.2M+25.0%
Gross Profit

$114M

Previous: $84.2M+35.7%
Cash & Equivalents

$83.6M

Previous: $52.3M+59.9%
Total Assets

$968M

Previous: $764M+26.7%
Stock-Based Comp

$3.13M

Previous: $2.62M+19.2%

Revenue & EPS history

Funko · Revenue · Quarterly

$336M

Q4 2021+48.5%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Funko · $336M total across 2 segments · Q4 2021

  • Core Collectible
    $255M+49.9%
  • Other
    $81.1M+218.1%

Forward guidance

The Company expects net sales growth of 20% to 25% for the full fiscal year 2022, with adjusted EPS of $1.75 to $1.91.

Tailwinds

  • Net sales growth of 20% to 25%.
  • Q1'22 net sales in the mid-40% range.
  • Adjusted EBITDA margin in the range of FY2021.
  • Adjusted Net Income of $95.8 million to $104.8 million.
  • Adjusted Earnings per Diluted Share of $1.75 per to $1.91.

Headwinds

  • Ongoing trans-ocean freight inflation.
  • Approximately 80 bps of headwind from one-time project spend associated with the consolidation and relocation of our U.S.-based distribution center and the implementation of our new ERP system.
  • Freight rates will remain elevated at least through the first half of the year.
  • Gross margins to face a similar headwind to the second half of 2021.
  • SG&A as a percent of sales is also expected to be slightly higher in the first half of the year due to the timing of project costs.

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 Q4 2021

Historical avgQ4 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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