NASDAQ$FNKO

Funko Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Funko's Q4 2023 financial results were reported, showing net sales and adjusted EBITDA at the upper end of expectations, driven by DTC growth and operational improvements.

Funko reported a decrease in net sales compared to the previous year, but gross margin improved significantly. The company's DTC business grew, and inventory levels were substantially reduced. Despite facing headwinds, Funko anticipates bottom-line improvements in 2024.

  • Net sales were $291.2 million, a decrease from $333.0 million in the same quarter of the previous year.
  • Gross margin increased to 37.6% compared to 28.3% in the prior year.
  • DTC business accounted for 26% of revenue and increased nearly 30% year-over-year.
  • Inventory levels were reduced to $119 million from $246 million at the end of the previous year.

Headline financials

Total Revenue

$291M

Previous: $333M-12.6%
EPS (adj)

$0.01

Previous: -$0.35+102.9%
Gross Margin

37.6%

Previous: 28.3%+32.9%
Adjusted EBITDA Margin

8.1%

No prior period
Capital Expenditures

-$4.27M

Previous: $12.2M-134.9%
Net Income

-$10.8M

Previous: -$46.7M+77.0%
Operating Income

-$3.4M

Previous: -$58.1M+94.1%
Gross Profit

$109M

Previous: $94.3M+16.0%
Stock-Based Comp

$3.01M

Previous: $4.59M-34.4%

Revenue & EPS history

Funko · Revenue · Quarterly

$291M

Q4 2023-12.6%vs Q4 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

Funko provided its 2024 full-year outlook and 2024 first-quarter guidance.

Tailwinds

  • Net Sales $1.047 billion to $1.103 billion
  • Adjusted EBITDA $65 million to $85 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 Q4 2023

Historical avgQ4 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

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