Funko Q1 2020 Earnings Report
Key Takeaways
Funko reported a decrease in net sales by 18% to $136.7 million, impacted by a weaker content lineup and COVID-19. Gross margin increased by 240 basis points to 40.4%. The company experienced a net loss of $5.7 million, with an adjusted EBITDA of $10.6 million and adjusted EBITDA margin of 7.8%. The company expects COVID-19 impacts to intensify in Q2 2020.
Net sales decreased 18% to $136.7 million.
Gross margin increased 240 basis points to 40.4%.
Net loss of $5.7 million was reported.
Adjusted EBITDA was $10.6 million with a 7.8% margin.
Funko
Funko
Funko Revenue by Geographic Location
Forward Guidance
Given the continued and uncertain duration of the impacts from COVID-19 on Funko’s business, the Company is not issuing updated guidance at this time. The Company anticipates the greatest impact from COVID-19 in fiscal 2020 will occur in the second quarter.
Positive Outlook
- Remaining nimble and pivoting as needed to adapt to changes in content release dates.
- Adapting to the needs of retail partners as they navigate customer capacity limits and the timing of reopenings.
- Directing greater resources toward e-commerce growth strategy.
- Building a robust online platform.
- Developing a more powerful selling model and broadening product catalog on Funko.com.
Challenges Ahead
- Continued and uncertain duration of the impacts from COVID-19 on Funko’s business.
- Company is not issuing updated guidance at this time.
- Anticipates the greatest impact from COVID-19 in fiscal 2020 will occur in the second quarter.