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Mar 31, 2024

Funko Q1 2024 Earnings Report

Funko's Q1 2024 financial performance was reported, with net sales within guidance, and gross margin and adjusted EBITDA exceeding expectations. A new CEO, Cynthia Williams, was appointed, effective May 20, 2024.

Key Takeaways

Funko reported solid Q1 2024 financial results, with net sales of $215.7 million, gross margin of 40.0%, and adjusted EBITDA of $9.6 million. The company reiterated its full-year 2024 guidance.

Net sales were $215.7 million, a decrease from $251.9 million in the same period last year.

Gross profit was $86.3 million, resulting in a gross margin of 40.0%, compared to 19.7% in Q1 2023.

Net loss was $23.7 million, or $0.45 per share, compared to a net loss of $61.1 million, or $1.17 per share, in the prior year.

Adjusted EBITDA was $9.6 million, an improvement from negative adjusted EBITDA of $14.0 million in the same quarter last year.

Total Revenue
$216M
Previous year: $252M
-14.4%
EPS
-$0.17
Previous year: -$0.49
-65.3%
Gross Margin
40%
Previous year: 19.7%
+103.0%
Gross Profit
$86.3M
Previous year: $49.6M
+74.1%
Cash and Equivalents
$26.1M
Previous year: $34.8M
-25.0%
Free Cash Flow
$10.4M
Previous year: -$43M
-124.1%
Total Assets
$725K
Previous year: $1.06B
-99.9%

Funko

Funko

Funko Revenue by Segment

Funko Revenue by Geographic Location

Forward Guidance

Funko reiterated its 2024 full-year outlook and provided guidance for its 2024 second quarter.

Positive Outlook

  • Net Sales: $225 million to $240 million
  • Gross margin %: 38% to 40%
  • Adjusted EBITDA: $9 million to $15 million

Challenges Ahead

  • Adjusted net loss: $8 million to $4 million
  • Adjusted net loss per share: $0.15 to $0.08
  • SG&A expense, in dollars: $80 million to $85 million