Funko Q2 2022 Earnings Report
Key Takeaways
Funko reported a record second quarter with net sales of $315.7 million, a 33.7% increase year-over-year. This growth was driven by broad-based strength across all geographies and brand categories. However, net income declined by 24.6% to $15.8 million, and adjusted EBITDA decreased by 22.7% to $31.8 million.
Net sales increased 33.7% year-over-year to $315.7 million.
Net income declined 24.6% year-over-year to $15.8 million.
Loungefly brand recorded net sales of $70.0 million, a 114% year-over-year increase.
Direct-to-consumer sales grew 26% year-over-year.
Funko
Funko
Funko Revenue by Segment
Funko Revenue by Geographic Location
Forward Guidance
Funko expects net sales of $1.30 to $1.35 billion (+26% to +31% y/y), Adjusted EBITDA margin of approximately 14.6%, Adjusted Net Income of $101.8 million to $107.3 million, and Adjusted Earnings per Diluted Share of $1.88 to $1.99 for the full year 2022.
Positive Outlook
- Net sales of $1.30 to $1.35 billion (+26% to +31% y/y)
- Adjusted EBITDA margin of approximately 14.6% at the midpoint of our revenue range
- Adjusted Net Income of $101.8 million to $107.3 million, based on a blended tax rate of 25%
- Adjusted Earnings per Diluted Share of $1.88 to $1.99, based on estimated adjusted average diluted shares outstanding of 54.1 million for the full year.
- Based on the current demand environment and assuming the Company doesn't experience a deepening of supply chain congestion
Challenges Ahead
- Company doesn't experience a deepening of supply chain congestion