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Jun 30, 2024
Funko Q2 2024 Earnings Report
Funko's second quarter results exceeded expectations, driven by strong demand for core collectible products and solid growth in the direct-to-consumer business.
Key Takeaways
Funko reported strong second-quarter results, with net sales, gross margin, and adjusted EBITDA all exceeding expectations. The company saw strong demand for core collectible products, particularly in Europe and other international markets, as well as solid growth in its direct-to-consumer business. Funko reiterated its full-year outlook for 2024.
Net sales were $247.7 million, compared to $240.0 million in the same quarter of the prior year.
Gross profit was $104.0 million, with a gross margin of 42.0%, compared to $70.0 million and 29.2% respectively in the prior year.
Net income was $5.4 million, or $0.10 per diluted share, compared to a net loss of $75.9 million, or $1.54 per share in the prior year.
Adjusted EBITDA was $27.9 million, compared to negative adjusted EBITDA of $7.6 million in the prior year.
Funko
Funko
Funko Revenue by Segment
Funko Revenue by Geographic Location
Revenue by Segment
Core Collectible Revenue
CapyFin.comLoungefly Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comEurope Revenue
CapyFin.comOther International Revenue
CapyFin.com Forward Guidance
The company reiterated its 2024 full-year outlook, which assumes, among other things, a strong holiday season, and provided guidance for its 2024 third quarter, which reflects, in part, a pull forward of an estimated $9 million in net sales and $2.5 million of adjusted EBITDA into its 2024 second quarter from the 2024 third quarter.
Positive Outlook
- Net Sales $1.047 billion to $1.103 billion
- Adjusted EBITDA $65 million to $85 million
- Gross margin % 38% to 39%
- Adjusted net income $0.5 million to $3 million
- Adjusted net income per diluted share $0.01 to $0.06
Challenges Ahead
- SG&A expense, in dollars $90 million to $95 million
- Equity-based compensation of approximately $4 million
- Depreciation and amortization of approximately $16 million
- Interest expense of approximately $4 million
- Adjusted EBITDA $21 million to $25 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income