Funko Q3 2020 Earnings Report
Key Takeaways
Funko reported Q3 2020 financial results with net sales of $191.2 million. Strong gross margins and cost controls drove increased profitability, with a net income of $15.6 million and an adjusted EBITDA of $36.2 million.
Strong consumer demand within the domestic mass-market and third party e-commerce channels.
Funko’s direct-to-consumer e-commerce sales increased more than 150% compared to prior year.
Loungefly branded products grew 25% compared to prior year, driven by strong momentum on Loungefly.com and within wholesale channels.
70% of sales were attributable to evergreen content.
Funko
Funko
Funko Revenue by Segment
Funko Revenue by Geographic Location
Forward Guidance
The Company anticipates that effects from the COVID-19 pandemic will continue to impact sales in the fourth quarter of 2020 and currently expects net sales on a percentage basis to be down 10% to 8% compared to prior year, which includes approximately eight percentage points of pressure due to new pandemic-related closures and restrictions in the European region.
Positive Outlook
- Most diverse product offering yet
- Expanded presence within key retail partners
- Staying focused on four key strategies
- Remaining agile in the face of today's dynamic environment
Challenges Ahead
- Continued headwinds in specific channels
- Continued headwinds in specific regions
- Effects from the COVID-19 pandemic will continue to impact sales in the fourth quarter of 2020
- Net sales on a percentage basis to be down 10% to 8% compared to prior year
- Approximately eight percentage points of pressure due to new pandemic-related closures and restrictions in the European region
Revenue & Expenses
Visualization of income flow from segment revenue to net income