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Sep 30, 2023
Funko Q3 2023 Earnings Report
Net sales, adjusted net income and adjusted EBITDA exceeded expectations, driven by strong direct-to-consumer sales and improved sales to wholesale customers.
Key Takeaways
Funko reported net sales of $312.9 million for the third quarter of 2023, compared to $365.6 million in the third quarter of 2022. The company's adjusted net income was $1.7 million, or $0.03 per diluted share, and adjusted EBITDA was $25.4 million.
Net sales were $312.9 million, a decrease compared to $365.6 million in Q3 2022.
Gross profit was $104.0 million with a gross margin of 33.2%, including $6.4 million in charges related to factory purchase order cancellations.
Net loss was $15.0 million, or $0.31 per share, compared to a net income of $9.6 million, or $0.19 per diluted share, in Q3 2022.
Adjusted EBITDA was $25.4 million, exceeding expectations.
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 narrowed the net sales range of its 2023 full-year outlook and provided guidance for its 2023 fourth quarter.
Positive Outlook
- Gross margin % Increasing sequentially from Q3
- SG&A expense, in dollars Decreasing sequentially from Q3
Challenges Ahead
- 2023 Full Year Net Sales $1.065 billion to $1.105 billion
- Adjusted EBITDA* $20 million to $30 million
- Net sales $260 million to $300 million
- Adjusted net income (loss)*($4.2) million to $2.8 million
- Adjusted net income (loss) per share*($0.08) to $0.05
Revenue & Expenses
Visualization of income flow from segment revenue to net income