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Dec 31, 2019
Funko Q4 2019 Earnings Report
Funko's Q4 2019 financial results were reported, showing a decrease in net sales compared to the previous year.
Key Takeaways
Funko reported a decrease in net sales by 8% to $213.6 million in Q4 2019 compared to $233.2 million in Q4 2018. The decline was attributed to softness at retail during the holiday season, underperformance in key tentpole properties, and difficult comparisons due to the strength of Fortnite in Q4 2018.
Net sales decreased 8% to $213.6 million.
Gross margin decreased to 29.2%, but excluding a one-time inventory write-down, gross margin was 37.1%.
Net loss was $6.3 million, compared to a net income of $15.5 million in Q4 2018.
The company expects net sales growth of 6% to 9% in 2020.
Funko
Funko
Funko Revenue by Segment
Funko Revenue by Geographic Location
Revenue by Segment
Other Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comOther International Revenue
CapyFin.com Forward Guidance
In 2020, the Company expects net sales of $840.0 million to $865.0 million, representing 6% to 9% growth compared to 2019, and adjusted EBITDA between $115.0 million and $125.0 million.
Positive Outlook
- Net sales of $840.0 million to $865.0 million, representing 6% to 9% growth compared to 2019.
- Adjusted EBITDA of $115.0 million to $125.0 million, representing Adjusted EBITDA margin of 13.7% to 14.5%.
- Adjusted Net Income of $43.3 million to $50.8 million, based on a blended tax rate of 25%.
- Adjusted Earnings per Diluted Share of $0.85 per share to $1.00 per share, based on estimated adjusted average diluted shares outstanding of 51.0 million for the full year.
- Strong gross margin performance.
Challenges Ahead
- Anticipated impact from the coronavirus.
- Net sales in the first quarter of 2020 will decline in the mid-teens.
- The first half of the year will decline mid-single digits, which includes the anticipated impact of manufacturing disruptions and delayed shipments.
- Investments being made to enhance operations, drive efficiency and build scale in the model.
- Potential effect of the novel coronavirus due to manufacturing disruptions and delayed shipments resulting from the crisis.