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Dec 31, 2022
Funko Q4 2022 Earnings Report
Funko's Q4 2022 results were impacted by operational issues, but strong consumer demand continued.
Key Takeaways
Funko reported a decrease in net sales by 1% to $333.0 million and a significant decrease in net income, which fell 368% to $(46.7) million. The company faced challenges with operational issues, but saw strong direct-to-consumer growth of 37%.
Net sales decreased by 1% to $333.0 million compared to Q4 2021.
Net income decreased 368% to $(46.7) million.
Adjusted EBITDA decreased 116% to $(6.3) million.
Gross margin decreased to 28.3% due to storage and container rental charges.
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
Funko is focused on identifying and addressing opportunities for improvement, expecting sequential improvement throughout the year as initiatives take hold. For Q1 2023, the company anticipates revenue between $225 million and $255 million, and an adjusted EBITDA between $(50) million and $(45) million, returning to positive territory in the second half of 2023.
Positive Outlook
- Gross margin is expected to improve sequentially throughout the year.
- SG&A is expected to be sequentially lower from the fourth quarter of 2022 by approximately $25 million at the midpoint of the revenue range.
- Returning to positive Adjusted EBITDA territory in the second half of 2023.
- Focus on gross margin opportunities.
- Focus on fulfillment costs.
Challenges Ahead
- Revenue of between $225 million and $255 million for Q1 2023.
- Excluding an anticipated inventory write down, gross margin is expected to be in line to slightly below the fourth quarter of 2022.
- Adjusted EBITDA of between $(50) million and $(45) million for Q1 2023.
- Adjusted Net Loss of $(53) to $(48) million for Q1 2023.
- Adjusted loss per diluted share of $(1.00) to $(0.90) for Q1 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income