Q2 2024 Funko Inc Earnings Call Transcript
Key Points
- Funko Inc (FNKO) reported better-than-expected financial results for the second quarter, with net sales of $248 million, marking a 3% increase over the same quarter last year.
- The company achieved its first profitable quarter since Q3 2022, with a gross margin of 42% and adjusted EBITDA of $28 million, both exceeding guidance ranges.
- Sales of Bitty Pop, a new entry in the miniature collectible space, more than doubled compared to the same quarter last year, showcasing strong product momentum.
- The direct-to-consumer sales mix increased to 23% of gross sales in Q2, up from 18% in the previous year, representing a 33% growth in this channel.
- Funko Inc (FNKO) successfully reduced its total debt from $246.4 million at the end of Q1 to $223.9 million by the end of Q2, improving its liquidity position to $101.6 million.
- The company faced challenges due to a weaker content slate, partly attributed to Hollywood strikes, impacting new entertainment releases.
- Approximately $9 million in net sales were pulled forward from Q3 into Q2 due to rising freight costs and container availability issues, which may affect future quarters.
- Despite strong performance, the company remains cautious about the uncertain economic environment, including interest rates, labor market, and consumer spending.
- Funko Inc (FNKO) anticipates lower gross margins in Q3 due to higher freight costs, which could impact profitability.
- The company is still in the process of strategically pulling back from the mass channel in the US, which may affect sales growth in the short term.
Good afternoon, and welcome to the Funko 2024 second quarter financial results conference call. (Operator Instructions) As a reminder, this call is being recorded.
I will now turn over the call to Funko's Director and Investor Relations, Rob Jaffe, to begin. Rob, please go ahead.
Hello, everyone, and thank you for joining us today to discuss Funko's 2024 second quarter financial results. On the call are Cynthia Williams, our recently appointed Chief Executive Officer; and Yves LePendeven, our Chief Financial Officer. This call is being broadcast live at investor.funko.com. A playback will be available for at least one year on the company's website.
I want to remind everyone that during the course of this call, management's discussion will include forward-looking information. These statements represent our best judgment as of today about the company's future results and performance. Our actual results are subject to many risks and uncertainties that may differ materially from those stated or implied,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
