Q3 2024 Funko Inc Earnings Call Transcript
Key Points
- Funko Inc (FNKO) reported a solid overall financial performance for the quarter, with net sales of $293 million, which was at the high end of their guidance range.
- The company achieved a gross margin of 41% and adjusted EBITA of $31 million, both exceeding the top end of their guidance range.
- Funko Inc (FNKO) raised the range for adjusted EBITA to $85 million to $90 million for the full year, indicating improved profitability.
- The company expanded its collaboration with the NFL, allowing fans to customize 'Pop Yourself' with NFL team logos, which exceeded launch expectations.
- Funko Inc (FNKO) has diversified its supply base, with only about a third of its products manufactured in China, reducing potential tariff impacts.
- Net sales guidance for the full year was lowered to $1.037 billion to $1.05 billion due to cautious consumer spending and wholesale customer caution.
- Direct to consumer sales were down 7% year over year, indicating challenges in this sales channel.
- The company anticipates a higher percentage of sales to occur during promotional periods, which may impact gross margins.
- Funko Inc (FNKO) experienced a decrease in total company liquidity, dropping from $101.6 million to $83.5 million.
- There is concern about potential capacity challenges if tariffs are enacted, which could lead to a rush to ship products into the U.S.
Good afternoon and welcome to Funko's 2024 third quarter of financial results conference call at this time, all participants are in listen-only mode later, we will conduct a question and answer session and instructions will follow at that time. Please be advised that reproduction of this call in whole or in part is not permitted without written authorization from the company. As a reminder, this call is being recorded.
I will now turn the call over to Funko's Director of Investor Relations, Rob Jaffe. Please proceed.
Hello everyone and thank you for joining us today to discuss Funko's 2024 third quarter. Financial results on the call are Cynthia Williams, our Chief Executive Officer and Eve La Pendo, the company's Chief Financial Officer.
This call is being broadcast live at investor dot Funko dotcom. 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
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