Funko Reports First Quarter 2021 Sales of $189 Million, Up 38%; Raises Full Year Outlook
Funko, Inc. ("Funko,” or the “Company”) (Nasdaq: FNKO), a leading pop culture consumer products company, today reported its consolidated financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Financial Highlights
-
Net sales increased
38% to$189.2 million -
Gross margin1 expanded 100 basis points to
41.4% -
SG&A expenses increased
8% to$51.3 million ; as a percent of net sales, SG&A declined 750 basis points to27.1% -
Net income increased
$16.8 million to$11.1 million -
Net income margin expanded 1,000 basis points to
5.9% -
Adjusted EBITDA2 increased
$19.2 million to$29.8 million -
Adjusted EBITDA margin2 expanded 790 basis points to
15.7% -
Cash flow from operations of
$37.5 million -
Total liquidity3 increased
47% to$149.7 million
First Quarter 2021 Operating Highlights
-
U.S. net sales increased
39% to$136.5 million and Europe net sales increased55% to$39.8 million , reflecting a strong demand recovery in both regions -
Pop! branded products grew
33% as our broad license portfolio continues to enable our fans to connect with their favorite pop culture icons -
Net sales of Other (non-figure) products increased
52% , led by Loungefly branded products which grew82% in the quarter, as well as strength in games, plush and accessories -
Direct-to-consumer sales increased more than
160% driven by continued strong demand on the Company’s Funko and Loungefly e-commerce sites -
66% of sales were attributable to evergreen content - Completed the acquisition of a majority stake in TokenWave, providing the Company with strategic entry into the NFT market
“Improving consumer demand in the U.S. and Europe contributed to broad-based strength within our brands, products and distribution channels, leading to a record first quarter,” said Brian Mariotti, Chief Executive Officer. “Throughout the pandemic, our teams have maintained a relentless focus on delivering innovation and engaging with our fans around the world, positioning the business to drive topline growth as the demand environment strengthens. In the first quarter, this enabled us to achieve sales growth of
“We are confident that our innovation pipeline, strategic focus and experienced teams will enable us to deliver continued growth and expansion in the dynamic macro environment,” continued Mariotti. “We’re investing behind our key strategic priorities and expect to achieve topline growth of
First Quarter 2021 Financial Results
Net sales increased
In the first quarter of 2021, the number of active properties increased
On a geographical basis, net sales in the United States increased
On a product category basis, net sales of Figures grew
On a brand basis, Pop! branded products grew
The tables below show the breakdown of net sales on a geographical, product category and branded product basis (in thousands):
Three Months Ended March 31, |
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2021 |
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2020 |
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