Funko capped off a strong year, rebounding from a tough start to life as a public company in late 2017, by cruising past Wall Street expectations for its fourth quarter financials.
Revenue: Net sales increased 38 percent over a year ago to $233.2 million, well ahead of analyst expectations of $198.2 million. For the year, Funko’s net sales rose 33 percent to $686.1 million, also cruising past expectations.
Profits: Funko reported $6 million in net profits for the quarter and adjusted earnings of $0.44 per share, exceeding Wall Street expectations of $0.34 per share. For all of 2018, net income increased 406 percent to $28.3 million.
Looking ahead: In 2019, Funko expects to bring in $810 million to $825 million in revenue, good for 18 to 20 percent annual growth.
Shares in the company that makes the popular Pop! collectables are up a whopping 15 percent in after-hours trading Thursday.
“Once again, Funko had a terrific quarter and full year, significantly exceeding our own expectations,” said Funko CEO Brian Mariotti, said in a statement. “Our balanced sales growth resulted from our growing base of entertainment properties, enhanced retail presence and expansion of our product categories and geographic markets.”
“In order to better serve our retail customers and our fans, we consciously made in-quarter decisions to better meet the strong demand we saw for our products. Some of these decisions reduced our gross margin, but allowed us to enlarge our market and satisfy better-than-expected demand for our products.”