Funko, Inc. · NASDAQ:FNKO
Funko — Investor Presentation (June 2024)
24 slides from Funko's investor presentation, June 2024
Slide 1: Investor Presentation: Company Overview, June 2024
INVESTO R P RESENTATIO N CO MP ANY O VERVIEW JUNE 2024 1
Slide 2: Cautionary Notes
2 Cau t ionary Not e s This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, inc
Slide 3: Funko is a Pop Culture Collectibles Company
Funko is a P op Cult ure Colle ct ib le s Comp a ny The comp any d e signs, source s and d ist rib ut e s lice nse d p op cult ure p rod uct s for consume rs who se e k t angib le ways t o conne ct wit h t he ir favorit e p op cult ure b rand s and charact e rs. P rod uct cat e gorie s includ e viny
Slide 4: At a Glance
At a Gla n ce 2 0 2 3 Sa le s b y… Ticker: Nasdaq:FNKO • IPO : 20 17 • Found e d : 1998 GEO GRAP HY US ………………………..…6 9 % Int e rnat ional ………..…31% Ne t Sale s 20 23: $1.1 Billion Multiple Sale s Channe ls: • Two Flagship re tail store s • E-comme rce site s: Funko.com, BRAND FunkoEurope .com, Loung
Slide 5: Brands
BRANDS Core Collectibles, includes Pop culture fashion ite ms, High-end, limited edition P op ! Vinyl, company’s be st- soft-line s including collectible figures, posters and known product line ; thousands backpacks , bags, wallets vinyl records of lice nse d characte rs and apparel Funko, LLC © 20
Slide 6: Investing in the Rise of Pop Culture
INVESTING IN THE RISE O F P O P CULTURE 20 21 20 23 2 0 10 2 0 17 Funko launches Lau nch e s INITIAL P UBLIC FIRST P O P ! P RO DUCT Digit al P op ! NFTs Bit t y P op ! and P RO DUCED O FFERING P op ! You rse lf O nline FNKO 20 0 9 O BTAINS DISNEY 2 0 17 2 0 19 20 22 LICENSES: Funko comple t e s O P
Slide 7: We Believe That Everyone is a Fan of Something
AT W E BELIEVE THAT Funko, LLC © 20 24 7
Slide 8: And Funko Has Something for Every Fan
AND FUNKO HAS SOMETHING FOR EVERY FAN (a sample of lice nse s) MO VIES TV MUSIC SP O RTS ANIME GAMES Note: Represents a sampling of our current portfolio offerings as of December 2023. Funko, LLC © 20 24 8
Slide 9: Funko, LLC © 20 24
Funko, LLC © 20 24 9
Slide 10: We Have a Broad and Deeply Engaged Fanbase
W E HAVE A BRO AD AND DEEP LY ENGAGED FANBASE CO NSUMER CO MP O SITIO N CO NSUMER ENGAGEMENT Funko has b uilt a d e e p ly e ngage d consume r b ase and O ur p rod uct s have b road ap p e al across age and ge nd e r. conne ct s wit h t he m t hrough it s d igit al p lat form, loyalt y p rogram, soc
Slide 11: Global Distribution Across Multiple Channels
GLO BAL DISTRIBUTIO N ACRO SS MULTIP LE CHANNELS Se le ct Re t ail P art ne rs Direct -to -Consumer is Mass our largest distribution channel at 21%* E-Comm Sp e cialt y Value No single customer accounted for over 10%* of revenues Dist rib ut ors * Percent of 2023 Net Sales Funko, LLC © 20 24 11
Slide 12: Sales Growth Since IPO
SALES GRO W TH SINCE IP O TO TAL DIRECT TO NET SALES INTERNATIO NAL CO NSUMER LO UNGEFLY $1,200 $400 $300 $300 $300 $800 $200 $200 $200 $400 $100 $100 $100 $- $- $- $- 2017 2023 2017 2023 2017 2023 2017 2023 2 0 17 20 23 Funko, LLC © 20 24 12
Slide 13: Funko Aims to Return to Historical Profitability
FUNKO AIMS TO RETURN TO HISTO RICAL PROFITABILITY Ne t Sale s Range $1,10 3 17.4 % $1,10 3 $1,0 4 7 $5 16 7.0 % Mid point of Range 2017 2018 2019 2020 2021 2022 2023 2024* * Full- ye ar Guid ance , Net Sales Adjusted EBITDA Margin issue d May 9 , 20 24 (2) Aft e r ye ars of focusing on d riving t op
Slide 14: Strategy Overview
STRATEGY O VERVIEW ADD NEW BUILD FO CUS O N STABILIZE LO NG-TERM CO RE P RO DUCT REVENUE O P ERATIO NS LINES P RO FITABLE STREAMS GRO W TH 1 2 3 4 Run the business like a Focus on fe we r prod ucts, Inve st in ad jace nt Lay the found ation for lean startup, re je ct ing d one e xt re me ly we ll ca
Slide 15: Strategy Elements: Stabilize Operations
STRATEGY ELEMENTS ADD NEW BUILD FO CUS O N STABILIZE LO NG-TERM CO RE P RO DUCT REVENUE O P ERATIO NS LINES P RO FITABLE STREAMS GRO W TH 1 2 3 4 Re d u ce d fixe d -cost b ase to return to Funko’s O ve rh au le d Fu nko’s Su p p ly Ch ain: le ane r, fast -p ace d e nt re p re ne u rial root s: • El
Slide 16: Strategy Elements: Focus on Core Profitable Products
STRATEGY ELEMENTS ADD NEW BUILD FO CUS O N STABILIZE LO NG-TERM CO RE P RO DUCT REVENUE O P ERATIO NS LINES P RO FITABLE STREAMS GRO W TH 1 2 3 4 Simp lify the business, focus on mostp rofit ab le core p rod uct s • SKUs have be e n rat ionalize d by approximate ly 30 % Allowing us to be : • Re sp o
Slide 17: Strategy Elements: Add New Revenue Streams
STRATEGY ELEMENTS ADD NEW BUILD FO CUS O N STABILIZE LO NG-TERM CO RE P RO DUCT REVENUE O P ERATIO NS LINES P RO FITABLE STREAMS GRO W TH 1 2 3 4 Selectively inve st in ke y value d riving initiative s P op ! Yourse lf $30 • Natural e xte nsions of core product line s • De ve lop m argin-accre t ive
Slide 18: Strategy Elements: DTC and International
STRATEGY ELEMENTS ADD NEW BUILD FO CUS O N STABILIZE LO NG-TERM CO RE P RO DUCT REVENUE O P ERATIO NS LINES P RO FITABLE STREAMS GRO W TH 1 2 3 4 Dire ct t o Consu me r (DTC) Int e rnat ional Continue to Imp rove Cust ome r Exp e rie nce Expand b e yond US and EMEA: Conne ct with Custome rs: • Lat i
Slide 19: We Have an Experienced Management Team with a Deep Bench
W E HAVE AN EXP ERIENCED MANAGEMENT TEAM W ITH A DEEP BENCH CYN THIA YVES TRACY AN DY SARAH W ILLIAMS LEP EN DEVEN DAW O DDIE MARTIN EZ CEO Acting CFO Chie f Le gal O ffice r and Se cre tary Chie f Comme rcial O ffice r Se nior VP , P e ople and Culture J O HAN N A MARC HUSN AL MALCO LM RO B DO UG G
Slide 20: Key Considerations
KEY CO NSIDERATIO NS Dive rsifie d sale s P owe rful p op channe ls wit h cult ure p lat form massive DTC and wit h p assionat e Int e rnat ional fans op p ort unit y Excit ing p rod uct line e xt e nsions su ch as P op ! Re sult s-orie nt e d Yourse lf d e signe d manag e me nt t e am t o d rive sa
Slide 21: Thank You
THANK YO U 21
Slide 22: Reconciliation of Non-GAAP Financial Metrics - Outlook for 2024 Adjusted EBITDA Margin
Re co n cilia t io n o f N o n - GAAP F in a n cia l Me t rics - O u t lo o k fo r 2 0 2 4 Ad ju st e d EBITDA Ma rg in A reconciliation of adjusted EBITDA and adjusted EBITDA margin outlook to the corresponding GAAP measures on a forward- looking basis cannot be provided without unreasonable effort
Slide 23: Reconciliation of Non-GAAP Financial Metrics
Re co n cilia t io n o f N o n - GAAP F in a n cia l Me t rics *Adjusted EBITDA margin is defined as Adjusted EBITDA divided by Net Sales. Funko, LLC © 20 24 23
Slide 24: Reconciliation of Non-GAAP Financial Metrics Cont.
Re co n cilia t io n o f N o n - GAAP F in a n cia l Me t rics Co n t . Funko, LLC © 20 24 24