Funko, Inc. (NASDAQ:FNKO) Q3 2023 Earnings Conference Call November 2, 2023 4:30 PM ET
Company Participants
Rob Cassidy – Director-Investor Relations
Mike Lunsford – Interim Chief Executive Officer
Steve Nave – Chief Financial Officer and Chief Operating Officer
Conference Call Participants
Christina Xue – D.A. Davidson
Operator
Good afternoon and welcome to Funko's 2023 Third Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at the 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'll now turn the call over to Funko's Director of Investor Relations, Rob Cassidy. Please proceed.
Rob Cassidy
Hello, everyone, and thank you for joining us today to discuss Funko's 2023 third quarter financial results. On the call are Mike Lunsford, our Interim Chief Executive Officer, and Steve Nave, the Company's Chief Financial Officer and Chief Operating 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 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, including those discussed in our earnings release. Additional information concerning factors that could cause actual results to differ materially is contained in our most recent SEC reports.
In addition, during this call, we refer to non-GAAP financial measures that are not prepared in accordance with U.S. Generally Accepted Accounting Principles and may be different from non-GAAP financial measures used by other companies.
Investors are encouraged to review Funko's press release announcing its 2023 third quarter financial results for the company's reasons for presenting non-GAAP financial measures. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is also attached to the company's earnings press release issued earlier today.
I will now turn the call over to Mike Lunsford. Mike?
Mike Lunsford
Thanks, Rob, and good afternoon, everyone. We're pleased to report better than expected financial results for the third quarter. Net sales were $313 million, adjusted net income was $2 million and adjusted EBITDA was $25 million, all of which were above the high end of our guidance range. These results were primarily driven by strong direct-to-consumer sales, improved sales to several of our larger wholesale customers both in the U.S. and in Europe, and the cost reductions and operational improvements we've implemented over the course of this year.