EVERETT — Funko’s stock price surged above $10 a share in trading Tuesday for the first time after the Everett company released its first earnings report since going public.
The toys and collectibles maker reported a net sales increase year over year of 21 percent to $142.8 million in the third quarter, according to a news release from the company.
Net income was $8.3 million, down from $17.2 million in the third quarter of 2016.
Funko CEO Brian Mariotti said he was pleased with “our third quarter results and underlying trends in the business.”
“We believe our results are a testament to our unique business model,” Mariotti said. “Our products are channel agnostic, our portfolio of licenses is incredibly broad and our consumer base is passionate and highly diversified.”
Funko, headquartered at 2802 Wetmore Ave. in Everett, trades on the Nasdaq exchange under the ticker symbol FNKO. The company makes figurines of pop culture characters from Marvel and DC Comics to Disney. Funko also makes apparel, home decor and stuffed animals.
It had a disappointing launch on Wall Street in November, when it initially valued its stock at $12 a share. The price of a share promptly fell to just over $7 on that first day of trading.
While net income was down year over year, Mariotti said his company has expanded its products line and the number of places where products are sold. Funko’s net sales for the third quarter increased 6.5 percent to $104.2 million in the U.S., and foreign sales were up 91.3 percent to $38.6 million.
Funko also announced Tuesday that it is acquiring British animation studio A Large Evil Corporation, which has been producing short animated product videos with Funko since 2014. Evil Corp, based in Bath, England, will now operate under the name Funko Animation Studios. The sales price was $4 million.
Evil Corp. has produced several animated shorts in the Funko art style, including “Spellbound,” which has been viewed more than 1.1 million times on YouTube.
“We have seen first hand how well received these shorts are from our fans, and we look forward to continuing to produce these high-caliber product videos while also creating original Funko content,” Mariotti said. “As video becomes an increasingly important medium of communication, this will allow us to better create content to support and promote our brand and our products globally.”
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