Funko, Inc. (NASDAQ:FNKO), a leading pop culture consumer products company, has announced changes to the compensation arrangement for one of its key executives, Andrew Oddie. According to the details released on Thursday, Oddie, who serves as Funko's Chief Commercial Officer, will receive a monthly relocation stipend and other benefits due to his temporary move to the Greater Los Angeles area and additional responsibilities.
The decision, which took effect on Monday, involves a letter agreement amending Oddie's existing employment terms with Funko UK, Ltd, a subsidiary of Funko, Inc. The amendment outlines that Oddie will receive a monthly relocation stipend of $13,850 and will be reimbursed for certain relocation-related expenses during his relocation period.
In addition to the financial support for his move, the agreement stipulates that if Oddie's employment is terminated without cause or if he resigns for good reason during this period, fifty percent of his unvested restricted stock units, which were granted on May 12, 2022, will vest immediately, contingent upon his providing a release of claims.
This move underscores Funko's commitment to retaining its executive talent and supporting their transition as they take on more significant roles within the company. The full terms of the agreement have been included as an exhibit in the SEC filing, which provides transparency about the changes to Oddie's compensatory arrangements.
Funko, headquartered in Everett, Washington, is known for its diverse array of licensed pop culture products, and this latest development is part of the company's ongoing strategy to strengthen its leadership team and operational capabilities.
In other recent news, Funko has been making notable strides in its business operations. The company has seen a steady growth in earnings and revenue, as evidenced by its Q2 earnings call. It reported a 3% increase in net sales, reaching $248 million, and a robust adjusted EBITDA of $28 million, surpassing expectations.
Funko has maintained its full-year guidance, expecting net sales to range between $1.047 billion and $1.103 billion and adjusted EBITDA to hit between $65 million and $85 million.
The company has also announced a partnership with the National Football League (NFL). This collaboration will enable Funko to offer custom Pop! Yourself figures featuring t-shirts and hoodies with logos from any of the 32 NFL teams. B.Riley has reaffirmed its Buy rating on Funko shares following this announcement.
Additionally, B.Riley has raised its price target for Funko shares to $15.00, up from the previous $13.00. This decision follows a non-deal roadshow with Funko's management, which bolstered B.Riley's confidence in Funko's potential for accelerated sales growth and AEBITDA margin expansion anticipated for 2025 and beyond.
InvestingPro Insights
As Funko, Inc. (NASDAQ:FNKO) navigates through its strategic initiatives, including the relocation of key executive Andrew Oddie, investors may find value in the latest financial metrics and analyst insights. According to InvestingPro data, Funko has a market capitalization of approximately $607.36 million, indicating its size within the consumer products sector. Despite a challenging revenue growth rate of -10.33% over the last twelve months as of Q2 2024, the company managed a quarterly revenue growth of 3.18% in Q2 2024. This suggests a potential turnaround or stabilization in sales.
InvestingPro Tips highlight that Funko is trading at a high EBITDA valuation multiple and near its 52-week high, with a significant price increase of 61.16% over the last six months. While analysts have revised their earnings downwards for the upcoming period and do not anticipate profitability this year, the company's share price performance reflects investor optimism. Notably, Funko does not pay a dividend, which could be a consideration for income-focused investors. For those seeking further analysis, there are additional InvestingPro Tips available on the platform.
These financial insights and expert analyses could be particularly relevant for stakeholders interested in Funko's operational and financial health as it invests in its leadership team. For a deeper dive into Funko's financials and additional expert tips, investors can visit https://www.investing.com/pro/FNKO.
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