Is Funko The Next Big NFT Winner?
The rise of non-fungible tokens (NFTs) has been an interesting trend for investors to look at in 2021. NFTs are a new trend in the cryptocurrency for digital assets. A toy company could be the latest to make waves in the NFT space.
Toy collectible company Funko Inc (NASDAQ:FNKO) reported strong earnings growth last week and announced guidance for fiscal 2021. The other news from Funko is plans to get involved in the NFT market.
Shares of Funko are up over 200% in the last six months since a call out that they could have a strong holiday season. An entry into the NFT market could provide more upside for Funko.
Funko Talks NFTs: In an interview with Yahoo Finance, Funko CEO Brian Mariotti shared what could be the first public comments from Funko in its NFT plans.
"We're excited about it. And we have a plan in place. We have some technology in place. We are going to be in the market fairly soon," Mariotti said. "We have the ability to disrupt this space in a way that nobody else is doing right now. We can tie digital NFTs to our fan base and link entities with physical products."
Given Funko’s strong licensing deals and its collectability factor, the comment about tying digital NFTs to physical products could be a factor that makes Funko stand out.
"We had a pack of NFTs – I won’t mention, licenses right now, and there’s a few rare ones," Mariotti said. "If you had those rare ones, we’re going to give you a free product that’s tied to that rare NFT, which means you have a super rare NFT."
This process Mariotti lays out could be similar to the company’s Funko Soda offerings that come in can-shaped packaging. Collectors search for the chase, a rare offering from the Soda offerings.
“That’s disruptive, that’s new, it’s different, it’s only what Funko can do," he told Yahoo Finance.
Funko could be gearing up to make an announcement on its NFT plans and offerings in the future.
“We’re certainly all over this, and I think you’ll see something fairly soon from Funko in the market.”
Related Link: Where Do You See NFTs At In 10 Years
Funko Earnings: Funko reported fourth-quarter sales of $227 million, up 6% year-over-year. The company was hurt by weak results in Europe that saw sales down 24% year-over-year. The company reported its largest domestic quarter ever with U.S. sales of $171 million, up 18% year-over-year.
The company expanded its direct-to-consumer offerings with the launch of funkoeurope.com ahead of schedule. DTC sales nearly doubled in the quarter compared to the prior year.
Funko is guiding for fiscal 2021 revenue to be up 25% to 30% year-over-year. The company estimates fiscal 2021 earnings per share to be in a range of $0.84 to $0.96.
“We have a major master license toy announcement coming very, very soon. And that will also be in the second half of the year,” Mariotti said.
FNKO Price Action: Shares of Funko are down 5% to $17.93 on Tuesday.
Disclosure: The author has a long position in FNKO.
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