Shares of the collectible toy maker fell nearly 40% on their first day of trading on the Nasdaq Thursday. CEO Brian Mariotti told TheStreet investors may not have fully got the company's story during the roadshow.
"It takes a while for people to get how mainstream pop culture is," Mariotti said.
They could be missing an opportunity.
Funko, mostly known for making whimsical mini vinyl and plush figures based on popular characters ranging from Star Wars to '80s cult TV show "Golden Girls", expects sales to reach $1 billion a year within the next five years. In 2016, Funko's sales clocked in at $427 million, up 97% from the prior year, in large part powered by a vast portfolio of 10,000 licensed characters. Adjusted earnings before interest, taxes, depreciation and amortization rose 56% to $97 million. E-commerce sales for Funko -- which has been in business since 1998 -- rose about 17% from a year ago to $35 million.
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