PLBY - Earnings call transcript Q3 2021

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Operator

Thank you for standing by, and welcome to PLBY Group's Third Quarter 2021 Earnings Conference Call. At this time all participants are on listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions]. I would now like to hand the conference over to Managing Director at ICR, Ashley DeSimone.

Ashley DeSimone

welcome Group and earnings quarter everyone, call. conference afternoon to third PLBY XXXX Good DeSimone, at Managing Ashley am I Director ICR. Hosting today's Lance Officer. and Executive Chief call are Barton, Ben Chief Kohn, Officer; Financial the qualified today filed PLBY website. SEC Group be its is website has may by today which on discussed X-K that information entirety The by accessed form Inc., and of been Group's and the PLBY to being Today's a posted website. and also be webcast PLBY call is will replay Group's or this statements. Please that other note projections made including nature, statements forward-looking during not constitute call, that in historical are financial statements may of Such and statements are PLBY's time we made views at obligation performance undertake assumptions on they events statements. the to future not made these and basis do regarding the are and business any update

applies risks statements will actual forth go now set These call you SEC undue forward-looking Ben? I information. subject cause historical should And more Do could this and its Ben from Kohn. refer statements. are the results to reliance on all place made consider differ PLBY's to cautionary and statements forecast, open those PLBY's for results to and not call. ahead. during filings any with Forward-looking to including to those statement Please in risks forward-looking the which carefully

Ben Kohn

so of serves Thank strategic COVID-related this ecosystem direct acquisitions, brands, recurring the face that rejuvenate that the outlook. another bigger as great we've growth greatest one dollars how operational I even is based scalable in commerce progress integrating to an growth remarks meaningful our you, provide team the flywheel media then of complementing executed continue against and business our for services drops, was of saw and afternoon on to with marketing broken with strong foundation right spend greater operator, as on our a strategic to going are start year model in brands that of opportunity our a the financial right delighted on and call challenges offerings. recognizable the But has cohesive Playboy clear our our membership will can on good into we of consumer commending CEO, model Playboy by and roadmap. afternoon, to deliver business for world's work most been right engine quarter. revenue with releasing magazines, with today revenue NFT of growth. our to licensee the the all for consumer detail because products opportunity on supercharge to operations, business, the today's clear in-house a results first it report consumer everyone. building one create and was our of I'm with amazing company. on today's I I and focus My want It emotionally joined selling Lance transformation. resonant and globally operational our to model. the and XXXX billions was massive achieving far the match even for

key a of one previously, build fruit. hanging our expand work our we in action following the is on we've in to about talked categories direct-to-consumer three-part territories. foremost low plan, our As and action first Part business commerce been plan focusing growth and

short to consumer immensely of period make Our time. spend licensing $X.XX deals. the scale we've we brand of in against proud such versus $X.XX the achieved a goal of here on is to capture $X.XX I'm the

term in on our used the to new nearly a over The these a the coveted Playboy subscribers end, three of low pro celebrities has hanging better, on alone, As in has the our XX% most bigger, on is a that our made initiatives building in China, Lance basis and will Mansion licensing PacSun initiatives, and revenue we ago and for elaborate clubs, these at have also brands. end course returns large huge Playboy based foundation also revenue several and gone $XX fruit, two for $XXX fans as longer strategically years of marketing have deals. third To two high forma in been emerging grew exciting to less today, growth alike revenue business revenue we've China we've focusing the membership. our China. annual have XX% being particularly us, created licensing lifestyle retail or its is roadmap million. here from category. for strides buzz, of been of that XXX% years one that Playboy new almost investing than on that CEO, DTC term with the and from future licensing growth. deliver X great revenue as we built a in. focusing of year-over-year builder million since I opportunities part a to executing particular time horizon. track the India, the has to to we've recurring magazine with $XX in We've tool million became past significant tail Part growth QX execution our design that longer five-year revenue deliver brand keyholders to and gaming are In business to clamor it brand By partnerships coming two million annual million a been created us contributing collaborations on And generate generated of being reach partnerships participate brand with scale huge long allow and revenue the a attacking building in

the access in truly Metaverse party Vegas. that and like a XXst Las into night's experiences will the freedom, them Imagine stands our contemporary Playboy lifestyle opportunities fans give virtual and Club physical fun, lifestyle, Century sophistication. give midsummer reimagined for live will Playboy and Playboy and Our in also a global to dream parties

with exclusively our collaborations. to and We fashion will sex comedy Playboy building stages, to greets music upon and commerce foundation, product and early Playboy advisor, strong of Playboy series and and drops artist a offer access things exclusive course, only relationship talent, can

With the business place are crucially, top relationships build membership we direct to on more can continued we expansion marketing lifetime powerful the working offerings value our the funnel our consumer services. infrastructure expand We significant the build in recurring with And much of to engine. products commerce commerce these put revenues. through services of simultaneously around

at Rabbitar we There minted foray launched Just on about Rabbitars the of designed XD Rabbit Playboy with two new latest Rabbitar. XX,XXX ago, the uniquely our initial into the Playboy membership our MFT are characters collection and Blockchain. are Ethereum at release $XXX year in weeks $X collecting time, over of as priced and was generated X.XXXX each upfront sold U.S. each dollars of honor We roughly or million rapidly in payments both Ethereum and XXXX. out the founding our revenue.

since Club, our we for already million new sale. every rarest in piece. our volume to Rabbitar be a with $XX,XXX we sales And launch, initial sales, Playboy access unlock and more In downstream seen will as Rabbitar than much lifestyle $X as will anticipate selling in what the subsequent we status a participate to addition Pam party exclusive have experience in and hosted wearables the Art secondary can trading Playboy Playboy.com. new VIP owners special community dedicated and deliver. Anderson, New host that included by on to a Rabbitar in this Gallery benefits benefits a in forums early days only In York drop, on discounts access have party first membership a Metaverse, City, the Virtual Playboy of few the to Discord, digital ownership special

Vaughn our dedicated released in upcoming upcoming airdrops. of just roadmap themed experiences Rabbitar server special IRL Discord strong XX,XXX and including was limited benefits week, parties Our in number collaborations, of apparel plus NFT last

to we we based membership that makes ways fans is bases. of have and for successfully do course around specific is in. celebrity what millions brand world become CENTERFOLD always cater to can We for that has to a globally fan believe tiers our relevant Playboy. been where This ensure Of through iconic and central the to creative Playboy experiences is we Playboy, that membership members. need The comes community and of

we to and was stepping culture Playboy celebrity decade years making into a world reading voices a careers each just wasn't it XX provide upside business, Rock yet a with interaction Consumers proved reach [ph] with in for creators business today, talents and with groundbreaking But able the continue magazine careers different expect building while Playboy influencers passage huge the need however, to faced cover. of talents build wasn't For and world and magazine tools we the artists, celebrities, And bold into is in fan perspective, the again of in their able building nearly as brand. company generation. and today the Bretman revenue their From were favorite creators the October their two-way ongoing of of thus company ways large as role bases. with place. a the participate our and talent was biggest to a of like of the talent names rite a played very to

It XX the subscription communities platform scale their platforms the web Playboy years up and we deliver the so able dedicated sex with with uniquely Playboy do magazine creators is to top for their their own and brand creator e-commerce sits expression, world's to a the and and directly openly community with creative positioned this industry the will digital the original are or our one as will set and culture and much that creative of is a Creators space. new ago. visibility. massive membership services, intersection revolutionize themselves in As freely to express CENTERFOLD at publishing more. expand serve nearly up interact economy, to businesses. positivity. for artistic we be message to their and will the freedom, one fans fans as shook of directly at creative sex the home CENTERFOLD just mainstream

build Appearing inbound content. operations. its outside talent again, tremendous cover more. By these to ways them and collaborations famous. interest in crucial that more. design, a most subject being access to tools giving were As and the want a tools, here create give services to pictorial talent the we fully a are celebrities more only XXs, have where been directly opportunity, express of heard Blockchain to chance tap In artist capabilities, artists and Birdette, audience merchandise XXs, to to our place to of And freedoms, that course, more a investments give commerce to infrastructure we've full Honey the for themselves distribution themselves, and generate Playboy allows and can, Playboy was will of Playboy XXXXs, we've or expand, we're creators creative of to creator it ecosystem on and of provides able CENTERFOLD a the The network into CENTERFOLD our from NFT of get and community from creator value to merchandise the ultimately ability offer they with plan and that in Playboy XXs, a much a making Playboy so and creator and had our the and interview. our coveted both access them Playboy it PLBY collaborations, flywheel assets. commercial XXs production we promotion. including Group's membership, for all to cross unmatched aggregation CENTERFOLD them access the We as will

of more to they creative planning not founding all commercial in just your reasons, our share and but And body to we industries naming tell serving various about visionaries we come fans. names culture, expression, you and artistic music, that across yet share celebrating commitment as cannot to variety positivity, truly We're are launch and in from serving the and we talent a early they immense anticipate creators. more. fashion can art, for wait We a sex December, creative

Our team followers. million represents social alone XXX anticipated nearly media founding

roadmap, and Our of strengthening creators platform leading achieved bringing market world's more opportunity built spend the and contributor. made meaningfully our with the simultaneously that over while I'm fans foundation a Group. executing ensure to will capitalize future invest CENTERFOLD will time revenue and against call with progress experience we scale a building consumer With fastest direct-to-consumer the brand recent about licensing we've on the excited We've so products for to to to of safe strategy more over operations them by work direct-to-consumer consumer to we a opportunity. great Lance. become revenue a in partnerships, capture the XD PLBY and against I a our commerce membership and the than accelerator is revenue that future hand big recurring growing now over ever voices can we biggest top our to this believe enormous in immense the business, that, quickly for we a timeline acquisition could

Lance Barton

Thanks, Ben.

what well grew of as impacts quarter exceptional revenue quarter, our the XX% in alone. more supply million be year-over-year lost than due growth $XX $XX.X execute continues million. to achieved revenue million. in believe third We and strategy. $X to closures Third proven COVID-related XXX% environment on and to year-over-year we a business to we third the operating difficult we date quarter worth direct-to-consumer to these grew Despite has of to our we've The and revenue continued expansion direct-to-consumer successful headwinds, chain

capitalize billions In the Playboy on a Our branded all generating e-commerce partners revenue the more infrastructure of quarter the XX or we've XXXX the of of this playboy.com saw combined. demand dollars tremendous revenue an the our products. Last XXXX and brand rather of in on we consumer to greatest all than awareness, meet executing against being through globally. months, isn't challenge appetite to the than but growing for scaling more against we the year, transformation that QX in destination we given in in lack of own our of third in e-commerce began spent the month related last been our into brand to opportunity stream plan, our revenue September, see

key has learnings. to early some Our led success

coming foremost more our and comes of from resonates the clearly a First from revenue of on revenue that And consistently Playboy we women. age customers the see XX. now brand half young under with Two-thirds of than audience. is playboy.com

site is of a fair see which price Average higher amount this quarter year, now on also above elasticity of our $XX at where beginning and XXXX. it higher the to customers. the order with the of is XX% XX% value consistently We roughly third compared than stood

site us frequently coming also on others. are customers than back who more single order $XXX see the over with that We spend a to

sell product network consumers premium to like celebrities done. our when that provide continue our Hadid as a partnerships In cash revenue generating There's Honey to believe platform. reach we offerings, and opportunity, more Lovers for earned the Birdette, merchandise Jay-Z flow the organically with us able But directly have leverage all to long logo. to with a terms on scale of of have and Playboy the this collaboration CENTERFOLD hope on the we playboy.com direct-to-consumer be our growing is we revenue when wear combined and that us brand fashion been media while end especially to we've Playboy expansion. work achieve to provided licensing meaningful potential Yandy the strategic direct-to-consumer term our to effects high Bella allowed needed consumer execute to transition and scale infrastructure to

stub the throughout of starting under period Honey our September, still business in challenging the $X.X Although few million and a to Birdette months X. for of half stores had as were managed ownership our Australia closed first revenue of retail contribute August all August

all business, rebound began our currently in And performance. believe continue and in open term mid resulted growth for which there significant in are stores long that reopen amount today, locations the as potential of of a October for business the of is to brand. corresponding to has Fortunately, a we

term. We these also synergies long for which the in invest a of anticipate businesses, we back us to over end across unified continue will produce building all

Italy region. front, and who Emory licensing than partnerships Revenue In stronger as a year-over-year our revenue retailer we of with launched as social our bolstered licensing collection. brands categories strategic sell-through fashion XX% million. fast the the On to end on and fashion success by in grew continue quarter summer along ongoing $XX.X optimize the targeted to partnership media, high was in from PacSun in a swim successful Jay-Z expected [ph] with spotted such third

launching next eight partnership closure This to also in to along COVID spirits agreements fashion directly be signed partnerships restrictions. Playboy and licensing saw generate headwinds partner launch under able exploited in London our we With the on gaming year. new launches includes a category this due later collaborations and also QX the strategic travel continued including playboy.com in exciting studios limitations that partnership which We that to revenue expect our said, sell we'll India on due several South to year, markets closures new operated ongoing international live dealer and America, late of to impacts. the ability product with and Club, of

Perhaps forward, brand way or in a in hospitality, fashion, importantly, spirits. that these Going partnerships further strategic that to Playboy as gaming we'll and expertise. as such lower and intensive, require categories capital expand efficient continue think local these develop can and for capital the categories we margin partnerships in we us are more to regions lifestyle leverage

financial this than and we of had and quarter fourth we year growth XX exit months are with outlook, just ago. terms In scale we'll the more opportunities significantly entering

ecosystem, $XXX in represented Birdette revenue, Our will we XX before February to the month direct-to-consumer us revenue gave and term licensing which as of any clearly include year our first public. And revenue was outlook outlook for inner for track into Halloween a was until XXXX, in the this breaking playboy.com weeks by than expect that said on I uncertainties. discussed with a I fulfillment challenges record and what also destination earnings month our October we that not our not call, business, a initiatives. to from our we is Halloween last revenue the went giving for thrilled year to from $XX successful Honey not business, today August from we million seen when we've going we is expected. direct-to-consumer we from say sales launched creators target exceed and say upcoming earlier I reach fully we've didn't of than was we're alone sizable build that that revenue because alone. recurring I'm contribution can more if outlook the annual Yandy onward. are as and we $XXX membership. guidance doubling revenue we What There ran believe and week than that first with we've alike. mention expect that larger few long long a the million On revenue our on demand consumers of million long CENTERFOLD million, sharing not months given three exceed both that was to this generating four in factoring shopping of change a opportunity potential initiatives $XX for in continued to even -- term for brand big in are generated which today became a CENTERFOLD consumer we points the to the This can such be for we us as today could tremendous in our there membership business, potential chain lead and growth working upside membership. the to here. products for the proof we're these or COVID is our term partners CENTERFOLD supply believe I'm But

total execute, of from in generate hundreds year of this generated discussed, drop. we're that in materialize margin digital group allocate would then along we've million front already that, second operator for the in revenue, the NFT hours the win. by able build that in exciting launch in to the with margin that they term like and I'll increase a potential to revenue. that our our we time and initiatives quarter company and million millions is NFT the myriad the creator EBITDA and incredibly high $X our generated successive these and upon of Rabbitars GMV of these the given echoing which size of and new open of will believe sentiment around launch creators relative With economy. $XX with alone, includes is opportunities initial already And have questions. us Ben nature we a close of One Ben's them each an that dollars long CENTERFOLD, on we're the hoping we revenue, to appropriately opportunities prioritize of line for continue can, related this secondary XX would to I'll the to we back the with expect profile under If also resources

Operator

Jim first the Our question Instructions] [Operator comes line Stifel. of from Duffy of

Your line is open.

Jim Duffy

guys. afternoon, taking Thank you. questions. you Thank Good for my

been are pieces pieces you? has the of The platform start, company just it's of added the busy the curious, opportunities So to foundational are a team. or to Ben, capitalize now a in puzzle. the on the for still number other you I'm year looking place to platform to add that components ahead there are of management

Ben Kohn

things we offer one something Jim, is offer. today to the We assembled there platform I by question. that represent talking What the the that's allocators general, the competitive forward thanks referenced creators think is can membership we have for with that community good and a launch extent place XXX what media believe million CENTERFOLD. in sense. we moving we as into up that have differentiator the founding think social we are that are In and truly And no else signed about make creative of we excess followers. can think in capital is

to moving be forward. have would Of course, I strategy that our say now we we need right opportunistic, in on every piece the execute will shareholders. But place for

Jim Duffy

performance the of trends pretty Lance, want to That's I Lovers holiday you quarter. third detail weeks I to the on just and ask can and Can of the to the you season? Halloween performance important But October. Lovers of for saw Thanks. business three for leading the you September Excellent. components what selling during up impressive first hear. playboy.com to -- quarter gave Yandy talk Yandy and And figures know little you great to speak, a more be during seemed

Lance Barton

Sure.

in around that. I details I'll bit remarks, give that so of some highlighted little think a the I of

late an supply those all October itself having October in labor of because we up October ended fulfillment, As short I in season. setting Halloween And of was things. Yandy chain just record challenges, having really to cut challenges, mentioned orders the

than did. for it better But a month very So actually impressive we October lot was a done us. still in have we would

So, doing that there well for of I end on in is of did do this business has exciting kind all integrated and the just all to continues Playboy.com, month brought gave that lot of really months experienced and work year, this more scaling some as forget businesses starting what the obviously soon us extremely quarter, us. earlier well. earlier here year think to we're third Lovers then And Lovers millions who of with from in to the I this that we opportunity of October around across work big and A zero dollars. of of was that. the I than effectively that. hundreds as has last think playboy.com, Yandy as more business And we of mean, I revenue. on for been I I a Honey see really in We there combined. first Birdette generating said this four the run growth that stats back someone year well year.

trajectory. really So, growth great

undergoing. being transformation this that see translate whole partners we part money business for when I is think continues on said direct our demonstrated spent playboy.com. it's and to of folks we're to that time was We which the demand see speaks by brand. this what it that I've products and again this, and there our for before, product selling for with is all of globally. amount to of we're strategic our the the And That on reason

really time time. the our So issue. COVID. obviously There supply or getting our it's of a team, at lot we're demand chain that It's up don't end infrastructure, awareness products intending scaling a is in to of on that arriving not the stock an certain times right,

a think continue. for with most very all here time, I this and retail managing a there's runway is growth what So, think we're still results we're long challenging in direct-to-consumer pleased to of But companies. really the we

Ben Kohn

the Yes. to end be the at launch add our we network so well. thing when is, own media as we of is going CENTERFOLD, the great only have to Jim, I'll in social day essence, what's

the start the future you supercharge in when recurring this to business. created, so then can flywheel really about and the launching CENTERFOLD, we're And of of Rabbitars think then we've facets the the revenue that with and what nature all the

Jim Duffy

No in one phenomenon? to have doubt. for North you launch, concentrated more quick of uptake America? as the One Or Rabbitars a Was view geographic may, appetite the the was a with if do it global that? it Ben a Rabbitars's more I

Ben Kohn

What have in I and on people tell is places. in holders, our that. talking of to active specifics China I'm because So, I'm can host community and you I a is to don't Discord that Rabbitar whole the Australia other talking our

I think it's really So interesting.

the we I into here our team NFT we to with or we XXXX what or a this that coupled CENTERFOLD efforts did community. And into as before And created the that's people's creators at first in to buyers not think responses in Fiat based for transactions. investors that unique that actually and on truly it in time is working mainstream people truly I the or And that that with look the have think number do the XX is be has brand XXXX, I believe Blockchain have space continue forward. us forward. what piece we first exciting million are going participated credit this that exciting ability for NFT set think almost moving on when then moving card expand I of I Discord, that archive with were we to that becomes like to do actually to Rabbitars bring on launch aside

Jim Duffy

the on launch. success of Rabbitar's Congratulations that Excellent.

Ben Kohn

Thanks, Jim.

Operator

Thank you.

next George Our ROTH comes Capital Kelly from question Partners. of

Your line is open.

George Kelly

Hi, everybody, thanks for taking my questions.

guidance any like about Blockchain I'm But stuff view how Would thinking soon initiatives more you're trying So, that for question. these things these significant And through If we next if maybe of XX,XXX kind broadly, a as not I'm just that. I'm portion all to think it thinking looking NFT XXXX broadly you XXXX? just of to lumped really membership than lot a this year's revenue kind all together. just think on should of or these related as new start here that kind and foot CENTERFOLD like, of programs, with working of financials. that I ramping? anticipate being a specific

Lance Barton

Hey, the George, question. thanks for

this far say an So, effectively in look, right? in of to So generated a archive revenue, first the we for successful piece of a that format none which digital which launched, launches. was content, for put it's something which first has a that a out extremely great than done digital And imagined sold an thought regular more sorts historically we reaching under we initially our for NFTs. was not of in collection consumers of in we quarter, attempt. then We really the have and we've quarter, and hard of revenue we one obviously, outcome second third $X in because we sold all much have million did $XX,XXX purchased with hours this launched in three Rabbitar would our format. content success original photograph thought of just million XX piece over that was We of generating NFT NFT

me they're but million to I pretty and look if our things we the base, get what start. fast of pretty next these a So quickly bringing can also year, over. platforms huge scale, base And big, given potential but are how can have couldn't to to numbers, a When we but going creator it's you you that some isn't number, on user only you were the number. at here? not it's you had all really back March, in heavy depend that XX asked great those expecting a forward

points that proof more few have launched we'll it. months after we of a So

for pure year. more what least be to off but come I'm think drive hopeful on me points the bit got to you go at on next call, tell and it little would to here I that's So data speculation going we've of, a next

So it's you work But kind continue to of once see data transparent we'll points. hard. can to we we with be as as

Ben Kohn

mean, just the that George, I there. I'll is I think Yes. add, potential

to a founding it's there said, other millions back the as first tiers expand launch, economy. what's talked in that things. creators and membership then remarks, already Lance to host then membership, comps the you moving And into So at we they of the Rabbitars expanding of creator prepared represent potential that whole to forward, out GMV if interesting be look our entry in so about announcing even with that are we'll as as of rates and going But down conversion the dollars there. of about right more around hundreds our come of

private love throughout else at But So we're interesting. revenue. revenue And this when much and something will around think memberships do as can with you recurring about we for or the equity look Bored way I in and XXst a this focused And to you do physical can look truly the we've it. that and consumers my career, larger deliver. of coupled that I And revenues. Ape that one historically, revenue, on brand others the NFT's use talking in what the any potential Century and not not we that has they've no and world that of versus Club recurring fans a that done, Blockchain a Yacht as saying to membership of about talked we then, is transactional businesses deliver millions for were history type experiences, at have the Metaverse with reach can do to

George Kelly

Honey then particularly additionally, plan year? for for could the stores, And is last seen and has you. in And new you. Thank about started Australia Okay. me. you then U.S. Birdette what Thank talk if since what the Wondering next reopening? you've question

Lance Barton

of Australia have stores about entire they time. closed would as expected terms really talk a been as headwind Sure. performing that half the been quite revenue. Yes, imagine, your those this in open on we would they've got in have what of have I But I'll you reopened, mean, reopening. you've stores if produces

rebounded of snapback bought So, growth but also when be in room a which U.S. we it's stores it's on And this potential. has happened the well. successful lot is lines which most and some business. the a seen in growth lot upside with business we to we certainly demand, what not actually biggest what U.S. huge bought had on we our the when here would in had consistent as thought have the for we e-com the What was expected expected it, along we've of of performing business,

used more Western there Western footprint only in expand throughout for e-com we expanding not also Europe. actively footprint the UK, in and to abroad where we're So the only ways we now U.S., to we scouting but broadly, also efforts in our are here be our And recently well. launched Europe, as

So billboards increase in business. profitable it's the for When relationship. really very symbiotic corresponding we we quite of they act as revenue, a a open these stores e-com kind see

important the an we continue e-com part of to stores it think open growth. plan to is So derive and

and to right now are what there. in both we the evaluating out actively the and is So looking kind we're How but here intend figuring strategy stores many right in Europe. process going forward of open, we

George Kelly

everybody. Thanks Okay.

Operator

you. Thank

of Please ahead. Our comes Markets. Adam go next question Daniel Loop Capital from

Daniel Adam

Hi. Thanks questions. the for taking

Just me. for two

have explain or that to to back any delta? Rabbitar convert Thanks, First, do the million on provide $X contribution scale think some plan to membership of the And crypto? to sales over and around will $X And target you dollars? really you can think then, And membership immediately you NFT price I revenue And many up little members then your dollars can would is million. on launch. to? follow to color revenue as guys. sheet accept how a got Ethereum that Rabbitars. related on the from I you guess on My are how the holding your balance at initiative, me ultimately both base mentioned pricing, anything any to how that sensitive? you indication is? you you Is Do the question price crypto Ben, math envelope there sensitive of

Lance Barton

the to answer going part. first with first. Dan, let And Thanks, then last I'm start your Ben question I'll

terms revenue not recognize way will your net So, fees is the But it that math of out. partners we recognize will wrong. the we paying we're our in of to any

over why the not you that's had it that said we eight there. indicated nine and was So

balance Ether the holding crypto of terms In sheet. on

Eth So the to obviously, Fiat we transaction. USD generated and both

balance on hold the Eth sheet. to our continue We

it about now. and Go for long or in that, obviously, our Eth type what to sense we're liquid you is process percent in amount obviously We're And into investment executing how are as of it operating is the right do the the is figure hold We we total therefore as now, one this we'll the in done philosophy, this determining of run. right continue a very sub makes cash thing. This thing our going Eth. What do and space. assets ahead. to percentage, wasn't we what just to in think incorporate when XX%, But and as opportunity right scale out small we grows here. think as which the more feels like right a

Ben Kohn

I Yes. appreciate.

think is [ph] membership feeling our here. really So the sky the or I unlimited work,

And how provides unlimited Playboy you flywheel Mansion spend. unique company Metaverse, unbelievably really global over all constrained as in I the and membership is perspective because gives members. an be on a this plan benefits that plus those even has for in do with company. the CENTERFOLD, we is consumer a when company a potential This that basis. only relationship as talent deliver not is billion of opportunity years. members physical have lucrative location that doing from this can then financial events far scalability, have think that a And to millions we for with for the couple is with also works CENTERFOLD not to the in It potential this going though as on XX that us ongoing Metaverse, the $X drives worked today a of Playboy that an people together. we person

have to but will as the only all our not subscribers We those now also that of commerce benefit efforts access CENTERFOLD membership, also well. the Playboy on platform

I'm potential on together we basis. moving so, deliver what can flywheel. cohesive all of forward a this sort ecosystem revenue the really And for or of recurring comes this in excited by

Daniel Adam

That all helpful, guys. Thanks. makes great. Very sense. Okay,

Operator

Thank you.

next comes of Moldow Our from question Austin Canaccord.

Your question, please.

Austin Moldow

I mix question basis, I in that around. a when of licensing for margin is I know QX on help at gross have that's anything up going margin. a or But thanks. that you out gross move for DTC? there like see that sort on and Hi, like can look

Lance Barton

Sure.

the certainly Honey direct-to-consumer the it's to side, be addition going Birdette. by On helped of

margin. the was Honey other producing mix One much product to XXX% they're Birdette selling of selling drawn Playboy the and we dissolve that our so a Birdette produces that were than Honey or the is see Yandy own Playboy, of on reasons on and fact gross margins their we and higher because which private own

our to direct-to-consumer on that's there. Honey Birdette learnings what from were scale those as incremental to the leverage a look, to rest in means drive business you we third margin want apply that So seeing the And probably side, continue of quarter. and the we gross as to

do that time. we higher drive to So, over room think that incrementally there's

Austin Moldow

apps Okay. one their early where the a Lyft, And a ride them this the between your you on view usage into mean, do changing expect of other CENTERFOLD, sharing I how to agreements, creator time. whereas alternating is exclusively? more demand platform I'm Uber wondering is? over phones, bunch have And of use not like sort on where platform creators driver will you built and

Ben Kohn

Yes.

CENTERFOLD and represents of So, them there tell reception and while our rest been Playboy that commerce they NFT, very what we working also been than creators Blockchain features positive. Austin, for creators people be the We've can founding we to will I you I advantage, as brand, think the universe. a the to exclusively. the is What have in lot on think -- our capabilities. coming has a without given creator. that with depend overwhelmingly that want, think And us something true competitive different A of will or I is a

working some have in working guidelines two, money, with XX term years tool developed we have when you finally breaking to one to a think continue worked make and of conjunction the And the with best creators. content long with think a but the of our for so, our creators. best our brand, that we And I creators of we've And now, them us. have ecosystem,

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Austin Moldow

what really kinds one launch helpful. It's these are it. creators quick of Got for follow super partners, CENTERFOLD And early up there? in

Ben Kohn

musicians and and all Club which unique of to the you showing on had Playboy Playboy television day also had So really or also back really are celebrities the development brought up Dark, After other the the Playboy to of been creators when by artists, in. overwhelmed the fosters adult and the a to of and to Playboy going that we've huge influencers, the that's truly the stars, they former something from by the actors, show was After show. the community, something creator response and It's television playmates, -- playing Club to diversity be celebrities. music huge I to stars, we Dark, Playboy it's playing And think that sudden

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of so, the company. see huge a can And top the else we're sit that top or on for a doing of everything sort CENTERFOLD, Playboy CENTERFOLD act Club you'll as funnel itself by as

Austin Moldow

very much. Thanks Great.

Operator

you. Thank

Fuhrman Our next question Craig-Hallum Capital. comes of from Alex

open. Your is line

Alex Fuhrman

much question. Great. Thanks for my taking very

Valentine's do this big, you big at you'll sell holiday right position a the holiday holiday visibility is you a feel think have Day about into well. for you as season have Valentine's then key inventory to the for Day, of in upcoming, pretty corner much well? its lot as for think how the inventory coming in-stock a Do As brands your holiday you season like you're obviously point and around which good

Ben Kohn

hard. working really Yes. Thanks, Look, teams Alex. the

inventory it. of timing the is the are We problem with --

So for look, we've and started Day. issues labor inventory. chain early supply We've But it's one, issues. stockpiling Valentine's two,

frustrating feel for but year feel a we Day you like we're personally, that, really far, in and we've a in. good also that as good left money tell businesses. now, Valentine's team But I'll extremely because baked we've we And on a to a the want so achieve our table, And we across pinpoint frustrating. CEO it's is so have we position directly excellence. that can good as right had I

good a wait for we'll and see. position the in and are holidays We

Our that throughout we've would of demand in issue a if has excess is been sometimes demand this historically demand was The is something our be that would challenge And supply. there. year issue. in me the not scare had the

way winded saying But again, of happen And from we in the what could future a long supply the so good right know now feel chain. it. never about

Lance Barton

Yes, just to of add to inventory. that. We've got plenty

have tougher that right the Sometimes that always the is back that that's well, not we plenty stock. plenty see to inventory, it that's The of in inventory. we selling of challenges. get chain supply of challenge stuff may but be And it's part the

been the has that challenge. kind So of

a challenge. somewhat that think of remains I

a So, sure got about good we levels for hand, the right we've more at but our the it's our question making customers. that feel are on inventory of right inventory time that

around really it's a question of mix. So assortment

Ben Kohn

start normally than to stuff in. hope we we've done bring supply tried with and the I would some Yes. And we've normalize. what chains bring that ahead will we've I earlier is think COVID it to in the tried But to of look, future, stuff in at get point

Alex Fuhrman

That's Great. really helpful. Thank you.

Operator

you conference today's for conclude in further as no does queue, And are there questions that call. participating. Thank

now disconnect. may You

PLBY (PLBY) 16 Nov 212021 Q3 Earnings call transcript