PLBY - Earnings call transcript Q4 2021

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Ashley DeSimone

Good afternoon, everyone and welcome to PLBY Group's Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. I'm Ashley DeSimone, from ICR. Hosting today's call, are Ben Kohn, Chief Executive Officer, Ashley Kechter, President of Global Consumer Goods, and Lance Barton, Chief Financial Officer. The information discussed today is qualified in its entirety by the Form 8-K that has been filed today by PLBY Group Inc. This may be access on SEC's website, and PLBY Group's website. being Investor a Relations also posted will is PLBY's to website. call webcast replay and be Today's Please note historical that financial constitute projections statements statements. made during other forward-looking that this statements are not in may or nature, call, including of Such assumptions views performance the regarding the made. business and time and PLBY's they're statements events on are at made basis future we do statements. these not And undertake update any obligation to

those more results risks risks, to subject forth statements to to which This and could forward-looking refer and call, undue should carefully forecasts, during statements. PLBY's you consider these made results are statement filings all do those including from for to differ on place any PLBY's actual reliance information. applies set its not in And this cautionary statements forward-looking with historical Forward-looking cause SEC.

During measures the the to of Ben be most PLBY X-K ahead. measures now principles. not to call the comparable with prepared measures. accepted financial non-GAAP earnings open accordance the today. will financial Ben, I A are available non-GAAP accounting please Form filed These with PLBY to generally non-GAAP GAAP Kohn. in go reconciliation today's call its referring directly that will measures release, is in

Ben Kohn

We on to in revenue for stellar goal use the And for our brands greater. everyone. Ashley. of our in XXXX. three revenue business million $XX are completed And been in good an demand company. revenue and Thank achieved you, We our consumer public, product million our we in year. has the XXXX transformation year some The million way was and afternoon future a for went $XXX $XXX well for our brought QX, talent. great of acquisitions, of skills hired consumer which incredible never of we

expanding in down $XXX logo. the QX, Angeles in walk revenue because pivot one distribution considerable rollout Los chain surpassed revenue costs constantly million the of XXXX the Birdette, years our could workforce, we or just fulfillment our business streets wearing a the products supply impacting Playboy environment, caused this, believe to One that Yandy operated today And us our issues that delayed owned challenges that This York from for over the and of today sales and grew have difficult both store from Honey and and seeing easily Playboy and we of to significantly, without issues. in retail the of disruptions chain ago someone due November. related workforce to to if of Playboy across revenue, Australia two us Halloween Despite impact and You been not we employees New one into COVID Playboy stores. grew our Group. closures group direct-to-consumer has new operating and XXX and supply the PLBY October can't

revenue momentum sustainable will that This scalable the us long-term, a on growth. acquired further profitable allow pieces years. we meaningful to year and foundation a great designed in Our and growing more organization our model fast move digital of business and product transformation away legacy than a a that business women. to we XX% a and and accelerate build sustainable will profit and media into for year, last our business growth shape taking licensing future direct-to-consumer from has services as And assemble now is and

in these XXXX. will this focusing by two We priorities accomplish on

and tech second, brands, between licensing. optimization infrastructure, our the through Yandy brands, our brands continued by will business integration focus Birdette in Kechter advance to WebX consumer continuing with the build channels, priorities, realizing consolidating Ashley bring full we'll of our and the expansion Lovers the veteran, on I've owned including industry and products Lovers, our simplified oversee organization the and direct-to-consumer need its consumer and to to reporting operations digital synergies growing NSE initiatives. my in licensing out demands other structure Honey our To our we portfolio. and And of including around aligning eventually all CENTERFOLD to including robust our operated Playboy Yandy business further these Playboy, First, continue platforms, of our in

or Ashley joins that most Republic spent and us in experience Prior to omnichannel at the brings years a Group, she Banana of seven wealth PLBY years XX Factory ago, running business. January having Restoration RH to revenue growth billion Hardware, spent with as Officer of Officer, multiple where tenure. a product overseeing to successful in a revenue supporting Chief rapid and her launches $X.X during Chief lines Merchandising she new tripling drove IPO, Inventory and recently

to XXXX. And going and from goals. detail through you our product highlights consumer is share XXXX then about key more digital for Ashley walk our I'll goals

Ashley.

Ashley Kechter

you, the I'm on capitalize Thank critical really excited be this grow at Group opportunity everyone. to incredible history hello, here Ben. PLBY business. in our consumer point products and to And to

ground phenomenal the our hit to brand a will been operational mentioned, that Ben to and value and done opportunities job customers able As our I've synergies, team the and running growth efficiency, deliver shareholders. identify has to

mortar are and growth. our brand of values maximize of purpose solidify platform. opportunities. Group With the work, and establish product are our we each across the this we Yandy, of with presences. all that lifestyle represent. consolidating includes offerings and building efficiency, product achieve buying same and on that and infrastructure operating expanding continuing To and pleasure to Playboy, defined customer in increase each this expanding purpose Birdette them. delivering clear in revenue, will delineations and defining optimize This our product PLBY brand build the while establishing Our seeking on between each stabilizing framework, holistically brands brands, and our the and process, overall retail selling focus and portfolio, refine around means role audiences will position newly our order oriented out Based are offerings Lovers strategically will a Honey operating for and This DTC function, this, experience, merchandising a model to goals line our brick our transforming product and we

We stable business stores product expansion operated consumer is lingerie on related with we'll business DTC growth brand opportunities work continue global is owned will awareness. our and Despite that Honey of revenue strategic out those by and plans streamline partnerships portfolio to and a to drive Birdette and with very our partners closed collaboration deliver including supply with to also and XXXX available. we great label. the chain new I continue operated already which issues roll experienced, new started Birdette timing deals and licensing XX our including EVA reviewed two the strong readily to and the cosmetics new The profitable launches the increased U.S. the COVID Europe is [ph] lines, our ROI chain focus Honey in licensing impacted and October’s being own subject own and the for inventory the developed those team. Playboy supply licensing when necessary have by and Drake’s in of in fab OVO

been pass and any of our the I Ben. about work is in immediate also avoid will to it inventory root and and With focused a interruptions I cause I'm will are addressing impacted am establishing in back excited and had transformational our place future. we underway that beyond. in We on While business lot long-term technology negatively to we that solutions measures accomplish some safety QX faced in said, revenue. address strategy, I've what challenges to and XXXX systemic the There COVID together related

Ben Kohn

Thanks, Ashley. It's great to here. you have

our our and and technology of as innovate to top beyond CENTERFOLD for products. blockchain recruiting Just digital an simply they beyond products buying our look Ashley, that we WebX our with future initiatives. We as with tier we Playboy and want hiring drive, designed professionals to did our we elevate the digital NFT consumers experienced are understanding and engage services actively the with to strategy

Playboy opportunity Consumers result, consumers any community. we to and our loyalty, surround create an consumer experience a to enter to effect business. for designed a unique can the experiences a value product, have ecosystem content, flywheel engagement, in ecosystem, immersive continuously and and As both point the mutual drive our long-term a at with

the easy lifestyle. inexperienced Playboy entered want only licensing Not owned and our point and operated our because they Once do and come an previous with us stay to and us with brand they making with associating DTC have are are That's revenue so are who for they why brands. a clothing they with have our about by our brand statement the it's in the in connection consumers emotional of an discussed we've consumers entry or to to physical majority they Playboy ecosystem. to accessible products, engage provide As NFT whether also and important. believe because or can they calls, predictable customers awareness, they ecosystem, digital but drive consumer and us they come entities, what our businesses

the provides creators their creators been of a that consumer well achieved beta and increasing in optimize this and have channels access a potential for Our impressions is the our can verified expectations affinity XXXX consumer a our this new engagement desire data they to the with feel the segments, in from last new the Overall, year refine And By ecosystem. for to exceeding desire organic to beta really loyalty, phase. with our social customer on of accelerated in mode which point community is launch journeys, glean platform across that rapidly Playboy to media their and leveraging continuously associated well of is connect experience. foster creator millennials of high been to consumers platform their user value testament approaching the the platform. as digital and multiples creator lifetime our we Playboy and be look has for of as our brands, robust led we and the has are far community, and December, digital waitlist alone, fans. with engagement CENTERFOLD because both Gen-Z We platform billion received. X.X demand this. seeking, And

of livestream process are the and SEM founding encouraged Playboy a key access the including turning or future. revenue incorporating creator launchers creators, the we we'll our and really the An ecosystem, on the and from in to traffic phase, coming are we the and means a promotions, months. that seen robust thesis and enhancing volume we example B's features on live the to of high feedback of session what beta new for fans have surpassed high already And during the It of strategies. and is has built functionality confirms by our the point in funnel be which addition, playboy.com. to is SEO the Senecal XX. our new February monetization the in Also, ability as In marketing traffic you top of platform, importance about with may component the Cardi from organic the roadmap, out

Cardi she our their on share in brought we more Playboy posts B late for know, in CENTERFOLD of to talent first us in new who as attract you about director of help first Cardi us. B in piece and creators on And want last fans creative photoshoot B's every is to be that residence first see loyalists. platform. stream, news and engage role As has brand recruiting. I that directing can't to secured aspect were her ask what the year Cardi with her her founding will creators live to about B new that Cardi she they wait to audiences

the onboarding new B's be out CENTERFOLD, CENTERFOLD of the of town more hearing ahead, of of about fashion, was a recently we platform. verticals are the addition as Cardi a to addition who art, In database Khalifa, the who the of in and months music, a for steady number stream in and lot in joining Mia we creators announced, gaming and talent comedy is across activate process move fully you'll new

capture the enhanced and Playboy technology build provide as and will with in explore This business with given we because multiple are a internally will to products us the public align technology, we fully greater company. greater Club direct as data our relationships This we continue products. year, be ecosystem, leverage our will In and into the enhancements, Playboy a consumer. later to of we across unified As supporting yield we to product unifying continue this speed this creators are reach. to hero allow scale to we not Through Playboy able business around will out CENTERFOLD. ways our important TV integrating our investing certain focus

strong of demand excitement and reiterating stages than believe my close we more our momentum, unlike While model will will great are I the This insight engage brand ever and transformation the early want Playboy the years very and I be given brands in for recent our about deliver ecosystem and datafication, the user is and in drivers. power changes and by limitations. privacy of this tracking I valuable to growth business solidifying, to over other envision ago consumers. that the long-term margins surround unique value our with restrictions, it

Now I'll the over Lance. the call turn

Lance Barton

the was fourth $XXX The branded our quarter year-over-year year kept yet $XX surging the for Playboy QX Revenue in million. year. Perhaps continues million as XXX% growth up the doubled terms quarter accelerated astounding found for Ben. to in a ways from grew of growth direct-to-consumer Thanks and demand which Playboy full year QX most to to we revenue growing new of our scale into for over see direct-to-consumer company revenue quarter. fourth year-over-year the products. tremendous to growth, resulting an XXX% year we million and tap was revenue importantly, ecommerce $XX.X rapidly. XXX% of best in It with

For $XXX costume XXXXs not success, and we we us, official capitalize Halloween, celebrated few sold Playboy commercially be a first supply of the knockoff to for occurring costume were $XXX in recognized terms, the meet quarter, able units in site Playboy between bunny of the for the demand we paid and cheap to doubled the of to Customers from organic huge iconic made the conversion one the directly were weeks time to search ever, suit we the first the available on each of was bunny and costume. us. it and and rates public costumes traffic most delighted with able from and all purchase authentic and that some for world,

and shoes, the products to We beauty look also the for were jewelry complete upsell tight able to other costume. full

COVID, revenue sales holiday tripling the to rates began in government numbers million it and Playboy saw history to closed quarter and the Friday November, month gifts in but we business on December as in conversion saw Birdette, in big As sales quarter highest year in started $XX half Honey ecom, beating stores At and November. being playboy.com led of Black progressed, the rebound for of to end October a the generating due quarter. to the strong their managed of the with the restrictions in Australia the lifted fourth even

our Playboy. at to of average both million and our But track year Yandy unfortunately, by September. lost dollars up the revenue see to success Europe, million opportunity both off start notably have month revenue over stores products, shut the see performing for best plenty launching costumes that on was after ever. stores we've in on by than success of anticipated, strong Yandy over and this had label with Yandy XX% intend least Yandy revenue store our our early for got in to Perhaps growth in and fact down week an globally a Australia, We and continue is are at to continue private and earlier than in in that the to believe revenue open we for Playboy a to scaling with ecommerce most something beyond. more XX and per And incredibly lot we this to we growing highest its leading U.S., that evidenced well just we U.S. European the plans seen new what demand continue operations already the we Halloween in $X to with year. keep was October outperforming the for couldn't fact a in

in $XX secondary bolstered $XX year fourth company sales full impact that the backhand increased and launched year NFT invest we businesses, public bear quarter in a of was successful across saw for we prior. that direct-to-consumer the million our didn't quarter the and a the to our was of October. collection as nearly revenue addition EBITDA to of costs unified Rabbitar direct-to-consumer launch business, in strength from being continue Adjusted us building the we all and the on late subsequent In the million

once the next expansion months, the have expect margin Our XX technology, fully implementation, and we to but in over to XX out rolled contrive the continue will investments infrastructure we XXXX the such to related and in acquisition. customer areas across consumer other quarter, businesses we beyond. shipping and inflation COVID impacts and experience continue cost as fourth fulfillment, Similar numerous to labor,

of in entered XXXX. the our options agreements in made and stock the restricted fourth Even and those had net PSUs worth Our a as was fourth half largely ended balance amount million time million in $X.X pursuant share. equivalents additional Rabbitars first into We high our quarter were performance an formerly was performance granted the trading positive stock-based was metrics $XX wealth our grants we granted these X,XXX of was the a around been the F-X of and of extraordinarily loss plan and and get stock in was were also based running. could cash to the and made, large of on put adjustments. file. business and quarter the quarter. at expensed time, out sale generated based because It grant. of RSUs the on systems calling XX/XX. were most options for driven SPCs were our employment expense stock-based on wait awards, it year, that our of days though few have that date the a XX per quarters around we the our before compensation by of grants accounting on a minimum Form to us plus $XX issues was in equity the And few formally that because worth with from The would quarter sheet leaseback, of It's cash the at And close up higher That's to our grants non-cash flow to fair early the driven compensation achieved also value of we which the not reasons. took we until administration on registration around the

we this in revenue more our expect as most XX% it along in XXXX. XXXX expect scales last growth come roughly with approximately from from revenue. to we expansion ahead, million year, Similar see be year. continued should Looking that's of $XXX growth of businesses, over later year, to the to direct-to-consumer And the the for licensing contribution coming revenue CENTERFOLD and growth

breakdown a revenue anticipate first of And expect fourth I $XX quarter. quarterly to revenue, be of in terms the In the to back third year back coming in the approximately I of year full our be quarter million. around -- a with weighted the

our the And by We to margins EBITDA of quarter we at our outlook for expect of everyone margin of by goal results. distracted XX% to on so year of EBITDA and an reaching later the be revenue first about consumer we getting start I million lag quarterly remind only which $XXX to can a the on. want annual should without on guidance, focus as to provide product about rams. EBITDA XXXX to ramp philosophy management adjusted company continue with revenue year where EBITDA chasing million and this financial come is the and in our the that as team, long-term around also half the of bulk may come lower similar year, in as the year, $XX much revenue investments fourth

demand. and demand updated continue for $XXX is of E-commerce theme it EBITDA. branded of we incredibly to provide retailers a material Playboy there of see are and outlook the is some funny opens there of seeing launch because Halloween, building $XX Birdette give to products on profitable These our macro it's when via despite questions. capture runway fact operator investment out Yandy common our If But than million when develop our time Honey especially Honey best our when stronger streetwear to of ultimately year, IP platform. deliver new takes for the sales line ongoing million these headwinds. believe both strong. expected royalty this and that, to is the I'd a among increasingly merchandise. our monetize year, optimism, This against long one something With to the channel, business, performing that and branded will in intention of deliver revenue stated like licensing, remainder we're deviation innovative business the overages a of goals continue and Gen-Z digital growth our has going largest store items building collaboration, of us all to Birdette an executed costumes and strategy Playboy to we great no coming on years. scale have out for reposition We as ways strategy our both a what well our consumer direct-to-consumer the company in We given when execute unless our by like of the to results direct-to-consumer we for This the investments we open this how

Operator

with Craig question Instructions] [Operator Our question. Alex from Fuhrman you comes may with proceed your Hallum, first

Alex Fuhrman

much very year. a on my for strong question. thanks And congratulations Great, really taking

It you by little driver Thanks. First a lockdowns as were a the the brands the talk And both about Australia. constraints do constraints negatively you how performed even QX see those company your public though the Can bit of the impacted and sounds well COVID quarter supply during direct-to-consumer quarter? in as playing of biggest year looks it each of like out segment in was all the how XXXX? of like rest as here. brands

Ben Kohn

Thanks Alex.

hadn't really a talk the buy. a costume. sold we ever never had brand always or it Playboy official and performance so off start highlighted actually great season. Playboy both unsanctioned the earlier. sold been Halloween bunny and of not Yandy we at selling ecom, I’ll So got the because But about to We little It's I bit

season that into one. this carried holiday official buying big a really the We November the October So into had for over December. into was and Playboy

the one the quarter well been Ashley closures continues because is know once those store was us. to buying been of do ramped Birdette store terms in of that Ashley, start of season. As holiday you Lovers anything actually do to but and have reopened leverage kind of really have there a for to slower elsewhere. And do is being I Honey into quite the can the to that? really mentioned off in we products goes what of that an studies you want interested a saying, we don't to lot Ashley in able I add It's the

Ashley Kechter

Alex. Yes,

impact last COVID think in a definitely I year. played our results huge for

Lance whole As said, dollars of us of we entire millions a had week to shut warehouse revenue. the down basically which cost early,

have as as previously fourth We licensing impacts, about business talked our into through well we continued that quarter. the

some and this are exist As be Playboy, working did really ease. to guidance And I'm only to supply around on of ability, by what we we the the before. Ashley baked was things not numbers. into is for right really the that far excited the expect is I will year, with seeing our which chain that think strategy as merchandising Hopefully not now, continue challenged. this

think into we that. a opportunity to Yandy Playboy the Lovers huge the on Ashley, Lovers, the side. add? also when expansion I brand at pivot So there's of want continue and really integrating But as we you anything look looking at DTC else and But to with playboy.com

Ashley DeSimone

as spent we've within And we we grow demand got incredible I'm here the power the the and but a growing quickly build for now, Birdette a just Honey as Playboy excited and Yes, awareness to I brands, benefit health talent I about. what have those and each then standpoint, we haven't I, to of weeks standpoint, the that have about enough from those leveraging fact portfolio, and time nature in brand Yandy think six and been me, and from that a within defining big brand the yet, by role and really just I've brand as the Lovers plays really integrating mean, out. opportunities

we to drive much us I in margin business think going new at and go opportunities, scale start really bigger key in going so pricing looking after bring expand quickly, growth. bringing after private will margins terms how more business enable to label merchandising opportunities after into talent, some capabilities, and the And of that to is and

about so aggressively we it go thrilled And I'm quickly. and need and just the after potential to now

Alex Fuhrman

all new What if of deals business. are priorities you then year start I licensing might also about great. terms have for product recently. there new of licensing And licensing been that. meaningful It sounds could And and That's to your some we the India Thanks, for have impact? signed categories? markets like other a regions in this start see and when to emerging ask

Ben Kohn

Yes.

years. two in been some first licensing I So just back office announce with obviously, COVID, in if of actually, of years, renegotiation travel, in the the our I'm of happy weeks, Alex, expansion today, down, to has slowed our in two two the to basically two inability shy we're day is years, think a week

to the obviously, get supply delayed was did deals, launch we operated those the we're them. licensing in owned domain robust focused trending we to United are But continue markets have launch States, markets given in and outside backlog of our deals, pivot pipeline to We in great with that system. expertise that we we sign did a of partners. chain there, did in for channels India, collaborations products, on our in was team we doing sitting the our physical as some to the launch last coordination physical delayed have back operate the of we ton issues, where of part what but the road. the excited the international most products, So a the just and year, and

Lance Barton

we areas PacSun Outfitters also at in $X,XXX of sales U.S. partners from strong actually seeing throughout strong Myriad But consistent we've apparel on also probably year. from and India, that growth and Urban ongoing those it's Alex, retail Chile. we've internationally, from royalty Gen-Z, and see seen some brand our The been especially we Asia from partners headwinds despite we've mean, I other this seen thing, has been that been really COVID, you've throughout really seen coming overages our and getting of a like have all with shirt. And

are the the So has with of that again generation. these the demand optimistic resonant about most here because brands really some younger

Alex Fuhrman

very That's guys Thank really helpful. you much.

Operator

you. Thank

next comes question. with you proceed with Duffy Our Jim Stifel may question from your

Jim Duffy

you. Hi, -- Ashley. Thank you'll the a reporting be the address controls? weakness internal want and Ben. expectation Hi, can in and delay you Lance, start I XX-K Hey, welcome to of the lads,

Lance Barton

Sure.

had a when we So company of last emerging which the an for for stock up from compliance year, were filer. being and longer we switched we year with measurement large the is timelines to company in we a first than emerging June price run an growth on better large in much the SOX XX accelerated last reporting We half accelerated growth worse that when terms in the date. started filer of

we the expecting slipped was first That the year six on not to SOX in compliance public of as switch spent do have June year to first XX. XXX So months the a company.

So we new with our us also have auditor our new PDO, auditor been scrambling joined just July. in

the in that is the we this all really So been time, for done try have to why of middle extension. we year of get to which scrambling since filed

we the the on year the timeline and size a world. our size reporting for XX So, the and a reporting our much with were Googles here for a Microsoft's was of months actually that timeline of longer. And ago We're company we of out gate. are

is So that's driver right now. the really what

Jim Duffy

sheet can what get will like, some Things preview on Okay, file? look like? financial inventories, related, us balance forth? details, give it When the you suppose, do so press position, receivables, shark on you release really I of thin

Lance Barton

because other position cash go finalizing our $XX still process I million going here, details the we're I'm not audit. of Yes, of the mentioned into in of to any the cash. with on

that any right work preempt now. to want don't of I So

Jim Duffy

Okay. business. Thanks update very one my Ben, CENTERFOLD in then, you interested the may, just I that on client more, And if the base did for detail provide.

it scale? a characterized are ready How as stable the now you of You've many the beta platform access? have to for through issues? technical worked launch, audience Is the audience How's premium and building? paying

Ben Kohn

for Jim Yes, thanks the question.

something we very demand product because already has what our to level feel period And a October. want wanted what had time, important to really internally to And going So demand look I and But and December. we like the we acquisition a dream that launch of product. late of did think exceeded we a look accomplished And we've developed we the be to they that late at with in was it's sort accelerated short in in set launched expectations. creators. far they from big of

push so we And that quickly. out

et months, I you there's think XX a work when to accelerated over through development our there's systems, component, really start about complex the because world dream by a creators component, the integrating our payouts back end cetera. all funding but into acquisition

will our end be thesis, I the on in and is, it that that beta really say what few is next have few turning any nearing can proving exceeded that on has are then. launch marketing weeks. would And what here our be we and long seen CENTERFOLD We marketing we efforts What a very term without the of traffic of has centerfold, on playboy.com. creators our

and that funnel the the ecosystem, think very about to so it's promising. of you when top the of And center being CENTERFOLD start

The the other demand, said, say creator would been thing I great. as is, it's we

a of us. reached, then, wait as creators. are our become founding milestones a exclusive have And of lot We to creators huge list

And few and over so excited weeks, next second we to initiatives on the into turn the as here monetization move quarter. the then revenue continue marketing the to

Jim Duffy

so Helpful, thank you much.

Operator

Thank you.

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

your with You may question. proceed

George Kelly

for everybody, questions. taking my Hey, thanks

continuing year, and new it's just highlight to if parts mean, the morph of could can going can So the grow Ben, with What -- CENTERFOLD. on where kind within we the year? adding. sort and you I over you there's expand products be maybe course CENTERFOLD biggest mentioned to or out -- two, functionality as functionality you you of know that or product areas course that of the you're look continue this over that think of of you the one can iterations I improvement the the two of

Ben Kohn

right you versus don't places, Those if subscription turned in on. the we because what at functions Yes, so we have haven't we and we today that have largely look exist have others, today messaging.

inherent debuted the we then work which into later will limited Playboy And the through to multiple before, of as this mentioned on then functions, see have we'll on two site, improves you'll But in as Playboy and products. think TV existing discovery start that the And see you'll the are to we for year, the the working move we're on the there calls that won't Cardi And we SEM, the move we tipping and site, action revenue will Plus CENTERFOLD, platform monetization, And are some see turn at that we that. that houses SEO XXth. XX over so as legacy million start on interesting in integration TV, to those And forward on to happen WebX blockchain product are year. the live then you'll really to homes. these initiatives Playboy sign those the on into products a that. plus given coming on product. which video There integrating the I the process as enhancements

Lance Barton

part really our other thing with this mention to monetization of the to wanted that to and improve do feedback The we George, their I interaction and user. get mean, big how leverage creators the really I is

we So driven and towards. with feedback creators, and that the to really by we're almost everything be what building going these we that partnership is that that's have do by

Ben Kohn

that. George, for It's to yes, is we've a last Lance. what great just on that's days And the doing with the build been XX creators. working point,

look the launching it. platform when think I a feel is big of with the new thing you're and creators what's

that moderation quickly. as accounting guidelines, that onboarding office well demand. cetera, with MasterCard the and creators, huge will really back then, received enhance worked pretty here content creator on has been et that's think led integration, to that start we amount start the to to of ability And our I systems all

George Kelly

me, then And on helpful. guidance. That's next your great. okay, question Okay, for just

don't the I'm these in to you just a expect together look much Or So and digital what those contributor to in $XXX contribution? Rabbitars million break And other can help contributor revenue size sure how it I I contribution of are comfortable is, and not CENTERFOLD some kind revenue, underway? segment down of be number, if what year material know you of be of else? just so of initiatives if lumped at CENTERFOLD, end? think about to curious you're you there'll anything or specific but hope going a your saying? sort with by all you And I'm a to do can give

Ben Kohn

sure. Yes,

we've that there focused, continue CENTERFFOLD. really creators the CENTERFFOLD we're incremental from have actually on we look digital it is, see going got big that you're is have at revenue piece, contribution the be by which never, and from the a less upfront And more monetization that user coming three digit then should the and to contributor going of as in as bulk it's Plus, the to Playboy mentioned the so direct-to-consumer, to now, scaling marginal double therefore, But the growth reportable features that really as time, right, to material this really to scaling focused So digital year, similar But I segments, on bulk of grower. well. from XXXX, focused licensing going immaterial a base, not it's are rather driven growth right and the from And the we've to right position revenue on goes. around some its side, growth you're XXXX, on the evaluate in this now coming XXXX. we'll

George Kelly

helpful. PacSun growth licensed what those had. us you've just all the And kind retail or Thank two given you past, business? else number was in and That's then could four sales highlighting your you question update anything misguided. of you. brands last the me. I that's Okay, with worth for I In from saw curious if

Ben Kohn

Yes, we those to partners. the continue coming from see overages in

handy. continue what have they've to set But up the So I don't growth for outperform of they again, exact them us.

George Kelly

Okay, thanks.

Operator

Thank you.

with with from your you proceed may comes question next Our Austin Canaccord, Moldow question.

Austin Moldow

you even curious, bit in robust expected are XXXX? you're launches growth brands Can which revenue Hi, qualitatively, expecting little of the revenue thanks for Maybe just that private more? what DTC label I'm year? reconstruct for in the product A sort taking my outlook? Or questions. particularly

Ben Kohn

Sorry, that the growth I mean, we're direct-to-consumer you said anticipating? XXXX in through walk

Austin Moldow

talk from revenue to you if could XXXX Yes, DTC growth just primarily? that is what coming

Ben Kohn

a there's buckets so few right. Yes,

We've first Honey talked a open only strategically, new Birdette produce derive percent managed Not profitable we've how stores here. we but is EBIT the itself they our and we wanting before ended after new really running, they be to Birdette of first business. like XX them Honey about XX and going add around plus year to So got increased e-commerce for up to margins, also these stores full billboard they're the do these mentioned when up revenue.

plan U.S. strategically in primarily somewhat stores the Birdette So but part Honey the in also throughout Europe. growth of these for is open

that talked Can that how across And be they're unified both know more back all from in beyond. ecom a tools to of runway, that year, I continuing Ashley that pursuing that's we certainly what do more And as So underpinning and growth really we our can more have us, especially on sales start lot so insights and around, IP really of a about our and ability can also at our got we out Lovers, then see the Halloween this. drive And from driver. And ecom. out. a perspective? on then, even out We've infrastructure combination to joining broadly I get to all of we little into can of data driving with have we start pull. that that, building so help Lovers Playboy we those this going build long to how implement think continuing bit front. that great that Yandy, then at scale, can the levers we we that later our growth think brand add we do it leverage we is when more a really And that talked Yandy, also, she's growth Playboy to do these, leverage about call, think we a business she's to a earlier it's really initiatives we to

Austin Moldow

meaningful sort now, it to it. right say playboy or does Got ecommerce playboy.com of like, is compare Yandy? how How

Ben Kohn

just it's smaller in started it Yandy, than we mean I because XXXX. monetizing

So something, you've grown is. much than from much, much, it larger to nothing

So to going scale. it's continue to

to to and out a doing. contributor growth and it We specifically. But it's continue direct-to-consumer we expect been to haven't broken our nice it

Ashley Kechter

I jumping in really just think, there. do

starting is a we brand grow Playboy the more opportunity. bring and just those drive there's I everything integrate other and Yandy, elements grow back how about opportunity Birdette retail the we go effectively, leverage some significant to after leverage using footprint half to how business because think the using to the Lovers the Honey I of product opportunity to to think together growth,

Austin Moldow

mentioned most Got of spectrum terms the it. only from thus sort fans? it the Instagram maybe of between on Where actual adult industries. in I far this And the content. know, a on like creators, of but say, sounds CENTERFFOLD, are of types you've see do the and sitting one you array and wide

the So how just be alongside brand? it'll on color positioned for looking

Ben Kohn

I'll so pick this. Sure,

been sort So content. used Instagram more I their term, is your really than hardcore we say of this think long fans only adult has on I uncensored made what reputation as an would which

things cetera. activations. And I be that joining with continue around exciting so then that will Cardi expand we’ll have et as And us comedy to creators we mentioned, do from that B, other on music from

place products content in And and place to for that market, market also the into but the other think perspective, largest works really centerfold guidelines from we stretched, in in are the integrate of so long-term. as us brand a the market then the funnel top and the only our we not is as commerce that is a that place the look

Austin Moldow

Okay. very much. you Thank

Operator

Thank you.

next from Brian comes with Chardan. question Dobson Our

your with proceed may question. You

Brian Dobson

taking thanks Hi, question. so for my much

quick on CENTERFFOLD. Just up follow a

the where far content of user application? as interaction is the your most using on subscribers or As desktop mobile that

Ben Kohn

The mobile. Good from question. you. users of the Thank coming are majority

So the coming CENTERFFOLD today we're from seeing about on mobile XX% devices. traffic of

Lance Barton

mobile that to clarify. And web

Brian Dobson

have any demographic your base? you user core information And do of on kind

Ben Kohn

users numbers and we add marketing at those of behind we've grow set we're end we turned we level to interested We year, creators, what approaching the and to again, in. of not And at It we going waitlist something to the the who are, as they're is December XXXX just point, the engine continue know launched creators XX know consistently on added will point. this verified at this long us. share this sort

Lance Barton

the I you hundreds referring broadly, millions think One when them about mean, general, dollars and those at we people XXXX, our were in batch mean, but I those, when specifically with Playboys it's of got thing us consumer. probably our of for about the you've of Z $XXX Rabbitars, products CENTERFFOLD bought pure they platforms. value. individual of more older directly fashion can on mean, all engaging and think you demographic look per just across an holders spending you today XX,XXX I we see to other Rabbitar, spent Gen and of audience Rabbitar

different across within you're reach of a range channels now, is is people, have the brand But right itself a it important resonant younger really So, you're especially female going consumer. to -- across to different going a wide demographic.

Ben Kohn

specifically you before. media hope I And allies grow, also and fan quarter we making revenue push marketing the the would audience. the creators just monetization, We've should think Mia Khalifa’s as to that is to is of different when CENTERFFOLD, do second is, the Yes, new start then we've of turn as B's it here, the out platform talked sure founding with numbers the social features, depends followers product the as start we move bases. creators marketing on and we it what than scale about exponentially into their really to to as And the those so Cardi there. you're also there our audience that about talking who is tried creator with

Brian Dobson

design to Great, the give much. And on you Birdette would it thank your other an be you offerings? lingerie in at for terms leveraging possible team platforms, Honey of across very update us then

Ashley Kechter

Absolutely.

seeing a in are we should sourced in significant success terms highly Birdette team. amount processes categories house They are and Honey strength the be factories in really lingerie strong other the design, we in have leveraging of we that So and of do bringing to technical. how tremendous

be private year. lingerie to on our of we're targeting the trying introduction we're in partnered label categories Birdette as do later terms kind first we to across what team point is our the jumping a well merchandising Honey launch so and design off with of categories house. that this for leveraging that other Birdette, label team then build where will the And And and Playboy, and as Honey in out of private bring all through

Brian Dobson

very you thank Great, much.

Ben Kohn

Thanks, Brian.

Operator

would I'm questions showing at Ben any any Kohn not and the call to to further you, like over time. this back now Thank for I further remarks. turn

Ben Kohn

joining we to want call thank forward you to our talking the look for to Just future. everyone in and

appreciate So it.

Operator

This you. concludes today's Thank for conference you participating. call. Thank

You may now disconnect.

PLBY (PLBY) 2 Mar 222021 Q4 Earnings call transcript