PLBY - Earnings call transcript Q4 2023

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Operator

Good afternoon, everyone, and welcome to PLBY Group's Full Year and Fourth Quarter 2023 Earnings Conference Call. Hosting today's call are Ben Kohn, Chief Executive Officer; and Marc Crossman, Chief Financial Officer and Chief Operating Officer. The company will be hosting a question-and-answer session today. [Operator Instructions].

While we wait for the queue to fill, I'd like to hand the call over to Ashley DeSimone of ICR.

Ashley DeSimone

operator. you, Thank everyone. Good afternoon, on to is remind X-K information like be that today Group's and website. everyone in its today accessed may qualified which Form PLBY discussed SEC's entirety website by PLBY I'd group, the the by filed the also and call the will to a be is Today's Investor Relations replay posted company's website. being webcast,

on nature business Please do the future statements that are statements obligation projections or note that other Group's Such to PLBY statements of update events and any the statements. made historical basis during they may in views this are regarding we forward-looking are made, undertake made call, performance including financial assumptions time constitute not statements. these not and at and

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

call, the Such measures with refer earnings today. PLBY directly most X-K not is in to company non-GAAP measures available non-GAAP of accordance principles. Group financial the Form generally release, measures prepared measures. in A accounting its the to may are accepted filed reconciliation this financial During non-GAAP comparable with GAAP

to I the that, With hand Operator? back the the will begin to call Q&A session. over operator

Operator

Instructions]. [Operator

Canaccord line Jason with from Genuity. the comes question of first Our Tilchen

Jason Tilchen

well been place of -- this recovering you've much was one driven to minimum curious newer over in guarantees just release. from of more that recent versus press sort in partners contributions our came maybe some that have the adding expectations. all months? you of of already the by recurring of start in questions, the I'm revenue for Thanks color few the helpful off. ahead Licensing pretty how A

Ben Kohn

especially It's where and we are the on Jason. rebuild licensing China strategic We're Thanks, Ben. business. happy to with our the business made we've changes

negotiations as are legal former licensees terminated active there. licensees as in after We of to going the our on a basis one replace over well

what is we're especially So we're starting from see a to stability, traction, would in that say, see macro and to I perspective starting business.

Jason Tilchen

Great. of do there? things be, in changed some that to of helpful. of has the maybe ] Birdette. had business now, of the would have marketing laid one And this a at year, your quarter, but talked talk follow-up an for about you your to Club that momentum then wasn't time I'm it that That's you about it given see a in strategy. the I QX, backdrop, goals Last [ part advertising to your opportunity core in to set of didn't right to wondering, organic you some of longer on as see look within terms right that out leverage Playboy market sort you how, that business if Honey term, the all? that the view and sort for And creators goals you drive

Ben Kohn

Sure.

performance were we're and I've what bottom and line valuable goal interim, the we've to starting our the we changes Birdette line. is to Honey But in said reiterate those, the I'll So on that top see and through asset-light a an historically is model. to both brand move believe we made the operational make and is very the to

far. consumers all few from resistance increase a so the given of that XX% We to are the over products. had in ] [ haven't And we've seen to the any mass seen making price We year the we that past process not really consumer this years. the as done inflation

owner right And that. so our the for to find goal long term is still

interim, in our for just shareholders not are a as to we away fiduciary. But asset the that the valuation wrong give going at

continues always the market to as debt, and improve, delever to so our we're improve goal hoping the to opportunistic, conditions company. our And is business especially be given an

that. integration, every with I well. but we working now that and right integrate you think promises, creators are We're forward, to come something things creators down that there's a app road Birdette. on I other can system have event introduced Honey tell better having do, Honey can far there we'll As wanting within with in And for the the we've into our day lot with think we now promoting creators Formula be working Making Club and that Playboy yes, X reward as to the I point our Miami of rewards Birdette. as office no into tier merchandise moving

Jason Tilchen

Okay. Great. That's higher And helpful. following at on just a really up level, that.

marketing can the In terms to -- headwinds about into and -- and talked challenges licensing the you of year. how the strategies Curious you because platform. much into maybe some creator plan you you this of didn't if promoting really of invest as year, deploy dive last

end on that bit digital I'm wondering business. of how and release you're if there's growing that plan. a about can the going else on marketing at the press talked share anything You little you to focus

Ben Kohn

promoting year. we business to still return have I year, growth line last on And we a Sure. But nothing I top and we think to these I lot I basically saw or last the that, its expression go release, we a woke spent phenomenal the the that about in company and and in are think earnings sort hear broke. what think people think, And of roots go of marketing days were. that talked

I with this plan of content been historically content, through lot we way working was beautiful that the think on about and always expressed a a And into back we that year. has the this women. getting business is game

goal creators. life bringing acquiring producing of And the return but Hopefully the of with on so that and Playmate. will lives other platforms in acquiring many content magazine, including then to forms, come the content back audience the also that

mind, And and they they about and reputation. so in as make as the we X to money, make brand money care things, build to want can. much they They think want creators possibly their our want their audience

Playboy, And we can we at all X. fill think

also I membership, very but spend that revenue, membership and gives actually against our for does a only we think it increase can marketing. it is money product not launched us strategic us, we

our have generate now done to creators We also we that a helps spend majority with money through We way price the on brand the market content generating to the organic point, revenue And us most not today. the Very of the users are performance the that's licensing happy to effective But platform, that platform creators. we $XXX of perspective go it our and from marketing. will But content. have sort actually through to featuring all new that think be spend membership. of side. off the with

Operator

comes Our the of question next Greg line Pendy from Chardan. with

Gregory Pendy

XQ, unattractive wanted versus Congrats the the wondering XQ stores. locations any color I very to because they typically a those standout in X that strength brand? pick in I color you on decision the if was made overall just kind to carrying they're strength I at high-end of on in little could those in stores into know but from an on close Honey Birdette bit. lease any Were provide what locations? Or

Marc Crossman

around stores they're have Australia It for that. and some of was stores time. in lot a in quite the primarily -- take I'll been Greg, Australia

CapEx have and for life put refurbish to whether a looking end we're these we'd of X-wall amount at they're versus leases so to the or in running also loss or And not profitability. at of them

story new you'll them life, put would CapEx the dollars we of close year. said And us we refresh of see come still we have that that to close. so the has had to That's it's about to release, to course there probably if a that And we in have the it, earmarked and a are money. lease in X as losing over

Gregory Pendy

Okay. That's helpful.

near going So there's a the end be on lease probably termination of fee limited they're life. to because

Marc Crossman

end yes, a The looking there won't are termination would ones -- fee. small be of ones be life, but the that we're there's one, which there near one at, that

Gregory Pendy

the want It understand you've make shifting are you like That's the it one to improvements And and that is just will strategy. I sure a hope helpful. just Okay. fair to but thinking to digital then creators support looks like creators the Is to the drive say? know I versus it's how XXXX. changes then the maybe -- that your the lot really just platform, gears, competitors of it that in seems I made and strategy about subscribers. on guys

Ben Kohn

Thanks, Greg. I'll take that.

was doing creators. used or for So the Obviously, historical are the what doing, it a we main I Club. was research the the main what of in some didn't think consumers, with we Playboy which with really the we couple support purpose people means interacting branded found And action platform, things.

our come of that from and seeing the And Playboy from creators. From so funnel what clearly to there's hearing we're things perspective, doing. Club with users, a place number a supports from now user we're the what we're interact

So own that and first, a their Instagram, in their link creators mostly platforms, users TikTok bringing to the to they're whether buyout Playboy their done be where that's putting media social through or their platform, page.

a just that licensed, of to which called Playboy have because XX iPlayboy, we that stand-alone users the the of have years strength our was brand. actually, does membership come XX also into at is We archive, what replatformed been sits recently of And product but a now. But allows years of archives. it code. one that to of current SEO actually replatformed part site. importantly, our we And It was it us third-party it as more historically

content so more to to obviously, traffic. produce moving the organic forward And alongside to that things then drive seeing And creators. our is, we're strategy start like start third

whether to Spotify, like et historical content XX of sitting people like on driving back With we really content with to franchises think platform. are third-party our on YouTube, that's the platforms, creators on our highlighting that Playmate, goal the a cetera of questions, podcast goal what the video

with advertising creator is think that advertising in we'll content, thing that revenue other share put can well. -- advertising against revenue programmatic The we as our revenue and we

Gregory Pendy

the Great. quarter that's on helpful. XXXX. and Well, Congratulations good luck very in

Ben Kohn

very to as of acquire the other Greg, I'll strategic mention ability forward only is users moving the is in the launch thing membership well.

almost interesting a affiliate Plus we've an our date It's traffic so never we've And actually members off come just testing as seen Playboy deal. platform. bought is our for. what's is our Playboy actually of to we're that XX% Plus funnels platform

traffic think we there. to opportunity over start our actually another so to And strategy there expand acquisition there's

seeing we're up signing of subscription that separate Playboy for up then a membership. but people product, signing Playboy for Club are that Plus, the conversion also It's

things have that we flow. in a Long enable and flow Plus single will that user so seamless. look make replatform those release, and to us that to we like both more playboy.tv said And transition user Money can and on that term, we press as so Bunny sign products, Playboy the

Gregory Pendy

the in just And that $XX then move to $XXX. And I Bunny and there the right it's understand, helpful. now now, Money incentivize membership? is That's -- the right Okay. so help membership is it

Ben Kohn

Right the We et right your spend So point, poker to is continue creators we it's the spend lifestyle. get Money on you events. to as favorite see cases Playboy that different price membership golf Playboy is long in now, tournaments Playboy tiers $XX there's then think of at of being Bunny use more now, on term, to creators. expand Money limited of Each to primary the more part multiple of higher XX use cetera. to but tournaments, one Bunny unlocking the $XX -- nature and a membership.

Gregory Pendy

the on the does one user lower I see the end? the that it's of then of Bunny fee know also your on Money. one using only bundling final kind And the Money? Does Or transaction. Okay. benefit Bunny

Ben Kohn

multiple there's different Well, [indiscernible].

just But that transaction yes, of fee as card transaction. we Money. from started our is perspective, a with well credit a pay way the as percentage Bunny work our per we've So fees

tipping you're every And so is paying a $X. fee someone time $X, per if single someone transaction tips a

on bundling And a and used has it's transactions credit by be any that under charge card. Bunny transaction the so by to Money, $XX saying onetime

us time companies those do Long The from that like and we we Bunny term, there's to credit gaming to allows too incentivize many users people's aggregate very actually up heard other was do to first and Money thing Bunny spenders, transactions, come churn. the use to to back can transactions cards all on there showing to was way DraftKings have incentivize people much Money that. might other platform a

of think for the to platform. I continue and or creator, just sense will It's let make continue term sense use the the consumer economics the change long economics so us. for it overall. speak The Money don't so for makes for but to And we expand on itself, Bunny data the the

Operator

the the we over to Ben CEO, I'll closing Thank have of you. reached And Kohn question-and-answer for end the the remarks. now session. call back turn

Ben Kohn

and months QX I our for our dialing QX talking full everyone year it, appreciate to appreciate 'XX in on look few I we everyone. results. to forward you results, a and

Operator

disconnect at today's for your this you this time. your may and conference, participation. you concludes And Thank lines

PLBY (PLBY) 27 Mar 242023 Q4 Earnings call transcript