PLBY - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the PLBY Group's First Quarter 2024 Earnings Conference Call. [Operator Instructions] This event is being recorded. I would now like to hand the call over to Matt Chesler from Investor Relations. Please go ahead.

Matt Chesler

Thank you, operator, and good afternoon. I'd like to remind everyone that the information discussed today is qualified in its entirety by the Form 8-K filed today by PLBY Group, which may be accessed on the SEC's website and PLBY Group's website. financial being company's a that in Investor during call, also posted will statements nature is statements this the other statements. to Relations including may call constitute webcast, not replay and be made that forward-looking Today's are or historical projections website. Please note update basis any made and statements. the views time these are PLBY made, and obligation business assumptions Such statements of and at are regarding do performance undertake not we to on the Group's future events they

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

the may principles. measures. this A During accounting to non-GAAP non-GAAP prepared measures reconciliation accepted are the financial non-GAAP of will Such financial the company accordance comparable generally the directly not to the is measures available call, I PLBY in back with most refer release, filed call its Q&A in session. measures Form Operator? today. With the that, earnings operator with over X-K GAAP Group in hand to

Operator

[Operator Instructions] Tilchen And Genuity. the first Canaccord question Jason will come of from

Jason Tilchen

came from any the of release revenue quickly? improvements are on could in and about, that joint you deals expect additional I'm of also sort sort in that curious What additional in share to in excited detail a press licensing for agreements lot some the so And gave these through these timing had of sort deals. when of sort the -- of wondering, thing on about sort these venture. I'm you you're one guess place China? I color of if of how deals recent in flow structure and China announcement new could about the we previous great of you in benefits agreements these just the regarding the sort of

Ben Kohn

we've Thanks, months Jason, deals now, licensing question. previous partners. on for terminated new the in been we China working really Look, our since for

deals In excited robust that we a pipeline like the we and moving to looks by sign, have what addition forward.

in the than are entity in guarantees strategy our back without in There's personal well. The the an when new winning a in different sublicensing to fact, of forward consent. And perspective, these is we quarter already and teeth better XX% what new at you we in the deals that deals. look year. of different moving come In quarter, deals business last the have enforceable prohibition deals then in these starting deals. very The then the moving deals. versus was -- in The actually are those China, accountability this in have brand and over than will from the better deals, forward. start majority old There's much as on express it revenue guarantees the we built to much we've second guarantee China, old personal

Given in increase needed short-term, spend. We China on perspective to wanted with flexibility with we the incentivizes But to MGs macro rebuild invest our the it's business that over what's but partners gives the out to right really the the from a documented deals to and in and partners, business. to us do China time. well consumer economy happened that the there post-COVID, shorter-term in

invest we brand. sure on the overages this both in commented and that make wanted these but do the so in think press I we they release from today, receiving expect but to we've And start partners, to

true operator sold selling our online so our studios, more how are is I it's which historically say what have in things They And operator. versus really a would tags. Duane, middleman are an they of China. largest is partner, a And

protections accountable. plan have so contractual we limitations have, we partners the we forward moving to on in we making addition And or hold sure these that

a that is constantly partner & holding is as have contract Li partners, ground as to we'll a that the Fung We subsidiary, on these and them the JV meeting also be well. with

Jason Tilchen

we costs great the I and year-over-year past really narrowing whole highlighted That's sort been of Great. X by business, quarters, X approach any as breakeven cadence to lot basis? as move the appreciate just sort sort EBITDA color when color and on sort through that. basis quarterly additional then share a the over obviously, on as then and year shut And a business if the of of positive has or a out I'm sort on there. sort year, you be of of both then of you the the loss. this of full significant -- of you've a wondering, could we of transformed as expect

Marc Crossman

we going the revenues what When is cadence at profitability see you're that. into of look licensing look going answer think second I'll like, to back Jason, up. to the the the Marc to start here. I come quarter, It's going

guidance, the I the play the I continue through quarter like it's up to it the half back about probably positive a see perform the be should centerfold playboy.com. to second reduction we're when at somewhere of benefits continue or then not think now the see be at corporate of the we'll to doing numbers. year start like of year And it was. Honey think back ago, to expense that things was is. all XX% of breakeven. And that but we're giving the which looking you'll Licensing traditional least we'll right will what Birdette

Jason Tilchen

Okay. Great.

Operator

of question from Chardan. Pendy Greg next The comes

Gregory Pendy

looked looking, what like? have increases, when on little looks might sense And a I little bit a at of where few those to ticket, what board? was Honey it XX% It I of trying but was above bit place? did a you through Birdette. guess take the versus is get I was a across I'm put that a traffic generally know like Just that price

Marc Crossman

Marc. Greg, No it's problem.

of in quarter. rolling In they've increases, been of be with slowly price the second the majority terms vast the in pretty done them will XX% here

all ticket the size. wasn't it So

saw we it's So traffic growth conversion. of higher of it but ASP, in our driving a lot and a bit just was -- little

Gregory Pendy

very helpful. That's Okay.

Ben Kohn

I the we on also Greg, with think, are business. we commented where

solid that in had that now not that begin we've about last process on And previously a it's the think to X think commented think quarters I right we I us row. said, owner now think I talked business. are that we as knowing long-term, we've we for I time for year,

Gregory Pendy

going in the said closings, And -- might Yes. trend? underperforming get a No. I stores year? happen been just then in were with is you to it's few later You that understand. helpful. fully at that's where the Yes, Australia store

Marc Crossman

Yes.

the one closed have So we -- in closed money. Australia U.S. already. losing We was that one we just in

sitting our it margin not So of was just EBITDA kind own. was there. excess on X-wall on of was XX%. U.S. that And store its we And one off had

just stores are out were. And that a a too So we a putting sense sold, be sister we close Australia, just of are were in few that there the this on of ultimately more cluster at get it made position based store. stores there to rest that few to business where as to look

that's handful, X those. close e-comm. a shift But let's really we'll the too X it, a stores. But stores, call towards to amount the so encouraging that's small of we're of things And one is just seeing that

And money [ more sales opposed e-comm brick-and-mortar coming of so Econ driving -- stores. see we're or to more ] we percentage as quarter, our our every from

Gregory Pendy

Okay. Great. on to just That's And helpful. then moving deal. the licensing

million guarantee a $XX I'm hopefully The new correctly. thinking over about this period. it's X-year deal, that Just a

quarter. a a So $X that would bit that minimum be that little I guess, into, flowing million under Is quarter, next a royalty? roughly on

Marc Crossman

around Yes. is a did on million this On basis a year million way And ago. licensing We at revenue $X.Xmillion, best the the of minimum, we $X.X in be think look think at can a XX% of year. quarter. I go-forward I I it that that $X.X in mean, did -- we somewhere to

terms we Now quarter. in layer in the that's I new baseline we about we're assuming that deals, have say model, things year ago where were that. XX% versus on But in to that better business, of the all grow do to equal, a your able can is of overages than China, being would extent

Gregory Pendy

go position just during this then offense, we on on thinking kind you're going Playboy more and events in any the Okay. notable site. year the to to Club. how there better brand you're build rebranded And can a just moving look that for? That's finally, now of eyeballs just helpful. get to It about this Are very year much awareness like to looks to

Ben Kohn

Sure. question. the Thanks, Greg, for

I previously. we've talked this think about

aqua earnings next to talking forward team, do I'm I that a is thing in and in in lack and team creator was that and things. first on of hire. for team, content brought The side better, look experience the needed announce was time the them this deep to same to pleased on multiple at it we've people of presenting recruited the the But the We and bring we'll that a senior to have call. an

benefits an this is licensing team we That perspective, that it really do, be to content to with Playboy backside the our but only never a on that goal in only effect driving directly an commerce and that from biggest can is and downstream And -- the money the of thing that. traditional will and of this we've the that expert creators. brand so spent And against but -- through there advertising not benefits directly that business, content.

it. or see a content what the on here over from month that start a X so And next you'll lot us has more website to is

et past something start point company, YouTube, you'll its I products. -- hopefully the hero think You'll year, social with it's of nod a coming on strategy TikTok, cetera. a Instagram, at different see to the see to this and And completely some media of you'll one then

reward into this famous without creators with I able us timing being so into of what made than to getting back the that, franchise, through the years, leaning think working what over And the exactly feature Playboy them for better Playmate content. bringing company

Gregory Pendy

Great. that's helpful. No,

Operator

like call session. to to question-and-answer turn Kohn back closing over for the Ben our would any concludes remarks. This I

Ben Kohn

to all earnings the you. QX new I look in dialing with team digital our and forward the team appreciate you you next and on to our for Thank talking media call, call.

Operator

The disconnect. concluded. and now for attending you conference has presentation, may you now today's Thank

PLBY (PLBY) 9 May 242024 Q1 Earnings call transcript