PLBY - Earnings call transcript Q2 2024

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Operator

Good afternoon, everybody, and welcome to PLBY Group's Second Quarter 2024 Earnings Conference Call. Hosting today's this call are Ben Kohn, Chief Executive Officer; and Marc Crossman, Chief Financial Officer and Chief Operating Officer. [Operator Instructions] I would like to hand the call over to Matt Chesler from the Investor Relations team. Please go ahead.

Matt Chesler

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

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

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

session. the that, to with And like Q&A the over to I'd Operator? operator back hand begin the call to

Operator

with is first Genuity. Our Tilchen question Instructions] [Operator Canaccord Jason from

Jason Tilchen

Gap]. release deals you're little if could the out interesting the pipeline seeing. I'm [Audio things about of comments a sponsorship one stood that one First is the for share more in that's press the regarding me how in wondering bit you was of that

we potential be expect the for of that contributor a Sort timeline revenue business? of in a when terms can to what could overall

Ben Kohn

for question. Thanks the Jason. Sure,

today, as evolved around we really membership center also cetera. have a around the that other talked with continuing And creators new model et think lifestyle of digital team creator last are brought about we we events, we've and we call a our on opportunities of the it, lot out. as there's think in announced at and the I build to

driving part is would of as And that has. sales community I or activate sponsorship that say is that what advertising we Playboy

a And robust excited. it's pipeline. very so would I We're say

as to We've September York We'll some fall. closed New media announcing investors as and means. in be investor move forward already deals, at on be through in we'll really dealing moving talking those out participating there what as well our an we conference the that and strategy

So of say, pipeline our September, is I from of advertisers in are and robust in and sharing membership interested more big that sponsorships what there a evolution we'll strategy. that and be would we name creator the really deliver, can very

You can that new website we with launched see ago. that starting to days the come to X life

that nod we questions, creators that is of XX but that, some with state-of-art content, featuring the a website see You'll past to other from creators, featuring our of platforms all those them that with way brands, to on work is differentiates out platform. working a and And also cetera, link a and et a there. that us integrated website to it get something the with promote

Jason Tilchen

Very, helpful. Great. very

behind the of One, this. I'm release, sort from more sort of obviously, small that off questions share about could physical magazine a actual the you press the the bit magazine. stood strategy few just wondering back? a out little bit if little a bringing thing Another return of the

other more of the a awareness to marketing to as investment sort the Or goal be you're drive a more initiatives And more doing tool then side? And sort is of for on more of the is going digital that of what needed? contribution? of is financial of it around level some this

Ben Kohn

Yes, we're excited. very Sure.

its and the other this to do talked the returning think look we we company the about something about how in with tool, I don't say, and do offer past magazine feature creator especially the creators, people at have, platform, that how right? that really the roots we ultimate we've as we is

people the It's us a something that perspective. ask both from user from all creator perspective for a time, and

very that we're And kicking month so off beginning bring Playmate next that going casting of that 'XX. an the the to for marketing. happy to call, back be X-city excited in for with We're

Playmates like But purposes in well, the other see Playboy expect it, promotional how evolves. as celebrity questions, franchises should historical content XX and well is magazine, as in you and we'll should cover. potentially as the magazine Advisor the just mostly that great a you expect, and for But it

And the on what as so tool the we bring a into cohesive to digital that we're think investors move back. something present looks long strategy everything promotional digital we're time fall, doing the been comprehensive and we great else to it's that like. we coming, excited look to It's and for a and

Jason Tilchen

Awesome. seems Very, agreement like very a you one deal. domestic a on more announcement licensing me. of for regarding made e-commerce one the Yesterday, then And helpful. new last side. It

from also a, curious, more evolve? update on recovery trajectory the how about maybe business of the we if partnership? exciting you little share expect that to China Just what And if bit could sort there's about a licensing the was of can then an

Ben Kohn

Yes. Sure.

I back think been So really our focused licensing we've building business. on

that. structured e-commerce only over also with to have guarantees announced way that our on provides deals. it The work the million $X.X We a is robust yesterday But above creators pipeline deal of the plus platform. of we percentage in a life a of revenue not the partner of the

And online out who is. platforms but an sort apparel of shopping, integrated ways strategy, would brand with that we've there, are with at growth true from differentiate what and when Really, Again, look that Douyin. to designers TikTok, the great happening the ourselves working looking China with that integrating what's I creators. there, of you is stay obviously, say of to other cetera, it's et the -- we in at seen

much that, line China, are is up Asia in third far further wanted both quarter, hope as licensing from other some done them launching to and a new hope which will rest making second -- in seeing but our opportunities as of announcements of we developing get and licensing as their great world the the some a we progress perspective be of As partner these to slip And deals to coming about the in in on is opportunities. making quarter, month. in the here product

out has of it that as traditional this sort spent about you brand, a never this in the way and spend. money It's content. through when gone especially always a is brands marketing think brand And that done

in, part of opportunities we the believe to its so team more licensing we also continues that and strategy forward And brought will moving reestablish as voice. the lead the content to brand

Operator

from Sanjiv is Salil question Jefferies. with next Our

Salil Sanjiv

Heaney. come go partners structures Sanjiv these for on first through? over bit previous on James basically and the a partners Salil are just you confidence getting Jefferies picking overall, a how is This of with color partners? the the that with will new those the contract Could on versus deals My follow-up is business. you China Any

Ben Kohn

Sure.

where partners over our basically what through China the then we platforms, there, model legacy refreshing or started bags driven they had we contracts, were the violating found our tags. were what the So what we is It changes first COVID was just sublicensing in do was or the which we a in licensing out post call I audit, by our had COVID. because and we were market think, thing, to licensing selling since of of partially

a driving And e-commerce the who that over percentage did not work with were China big today. the in Douyin, of

tags. And really ended so operator what And out we owners I terminating because was operator was bags versus we selling middle and partners. to what man find would say contract our of or up managers went nonpayment, who a violations old is of

an partner only than -- product They picked not the deals their where have we've studios, main The term to Douyin, they're that influencers our is in what but on cetera. were. sell they et deals design, are own nature The done partner shorter bringing historical we've in physical do operator.

So these away from that partners. lower as be we done market in They there was had MGs beginning to have are our old largely moved because X-year deals. some the cleanup

with a right starting it's our percentage partner, the of new revenue we now And but it a right those way. about worked higher in have us we is deals. business think point the to the so way the And for I would rebuild

opportunity And the goal there'll are would MGs be as those we build. which revisit think that to will, the partners sales to they an continue be if that successful,

those much we The is than in in our thing controls contract we've had that those done greater other contracts previous contracts. within we put

perform they have the date. way partners And till I know say paid best would is us the to

venture on is have enforcing But best contract think they're that any something previously. right not [indiscernible], the with I always we contract subsidiary contracts the we that the our ground, have in through our the did so And to we people right moving know are sure that to in make joint controls way forward, performing. the the

Salil Sanjiv

built that question there. Can that's bit up, color seems I some Honey you're it you A this the a guess Appreciate seems being there weaker. business? last the about of in but Birdette. like seeing momentum follow-up dynamics is bit or of on that a quarter new a It quarter, talk was

Ben Kohn

full because I then and the don't the story. to Yes. tell I'll I'll think over high numbers level the take it Marc turn

the thing we look is first quarter-over-quarter. at think I you if down, were

in take, if So 'XX, Marc you joined give back of or April, 'XX. go to us

last in quarter what heavily second like, quarter. discounted The say, 'XX was would I is the previous

we expansion good XX% on period in QX that. past 'XX. margin 'XX, of versus now is time. during saw we're we news we so if And down that you at The the that were gross sale of look QX number But were days

I'll perspective, a over not Marc? let say -- hires would new U.S. so perspective, I made Marc we're that double same on far And too. the but what sort we're up we're last only some from and on we've from year, on in of e-commerce that QX, seeing store digits seeing, of an retail. comment

Marc Crossman

Yes.

what down And the comp typically, seeing a And for hired in we actually in been stores U.S., the the our In of we're terms head we're stores just up. while. seeing comping of have U.S. in stores a U.S.

are we need that's going dovetailing lot we're things momentum there that the business. online of doing off a our with on So creating the what's of

business online think We're we we because our need social channels. expanding that's brought also in. where in we that area to one participate So

seeing bring that So Honey the that the a and stuff CENTERFOLD in -- Birdette. learnings lot of we're into from

up beefing that we're So team.

Ben Kohn

gives our period a at I significant lenders we reached Honey to lever exclusivity where an we've Birdette Yes, And Birdette. we also. that good think Honey another today us debt with We our think announced discount. feel I with repurchase are with

paying and off us I lenders significant And running leverage again, company, company. perspective, and leverage for the on think more at from operational balance a we our reduces sheet significantly flexibility executing outstanding us, a successful be it in a gives should discount, the the which in

Salil Sanjiv

follow-up Great. at down the Is coming now I about how towards sales? guess, my bit to pay is on how from allocation ability a the the given strategy. going guess, going likely I the And debt final talk asset you of strategy about, thinking further just paying Can a forward a -- down Or or you much discount? are it debt? that capital

Ben Kohn

Sure.

arrows off the to right a the substantial of pay then off, gross is, exclusivity raise And our money discount. We've of with that can have a call million pay where we it, there we lot lenders that reached quiver. debt $XXX now, So to an in outstanding. at

satisfy So we've lenders. a bank in debt, than had new And since actually Honey to the our business. in a rebuild our we've of even existing pursue interest but also facility we've interest investment engaged smaller debt leading our historically a at We've China Asia much that business would amount albeit Birdette. the existing that talked had

see it reduced that But get lot outstanding done so is. have which we're we're in And from different market. senior and on if the options, done a it the I here, gross successful will all in one think the be where first. pursuing And options, of we'll that we significantly gets debt we doing company can

Operator

I With at closing would further like turn to remarks. this back no time, to management conference over questions for the

Ben Kohn

digital appreciate and We dialing move in after our to into QX. the as fall I strategy look our you we guys everyone today. more talking about to then forward sharing

dialing for much very you today. thank in So

Operator

you. This today's conclude Thank will conference.

this may disconnect at time. your lines You

PLBY (PLBY) 8 Aug 242024 Q2 Earnings call transcript