Great print for PLBY. Revenue and EBITDA both ahead of expectations despite the company noting ~$5mm in lost revenue from supply chain constraints and Covid related store closures. DTC revenue (ex Honey Birdette) accelerated to +90% even with the revenue losses (which potentially was another 20 to 30pts of growth). Commentary on October ecommerce sales was very bullish. So business trends are good, the brand continues to build momentum, and new monetization initiatives are in progress. The most important incremental information was likely around CENTERFOLD. The company didn’t get specific on launch timing or who the key launch partners will be, but did say it is “hoping to launch with a group of creators that already generate hundreds of millions of dollars in the creator economy” including some with exclusive partnerships with CENTERFOLD. The content is being signaled to be much more than simply “adult” with a diverse group of creator categories. The potential here is massive, especially when you consider the capabilities PLBY brings to scaling the content monetization beyond the content itself. That means highlighting/selling sexual wellness products, partnering with creators on exclusive lines, and much more. The company discussed the NFT initiative as well as the Rabbitar sales. We covered this in our note prior to the print, but an incremental detail is that the company will report sales net of costs of the launch, so revenue is closer to $8mm at higher margin. With the digital content stealing the show this quarter, we shouldn’t forget the new product lines coming in 2022 both in DTC and licensing like beauty and spirits. The company didn’t revise its long-term revenue guidance which it doubled last quarter. At least it didn’t yet. It knows the new initiatives announced since last Q will drive incremental revenue, but since the initiatives haven’t even launched yet, it’s not providing any specific outlook. Needless to say we see the revenue target for 2025 of $600mm is still far too low. The growth runway for PLBY is massive, and we think this company is headed over $10bn in EV vs the current ~$1.5bn.
For our note prior to earnings PLBY | Thoughts Into The Print -- Best Idea Long CLICK HERE
