<!DOCTYPE html><html lang="en"><head><meta http-equiv="origin-trial" content="A/kargTFyk8MR5ueravczef/wIlTkbVk1qXQesp39nV+xNECPdLBVeYffxrM8TmZT6RArWGQVCJ0LRivD7glcAUAAACQeyJvcmlnaW4iOiJodHRwczovL2dvb2dsZS5jb206NDQzIiwiZmVhdHVyZSI6IkRpc2FibGVUaGlyZFBhcnR5U3RvcmFnZVBhcnRpdGlvbmluZzIiLCJleHBpcnkiOjE3NDIzNDIzOTksImlzU3ViZG9tYWluIjp0cnVlLCJpc1RoaXJkUGFydHkiOnRydWV9">
<script type="text/javascript" async="" src="https://www.google-analytics.com/analytics.js"></script><script type="text/javascript" async="" src="https://www.googletagmanager.com/gtag/js?id=UA-113590965-4&l=dataLayer&cx=c&gtm=45je4b70v895705171za200"></script><script type="text/javascript" async="" charset="utf-8" src="https://www.gstatic.com/recaptcha/releases/-ZG7BC9TxCVEbzIO2m429usb/recaptcha__en.js" crossorigin="anonymous" integrity="sha384-gaZtYaI7oJHEOo1YO6VuoCE4iZ5fMV9mYHP0BHf+r2ttABnpWWCIkgI6ItNW4ZdO"></script><script async="" src="https://www.googletagmanager.com/gtag/js?id=G-REPSH58KSM"></script>
<script async="" src="https://www.googletagmanager.com/gtm.js?id=GTM-5KBPWNG"></script>
<meta charset="utf-8">
<meta http-equiv="content-language" content="en">
<meta name="google" content="notranslate">
<title>PLBY - Earnings call transcript Q3 2024 | PLBY Group, Inc.</title>
<meta property="og:title" content="PLBY - Earnings call transcript Q3 2024">
<meta property="og:description" content="2024 Q3 earnings call transcript for PLBY Group, Inc.">
<meta property="og:image" content="https://files.capedge.com/images/logo/1803914.png">
<meta property="og:url" content="https://capedge.com/transcript/1803914/2024Q3/PLBY">
<meta property="og:type" content="website">
<meta name="twitter:card" content="summary_large_image">
<meta name="viewport" content="width=device-width, initial-scale=1.0, maximum-scale=1.0, user-scalable=no, shrink-to-fit=no">
<link rel="stylesheet" href="/css/style.css?v=20241113T074124">
<link rel="icon" sizes="32x32" type="image/png" href="/img/icon-200.png">
<link rel="apple-touch-icon" sizes="200x200" href="/img/icon-200.png">
<link rel="canonical" href="https://capedge.com/transcript/1803914/2024Q3/PLBY">
</head>
<body class="plan-free no-sidebar-wrap">
<a name="pageTop" id="pageTop"></a>
<div id="alert-container"></div>
<div class="d-lg-none" id="mobile-mode-canary"></div>
<div id="main-container">
<div id="above-footer">
<div class="container">
<div class="row align-items-center py-3 py-lg-2 d-print-none">
<div class="col-4 col-lg-3 order-1 pr-0">
<a href="/user/dashboard" id="logo-container"><img src="/img/capedge-logo-by-finsight.svg?v=20241113T074124" alt="CapEdge" width="174" height="37"></a>
</div>
<div class="col-12 col-lg order-3 order-lg-2 pt-3 pt-lg-0">
<form action="/search" method="get" id="mainSearchForm" spellcheck="false" autocomplete="off" role="search">
<div class="input-group">
<div class="tokenInput tokeninput-container tokeninput-empty flex-grow-1 form-control header-search">
<input id="searchInput" type="search" name="q" placeholder="Search by ticker, company or words in SEC filings" value="" tabindex="1" autocomplete="off" autocorrect="off" autocapitalize="off" style="width: 100%;">
<script class="tokeninput-data" type="application/json">
{
"resultDataProp":"suggestions",
"resultTextProp":"name",
"resultValueProp":"value",
"url":"/search/suggestions?profiles=true&q=$query&ctxType=company&ctxVal=1803914",
"values":[],
"type":"lookup",
"completionGroups" : {
"profiles" : { "heading" : "Filing Profile", "newOption" : false },
"searches" : { "heading" : "Search Across Filings, News and Transcripts", "newOption" : false }
},
"autoSuggestMode":true
}
</script>
</div>
<div id="searchLoading">Loading</div>
<div id="searchAdvanced" class="d-none"><a href="/help/search" tabindex="2">Advanced</a></div>
</div>
</form>
</div>
<div class="col-8 col-lg-3 order-2 order-lg-3">
<div class="d-flex justify-content-end align-items-center user-action-buttons">
<a href="https://help.capedge.com/release-notes/" target="_blank" class="mr-4 text-decoration-none header-help-link"><span class="d-xxl-none"><i class="fe fe-help-circle d-block"></i></span><span class="d-none d-xxl-block"><i class="fe fe-info"></i> What's new?</span></a>
<div class="btn-toolbar align-items-center" role="toolbar" id="favourites-toolbar">
<div class="btn-group" role="group">
<button type="button" id="btn-toggle-favourites" class="btn top-level active" data-toggle="tooltip" data-placement="bottom" title="" data-click-toggle="favourites-col" data-original-title="Toggle favorites"><i class="fe fe-star"></i></button>
<button type="button" id="btn-toggle-alerts" class="btn top-level" data-toggle="tooltip" data-placement="bottom" title="" data-click-toggle="alerts-col" data-original-title="Toggle alert feed"><i class="fe fe-bell"></i></button>
<button type="button" id="btn-toggle-notes" class="btn top-level" data-toggle="tooltip" data-placement="bottom" title="" data-click-toggle="notes-col" data-original-title="Toggle note list"><i class="fe fe-edit"></i></button>
<div class="btn-group" role="group">
<button class="btn top-level dropdown-toggle user-plan-free" type="button" data-toggle="dropdown" aria-haspopup="true" aria-expanded="false">TS</button>
<div class="dropdown-menu dropdown-menu-right">
<a class="dropdown-item" href="/user/edit">
<i class="dropdown-icon fe fe-user"></i>Edit profile
</a>
<a class="dropdown-item" href="/user/changepassword">
<i class="dropdown-icon fe fe-shield"></i>Change password
</a>
<a class="dropdown-item" href="/user/settings">
<i class="dropdown-icon fe fe-sliders"></i>Email settings
</a>
<a class="dropdown-item" href="/user/myaccount">
<i class="dropdown-icon fe fe-info"></i>Manage my account
</a>
<a class="dropdown-item" href="/user/support">
<i class="dropdown-icon fe fe-life-buoy"></i>Support
</a>
<div class="dropdown-divider"></div>
<div class="dropdown-item">
<form action="/user/logout" method="post">
<button type="submit" class="btn btn-sm btn-outline-primary w-100">Logout</button>
</form>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<div class="row d-print-none">
<div class="col">
<ul class="nav nav-tabs align-items-center" id="primary-menu" data-test="menuMain">
<li class="nav-item" data-test="menuMainItem">
<a class="nav-link" href="/">Home</a>
</li>
<li class="nav-item" data-test="menuMainItem">
<a class="nav-link" href="/sector"><span class="d-none d-lg-inline">Sectors & Industries</span><span class="d-lg-none">Sectors</span></a>
</li>
<li class="nav-item separator"></li>
<li class="nav-item" data-test="menuMainItem">
<a class="nav-link" href="/earnings-calendar">Earnings</a>
</li>
<li class="nav-item" data-test="menuMainItem">
<a class="nav-link" href="/ipo-calendar">IPOs</a>
</li>
<li class="nav-item" data-test="menuMainItem">
<a class="nav-link" href="/transcript/by/companyId/all">Transcripts</a>
</li>
<li class="nav-item separator"></li>
<li class="nav-item" data-test="menuMainItem">
<a class="nav-link" href="/insider">Insider</a>
</li>
<li class="nav-item" data-test="menuMainItem">
<a class="nav-link" href="/institutional">Institutional</a>
</li>
<li class="nav-item right" data-test="menuMainItem">
<a class="nav-link" href="/user/dashboard">My Dashboard</a>
</li>
</ul>
</div>
</div>
<div class="row flex-nowrap pb-5" id="columns-row" data-open="1">
<div class="col order-2 sticky-scrolly user-feed-col mobile-toggle-only-one d-print-none " id="favourites-col">
<div class="">
<div class="btn-toolbar align-items-center w-100" role="toolbar" id="favourites-toolbar">
<div class="mr-auto toolbar-title" data-count="0">Favorites</div>
<div class="btn-group" role="group">
<button type="button" class="btn btn-sm" data-toggle="modal" data-target="#modalAddFavourite"><i class="fe fe-plus-circle"></i></button>
<button type="button" class="btn btn-sm d-md-none" data-click-toggle="favourites-col"><i class="fe fe-x"></i></button>
</div>
</div>
</div>
<div class="br">
<ul id="favourites-list" class="list-unstyled mb-0 w-100 empty-placeholder" data-count="0"></ul>
</div>
</div>
<div class="col order-3 sticky-scrolly user-feed-col mobile-toggle-only-one d-print-none collapsed" id="alerts-col">
<div class="">
<div class="btn-toolbar align-items-center w-100" role="toolbar" id="alerts-toolbar">
<div class="mr-auto toolbar-title">Alert feed</div>
<div class="btn-group" role="group">
<button type="button" class="btn btn-sm" data-toggle="modal" data-target="#modalAlertSettings" id="btn-alert-config"><i class="fe fe-settings"></i></button>
<button type="button" class="btn btn-sm d-md-none" data-click-toggle="alerts-col"><i class="fe fe-x"></i></button>
</div>
</div>
</div>
<div class="br">
<ul id="alerts-list" class="list-unstyled mb-0 block-list w-100 empty-placeholder">
</ul>
</div>
</div>
<div class="col order-4 sticky-scrolly user-feed-col mobile-toggle-only-one d-print-none collapsed" id="notes-col">
<div>
<div class="btn-toolbar align-items-center w-100" role="toolbar" id="notes-toolbar">
<div class="mr-auto toolbar-title" data-count="0">Notes</div>
<div class="btn-group" role="group">
<div>
<div id="add-note-recaptcha" class="g-recaptcha" data-sitekey="6Le1YlooAAAAAIpAmJQ9Vu8FsSGGsncij4tpVSol" data-callback="recaptchaAddNote" data-size="invisible"><div class="grecaptcha-badge" data-style="bottomright" style="width: 256px; height: 60px; display: block; transition: right 0.3s; position: fixed; bottom: 14px; right: -186px; box-shadow: gray 0px 0px 5px; border-radius: 2px; overflow: hidden;"><div class="grecaptcha-logo"><iframe title="reCAPTCHA" width="256" height="60" role="presentation" name="a-bmk21734pozv" frameborder="0" scrolling="no" sandbox="allow-forms allow-popups allow-same-origin allow-scripts allow-top-navigation allow-modals allow-popups-to-escape-sandbox allow-storage-access-by-user-activation" src="https://www.google.com/recaptcha/api2/anchor?ar=1&k=6Le1YlooAAAAAIpAmJQ9Vu8FsSGGsncij4tpVSol&co=aHR0cHM6Ly9jYXBlZGdlLmNvbTo0NDM.&hl=en&v=-ZG7BC9TxCVEbzIO2m429usb&size=invisible&cb=p0whj3vfkuln"></iframe></div><div class="grecaptcha-error"></div><textarea id="g-recaptcha-response" name="g-recaptcha-response" class="g-recaptcha-response" style="width: 250px; height: 40px; border: 1px solid rgb(193, 193, 193); margin: 10px 25px; padding: 0px; resize: none; display: none;"></textarea></div><iframe style="display: none;"></iframe></div>
<button type="button" class="btn btn-sm prevent-double-click" id="add-note-button"><i class="fe fe-plus-circle"></i></button>
</div>
<div class="dropdown" id="note-sort">
<button class="btn btn-sm" type="button" id="dropdownMenuButton" data-toggle="dropdown">
<i class="fe fe-settings"></i>
</button>
<div class="dropdown-menu dropdown-menu-right">
<h6 class="dropdown-header">Sort notes by</h6>
<button class="dropdown-item active" data-sort="created">Created</button>
<button class="dropdown-item" data-sort="updated">Updated</button>
<button class="dropdown-item" data-sort="title">Alphabetical</button>
</div>
</div>
<button type="button" class="btn btn-sm d-md-none" data-click-toggle="notes-col"><i class="fe fe-x"></i></button>
</div>
</div>
</div>
<div class="br">
<ul id="notes-list" class="list-unstyled mb-0 block-list w-100 empty-placeholder" data-limit="" data-count="0" data-num-displayed="" data-per-page="20"></ul>
<div id="note-list-end"></div>
</div>
</div>
<div class="col order-1 resp-container resp-sm resp-md" id="main-col" data-observe-resizes="true">
<div class="d-flex flex-column">
<div class="row mb-3 d-print-none secondary-menu-row order-2">
<div class="col">
<ul class="nav nav-tabs align-items-center px-4" id="secondary-menu" data-test="secondaryMenu">
<li class="nav-item " data-test="secondaryMenuItem">
<a class="nav-link" href="/company/1803914/PLBY">
<span class="tab-ticker">PLBY</span> Dashboard
</a>
</li>
<li class="nav-item " data-test="secondaryMenuItem">
<a class="nav-link" href="/company/1803914/PLBY/financials">
Financials
</a>
</li>
<li class="nav-item " data-test="secondaryMenuItem">
<a class="nav-link" href="/company/1803914/PLBY/filings">
Filings
</a>
</li>
<li class="nav-item disabled" data-test="secondaryMenuItem">
<div class="nav-link" href="/company/1803914/PLBY/holdings-history">
Holdings
</div>
</li>
<li class="nav-item " data-test="secondaryMenuItem">
<a class="nav-link" href="/transcript/by/companyId/1803914">
Transcripts
</a>
</li>
<li class="nav-item separator"></li>
<li class="nav-item " data-test="secondaryMenuItem">
<a class="nav-link" href="/company/1803914/PLBY/etfs">
ETFs
</a>
</li>
<li class="nav-item " data-test="secondaryMenuItem">
<a class="nav-link" href="/company/1803914/PLBY/insider-ownership-history">
Insider
</a>
</li>
<li class="nav-item " data-test="secondaryMenuItem">
<a class="nav-link" href="/company/1803914/PLBY/institutional-ownership-history">
Institutional
</a>
</li>
<li class="nav-item " data-test="secondaryMenuItem">
<a class="nav-link" href="/company/1803914/PLBY/short-interest">
Shorts
</a>
</li>
<li class="nav-item active " data-test="secondaryMenuItem">
<div class="nav-link" href="https://capedge.com/transcript/1803914/2024Q3/PLBY">
2024 Q3 Transcript
</div>
</li>
</ul>
</div>
</div>
<div class="row align-items-center py-6">
<div class="col">
<h1 class="page-title" data-test="pageTitle">
<span class="company-name">
PLBY
(PLBY)
</span>
<span class="banner-crumb">12 Nov 24</span><span class="banner-crumb">2024 Q3 Earnings call transcript</span>
</h1>
<div class="my-1 text-muted-dark">
Company Profile
</div>
</div>
</div>
</div>
<div class="row" id="main-content-cols">
<div class="col order-1 sticky-scrolly mobile-toggle-only-one d-print-none default-sidebar-column" id="sidebar-col">
<div class="text-center mb-5 mobile-toggle-button-cont"><button type="button" class="btn btn-sm btn-outline-primary ml-auto" data-click-toggle="sidebar-col">< Back</button></div>
<div class="transcript-sidebar">
<div class="sidebar-annotations-container"><div class="annotator-editor card" style="display: none;">
<form>
<div class="card-header"><div class="card-title not-in-menu"><div class="d-block">Add <span class="annotation-type"></span></div></div></div>
<div class="card-body">
<ul class="annotator-listing"><li class="annotator-field form-group"><div class="quote" id="annotator-field-0" placeholder="Quote"></div></li><li class="annotator-field form-group"><textarea rows="3" class="form-control" id="annotator-field-1" placeholder="Comments…"></textarea></li><li class="annotator-field form-group"><label class="custom-switch pl-0"><input type="checkbox" class="custom-switch-input" id="annotator-field-2" placeholder="Visible to public"><span class="custom-switch-indicator"></span><span class="custom-switch-description">Visible to public</span></label></li><li class="annotator-field form-group"><input type="hidden" class="form-control" id="annotator-field-3" placeholder="In Reply To"></li></ul>
<div class="annotator-controls d-flex justify-content-between">
<button class="btn btn-primary annotator-save annotator-focus">Save <span class="annotation-type"></span></button>
<button class="btn btn-link annotator-cancel">Cancel</button>
</div>
</div>
</form>
</div><div class="annotator-viewer card" style="display: none;">
<div class="card-header">
<div class="card-title">Annotations</div>
<button type="button" class="btn btn-light ml-auto mobile-toggle-button-cont" id="close-mobile-annotations"><i class="fe fe-x"></i></button>
</div>
<ul class="card-body annotator-listing"></ul>
</div></div>
<div class="card">
<div class="card-header">
<div class="card-title">Share this transcript</div>
</div>
<div class="card-body">
<ul class="social-links list-inline mb-0">
<li class="list-inline-item m-0">
<a href="https://twitter.com/share?url=https%3A%2F%2Fcapedge.com%2Ftranscript%2F1803914%2F2024Q3%2FPLBY" target="_blank" rel="noreferrer noopener" data-toggle="tooltip" data-placement="top" title="" data-original-title="Share via Twitter"><i class="fe fe-twitter"></i></a>
</li>
<li class="list-inline-item m-0">
<a href="https://www.linkedin.com/shareArticle?url=https%3A%2F%2Fcapedge.com%2Ftranscript%2F1803914%2F2024Q3%2FPLBY&title=PLBY%20-%20Earnings%20call%20transcript%20Q3%202024%20%7C%20PLBY%20Group%2C%20Inc." target="_blank" rel="noreferrer noopener" data-toggle="tooltip" data-placement="top" title="" data-original-title="Share via LinkedIn"><i class="fe fe-linkedin"></i></a>
</li>
<li class="list-inline-item m-0">
<a href="mailto:?subject=PLBY%20-%20Earnings%20call%20transcript%20Q3%202024%20%7C%20PLBY%20Group%2C%20Inc.&body=https%3A%2F%2Fcapedge.com%2Ftranscript%2F1803914%2F2024Q3%2FPLBY" data-toggle="tooltip" data-placement="top" title="" data-original-title="Share via Email"><i class="fe fe-mail"></i></a>
</li>
<li class="list-inline-item m-0">
<a href="#" id="print-button" data-toggle="tooltip" data-placement="top" title="" data-original-title="Print"><i class="fe fe-printer"></i></a>
</li>
<li class="list-inline-item mr-0">
<a href="#" id="copy-link-button" data-toggle="tooltip" data-placement="top" title="" data-original-title="Copy URL to clipboard"><i class="fe fe-link"></i></a>
</li>
</ul>
</div>
</div>
<div class="card">
<div class="card-header">
<div class="card-title">Recent PLBY transcripts</div>
</div>
<ul class="container transcript-sidebar-list list-unstyled">
<li>
<a class="row item-row d-block transcript active" href="/transcript/1803914/2024Q3/PLBY">
<div class="d-flex">
<div class="title label-col">Earnings call transcript</div>
<div class="filing-type-col">
<div class="filing-period">2024 Q3</div>
</div>
<div class="date">12 Nov 24</div>
</div>
</a>
</li>
<li>
<a class="row item-row d-block transcript" href="/transcript/1803914/2024Q2/PLBY">
<div class="d-flex">
<div class="title label-col">Earnings call transcript</div>
<div class="filing-type-col">
<div class="filing-period">2024 Q2</div>
</div>
<div class="date">8 Aug 24</div>
</div>
</a>
</li>
<li>
<a class="row item-row d-block transcript" href="/transcript/1803914/2024Q1/PLBY">
<div class="d-flex">
<div class="title label-col">Earnings call transcript</div>
<div class="filing-type-col">
<div class="filing-period">2024 Q1</div>
</div>
<div class="date">9 May 24</div>
</div>
</a>
</li>
<li>
<a class="row item-row d-block transcript" href="/transcript/1803914/2023Q4/PLBY">
<div class="d-flex">
<div class="title label-col">Earnings call transcript</div>
<div class="filing-type-col">
<div class="filing-period">2023 Q4</div>
</div>
<div class="date">27 Mar 24</div>
</div>
</a>
</li>
<li>
<a class="row item-row d-block transcript" href="/transcript/1803914/2023Q3/PLBY">
<div class="d-flex">
<div class="title label-col">Earnings call transcript</div>
<div class="filing-type-col">
<div class="filing-period">2023 Q3</div>
</div>
<div class="date">9 Nov 23</div>
</div>
</a>
</li>
</ul>
</div>
<div class="card">
<div class="card-header">
<div class="card-title">Associated PLBY filings</div>
</div>
<ul class="card-body filing-sidebar-list list-unstyled mb-0">
<li class="clearfix ">
<a href="/filing/1803914/0001803914-24-000103/10Q-2024Q3" class="text-truncate filing-link">
<span class="filing-date">2024 Q3</span>
<span class="text-nowrap filing-type type-10Q type-financial">10-Q</span>
<span class="filing-description ">Quarterly report</span>
</a>
</li>
</ul>
</div>
</div>
</div>
<div class="col order-2">
<div id="toast-container"></div>
<button type="button" class="btn btn-sm btn-outline-primary mb-5 mx-auto d-block mobile-toggle-button-cont" data-click-toggle="sidebar-col"><i class="fe fe-more-vertical"></i> Transcript menu</button>
<div class="card transcript">
<div class="card-header">
<div class="card-title">Participants</div>
</div>
<div class="card-body">
<table class="participant-list">
<tbody><tr class="participant">
<td class="name">Matt Chesler</td>
<td class="role">executive</td>
</tr>
<tr class="participant">
<td class="name">Ben Kohn</td>
<td class="role">executive</td>
</tr>
</tbody></table>
</div>
</div>
<div class="card transcript">
<div class="card-header">
<div class="card-title">Call transcript</div>
</div>
<div class="card-body transcript-container">
<div class="speech">
<div class="participant-name">Operator</div>
<div class="content">
<p>Greetings, and welcome to the Playboy Group's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Matt Chesler, Investor Relations. Matt, you may go ahead.</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Matt Chesler</div>
<div class="content">
<p>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.
Today's call is also being webcast, and a replay will be posted to the company's Investor Relations website.
Please note that statements made during this call, including financial projections or other statements that are not historical in nature, may constitute forward-looking statements. Such statements are made on the basis of PLBY Group's views and assumptions regarding future events and business performance at the time they are made, and we do not undertake any obligation to update these statements.</p>
<p>Forward-looking statements are subject to risks, which could cause the company's actual results to differ from its historical results and forecasts, including those risks set forth in the company's filings with the SEC, and you should refer to and carefully consider those for more information. This cautionary statement applies to all forward-looking statements made during this call.</p>
<p>You should place undue reliance on any forward-looking statements.</p>
<p>During this call, the company may refer to non-GAAP financial measures. Such non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is available in the earnings release, PLBY Group filed with its Form 8-K today.
I'd now like to turn the call over to Ben before we begin the Q&A session. Ben?</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Ben Kohn</div>
<div class="content">
<p>Thanks, Matt, and thanks, everyone, for joining us today.</p>
<p>Before we get into Q&A, I'd like to quickly review a few of the key developments that we have achieved during the third quarter and in the last couple of weeks, most specifically related to our balance sheet and our liquidity.
About a week ago, we closed a strategic investment from Byborg for over $22 million. Today, we have approximately $30 million of cash on the balance sheet. And just this week, we have restructured our debt, something that we have talked about previously through an exclusivity period with our lenders, where we have realized on a senior debt basis, a $66 million discount on the senior debt. With that, we have issued a new $28 million convertible preferred to our lenders.</p>
<p>So the net reduction is $38 million in leverage.
The convert is convertible at our option at any time in cash or in stock at the 5-Day VWAP, subject to a floor of $1.50 and a cap of $4.50.</p>
<p>So should the stock be anywhere within that range, it is our option to convert it. If the stock were over $4.50, we would always have the option to pay in cash or redeem in stock. And we think the combination of the cash on our balance sheet and the significant reduction in debt that we have achieved puts us on a much more stable financial footing moving forward.
We're excited and continuing to work on the strategic deal, we talked about the non-binding LOI we have signed with Byborg, and we expect to close that before year-end.
And with that, Matt, I will open it up to questions.</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Operator</div>
<div class="content">
<p>[Operator Instructions]</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Matt Chesler</div>
<div class="content">
<p>Operator, we do have questions that are submitted via e-mail in advance, and I'd like to go ahead and read those now.</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Operator</div>
<div class="content">
<p>Yes, absolutely.</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Matt Chesler</div>
<div class="content">
<p>So we have questions from James Heaney, from the research team at Jefferies.
Ben, James asked, as we look to 2025, what kind of driver should we expect the Playboy magazine to be? What are the key reasons you've decided to relaunch the magazine?</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Ben Kohn</div>
<div class="content">
<p>Sure.</p>
<p>So we're not looking at the magazine as a key revenue driver moving forward. This is a promotional tool for the creators and the models that we work with. And also, unlike other global brands, we are not a brand that spends millions of dollars in marketing.</p>
<p>We have historically done that through content.</p>
<p>And so by bringing back the magazine, it serves us two purposes.</p>
<p>The first is a promotional vehicle for the creators and models we work with.</p>
<p>The second is as a brand marketing vehicle to allow us to bring back some of the iconic franchises like the Playboy Interview, like The Cover, like 20 Questions, things that used to be in the Playboy magazine as a way for continuing to build the brand on a global basis.</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Matt Chesler</div>
<div class="content">
<p>Okay. Thanks, Ben. The next question is related to the Byborg relationship.
Can you discuss your partnership with Byborg and the performance requirements, if any, for you to successfully receive the $20 million in annual payments?</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Ben Kohn</div>
<div class="content">
<p>Sure.</p>
<p>So as we publicly announced, we have signed a non-binding LOI for a $300 million total MG over the initial term, so minimum guarantee over the initial term of the deal, which is 15 years. That would be paid in $20 million annual payments to us. That includes them operating in-licensing our -- certain of our digital properties as well as developing new business lines for areas that they either operate in today or might decide to operate in, in the digital side moving forward.
Should that deal conclude, those $20 million are minimum guarantees, against a percentage of the profits of those business lines.</p>
<p>And so technically, outside of letting them operate our businesses on the digital side, there aren't other -- today, there are not other requirements for those $20 million. That is in advance or a minimum guarantee against the percentage of the profits.
The simplest way to think about it would be if you look at our digital segment today, right now, we generate about $5.5 million, $5.4 million on a quarterly basis in our Digital Subscription segment. In this past quarter, it lost about $2 million.</p>
<p>Moving forward, you would basically be replacing on a minimum guarantee basis that revenue with approximately $5 million a quarter, and you would have very little cost, if any, cost against that. And there might be further opportunities to reduce corporate overhead for unallocated services that support those businesses today.</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Matt Chesler</div>
<div class="content">
<p>The next question would be related to the unsolicited bid that was received recently from Cooper Hefner. Are there any thoughts you're able to share with regards to that beyond what was said publicly? And in what areas of the business do you believe that you can lean into creating stronger returns in the absence...</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Ben Kohn</div>
<div class="content">
<p>All I can point you to is the press release we put out, the Board exercising its fiduciary duty and unanimously rejected the Cooper Hefner offer.</p>
<p>I think we're on the right track.</p>
<p>As we said, we are moving to an asset-light model.</p>
<p>You will notice in the quarter that Honey Birdette has been moved to discontinued ops.</p>
<p>As we previously stated, we are in process of looking for partners for that business.
The Byborg deal and the other licensing deals that we continue to sign, including the rebuilding of our China business, is the right path for the company moving forward. And should the Byborg deal close, coupled with the others, we would expect that our goal of getting to meaningful profitability, we're well underway.
And that, coupled with a restructured balance sheet, we got a lot of cash, about $30 million of cash today. We've reduced our senior debt by $66 million or interest-bearing debt by $66 million.</p>
<p>So we've reduced our cash interest expense moving forward, our cash burn from non-operating and financing segments. I feel like we are moving well on our way to where we need to be as a sustainable business moving forward.
And then through the Byborg participation, other licensing deals that we have restructured where we have upside, I think that is the right path for us to get to this asset-light model.</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Matt Chesler</div>
<div class="content">
<p>There were additional questions, but I think you did cover off on them, particularly related to the Honey Birdette change.</p>
<p>And so with that, there are no additional questions that have come in over e-mail.</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Ben Kohn</div>
<div class="content">
<p>Appreciate everyone dialing in, and we look forward to talking to you in March or about March on the year-end results.</p>
<p>So thank you.</p>
</div>
</div>
<div class="speech">
<div class="participant-name">Operator</div>
<div class="content">
<p>Thank you. This does conclude today's teleconference. We thank you for your participation.</p>
<p>You may disconnect your lines at this time.</p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<footer class="footer">
<div class="container">
<div class="row py-5">
<div class="col-12 col-lg-auto">
<a href="https://finsight.com" target="_blank" rel="noopener" class="no-icon mb-5 mb-lg-0">
<img src="/img/finsight.svg" alt="Finsight">
</a>
</div>
<div class="col-12 col-lg-auto ml-lg-auto">
<div class="row">
<div class="col">
<div class="link-title">Resources</div>
<ul class="list-unstyled">
<li><a href="https://help.capedge.com/" target="_blank">Knowledgebase</a></li>
<li>
<form action="/user/logout" method="post">
<button type="submit" class="btn btn-link">Logout</button>
</form>
</li>
</ul>
</div>
<div class="col">
<div class="link-title">Company</div>
<ul class="list-unstyled">
<li><a href="https://finsight.com/about" target="_blank" rel="noopener">About</a></li>
<li><a href="https://finsight.com/contact-us" target="_blank" rel="noopener">Contact</a></li>
<li><a href="https://finsight.com/our-solutions" target="_blank" rel="noopener">Solutions</a></li>
</ul>
</div>
<div class="col">
<div class="link-title">Products</div>
<ul class="list-unstyled">
<li><a href="https://dealroadshow.finsight.com/" target="_blank" rel="noopener">Deal Roadshow</a></li>
<li><a href="https://dealvdr.com/" target="_blank" rel="noopener">DealVDR</a></li>
<li><a href="https://evercall.co/" target="_blank" rel="noopener">Evercall</a></li>
<li><a href="https://finsight.com/" target="_blank" rel="noopener">Finsight.com</a></li>
</ul>
</div>
<div class="col">
<div class="link-title">CapEdge</div>
<ul class="list-unstyled">
<li><a href="/earnings-calendar">Earnings Calendar</a></li>
<li><a href="/transcript/by/companyId/all">Earnings Transcripts</a></li>
<li><a href="/search?q=">EDGAR Filing Screener</a></li>
<li><a href="/ipo-calendar">IPO Calendar</a></li>
</ul>
</div>
</div>
</div>
</div>
</div>
<div class="footer-bottom">
<div class="container">
<div class="row align-items-center">
<div class="col-12 col-lg-auto">
<ul class="list-inline mb-0">
<li class="list-inline-item"><a href="https://finsight.com/compliance" target="_blank" rel="noopener">Compliance</a></li>
<li class="list-inline-item"><a href="https://finsight.com/privacy-policy" target="_blank" rel="noopener">Privacy</a></li>
<li class="list-inline-item"><a href="https://finsight.com/security-policy" target="_blank" rel="noopener">Security</a></li>
<li class="list-inline-item"><a href="https://finsight.com/terms-of-use" target="_blank" rel="noopener">Terms</a></li>
</ul>
</div>
<div class="col footer-icons text-lg-right">
<a href="https://angel.co/company/finsight-group" target="_blank" rel="noopener" class="no-icon">
<img src="/img/angel.svg" alt="AngelList">
</a>
<a href="https://www.linkedin.com/company/finsight/" target="_blank" rel="noopener" class="no-icon">
<img src="/img/linkedin.svg" alt="LinkedIn">
</a>
</div>
</div>
</div>
</div>
</footer>
</div>
<div class="cookiesBanner_container cookiesBanner_container__visible">
<i class="cookiesBanner_close">
<svg width="16" height="16" viewBox="0 0 16 16" xmlns="http://www.w3.org/2000/svg">
<path d="M8.58719 7.3231C8.93627 7.67218 8.93627 8.23816 8.58719 8.58724C8.2381 8.93633 7.67213 8.93633 7.32304 8.58724L0.261813 1.52597C-0.0872709 1.17689 -0.0872709 0.61091 0.261813 0.261825C0.610896 -0.0872605 1.17687 -0.0872605 1.52596 0.261825L8.58719 7.3231Z"></path><path d="M1.52595 15.7382C1.17687 16.0873 0.610892 16.0873 0.261808 15.7382C-0.087275 15.3891 -0.0872754 14.8231 0.261808 14.474L7.32304 7.41277C7.67212 7.06368 8.2381 7.06368 8.58718 7.41276C8.93626 7.76185 8.93626 8.32783 8.58718 8.67691L1.52595 15.7382Z"></path><path d="M7.4128 8.6769C7.06372 8.32782 7.06372 7.76184 7.4128 7.41275C7.76189 7.06367 8.32786 7.06367 8.67695 7.41275L15.7382 14.474C16.0873 14.8231 16.0873 15.3891 15.7382 15.7382C15.3891 16.0873 14.8231 16.0873 14.474 15.7382L7.4128 8.6769Z"></path><path d="M14.474 0.261814C14.8231 -0.0872713 15.3891 -0.0872713 15.7382 0.261814C16.0873 0.610899 16.0873 1.17688 15.7382 1.52596L8.67695 8.58723C8.32787 8.93632 7.76189 8.93632 7.41281 8.58723C7.06373 8.23815 7.06373 7.67217 7.41281 7.32309L14.474 0.261814Z"></path>
</svg>
</i>
<div class="cookiesBanner_content">
<p class="cookiesBanner_text">
We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our <a class="cookiesBanner_cookiesBannerLink__dvqOM" href="https://finsight.com/privacy-policy#cookiesPolicy" target="_blank">Cookie Policy</a> for more information.
</p>
<button type="button" class="cookiesBanner_btn btn btn-primary">I Agree</button>
</div>
</div>
<div class="modal fade" id="modalAddFavourite" tabindex="-1" role="dialog" aria-hidden="true">
<div class="modal-dialog" role="document">
<div class="modal-content">
<div class="modal-header">
<h3 class="modal-title">Add favorites</h3>
<button type="button" class="close" data-dismiss="modal" aria-label="Close"></button>
</div>
<div class="modal-body">
<ul class="nav nav-tabs" id="faveTabs" role="tablist">
<li class="nav-item">
<a class="nav-link active" id="manual-tab" data-toggle="tab" href="#manual" role="tab" aria-controls="manual" aria-selected="true">Choose</a>
</li>
<li class="nav-item">
<a class="nav-link" id="upload-tab" data-toggle="tab" href="#upload" role="tab" aria-controls="upload" aria-selected="false">Upload list</a>
</li>
</ul>
<div class="tab-content mt-3 pt-2" id="faveTabContent">
<div class="tab-pane fade show active" id="manual" role="tabpanel" aria-labelledby="manual-tab">
<form method="post" action="/user/batch-fave" spellcheck="false" autocomplete="off" id="batch-favorite-form">
<input type="hidden" name="referrer" value="">
<p>Type tickers, company names, or new folder names to organize your favorites.</p>
<div class="tokenInput tokeninput-container fake-input fake-input-lg">
<input type="text" placeholder="Ticker, company name, or new folder name…" name="favourites" autocomplete="off" autocorrect="off" autocapitalize="off" autofocus="on" size="42">
<script class="tokeninput-data" type="application/json">
{
"resultDataProp":"companies",
"resultTextProp":"name",
"resultValueProp":"companyId",
"url":"/search/company?needsXbrl=false&active=true&num=5&allowMultiple=true&q=$query",
"values":[],
"type":"lookup",
"completionGroups" : {
"companies" : { "heading" : "Companies", "newOption" : false, "singular" : "company" },
"folders" : { "heading" : "Folder", "newOption" : true, "singular" : "folder" }
}
}
</script>
</div>
<div class="d-flex mt-6 justify-content-between">
<button type="submit" class="btn btn-primary">Add favorites</button>
<button type="button" class="btn btn-link d-none d-md-inline-block" data-dismiss="modal">Cancel</button>
</div>
</form>
</div>
<div class="tab-pane fade" id="upload" role="tabpanel" aria-labelledby="upload-tab">
<div id="fave-upload-container">
<form method="post" action="/user/add-from-favorite-file">
<div class="not-uploaded">
<p>
Upload a CSV, TSV or Excel file of favorites to add (max 5 MB). We'll try to detect columns of tickers, company names, CIKs or CUSIPs. It doesn't
matter if the file has a header row or not, what order the columns are in, or if you include additional columns that are exported from another system.
</p>
<p>
If you want to organize your favorites into folders, then include a header row, with a column named <strong>Folder</strong> to
specify a folder for each favorite, e.g. (in this example, the name column is optional):
</p><pre> Name,Ticker,Folder
Apple Inc,AAPL,Watchlist
Tesla Inc,TSLA,Watchlist
Microsoft Inc,MSFT,Portfolio</pre>
<p></p>
<p>
If you want to upload a list of favorite searches, then include a header row, with a <strong>Name</strong> column for the search
terms, and a <strong>Type</strong> column with the value <em>search</em>, along with an optional <strong>Folder</strong> column e.g.
</p><pre> Type,Folder,Name
search,Future Tech,bitcoin OR cryptocurrency
search,Future Tech,S-1 drones
search,Green Energy,TSLA "renewable energy"</pre>
<p></p>
</div>
<div class="uploaded-only">
<table id="matched-upload-table" class="table table-sm">
<thead>
<tr>
<th></th>
<th colspan="2" class="uploaded-count">Uploaded</th>
<th colspan="2" class="matched-count">Matched</th>
<th class="folder-only">Folder</th>
</tr>
</thead>
<tbody></tbody>
</table>
<input type="hidden" name="uploadData" id="upload-data" value="">
<div class="mt-5 p-3 bg-blue-lightest">
<h6>Important:</h6>
<div class="form-check">
<input class="form-check-input" type="radio" name="actionExisting" id="actionExistingAdd" value="add" checked="">
<label class="form-check-label" for="actionExistingAdd">Add to existing favorites</label>
</div>
<div class="form-check">
<input class="form-check-input" type="radio" name="actionExisting" id="actionExistingReplace" value="replace">
<label class="form-check-label" for="actionExistingReplace">Remove existing favorites that are not in this list</label>
</div>
</div>
</div>
<div class="d-flex mt-6 justify-content-between">
<label class="btn btn-primary not-uploaded" for="upload-faves" id="upload-fave-button">
Upload favorites list…
<input type="file" id="upload-faves" class="d-none" name="files">
</label>
<button type="submit" class="btn btn-primary uploaded-only">Add selected favorites</button>
<button type="button" class="btn btn-link d-none d-md-inline-block" data-dismiss="modal">Cancel</button>
</div>
</form>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<div class="modal fade" id="modalRenameFolder" tabindex="-1" role="dialog" aria-hidden="true">
<div class="modal-dialog" role="document">
<div class="modal-content">
<div class="modal-header">
<h3 class="modal-title">Rename folder</h3>
<button type="button" class="close" data-dismiss="modal" aria-label="Close"></button>
</div>
<form method="post" action="/user/rename-fave" spellcheck="false" autocomplete="off">
<div class="modal-body">
<input type="text" class="form-control" placeholder="Type new folder name…" name="documentSpecifier" autocomplete="off" autocorrect="off" autocapitalize="off" autofocus="on" pattern="[^<>]+">
<input type="hidden" name="documentId" value="">
</div>
<div class="modal-footer">
<button type="button" class="btn btn-link" data-dismiss="modal">Cancel</button>
<button type="submit" class="btn btn-primary">Rename</button>
</div>
</form>
</div>
</div>
</div>
<div class="modal fade" id="modalAlertSettings" tabindex="-1" role="dialog" aria-hidden="true">
<div class="modal-dialog" role="document">
<div class="modal-content">
<div class="modal-header">
<h3 class="modal-title">Alert feed settings</h3>
<button type="button" class="close" data-dismiss="modal" aria-label="Close"></button>
</div>
<form method="post" action="/user/settings" autocomplete="off" id="alert-settings-form" class="no-reset-on-close">
<div class="modal-body">
<p>Choose the information that appears in your CapEdge alert feed. You'll see alerts for information that matches your favorite companies.</p>
<div class="custom-controls-stacked mt-3">
<div class="form-group">
<label class="custom-switch pl-0">
<input type="checkbox" name="settings[alertTypes][]" value="ldb" class="custom-switch-input" checked="checked">
<span class="custom-switch-indicator"></span>
<span class="custom-switch-description">Filings</span>
</label>
<div class="pl-7 text-muted">New filings from SEC.</div>
</div>
<div class="form-group">
<label class="custom-switch pl-0">
<input type="checkbox" name="settings[alertTypes][]" value="news" class="custom-switch-input" checked="checked">
<span class="custom-switch-indicator"></span>
<span class="custom-switch-description">News</span>
</label>
<div class="pl-7 text-muted">Full news stories, breaking headlines, and press releases.</div>
</div>
<div class="form-group">
<label class="custom-switch pl-0">
<input type="checkbox" name="settings[alertTypes][]" value="social" class="custom-switch-input" checked="checked">
<span class="custom-switch-indicator"></span>
<span class="custom-switch-description">Social</span>
</label>
<div class="pl-7 text-muted">Message threads from Reddit.</div>
</div>
<div class="form-group">
<label class="custom-switch pl-0">
<input type="checkbox" name="settings[alertTypes][]" value="user" class="custom-switch-input" checked="checked">
<span class="custom-switch-indicator"></span>
<span class="custom-switch-description">Community content</span>
</label>
<div class="pl-7 text-muted">New community notes and annotations.</div>
</div>
</div>
</div>
<div class="modal-footer">
<button type="button" class="btn btn-link" data-dismiss="modal">Cancel</button>
<button type="submit" class="btn btn-primary">Update alerts feed settings</button>
</div>
</form>
</div>
</div>
</div>
<div class="modal fade" id="modalSendToNote" tabindex="-1" role="dialog" aria-hidden="true">
<div class="modal-dialog" role="document">
<div class="modal-content">
<div class="modal-header">
<h3 class="modal-title">Add to note</h3>
<button type="button" class="close" data-dismiss="modal" aria-label="Close"></button>
</div>
<form method="post" action="#" class="no-disable" spellcheck="false" autocomplete="off">
<div class="modal-body">
<p>The following content will be added to your chosen note:</p>
<div id="fragment-preview" class="my-3 text-muted"></div>
<p>Search or choose a recent note below:</p>
<div class="tokenInput tokeninput-container fake-input fake-input-lg">
<input type="text" placeholder="Search your note titles…" name="noteSearch" autocomplete="off" autocorrect="off" autocapitalize="off" tabindex="1" autofocus="on" size="25">
<script class="tokeninput-data" type="application/json">
{
"resultDataProp":"results",
"resultTextProp":"title",
"resultValueProp":"id",
"url":"/note/notesearch?limit=3&query=$query",
"type":"lookup",
"completionGroups" : {
"bestmatch" : { "heading" : "Best Match" },
"notes" : { "heading" : "Notes", "newOption" : true, "singular" : "note" }
}
}
</script>
</div>
<div id="send-recent-list"></div>
</div>
<div class="modal-footer">
<button type="button" class="btn btn-link" data-dismiss="modal" tabindex="2">Cancel</button>
</div>
</form>
</div>
</div>
</div>
<div class="dropdown-menu dropdown-menu-sm" id="user-feed-context-menu">
<a class="dropdown-item context-open" href="#">Open</a>
<a class="dropdown-item context-open" href="#" target="_blank">Open in new tab</a>
<div class="dropdown-divider"></div>
<a class="dropdown-item context-delete" href="#">Delete</a>
</div>
<div style="display:none" id="google-id" data-id="G-REPSH58KSM,UA-113590965-4"></div>
<div style="display:none" id="google-tag-id" data-id="GTM-5KBPWNG"></div>
<noscript><iframe src="https://www.googletagmanager.com/ns.html?id=GTM-5KBPWNG" height="0" width="0" style="display:none;visibility:hidden"></iframe></noscript>
<script src="https://www.google.com/recaptcha/api.js" async="" defer=""></script>
<script type="application/json" id="user-data">{"id":"665437da02f04742ce51dd52","loggedIn":true,"settings":{"emailNewFilings":false,"emailSearches":true,"emailCommunityContent":true,"emailProductUpdates":true,"enableAnnotations":true,"enableReadCheckbox":false,"subscribedEmailFilingGroups":["financial","news","registration","proxy","other","ownership"],"subscribedEmailFilingTypes":[],"subscribedCommunityNotifications":["repliesToMine","newOnAnnotated"],"periodicEmailSchedule":"never","stockChartComparison":true,"stockChartPeriod":"1m","toggleFavouritescol":false,"toggleNotescol":true,"toggleAlertscol":true,"collapsedFolders":[],"collapsedCards":[],"annotationsPublic":false,"disableEmailNotes":false,"hideNextSteps":false,"alertTypes":["ldb","news","social","user"],"emailSearchesSchedule":"realtime","folderSettings":[]},"plan":"free"}</script>
<script type="application/json" id="init-data">{"annotationDocumentRoot":".transcript-container","annotationDocumentType":"transcript","annotationDocumentId":"PLBY_3408148","annotationCompanyId":1803914}</script>
<script src="/js/dist/initial.js?v=20241113T074124"></script>
<script src="/js/dist/build.js?v=20241113T074124" defer=""></script>
<script src="/js/dist/annotator.js?v=20241113T074124" defer=""></script>
<script async="" src="/js/dist/annotator-frame.js"></script><div class="annotator-adder" style="display: none;"><button type="button" class="sendTo">Add to note</button><button type="button" class="create">Annotate</button></div></body></html>