Back in October, I wrote about this interesting idea I noticed when evaluating PLBY Group that up until then, was only mentioned in an Instagram post by the Company - PLBY Group storming the creator-led platform space and dominating.

Today, November 15th, marked PLBY Group's Q3 F2021 results. This earnings call was extremely insightful and connected a lot of the CENTERFOLD dots - it looks like we were right.

Founding creators on CENTERFOLD will bring in ~300 million social media followers, and hundreds of millions in existing GMV

Lana Rhoades' Instagram- a CENTERFOLD exclusive creator with 16.7 million followers

According to CEO Ben Kohn, CENTERFOLD, PLBY Group's creator platform, will launch in early December, with founding creators bringing 300 million combined social media followers and hundreds of millions of existing gross merchandise value in the creator space.

Furthermore, the following features were also mentioned on the earnings call:

  • Subscription to creators

  • Direct messaging on the platform

  • Access to PLBY merchandise, production, and distribution in the context of a larger goal to build an "ecosystem"

  • Creators on CENTERFOLD will have the opportunity to be featured in Playboy editorials and/or interviews, a very notable differentiating factor and platform pull compared to OnlyFans

  • NFT and blockchain tools

The sky is the limit - CENTERFOLD has the potential to reach millions

When asked about the potential subscriber reach of CENTERFOLD, CEO Ben Kohn noted that given the virtual nature of the platform, and the massive global reach of the Playboy brand, it would not be unreasonable to expect millions of people on the platform (let alone the comment about hundreds of millions of existing GMV being brought by founding creators). To get an idea of how attractive this truly is, feel free to refer back to the math seen in my original article.

Medium term guidance of $600MM in revenue doesn't include CENTERFOLD, which "could be larger than the entire existing consumer products segment"

(Quotations accurately portray the message, however exact wording may not be verbatim)

This speaks for itself, but its truly amazing to realize how many growth avenues there are for the business. Beyond CENTERFOLD, a few notable updates from the quarter include:

  • 2/3rds of e-commerce customers were under 34 (so much for the "dying, old brand" counterargument)

  • Revenue was up 67% year over year, including ~$5MM impacts from COVID-19 related closures

  • Management guided to a fundamentally more profitable business as EBITDA margins would benefit from the digital nature of future operations

  • Playboy Rabbitars, 3D NFTs, sold out, generating $8MM in revenues. PLBY Group receives a 10% "commission" for every additional sale thereafter, and reported that Rabbitars additionally sold another $8MM in secondary markets, generating the brand ~$800K from these resales in a manner of weeks on top of the original $8MM. I like perpetual cash, what about you?

  • Additionally, Rabbitars, which went for the ETH equivalent of ~$900USD, had tremendous resale values. A rare Rabbitar sold for ~$50K USD!

  • Ben also touched on the "metaverse" and how a Playboy club offering in person and virtual parties was in the Company's eyesight.

All considered, this quarter was perhaps one of the most bullish in the Company's recent history. An entirely new business with high margin, recurring revenue, and network effects is emerging among an already established DTC and licensing brand that is growing at mid double digit growth rates.

1,274 views0 comments

Recent Posts

See All