Playboy, Inc.

Welcome to the PLBY Group's Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. I would now like to hand the conference over to Ashley DeSimone from ICR.

Good afternoon, everyone, and welcome to PLBY Group's Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. I'm Ashley DeSimone from ICR. Hosting today's call are Ben Cohn, Chief Executive Officer, Ashley Kechter, President of Global Consumer Goods, and Lance Barton, Chief Financial Officer. The information discussed today is qualified in its entirety by the Form 8-K that has been filed today by PLBY Group, Inc. This 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 PLBY'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's views and assumptions regarding future events and business performance at the time they're made, and we do not undertake any obligation to update these statements. Forward-looking statements are subject to risk, which could cause PLBY's actual results to differ from its historical results and forecast, including those risks set forth in PLBY'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. Do not place any undue reliance on these forward-looking statements. During today's call, PLBY will be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in the earnings release that PLBY filed with its Form 8K today. I will now open the call to Ben Cohn. Ben, please go ahead.

Thank you, Ashley, and good afternoon, everyone. 2021 was a stellar year for the future of our company. We went public, completed three acquisitions, which brought in skills we needed for our business transformation, and hired some great talent. We achieved 96 million in revenue in Q4 and an incredible 247 million of revenue for the year. The consumer demand for our brand has never been greater, and we are well on our way to our goal of 600 million of consumer product revenue in 2025. You can't walk down the streets of Los Angeles or New York today without seeing someone wearing the Playboy logo, and we believe we could have easily surpassed 100 million of revenue in Q4 if not for the COVID-related fulfillment challenges impacting both Yandy and Playboy Halloween sales, and the impact of Honey Burdette retail store closures in Australia from October into November. This has been a difficult operating environment, one that caused us to constantly pivot because of supply chain and distribution issues, one that cost us considerable revenue due to supply chain issues and disruptions to our workforce, and one that delayed the rollout of new products and stores. Despite this, we grew our revenue, expanded our owned and operated direct-to-consumer business significantly, and grew our workforce from just 130 Playboy employees two years ago to over 1,100 today across the Playboy group or PLBY group. Our organization is now more than 80% women. And our business transformation is taking shape as we move away from a licensing and a legacy media business model to that of a fast-growing direct-to-consumer and digital product and services business designed for profitable, long-term, sustainable, and meaningful growth. This year, we will build on our great momentum and assemble the pieces acquired last year into a sustainable and scalable foundation that will allow us to further accelerate our revenue and profit growth in future years. We will accomplish this by focusing on these two priorities in 2022. First, we will meet robust consumer demand through the continued expansion of our direct-to-consumer business by further growing our owned and operated channels, realizing synergies between our brands, including eventually aligning Yandy and Lovers around the Playboy brand, consolidating operations and tech infrastructure, and continuing the optimization of licensing. And second, we will continue to advance our digital business through the full build-out of Centerfold and its integration with our other platforms, including our NFT and Web3 initiatives. To focus the organization on these priorities, I have simplified my reporting structure to bring in industry veteran Ashley Kechter to oversee all consumer products, including our Playboy, Lovers, Yandy, and Honey Burdette brands, and our licensing portfolios. Ashley joined us in January and brings a wealth of experience to PLBY Group, having spent 15 years at Gap, most recently running the Banana Republic factory omnichannel business. Prior to that, she spent seven years at RH, or Restoration Hardware, where she drove rapid growth as her Chief Merchandising Officer and Chief Inventory Officer, overseeing multiple launches of new revenue and product lines, and supporting a successful IPO in with revenue tripling to $2.5 billion during her tenure. Ashley is going to share more detail about our consumer product goals for 2022 and key highlights from 2021, and then I'll walk you through our digital goals. Ashley?