2023-08-10 11:13:38 ET
PLBY Group ( NASDAQ: PLBY ) fell 9% on Thursday after reporting a loss more than 11 times greater than expected.
For the second quarter, GAAP EPS totaled -$1.79 compared to the average analyst estimate of -$0.16. Revenue came in at $35.1M, down nearly 27% from a year earlier and compared to the $48.86M expected.
Adjusted EBITDA loss from continued operations was $1.3M, which included $1.7M loss attributed to playboy.com e-commerce business wind-down costs and China joint venture transition costs.
“We continued to make significant progress transitioning the business to a capital-light model and made substantial improvements to our creator platform,” Chief Executive Officer Ben Kohn said in a statement.
The pleasure and leisure company said its creator platform continues to demonstrate growth at an early stage, and generated GMV that was 2.2x over the first quarter. At the end of July, PLBY had almost 2.6 million registered users, up 37% from 1.9 million at the end of April.
PLBY has been focused on reducing friction in onboarding new creators, a process that historically was very labor intensive. “We fully reworked the onboarding process, and in mid-July opened the platform to all creators that want to join.”
“We also made significant progress reducing costs further and moving to a capital-light model,” Kohn said. “We successfully completed the outsourcing of our Playboy e-commerce business, from which we will receive 15% of net revenues as a licensing fee.”
PLBY is trying to monetize its art collection and is in discussions with leading auction houses. Sales should begin before the end of the year.
China continues to be weak from a consumer spending perspective, and the geopolitical situation is challenging, which makes collecting money from China more difficult.
In addition to the cost cuts previously outlined, the company identified another $8.5M of potential savings.
PLBY is down 78% in the past 12 months.
More on PLBY:
- PLBY Group GAAP EPS of -$1.79, revenue of $35.1M
- PLBY Group slides after earnings miss, Roth MKM downgrade
- PLBY Group GAAP EPS of -$0.58 misses by $0.35, revenue of $51.44M misses by $5.04M
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PLBY Group reports loss great than expected