Mike Hickey: Nice. Thanks Ben. Good luck, man. It’s really exciting. Congratulations so far on the growth there. I guess second question, Lance, I realize you’re exiting — sorry to hear that. Just mention, now you had now, but good luck to you. But curious on 2023, I realize there’s — you’re not guiding. There’s a bunch of moving pieces. We can sort of compute the $25 million and 12% margin there. But I guess as you sort of see the momentum in your business and you sort of baseline that across the segments that you’re going to keep and you sort of think more medium to longer term, do you have a sense of a target EBITDA margin that you sort of want to track to? And then last question, I guess, on Lance leaving. What sort of process are you guys going to go through to sort of bring someone else if you’re thinking on internal or external or how you’re going to approach replacing Lance? Thanks guys.
Lance Barton: Sure. I’ll touch on the EBITDA piece. The way I’d look at it is probably on a segment-by-segment basis, right? If you look at direct-to-consumer, it’s really been weighed down through the Yandy business and as we’ve tried to start up the Playboy business. So, if you’re eliminating that and you really just left with Lovers and Honey Birdette, that’s a segment that could be doing around 20% margin. If you got rid of Lovers and just focused on Honey Birdette, that EBITDA margin would actually be higher. If you look at the Licensing segment, those EBITDA margins are incredibly high, I think well north of 70%, 75%. And then the Digital segment, as Ben mentioned right now, you think of the creator platform is getting to breakeven this year.
We actually have two other businesses within the Digital segment. That’s TV and Plus. They did $18 million, $17.9 million of revenue last year. Now they’re in decline, but those businesses from an EBITDA margin perspective are north of 40% — 40%, 50%. They’re really high-margin businesses as well. So, I think the question on digital longer term is what would the creator platform margins look like we’ve seen historically when we launched the NFT project, that was incredibly high EBITDA margin when we generated $11 million of revenue in the fourth quarter of 2021. So, look, we think that could be an incredibly high margin business going forward. But in terms of like the next 12 months, I think of it as more breakeven for the creator platform plus the benefit you’re getting from TV and Plus.
Ben Kohn: Yeah. I think when there’s the largest competitor in the space, the numbers are out there publicly, and I think you can look to those margins for what the platform could generate. And so what we talked about on the creator platform is the $500,000 of fixed costs. There are some variable costs with credit card fees, et cetera. But if the business were to continue its growth at 9% and do $135 million in GMV or roughly $27 million to us. I can tell you flat out, it’s very profitable, right? And the margins are extremely high because your fixed costs don’t really scale. And then as far as Lance, it’s something the Board is working on. And we’re obviously looking moving forward for the best CFO we can hire at the business.
Mike Hickey: Thanks guys.
Operator: Our next question comes from the line of Jason Tilchen with Cannacord. Please proceed with your question.
