- Earnings call transcript Q3 2022

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Operator

The conference will begin shortly.

If you have any questions please press star 11. Good morning, and welcome to Vivid Seats' Third Quarter 2022 Earnings Conference Call.

Following management's prepared remarks, we will open the call for Q&A. I will now turn the call over to Kate Copouls.

Kate Copouls

to Third welcome Conference XXXX and Call. morning, Vivid Quarter Seat's Earnings Good Copouls, Relations of am Head I Kate Investor at Seats. Vivid

Executive today have should me company's Stan Chief to Vivid Officer. Officer; filed Chief Financial Seats; Fey, and press now, access quarter to Joining earlier By Larry this earnings results discuss third Chia, everyone are release the morning.

on investor.vividseats.com. Vivid provided earnings and are available release Seats' slides. earnings of page at press We the The supplemental Relations have also website Investor slides

the provide During press this of forward-looking securities our and which EBITDA are of in the call, On within margin, laws. statements today's the described refer useful to investors. statements non-GAAP and make release with we course measures financial information adjusted the may management and are other call, for company's forward-looking the that risks federal meaning as SEC. to filings subject uncertainties These will adjusted EBITDA

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Stanley Chia

for and capture today. GOV Good results the industry revenues and The quarter you thank with everyone, marketplace for our joining excited records strength to X technology both testament are a seen in performance for These we've Agility. third set consecutive to last continued, momentum team's quarterly quarters. we've our now the morning, powerful discuss to ability Vivid has our platform results us and solid and another team. and I'm from Seats business our

morning, results while Larry public long-term service our want unique acquiring to an and and to offerings We through retaining on targeted over brand loyalty. to of update share continue strategy is guidance our To milestone discuss an strong and foster which reported It track differentiation record turning demand just strong investments company, strong This growth for We event to it furthered we like with, business remark and and Vivid product awareness Seats. progress been as our to begin detail. October. more to the with reinforce strategic I customers I'd before our quarters to our on and a and live financial execution making capitalized has on enhance year of incredible this in our a first long-standing year profitability. record passed

rewards ESPN highlight with the Seats we the earned XXth Seats Seats the Vivid with campaign, and free Vivid Rewards, high-value to paid, series center highlights our features homepage the like to partners. brand, the curated and of I'd reach takeovers our Vivid driving Rewards new In campaign XXth and bonus audiences. brand was a a ever integrated recruitment number iconic Rewards of targeted VividPIX. Next, the this top the Most sponsor on The our of differentiators key efforts. for launched real brand Seats fans and one brand owned real for This campaign and campaign category September, highlighting media Vivid and launched across of recent content notably, sports XX awareness ticket. perk first Seats play is Vivid the brand with with of connecting key program, XX

increasing brand of mass quarter initial recent which brand the our XXXX, Our contrast fourth campaigns during push awareness. brand to market on focused

refined many of we more corresponded awareness our sustained indeed While increase campaign with with channels. more significant targeted and double-digit%age initiatives in awareness a have through brand and efforts in increases XXXX's achieved

aware times fans and likely from fact, across consider Vivid X channels have more to these some be X likely Seats Seats. of to X proven In of purchasing be times more to VIVID to

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younger are center building marketing through and At are focused to we on are and our Seats, effort. And on customers influencer music that at Lastly, our sports fans, cachet building life. target for we Vivid collaborations. cultural ecosystem and the data of

transactional marketing Our well goes and beyond unified multiple customer dynamic stack a data data streams profile. tech powerful creates ingests

customer drive the Vivid to continued through channels prospect and surgically about most smarter the VividPIX. through and we are engagement Seats best propensities and and purchase illuminates the programmatic valuable before, preferences lifetime communications. and than value segments via We triggered action ever Consumer activity

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we Skybox of is most marketplace, added widely sellers XXX proud continue sellers adopted ERP and technology manage that industry-leading use thus to customer seller sellers offerings with ERP. are their side continue our sellers the to excellent to migrate we our Professional far in over an service. Professional with On retain Skybox their XXXX. inventory, to attract ticket and and

fuel picture the our data first-party industry. a thorough utilize event real-time and of flywheel. We Vivid to offers power live advantages our Our marketplace SkyBox marketing engines Seats data and our uniquely

to on Moving the consumer.

resonating live experiences. to wallet Baseball and family-friendly continue to our We more gross popular festivals In continue ever. share and enjoyed has appear a shift demand it's to resurgence they that times from categories, than healthy XXXX music, goods are Minor see In as League value Minor sports, clear Baseball with X is levels. consumers events now League across order

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consumer patterns. in to purchasing continue see encouraging We changes

baseball that attendance disclosed Meanwhile, inventory ticketing consumer was orders more This MLB have to buying. the the season MLB increased XXXX X% to ticket versus market flowing significantly. more as of Vivid's to continues preference Specifically, supportive shift flexible XXXX. secondary data packages is down season regular from

Ed we we top announcements for artists, third In fourth As we've positive seeing of date, the and robust including indications [indiscernible]. tours announce the look [indiscernible], fourth Blink during XXX and Swift, Taylor their calendar. quarters Artists to quarter. exciting from following XXXX, often year, are tour concert the to had already Sheeran, a George

within product continued and VividPIX to WNBA, expand event the reach we quarter, in new side, and our the third introduced live UFC On Tennis, offerings FX. including sports categories new to We app, engage the spans. with

future We will an integrated talent, are platform. shared is model scaled which The in an in moved growing Field currently across unlocking sector. Vividix we in investment our the and collaborative and early after support investment building historic It's Vivid season an in just headquarters not support to in of current Marshall foster to ongoing Shortly exciting attract, with our and the ended, with workforce a and and our to business growth employees, Chicago's Seats the workspaces. milestone are our reached an midst new hybrid its quarter the downtown tech still of NFL and Chicago. we product headquarters work first NBA retain value third and

office. our As fans our new a the doing enabling are employees are for with we and business, about we it live, passionate same experience to on intent

strategy, from Turning and making eager as competitive award-winning our our margins. maximize long-term that we We unprecedented to competitors and opportunities customer Vivid position invest see and to to of we the unique environment. customer or to to products increases now the past enthusiastic enhance regain such differentiated strategy services in we intend year, remain and where continue putting to obtain pressure scale, pressure our have the Throughout continued relationships. service see confident near-term customer investments ramping lifetime value Skybox and that value on PIX, our

long-term the driving decisions. and right on short- remains and focus by value making long-term strategic shareholder both investments Our

One of us. and to those to company strategic a decisions become levers available was augment the public

company, increased within Todd who Rolling our provide business invaluable and League. the Bole, an sports, publicly with and to the Beyond benefits to both its Premier connections gained including strategic trust Stone, inherent traded to significant customer Dodgers, and in brand partner a Chelsea continued music has now investor awareness DraftKings, and the we in Lakers English

business and deploy debt fantasy. strengthened sheet cash our gross A model unique Importantly, to immediately value. equity to flexibility reflects drive an it's with expand to our a sheet category, daily to clear continues our into we're exceeded of that we growth that power proposition. balance shareholder the strength investments and also and healthy a Being the of provide able make position to year public later, the our adjacent value where differentiated balance increase capital long-term

Our ability on Larry. of our drive over the long-term the With which live I and is demonstrating from will near-term turn to resiliency continues benefiting both to and category, recessionary capitalize it success. tailwinds events factors to strength that, to

Lawrence Fey

the to I'll Thank updated begin for third remainder our outlook quarter of trends you, results before and XXXX. Stan. a our turning with discussion of

the reopening set quarter, we This of demand. records strong exuberate we third very by from quarter capturing results lapped when multiple XXXX

third remained healthy, our Seats and proud and the set continued platform. demand achieved Vivid are ever. to remained million total quarter orders During records environment highly our for while invest Seats adjusted and quarterly continuing profitable XXXX, to in Vivid quarter marketplace revenues GOV generated again third $XX differentiated once the new of live event highest EBITDA and that we marketplace Meanwhile, of

with driven XXXX, AOS CAGR with In third trend average slightly. of of versus primarily up XX% last $XXX AOS we increased half half strong impacts line baseline year-over-year, order contributed XXXX, up XXXX, the third in line quarter while million driven in XX% a artists our demand in to XX%. some of better X% in resulting increase to growth view also see of artists robust to marketplace increased as XXXX marketplace versus occurring quarter and pandemic for quarter QX by we shift. annual our increased And QX XXXX size mix X% MLB first XX have XXXX X% the $XXX in this AOS XX% -- in a QX lower orders, Our GOV, year AOS the timing XX due to than the the XXXX, top throughout first We with primarily select of XXXX by for for total increased this GOV historically. with ALS year. by top consumer continue seen categories, relative deceleration playoffs playoff the AOS Later X%

was XX% of Our and take increased million our third year-over-year, quarter revenues $XXX XXXX rate XX.X%.

several a EBITDA retain historical a due with EBITDA were as impact and investments Our margins is calculated were Meanwhile, we lower which when from increased our marketplace loyalty marketing roughly substantially Meanwhile, ramped Adjusted take company reduction of dividing has in and balance. We investments, quarter of third operations our considering been which quarter, channel. to higher was the EBITDA basis XX% margins sequentially tandem, an margin. revenue in for quarter normalization XXXX marketplace our the by EBITDA by After EBITDA should $XXX in on the approximately of revenue. were reopening. sales lifetime Exceptional consistent to users expense marketing year-over-year positive to lower slightly cancellations the performance our contemplated non-recurring of stable exceeded structure deliberate rate, and of accounted slower a XX%. Cash million our quarter full We targeted basis occurred. making was pandemic flat program, and our redemptions within on debt competition $XX sized with XXXX is context adjusted slightly returning the of sequential In gross less on the marketplace year-over-year. EBITDA guidance to margin and gross our are which quarter and previously and adjusted we pandemic third net which lean is cost million met cash margins third as steady the tax was levels G&A provided public brand XXXX postponed XXXX value. events discussed, finally third despite revenues adjustments year costs be who cash from including scale, out seize margin payables store to credit to year-to-date, third incurring as items of benefited from our than due upon performance adjusted which generated increase growth. expense, brand and quarter GOV normal balance the sheet, of last seller closed conversion competitors sequential in a payments,

to generation We XXXX. expect to cash return our business meaningful in

our and a contributor reminder, CapEx. to working levels sellers. of is low as before typically from cash expense we we remitting interest capital as And flow As ticket grow, to payments receive buyers have we a positive payments corresponding

$X quarter, of the deployed third price average roughly volume-weighted XXX,XXX $X.XX. million we During to back a of approximately our at buy shares

approximately We is capital the to As maintain sufficient selectively compelling balance asset areas strategic of of million as adjacent significant as view an QX, may under that trading $XX that sizable continue the and authorization. end buyback balancing opportunities our of provides investments to when while swap. need repurchase our arise. flexibility to a us shares cash in use We ticketing attractive remains make

guidance downside quarter and to guidance. this financial in scenarios We than new of be marketplace our guidance our range our billion and initial we and After for in $X.XX our revenues than Healthy billion above or demand range $XXX guidance. in Turning revenue marketplace business. in more GOV The to $X.X at GOV XX% our coated raising quarter. XX% not raising and XXXX is has more XXXX both the consumer decreased anticipate of midpoint second our higher first midpoint. marketplace with to variant be after to GOV we the discretionary again XXXX are and to now guidance year-over-year that materialized wallets resurgences of million saw $XXX our continued metrics million, both the results, have earlier revenue XXXX

guidance we EBITDA supporting increase million term. two demand long less strong our agile $XXX policy marketplace XXXX, our as within updated for competitive and EBITDA invest than remaining in GOV guidance environment. are to maintaining $XXX at adjusted we range Our to adjusted in to unchanged With is guidance million. reflects an With revenue the XXXX continue continued guidance, months remain the

visit customers, see be loads or and to debt opportunistic. continue we both profitable to subscale do can Unlike so. opportunities where Specifically, will reach, winning heavy with we competitors afford

Our long-term scale, sellers to making long the buyers in success. as as to value well win necessary will term, and give clean to we generation investments proposition balance sheet right cash and ensure differentiated our us a the continue and

for Our continues scenarios demand. guidance range to contemplate potential

We since While impacted our like team of to stretched a through results capture a opportunistically the rapidly capture utilized strength. what marketing and in may and Stan, the resiliency, to if company. has consumer nonetheless last Vivid would our publicly year through wallets becoming are discretionary record buyers quarter and sellers traded scaled service Seats live our Similar record imply that events excellent pandemic further. industry recession the to pent-up our trajectory on be consumer demand to accomplished I'd third are prowess results. category digital to out customer delivered accelerated both coming reflect

closing second team to year, seeing public categories. first be loyalty as across company. an it are can towards during Even our so, higher We our we traction forward to our what and after accomplish would event initial a exceptional repeat as prudent expect year rates reversion particularly brand remarks. longer-term back We growth demand on investments with With face a for look remaining strong recap, in I and live it in macro healthy to for quarter, events will the environment. of and an Vivid converted third Stan remained trend profitable. while line, hand highly Seats uncertain that, industry the strength results to resilient To

Stanley Chia

Seats and continued set what team to proud and Larry. of In Thanks, accomplished. Vivid conclusion, quarter, our this committed records I'm talented

fourth call. scale up to will term. I XXXX are our questions. long to people, look and quarter that the on that, with in win and you. our positioned and discussing product, well for right sheet operator, forward And outlook We open have balance for it strategy Thank confident technology, We we the

Operator

[Operator Instructions].

Our Ripps question Canaccord first with comes from Genuity. Maria

Maria Ripps

you signs just from Good of you in of talk on sort on what macro quick And sort and what your results have behavior outlook? Congrats morning. far seen so in here. in saw is have consumer QX backdrop follow-up. maybe a then And any I you Can deceleration kind QX QX? about of of embedded

Unidentified Company Representative

Yes.

to changed, philosophy guidance we're nothing's of a from standpoint, potential think range where I scenarios. trying capture

a think had we've increasing feel prospects the impact softening prospects numbers in certainly despite meaningful a the has quarters now of date. not of having for potential seen like diminished unaffected I slowdown of COVID-related number row. Alongside that a consumer they're it the in that, to

think pretty the in of series playoffs of [indiscernible]. many fewer we championship MLB about our season games to having impact games on games. than the were say were there One, GOV. normal because technically But As adding QX that I'd the MLB QX, more overlay shift we're more now on a couple meaningful through in a with wild format There things.

And a in and I months And concert as of sales. bit you the so that, really the in December there on MLB is November beyond headwind a think then important are world. realm track

are a little been and that a call, and of of there've out quarter. the I While will things well-too ones to couple determiner some big be encouraging early swirling point, for it's at think shake this rumors there a where

Maria Ripps

can is That's very callout the takeaways the XX maybe well the with about as And influencers it. on you partnering Got to latest talk any brand as campaign. helpful. the promote early campaign company from additional

Unidentified Company Representative

we're Yes, excited. think Look, Maria. really I sure.

we've which about board, invested pleased really think we've we with brand things think a in, repeat that enthusiasm across you campaigns. category, is of every with our the gives what and program, higher rates things control seen the think consumers. resonating offer really we're note I I when you that the to that And lot we our us loyalty across start

on I sustained when build we audiences targeted new today, we brands Doritos, seeing our through to stages think York that As New also like as Snapchat, launched, look quarter, retention deals you on and side, We're vehicles. about high-value that collaborations significant then looking the the launched of do. some we've we in hit you certainly partners talked in both at, more with the capabilities through in especially early through increases that we're Post look we repurchase, also collegiate continue out we're the NIL and

So across and side, with in that programs the really I to be that the marketing capabilities when offer continue we're we're consumers, seeing. that that the with spectrum look on we retention of brand combined results investing we think about enthusiastic you

Maria Ripps

That's very helpful.

Operator

next Ju our And question. Stephen line open. next is our The for moment question Credit from comes Suisse. One with

Stephen Ju

pretty dollar basis. resale on So came in a I nominal think strong the

I'm what's strength? So just early, Or kind from product with Skybox. be of anyway. are but wondering I it just general might environment? a I'd it lob that something this guess driving Is a you bit the perspective I thought in doing little And question

update just to So us see and on change if you the signs PEGs you're any whether for early going synergies... I wonder starting of could how

Unidentified Company Representative

Yes.

in of On would that of strength. consistent that top our I the has on the a as guidance seen, representative is And the course side frankly, come resale has a retail pretty been shifted raising with there. the the seller, things, it of to exception overall Nothing in and year. our fundamental there healthy the line above no say, over we've expectations strategy market underlying

of really than been a more So it's ride anything. story

Unidentified Company Representative

Yes.

to there. excited I about side, -- think VividPIX the On we're are see we what we continue

early certainly, activities early be mentioned, we as the we CRM and campaigns. highest looking WNBA, But stage integrated new there. to e-mail product in including of campaigns value FX. performing at the we've categories Tennis, some We're I think those of VividPIX still some fully USC, As look our app, are introduced activities, and within unlocking the

positive we side, be I [indiscernible] quarter very is on in to in we're what So but busy all our side. the expect a on think very early

Stephen Ju

you... Thank

Operator

Thank you.

William from with Blair. comes question next Ralph Schackart Our

Ralph Schackart

add I'm the taking remarks, campaign, could specific Thanks program. in loyalty a of you a more the Stan, this prepared campaign for the versus on a more Maybe you there? examples question. But follow-up, I please. just have brand talked guessing targeting I it's about color or any about on other. couple And little the what's bit then the resonating. think focus

Unidentified Company Representative

the that some lot of launched, particular, we're we're a as ticket what in sure, intent learned Yes, I think really Ralph. strongly category around and and proud of with we've the with look high we program them. XXth that awareness, at high kind is of creative what rewards the fans resonates really think I of Yes, you doing

that to stones, iconic rolling those X Seats to consideration Top So of audiences Series strongly buy there, folks, a do against or look as aware some we XX And takeovers, that, is we've of it and XX is look those really to those we've reinforce more we of bother done likely when the again, to times it from seen you across some things from to that at they then we're be the that ESPN and some tend be play homepage likely perspective, audiences at partners, also our what resonate there. ESPN looked whether us. of we serve found X X more really able to Vivid times a messages

yield economic I space. as at in so channels feel look at we we about we fans, at found the that creative And we look that at as channel our messaging driving to and channel, good the and diversification, while that really look think partners benefit look we the we

Ralph Schackart

you out called a follow-up, on margins. competition that then the And on just Great. just

Was want get kind a a sense road you're smaller that based? of competitive a of it broad Just Was nature curious, was competitor? larger it seeing. the competitor? that to Just

Unidentified Company Representative

Yes.

I seen -- think we've side. it's competitive across widespread the fairly

our is now winning the there's driving certainly versus industry. confident looks what we for fairly think to everyone take service, to are in of offering strategy VividPIX. a overspending -- much on long in product look channels unique too really pressure. continue potentially spending a what versus think I do potentially competition marketing again I new we term better of our a we be or rewards, rate in think when resilient lot product else, at way I -- differentiation, And better

Operator

question next Black Our Bank. Deutsche Benjamin from with comes

Benjamin Black

question. Thanks Black. Ben for on Ishan for taking is the This

faring and the side, side how the Have of high any softness seen capital? given inflation on supply supply rates? is you on rising So cost broker kind side, high with of thinking just

Unidentified Company Representative

think I Look, side side, being business, sell of We've I on sellers the no dynamics their both and softness I the think in the Yes. of demand marketplace certainly supply and our costs what seen a are market business, either managing think and And are. added able stress the on grow again, to XXX we which their on having in the see platform, businesses continue continue talked over environment. grow current being to the as think our base I yet. we've Skybox, the year-to-date on sellers sellers to I we about strength as well in

Benjamin Black

you. Thank

Operator

Our Erickson question Brad from comes with RBC next Markets. Capital

now open. line Your is

Bradley Erickson

I not holding more to sort spend, us as a on mentioned. I broad Maybe pressure philosophy sort sensitive market being on is go you're just set on guess of of have line versus willing just How that. in deal what your beyond a follow-up. And share? remind around you drawing are first question of marketing the on you thresholds competitive with can ROI kind that of terms you then

Unidentified Company Representative

target look Brad, I'd at bring profitable. look But where when average chain of a that be I start lifetime slack there's customer, first would blend some transaction you a in. the the always think we meaningful saying, to acquisition in you that the we've customer by of historically value to have we new had the aware been on --

at some stream historical and to incremental those characterize everything current I something seeing line a would we're bounds. the some in we what as what of in actively the so happening on move where competitive on definitely threshold day-to-day side. have that's competitive strategies, investment beyond that we light and are I'd where that right few across sit different looking should it look a We at characterize as environment And historical increasing as

Bradley Erickson

in stepping helpful. the this next catch-up That's on comps year How it. Got well the perspective. a think the year should we kind here to just COVID you're from as some think concerts capacity just from of you've I as [indiscernible] gotten the relative back, about concerts year-over-year in maybe, into particular. benefit has gotten think benefit some some facing I certainly then And market of of

Unidentified Company Representative

looks Live future. already Yes. when Nation like either Certainly, lineup look the the year to have names announced to you or of you in another the when tours expect robust it at at be ours look announcing near commentary, that or rumored they

adhere have with announced So folks are some those and who set moving names. -- Swift QX, really already Taylor beyond large

get that out think there's in XXXX. I not everyone will so that evidence say And would

dynamic events. I catch-up postponed from think condensing had normally where some event new see and events a you slate shows and utilization of though, were than a that, number XXXX normal perhaps you you in both saw would you and capacity arena a alongside because of higher of postponed

night, So perhaps more Tuesday shows Wednesday a type night than in normal year.

about healthier, be little So decline soon an relative quality year an basis? this a robust less overall, think a past of a in year year-over-year be is coming to you than the that another just that will growth think was, given we very I to it the it Or or is bit doubling no think probably the meaningful year, expect But how we details shows. saw this pressure of number on think there on I post-[indiscernible]. growth year all-in on all-in basis to how but

Bradley Erickson

great. That's Yes.

Operator

Evercore Next Kajaria from question with comes ISI. Shweta

now line open. Your is

Shweta Khajuria

Okay. Thank you.

you where Let me -- What try some stand -- comes to please. you're and two, please provide color service. could product investing it on when

do But whether in how product should remarks. investments, define also great. you're high-value prepared awareness audience, investing you efforts. then service that be you in if we engagement is the through second, I could dollar also You How that for And it details would spend? give Stan, or highlighted brand and about understood that? your on think

Stanley Chia

down particular two the areas I think service remain the side, and we in about path almost product the are On go of bullish differentiated. I that

keep Kind us you well site. think as to between can I in engage the continue as increased I we've which drive strong that, feel engage remarks, within drive which kind we today's enables our really the Seats to look as continued we've a utilize built there And differentiation retention that vehicle also our Vivid to there, demonstration then beyond capabilities continuing where with and behavior ticket think we ability ticket see increased product of patterns think we and as ecosystem number a but at brand you parallel in ways and and users of enhance purchase I transactions our in through is with them a purchases. our our and again continue that product differentiator, think games, product, that as consumers differentiation. of about the offerings of categories to where our as think our mentioned investment our our can to rewards with I we program our strong we suite, marketing

our side, that. work do service, customer service the we winning continue On to

they and which have continue that a We the at we RT win unique cities we them them rewards beyond users where ecosystem, where where board, then as which making brand also look they in sure then But buttresses there. the also then with that, with roller, we talked service engage the experiential in provides look festivals, also event. brings And activation and components can with our our experience events brand it's best at across we have whether invest on-site, activating at service the where Lucky about to for a investment. whether tremendous we can prizes, see event they us into it's

across feel those we investments our think I So there. two strongly about really elements, really,

through a experience of are audiences And we learn of you interested lifetime maximize is call who think it, we to category-specific On goer or where in attending certainly learn you believe that more an audience the, our that as at an high-value value can live -- consumers look users, are if who Are user. about I as side, for is once-in-a-lifetime that. looking event events. audiences we the event we we definition high-value ocean continue

ecosystem. look as are we as channels so into And at our mentioned, users on the that are and the correspondingly on we into bringing channels, making very focused consumers the LTV we segment them those we've and focused targeting users side our highest that sure as marketing

Operator

Our from next Forte Thomas question Davidson. with D.A. comes

Thomas Forte

one Kate, Larry and quarter. question follow-up. Stan, congrats on and One the

seeing a con flow prices? results seeing wanted demand side? talk of on So through any Pro And know to the higher you are impacts from the you I if inflation how you your destruction... about side, Are kind could on

Unidentified Company Representative

Yes.

that's think peaked our our pricing intermediate AOS, side, a view an line bowl demand, of you term, quarters. trend on other prior a of reason over Alongside effect tickets a mixing think inflation is bit to I have behave expenditures. there's the I on consumer that have having little that the into pent-up no continue but path perhaps in as all similar that, wouldn't mixing

getting overall, feel not well There's seen. on broader protected this noise should theses persist I [indiscernible] going side. is extent think I seen we've at revenue should dynamic. the oscillation depending insulated. point, many demand, So us be be to the demand very consumer But in stretched we're Have right, on inflation think that and supply/demand some hit to which

category haven't yet. We it seen hit our

pressure structure, generally in others, convenient all We have our hit not meaningful aggregate. our seen certainly piece effect balance that a own with the as the cost the just normal hypothesis inflation on then some labor costs been found numbers impact than inflation I on the last side, the certainly in nature why, And haven't we expectation. And we're to of of it think our has cost the we've but seen given the to and nitration world we yet. the not dynastic but

Thomas Forte

wanted then on of lot a VividPIX, And ask got which VividPIX. to you've for about Great. great my already follow-up, questions I

Cup I'm to, it there for as So the down an opportunity pertains VividPIX. is to World

Unidentified Company Representative

it's question. Tom, great yes, I think a

games on are focused a activities I think products. lot current our and of domestic

I we to evaluate there, we're think happy an but look opportunity. So haven't as necessarily

Operator

from comes Raymond Marok question next James. Our Andrew with

is line open. Your

Andrew Marok

remind seasonality of question quarterly a way. in just different Just guidance asking the business? about maybe the you the us Can

X you've at about the guess seasonally down Q-over-Q little be I season, I has in being baked strong to with talk XQ sports along Or the calls X big revenue bit more Christmas past, of the the talked cetera. of guidance think et for kind in seasonality? events, conservatism being But a on in thinking axis? changed just that midpoint. about the the

Unidentified Company Representative

structurally. Yes, nothing's changed

X announcement prior think season. with sports the on appears with I the that the persistent happening, quarters, some it years. outpace namely reasons all schedule ring concert hold has on will why QX first average, coupled sales it Concert

I'd say this things. the not a the we we the will X there's only those I than given year for or So trend been noise still strategy just this through COVID the against I'd hold continued last question landscape dynamics not quarters. experience. trajectories to we those whatnot. certainly this happen. that about think several Yes, where pretty changes we've it ourselves steadied also One, say we as that's look as just magnitude but scars of and this of reopening given think potential year's more a manifested have year, at opening performance, dynamics, caution the recent about elements the think as demand as unique buyback risk, the we But but some there's competitive year, year-over-year and [indiscernible] variance last be still with sequentially, to year

but create end some was of be nature before, and sales here be it. if the sweep continued week in every in that's would that And to when impacts. persist, early, about was a the of November, what where we normal. more say be first So there there games of don't meaningful we're there's as then in game the just as it's cancellations time said on then right? little formally a there. caution a XX. light shorter to sit The would that And And like scenario of biggest series headwinds And -- X particular, could we have than reasons hopeful, meaningful still effectively series control do and a point higher Blueskys we championship we in MLB you playoff outcomes. And

we're in so trying to views. And remain those guarded

Andrew Marok

follow-up. Understood. semi-related then kind a Very helpful. And just of

between kind at to around concerts looking still novel the are in difference viewing you where you're of resilience this similarly Is in a macro of potential are range of sports point? build still Or in experience? those both kind scenarios outcomes, any the are baking them there As and you non-sports. dynamic

Unidentified Company Representative

Yes.

at think World out a a I think, play over Series sports. who World decade, If exit look that broadly was where of, front had And you really talked Stan, you if the similar, off or right? I you think think you about Series, in had play you the the in hasn't saw Philadelphia I element allocated. sawmill

series that they've contrast was as still where while rankers the wasn't the strong it championship and World bullies Astros interest, can You there Series. you been And in Philly. saw in

sports so across you And rating that about and started series.

almost that. for There's lot are of of teams excitement you If cities ascended. that always that have years, number a around a been have struggling

some back. are or cuts always teams do on probably pick to of excited you'll it's another before make it have -- to so opportunity that the And and get out XXX fans and that I'll number because want Chicago the years

first you sports So at can. the why look strike got -- you when the to The be open. we there's were definitely results. to area

the And was some pent-up now get season or there to back. all sports in reopening We're so the category. extent to of across our second demand excitement full

what environment a of So think was we're in year. code recurring concerts not. Faster protocols normal with first pretty we back the and was more easy year ways settled still the cadence, whereas into a lot this a

aligned. I long-term of everything So by in year, that will be it feels concert time this pretty think into little like But well sports normal trend. a ahead are settling next

Andrew Marok

dark know Well, I'm so sports a fan, go period a to what here. like through it's Detroit I

Operator

question Farrell And Sandler. our next comes from with Piper Matthew

Matthew Farrell

why changed industry the as than and XXXX, just of with appearing as a Vivid you years, the better for the seem economic in over position headwinds vibes step ever me. an storm Maybe excel a execution. weather take the back, to a I last for guess, the in and kind we on As strong of When Thanks. enter be one couple is potentially that across environment... lot uncertain to has well

Unidentified Company Representative

talk that. to about happy Yes,

we the through on positive, flow model free And a scaled to positive, We are right? I at continued growing of has think the marketplace. -- I'll every EBITDA start improve you margin through, line P&L, first have and the look that with, I us when positive. contribution think, cash

positive I we've net sit, environment again, we know balance be really we're in that to you debt think that the sit an have able a see to able a one allows sheet, does we then we got not fit dynamic. over in of When strong lot that where where the as both invest competition balance couple We to us to and here sheet. resources the position else have And has, side a alongside service. the talked as And the whether unique cost way the I to to marketplace the customer selling the the then to engage that in and continue differentiation think, of about, the a in for we've ERP industry-winning nobody rewards then product when invest on communities. service then look structure seller is leading professional program that at, you business. VividPIX a that where

are foreseeable continue but across remain and the the our financial that question, board the answer bullish whether of on we maybe is think best set competitive your our I positioned us. trials, in to capabilities storm truly whatever service directly really ahead our customers, differentiation to product side to with win that we more

Operator

this conference this our At concludes call. time,

now You you Everyone, day, thank have disconnect. participating. for may wonderful a and

Stanley Chia	CEO
Kate Copouls	Head, IR
Lawrence Fey	CFO
Maria Ripps	Canaccord Genuity
Stephen Ju	Credit Suisse
Ralph Schackart	William Blair
Benjamin Black	Deutsche Bank
Bradley Erickson	RBC Capital Markets
Shweta Kajaria	Evercore ISI
Thomas Forte	D.A. Davidson
Andrew Marok	Raymond James
Matthew Farrell	Piper Sandler

Vivid Seats (SEAT) 13 Nov 222022 Q3 Earnings call transcript