Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to the Vivid Seats' First Quarter 2023 Earnings Conference Call.

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

Kate Copouls

Good morning, and welcome to Vivid Seats' First Quarter 2023 Earnings Conference Call. I'm Kate Copouls, Head of Investor Relations at Vivid Seats.

discuss and results Officer. Larry to Chief Stan today Officer; Executive Fey, me Vivid are Seats' Chia, Joining Chief Financial now, released access press have everyone first By earnings quarter to release, this earlier our we morning. which should

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

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

You would to and reconciliation a to supplemental corresponding adjusted GAAP adjusted press Stan. and filings. in SEC call historical And earnings the EBITDA like release, EBITDA the turn I earnings the margin measure over to slides, will find of now

Stan Chia

thank everyone first exceptional I'm today. to thrilled with morning, joining us you our Good XXXX share results you. quarter for and

excited As report stickiness in I'm prioritize value on long-term and always, marketplace, and our initiatives we our that generate progress. to

highlights discuss you drive to speak detail our the our Larry results more strategic financial financial competitive quarter first quarter to Our and to ability incremental to before our for it take simultaneously differentiation. begin from updated to our XXXX. results with, and through and financial relentlessly To efficiency turning product in invest through in outlook I'll walk

environment. million adjusted in marketplace We double-digit and million generated guidance. adjusted proud I'm $XX the first to million marketplace of raising our for adjusted highly of we expectations quickly we despite revenue call, out we EBITDA exceeded set doubled and ticketing We EBITDA and and QX GOV to XXXX growth and accordingly our marketplace set $XXX competitive GOV, XXXX revenues, in during $XXX EBITDA quarter. GOV strong delivered of Thanks a and March, a strong revenues are report

event such point to a combination to headliners first an for like quarter, data World Consumers Baseball environment sports Consumers XXXX women's events experiences seats continue fan continue a Drake across category The supply exciting Basketball and for was growth was this demand. in as will quarter continue to latest sporting we X. trend Beyoncé, live and we were NCAA the first X to the believe of in Classic as and believe event decades The supporting Women's exuberant outsized and trend crave secure for many concert exciting robust and eager years. live that Final due Final will Women's the the of come. for their

on campaigns focused ensuring program. Seats consumers our While are favorite underpinned differentiated events, unique the of Rewards live seeking marketing with are our us their fans they buy. rewards by Seats more offering experience, Rewards Vivid fans more aligns our aware by are Vivid

experiences. other host our ranging exclusive surprise from to to ticket loyalty day program addition savings, upgrades of game a In includes benefits

vehicles in experience we awareness crucial is efforts, live and cultivate our engagement and affinity improvement to invest with drive and low-frequency in designed are marketing our brand relatively buyer both between seeing to events platform. Our our starting category, program, and engagement. during we for as continued and Engagement lasting product loyalty are

with lead the social buyers social an growing sentiment, competition growing with at efforts, through whether on-site ever positive have before. are In highest or social, more than and event our rapidly presence, we marketing engaging the we our us With our following. been

doubled in quarter-over-quarter and we nearly began since initiatives earnest times XX grown has engagement QX. social in Our our

app, will product this available We're fully to ground get buyers powered app thrilled are off chance to our a Vivid and experience. Seats and to the innovate challenges free to tickets. excited May, Picks. first be within our within with able engagement differentiate product opportunity to win efforts announce Vivid play engagement users continue and by Launching our for offer buyers free-to-play in to We the product-focused daily another our compelling directly

the our automated our data, On its pricing leverages has to powerful product Drive, that seller marketplace beta side, SkyBox phase. continues into and progress new moved

launch march towards feedback incorporating are of We latter the as the in we an year. exciting half

sides of of are consistent driving products on stickiness leading investments the focused result our Our on long-term marketplace. both

of professional base install more includes on SkyBox already sellers. sellers of than Our XX%

and tandem and repeat from we buyer know will we there repeat music accretive We our Vivid for grow buyer same Even network categories, onto personalized side, the among the placed XX% a than fans. purchases loyalty activity. orders investments XX% in offer across At that our drive and the of provide repeat better buyers ever-growing grow campaigns. In with we with in time, our to our for still platform, XXXX buyers driving attract continue of cohorts trending new on experience, is ever buyers and nurture Seats repeat behavior to higher rates order repeat our room differentiated sports an before On as continue margins. in XXXX. passionate recommendations to to new creating increased to by and tailwind adding portion

are grounded principles operating profitable in and driving growth. strategic Our

such and Sustained consuming drive a differentiated a buyers service always execute from new strategy unsustainable we that not has attract Raising maniacal and with that on repeat is continue volume endure. increasing focus products, is and rigor capital value, and does can control. consistent to we gains stem testing invest and excel. while where we things to rates to been that Our disciplined approach through

cash this healthy and To flow. we quarter delivered progress growth, strategic important profitability, made conclude, and

strengthen our With continued over to strong of will asset ready outpacing our to substantial industry continue product balance track market while we to I our growth. position, serves a deploy to and as sheet turn We that, are that Larry. record it

Lawrence Fey

are our to account I'll date. and exceptional Thanks, raising first the quarter to our detail discuss off XXXX turning before our GOV, EBITDA outlook quarter to adjusted kicked first and marketplace Dan. results for We updated in revenues for an guidance XXXX. with

a increased marketplace increase $XXX orders average year-over-year, XXXX XX% million quarter in X% by total driven first marketplace XX% order a and size. in of GOV increase Our

the GOV due robust XXXX opening year. that Our a relatively easy the particularly QX QX quarter negative MLB shifted impact event significant demand live to into of GOV, comp a March, growth Omicron calendar, marquee had with event reflects in this garners last back in coupled year. strong on day, first a the variant

demand Beyoncé. also top and the Classic including artist activity, World saw We and unprecedented Baseball Drake for on-sale

$XXX year-over-year, rate. and in take revenues XX% improvement Our of driven GOV growth XXXX first million increased quarter by an marketplace

points by and rate, unusually revenues compared to marketplace marketplace low prominent by was represented provided decline GOV QX in pre-canceled cancellations. MLB basis in lockout QX several take dividing in calculated which XXXX hundred QX in XXXX, the in concert year-over-year several Cancellations X.X% revenue tour XXXX. GOV This from growth. due cancellations Our XX.X% is down XXXX of considerably QX XX.X% of X.X% to an

we improvement. in as quarter of combination by we benefited which continuing $XX and pockets continually first adjusted of efficiency, of Margins the improved driven year-over-year, top million EBITDA a doubled from competitive Our despite marketing XXXX growth environment intensity margin achieved seek line expansion.

timing with brand-related quarter marketing approximately along EBITDA EBITDA certain quarter. and from changes First $X our first adjusted million to cadence also by margins adjusted loyalty from loyalty of changes tailwinds the aggregate, in investments, benefited program. benefited the marketing In

underlying captured margins in aside, continued strong quarter portion encouraged typical EBITDA our full-year an adjusted are by first QX our EBITDA to targets year. a EBITDA underlying we benefits the likely profitably and Accordingly, especially outsized long-term we were margin growth. progress will of as representing relative result industry Non-recurring towards

flow to from also and approach quarter. historical cash levels. We Cash the in expect million conversion strong operations EBITDA $XX XXXX was flow to first in generated cash

of exceeded million our by outstanding $XXX balance cash million Our principal debt quarter-end. at $XX

repurchase million during balance remainder cash repurchases share we also of $XX as fully the Our the QX reflects our million $X completed during quarter. of authorization utilized

the Turning updated to for GOV, a $XXX of of marketplace $X.XX EBITDA start million in range GOV we our in $XXX raising million to revenues million. for and adjusted EBITDA now anticipate and $XXX to to million, in the range revenues, of tremendous $XXX We to of are billion XXXX. account range to adjusted each the marketplace billion; $X.XX our guidance outlook, XXXX

contemplates outlook awareness landscape of in potentially updated live for demand intensity across macroeconomic have coupled with weakening we although continued yet events. the any weakening environment, Our a competitive see to

XXXX outlook that QX periods Our challenging reflects comps from benefited previously and postponed in more of lap we also QX the occurrence concerts. the as

product We well-positioned user with sellers growth value. We base have and our we are generation, accelerate vibrant long-term live and cash of ongoing events, very sizable outlook and our see long-term cash superior trajectory to balance, a loyal and data. multiple and build buyers paths for

buyers, in opportunities our sheet ticketing platform that adjacent balance sellers technology internal and ecosystem the and seize have to and TAM-enhancing capabilities synergistic upon of partners. areas leverage or We

evaluate also capital continue to drive We all to shareholder structure our opportunities optimize available long-term returns. to

To to wrap, long-term. robust and exceptional in outperformance, event team serves as which it flow. to quarter and was for growth, testament delivering win see a our an The demand, is cash Back consistent continues industry live Stan. our to profitability ability to the you,

Stan Chia

Seats. XXXX. team It continue of event drive exciting what ticketing the Thanks, accomplish can Vivid we delivered and start a to proud environment quarter at what to long-term excited I'm as we evolves our Larry. was and and truly live about value

and that published In update. like our addition we Governance highlight Environmental, to our exceptional would financial inaugural Social results, I to recently

ESG safety communities, fact investments outlines our commitment sheet to dedication sustainability, in environmental our XXXX to responsibility Our and and security. our including diversity, initiatives, key our our to

committed leadership are Board. and to diverse organization, the combined are team of ethical we and We our decision-making majority across proud

College with grant sending also been Make-A-Wish, we Football NCAA with Day and families College Basketball X. the Final celebrated their children who like We recently and Championship, NCAA events the to have wishes, The working to World Wish partner, XXX life-changing Daytona our

operator, contributions open public to results. look financial delivering while As communities to company, strong a continuing up make for With our questions. that, positive newly we it let's to also forward

Operator

[Operator Instructions].

will come question Citi. from first Bazinet line from of Our the Jason

line is Your open.

Jason Bazinet

wondering sequentially little and quick you questions. we little a And had of deferred ticked and revenue future a about guidance, about you second, implications I driving Thanks. is think increase of then but at that just improve? growth? sort is could since if to about bit context that continues all talk just think down should I in margin talk talk I the your how question you repeat about and in can that balance what's just if was meaningful revenue the of it bit two raised a the orders this strange

Stan Chia

product higher. being I Jason, drives And more started And we're think, respect seeing ensuring look, I that to in shift to off pay almost start to with a basis and and an since deliberate repeat think our lot engagement buyers. that morning of differentiated engage we've we we've I XXXX, fruit been our rates in Good X,XXX users about really to thoughtful us. it's a mix about think Stan. is that investments Yes, with investments talked order as these point in way repeat

a that engagement, we drive So invest pretty of month. We're excited we're this such launching as product seeing that goodness. continue that's in later about to that, free-to-play that and areas lot our

When a the repeat you talked are one profitable new are ability repeat fact think buyers. first is leverage despite to for our us we where significantly element that margins, through new and transaction-profitable the buyer about always more at a versus we look on right, margin I we've on buyers, that buyer incremental certainly drive

product, we to think to with well. I'll continue out long-term story in things. think increased as will expect margin Larry think, our we to profile, through play talk the consumers as we I it continue that with that, punt continue So our we all invest to driving in can And increase those engagement here. We

Lawrence Fey

we grow. to continue the more experience mix the as quickly, have an continued cohort And aging on And this we'll continues run see of a nice forward, improvement repeat Yes. those to annual we shift cohorts the foreseeable to basis we on going room think of for metric each future. focus and on that we'll as because buyer is orders, provide, there's our

accruals. loyalty deferred On that primarily balance, our the reflects revenue

And the utilization be what prepared estimates continued our was quick note in on refinement of a remarks so there the loyalty around on will program.

as was generally see more stable. overall the being in program early you'll that we're since maturation those so phase, And mature But number pretty get that to the still continue really rebalancing. as data, we estimates pretty

Jason Bazinet

Okay, that’s great. you. Thank

Operator

question. One moment next your for

will question line Ralph of Our next Schackart from Blair. William from come the

line Your open. is

Ralph Schackart

sort Can about a question. so saw of you certain to I and Good also color competitive just maybe you more on that? investments, morning in then you talked the can And forward? bit thanks of taking Larry, environment, some provide have a in And the bolt going for the efficiencies of little bit marketing expectations, benefits about on $X and that think in despite QX, I follow-up. you on little talk you the that, letter million about tough to a timing a marketing talked then

Lawrence Fey

it a The element the $X in with as the inverted more that I outperformance more little Yes. Ralph. timing, characterize million the balance the of bit, that I commentary, efficiency. being sustainable was of

think sort how secret apart we'll continue we it's believe and there realm, we sustainable detail performance a we've efficiency fact think in us we to of endemic continue that pretty refine It's to sauce, that, that good saw, And intense there that pretty acknowledged we a to of little a you we're but finding pockets, and marketing got we've competitive as pockets portion efficiency is to where but take environment, exempt efficiency, in done. opportunity I On in a definitely a the think example bit of doesn't we of meaningful from drive is was the of who that I drove. that those continuing drive this always I this are efficiency. quarter some granular that particularly when sustainable

Ralph Schackart

Great. one more, And I if could. just

maybe on you. maybe quarter? competition have Just can to just quarter, this an and the how previous Thank compared may you you the environment, saw that I trends the update, guess on what competitive provide

Stan Chia

Hi Ralph, it's Stan.

competitive seen competitive. If we anything, see when an we consumer that's lessening I of the say of pieces we've to it, think look we distinction. think that more think as resiliency, the activity. a I'd space, is at don't I become has continue important one

drive So here I to of that in think our some to even and it's a testament to efficiency efforts continue environment. our ability

are infrastructure, I drive our is all to drive, heightened and competitive we to with first-party a this our SkyBox of environment, firing ability think at still data, such with together engagement engine, you efficient earnings really I think, a combined things when the platform, in we these in advantages even algorithms, all with that, just our the have look able marketing the profit of manner.

Ralph Schackart

thanks Stan, Larry. thanks Great,

Operator

for One next question. moment your

next of Canaccord. question from comes from Maria line Ripps Our the

is line open. Your

Maria Ripps

my questions and so on taking Great. Thanks for much congrats strong results.

that as sort are elevated, maybe share less of and bit would you notable you prices trading purchase highlight? little expensive then more events? sort I quick environment can on consumers First, a And changes any to discretionary color And consumer spend, macro in ticket consumer seeing have of stay down a behavior you follow-up.

Lawrence Fey

observed, Yes, with I'd consistent prior say quarters. no change

lot robust categories, I change think a that case across we of continue event seeing not-distant that to will very out points. across chatter and to continues but it demand that be acknowledge our that concern future, the the there, we're price there's in

to tone order say, pleasantly really by us supply And with to disconnect, that it match most size On closer calendar. our don't a year of in despite know great robust calendar. we as it, bit to to outlook something a And we of announcements line postponements, that up coming, who coming some continued think to demand recently, a a we calendar. were been has didn't that like dynamic. be has top that of that, played very concert the There's I what I the Drake, the on surprised and it out, are perhaps to continue know bunch and have of up Live folks on see some to the major between average information has they the industry a that, Nation, strong balance lapping I'd that increasing think led little optimism of see did gives who's I'd with event we environment we say, anything, historical we've namely happy supply for Aerosmith, the broadly of levels. if in

Maria Ripps

what that, then And in think helpful. just And should secondly, going can about we drivers strong generation about very cash enabled? cash really conversion, sort maybe That's behind had then, of you forward? QX, key you talk how that

Lawrence Fey

from conversion work, about should capital. speaking are way volume true of offset we to with conversion the by we fluctuations deliver our capital it's that think interest really driven quarter. benefit as working the and volume working the dynamics generation, main you taxes, nice capital last And generally in of cash, expense a and EBITDA seasonal quarter the will beyond step less by so cash uses you where grow. about we as working Yes, have in of partially we cash deliver more really The the month the be

is a month. so strong March And pretty

of than ends because QX on up end QX counterintuitively, perhaps, QX seasonally post-holidays. being slows capital stronger the working down So

strong, ends that, into QX at in as soften will you March because NHL post-NBA of a end and the June playoffs. So bit strength seasonal QX, little saw as we get a

little see you working through a quarter, flow end of which less capital. the So the activity bit at will on the

expense said cash year, be be general we've EBITDA. remaining will redemptions. by of our offset is noise. though, to of of in Speaking Again, cash bit and We'll interest great, This XX% our think XX% taxes. below likely conversion, there's which elements delta level we store in that taxes, most I that to credit our terms the is little generation year a cash true the cash think of historically of our

the net as had in we we XXXX back of the those some items. historical that So noise range, end up pandemic-related should on cleaned of probably bit where after lower range two will a be but be more our

Maria Ripps

much very helpful. that’s Thank very for you Great, the color.

Operator

your next moment for One question.

come from line Benjamin Black of the will question from Deutsche next Bank. Our

is line Your open.

Ishant Goel

the color some adding is growth for fuel the you of possibly how to on on here, Could questions. supply supporting to our strength platform? on the Goel give maybe your This please competitive you is taking Ben. equation Ishant thank side Hi, for SkyBox

Stan Chia

of first repeat question? Sorry, I catch the all part the didn't it. of Can you

Ishant Goel

Yes.

here, your the So strength side give on can fuel supporting of adding some platform? your on you color supply more is equation SkyBox how competitive possibly growth to to the

Stan Chia

Yes, thing. sure

marketing continues selling platform. that sellers I we over algorithms, power more than we such Similarly, entire be continue as the compete us to industry as think, ensure business. And Drive, its now have you the data the about best-in-class professional technologies, the just professional sellers of about deepen on customer to of the develop industry, that to continue means XX% industry-leading we well our of that phase, as XX% represent if to infrastructure. our as as XX% to us think of And elements SkyBox platform community allows they SkyBox to really that think utilize that, through we which for that ERP flows professional when allow we efficiently I acquisition. in power can is with talked for sellers relationship which our beta their then

Ishant Goel

should and AOS think I we On Great, if for one AOS, phasing more, maybe of the how the year? about like balance can. of

Lawrence Fey

annualized speaking, X% Yes, had demand, some so to more a Coming pandemic, inconsistent you bit generally there in out noise in pointed a and we've spike was water as of the to the chop growth. X% supply.

And XXXX, levels. so, typically, I'd relative if there's huge to seasonal our more you distortions a just and normal from look throughout not fluctuation quarter-to-quarter XXXX trending standpoint. at say, there's

where then to is the back the is driven all QX, sort major concerts year. some QX than other single-digit performance usually a AOS. this to low year QX comment, performance volume World disproportionate action, back the sale because to year. remainder would of major sports That's the directional where As for a similar largely is by in regular on quite point season year-over-year pretty anything growth the strong, going prior a baseball being over and or of nothing lower in general Series, has that soft. as we following But amount to of look we're I half usually

Ishant Goel

you thank so great, Okay, much.

Operator

Thank moment for question. One your next you.

Ju Our Suisse. of next question comes Stephen from the line from Credit

open. line is Your

Stephen Ju

Thank Okay. you.

you on disclosed Larry, earlier the on So deck. Stan, order repeat follow-up rate a the

a the talk Baseball events basis in quarterly course up if down Thanks. can of Classic, when how are rate should the may like on lean during and where you actually year around more about acquire or that about think World that major wondering there So to one-off moves we new the you stepping users?

Stan Chia

morning. good Stephen, Hey

the what a of I as across we repeat When think been bit accretive, higher. the highest trend little customers now, whether for in too. of categories are the or across we've categories, concerts. see quarter, to talking sports rates baseball, last they've about we've talked you're engagements to is, And starting it any our at the I they're seen think we each about right repeat continue of the continued investments kind rates that look basketball, to category and point historically,

should you're some into can of Now sports, deeper I differently, we games part of, think, the with to seasonality, for which other bit XX I and maybe think baseball, hey, see you of i.e. expect, when little a some going you as that versus mix there's the categories. go almost cohorts unique see home is

rates excited, And overall, that repeat higher to category step really change you category a remain every repeat in trend see we particular logically, in a continue in rest. single we than have. we the so, and see that function across little But

Stephen Ju

you. Thank

Operator

One moment your next question. for

is RBC Our next from Capital Markets. from of question Logan Reich line

line open. Your is

Logan Reich

this on This guys. Brad Congrats Hey, morning, on Logan good for morning. the is Erickson. results

It guys guide. the year. expense kind think imply talk balance of and included like deleveraging some Can for one the side, would looks how the kind of about on the year? about what's you the you for question the marketing EBITDA guidance guidance margins your balance Just and for in of of just quick the particularly

Lawrence Fey

months Logan. two guidance. our since Yes, thanks It's gave we only full year been

environment and a for happen, would that tailwind to So cautious I softening the assumed. we've macro year the regarding take And level. potential continue some the building balance relative remains thematically, that that are should in at what we the guide of net the a I'd for to be namely, view think macroeconomic consistent; say, not

And make remaining landscape, We I has think, alluded together year, as in we flexible EBITDA wanted margins, to our investments specific as we of which pretty the light sufficient been sure it manner respond we we've of to so. to have the and item flexibility competitive probably possible make salient backdrop. guidance anticipate intense. put more for targeted to a is in balance the as that

so we to we but And and thoughtful flexibility. do as that make did we'll be possible, efficient sure certainly want retain as

Logan Reich

Okay, thank you very much.

Operator

question. One moment next your for

line Thomas question Forte next of Davidson. from the D.A. from comes Our

is open. line Your

Thomas Forte

Hi.

So Stan, then congrats year sports on on compared higher give question follow-up. Larry, factors One emerging or XXXX And that for a result the rate quarter. CAGR? one then, thoughts growth could long-term industry the current your categories CAGR? women's and the in other growth and for you Can to the increase long-term projected can

Stan Chia

Tom, Hey little been Larry to that's a morning. we the unseasonably what this we announced this which think by earlier, particular, When typical year. a been I we've pleasantly little good strength I in some the, at of Yes. bit concert year, and look the surprised year, of this at for think, is point alluded see

in lineup. non-typical the certainly about we that persist if to that excited that we're manner, So a in this I upside year were see think,

given When at leagues of we've larger the category these season. some you more number per look sports looked at categories, a of and games fixed which always as the other

think as really the you look if strength surprised in I and really a kind some the of category. of strong emergence resurgence of also that been FX women's categories with pleasantly at we've or

potential upside long well. a as there's continued categories that in this across and the sports think I then So to there remainder term, of both give see some year, that certainly emerge and we've few us concerts

Thomas Forte

impact you quantify Vivid had for for on Picks how can my And Vivid follow-up, then, a your Seats? Great. CAC has positive

Stan Chia

look number there. when right, month is to vehicle are now at Picks part people Yes. mid and is using where high where our are event, user just Hence, of we users engage they think we've and Look, talk lifecycle a digits. between I and and our one engine marketing nurturing you deployed think free-to-play if our see of Vivid entire is continue a Vivid we stronger the there's entire will I up the what they our cross-users strength product, engagement rising, to platform. in we to our to think unique talked and There's think we now to is, Picks events, engage at the at entries the And Vivid of each, between event, fundamental engagement, between we certainly about in. that where to part were investments as excited event get which our have products, per audience double product average very acquire there of comes about event where users both about the who there, in Picks entries particular the engaging Seats We've than events, of the product. there's the we as to have they really use we Vivid base we uniquely launching which is a any open are time our customer. And

Thomas Forte

Stan. you Thank

Operator

our of Evercore And line comes from Shweta question. Khajuria next next from your for ISI. the moment question One

is open. line Your

Shweta Khajuria

shooting it Stan, my orders on repeat for, percentage do Okay, your go get, thank how XX% a like what have it's taking for and can how where perhaps, you you rates do trending platforms? it high sense of can total orders of that does as where repeat what compare question. a to been you -- is on to up seems competitive year after think industry it now, platform, you Thank year are you.

Stan Chia

can run. where with it I'd Yes. start

I to continue runway right. to increase, see think we for it

as long-term bps, we about excited do medium-term mix high think think But raised today. the that and even X,XXX to impacts order almost of niche it's I we've there's maybe is and we're an the here over think by years, you So past CAC from perspective up. five I think runway as four that, balanced when

us, out there's our drive I think when ways great users opportunity, to that. go multiple acquire there CAC think to with renormalizes, and for a and I

normalize, users certainly might world actual So think higher, well, how trend level then that the excited But certainly a you we're decompose and the of will industry expect, I repeat again repeat see the of about into will. that if products I to I think users you you as orders. I think, if drive of CACs continues mix where in the a rebalancing, the our repeat rates drive rates that

Shweta Khajuria

Any it thanks like Okay, by it sports categories, on sounds even is industry, where or Stan. for sense the higher? is

Stan Chia

Yes.

home I think unique others point, to drive a at I and when yes, nature of perhaps versus there's you you look the have games, just where difference repeats. very that make just so those many think, home sports, games

the I we think pretty strongly we side. competitive I across think our think, our higher in we are trending we grow landscape, the think, to products, invest than on rates look that there as industry perhaps when continue that the feel I index. outperformance should repeat And

Shweta Khajuria

Okay, thanks Stan.

Operator

next One question. your moment for

next will from the come of Our Matt Farrell Sandler. from Piper question line

Your open. line is

Matthew Farrell

Thanks how the wanted advantage of making on also thinking the the still I taking the and near-term? strong amid in competitive on the touch but guys, congrats about you're profitability uncertainty, here macro strong balancing I dynamics consumer you're growth guess environment demand here and sure to results. that

Stan Chia

morning. Good Thanks question. Maybe for you the I'll things. two give

is demonstrated the And the have on executional a are and a we and and quarter the making both. here I to sure in to deliver can margins. I the think we focused, I think we've this sustainable think, business able certainly long-term, technology, the I we growth clearly think that we ability long-term assets build always and, where where drive both

at profits to any, good doesn't to some that when repeat behavior always that's and build going behavior, that questions temporary long-term buy not where I runs volume. investing heightened in gotten think do into And look of where think we're there sustainable repeat out capital base in drive and utilized the ability do higher have seen, way. in. trending I in to we stronger user there and our I just be that's continue I want you out, not really And I it, we And go in we've mix that's call a being then always the how deploying balance manner go out there we've think and capital products bring and to a to that's that. strategy a that, a think or fleeting repeat you've As think I the order look we long-term said and or long-term a we'll think world

that out us side. where can deploy certainly on growth unafraid also inorganically, think we're product them our how to other think, say are we capital. surface the we I'd here, opportunity unafraid behavior, to point side and well, the And efficient that, driving I I depleting drive growth. of a with cash sit to cash-generating And look balance And of of as we're deploy accelerate investments extremely strategic organically and efficient where of our right volume we that see we deploy certainly as affords well, should this in out, the working, opportunity but are we to for we areas that innovation. reserves, others and on a ton perhaps as as repeat any buying are us sheet

Matthew Farrell

ticket offering and then, the XXXX, but course just where that integration potential a the can could And crossover over looking be we opportunity? an further as beyond of the about XXXX as we the you is help one, there free Vivid where is think of follow-up, kind maybe for understand interesting us for Picks

Stan Chia

would about mean, it maybe Yes. I in ways. I think two

a bullish about has user limited think social engagement bit app. to which there. product, we excited do free-to-play remarks, remain certainly talked in that to ability now the our a single to that is our the think from to I we more think that, where being prepared into And about certain be the world in in audiences been about, compliant especially drive engine one ability. have are we for of able standpoint take that the every to now I limited we us little a launch ability I really daily our our is regulatory fantasy And

we social times now is started and the highest from up engagement that, social when positive Our XX competitive set. have sentiment the amongst net we

a we the combined with user that across to got think of standout ways I base is think we've our events. a users in between entirety offering product where free-to-play engage

Lawrence Fey

ground there's think really Matt, information users Yes. the cross-pollinate that, fertile Seats small And Vivid to a to Pick from I experience. user just addition into Vivid

that ticket use to CRM offer. know prizing. you've example, if a a we for you purchased We can So game, to we a cross-pollinate targeted can make

ecosystem you're a in leaderboard-type discounts money, other a the benefiting base if for way prizing Vivid ticket driving you're on but opportunities real will the really where and unique So awards there's be Picks,

Matthew Farrell

thank Alright, you.

Operator

One moment for your next question.

line Raymond James. Our Marok question will come from the of Andrew next from

open. is Your line

Andrew Marok

Hi, could thanks my Two questions. for if I please. taking

I they an happen be, given color like Swift, I First, the past of big a kind equation, high-end the Drakes, into the lockout have? big how around supply guess, MLB in bit a these of there's we concert Taylor as of tours Blink-XXXs. cancellations XXXX, “inorganic of can some the tour the the thinking since side individual of of look like high-end event impact” little the didn't an deal the a think in how in given of XXXX. you've this kind that on and impact some concert in out XQ But

Lawrence Fey

think a we comments I made. others we think perhaps of would Yes, and directionally that have say I portfolio have echo events,

have given year over to even will tends While the quarter, the it month or impacts event a calendars course in of out.

be. proverbial So may other business some that it's not the hit-driven industries

in So think generally, around true spoke to, tour a of last you a GOV potentially X% full-year you're being QX I of if year, headliner. larger

talk directionally, X%-ish you more do are the the in you be about tour Swift, could tour. the on that be GOV. Taylor that moment, bit acts perhaps on a who at one going like headliner probably even may largest But Pink, than to If biggest of

So very, very diversified.

noted, I view our around event was cautious the potential with to then really high pros And to bar in the we've and postponed as with that drive of robust of XXXX go big this acts played be XXXX acts robust a above its above in tours, Taylor of before, to even also Beyoncé, to calendar good exception had referred Blink-XXX. had Drake, tailwinds, names think, will which you dynamic, XXXX But calendar there sufficiently XXXX robust had get had really other guidance calendar. with Swift, the share largest number bar. The why the we growth get been fair of the the and you has taken the a to we as out, huge a it's fairly of on a very have in XXXX.

perhaps refer calendar outlook think in their beyond. And XXXX Nation and high that confident Live continue single-digit I for to we're heard will growth you the sustained think rolling on. I

Andrew Marok

kind which on you as AOS question, Great, hit component an thank orders from you. lapping of going or is well? the that, there postponed you. into impact my XXXX. events led of those And Thank is to to second Is primarily that

Lawrence Fey

I growth we of GOV orders. as reason by what over throughout in to, to and we XX%; the in So meaningfully which alluded something with growth QX, is the think, X% AOS XX% no balance prior the range, growth annualized saw AOS; generally QX, count. driven cycles our X% was of X% we've that was years, will what And from consistent that trajectory to was being with believe diverge seen order balance

Andrew Marok

Great, thank you.

Operator

you. Thank And One the your last from Company. question. question line for Kurnos comes of Dan moment next our Benchmark The from

is line Your open.

Daniel Kurnos

results, Great, thanks, good morning. Really guys. strong

probably one already, they're questions on want of as IPO, been like it's asked the weakest Just of have touched interesting position the that in kind of of the feel Obviously, confidential to dynamic with I group. dig on. two of sort but an filing you've in players already lot a areas

a profitability, have of you're the I proceed rate then or subsequently out of think categories, either across thinking process? Larry, you. don't about for you, with there, sort past; in guys so, seeing think the that if know you'd order in some so aggressive dynamics, we to widening called more either point are start to take sports and about spend their they Why got how in need sort moderate as and Stan And I concerts, you show maybe follow-up at versus of if I don't a which to

Stan Chia

Stan. for morning. question. the Dan, good It's Hey Thanks

certainly think the hear cash I on will side when of potential reporting welcome in the look, versus a think, honestly, can field, of uniform, think, I an really P&L control. focus or is that where think, things, generating entity again, a on our we cash. I terms we that's be we I we differentiation that company And one well-differentiated things transparent burning very yes,

market, something be So stand and I to be I think should that certainly comes what ability hypothetically we to forward think that our look it's out differentiated, to.

in arena to going that or drive we certainly, here. either to as be think And I important where I continue think strategy, and through drive our we've levers we Again, opportunities, think or growth long-term really I see to talked balance about our innovation sheet's investments products. profitability our our

I a think sheet cash are competition to an there's shrinking our think that. deploy I when deploy I balance, we're in environment willing drive that and think the long And we excited with we growth, again, certainly, cash think unafraid see to capital to to certainly do win game to where perhaps opportunity balance an continue to here. disproportionate I

Lawrence Fey

embedded that the think environment, think peculiar profile the in profitability, presume to as I current Dan, I that demonstrate would they in of the dynamic see has need Yes. part reasonably diluting we have are not as today accurate we question, don't that growth-at-all-costs gone important. and your with which it one direct that of is see pretty sustainable metrics so favor say we certainty, generally, are but can and We that behavior. unit predictive, seeing somewhat out our this and economics demonstrating insight, can't we pursue

It's we're period, thing to another deliver on in say, current what pursuing tailwind to It's promise. both when in one we next deliver if it when to the the when unlock, folks we we it in to that's we we volume see year and profitability And the equal will think potential you for and in current have about a talk footing current to shift really excited doing. the period period, so, a margin. we're see benefit and

Daniel Kurnos

marketing strong to push mean really able you Stan, to helpful. earlier super cash off question guys a look, it or And to Got the of I is have outside the are you conversion of this. cash the kind strong alluded spend boatload and a you year. guys and flow-through, QX and given delay in this I generate maybe mean, of that flow-through were on as marketing going really

You're at already, what, net this point. positive cash

deployment, uses capital a at I for of a kind So, head in right? is sheet from is what that in the this of environment just front uncertain than M&A you of or trickier building sort where us of think little an it's of have but always to at your proposition given know have cash this other from mean, opportunities of share some environment, bit I either buyback point balance you. just here, the nice help through other maybe don't

Stan Chia

inorganic shareholder Yes, look that for look for best think industry, at we posture to that anything, say accretive optimize certainly is, think I we our the value I'd that we us deliver see to to continue you'll certainly, and the think drive I if going I organic investments that ways continue structure, sure, that right to aggressively opportunity the have to pursue the both ultimately things surface I should on we to towards ones But most cash, will guess asset capital frame always we it as Dan. generate we're the are the way things. base to that as think can.

sheet to it support So across I'd say certainly dimensions. posture balance a aggressive and all

Daniel Kurnos

Appreciate guys. much Alright, great. Thanks very it.

Operator

for Q&A And Thank Thank ends you. our today's that that, with And call. conference participating. today. session you for concludes this

now great have a day. disconnect. may Everyone You

Vivid Seats (SEAT) 9 May 232023 Q1 Earnings call transcript