Earnings call transcript Q2 2023

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Operator

Good morning. And welcome to the Vivid Seats Second 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 Africk.

Kate Africk

Good morning. Seats XXXX Vivid conference to welcome second earnings quarter call. And Investor Kate Vivid Africk, am Relations Head I of at Seats.

Fey, Joining me Chief Financial Larry Chia, are results Officer. Chief today to Executive discuss Officer; Vivid’s Stan and

access have we website Relations well page the which this as should everyone earnings earlier investors.vividseats.com. now, to second are press released release, quarter press The Seats Investor slides of at our morning. supplemental Vivid release, earnings as on By available

within uncertainties, statements meaning call, are earnings management described filings may securities SEC. other the These of in with and During of laws. forward-looking federal course today’s subject make to including our the forward-looking statements the release risks press and those

non-GAAP investors. call, information refer On we financial and to that will adjusted provide for EBITDA useful which our today’s adjusted measures are EBITDA margin,

will slides historical a margin release, their corresponding and of earnings SEC measures EBITDA and supplemental filings. to adjusted press find You our in GAAP earnings adjusted EBITDA reconciliation

And call now I would Stan. the to over like to turn

Stan Chia

morning, increasing share our strong you Good continued increased as to you. quarter investments results XXXX growth profitability, am second sentiment. On by and our consumer for today. with I drive and everyone, demonstrated have joining of strong repeat excited excellent us rates to thank top brand affinity and

our in Larry agreement We who further through secondary turn to into I expansion from walk Then ticketing the these have unique differentiate through the will acquire each of and exciting developments marketplace Japan. yesterday, highlights financials also that the announced after more walking address in entered I into Wavedash, our outlook will it detail. and planned Asia-Pacific definitive will into quarter. strategic our a just partnerships to several leading accretive entering we platform. And region,

and first million GOV, revenues Building quarter, in $XXX million generating also higher another higher QX, delivered of XXX quarter year-over-year. million EBITDA, XX% year-over-year. marketplace of delivered $XX adjusted we on yet We record stellar a

to are half, brand second outstanding on sides product guidance to first strengthen the XXXX both With continue our to invest cultivate While of we loyal our raising our and the we an in time. for marketplace. users performance

record categories Swift clear consumers event across demand but it After continue and the another widespread experiences. GOV, out. to Tour live performers, and strength Demand complete was with Taylor quarter of prioritize stands Eras fandom unprecedented is breaking

Furthermore, a number and tours window Aerosmith upside of contributed in typical as of the to additional large announced were such quarter. the outside

Beyond for tailwinds the we industry should come. trends are that to provide live years robust strong seeing to demand in are and secular XXXX, the events for

that targeted our This rewards, more differentiated industry. strength, industry-leading awareness strategic that brand Vivid program rewards our platform offers capture for buy, and marketing us. and buyers loyal unique fan our the for a of by foster the win-win Seats our campaigns To in experience is Rewards, only they fans more underpinned

enthusiasts, accumulate Seats complete that event their live purchases for value more back rewards favorite the compelling to to events. frequent drive them live For to Vivid tickets

The value much free is more the program XXth ticket. so our than of loyalty

rewarding perks with the fans like and with our users, upgrades differentiating are We experiences event more truly surprise itself unique exclusive live even value. experience for

One differentiation, drive partnerships and experiences premium targeted affinity brand while and also is teams. both way partnerships, are awareness with high craft unique these that multifaceted with sports accomplishing Through that audiences. through value we increasing we professional brand

focus this strategy updates exciting on League to Major Two Baseball teams.

marketplace ticket of official Dodgers. Los the now is Seats the Angeles Vivid First,

complimentary Vivid available seating. food and options to partnership, such offer Seats have fans this beverage Vivid access areas are as fans Vivid premium Seats newly and and the Speakeasy craft exclusively now Dodgers on As and Seats. experiences luxury will and branded experiential part perks, These of Elite Seats cocktail,

prominently Seats throw club display the the This our will level pitch club the to opportunities thousands fans opportunity for will to also of to partnership the Rockies. before marketplace each consumer feature have elevate select the Colorado Seats once-in-a-lifetime offering official of fans naming Vivid Selected first Second, the rights experience year. and ticket season. throughout we hundreds games brand the Vivid are extensive now at level,

list teams, In Baseball addition team we to have League also Major Football expanded National of our League partners.

San existing partnership Angeles to the our Colts, proud Cleveland Browns roster Southern experiences most the Indianapolis access Joining with in enabling excited unique the partner the XXers, of sports, fans of to we are California one and Los Francisco return and seeking fans become complete repeat visits team to Stadium, as expect experience. Chargers DJ from Vivid rates the Ultimately, such be with a Perch elevated partnerships as Seats suites an we accretive Legends. surprise at to to SoFi private these chargers,

their excited in ways September. are we favorite PayPal continue look starting partnership offer integrating to additional options Later more payment as we to with We flexibility on to fans consumers Pay to now to as new partnering focus them attend continue Lastly, forward easier for events. it this for and even to look by make

through all whether partnerships are As and designed initiatives, brand cultivate our for strategic channels discussed, have platform. marketing our we affinity to of awareness targeted or lasting

working. show that this is Our results

two highs proud highly are Since getting XXth key our repeat moment a free more journey. and ago, Refresh repeat buyers ticket, then their in share Loyal in just and our platform new to accretive their reached our years more QX. to we that loyalty program to on loyalty are rates are repeat margins buyers

tickets fully free-to-play with for product now announced fans future are strong product or first we very challenges With credits as play engagement. Center, is to available Game Center showing branded quarter, purchases. within Last daily these events are Seats of the live Vivid The and winners and users ticket rewarded Game our free App. contests

proud of innovating increasing our are fans Center products, and players rewarding Game unique which over the purchases. in XX mid-June, first example all we our in soft days. already engagement XX,XXX we in between launching while are differentiating yet to and ways have is another Since product ticket accumulated the

sellers. focus Our our to is innovate on of on also continuing behalf

progress is of choice of new continues further give majority best-in-class and the as onboard our beta and increase later as to full ERP continuing we a our launch are ignite in already platform. Skybox users of technology. phase to Skybox ERP towards to through sellers Drive access professional are sellers number year. the them we industry-leading to excited looking the the and differentiate for move and is excitement we Our Skybox beta to tools we

to Next, Wavedash. I planned acquisition will of turn our

both are our Japanese network $XX growing large compelling. ended EBITDA We expanding Wavedash by accretive with a supported technology and and approximately year million compliance of market-leading XX, internationally the capabilities, leader margins, financially XXXX, customer excited strategically during by with March and acquisition last in Wavedash robust of is to and is ticketing fiscal grow with its the market revenue TAM business. the secondary a

of close We balance quarter, cash. the the approximately $XX sheet utilizing third expect to million transaction in

We strong sheet TAM organically expanding ongoing opportunities are inorganically. and balance both that well with a generation enable will and accretive other cash and us seize equipped to

our loyalty and expand next. forefront to and we strong in footprint while our in innovating we cash which principles, flow, As internationally, to our are growth, strong cultivating what’s core of be grounded the remain marketplace profitability drive strong on

faster. have links makes first this the the live experience fans to which month. Another for industry recent this last generative AI and that event launch innovation our purchase. plug-in more for discovery announced OpenAI’s website we all easier live of plug-in chatbot, questions events event their ticket After An exciting, shopping of just example answered ChatGPT, first, the this is by

QX quarter Seats business. financial partnerships our conclude, investments with To our and strong for that with an results momentum was XXXX strategic differentiate exciting Vivid continued marketplace and stacked further for support

Larry. over to With will that, it turn I

Larry Fey

Stan. Thanks,

and quarter second total marketplace X% X%. year-over-year XXXX Our $XXX with GOV increased million increasing XX% of order average year-over-year, size orders increasing marketplace

robust led U.S. second marketplace growth Tour, Our QX by saw Taylor Swift’s the continued calendar Eras supporting GOV quarter PAM double-digit category, event We strength a reflects demand. and in concert strength against particular record a XXXX. in

growth. XX% quarter of second million increased $XXX by revenues driven Our year-over-year, GOV XXXX marketplace

due QX in take an historical increase rate strategic select below decisions. was Our levels coupled with accruals, targeted XX.X%, pricing loyalty to

Vivid forward, we take take be brings than therefore, our lower XX.X%. and expect As we, to rate Wavedash roughly Seats go rate a

a to solid than take profitability EBITDA despite quarter, We $XX in second the million of normal converting generated adjusted lower GOV rate.

incremental to see continue are investing such marketing attractive and and campaigns. in as partnerships channels, We accretive returns influencer

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

of our strong of the cash and we approximately is utilize of and opportunities Wavedash a will sheet of as a strategic clear acquisition flow example result $XX pursue balance planned profile. million are Our cash able to

Turning to our updated outlook for XXXX.

from for while months We the performance are to in of estimated guidance four strong Wavedash. the raising our of account contribution including half first an year,

the the to now $XXX of range to billion, EBITDA XXXX $XXX in billion $XXX and adjusted $XXX revenues in GOV range $X.X million to marketplace of range of We anticipate the million million million. in $X.X

contribution our in It year but for first tour to Tour positive proven results half XXXX our or to weighted normal from than due significant single first full Taylor be is We Eras more expect the a to the has move outlier. half be will abnormal needle for a event results, Swift. the

strength will encouraging includes high-value influencers can guidance. these partnerships, This is that customers. of reflected select strategic investments long-term our an marketing proposition Accordingly, we rates. continued EBITDA believe value customers channels while use to in compelling efforts, brand With announced additional and are leaning from our results industry marketing we along returns. into drive recently with our believe drive increasing additional repeat our differentiated We supporting adjusted to share investment incremental

XXXX. industry expect the This GOV demand we and has a continued in proven as anticipated strength that overly such EBITDA digestion again. originally once EBITDA with has widespread view event and double-digit We growth in GOV adjusted in adjusted for conservative flat supply and live year now

half. and To an quarter excellent was strong first wrap, it another

excited business. our complement We integrate are growing to highly and Wavedash and profitable differentiated,

to you, Stan. Back

Stan Chia

that to of am Thanks, I proud continues Larry. results deliver. team our strong the

continued repeat and Skybox our stickiness Our higher adoption. marketplace, and long-term build with sides to rates of and to team’s efforts products differentiated buyer have valuable drive on continuing both innovation seller

robust flow, growth, execution cash opportunities and long-term shareholder profitability us and drive driven Wavedash, ultimately, disciplined accretive such Our has pursue returns. as to enabling

it for open With let’s that, Operator, questions. up

Operator

Blair. Thank comes from with you. first line [Operator Schackart Instructions] Ralph William of the Our question

Your line now is open.

Ralph Schackart

question. for Thanks taking morning. Good the

some if maybe what and on may opportunity just Japanese attracted TAM the that market out question, you going maybe on Wavedash, overall international provide could this First expansion please, is your perspective, you opportunity, to forward? first the broaden

Stan Chia

the appeal market growth, and Yeah. are favorable able in we an with -- expansion at in have a the Hey. for of strength well think, as to Wavedash been we question. as of for Thanks profitable, we both as looking, leader, were opportunities TAM in I favorable been there. assessing, we terms always and industry against being I really the share for the was have landscape asset Good enter think, the Again, morning, looking Ralph. what strong

we as was in we backdrop I when international think our as the where we is allow an of strong way going continue aggressive begin some sheet and find think, look, where us is think to to to opportunities the efforts balance be future. look our learn excellent so such Wavedash I to favorable for us can I to

Ralph Schackart

follow-up. Maybe during Stan. the just Seats environment, of sort can Perfect, you positioning the of to dynamic? Maybe just trended you. a sort quarter competitive within and that the how Vivid speak competitive Thank

Stan Chia

driving Sure. Seats, continues days. new drive high that’s repeat in Game the in the Look, stable strong pressure, I of on to in XX program, users platform, whether are Center now we Vivid competitive innovation loyalty what focused but platform, see XX,XXX continued whether have to our well yield that’s the think, we as as in is really results our really, through rates, first the which we and combination engagement that over

I got lot we do think And focus are both driving and the really innovation on platform think short- believe call launched that. in as lot experiential what have a differentiators think, to I great long-term. also, continue in Chargers, real going a Dodgers, of partnerships the with and Rockies got you we us the are that value is during this with long-term that announced, to the see we We have we great have with of we the

Ralph Schackart

Thanks, Great. Stan.

Operator

moment One for our next question.

Curt question next Nagle, of comes of Bank America. line from Our the

now Your line open. is

Curt Nagle

year I the back very, the one, right, an question. mean, one, taking of why guess I little the not two for Thanks strong more, bit a quarters. half morning. raise obvious first the very Yes. Good maybe

We far like Nation have like the I are in couple got years. you can now. in the four sounded I on look guys outlook demand. Wavedash as are next any know see let-up months of But there’s just they more the typically as Live positive for of conservative.

into going -- from be just why conservatism, aside raise and why So like what’s not not basic a bit the little more? outlook up

Larry Fey

Yeah. Hey, Curt.

the year. for we of particularly the visibility quarters, as Certainly, continued calendar. forward we So on the have what I tried think balance we believe concert move reflect to have we the through the healthy is the balance outlook year, of increasing

for all year that resets on and shift the next into the And wait QX as sales. we so

year But Taylor I’d I say, drove is unique what what’s the think some this in weighting particular, Swift.

generally I think performer. event, no we say single single would no

demonstrable our We have aggregate impact or results. will a meaningful on

don’t I that this for true think would year. be a

steal just was passion can right? When you videos excitement it you think and just phenomenon the and it I outlier that see the fans, from her an the the was,

ends the with state last And next week L.A. in week this or that year tour for our this shows in

And there’s gap that to we a Swift so out. that fill Taylor are in balances assuming numbers, essentially, and bit a without of the

the Not one wanted half we sure plausible to Taylor make we to that not performing the and opportunity, will in not of but say that Swift she year. it’s that more only there’s there’s back that reflected be

Curt Nagle

just then follow-up, as quick And enough. take Fair a Larry, rate. just Okay.

drivers understand I this for quarter. So

you reasonable rate be would XQ XQ? think the of said rate and a go-forward that for I XX.X%,

Larry Fey

I number that’s think yeah, basis we not a forward. And points points usual -- going is basis that a caveat, XX good smart. or are XX my

some we revolve should So around. I you modulation, time, think that’s will a midpoint over good see that but

Curt Nagle

Thanks very Okay. much.

Operator

One question. next our moment for

comes with Our Stanley. Cameron Morgan from next question Mansson-Perrone

open. now is line Your

Cameron Mansson-Perrone

payments Hey. assuming assuming am taking an expectations on to Q business the questions. to going there on back of One the there’s resale I liability, of with the am Taylor the happen any think, that the advantage through I but expected the also be also in TRA really here to Thanks Swift, in growth regard strong the And resale then for says, is business. I that XXXX. XQ. year? one the the half

Just think be that one Thanks. on, now? multiple that is going -- flow modeling lump will just that to any about kind how will color to will be that of statement, payments through for just

Stan Chia

is for TRA. I wouldn’t the for great I anything Stan. Cameron, one put different the the there. the But expect really we then we in It’s see Where talked you resale pass a Cameron. and Larry have R&D always center Hey, as take first will quarter. to about, what than us. forth fluctuations

the they versus in represent think, else. I fluctuations anything industry more

in year. So seeing that’s into what you I anything are read the strength just the half than industry wouldn’t first more of

Cameron Mansson-Perrone

Got it.

Larry Fey

And the then we income are and sheet amount the at in instead, and amounts we that amount tax. then on The are savings, of taking sharing XX% TRA benefit. our our of balance we on risk those already federal reflective restating owe are is things we paying thus that of And them that the known. with retain will that holders not TRA

quirk is An payment a would after outflows obligation cash I think the there is a so generally incremental them the of year generated. being and in that year is delay is

a have quarterly the we the you rolling will have later, going actually money year tax so and rolling obligations out door. And then will

Cameron Mansson-Perrone

Got it. That’s guys. Thanks, helpful.

Operator

our for moment One next question.

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

Your open. line is now

Stephen Ju

Great. Thank you.

businesses outside it Stan, multiple has So, does a question tickets. Wavedash. It follow-up like on look just

here, more maybe us the Thank core are on you things environment think more that -- will what that’s same secondarily, And from with distant can United you business? probably you do the do your the in or So market it’s comment a ticketing here early as you. different the one States? about the but bit Japanese what tell to

Stan Chia

for Thanks question. Hey, Stephen. Yeah. the

landscape, can was focus I we and it where obviously business broader international ways I think, where we I what look into certainly really do I about to one looked leverage exciting. are and the our core excited we well first learn, Wavedash asset, think the i.e., mean, can we we when -- for at we on a continue

we there leverage but are to the as see vice side it, do business avenues, more. we on other there, ticketing other again, yeah, are you to things few of else focused potentially components, So, little learn are that that about what would on, but laser really are potentially I to the excited I we and see think, that a we and the a do over of core there learn going those versa say, business can focused where bit well our here us we things

As booming it world. are broadly, around about, Japanese pertains I live also to think that is the think, one, excited are right? I market the we events

Japan to no think I is exception that.

larger was hone more to we a think organization. our with be backdrop there favorable what learn for go other saw leader and launching international knowledge potentially a we where to a that in I point we our and and a as as markets could market use develop processes continue off

Larry Fey

And add Stephen, the small businesses, company’s revenue. just sum them up to to of of things. three XX% One, two about the other the

ticketing vast business. majority core the is the So

So very alignment. that we are excited about

I difference Japanese bit are and American other The sports is out that, the less just North market popular there. over between call might little a

I our the terms of America professional think number global North many the is ways passion leader for in of sports, in sports.

slightly here. market that So will in you will a heavier weighting see concert that teeter you see

Stephen Ju

Thank you.

Operator

for moment our question. One next

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

is now open. line Your

Maria Ripps

Great. questions. taking Good Thanks for morning. my

should appetite how your be likely are relates And share you First any the acquisition your are synergies that? end further on assume the as on what this on thoughts interpret color can it on on potential any here? expense those Is expansion? investors to Wavedash, side to or fair it that to back international for

Stan Chia

Maria. Hi, Yeah.

Maria Ripps

Hi.

Stan Chia

always I found Wavedash, right at a have profitable. and launch be accretive folks think the for going to And for we to the is opportunity with us to interpreted expand. great for think, that looked internationally thing an we certainly, as lookout are I on is, we again, asset ways

move either do that. inorganically are think landscape, find strength, organically in look backdrop we I think, favorable going a anytime can we we the I I broader as so with think to at And where we or

to and closing on towards learn move expect where be you certainly I to more the us think, certainly, as we excited can the for synergies we question, think we deal. managing opportunities. are to both front-end back-end But, continue see I

Maria Ripps

easing leveraging could secondly, And think seen investing and Got in helpful. advertisers AI in relatedly, or on you have competitive for of investing increasingly pressures very advertising AI touch the to it. gains many And further optimize room kind any the Do whether leveraging then, by That’s the you on you just side? then brands any their marketing are mix. you have maybe tools side? on marketing on efficiency

Stan Chia

start. I will

AI the forefront, the at think opportunity there. are I certainly, of all we that’s

I we of would science lot proprietary advanced data already, is in a do that algorithms particular. and think what in our some I marketing say, embedded much powering of

I think days whether will we in the partnership opportunities share, our there, to that’s with looking ChatGPT, have at we to we whether we are are I forefront, the on marketing early always excited new to happy self-develop AI on be But think that’s anything side. be if OpenAI in and to.

front to look aggressive efficient really well. continue as to We marketing on be ways for the and

Larry Fey

generally Relative Yeah. On stable. environment, competitive may rate we competitive intensity. to a characterize think I is what peak would word the as

we think normal more or has a went maybe come particularly that of two competitor within referenced, normal I outside ranges. year, back I’d say balance. the perhaps, last QX

I is So stable in the would -- players I particularly think space. amongst this larger level a the

of operations the the continue still cracked the question a to you code on when if haven’t broken or quite there’s in XX sustainable are indicative just for being perhaps a unsustainable some of and is think a on folks profitable, that’s model. I this I level and think, XX of haven’t your barrier profitability reiterate very that open

Maria Ripps

Great. much for Thanks the color. so

Operator

One question. moment next for our

with from next Erickson Our question Brad comes RBC.

now line Your is open.

Logan Reich

quarter in you baking the Brad. slowdown Logan for Good macro sort mentioned, This guide, think, the were a is had full on of Last some for I year. the morning. taking for guys on Hey. question. full-year Thanks you

in seen maybe guys expectation past you to the any Just there the just to and in on full to sustainable of see side what there’s update then, to back if half wanted levels, just your I have quarter. advertising year? are any given normalizing your additionally, And pressures comment further for where of the thinking given this those year. Thanks. competitive the

Larry Fey

Yeah.

point. think I macro the on

five much in bit the One, seven the pushed of with same year. I think, in things have both months think of on terms removes in impact remaining, of in projecting a direction months balance the as I fair only the the knowing seven months speculation. now XX, and two not answer

think, macroeconomists versus at our with balance the that the has I in be part, talks to with hard beginning second it more feel are to do outlook say landing would about macro and the of we our like was landing is we view on pretty then the stable soft general And the relative so of certainly I But improved guidance. not where to controversial the year the mood play intending precision. year, for is think the

degradation are forecasting quicker a sudden not We in macro.

we degree the awareness keep continue I XXXX eye concern an as our we But I that evaluate sentiment, that to evolves, around future market how think to slowdown. on and of with will think, have but sentiment concern prepare current softening. still we be outlook some would possible does is appear to continue there

-- to competitive QX, I obvious going obvious to and in happen, to why shift in near would reasons QX not that I there’s end the relative be pivot we competitors the adjust no meaningful it that On and precisely able what for we wouldn’t we not question, the no to But don’t to back would shift a quarter been the see be seen happen to we any won’t in seeing reason explain. subsequent and reason maybe certainly have it half expect behavior have say to believe have yeah, future.

Logan Reich

Okay. Thanks.

Operator

for our moment One next question.

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

Your now open. line is

Thomas Forte

Great.

congrats and the on Stan quarter. Larry, So,

me. question one for Just

drastic rate the to outside about total with representing market U.S? and and the your growth for international can market inside international So secondary you foray, Wavedash first addressable talk the compared

Larry Fey

Yeah.

approximates ticketing the countries you little that bit into own will in Obviously, international aggregate. I we aggregate, would of North market, their considerations. individual market in estimate maybe have ticketing American each that decompose to think, smaller the cultural need a total then roughly

U.S. out it’s as the simple piecemeal. addressable a you will bit It need more quite your as market. think double So entering be and don’t I

perhaps, I slightly rates as positive But, overall, been view international a you concert slightly we that theater similar, think the would that at heavier has growth a SKU. contemplate

think heavier stronger I sports just the sports concerts think, and than to, I in is on that and to slight can of opportunity. number others, somewhat American growth countries is be North overall as tailwind going pointed a international of Japan reflective where waiting be a for we

Thomas Forte

Larry. Thanks,

Operator

for moment next One our question.

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

Your line is now open.

Matt Farrell

My thinking impact is guys. Thanks, just beyond an the to back willing impact maybe year of and student repayments live in as loan a how bit this just of those one a that guide of guess little on you headwind coming on consumers I just repayments the as spend do are first maybe back XXXX? see events is about up, broadly up that QX. in thinking the you coming

Stan Chia

Hey, Matt.

I the to is backdrop. -- resiliency the in we consumer especially just think what on continue macro see against of here the against strength demand

seen there factor to and continue that will accordingly, would that any but to about cause anything certainly how think trends haven’t differently. that we in think that see we I So us

Matt Farrell

we of the And has performing into engagement a to Picks season, DFS question, then should for couple of thinking how how about Thanks. head tends year? which trends been football my we and time maybe Vivid over the be second months last heavier be as

Stan Chia

Sure. Yeah.

are platform. we about as a that think I excited

see to daily I our entries month. as we month-over-month, we active continue to continue -- high growth for see we double-digit Picks, per think on users, continue user Vivid

that to continue we engagement there. So see

game take that and that as center we engine we equally think exciting, I into platform. And move our

and to really user So on methods their ecosystem, to have those now and we our growing engage consumers channels to remain acquisition business. across through ubiquitously continue we bullish and with see value growing long-term app the which engagement

Operator

next for moment question. our One

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

now Your open. is line

Andrew Marok

Thanks for taking my questions.

little that Given conservative, XXXX cognizant digestion does year move thought that ended that and formally a off being to that in you a guiding that proving this does point? originally obviously, are the its impact take up out or maybe for XXXX was XXXX table reduce expectation for the prospect the not at bit, for digestion or

Larry Fey

Yeah. Thanks, Andrew. Yeah.

think, benefit As concern hindsight, our the or conservative, demand you the spending event surprise. much I pent-up premise pleasant to the around overly digestion and noted, proved of

As year, general for the next have we to which happy look this think, industry year, exception recurring some fortunately, next to Taylor we we long-term hold, the forward growth reason we report, Swift of perhaps announced trajectory she some shows. are the that our will with I believe no aforementioned year this have to wouldn’t benefit benefit year since

But than she had smaller certainly a year. footprint this

So reduction a relative perhaps of size strong a feels will be think, I net slight otherwise it and it’s that be tour, secular that to trend. will given headwind a what the like really

with we past practice, to look Live consistent And Nation commentary.

trend. to on commentary have the forward continue consistent think not calendar steady I they is we and that transient best hear insight bullish that this a and secular

Andrew Marok

Got it.

off. shake Taylor it Understood. So helped you

Stan Chia

Yeah.

Andrew Marok

constrained. for to what that for markets the are But secondary some looking not ticketing of For done have League maybe and that for of really ticketing big would more of you lately, Premier with Japanese opportunities side into where maybe other to follow-up leagues you are expansion, better me that a them. thing be the countries sports secondary specific some a or lately. I bit a the am thinking like isn’t little highlight

Stan Chia

Yeah. Hey, Andrew. It’s Stan. Yeah.

think I -- our so opportunity, and when is think, so I look oyster think, have markets. you look literally the the think we I world think, I I we versus, giving at specific here international, for

us where regulatory a opportunity either is certainly markets and are I a criteria in we supply organically a And favorable think, for I move to where to and favorable the opportunity. environment demand are favorable right? look for going think there’s there then inorganically, that where there’s

look look our will criteria think, to certainly at opportunities able think and sheet those are and things, continue both and platform evaluated to the we to we be balance assess, as So organically arise. for I things meet inorganically world, those will again, I that as do criteria the have and the we when

Andrew Marok

Thank Appreciate the color. much. you very

Operator

for question. One next our moment

of next Dan of the line Our from Benchmark comes Kurnos Company. question

open. now is line Your

Dan Kurnos

back going to Nice Great. quarter, Stan, marketing Thanks. Good the guys, question. mix morning. Maybe, just obviously.

checks pressures obviously little spend the not most less have quarter. take with of more was a sports concert And that sports marketing the Our suggest side maybe overall announced from and strategic you I think anticipated partnerships rate we the in bit coming the teams. than

just or So about of take or performance-based competitive maybe on going promotional differentiate what’s on to you marketplace in continue more desire even with kind talk rate brand spend can environment? the activity pure spend rather than your to given or spend

Stan Chia

Hey, Sure. Yeah. Dan. Yeah.

opportunities excited have we great on found, think, I think to partnership are I the front.

reference. frame I maybe think, I will for

perhaps looked think just and always difficult thing at on. value we as raw being brand have a I measure drive to spend

we we So well investments do our as yield I high that will differentiated always as for value audiences, towards consumers. looked think drive targeting experiences at have how

as So digital at in you our we there. look what both do mix

I be high continue to value audiences. programmatically we buying towards intelligently think

with which branded in have our areas special the Vivid then on look you that Dodgers the with partnership fully accessible DJ the think, season, fully drinks drinks, especially side, football got on custom playing where, will Seats unique again, at Vivid and Speakeasy, And when whether or it’s have food with go a the ones this today, where Seats. we the I section Chargers, that’s we only and announced acquired

that at I marketing invest one look the our staying really investments differentiating has and our long-term think towards guiding that’s frontier. platform, power we to what’s opportunity we on the really those the on is where think hands and are areas viability

Dan Kurnos

deals in do those and up about think fan-to-fan you pick of in you do deals? economics -- any that how those And

Stan Chia

your last Sorry, hear I of the didn’t question. part Dan,

Dan Kurnos

able was any fan-to-fan to just of market I if any are these penetrate deals. with of curious you the

Stan Chia

got I it. Yeah.

think, how everything, at investments, be than horizon look us terms don’t elements. the of believe that going we a judicious value we quite those of to I But I over when we is When horizon, life goodness. we we I look at are long-term horizon the to on of an longer immediate acquisition customer’s think I performance the we at marketing and think, only of have certainly, we the some period customer look infinite with cycle. as in deals more think, certainly, have assess partnership

prospects the are at inside, fan-to-fan of certainly that partnership potentially with we we broadening we certainly that. I will about our look think, teams component When the of that drive look excited as business at

I how extent prospects through this we about are the that we will the course in we are working growing certainly that the with. ability it the and what of they drive partnership to teams with think the but is I of much period, think excited assess

Dan Kurnos

Got check it. suggests quick more just price. that for mean on it’s Super helpful. order And the volume guide. than been just Larry, the housekeeping I

has the healthy. So price super been

mean, half both you see So digestion on back talked similar kind about a price of the of outpacing normalized but think really I thoughts we what on them levels? occurring, lot slightly the just more not the orders with you should of as have of year, above would

Larry Fey

Yeah.

AOS this orders X%. about at look X%, up you quarter if think I up about

So noted. strength you across both, as

X% it’s AOS at our does caveat look if trajectory, be precise and out you to quarter. a play always think I with our given annualized X% historically tough really to CAGR in present that

X%, the to X% less and put than aggregate X% in on think, margin, the bit higher the on half, normal guide to But to bit little we our numbers. I help, see a that, continue a helps right? so I little perhaps, back price in would So

--if seeing think pretty from there’s that which the CAGR, tell think solid a price and something that indicates I amount very supply meaningfully would demand it out demand long-term and I about supply either and then mismatch we the there. the between alignment you direction it of moving in you saw consistent, are

on they feel to sort some continue up good of in move we locked the So that change will and directionally environment.

Dan Kurnos

space Keep double consistently think, raising and prices, that a there is Larry, I there. primary still

I So Really guys. the for appreciate Thanks color, what you it. are that’s saying. think

Operator

moment for question. next our One

Jason Our of Citi. line with question Bazinet the from next comes

now line Your open. is

Jason Bazinet

this council quick had loyalty focus a the analyze you or loyalty the program. Maybe program? on traction you question is a investment the on the What should Larry. in for question assess are guys that metrics getting would terms to just of that I give they community on

Larry Fey

be will Yeah. Certainly, the helpful annual towards most shift albeit on continued an repeat on that hopeful annual basis, think, cadence I orders. an

So customers. from of from XXs the high we repeat about to coming talked orders improvements XX%

be think getting coming our time up and into the that increase to traction move will are number we ecosystem -- to with the continue and magnitude I that in ecosystem. folks will I we reflective expect of of staying over our think

the brand that a you we on leverage to longer and start ultimately, were investments loyalty than take have shift Would drives more slightly if what Yeah, I the horizon, made. think, return is operating marketing you long-term the time precise that and think we to get that?

Jason Bazinet

Yeah.

Larry Fey

Oh! Sorry. Go ahead.

Jason Bazinet

Yeah. No. No. Go ahead.

Larry Fey

Okay.

Sorry.

it’s thinking we very right, none precise, at look because say the other As experience with difficult to precision. improved Person are I’d Vivid of or or understand more from because better of our Picks perfect, are from audience them metrics we better value because awareness being targeting. our the that because about our internally. start of or of high partnerships repeat loyalty from there engagement

be so ready We to ROI and we alone an and are that we other regard. will would we the feel impact. tends rate generally well loyalty But to substantiate repeat aggregate like the looking really in program know, never any from be benefit are it trending on

Jason Bazinet

Is should the expenses a if even right percent parallel, come think it? to the in right way about your that down metric of take then revenue that down the as is sales rate marketing and comes

Larry Fey

Yeah.

exactly I think that’s right.

Over alongside profile the the we Seats, are to investments back made brand the and then the program I adding post-pandemic compare term, pre-pandemic intermediate some big Vivid that. and investment if loyalty of step

those ROI. think we six-year I call are, to full investments we it, four-year, believe five-year, get to said

into are half, We years cycle. that a and a year now two

place all is believe but to the seeing are to and right I think you to want think fully ROI that of going you in are see will ultimately to the And the we deliver, so yet positive would we marketing there are I efficiency. get trends we not

Jason Bazinet

Okay. Thank you.

Operator

for you questions does showing the today’s no am time. all I this conference. Thank program. your in This further participation conclude at

You may now disconnect.

Vivid Seats (SEAT) 8 Aug 232023 Q2 Earnings call transcript