Q2 2022 Vivid Seats Inc Earnings Call
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Good day and thank you for standing by. Welcome to the Vivid Seed Second Quarter 2022 Earnings Conference call. At this time all participants are in a listen-only mode. After this figure's presentation there will be a question and answer session. To ask a question during the session you need to press star 1-1 on your telephone. Please be advised that today's conference is being recorded. I would like to hand the conference over to the speaker today, Kate Copples. Please go ahead. Thank you.
Good morning. Good morning, everyone.
Welcome to Vividbeat's 2nd Quarter 2022 Earnings Conference Call. I am Kate Koppels, Head of Investor Relations at Vividbeat.
Joining me today to discuss VividSeats results are Stan Chia, Chief Executive Officer, and Larry Fay, Chief Financial Officer.
By now, everyone should have access to the company's second quarter earnings press release filed earlier this morning. We have also provided supplemental earnings slides.
The press release and earnings slides are available on the Investor Relations page of VisitSeats website at investors.visits.com.
During the course of this call, management may make forward-looking statements within the meaning of federal securities laws.
These forward-looking statements are subject to the risks and uncertainties as described in the company's earnings press release and other filings with the SEC.
On today's call, we will refer to adjusted EBITDA and adjusted EBITDA margins, which are non-GAAP financial measures that we believe provide useful information for our investors.
You will find a historical reconciliation of adjusted EBITDA and adjusted EBITDA margin to the corresponding GAAP measure in the Earnings Press Release, Supplemental Earnings Slides, and SEC Findlings. emphasize, four categories, B
And now, I would like to turn the call over to Stan.
Good morning everyone and thank you for joining us today. I'm pleased to share our exceptional second quarter 2022 results with you.
We achieved our highest second quarter Marketplace GOV to date, driven by achieving our highest Marketplace orders ever, Q2 or otherwise.
These results exceeded both internal and external expectations and built upon our already strong track record as a public company that continues to deliver on innovation, growth, and profitability.
Consistent with the last several quarters, we believe our results demonstrate the strength of our business model and the tailwinds for live events, including the ongoing shift of consumer spending from products to services and of course experiences.
We continue to make progress across key strategic initiatives throughout the quarter, which I'll update you on today, before turning it over to Larry to share our financial results in detail.
To begin with, I'd like to provide an exciting update on our product efforts.
Since acquiring daily fantasy sports at VETCHA in December of last year,
One of our key initiatives was the accelerated integration of our products and brand to cultivate engagement across categories.
Today, I'm proud to announce the integration of Betscha and its rebrand to VividPix.
VividPix will combine everything users love about Becha with the ticketing ecommerce capabilities of VividPix, creating the ultimate entertainment shopping experience for sports fans.
The launch of VividPix represents the next critical step in this exciting joint ecosystem that will allow us to leverage profitable customer acquisition across channels and further monetize this engagement platform.
In addition to integrated ticketing, VividPix continues to add capabilities such as multi-stat entries that allow users more options when playing.
We are excited to unveil this one-stop shop for sports fans just in time for the NFL season and look forward to continuing to innovate and unlock value across our platform ecosystem.
In addition to our focus on engagement, fostering brand awareness and loyalty remains central to our long-term strategy. While we are still early on this journey, we are seeing encouraging signs.
As we discussed last quarter, we saw the NBA and NHL seasons bring an upwards of 10% increase in repeat rates, which we believe is the result of the combination of our brand and rewards program gaining momentum. And we are excited to see that momentum continuing in the second quarter with MLB.
We believe our customers increasingly see us as their preferred partner to connect them to their favorite live events.
In the second quarter, we saw fans were eager to get out and attend events, reflecting pent-up demand following the pandemic and the ongoing shift of consumer preferences from goods to experiences.
For context, music fans were so eager to get back to concerts that artists such as Daddy Yankee and Post Malone increasingly announced additional shows to accommodate the excess demand.
We saw this phenomenon increase by nearly 50% in the second quarter compared to Q2 of 2019 amongst the top venues across the country.
In sports, this year's NHL Stanley Cup Finals, between the Colorado Avalanche and Tampa Bay Lightning, featured the most in-demand Game 1 Stanley Cup ticket on record.
In fact, the average ticket price for Game 1 at Ball Arena in Denver surpassed all the Ball Arena tickets from the last decade ahead of Adele, Bad Bunny, and the Eagles.
We also saw demand grow for women's sports with both the WNBA All-Star Game and the NCAA Women's College Softball World Series showcasing unprecedented and encouraging ticket demand. In the first half of 2022, we sold over six times the number of tickets to women's sporting events than we did in the comparable period five years ago.
As I mentioned last quarter, our partnerships continue to strengthen the reach of our platform and bring differentiated value to our customers.
Last month we announced the continuation of our long-standing relationship with Rolling Stone, a multi-platform content brand and one of the most revered authorities in music.
With this multifaceted partnership, we are Rolling Stone's official ticketing partner and integrated across its highly visible digital platforms.
Additionally, this partnership will continue to benefit both customer bases, rewarding VividSeats loyalty members through our Experiential Rewards program while providing Rolling Stones engaged in global leadership with our industry leading and dynamic ticket buying experience.
We have also entered into an agreement with leading sports media brand Bleacher Report as its official ticketing partner. We are excited to partner with a global digital destination for sports fans that reaches more than 150 million hyper-connected young sports fans each month.
Bleacher Report has created an exciting new fan experience that has sparked impressive levels of engagement and VividSeats will be the exclusive provider of digital advertising for sporting events across all VR digital platforms.
As the official ticketing partner of Rolling Stone, Leacher Report, and ESPN, we are proud to continue to partner with category leaders in both music and sports.
Many of our exciting updates this quarter pertain to the buyer side of our marketplace.
However, we continue to see strength on the seller side as well with our leading ERP skybox.
Already one of the most widely adopted ERPs for professional sellers, we continue to improve our offering to attract and retain sellers.
We stood up our fulfillment offering during the pandemic and have rapidly scaled to meet very strong seller demand for the fulfillment operational excellence and cost efficiency available to sellers on Skybox.
Turning towards our focus on the workplace, I am incredibly proud to share that earlier this month, we were named to FAST Company's FEST Workplaces for Innovators list, which honors organizations and businesses that demonstrate a steadfast commitment to encouraging innovation at all levels.
We join the ranks of esteemed workplaces from around the world that share a passion for giving employees the freedom to explore creative ideas that benefit their businesses and their communities.
As a technology company, we are always pushing the boundaries of our industry, which has attracted incredible talent to our business and fostered our culture of empowerment and innovation.
The continued growth and evolution that we see for VividSeats will be realized through the hard work and ingenuity of our talented team members, and I look forward to what we will be able to achieve together in the future.
Before I turn the call over to Larry, I want to mention another milestone that we've reached as a public company.
This past June , we joined the Broad Market Russell 2000 and Russell 3000 indexes.
We look forward to the increased visibility of the public market as we build on our track record of growth, profitability, and cash flow.
With that, I will turn it over to Larry.
Thank you, Stan.
Our second quarter results reflect continued live event strength and the successful execution of our differentiated marketplace flywheel.
As Stan mentioned, we achieved our highest quarterly Marketplace orders ever in the second quarter of 2022, driving record Q2 Marketplace GOV.
With focused execution, top line growth flowed through to profitability.
even as we continue to make longer-term growth investments, such as our integration and rebranding of VividPix.
On the back of the strong first half, we are raising our full year 2022 guidance for each of Marketplace GOV revenues and adjusted EVA-DA.
As a reminder, live events rapidly returned in the second quarter of 2021, and we saw a resulting surge in orders and average order size.
We have set records for quarterly marketplace GOV each quarter since Q2 of 2021, and that trend continued in the most recent quarter.
Second quarter 2022 Marketplace GOV increased 18 percent year over year, driven by a 41 percent increase in Marketplace orders, while average order size declined by 16 percent, yet remained 13 percent above Q2 2019 levels as average order size returns to a normalized trend line.
Meanwhile, second quarter revenues increased 28% year over year.
Our take rate, which we calculate by dividing our marketplace revenues by our marketplace GOV was approximately 16% for the quarter.
Our underlying take rates continue to be largely consistent with historical levels when considering the impact of our loyalty program, which is accounted for as a contract to revenue.
After abnormally high cancellations and cancellation-related activity in the first quarter, cancellations were substantially lower in Q2.
Cancellations represented 1.8% of Marketplace GOB in Q2 2022, which compares to 4.5% in Q1 2022, and 1.0% in full year 2019.
In the second quarter of 2022, we generated 30 million of adjusted EBITDA with a 21% adjusted EBITDA margin.
As Stan said, we made substantial progress in the integration, branding, and rollout of VividTix while maintaining GNA expense despite continued growth in orders.
Although we have recently observed some incremental marketing intensity in paid search channels, performance marketing spend nonetheless scaled roughly with GOV in the second quarter, powered by our proprietary algorithms and first-party data.
We ended the second quarter with $288 million of cash and $14 million of net cash.
Operations were a use of $22 million of cash in the second quarter, as Q2 typically sees working capital movements that reduce cash flow due to seasonality across inventory and accounts payable.
Our record marketplace orders demonstrates healthy consumer demand in the second quarter.
Looking forward, we believe the live event industry, with its long-term tailwinds, may be somewhat insulated in a recession when compared to other consumer discretionary categories.
We also believe our differentiated offering and lean cost structure give us a right to win regardless of underlying macroeconomic condition.
That said, we are not immune to the potential effects of a recession with the impact on our business subject to the severity and duration of any economic downturn.
We believe we are well situated to weather the current economic uncertainty with our strong market position.
our long history of growth profitability and cash flow, and our strong balance sheet.
We remain committed to managing our capital structure to drive long-term value for shareholders.
As an example of this, in the second quarter we announced an exchange offer for our public warrants and the exchange was completed in early July .
In aggregate, we exchanged approximately 63% of our public warrants for 2.7 million shares of Class A stock, which will increase float and trading liquidity.
In tandem, and as a testament to our confidence in continued cash flow generation, our Board of Directors authorized a $40 million share repurchase program, enabling us to selectively repurchase shares if and when we believe that is an attractive use of capital.
Beyond this repurchase program, we will continue to explore M&A for both synergistic opportunities and further enhancing the product and technology that power our flywheel.
After first raising our top-line 2022 financial guidance alongside our Q1 earnings release, we are again raising our guidance as marketplace order volume continue to exceed our expectations.
We believe this speaks to both underlying strength in the industry from pent-up consumer demand for live events.
and our ability to appeal to more consumers with our differentiated platform.
As such, we now anticipate 2022 Marketplace GOV to be in the range of $2.95 to $3.15 billion.
representing 27% year-over-year growth at the midpoint.
We are also raising our 2022 revenue guidance to the range of $540 to $570 million, equivalent to 25% year-over-year growth at the midpoint.
Lastly, we are raising the top end of our 2022 adjusted EBITDA guidance and now expect adjusted EBITDA on the range of $110 to $117 million.
Marketplace order and GOV growth through the first half of 2022 has exceeded our expectations.
This is relative to both our initial 2022 guidance and our pre-pandemic trend line dating back to 2019.
While we continue to believe there are long-term tailwinds for live event demand, we acknowledge a portion of this outperformance is attributable to pent-up demand that may not continue indefinitely.
Our revised guidance continues to reflect our policy of taking a balanced view of potential scenarios that could play out during the remainder of the year.
We are innovating and integrating our platform ecosystem and will retain optionality to lean into what is working.
while remaining disciplined and only pursuing projects that we believe will ultimately deliver attractive ROI.
In summary, it was another exceptional quarter for the live events industry, and DividSeed captured that strength and delivered strong financial results.
With that, I'll hand it back to Stan for closing remarks.
Thanks Larry. In conclusion, our results this quarter clearly demonstrate the power of our offering as well as underlying strength for the live events industry.
As we look to the future, we are confident that we have the right people, product, technology, and scale to win and are committed to sustained growth, disciplined investment, and maximizing shareholder value. And with that, operator, I will open it up for questions.
Thank you.
As a reminder to ask a question you need to press star 1 1 on your telephone, please limit yourself to questions
Once again, that's star 1-1. Please stand by we'll compile the Q&A roster.
Our first question comes from the line of Ralph Shacart from William Blair. Your line is open.
Good morning and thanks for taking the question. Obviously pretty strong results today, but, you know, with the concern about the slowing macro, anything that you'd sort of call out that you've seen in the business, you know, from increasing gas prices, variance or sort of anything else. And maybe what sort of implied the guidance and then I have a follow up.
Yeah, I'd say similar to last quarter, we generally have heard all of the chatter, yet not really seen it.
influencing behavior in a meaningful way.
Since the end of the second quarter, we've been in what we consider a little bit of indulgence of the year. The only sport ongoing is regular season baseball. Fewer data points than other parts of the year to really draw a firm conclusion, but I think we could... Can we stick to step input points like a consistent ones at a later level in the semester for
state the continued strength in the live events category through the quarter and nothing has meaningfully detached from that subsequently.
Great, and Mays, Dan, you know, as you think about the product evolution, you've been working on the website redesign, revamping the app, and then you're laying around new services such as BECCHA. Maybe you speak to the opportunity to drive further product enhancement and differentiation of the service going forward. Thanks.
Yeah, sure. We're really excited. As you said, we spend a lot of time thinking about the right way to build an ecosystem that really centers around user engagement in a traditionally low frequency category. And today we announced our launch of VividPix, which is the evolution of Betscha into a Vivid branded product that encompasses both the ability to have really intuitivelaughs that will be really
real money daily fantasy embedded within an app that also allows you to purchase ticketing. So we see that as the unification of a platform that allows a consumer to both play and interact with engaging content on a reasonably high frequency and using that content allow us to be able to understand what their likes and preferences are and then surface them compelling.
So really excited about that. I think we'll look at the second half of the year to see how to truly push a lot of our marketing and our brand efforts to encompass that. But certainly our product strategy remains focused on driving the most compelling and differentiated ecosystem that's centered around user engagement.
That's helpful. Thanks, Dan. Thanks, Larry.
Thank you. One more for our next question.
Thank you.
Our next question comes to the line of Maria Rips from Canaccords. Your line is open.
Good morning. Thanks for the call and congrats on very strong numbers here. I just wanted to ask about your outlook for the second half. How should investors think about sort of continued strong demand in this space in the context of your sort of now increased guidance that still implies sort of year-over-year GOV and revenue declines and understanding all the macro uncertainties and that your patient's pretty difficult comes in the second half. And what do you think needs to happen for you to actually grow in the second half?
Yeah, I'd say, as we've outlined our guidance and updated it in each of the last two quarters, I think we've indicated we're trying to strike a balance, recognizing that, particularly in the first half of the year, there was a lot of uncertainty around COVID. And while I don't think we anticipated it at the outset of the year, we now have had some economic or macroeconomic uncertainty introduced.
And so trying to reflect the fact that we.
We don't have the macroeconomic crystal ball, and so what may come the balance of the year is far from certain in that lens and exogenous to things we influence. So, yeah, I think there certainly continues to be scenarios where, again, if you look and listen to the Live Nation call and forecast around the line of the balance of the year, extrapolate trends we've continued. I think there are certainly pathways to performance that it's...
is at the top end of that guidance at least, and certainly there are pathways to doing better than that. But similarly, if there's a chop in the water for either COVID or macro reasons, we've tried to build a probability of those into the figures as well. So I would say, you know, to drive a positive year over year scenario, I think it really will come down to...
current environment persisting more than anything else with more uncertainty around exactly what ALS trajectory looks like. I think now that we're entering variant cost season, we should have a decent foresight into orders.
Thank you, Beth. That's very helpful. Can you maybe refresh us on your recent utilization trends for Skybox? Are you seeing more sellers leveraging the platform? Are there any additional features or functionality that you think would still be additive to Skybox that could drive even further adoption? Thanks, Beth. That's very helpful. Thank you, Beth. That's very helpful. Thank you, Beth.
Yeah, I think on Skybox we continue to innovate on what is the leading and most innovative ERP for the seller community and quarter over quarter we continue to move and gain share in that space with large clients that we're able to bring over. In terms of the roadmap there, I think it's really focused centrally on things that can enable sellers to be more successful. And we do that through improving the data offerings that we have.
Next question is offline of Steven Jew from Credit Suisse. Your line is open.
Hi, Tan. So the average order size will be unsustainable high during the initial state recovery and I guess, heads up demand as you say. So can you talk about what maybe I guess less friendly demand versus, you know, some kind of mixed shifts to the AOS changes?
as well as what you may be seeing from a purchase frequency standpoint from a user base, especially in the context of
Okay.
Yeah, hey, Steven, you're cutting it out a little bit, so we'll answer what we think we heard is the questions being one.
speaking to some of the Euro V or ILS trajectory, and then two purchase frequency. So on the ALS side of things, yeah, I think you can see in the numbers, if you compare this year to 2019, it looks quite nice and strong, but we've referred in the past to how unique the second quarter of last year was with the reopening playing out in front of our eyes at the time, no variance. And we are seeing just really unprecedented.
excitement about getting back to events. And so you saw that in just a really strong way, AOS for Q2.
In contrast, last year, we then shifted into variant mode in Q3, and you saw a pretty precipitous drop in ALS, quarter over quarter, from 400 to 300. And I don't think that is reflective of typical seasonality. So I think, in effect, you had probably some tailwinds in Q2 last year that quickly shifted to headwinds. I think this year, knock on wood, it feels like things are a little steadier between the two.
And so we'll leave it to imagination to infer from there on what AOS will look like in Q3. Beyond purchase frequency, I'd say we continue to see increasing frequency relative to what we saw pre-pandemic.
It's still a little difficult to decompose that into things that are the results of specific changes we've made to our platform and loyalty program and what may be just post-pandemic behavior shifts. I think we're confident there's some element of both of those, but the net has been an encouraging sign-on frequency.
Yeah, I think the only thing I'd add to that, Stephen, when you look at it, just reiterating, as we look at AOS comps in particular, the piece that gives us excitement around elements that we can control. Certainly in a quarter where we see AOS down almost $70 versus last year Q2, which we all recognize as kind of the release of pent up demand, in that comp, we still delivered almost 20% GOV growth despite that AOS.
And as we look at maybe, you know, as we called out baseball in terms of frequency and all the things that we have working, I think the recent Axios report said, you know, 23 out of 30 baseball teams have attendance down this year. But despite that, we've got record orders across the category. And certainly, as we talk about frequency, although the season's not over, certainly our rewards data, our frequency data would strongly indicate that, you know, frequency is trending similar to what we...
described in the NBA and NHL categories upon the completion of the regular season. So I think we've got a lot of things that are within our control as we continue to innovate that give us confidence that you know I think our products and our platforms are resonating with consumers and that ultimately I think that helps us grow across the purchase frequency and share space in the industry.
Thank you.
Thank you. And one more for our next question.
Next question comes from Shweta Kajuria from Evacore ISI. Your line is open.
Okay, thank you. Let me try two, please.
One is, could you please talk about Larry, where you are investing or San, I guess, what are your top investment areas for the next, call it 6 to 12 months?
And then the second question is on product, understood on Vech and VividPix. Could you please also talk about some of the other product initiatives that maybe you're beta testing or are in the pipeline? Thank you.
Yeah, hey, Sharada. Stan, I think consistent with what we've said across the board, I think one of our main investment areas is going to be in the marketing arena driving, I think, both awareness and diversification of our channels such that we can bring, I think, the message of what is a clearly differentiated and compelling proposition of a product that contains both rewards and perception.
best customer service in the industry as noted by Newsweek, as well as now the ability to play in our daily fantasy offering in Vividpix. I think as you look at that, certainly we're going to be investing in brand and marketing judiciously as we look for, I would say, high ROI channels that allow us to drive long-term value in that space.
When you look at the product initiative, I think as you can see on the surface, we've certainly built, I think, best in class technology now across the web platform, across our seller ecosystem, across our distribution platform, by the way, which also I think last quarter we announced Capital One. So I think we continue to make strides. On the consumer front, you see I think Vividpix is a shining example of something that we will continue to invest in, where I think content and engagement with the users.
in multiple ways will drive them into our ecosystem at a higher frequency and keep them there. And then certainly I think the other element with the incremental points of data that come in from user behavior, I think we've got a lot of efforts focused on personalization and driving, I think, relevancy to users, again, through the fact that our product and platform allows us unique insight into preferences and behavior.
Okay, thanks, Dan.
Thank you. One moment for our next question.
Did do you receive?
Our next question comes from Tom Fort from DA Davidson. Your line is open.
Great, thanks. So, Stan and Larry, congrats on the quarter. So, one question and one follow-up. So, the first question, I wanted to know, Stan, your thoughts on return to live events by demographics. So, one question, I wanted to know, Stan, your thoughts on return to live events by
So do you think we're seeing all ages return or is it still biased to younger consumers?
Hey, Tom. Yeah, I think you know what we're seeing is...
pretty strong strength across the categories. You know, and I think you can look at, I think the artists maybe more recently who've gone on sale as a good indicator of strength across that, whether it's, you know, Bad Bunny, who's traditionally appealed to maybe a slightly younger audience or Stevie Nicks, who recently had an on sale. I think we've seen strength across the categories and certainly when you get into outside of the concerts, there's been a strong return to theater, there's been a strong return to sports. So I think across.
all of the, call it, categories that we report on, and certainly what we're seeing across our demographic data, we've seen fairly uniform strength across all the different age groups.
call it categories that we report on and certainly what we're seeing across our demographic data we've seen fairly uniform strength across all the different age groups. Great and then you answered my question.
Second question right from the first one. So Larry talks about the percentage of cancellations in the quarter and how that compared to the first quarter. What are your thoughts on your long term trends expectations for cancellation?
Yeah, I think if you go back to pre-pandemic, we generally saw on average 1%.
of gross DOD would cancel.
It's unclear to us if we ever get all the way back or if in the near term we get all the way back to those levels. If you go back in time, the vast majority of cancels were really game sixes, game sevens in sports that didn't happen.
It was a pretty rare event and fairly stigmatized to cancel if it was anything other than a pretty severe health or personal issue. I think with COVID you've seen some of that.
stigma, wear off, and so there's.
some question in our mind on do you get all the way down to 1% or is something akin to what we saw in Q2 in the more like 1.5 to 2% range, the appropriate longer-term target. So we'll continue to learn, but I think as of now we would not assume to get all the way back to 2019 in the next few quarters.
question in our mind on do you get all the way down to 1% or if something came to what we saw in Q2 in the more like 1.5 to 2% range, the appropriate longer term target. So we'll continue to learn, but I think as of now we would not assume to get all the way back to 2019 in the next few quarters. Great. Thank you, Dan. Thank you, Larry. All right.
Thank you. And one more for our next question.
Our next question is offline of Andrew
Thanks for taking my questions too if I could. You talked a little bit about the increase in competition in the paid search market and we're seeing maybe some softness outside of that channel. So I guess are those dynamics maybe affecting your channel mix or is the softness in the X search market maybe creating opportunities for lower cost or more efficient marketing? And then secondly on product I guess what went into the decision to launch a separate app or rebrand the separate app for VividPix and...
as you think about where real money engagement in an app is in terms of the regulatory environment. And I think there are certain advertising restrictions that we need to consider as we look at those different products, right? So I think, when we look at that, it said to us, it makes a lot of sense to make sure that we have one, a core Vivisceats experience that allows us to engage and acquire ticketing consumers in a non-disruptive way.
And then secondly, as we innovate into an app that encompasses both, where real money is part of that, that we are able to participate in that without degrading any of the efficiencies we've got in the former. So I think that's largely what's driven, I think, our two app strategy, and we've seen it so far in the early days play out quite nicely.
the marketing
You know
Echo some comments we made in prior calls around the maturity of.
our sector on the paid search front and when some others were perhaps seeing increasing intensity and we were seeing stability, now we're seeing a little bit of increasing intensity when that's perhaps again the time.
And once some others were perhaps seeing increasing intensity and we were seeing stability, now we're seeing a little bit of increasing intensity when that's perhaps again detaching from what the broader market is seeing. All of which just say, I think you'll see some idiosyncratic ups and downs in terms of paid search marketing intensity specific to industry or individual competitor factors. And I think that's the case for what's playing out here.
There's been some commentary around competitors of ours who are trying to reclaim past glory, and one of the ways one may try to do that would be through enhanced paid search activity. On the channel side, in Nix going into the second half of the year, sometimes you get lucky, sometimes you get unlucky. When frankly we launched our brand efforts in Q4 of last year in the midst of variant, I'd say we got unlucky.
I think we then pulled back a bit to reposition to reflect the joint messaging with VividPix. And so we were lighter on brand investment the first half of the year when things were still pretty pricey, which will set us up to be a little heavier in the second half of the year when, as you said, we could perhaps get a little bit of bang for the buck. So I think that nets out to we're probably about par on luck for when we're deploying our dollars, but we do expect to be a little heavier.
on brand outlays in the back half of the year. Understood, thank you. Thank you. I'm not showing any further questions in the queue. I'd like to turn the call back over to Kate Koppels for any podium marks.
Thank you everyone for joining us to discuss another great quarter. This concludes our call. Have a great day.
This concludes today's conference call. Thank you for participating. You may now disconnect. Come have a great day.