Q3 2023 Vivid Seats Inc Earnings Call

November 7, 2023

[music].

Yeah.

Good day and thank you for standing by welcome to the visit sheets third quarter 2023 conference call. At this time all participants are in a listen only mode.

After the speaker's presentation, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone you will then hear in automated message advising you your hand is raised.

Withdraw your question. Please press star one again, please be advised that today's conference is being recorded.

I would now like to hand, the conference over to your first speaker today, Kate Africa head of Investor Relations. Please go ahead.

Good morning, and welcome to the third quarter 2023 earnings Conference call.

Kate Afric head of Investor Relations.

Right.

Joining me today to discuss the results are Stan Chia, Chief Executive Officer, and Larry Seay, Chief Financial Officer.

By now everyone should have access to our third quarter earnings press release, which we released earlier this morning.

Press release as well as supplemental earnings slides are available on the Investor Relations page of <unk> website at investors thought the state Dot com.

During the course of todays call management may make forward looking statements within the meaning of federal Securities laws.

These forward looking statements are subject to risks and uncertainties, including those described in our earnings press release and other filings with the SEC.

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

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

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

Good morning, everyone and thank you for joining us.

Today, we're pleased to share that Vivek, it's delivered another quarter of record results with our growth accelerating beyond the strong growth we saw in the first half of 2023.

After delivering nearly 1 billion in marketplace <unk>, our highest quarter ever it has never been more clear that demand for live events is strong and that we are capturing that strength at vivid seats.

In addition, our focus on cultivating buyer loyalty continues to deliver results with repeat rates, increasing and pacing ahead of expectations.

Our strong quarter performance comes as we announced the acquisition of Vegas Dot Com, our second strategic acquisition of the year.

The biggest dot com as a strategic asset that enhances our scale and reach in Las Vegas, the coveted entertainment capital of the U S. While driving substantial Tam expansion and immediate accretion.

I'll walk through these exciting highlights from the quarter in more detail and then I'll turn it over to Larry who will discuss our financials and outlook.

With the industry and our business firing on all cylinders in the third quarter, we delivered $999 million of marketplace, <unk> driving outstanding 28% year over year growth and accelerating from 16% growth in the first half of 2023.

We also delivered $188 million of revenues and $33 million of adjusted EBITDA, both growing robustly year over year, while deploying compelling brand investments that will continue to drive value and impact in 2024 and beyond.

With strong results to date. This year, we are proud to raise our 2023 guidance for the third time.

With 28% <unk> growth. It is evident that consumer demand for live events is healthy and vibrant and that spans increasingly favor and return to our platform as.

As we saw last quarter demand strength continues to be pervasive across categories and is driven by a wide array of performers and teams.

The robust demand we are seeing reflects long term tailwind that will drive strong growth for years to come.

One of those tailwind is the passionate fandom that drive our buyers to show up for their favorite artists and team and to experience it live.

We're engaging and innovative platform is resonating and we see fans increasingly returning to vivek seats.

Our repeat rates have increased significantly and are trending ahead of our forecast when we initially underwrote, our investment and loyalty and brands.

With repeat rate benefits that are exceeding expectations. We are excited to lean in and drive further repeat rate acceleration and buyers stickiness.

Repeat orders are accretive and as our investments continue taking coal, we anticipate leverage and margin improvement beginning in 2024.

As part of our brand initiatives, we are investing in partnerships with category leaders that help ensure our brand message reaches a targeted audience of sport and music enthusiasts that are highly likely to attend live events.

For example, timed with the start of this NFL season, we launched a brand campaign with our partner ESPN, which aired on Monday night football and reached millions of sports fans.

The AD featured 11 time pro bowler, Larry Fitzgerald Junior and highlighted the 11th free ticket available through vivid seats reward the only loyalty program in the industry.

The campaign also included digital takeovers on both the ESPN and Bleacher report apps.

We have seen campaigns like this drive long term brand recognition and affinity along with immediate returns as our brand partners direct their users to our platform.

As we spoke about last quarter. We are also growing our roster of team partnerships, which offer a unique and premium experiences that drive differentiation.

In addition to our numerous partnerships across teams from the MLP the NFL and the NBA. We are excited to share that we've expanded into the NHL for the first time as we are now the official ticket marketplace partner for the La Kings.

We're also excited to add the La Galaxy two our list of partners, our first MLS partner in some time.

With these partnerships, we will benefit from co branded onsite activation and Vivek. These customers will have unique access to premium seating areas bundled with experiences and perks.

Our initiatives driving repeat rates higher go beyond our brand and team partnerships, we are reaching fans through numerous channels, including social networks connected television and influencers to cultivate awareness and affinity with fans.

A crucial part of brand loyalty lies within our award winning customer service.

This quarter, we were thrilled to once again be recognized by Newsweek for our track record of providing excellence in customer service.

We continue to foster engagement in our ecosystem through both our vivid picks app and vivid seats game center, which is available directly within the vivid seats app.

With vivid seats game Center users played daily game to score points and earn credits towards drawings for free tickets.

Game Center engagement and pricing between ticket purchases is resonating and driving desired repeat behavior. We.

We've already found that game center users purchase tickets at a rate 36% higher than non game center App users and game centers unique player count continues to grow and accelerate already reaching 175000 users since launch over the summer.

Stickiness on both sides of our marketplace is high and continues to grow.

We continuously innovate our best in class seller tools like Sky box, which is the ERP of choice for the majority of professional sellers, our beta phase for Skybox drive our innovative pricing tool continues to drive insights and garner excitement and we look forward to launching the product in early 2024.

Sellers are eager to plug into skybox drive, which will leverage the most robust data in the industry and generate valuable insights for sellers.

Turning to our two strategic acquisitions first a brief update on waves ash.

We closed the acquisition in early September and are excited to use learnings from waived ash as we look to expand our Tam and other attractive international markets.

Next I am thrilled to announce our acquisition of Vegas Dot Com, which we purchased in early November for $240 million using a mix of cash on hand and equity.

Vegas Dot com is uniquely positioned in the coveted Las Vegas market as the local market authority with the most comprehensive event inventory of shows attractions and tours Vegas Dot Com is a top destination for millions of Las Vegas tourists every year.

As the two sided marketplace Vegas Dot com connect those tourists to popular local events, such as search SLA and magic and comedy shows.

Las Vegas is benefiting from multiple tailwind, including new venue, new team and successful artist residencies additional upcoming supply tailwind include the inaugural Formula One Las Vegas Grand Prix later, this month and the Super Bowl in 2024.

With $89 million of 2022 revenues. The addition of Vegas Dot Com will increase our scale and reach in this key market bring incremental unique inventory through strategic partnerships and offer long term synergistic upside we are thrilled to acquire such a strategic asset at an accretive.

<unk> offers a compelling financial profile with robust EBITDA margin.

Vegas Dot com brings a tam of six plus billion that spans a diverse portfolio of shows tours and attractions in Las Vegas, The entertainment capital of the country.

With millions of live event enthusiasts flocking to and from Las Vegas, each year, we anticipate a nationwide awareness benefit as tourists returned to their home markets with the awareness of vivid seats and enrollment in our loyalty program as we integrate the <unk> brand into the Vegas Dot com custom.

Her experience.

With our recent acquisitions of Vegas Dot Com and waved ash, we are building a track record of using our cash flow to invest in strategically accretive Tam accretive and financially accretive assets.

Each business is a leader in its market and when combined with our leading platform will drive synergistic value that will accelerate our profitable growth both domestically and internationally.

We are excited to integrate these businesses and expand our reach and capabilities as a leading global marketplace.

The combination of our organic and inorganic investments have driven a fundamental trajectory shift of the business, leading us to provide a strong preliminary view of 2024, which Larry will go into detail on shortly.

With new growth vectors now in place internationally and domestically as well as the valuable differentiation. We continue to develop through our platform. We will enter next year prepared to deliver a step function increase both strategically and financially.

Turning back to this quarter, our excellent results reflect the foundational strength of our business and the growing affinity and demand for our platform. We are excited to finish the year strong and remain focused on building that strength and creating long term shareholder value with that I will turn it over to Larry.

Thanks, Dan our third quarter 2023 marketplace <unk> of $999 million increased 28% year over year.

Total marketplace orders, increasing 19% year over year and average order size increasing 9%.

We delivered our highest quarterly marketplace <unk> to date, reflecting strong <unk> execution against the market backdrop of broad based demand strength spanning performers antiques.

Our third quarter 2023 revenues of $188 million increased 20% year over year.

Driven by marketplace <unk> growth.

Our Q3 take rate of 15, 5% is consistent with expectations.

We generated $33 million of adjusted EBITDA in the third quarter up 18% year over year.

We have seen improved efficiency and performance marketing on a year over year basis again, a favorable competitive backdrop.

With repeat rates trending higher and above expectations. We are seeing results from our brand and loyalty initiatives and continue to invest accordingly.

Our third quarter offline marketing expense, thus reflects brand in partnership investments that we expect will further improve awareness of our value proposition drive brand affinity and in turn increase repeat rates.

We have delivered exceptional cash flow generation with over $110 million in cash from operations year to date.

As we look at our balance sheet. Following the Vegas Dot Com acquisition, we remain flexible and can capitalize on additional compelling growth opportunities as they arise.

Our post acquisition cash balance of $117 million is healthy.

Debt principal outstanding at $274 million is low.

And our revolver of $100 million, it's undrawn.

Our net leverage is less than one times our forward adjusted EBITDA.

And we anticipate continued strong cash generation.

Our acquisitions this year demonstrate our ability to identify strategic assets.

And our willingness to deploy our cash to drive long term value.

Turning to our updated outlook for 2023, we are raising our guidance to account for our outperformance in Q3 continued strong demand trends, thus far in Q4 and contribution from Vegas Dot com in the last two months of the year.

We now anticipate 2023 marketplace <unk> in the range of $3 75 to $3 9 billion.

Revenues in the range of $685 million to $705 million.

And adjusted EBITDA in the range of $136 million to $142 million.

Our guidance continues to reflect brand in partnership investments that we believe will drive attractive long term returns.

We now expect 20% marketplace <unk> growth in 2023.

On top of greater than 30% <unk> growth in 2022.

It's broad based demand strength continues well beyond the post pandemic search we are leaning into these compelling secular trends and seeing our flywheel accelerates.

While we do not typically provide next year guidance until our Q4 call. We are making an exception this year in light of our Vegas Dot Com acquisition and the impact it will have on our financial profile in 2024.

We expect 2024 marketplace <unk> in the range of four 2% to four 5 billion approximately double our <unk> from 2019.

We also expect 2020 for revenues in the range of $810 million to $840 million in.

In 2024, adjusted EBITDA in the range of $170 million to $180 million.

At the midpoint this represents mid teens marketplace.

<unk> and revenue growth at.

26% adjusted EBITDA growth.

Underlying our initial 2024 outlook is high single digit revenue growth, excluding our Vegas Dot Com acquisition.

With operating leverage and incremental contribution from Vegas Dot com contributing to 26% projected adjusted EBITDA growth.

To wrap between strong operational results and strategic acquisitions, it was a great quarter.

We are excited for a strong close to 2023 as we gather momentum for another great year in 2024.

Back to you Sir.

Thanks, Larry.

There has never been a more exciting time for vivek seats.

Between vibrant industry growth continued strategic and operational excellence as well as accelerating progress in driving long term stickiness. The core <unk> business is in a great position.

Strengthened by not one but two strategically accretive.

<unk> accretive and financially accretive acquisitions in 2023, we are teed up for yet another outstanding year in 2024.

With that operator, let's open it up for questions.

Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one from your telephone and wait for your name to be announced.

To withdraw your question. Please press star one again, please limit to two questions per analyst. Please standby, while we compile the Q&A roster.

Our first question comes from Jason Bazinet with Citi. Jason. Please go ahead with your question.

Thanks, so much.

I appreciate the 2024 initial take.

I was wondering Larry if you could just spend a second and maybe.

Parse out sort of.

The M&A contribution from that growth as opposed to your expectations for sort of underlying category growth and market share any sort of broad color.

Would be helpful.

Yeah.

Yes, so I think.

A combination of certainly contributing to the <unk>.

<unk> results.

As we briefly noted I think we're expecting excluding contribution from Veeva hi.

High single digit.

Topline growth.

And then.

Some incremental operating leverage beyond that on the EBITDA side.

Against which we believe will be a.

Growing industry environment, but.

Unit growth relative to this year.

Yes, so it's still robust and generally consistent with the long term trends.

Go out two years and meaningfully outperformed our long term trend guidance and so we're expecting a reversion back to the long term trends.

Okay, and just one quick follow up you describe the competitive environment is stable I'm, assuming that's year over year is it still elevated but stable or you describe the sort of competitive dynamic because this is sort of stable from a from a backward looking long term basis.

Hey, Jason it's Dan.

I think the competitive.

Environment has always been there and I think what youll see in our results and certainly what we're confident about next year is that our investments both organic and inorganic inorganic are certainly yielding results that I think will continue to allow us to deliver.

Hence putting out what we think next year is going to look like which I think is more reflective of our investments taking hold whether it's in the form of repeat rates, whether it's in the form of some of our brand investments coming through I think we're pretty optimistic.

About what you've seen so far and certainly about our ability to continue to deliver next year.

Okay. That's great. Thank you guys.

Okay.

Please standby for your next question.

Our next question comes from Maria Rips with Canaccord.

Maria. Please go ahead with your question.

Great Good morning, and thanks for taking my questions. Firstly, so within the context of your guidance is there any color you can share in terms of how you're thinking about sort of the level of investments next year.

What are what would be your key investment priorities and to wanted to what extent is your investment cadence predicated on the macro environment and then I have a quick follow up.

Sure.

Yes, I would characterize the investment.

As consistent with what we've.

Previously put forward a focus on driving brand awareness brand affinity.

And compelling folks to become repeat users on the platform.

We called out last quarter, some incremental opportunities that we saw across some some team partnerships.

I think you saw a couple of new ones.

This quarter as well.

So some modest incremental dollar investment.

Generally its the same quantum of investment same form of investment and what we're really focused on is continuing to see that.

Yield that we've been seeing all of the forward leaning metrics and expect to continue seeing progress accordingly.

Got it that's very helpful. And then can you maybe talk about your partnership with Paypal for the pay later functionality and maybe just talk about how consumers are engaging with it and with that this is leading to higher <unk> or more frequent purchases.

Yeah, Hey, Maria fan I think look I think we're always looking for great partnerships that will enable.

Consumers to transact and transact seamlessly and easily and I think Paypal is certainly just another example, we partnered with <unk> as well and we continue to look to expand.

Wallet and checkout capabilities, so that again consumers can check out with their preference and we're excited by what we're seeing so far in our partnership with Paypal and are looking forward to expanding that in the future.

Got it thank you so much.

And for our next question.

Our next question comes from Curtis Nagle of Bank of America Curtis. Please go ahead with your question.

Terrific, Thanks very much.

So.

So maybe I'll start with just going back to Vegas, just kind of curious how the deal came to you and I guess.

Why.

This is the best partner for Vegas, and kind of vice versa, and then I'll hop off.

Follow up.

Jeremy Curtis it's Dan.

It starts from and we've talked a lot about this you know in the past I think we're pretty.

We stand in a really good spot with a balance sheet that has been strong on the cash front, great public currency and I think it's always been.

On the inorganic front looking for opportunities.

That our Tam accretive strategically accretive financially accretive.

We deployed some of that capital earlier in this year with wave dash, which we're very excited about that.

Looking for assets that again meet our criteria for acquisition, we ran into the.

The team at Vegas, Dot com and that asset, which again checked all of our boxes. In fact had its really excited when you look at the nature of that business as we look at it in our biggest market.

Authority massively comprehensive event inventory of shows primarily shows I might add.

<unk> tours.

Top destination for millions and millions of tourists every year, we think there are great tailwind.

In Vegas.

I think if you look at the inaugural Formula One race that's happening there. This month you look at the Super Bowl coming next year, new venue standing up artist residencies, we love the tailwind there and when you think about nature.

Of the consumers that come.

Visiting and as we look at a lot of the benefits that our platform brings from a <unk> perspective, you've heard us talk for quarters now about I think our investments in the platform and driving increased conversion and driving increased repeat rates and engagement. We think that's just a wonderful synergistic opportunity where we can use.

Vegas as a domain authority in Vegas to acquire all of these visitors introduce them to the <unk> brand that Vivek <unk> loyalty program and have them go back to their home markets.

Redeem that credit so all in all I'd say, we're really excited again the rationale is there and it certainly fits all of our criteria on increasing Tam being strategically and financially accretive at the same time.

Okay.

Makes sense, so maybe just kind of just following.

Following up on that question, so I get the point in terms of.

To increase national awareness for vivid get all the tailwind in terms of Vegas next year.

Just in terms of.

Anything else in mind.

To grow in market Vegas revenue, whether it's customer acquisition or marketing or just integration with your own platform.

To grow I think you said, it's about $6 million term something like that.

Yeah look I think one we're real early right. We just closed on the deal last week. So I think we are right at the starting line in terms of driving all of the hypothetical synergies, but I think we look at it and we say what a great asset again lots of tailwind we looked at it in terms of.

Accelerating customer acquisition, we look at all of the multiple strategic partnerships that Vegas Dot Com has and are excited to add that our portfolio of partnerships.

And I think when you look at that certainly we are going to be aggressive in terms of what we can drive there and we'll be happy to provide an update as we start to execute on some of the synergies that we see in market.

Okay. Thank you.

Okay.

Please standby for our next question.

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

MS. <unk>. Please go ahead with your question.

Great So Dan Larry Congrats on the quarter and the transaction one question and one follow up.

For the question.

I wanted to ask a question I'm often asked by investors. What is your current buyback authorization. What are your thoughts on increasing is given where shares are trading in today's strong results and guidance and then lastly, what are your thoughts on always having a buyback authorization in place.

Our shares are trading.

Yes, Thanks, Tom we don't currently have an authorization in place.

It's certainly.

Sure.

Concept that we are always considering as a form of of investment are returning of capital I think in this period.

Stan outline the criteria, we have for strategic M&A, which is a high bar and there are many periods, where where that bar is not met it happens to be the case.

Each of the last two quarters, we've had that bar at.

Both international and now domestic Tam expansion opportunity that was financially accretive.

And so in that environment, we chose to lean into.

Couple of assets that we think will drive a lot of long term.

Cash flow long term growth opportunity and platforms for further growth above and beyond.

Repurchasing of our shares.

We're going to generate a lot of cash flow next year, assuming we're able to achieve our guidance and so that.

The catch all refill with powder quickly.

In which case I think your questions, we'll come to the forefront again.

Great and then for my follow up.

Etsy called out you only live once or yellow is something pressuring spending on his marketplace. When it reported the third quarter. So I think you are kind of uniquely qualified to answer the following so when you look at what's going on in live events, how do you think about yellow versus fomo.

Yellow is consumer spending thousands for Taylor Swift era's concert tickets and fomo is.

Consumer spending hundreds of thousands for chiefs tickets with Taylor Swift is attending the game how do you think about yellow versus fomo in today's trends in live events.

Hey, Tom I mean first I'd say, we are staunchly impressed by your command of the acronyms that exist out there.

And look I think they apply strongly to our category both the yellow in pharma as we as we continue to see strength.

When you look at our average order size, which we always demarcated.

Right.

Indicator of how much demand is outpacing supply you can look at this quarter and we're still 10% up on a year over year basis.

You look at that long term CAGR, which we provide in our.

Investor presentation, you can see it's really retract it to the mean and that that's in the face of I think a lot of sentiment around consumer spending we're certainly seeing I think last quarter, we had questions on.

Loan debt repayment and all of these so we understand I think some of the challenges that are out there in terms of.

Consumers and where they're choosing to spend their dollars, but as it pertains to our category. I think we have continued to see really strong resiliency and I think we can attribute that to a combination of yellow and fomo, both working towards I think all the live events that are occurring today.

Thank you Dan Thank you Larry.

Please standby for your next question.

Our next question comes from Dan <unk>, The Benchmark Company Dan. Please go ahead with your question.

Thanks, Good morning, I'll Echo my congrats on the strong quarter guys.

Maybe a couple Larry since no one's asked yet I mean, we obviously saw.

<unk> strong outlooks from live nation last week and incredibly strong.

Conference late for the call.

Conference.

Yeah, let's try that again and just turning to strong concert slate for next year and I guess.

Just trying to think about how youre thinking about maybe ticket prices given that youre going to comp against beyond say and Taylor.

<unk> and <unk> of next year.

Know that you guys are always conservative in its Q3, giving you 2024 outlook, but just any kind of color as we should be thinking given what should be a lot more events and you guys expanding frankly, your Tam both in sports and concerts.

Yes, Thanks, Dan.

I think as you noted we.

We have.

Seem consistent strength in both the supply and demand side, particularly in concerts.

Nothing that would give us.

Reason for concern and our performance to date.

We certainly see the headlines, but it's not flowing through to numbers that we can see that are different than what any other macro forecast would be looking at.

Yes, I think we've touched on this before live nation will generally have their finger on the pulse of the following year's pipeline before we will.

We'll find out a lot more in Q4 as it relates to specific acts in names.

But we do hear.

Here the same strength that you are here, which gives us.

Confidence heading into next year.

We reiterate it was awesome, having Taylor Swift and beyond say performing it was great to see strength in their tours.

Taylor was record setting I would still characterize we havent really robust portfolio. So long as there are.

AOS performers going out there that portfolio strength.

We think will help us.

Yes, it's not to say that.

There won't be any impact as we lap year over year comparisons, but we think we'll be able to grow and deliver robust results against that.

Okay.

Stan unfair question since you just announced Vegas acquisition, but a lot of the.

Some competitor sites, but the tangential sites feature a lot of hotel and destination stuff and obviously you guys also have.

<unk> I don't know if you noticed they do a little bit of gambling in Vegas. So.

Just kind of your thoughts on adjacent opportunities or partnerships and kind of is that in your thought process with this or is this really more just focused on hey, This is an awesome way to get Tam expansion in our core ticket business and anything else that comes on top of that is gravy.

Yeah, Hey, Dan.

I think it's a great question and it's.

The opportunity for us to kind of set the stage again I would say look we looked at Vegas dot com, which is predominantly.

Shows attractions right like it is primarily ticket volume within that sector, but we are very excited about the fact that the capabilities that that that adds to our platform include flight and hotel. So certainly I think as we look through how to drive more comprehensive offerings to users that will certainly be within.

Our thoughts, but we are in the near term I think really focused on driving a lot of the <unk>.

Benefit into our core business not dissimilar as you talk about the vivid picks and the launch of game Center break game Center now I think we've accelerated our adoption of users are free to play product like we talked about earlier and the performance there that our users who are on game center, our purchasing at a 36 person.

That higher a faster clip than non game center users. So like you said I think we've got a lot of opportunity, but a lot of that opportunity that we see is where we are going to drive that into our core business and look for benefits and frankly, I look at that as really synergistic upside.

Where are the acquisition could take us.

Got it okay, thanks, and congrats again.

Standby for our next question.

Okay.

Our next question comes from Cameron Massone Perone with Morgan Stanley Cameron go ahead with your question.

Thanks, Hi, guys.

200 days, if I can.

One Dan I was wondering if you could just flush out a little bit more when you talk about the $6 billion increased Tam opportunity there exactly what you're capturing within that opportunity.

And then.

As we think about obviously you can see in your 24 guidance sounds how youre thinking about the impact to your business on the revenue and adjusted EBITDA side, but.

Would love some some additional clarity in terms of whether we should think about this as being take rate.

Accretive.

The <unk> contribution is.

Unit economics, better, where obviously it looks like adjusted EBITDA and nicely accretive, but just a little bit more on the financial profile.

And finally, if I can sorry.

Any any.

I would love to hear just the logic around the financing in terms of using a combination of cash and equity. Thanks guys.

Hey, Cameron, it's Dan, Yes, Yes, I think look one of the things we put out there which has US excited as you said as we through our processing through our diligence I think has the opportunity to size the Vegas market in that $6 billion. You know from our third party analysis is $6 billion.

Just Vegas Giaga geographical shows and attractions right. So I think just in that core area, which makes up the majority of that business, which again is the big overlap and where we see lots of opportunity to drive national brand awareness customer acquisition synergies within the platforms just that alone is $6 billion.

The Vegas area and so then I think as you start to go beyond that and you think about the other things that we've talked about whether it is in bundling flights and hotels, whether it is in taking users back to their home markets and leveraging.

The power of <unk> platform and engagement platform. There I think that's all on top of that so $6 billion as we looked at it is just Vegas.

And just tickets shows and attractions.

In terms of.

A little more detail on the financial profile.

Hi.

First it will be reported through our marketplace segment moving forward.

So you won't be seeing any explicit breakout beyond this commentary because it's a very similar business model to our current business I think it will it'll blended nicely.

As you would expect given the similarities I'd say, the P&L line up quite well.

That said it.

Somewhat accretive to our take rates and somewhat accretive to our margins.

So I think after Q2 referenced a 15, 5% okay. Great I think we can now point to a 15, 5% to 16% is the range with the benefit of that modest tailwind from the accretion of this transaction.

So maybe anything on the on.

On the combo of cash and equity for the for the acquisition there.

Oh, yes. Thanks.

I think it's the best of answers were.

The <unk>.

Sellers I think shared some of our enthusiasm.

So we have opportunity from their perspective to participate in some of the shared upside I think the opportunity from our standpoint of alignment.

Forward.

Against the backdrop, where the majority of the proceeds were cash unless were able to accrue the accretion to the shareholders benefit for the most part.

Got it thanks, Steve the only other thing I'd add on that very comfortable.

With our capital structure pro forma for this transaction less than one turn of net leverage and with the cash flow that we expect to generate next year I think that we will pretty.

Pretty quickly approach.

Net debt neutral.

Over the course of the next year or so.

Awesome. Thanks.

One moment for our next question.

Our next question comes from Logan reached with RBC Logan. Please go ahead with your question.

Hey, good morning, guys.

Thanks for taking my question congratulations on the results just one quick question just on the marketing is down across the industry. I know you had mentioned about the <unk>.

The backdrop is relatively stable, but I was just wondering if you could unpack what you're seeing from competitors on the marketing side it looks like.

Sales and marketing expense ticked up a bit quarter over quarter.

I was wondering if that you guys, leading edge overall demand strength or thoughts.

Related to what you are seeing in the competitive backdrop.

Yeah, Hey, Hey, we're going to stand.

I'd start with I think the competitive environment and certainly as we said stable.

But I think everybody is out there I think they see strength in the industry.

I'd start with when you look at what comes through and I think we've talked about we've had some opportunistic elements and some timing elements that just reflect marketing in the quarter and you've seen some of the partnerships that we've announced I think that we're really excited about that youre seeing there, but perhaps more importantly, I think as we continue to call out a lot of our investments that will.

Have really long term leverage are pacing well ahead of our expectations in terms of our loyalty program and the repeat rate behavior that we're seeing amongst users.

I think our repeat rates we're now.

<unk> eight quarters from when we first talked about our repeat rate in 2021, and our repeat rates are the highest they've ever been in every single category across every cohort of users. So I think we are really excited about our differentiated platform and the ability.

To continue driving value into that ecosystem.

Not have to go out there and go head to head on what I would say our RP acquisition channels. We've also talked about our engagement platform, which continues to be.

Great spot for us as we've provided game center already up closer to 200000 users in the first.

Four months with almost no marketing and we've already seen that purchase behavior on that category of engaged users is 30%, 36% faster than people, who aren't using game center. So wildly environment like I said it is certainly stable.

Still competitive and I think we are really excited and bullish on the elements that we control and our platform continues to resonate with users as shown through the metrics that we're that we've disclosed here.

I don't really add.

We're continuing to make investments in.

Well I would love to tell you that we knew everything about every incremental channel. The day. We started the reality is that we are learning that we get great data great opportunity to learn from these investments and I think apparent in guidance are putting forward next year is deployment of those learnings continue refinement of those investments and that is helping that.

To push the return on these meaningful brand investment is higher.

Great. Thanks for the color really appreciate it.

One moment for last question.

Our next question comes from Ralph <unk> with William Blair. Ralph. Please go ahead with your question.

Good morning, and thanks for taking the questions Dan maybe sort of a follow up to your last answer to previous question kind of pulling together how do you view some of your biggest advantages.

Have versus say the competition, maybe if you can sort of frame. These the biggest opportunities going forward and the sustainability of these advantages, especially in the context of the recent acquisitions your ability to build the brand and drive repeat rates. Thanks.

Yes.

Hey, sure thing Ralph and thanks for the question I mean, I think I'd start with when you look at.

What and why we put out kind of a preliminary view of of next year I think what we want to show everybody is that there is a good combination of organic strength and that growth combined with obviously now.

The acquisition of Vegas Dot Com ultimately, leading to I think a pretty transformative profile of the business next year. When you look at organically, where we've continued to differentiate and invest.

Our platform has the loyalty program that we always talk about that is really a combination of.

The economic benefits from a buy 10 get one free program to all of the experiences.

We try to tack on that are really.

Above and beyond we talk about really cool unique things and I don't think we've talked about it here, but when you look at our.

Newly announced partnership with the L. A.

King's for example that includes guaranteed jumbo Tron time, right. So you buy a ticket on videotape that loyalty member you make sure youre on the Jumbo Tron, which I think is a really cool experience. So all of those things I think leading to again, what we see is really strong platform engagement retention and growth, which is fully within our control and you see.

That as increased repeat rates.

Every quarter, we're there again pacing now beyond our expectations and our highest that they've ever been.

Then add to that.

The engagement platform that is a combination of vivid picks and game center now keeping users engaged.

Through the entries in games that we have between their transactions. So.

When that time comes to purchase both through the discovery and the purchase that propensity on our platform is just so much higher than it would have been and then you turn it too. We're also investing in incremental channels, which are acquisitions that then bring users into our ecosystem with all of the retention benefits that we have our brand investments are part.

<unk> investments are wonderful ways to continue to diversify and acquire users and when you look at Vegas Dot Com again ticked down that list, what a great market to be in with the market leader I think both wave dash and Vegas Dot com are market leaders in their specific markets.

Think about biggest dotcom again isn't profitable acquisition engine given the strength of that business. We can now profitably acquire high value customers and bring them into our engagement platform and vivek. Its ecosystem that has continued to drive the behavior.

That I think is indicative of long term retention of customers and that really when you look at that together are the benefits that our platform I think just provides that nobody else out there provides.

I'll pass it over to Larry I can give you the kind of that financial benefit is that again flows through everything that we just said.

Yes, we're really excited about the combination of.

Organic growth plus the inorganic contribution.

I think with.

With Vegas, contributing what we think will be 10% to 12% of our topline next year I think that frames out that we're going to have a wonderful.

Realization of topline growth operating leverage contribution from strategic acquisitions, and probably most exciting because those acquisitions were later in the year I think we will be able to layer in continued synergistic benefits as we hit our stride in the middle and back half of next year, and hopefully set us up for strong performance into 2025.

Yeah.

Great. Thanks, Dan Thanks, sorry.

Thank you for your participation in today's conference. This does.

Conclude our program you may now disconnect.

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Thanks.

Good day and thank you for standing by welcome to the <unk> seats third quarter 2023 conference call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.

Ask a question during the session you will need to press star one one on your telephone.

<unk> been here in automated message advising you. Your hand is raised to withdraw your question. Please press star one again, please be advised that today's conference is being recorded.

I would now like to hand, the conference over to your first speaker today, K Africa head of Investor Relations. Please.

Please go ahead.

Good morning, and welcome to visit third quarter 2023 earnings Conference call.

Hey, Patrick head of Investor Relations activity.

Turning me today to discuss <unk> results are Stan Chia, Chief Executive Officer, and Larry Seay, Chief Financial Officer.

By now everyone should have access to our third quarter earnings press release, which we released earlier this morning.

The press release as well as supplemental earnings slides are available on the Investor Relations page of <unk> website at investors visit <unk> Dot com.

During the course of todays call management may make forward looking statements within the meaning of federal Securities laws.

These forward looking statements are subject to risks and uncertainties, including those described in our earnings press release and other filings with the SEC.

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

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

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

Good morning, everyone and thank you for joining us.

We're pleased to share that vivek seeds delivered another quarter of record results with our growth accelerating beyond the strong growth we saw in the first half of 2023.

After delivering nearly $1 billion in marketplace <unk>, our highest quarter ever it has never been more clear that demand for live events is strong and that we are capturing that strength that vivid seats.

In addition, our focus on cultivating buyer loyalty continues to deliver results with repeat rates, increasing and pacing ahead of expectations.

Our strong quarter performance comes as we announced the acquisition of Vegas Dot Com, our second strategic acquisition of the year.

The biggest dot com as a strategic asset that enhances our scale and reach in Las Vegas, the coveted entertainment capital of the U S. While driving substantial Tam expansion and immediate accretion.

I'll walk through these exciting highlights from the quarter in more detail and then I'll turn it over to Larry who will discuss our financials and outlook.

With strong results to date. This year, we are proud to raise our 2023 guidance for the third time.

With 28% <unk> growth. It is evident that consumer demand for live events is healthy and vibrant and that fans increasingly favor and return to our platform as.

As we saw last quarter demand strength continues to be pervasive across categories and is driven by a wide array of performers and teams.

The robust demand we are seeing reflects long term tailwind that will drive strong growth for years to come.

One of those tailwind is the passionate fandom that drive our buyers to show up for their favorite artists and team and to experience it live.

Our engaging and innovative platform is resonating and we see fans increasingly returning to vivek seats.

Our repeat rates have increased significantly and are trending ahead of our forecast when we initially underwrote our investment and loyalty and brand.

With repeat rate benefits that are exceeding expectations. We are excited to lean in and drive further repeat rate acceleration and buyers stickiness.

Repeat orders are accretive and as our investments continue taking coal, we anticipate leverage and margin improvements beginning in 2024.

As part of our brand initiative, we are investing in partnerships with category leaders that help ensure our brand message reaches a targeted audience of sport and music enthusiasts that are highly likely to attend live events.

For example, timed with the start of this NFL season, we launched a brand campaign with our partner ESPN, which aired on Monday night football and reached millions of sports fans.

The AD featured 11 time pro bowler, Larry Fitzgerald Junior and highlighted the 11th free ticket available through vivid seats rewards the only loyalty program in the industry.

The campaign also included digital takeovers on both the ESPN and Bleacher report apps.

We have seen campaigns like this drive long term brand recognition and affinity along with immediate returns as our brand partners direct their users to our platform.

As we spoke about last quarter. We are also growing our roster of team partnerships, which offer a unique and premium experiences that drive differentiation.

MLS partner in some time.

With these partnerships, we will benefit from co branded onsite activation and vivid. These customers will have unique access to premium seating areas bundled with experiences and perks.

A crucial part of brand loyalty lies within our award winning customer service.

This quarter, we were thrilled to once again be recognized by Newsweek for our track record of providing excellence in customer service.

We continue to foster engagement in our ecosystem through both our vivid picks app and vivid seats game center, which is available directly within the vivid seats app.

With vivid seats game center users played daily games to score points and earn credits towards drawings for free tickets.

Game Center engagement and pricing between ticket purchases is resonating and driving desired repeat behavior. We.

We've already found that game center users purchase tickets at a rate 36% higher than non game center App users.

And game centers unique player count continues to grow and accelerate already reaching 175000 users since launch over the summer.

Stickiness on both sides of our marketplace is high and continues to grow.

We continuously innovate our best in class seller tools like Sky box, which is the ERP of choice for the majority of professional sellers.

Our beta phase for Skybox drive our innovative pricing tool continues to drive insights and garner excitement and we look forward to launching the product in early 2020 for sellers.

Sellers are eager to plug into skybox drive, which will leverage the most robust data in the industry and generate valuable insights for sellers.

Turning to our two strategic acquisitions first a brief update on wave dash.

We closed the acquisition in early September and are excited to use learnings from wave that as we look to expand our Tam and other attractive international markets.

Next I'm thrilled to announce our acquisition of Vegas Dot Com, which we purchased in early November for $240 million using a mix of cash on hand and equity.

Is it two sided marketplace Vegas dot com connect those tourists to popular local events, such as search SLA and magic and comedy shows.

Multiple that offers a compelling financial profile with robust EBITDA margin.

Vegas Dot com brings a tam of six plus billion that spans a diverse portfolio of shows tours and attractions in Las Vegas, The entertainment capital of the country.

With millions of live event enthusiasts flocking to and from Las Vegas, each year, we anticipate a nationwide awareness benefit as tourists returned to their home market with the awareness of vivid seats and enrollment in our loyalty program as we integrate the <unk> brand into the Vegas Dot com customer.

Experience.

With our recent acquisitions of Vegas Dot Com and wave Dash, we are building a track record of using our cash flow to invest in strategically accretive Tam accretive and financially accretive assets each.

Each business is a leader in its market and when combined with our leading platform will drive synergistic value that will accelerate our profitable growth both domestically and internationally.

We are excited to integrate these businesses and expand our reach and capabilities as a leading global marketplace.

With that I will turn it over to Larry.

Thanks, Dan our third quarter 2023 marketplace <unk> of $999 million increased 28% year over year.

Total marketplace orders, increasing 19% year over year and average order size increasing 9%.

We delivered our highest quarterly marketplace <unk> to date.

<unk> strong <unk> execution against the market backdrop of broad based demand strength spanning performers in tears.

Our third quarter 2023 revenues of $188 million increased 20% year over year, driven by marketplace <unk> growth.

Our Q3 take rate of 15, 5% is consistent with expectations.

We generated $33 million of adjusted EBITDA in the third quarter up 18% year over year.

We have seen improved efficiency and performance marketing on a year over year basis again, a favorable competitive backdrop.

With repeat rates trending higher and above expectations. We are seeing results from our branded loyalty initiatives and continue to invest accordingly.

We have delivered exceptional cash flow generation with over $110 million in cash from operations year to date.

As we look at our balance sheet. Following the Vegas Dot Com acquisition, we remain flexible and can capitalize on additional compelling growth opportunities as they arise.

Our post acquisition cash balance of $117 million is healthy.

Our debt principal outstanding at $274 million as well.

And our revolver of $100 million is undrawn.

Our net leverage is less than one times, our forward adjusted EBITDA and.

And we anticipate continued strong cash generation.

Our acquisitions this year demonstrate our ability to identify strategic assets and our willingness to deploy our cash to drive long term value.

We now anticipate 2023 marketplace <unk> in the range of $3 75 to $3 9 billion.

Revenues in the range of $685 million to $705 million.

And adjusted EBITDA in the range of $136 million to $142 million.

Our guidance continues to reflect branded partnership investments that we believe will drive attractive long term returns.

We now expect 20% marketplace <unk> growth in 2023.

On top of greater than 30% <unk> growth in 2022.

As broad based demand strength continues well beyond the post pandemic surge we are leaning into these compelling secular trends and seeing our flywheel accelerates.

We expect 2024 marketplace <unk> in the range of $4 two to $4 5 billion approximately double our <unk> from 2019.

We also expect 2020 for revenues in the range of $810 million to $840 million.

In 2024, adjusted EBITDA in the range of $170 million to $180 million.

At the midpoint this represents mid teens marketplace, <unk> and revenue growth.

And 26% adjusted EBITDA growth.

Underlying our initial 2024 outlook is high single digit revenue growth, excluding our Vegas Dot Com acquisition.

With operating leverage and incremental contribution from Vegas Dot com contributing to 26% projected adjusted EBITDA growth.

To wrap between strong operational results and strategic acquisitions. It was a great quarter. We are excited for a strong close of 2023 as we gather momentum for another great year in 2024.

Back to you Sir.

Thanks, Larry.

There has never been a more exciting time for vivek seats.

Between vibrant industry growth continued strategic and operational excellence as well as accelerating progress in driving long term stickiness. The core vivek seeds business is in a great position.

Strengthened by not one, but two strategically accretive Tam accretive and financially accretive acquisitions in 2023, we are teed up for yet another outstanding year in 2024.

With that operator, let's open it up for questions.

Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one from your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please limit to <unk>.

Two questions per analyst please standby, while we compile the Q&A roster.

Our first question comes from Jason Bazinet with Citi. Jason. Please go ahead with your question.

Thanks, so much.

I appreciate the 2024 initial take.

I was wondering Larry if you could just spend a second and maybe.

Parse out sort of.

The M&A contribution from that growth as opposed to your expectations for sort of underlying category growth and market share any sort of broad color.

It would be helpful.

Yes, so I think.

A combination of certainly contributing to the <unk>.

Aggregate results.

As we briefly noted I think we're expecting excluding contribution from Veeva hi.

High single digit top.

Top line growth.

And then.

Some incremental operating leverage beyond that on the EBITDA side.

Against which we believe will be a.

Growing industry environment, but.

Muted growth relative to this year.

Yes, so it's still robust and generally consistent with the long term trends.

Go out two years and meaningfully outperformed our long term trend guidance and so we're expecting a.

Reversion back to the long term trends.

Okay, and just one quick followup you describe the competitive environment is stable I'm, assuming that's year over year is it does it sort of still elevated but stable or you described.

What sort of competitive dynamic because.

They are sort of stable from a from a backward looking long term basis.

Hey, Jason it's Dan.

Thank you.

The competitive environment has always been there and I think what youll see in our results and certainly what we're confident about next year is that our investments both organic and inorganic inorganic are certainly yielding results that I think will continue to allow us to deliver.

About what <unk> seen so far and certainly about our ability to continue to deliver next year.

Okay. That's great. Thank you guys.

Okay.

Please standby for your next question.

Our next question comes from Maria risks with Canaccord.

Maria. Please go ahead with your question.

What would be your key investment priorities and to wanted to what extent is your investment cadence predicated on the macro environment and then I have a quick follow up.

Yes.

Yes, I would characterize the investment.

As consistent with what we've previously put forward a foe.

On driving brand awareness brand affinity and compelling folks to become repeat users on the platform.

We called out last quarter, some incremental opportunities that we saw across some some team partnerships.

You saw a couple of new ones.

This quarter as well.

So some modest incremental dollar investment.

But.

Generally the same quantum of investment same form of investment and what we're really focused on is continuing to see that yield.

Yield that we've been seeing all of the forward leaning metrics and expect to continue seeing progress accordingly.

Yeah, Hey, Maria fan I think look I think we're always looking for great partnerships that will enable.

Consumers to transact and transact seamlessly and easily and I think Paypal is certainly just another example, we partnered with <unk> as well and we continue to look to expand.

Got it thank you so much.

And our next question.

Our next question comes from Curtis Nagle of Bank of America Curtis. Please go ahead with your question.

Terrific, Thanks very much.

So.

So maybe I'll start with just going back to to Vegas, just kind of curious how the deal came to you and I guess.

Why.

This is the best partner for Vegas, and kind of vice versa.

A follow up.

Sure Hey, Curtis it's Dan.

It starts from and we've talked a lot about this you know in the past I think we're pretty.

We stand in a really good spot with a balance sheet that has been strong on the cash front, great public currency and I think we've always been.

<unk> on the inorganic front looking for opportunities.

That our Tam accretive strategically accretive financially accretive.

We deployed some of that capital earlier this year with wave Dash, which we're very excited about continued looking for assets that again meet our criteria for acquisition, we ran into the.

The team at Vegas, Dot com and that asset, which again checked all of our boxes. In fact had its really excited when you look at the nature of that business as we look at it in Vegas.

Market authority massively comprehensive event inventory of shows primarily shows I might add.

Attractions tours.

The top destination for millions and millions of tourists every year, we think they're great tailwind.

In Vegas with I think you look at the inaugural Formula One race that's happening there. This month, if you look at the Super Bowl coming next year.

Standing up artist residencies, we love the tailwind there and when you think about the nature of.

The consumers that come there visiting and as we look at a lot of the benefits that our platform brings from a <unk> perspective, you've heard us talk quarters now about I think our investments in the platform and driving increased conversion and driving increased repeat rates and engagement. We think that's just a wonderful synergistic opera.

<unk>, where we can.

Use Vegas domain authority in Vegas to acquire all of these visitors introduce them to the <unk> brand. The <unk> loyalty program and have them go back to their home markets.

And per diem that credit so all in all I'd say, we're really excited again, the rationale there and it certainly fits all of our criteria on increasing Tam being strategically and financially accretive at the same time.

Okay.

That makes sense, so maybe just kind of.

Yep.

Following up on that question, so I get the point in terms of.

To increase national awareness vivid get all the tailwind in terms of Vegas next year.

In terms of.

Anything else in mind too.

To grow in market Vegas revenue, whether it's customer acquisition or marketing or just integration with your own platform.

To grow I think you said it.

$6 million term something like that.

Accelerating customer acquisition, we look at all the multiple strategic partnerships that Vegas Dot Com has and are excited to add that our portfolio of partnerships.

Uh huh.

I think when you look at that certainly we are going to be aggressive in terms of what we can drive there.

I'll be happy to provide an update as we start to execute on some of the synergies that we see in market.

Okay. Thank you.

Okay.

Please standby for our next question.

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

Thomas Please go ahead with your question.

Great So San Larry Congrats on the quarter and the transaction one question and one follow up further.

For the question.

I wanted to ask a question I'm often asked by investors. What is your current buyback authorization what are your thoughts on increasing it given where shares are trading in today's strong results and guidance and then lastly, what are thoughts on always having a buyback authorization in place.

Our shares are trading.

Yes, Thanks, Tom we don't currently have an authorization in place.

It's certainly.

Sure.

Concept that we are always considering as a form of of investment are returning of capital I think in this period.

Stan outline the criteria, we have for strategic M&A, which is a high bar and there are many periods, where where that bar is not met it happens to be the case.

Each of the last two quarters, we've had that bar.

With both international and now domestic Tam expansion opportunity that was financially accretive.

And so in that environment, we chose to so we went into a couple of assets that we think will drive a lot of long term.

Cash flow long term growth opportunity and platforms for further growth above and beyond.

Repurchasing of our shares.

We're going to generate a lot of cash flow next year, assuming we're able to achieve our guidance and so that.

The catch all refill with powder quickly.

In which case I think your questions, we'll come to the forefront again.

Great and then for my follow up.

You called out you only live once for yellow is something pressuring spending on his marketplace. When it reported in the third quarter. So I think you are kind of uniquely qualified to answer the following.

When you look at what's going on in live events, how do you think about yellow versus fomo, if yellow is consumer spending thousands for Taylor Swift era's concert tickets and fomo is.

Tumor spending hundreds of thousands for chief tickets, because Taylor Swift is attending the game how do you think about yellow versus promo in today's trends in live events.

Hey, Tom I mean first I'd say, we are staunchly impressed by your command of the acronyms that exist out there.

Look I think they apply strongly to our category both the yellow in pharma as we as we continue to see strength.

When you look at our average order size, which we always demarcate as a great indicator of how much demand is outpacing supply you can look at this quarter.

Still 10% up on a year over year basis.

When you look at that long term CAGR, which we provide in our.

Investor presentation, you can see it's really retracted to the mean and that that's in the face of I think a lot of sentiment around consumer spending we're certainly seeing I think last quarter, we had questions on.

Loan debt repayment and all of these so we understand I think some of the challenges that are out there in terms of.

Consumers and where they are choosing to spend their dollars, but as it pertains to our category. I think we have continued to see really strong resiliency and I think we can attribute that to a combination of yellow and fomo, both working towards I think all the live events that are occurring today.

Thank you Dan Thank you Larry.

Thanks, Bob Please standby for your next question.

Our next question comes from Dan <unk> of the Benchmark Company Dan. Please go ahead with your question.

Thanks, Good morning, I'll Echo my congrats on the strong quarter, guys and just maybe a couple Larry since no one's asked yet I mean, we are.

Obviously saw it creep.

Crazy strong outlooks from live nation last week and incredibly strong.

Conference Fleet for the conference.

Yeah, let's try that again I'm.

Turning to strong concert slate for next year and I guess.

Just trying to think about how youre thinking about maybe ticket prices given that youre going to comp against beyond say and Taylor.

In <unk> and <unk> of next year.

And I know that you guys are always conservative in its Q3, giving you 2024 outlook, but just any kind of color as we should be thinking given what should be a lot more events and you guys expanding frankly, your Tam both in sports and concerts.

Yes.

Yes, Thanks, Dan.

Hey, guys you noted.

We have.

Seem consistent strength in both the supply and demand side, particularly in concerts.

Nothing that would give us.

Reason for concern and our performance to date.

We certainly see the headlines, but it's not flowing through to the numbers that we can see that are different than what any other macro forecast would be looking at.

Yes. It was touched on this before <unk> generally have their finger on the pulse of the following year's pipeline before we will.

We'll find out a lot more in Q4 as it relates to specific Axa names.

But we do here.

Here the same strength that you are here, which gives us.

Confidence heading into next year.

We reiterate it was awesome, having Taylor Swift and beyond say performing it was great to see strength in their tours.

Taylor was record setting I would still characterize we havent really robust portfolio. So long as there are.

AOS performers going out there that portfolio strength.

We think will help us.

Yes, it's not to say that.

There won't be any impact as we lap year over year comparisons, but we will be able to grow and deliver robust results against that.

Okay.

Stan unfair question since you just announced Vegas acquisition, but a lot of the.

Home component.

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