Q4 2023 Vivid Seats Inc Earnings Call

[music].

Okay.

Yeah.

Operator: Good day, and thank you for standing by. Welcome to the Vivid Seats fourth quarter 2023 earnings webcast and conference call. At this time, all participants are in a listen only mode.

Good day, and thank you for standing by and welcome to the visit seats fourth quarter 2023 earnings webcast and 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 on your telephone you have been here and I didn't need it.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising you that your hand is raised.

The message you're having just 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 speaker today Casey Affleck. Please go ahead.

Operator: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kate. Please go ahead.

Good morning, and welcome to Vivek <unk> fourth quarter 2023 earnings Conference call I'm, Kate Afric head of Investor Relations activity.

Kate Copouls: Good morning, and welcome to Vivid Seats' fourth quarter 2023 earnings conference call. I'm Kate Africk, head of investor relations at Vivid Seats. Joining me today to discuss Vivid Seats results are Stan Chia, Chief Executive Officer, and Larry Fey, Chief Financial Officer. By now, everyone should have access to our fourth 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 Vivid Seats' website at investors.vividseats.com.

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

I know everyone's drug access to our fourth 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 Vivek.

Right.

Investors got vivid state Dot com.

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

Kate Copouls: During the course of today's call, management may make forward-looking statements within the meaning of federal securities law. Such forward-looking statements are subject to risk and uncertainty, including those described in our earnings press release, our most recent annual report on Form 10-K, and our other filings with the SEC. On today's call, we will refer to adjusted EBITDA, adjusted EBITDA margin, and cash generation, which are non-GAAP financial measures that provide useful information for our investors. To the extent reasonably available, a reconciliation of these non-GAAP financial measures to their corresponding GAAP measures can be found in our earnings press release and supplemental earnings slide. And now, I would like to turn the call over to Stan.

These forward looking statements are subject to risks and uncertainties, including those described in our earnings press release, our most recent annual report on Form 10-K, and our other filings with the SEC.

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

To the extent reasonably available a reconciliation of these non-GAAP financial measures to their corresponding GAAP measures can be found in our earnings press release and supplemental earnings slides.

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

Stanley Chia: Good morning, everyone, and thank you for joining us today. 2023 was a transformational year for Vivid Seats, which we were pleased to wrap up with a strong fourth quarter. After great years in 2021 and 2022, the North American live event market continued with robust and durable supply and demand. Throughout 2023, we seized upon market strength while furthering our strategic objectives that laid the foundation for our growth for years to come. We drove innovation, launching new products for both buyers and sellers, and continue to cultivate awareness and affinity for our marketplace, as demonstrated by our mix of repeat orders climbing to almost 60%. Importantly, we completed two strategically and financially accretive acquisitions that drove substantial TAM expansion and unlocked additional avenues for durable double-digit growth.

Good morning, everyone and thank you for joining us today.

2023 was a transformational year for <unk>.

We were pleased to wrap with a strong fourth quarter.

After great years in 2021, and 2020 to the North American live event market continues with robust and durable supply and demand.

Throughout 2023, we seized upon market strength, while furthering our strategic objectives that lay the foundation for our growth for years to come.

We drove innovation launching new products for both buyers and sellers and continue to cultivate awareness and affinity for our marketplace.

Demonstrated by our mix of repeat orders climbing to almost 60%.

Importantly, we completed two strategically and financially accretive acquisition that drove substantial Tam expansion and unlock additional avenues for durable double digit growth.

All of this was accomplished while we generated very strong cash flow, which will enable future capital deployment and value creation for shareholders.

Stanley Chia: All of this was accomplished while we generated very strong cash flow, which will enable future capital deployment and value creation for shareholders. Today, I'll walk you through our financial highlights and then discuss the progress we have made on our long-term strategic objectives. Then, Larry will walk you through our financial results in more detail.

Today I'll walk you through our financial highlights and then discuss the progress we delivered on our long term strategic objectives.

Larry will walk through our financial results in more detail.

Starting with the financial highlights for 2023, we are proud to have delivered $3 9 billion of marketplace <unk> $713 million of revenues and $142 million of adjusted EBITDA, driving nearly 25% top and bottom line growth and so.

Stanley Chia: Starting with the financial highlights for 2023, we are proud to have delivered $3.9 billion in marketplace GOV, $713 million in revenues, and $142 million in adjusted EBITDA, driving nearly 25% top and bottom line growth and substantially outperforming our original forecast and guidance for the year. As we look at the live event industry, the North American market continues to hum with healthy growth and secular trends that we expect will drive growth for years to come. As we've discussed previously, consumers crave and prioritize live experiences, and artists are eager to tour as their primary source of income, creating a robust environment for both demand and supply.

Stanchion outperforming our original forecast and guidance for the year.

As we look at the live event industry, the North American market continues to Hum with healthy growth and secular trends that we expect will drive growth for years to come.

As we've discussed previously consumers crave and prioritize live experiences and artists are eager to tour as their primary source of income, creating a robust environment for both demand and supply.

Our 2023 results reflect industry strength that we amplified with our strategy and.

Stanley Chia: Our 2023 results reflect industry strength that we amplified with our strategy. Encouraging repeat behavior is fundamental to our strategy, whether that is through our loyalty program, engagement initiatives, differentiated experiences, or excellent customer service, which was validated by Newsweek once again this year. The most telling KPI for this strategy is our mix of repeat orders versus new orders, which stood at 47% repeat orders in 2018 before these initiatives.

Encouraging repeat behavior is fundamental to our strategy whether that is through our loyalty program engagement initiatives differentiated experiences or excellent customer service is validated by Newsweek once again this year.

The most telling kpis for this strategy is our mix of repeat orders versus new.

Which stood at 47% repeat orders in 2018 before these initiatives.

Stanley Chia: After climbing to 56% in 2022, we've now reached 59% repeat mix in 2023, shifting 300 basis points towards sticky and more profitable repeat orders. As we continue cultivating brand awareness and affinity, we expect to mix even higher into repeat orders and drive substantial marketing leverage over the next several years. Our focus on engagement initiatives contributes to this shift, and we made substantial progress this year with our launch of Game Center within Vivid Seats. We introduced Game Center at mid-year and rapidly gained users who play daily games and score points towards promo codes or drawings for free tickets. Game Center users engage frequently, opening the Vivid Seats app multiple times per month on average, and almost always browse tickets before or after playing in Game Center.

After climbing to 56% in 2022, we've now reached 59% repeat mix in 2023, shifting 300 basis points towards sticky and more profitable repeat orders.

As we continue cultivating brand awareness and affinity we expect the mix, even higher into repeat orders and drive substantial marketing leverage over the next several years.

Our focus on engagement initiative contributes to this shift and we made substantial progress this year with our launch of game center within the <unk> App.

We introduced game center at mid year, and rapidly gained users who play daily games and score points towards promo codes or drawings for free tickets.

Game Center users engage frequently opening the vivid seats app multiple times per month on average and almost always browsed ticket before or after playing and game center.

We are already seeing game center used translating to purchases.

Stanley Chia: We are already seeing Game Center use translating to purchase. Game Center now has more than 260,000 users, and those users purchase tickets at a faster rate than non-Game Center app users, which is the exact behavior we seek to drive. In 2023, we expanded our roster of team partnerships across multiple leagues to offer unique and exciting forms of engagement with our buyers. Through team partnerships, we offer premium game-day experiences and unique opportunities like exclusive early access to pregame batting practice at stadiums, all-inclusive upscale suites, guaranteed Jumbotron time, and surprise appearances from Hall of Famers, all exclusively available through Vivid Seats.

<unk> Center now has more than 260000 users and those users purchase tickets at a faster rate than non game center App users, which is the exact behavior, we seek to drive.

In 2023, we expanded our roster of team partnerships across multiple leagues to offer unique and exciting forms of engagement with our buyers.

Through team partnerships, we offer premium game day experiences and unique opportunities like exclusive early access the pregame batting practice at stadiums, all inclusive upscale suites guaranteed jumbo Tron time and surprise appearances from hall of Famers all exclusively available.

<unk> through vivid seats.

Stanley Chia: Our industry-leading loyalty program, Vivid Seats Rewards, offers compelling value and a reason to choose Vivid Seats. The message, buy 10 tickets, get one free, along with our excellent customer service, resonates with buyers. In fact, our latest NPS data shows that an unbiased panel of consumers is substantially more likely to recommend Vivid Seats than any other scaled ticketing marketplace. An equally important element within our broader strategy is maintaining our leading position with sellers. Skybox is the ERP of choice for the majority of professional sellers, and in 2023, we continue to improve our best-in-class seller product lineup. Skybox Drive is nearing the end of its beta phase, during which we have continued to onboard beta users and incorporate vital feedback into the product we plan to bring to market.

Our industry, leading loyalty program, David seats rewards offers compelling value and reason to choose vivid seats.

The message by 10 tickets get one free along with our excellent customer service resonates with buyers.

In fact, our latest NPS data shows that an unbiased panel of consumers is substantially more likely to recommend <unk> than any other scaled ticketing marketplaces and.

And equally important elements within our broader strategy is maintaining our leading position with sellers.

Skybox is the ERP of choice for the majority of professional sellers and in 2023, we continue to improve our best in class seller product lineup.

Skybox drive is nearing the end of its beta phase during which we have continued to onboard beta users and incorporate vital feed back into the product we plan to bring to market. We are excited to fully launched skybox drive and are on track to do so later this year.

Stanley Chia: We are excited to fully launch Skybox Drive and are on track to do so later this year. With our Vivid Seats flywheel spinning in 2023, we have also substantially increased our TAM and enhanced the financial profile of our business with two compelling strategic acquisitions. First, with our acquisition of WaveDash in Japan, we began to unlock an estimated incremental $40 billion of global ticketing TAM. Then, with our acquisition of Vegas.com, we unlocked another $6 billion of venue-direct TAM in the entertainment capital of the United States.

With our vivid feeds flywheel spinning in 2023, we also substantially increased our Tam and enhance the financial profile of our business with two compelling strategic acquisitions.

First with our acquisition of wave Dash in Japan, we began to unlock an estimated incremental 40 billion of global ticketing Tam.

And then with our acquisition of Vegas Dot Com, we unlocked another $6 billion of venue direct Tam in the entertainment capital of the United States.

As we integrate these businesses the pathways to driving synergistic upside from each have become even more clear and compelling.

Stanley Chia: As we integrate these businesses, the pathways to driving synergistic upside from each have become even more clear and compelling. While it's still early days for Vegas.com, we see great potential and multiple avenues. We've begun optimizing inventory selection across our sites and anticipate generating revenue synergies this year. Another exciting intermediate-term opportunity is the use of Vegas.com as a profitable customer acquisition vehicle that also funnels live event enthusiasts into the Vivid Seats ecosystem. Since last quarter, we've become incrementally excited about the international opportunity ahead of us and have begun building the infrastructure to go live in new markets. Secular tailwinds driving growth in North America are echoing abroad.

While it's still early days for Vegas Dot Com, we see great potential and multiple avenues for synergies with.

We've begun optimizing inventory selection across our sites and anticipate generating revenue synergies this year.

Another exciting intermediate term opportunity is the use of Vegas dot com as a profitable customer acquisition vehicle that also funneled live event enthusiasts into the <unk> ecosystem.

Since last quarter, we've become incrementally excited about the international opportunity ahead of us and have begun building the infrastructure to go live in new markets.

Secular tailwind driving growth in North America are echoing abroad, we see exciting opportunity to deliver incremental growth and profitability for years to come as we expand into additional geographies.

Stanley Chia: We see exciting opportunities to deliver incremental growth and profitability for years to come as we expand into additional geography. Because of this growing excitement, we are accelerating our investment in international expansion this year, and believe these investments provide additional pathways to delivering double-digit growth for years to come. Before Larry turns to the financial results, I want to reflect on what we achieved this year and where we are going in 2024 and beyond. In 2023, we grew our top and bottom lines by nearly 25%, significantly expanded our TAM, and furthered our objective to be the marketplace of choice for both sellers and buyers. We've also added incremental capabilities, such as Game Center and Skybox Drive, continue to enhance our loyalty program, and we were once again recognized by Newsweek as having one of the best customer service experiences.

Because of this growing excitement we are accelerating our investment into international expansion. This year and believe these investments provide additional pathways to delivering double digit growth for years to come.

Before Larry turns to the financial results.

Want to reflect on what we achieved this year and where we're going in 2024 and beyond.

In 2023, we grew top and bottom line by nearly 25%.

Significantly expanded our Tam and furthered our objective to be the marketplace of choice for both sellers and buyers.

We also added incremental capabilities, such as game Center and Skybox drive.

To enhance our loyalty program and were once again recognized by Newsweek as having one of the best customer service experiences.

We believe that the foundation, we laid in 2023 reinforces our ability to deliver sustained double digit growth. We enter 2024 with a 63 billion global ticketing Tam and multiple levers to continue driving durable growth and long term value.

Stanley Chia: We believe that the foundation we laid in 2023 reinforces our ability to deliver sustained double-digit growth. We enter 2024 with a 63 billion global ticketing TAM and multiple levers to continue driving durable growth and long-term value. Our growth opportunity is compelling, our value proposition is resonating, and our ample cash flow affords us the ability to continue delivering value to shareholders, including through both strategic M&A and share repurchase. With that, I will turn it over to Larry. Thanks, Pam.

Our growth opportunity is compelling our value proposition is resonating and our ample cash flow affords us the ability to continue delivering value to shareholders, including through both strategic M&A and share repurchases.

With that I will turn it over to Larry.

Thanks, Dan.

I am pleased to share our financial results for an outstanding 2023, which we closed out with a great fourth quarter.

Lawrence C. Fey: I'm pleased to share our financial results for an outstanding 2023, which we closed out with a great fourth quarter. For full year 2023, our marketplace GOV of 3.9 billion increased 23% year over year, driven by a 19% increase in total marketplace orders. Robust growth in 2023, on top of 33% marketplace GOV growth in 2022, reflects a healthy end market and strong execution. Fourth quarter marketplace GOV of $1.1 billion increased 31% year over year, fueled by a 36% increase in total marketplace orders. Average order size was $374 in Q4 2023 versus $388 in Q4 2022, with that delta driven by the impact of acquisitions. In the fourth quarter, average order size was up 3% year-over-year.

For full year 2023, our marketplace to year over year of $3 9 billion increased 23% year over year, driven by a 19% increase in total marketplace orders.

Robust growth in 2023 on top of 33% marketplace <unk> growth in 2022.

Flex a healthy end market and strong execution.

Fourth quarter marketplace, <unk> of $1 1 billion increased 31% year over year.

Fueled by a 36% increase in total marketplace orders.

Average order size was $374 in Q4 2023 versus $388 in Q4 of 2022.

With that delta driven by the impact of acquisitions.

Excluding the impact of acquisitions fourth quarter average order size was up 3% year over year.

We expect a similar AOS dynamic to persist into 2024 due to our completed acquisitions.

Lawrence C. Fey: We expect a similar AOS dynamic to persist into 2024 due to our completed acquisition. Excluding acquisitions, our marketplace GOV organically grew double digits in the fourth quarter. As we fully integrate Vegas.com and WaveDash, standalone tracking will become impractical.

Excluding acquisitions, our marketplace <unk> organically grew double digits in the fourth quarter.

As we fully integrate Vegas dot com and waved ash standalone tracking will become impractical and therefore this will be our last disclosure decomposing growth with and without these acquisitions.

Lawrence C. Fey: And therefore, this will be our last disclosure, decomposing growth with and without these acquisitions. Our full year 2023 revenues of $713 million increase 19% year-over-year, driven by marketplace GOV growth. Similarly, our fourth-quarter revenues of $198 million increased 20% year-over-year. Our take rate was 15% in the fourth quarter, and we continue to expect take rates of 15.5% or higher in 2024, albeit with quarterly fluctuation to be expected. In the fourth quarter, we generated $35 million of adjusted EBITDA, bringing full year 2023 adjusted EBITDA to $142 million, which was up 25% year over year. We delivered 100 basis points of adjusted EBITDA margin improvement in 2023, as we saw benefits from our increasing share of repeat orders. Turning to cash flow, we generated over $116 million of cash in 2023, and we expect strong cash generation to continue in 2024. Our model benefits from limited capex and negative working capital, which supports strong EBITDA to cash conversion.

Our full year 2023 revenues of $713 million increased 19% year over year, driven by marketplace GOP growth. Similarly.

Similarly, our fourth quarter revenues of $198 million increased 20% year over year.

Our take rate was 15% in the fourth quarter and we continue to expect take rates of 15, 5% or higher in 2024, albeit with quarterly fluctuation to be expected.

In the fourth quarter, we generated $35 million of adjusted EBITDA, bringing full year 2023, adjusted EBITDA to $142 million.

Which was up 25% year over year.

We delivered 100 basis points of adjusted EBITDA margin improvement in 2023, as we saw benefits from our increasing share of repeat orders.

Turning to cash flow, we generated over $116 million of cash in 2023.

We expect strong cash generation to continue in 2024.

Our model benefits from limited Capex and negative working capital, which supports strong EBITDA to cash conversion.

This robust cash flow profile provides the foundation for strategic capital deployment.

Lawrence C. Fey: This robust cash flow profile provides the foundation for strategic capital deployment. In 2023, our capital deployment strategy featured both strategic acquisitions and share repurchase. We deployed $213 million of cash on financially accretive acquisitions, and added 46 billion of TAM in the process. In 2023, we also repurchased 3 million of our own shares.

In 2023, our capital deployment strategy featured both strategic acquisitions and share repurchases.

We deployed $213 million of cash on financially accretive acquisitions.

And added 46 billion of Tam in the process.

In 2023, we also repurchased $3 million of our own shares.

Lawrence C. Fey: Despite these significant investments, we enter 2024 with a cash balance of $125 million, and net leverage of less than one times forward adjusted EBITDA. Today, we are pleased to announce that our board has authorized a new $100 million share purchase program, reflecting our view that our share price has not matched our strong business portfolio.

Despite these significant investments we enter 2024 with a cash balance of $125 million.

Net leverage of less than one times forward adjusted EBITDA.

Today, we are pleased to announce that our board has authorized a new $100 million share repurchase program.

Letting our view that our share price has not matched our strong business performance.

In terms of 2024 outlook, we are maintaining our marketplace <unk> guidance of $4 two to $4 5 billion and our revenue guidance of $810 million to $840 million at 2024 concert tour announcements.

Lawrence C. Fey: In terms of 2024 outlook, we are maintaining our marketplace GOV guidance of $4.2 to $4.5 billion and our revenue guidance of $810 to $840 million. 2024 concert tour announcements in late Q4 and early Q1 have been consistent with expectations. As Stan mentioned, we intend to make additional investments in 2024 in pursuit of attractive international markets. As such, we now expect 2024 adjusted EBITDA in the range of $160 to $170 million.

<unk> Q4, and early Q1 have been consistent with expectations.

As Stan mentioned, we intend to make additional investments in 2024 and pursuit of attractive International Tam.

As such we now expect 2024 adjusted EBITDA in the range of $160 million to $170 million.

At the midpoint of our guidance, we expect to grow both revenues and adjusted EBITDA by 16% in 2024.

Stanley Chia: At the midpoint of our guidance, we expect to grow both revenues and adjusted EBITDA by 16% in 2024. With strong secular growth in North America, enhanced by international expansion and strategic M&A, we are confident in our ability to deliver sustained double-digit annual growth. Back to you.

With strong secular growth in North America enhanced by international expansion and strategic M&A.

We are confident in our ability to deliver sustained double digit annual growth.

Thank you Stan.

Stanley Chia: Thanks, Larry. 2023 was a pivotal year for Vivid Seats, and we couldn't have done it without our talented team and the high-performance culture that we have built, which we are proud to say was recognized again as one of the best places to work in 2024. Before we open it up to questions, I'd like to highlight an upcoming transition for our leadership. After a great five-year run, our Chief Technology Officer, John Wagner, is planning to retire in the first half of this year.

Thanks, Larry.

2023 was a pivotal year for vivid seats, and we couldnt have done it without our talented team and the high performance culture that we have built which we are proud to say it was recognized again as one of the best places to work in 2024.

Before we open it up to questions I'd like to highlight an upcoming transition for our leadership team.

After a great five year run our Chief Technology Officer, John Wagner is planning to retire in the first half of this year.

Stanley Chia: Accordingly, he will transition into a technical advisor role to ensure a smooth transition. I want to sincerely thank John for his leadership and friendship and to recognize his many integral contributions to Vivid Seats. We are grateful for his commitment over the past five years and for continuing to provide his valued perspective as a technical advisor through this planned transition. As we look forward, we are excited to welcome Stefano Langenbacher later this month as our new Chief Technology Officer. Stefano has extensive expertise leading technology teams for high-performing, consumer-facing e-commerce brands, joining us most recently from Suitsupply, where he served as CTO for the past six years.

Accordingly, he will transition into a technical advisor role to ensure a smooth transition.

Want to sincerely, thank John for his leadership and friendship and to recognize his many integral contributions to Vivek <unk>.

We are grateful for his commitment over the past five years and for continuing to provide is valued perspective as a technical adviser through this planned transition.

As we look forward we are excited to welcome stephano longer Bakr later this month as our new Chief Technology Officer, Silvano has extensive expertise leading technology teams for high performing consumer facing E Commerce brands joining us most recently from suite supply where he served as <unk>.

So for the past six years.

His experience optimizing global platforms and international Tech stack, while fostering innovation will be invaluable as we capture the international opportunity ahead of US Stephano is a seasoned technology executive and as a results driven mindset makes him an ideal leader to drive our technology development at such a P.

Operator: His experience optimizing global platforms and international tech stacks while fostering innovation will be invaluable as we capture the international opportunity ahead of us. Stefano is a seasoned technology executive, and his results-driven mindset makes him an ideal leader to drive our technology development at such a pivotal moment in our journey as a global business. To wrap up, looking back at 2023, we are incredibly proud to have delivered nearly 25% top and bottom line growth while furthering our strategic objectives that enhance our ability to deliver sustained double-digit growth, Strong Profitability, and Robust Cash Flow. We are excited to continue our track record of delivering shareholder value in 2024, including through strategic M&A and share repurchase. With that, Operator, let's open it up for questions. Thank you. As a reminder, to ask a question at this time, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Pivotal moment in our journey as a global business.

To wrap looking back at 2023, we are incredibly proud to have delivered nearly 25% top and bottom line growth, while furthering our strategic objectives that enhance our ability to deliver sustained double digit growth.

Strong profitability and robust cash flow.

We are excited to continue our track record of delivering shareholder value in 2024, including through strategic M&A and share repurchases.

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

Thank you as a reminder to ask a question at this time. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

We ask that you please limit yourself to two questions one moment, while we compile our Q&A roster.

And our first question is going to come from the line of Ralph <unk> with William Blair. Your line is open. Please go ahead.

Ralph Edward Schackart: We ask that you please limit yourself to two questions. One moment while we compile our Q&A. And our first question is going to come from the line of Ralph Schackart with William Blair. Your line is open. Please go ahead.

Hi, good morning, Thanks for taking the question.

Just in terms of some of the accelerated investments you're talking about for international maybe you could provide a little bit more color about that.

What's attractive about it.

Is now the right timing.

Then.

Stanley Chia: Good morning, and thanks for taking the question. Just in terms of some of the accelerating investments you talked about for international, maybe to provide a little bit more color about that, you know, what's attractive about it, you know, why is now the right timing, and then any more color you could add on that. And then, secondly, just if you could give an update on the competitive dynamics that you've talked about on previous calls as well. Thank you. Hey Ralph, good morning.

Any more color you could add on that and then secondly, just if you could give an update on the competitive dynamics that you've talked about that in previous calls as well. Thank you.

Hey, Ralph good morning.

Hey, Luke.

As we look at the World and we've always said it and I think we we look for are really attractive and accretive opportunities.

Invest.

As we looked at that international landscape and certainly others, who are participating can certainly corroborate. This I think our excitement level has increased from when we first started looking at it.

A couple of points like that I'd hate certainly we think the international pent up demand was after.

Kind of a little bit later than what we saw here in the U S. So I think we're certainly seeing that acceleration pick up there.

Stanley Chia: Hey, look, you know, as we look at the world, and we've always said it, you know, I think we look for really attractive and creative opportunities to invest. You know, and I think as we look at that international landscape, and certainly others who are participating can certainly corroborate this, I think our excitement level has increased from when we first started looking at it. You know, a couple points like that, I think I'd hit, certainly, we think the international pent-up demand was after, kind of a little bit later than what we saw here in the US, but I think we're certainly seeing that acceleration pick up there. We continue to see evolution across multiple poles there as well, which I think leads us to believe that that opportunity is there.

We continue to see evolution.

Cross multiple poles, there as well, which I think lead us to believe that that opportunity is there and thus we feel really excited about.

Both continuing to hold our.

I think top line trajectory and that we put out as well as just frankly, just increase our investment to take advantage of that opportunity. So.

Excited to do that and continue delivering.

Even with that 16% EBITDA growth on a year over year basis.

Now on the competitive front I think look when we look at that front I think as we've said before there's going to be a lot of ebbs and flows of competition I think.

Our perspective is we continue to invest in differentiated ecosystem things that allow user stickiness to our platform.

We continue to do that and see great progress in things like our repeat order mix moving up to almost 60%.

Now, which gives us again, a lot of confidence to be able to compete and compete profitably.

And Ralph if I can add one thing I would just on the European or international opportunity broadly I would say thats a reflection of the strength we've seen in North America or live events is not just in North America phenomenon that growth has been global and as you've seen some of that very meaningful growth that we've all enjoy.

Lawrence C. Fey: And thus, we feel really excited about both continuing to hold our, you know, I think top line trajectory that we put out, as well as just frankly, just increase our investment to take advantage of that opportunity. So excited to do that and continue delivering, you know, even with that 16% EBITDA growth on a year over year basis. Now, on the competitive front, you know, I think, look, when we look at that front, I think, as we've said before, there's going to be a lot of ebbs and flows of competition. I think, our perspective is we continue to invest in a differentiated ecosystem, things that allow user stickiness to our platform. I think we continue to do that and see great progress, things like, you know, our repeat order Now, which gives us again a lot of confidence to be able to compete and compete profitably. And Ralph, if I can add one thing, I would just on the European or international opportunity broadly, I would say that's a reflection of the strength we've seen in North America. Live events are not just a North America phenomenon; that growth has been global.

And the three year subsequent to the pandemic it's created.

Size of opportunity, that's meaningfully larger than it's ever been and it's sort of reached that critical mass where we thought it was worthy of a meaningful focus on investment. So we think it's exclusively positive exciting moment.

Alright, Thanks, Dan Thanks, Larry.

Thank you and one woman is clean move onto our next question.

And our next question is going to come from the line of Marine groups with Canaccord. Your line is open. Please go ahead.

Great Good morning, and thanks for taking my questions.

First could you share maybe a little bit more color on how consumers are engaging with your loyalty program now that the new format has been in market for a couple of years and supported by brand messaging you talked about increased sort of.

Christian with Peter what I said, 60%, but it would be great to hear a little bit more color on that.

Yeah, Hey, Maria.

Yes, I think it starts from as you said you know I think one of our key Differentiators has been that loyalty program, we've been out there now.

With this revised message buy 10 get one free and frankly beyond that message I think it has been surrounded if you will by multiple things, whether how we engage with partnerships to drive really unique differentiated experiences. If you are part of our loyalty program like.

Our speakeasy at Dodger stadium or guaranteed Jumbo Tron time.

Lawrence C. Fey: And as you've seen some of that, you know, very meaningful growth that we've all enjoyed in the year subsequent to the pandemic, it's created a size of opportunity that's meaningfully larger than it's ever been. And it's sort of reached that critical mass where we thought it was worthy of meaningful focus and investment. So we think it's exclusively positive and exciting. Great. Thanks, Dan. Thanks, Lurk.

With the Kings. So I think we've continued to see all of that driving one as we've talked about increasing mix of repeat orders right up almost 12% to 13 100 basis points. Since we started the program and as a reminder, each one of those orders significantly more profitable and sticky.

Then a new order when we then look across the other ecosystem investments that we make to keep them there.

Our game Center.

Program right, where we've got that now 260000 users almost no marketing to acquire them in also driving accelerated purchase frequency.

Maria Ripps: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Maria Ripps with Canaccord. Your line is open. Please go ahead. Good morning and thanks for taking my question. First, could you share maybe a little bit more, Carla, on how consumers are engaging with your loyalty program now that the new format has been in the market for a couple of years and is supported by brand messages? You talked about increasing repeat orders by 60%, but it would be great to hear a little bit more color. Yeah. Hey Maria.

And then frankly, when you look at the brand channels and the investments you can certainly see the creative oriented around.

Royalty being a unique proposition that is differentiated and we certainly see those campaigns performing and driving increased purchase propensity as well.

Great and then.

Now that you've operated that goes dot com for a few months can you maybe just talk about your ability to cross promote co brand and sort of bringing new customers to the <unk> platform.

Yes, I think we are it's still early days I think we are pretty excited about the opportunity to do that and I think we.

Stanley Chia: Yeah, I think it starts from, as you said, I think one of our key differentiators has been that loyalty program. We've been out there now, you know, with this revived message, buy 10, get one free. And frankly, beyond that message, I think it has been surrounded, if you will, by multiple things, whether how we engage with partnerships to drive really unique differentiated experiences, if you are part of our loyalty program, like, you know, our speakeasy at the Dodgers Stadium or guaranteed Jumbotron time, you know, with the Kings. So I think we've continued to see all of that driving one, as we've talked about increasing the mix And as a reminder, each one of those orders is significantly more profitable and sticky than a new order.

We have already started with some of that cross pollination, whether it is across the inventory that now we can surface across multiple platforms, whether that is in I think our core thesis of Vegas dot com being a profitable customer acquisition engine that we can funnel users as they return to their homes in.

To the ecosystem of vivid seats with the rewards with game Center.

We are early days, but we are certainly quite bullish in terms of the early signs that we're seeing there.

Got it. Thank you so much for the color.

Okay.

Thank you and one moment as we move on to our next question.

And our next question is going to come from the line of Kurt Nagle with Bofa. Your line is open. Please go ahead.

Alright, great. Thanks, very much for taking the question.

I guess, one first one for Larry just could you walk through the cadence of <unk> EBITDA.

EBITDA for the year, just looking like a lot of noise, obviously or from pieces last year, you had the lowest <unk>, but highest EBITDA margin, presumably that's going to kind of.

Stanley Chia: When we then look, you know, across the other ecosystem investments that we make to keep them there, our Game Center program, right where we've got that now, 260,000 users, almost no marketing to acquire them, also driving accelerated purchase frequency. And then, frankly, when you look at the brand channels and the investments, you can certainly see the creative oriented around, you know, loyalty being a unique proposition that's differentiated. And we certainly see those campaigns performing and driving increased purchase propensity as well. Great.

Smooth out a little bit with the acquisitions, but if you could just walk through again, how the sort of sequence of that by quarter that'd be really helpful.

Yeah, great. Thanks, Kurt.

I'd, probably start by pointing to 'twenty. Three is an example of some of the quarterly observation that.

That's why we generally focus on the annual guidance.

But as you think about a prototypical year.

I would start with volume side, I think youll generally see any starting from 2023 the year start slower than it finishes.

Stanley Chia: And then now that you have operated Vagas.com for a few months, can you maybe just talk about your ability to cross-promote your core brand and sort of bring new customers to Vivid Seats? Yeah, I think we are. You know, it's still early days. I think we are pretty excited about the opportunity to do that. You know, I think we have already started with some of that cross pollination, whether it is across the inventory that now we can surface across multiple platforms, whether that is in, you know, I think our core thesis of Vegas.com being a profitable customer acquisition engine is that we can funnel users as they return to their homes into the ecosystem of Vivid Seats with rewards and Game Center. We are in early days, but we are certainly quite bullish in terms of the early signs that we're seeing there. Thank you so much for the call.

Q1 is typically the lightest quarter Q4, typically the strongest quarter.

In a normal year I would say you would expect operating leverage to behave in a expected fashion so the lowest.

Quarter, you would expect to be the lowest.

Margin quarter, just because you have some fixed costs that get leveraged over a lower volume.

And so if you look at last year.

Roughly 22% of <unk> for the year in the first quarter.

If anything the acquisitions that we've done in the meantime, our more.

Call it summer weighted because they're primarily concert and theater driven categories.

In Q1 is a relatively slower concert in theater quarter.

Curtis Smyser Nagle: And our next question... online for Kurt Nagle with B of A. Your line is open, please go ahead. Great. Thanks very much for taking the time to answer the question. I guess one first for Larry, just could we walk through the cadence of GMV and EBITDA for the year? Just looking like a lot of noise, obviously, or in pieces last year, right? You had the lowest GMV in one cube, but the highest EBITDA margin. Presumably, that's going to kind of... without a little bit, you know, with the acquisitions. But if we could just work through, walk through again, how to, sequence that, you know, by quarter, that'd be really great. Yeah, thanks. Thanks, Curtis.

Not a material change, but if anything it's pushing into Q1 being <unk>.

Slightly lower percentage of the full year.

As you noted last year, an outlier we had.

Some favorable accrual adjustments.

Some some atypical marketing cadence.

And so I would expect a return to more normal flow through in Q1 this year.

Got it okay. Thanks, and then maybe just.

One for you Stan just talking about skybox.

In terms of the beta test it sounds like it's doing well.

I guess what are the.

Expectations for I think you said a launch sometime in the back half of the year.

I guess, how should we think about monetization of the platform.

Yes.

Hey, Thank you for the question look I think we're really proud of what we're doing there I think we've been really judicious with.

Lawrence C. Fey: You know, I probably start by pointing to 23 as an example of some of the quarterly oscillation that is why we generally focus on the annual guidance. But, as you think about a prototypical year, I would start with the volume side. I think you'll generally see, and you saw this in 2023, the year starts slower than it finishes. Q1 is typically the lightest quarter, and Q4 is typically the strongest quarter. And in a normal year, I would say you'd expect operating leverage to behave in an expected fashion. For example, if you're looking at the lowest GOV quarter, you would expect it to be the lowest.

Bringing on beta users is ensuring their feedback there and as you heard and I think the excitement that we have and adding to our already leading seller of product base with Skybox drive I think continues to Mount.

I'd start with I think we are we certainly don't have any monetization modeled into our guidance and therefore, I think anything and everything should we go down that path will be upside.

I would also point to I think the precedent for products like that is certainly a monetize level one and so I think as we bring that to market. It would not be unreasonable to assume that at some point, we monetize it and none of that is baked into the guide this year.

Lawrence C. Fey: Margin Quarter, just because the absentee cost is higher, they get leveraged over a lower bottom. And so, if you look at last year, you know, roughly 22% of GOV for the year in the first quarter. If anything, the acquisitions that we've done in the meantime are more, call them summer weighted because they're primarily, you know, concert and theater-driven categories, and Q1 is a relatively slower quarter for concert and theater. Not a material change, but, you know, if anything, it's pushing Q1 being a slightly lower percentage of the full year. As you noted, last year in Outlier, we had some favorable accrual adjustments and some atypical marketing cadence. And so I would expect a return to more normal flow through in Q1 this year. Okay, thanks. And then maybe just... Stan, just talking about Skybox.

Okay. Thanks very much.

Thank you and one moment as we move on to our next question.

Our next question is going to come from the line of Jason Bazinet with Citi. Your line is open. Please go ahead.

I know there is some pretty big differences.

And the way the primary market works internationally, but are there any sort of differences as you've sort of done your due diligence internationally on the way that market works either in terms of.

Marketing intensity or take rates or do you or do you feel like.

The model is pretty homogenous globally. Thanks.

Hey, Jason Thanks for the question I think.

Look I think I think structurally.

There are some similarities I think broadly if you were to frame international is one opportunity I think the reality is each market or each region. If you will has nuances to them with variability in each of the elements that you talked about but I think when we look at them Holistically I think we're pretty excited in the <unk>.

Stanley Chia: At least in terms of beta testing, it sounds like it's doing well. Um, yeah, I guess what the plans are... I think you said a launch sometime in the back half of the year. I guess how should we think about monetization of the platform? Yeah.

<unk> to compete there right I think is kind of how we look at this we look at the platform that we've built the tools that we've built in the ecosystem and we think moving into multiple regions internationally, we will have.

Stanley Chia: Hey, thank you for the question there. Look, I think we're really proud of what we're doing there. I think we've been really judicious with bringing on beta users and ensuring their feedback there. And as you know, I think the excitement that we have in adding to our already leading seller product base with Skybox Drive, I think, continues to mount. I'd start with, you know, I think we certainly don't have any monetization modeled into our guidance. And therefore, I think anything and everything, should we go down that path, will be upside. I would also point out that the precedent for products like that is certainly monetizable. And so I think as we bring that to market, it would not be unreasonable to assume that at some point we monetize it, and none of that is baked into the guide this year.

A strong foundation under with which we will be able to compete and compete quite effectively.

I would say.

Terms of differences.

I think North America is the sports capital of the World.

Soccer.

Soccer is popular in.

In many countries, but if you start going down the list of sports that.

Drive meaningful volume in North America that you don't see that replicate so I would think of the international opportunity structurally are similar but probably more indexed concert in theater trends.

And so you can imagine part of the excitement around the growth opportunity as that those geographies are over indexed to the segments that have been driving disproportionate growth in North America.

And can I just ask one follow up on the international side.

Stanley Chia: Thank you, and one moment as we move on to our next question. Our next question is going to come from the line of Jason Bazinet with Citi. Your line is open. Please go ahead. I know there are some pretty big differences in the way the primary market works internationally, but are there any sort of differences as you've sort of done your due diligence internationally on the way that market works, either in terms of marketing intensity or take rates?

I know you guys are leveraging your platform and that'll that'll sort of accelerate sort of the time when a dollar of revenue generates a dollar of EBITDA.

But are there any sort of rules of thumb in terms of how.

How long it should take given that youre going to have to sort of establish a brand.

And do some brand spending before before $1 revenue generates $1 of EBITDA.

No firm commitments that we'd want to sign up for it just yet but.

Certainly the investment that we're making this year is predicated on ensuring we have fully scalable.

Jason Boisvert Bazinet: Or do you feel like the model is pretty homogeneous globally? Hey Jason, thanks for the question. I think, um... Like, I think structurally, there are some similarities, you know. I think broadly, if you were to frame international as one opportunity, I think the reality is, each market, or each region, if you will, has nuances to it with variability and each of the elements that you talk about. But, you know, I think when we look at them holistically, I think we're pretty excited about the ability to compete there, right? I think it's kind of how we look at this; we look at the platform that we've built, the tools that we've built in the ecosystem. And we think moving into multiple regions internationally will have a strong foundation under which we will be able to compete and compete quite effectively. I'd say, though, in terms of differences, I think North America is the sports capital of the world.

<unk> platform offerings that will.

Minimize kind of that.

Call it operational investment beyond the marketing that you've called out.

We'll certainly have some sort of learning curve, but I think.

The view is that the opportunity is.

Significant robust and that consumers are looking for an alternative and so we believe that we'll be able to.

Have a value proposition that resonates right out of the gate.

And if anything I think we've always been.

Really disciplined and proud and I think in how we both manage the investments, but also Ron I think the segments of business that we operate with both growth and profitability and I think when we look at the international segment I don't think we look at that any different.

Okay. Thank you.

Thank you and one moment as we move on to our next question.

And our next question is going to come from the line of Matt Farrell with Piper Sandler. Your line is open. Please go ahead.

Stanley Chia: Certainly, soccer is popular in many countries, but if you start going down the list of sports that drive meaningful volume in North America, you don't see that replicated. So I would think the international opportunity structurally is similar, but probably more indexed to concert and theater trends. And so you can imagine part of the excitement around the growth opportunity is that those geographies are over indexed to the segments that have been driving disproportionate growth in North America. And can I just ask one to follow up on the international side?

Thanks for letting me ask a question guys first following the Super Bowl would just love to hear about the early takeaways on Vegas Dot Com what are some of the key learnings. After the first few months of having it in house.

Yeah, Hey.

Look I think.

Starting with I think your first partly I think we are excited about Las Vegas is the entertainment capital of United States in things like Super Bowl.

Heading there and we certainly see all of the tailwind there right. This was a wonderful Super Bowl.

This year with a great matchup and arguably what is a very relatively small stadium compared to the other NFL stadiums.

Lawrence C. Fey: I know you guys are leveraging your platform, and that'll sort of accelerate the time when a dollar of revenue generates a dollar of EBITDA. But are there any sort of rules of thumb in terms of how long it should take given that you're going to have to sort of establish your brand, do some brand spending before the dollar of revenue generates a dollar via the dollar? No firm commitments that we'd want to sign up for just yet, but certainly, the investment that we're making this year is predicated on ensuring that we have fully scalable tech and platform offerings that will minimize, you know, kind of the operational investment beyond the marketing that you called out. So we'll certainly have some sort of learning curve.

As I mentioned earlier and I think we.

We are already seeing signs of.

Bullishness as we think about that.

<unk> dot com as a platform certainly really excited about the team that we've inherited they're excited about.

The capabilities and frankly like I said as you look at the early things, we've seen cross pollination of inventory.

Into the platforms has already yielded.

Some some I would say upside surprise to how we looked at the model and earlier than we expected as well so I think.

Lawrence C. Fey: But I think the view is that the opportunity is significant, robust in that consumers are looking for an alternative, and so we believe that we'll be able to have a value proposition that resonates right up. And if anything, Jason, I think we've always been really disciplined and proud of how we both manage the investments but also run, you know, I think the segments of business that we operate with both growth and profitability. I think when we look at the international segment, I don't think we look at that any different. Okay, thank you.

We're very excited about that Youll continue to see us bill.

Build out on the synergies and build out on the thesis that throughout the year, but certainly.

Two months and we're pretty excited about what we've seen so far.

And then maybe touching a little bit more on the international.

<unk>.

What has led you to sort of build for the international opportunity versus buying like you did with wave dash and maybe just a quick follow up is what takeaways from the way that.

<unk>.

Have you seen that.

Led you to sort of lead with the build this time around.

Yes.

Okay.

Yes, maybe I'd split that out I think maybe start from the Taylor and look I think again when I look at the asset that we acquired in the way of that came with a wonderful team a market leading position at an accretive multiple kind of setting the stage to really help us learn and continue to frankly drive cash flow into the business.

Jason Boisvert Bazinet: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Matt Farrell with Piper Stanley. Your line is open. Please go ahead.

Matthew F. Farrell: Thanks for letting me ask the question, guys. First, following the Super Bowl, we'd just love to hear about the early takeaways on Vegas.com. You know, what are some of the key learnings after the first few months of having it in-house? Yeah, hey, um, we're getting there. Start with, I think, your first part, Larry. I think we are excited about Las Vegas as the entertainment capital of the United States and things like the Super Bowl heading there. And we certainly see all the tailwinds there, right? This was a wonderful Super Bowl this year with a great matchup in arguably what is a very relatively small stadium compared to the other NFL stadiums.

As well to fund other accretive opportunity so excited about that.

One of the biggest areas that we saw there with our wave Dash Act.

Acquisition, which Larry touched on earlier, which we certainly see.

Corroborated again by others, where others in the space are certainly, citing significantly higher growth in international versus North America is that.

As we see that concert landscape internationally that is certainly outpacing our indexing I think growth expectations, and we've seen that and waved ash and we continue to expect to see that.

Broadly in the landscape as well.

Stanley Chia: As I mentioned earlier, and I think we are already seeing signs of... bullishness, you know, as we think about Vegas.com as a platform, certainly really excited about the team that we've inherited there and excited about the capabilities. And frankly, like I said, as you look at the early things we've seen, cross-pollination of inventory into the platforms has already yielded some, I would say, upside surprises to how we looked at the model and earlier than we expected as well. So I think we're very excited about that. You'll continue to see us build out on the synergies and build the thesis throughout the year, but certainly two months in, we're pretty excited about what we've seen so far. And then maybe touching a little bit more on the international investments, you know, what has led you to sort of build for the international opportunity versus buying like you did with wave dash? And maybe just a quick follow-up is, you know, what takeaways from the wave dash deal have you seen that have led you to sort of lead with the build this time around? Thanks. Yeah, maybe I'd split that out.

And then on the build versus buy and I don't I don't ever think that building a platform that allows us to leverage the skills that we have would inhibit the.

Purchase should we find an attractive asset and I think we've demonstrated I think with our history again that should the right asset become available.

Where we end up with conviction and value strategic value and financial a creativeness I don't think we'd be opposed from accelerating anything through that but at the same time I think we are bullish in.

We believe that the product advantages that we have invested in from a technology perspective will allow us to.

Scale and take advantage of the international opportunity.

Even if we were to find an asset that we were to acquire to accelerate that that endeavor.

Alright. Thank you we'll move on to our next question one moment. Please.

And our next question is going to come from the line.

Vincent <unk> with Morgan Stanley. Your line is open. Please go ahead.

Thanks.

Just to follow up on the international side.

Would be interested in anything youre willing to say in terms of.

Stanley Chia: I think I'd maybe start from the tail end. Look, I think, again, when I look at the asset that we acquired in WaveDash, it came with a wonderful team, a market-leading position at an accretive multiple, kind of setting the stage to really help us learn and continue to frankly drive cash flow into the business as well as fund other accretive opportunities. So excited about that. One of the big areas that we saw there with our WaveDash acquisition, which Larry touched on earlier, which we certainly see corroborated again by others where others in the space are certainly citing significantly higher growth in international versus North America, is that, you know, as we see that concert landscape internationally, that is certainly outpacing and outindexing, I think, growth expectations.

How youre thinking about the geographic opportunity and kind of which geographies new geographies scene.

Like more compelling opportunities to you from me and then.

On the share repurchase program I'd, just be interested to hear a little bit more in terms of how youre thinking about.

The.

How to deploy that in a level.

The level to which you we should expect you to be leaning into it or the kind of the cadence.

Leaning into that program would be helpful. Thanks, guys.

Yes, Cameron so I think on the international landscape I think too early to point to this specific.

Stanley Chia: And we've seen that in WaveDash, and we continue to expect to see that broadly in the landscape as well. And then on the build versus buy issue, you know, I don't ever think that building a platform that allows us to leverage the skills that we have would inhibit the purchase should we find an attractive asset. And I think we've demonstrated, you know, I think with our history again, that should the right asset become available, where we end up with conviction and value, strategic value, and financial accretiveness, I don't think we'd be opposed to accelerating anything through that. But at the same time, you know, I think we are bullish and believe that the product advantages that we have invested in from a technology perspective will allow us to scale and All right.

<unk> said that we'd like to talk about at this time, but I would I would.

<unk> put out there that we are looking at that really excited about the broad opportunity.

To do to invest into that area and I think all of those investments I would.

Say really position us to continue with double digit growth on both the top and bottom line and I think we remain like I said, I think more bullish than ever that international becomes a vehicle.

To help us really accelerate and drive those those growth.

Vectors, along both top and bottom line.

And on.

The share repurchase.

We've been buyers of our shares in the past I think we've had some competing considerations on how how much we can buy but with some additional liquidity. That's been created over the last year I think that provides additional flexibility. If you look back we were buying shares at.

Levels at or above where we trade today and that was a year ago when our EBITDA was 50.

Matthew F. Farrell: Thank you. We'll move on to our next question. One moment, please.

<unk> $60 million less than the midpoint of our guidance currently.

Cameron Mansson: And our next question is going to come from the line of Cameron Manson Perrone with Morgan Stanley. Your line is open. Please go ahead.

I think suffice it to say we have observed a disconnect between our share price and our underlying performance.

Stanley Chia: Thanks. Just to follow up on the international side, I would be interested in anything you're willing to say in terms of how you're thinking about the geographic opportunity and which geographies, new geographies, seem like more compelling opportunities to you from here. And then on the share repurchase program, I'd just be interested to hear a little bit more in terms of how you're thinking about how to deploy that, and the level to which we should expect you to be leaning into it. Or the kind of the cadence of leaning into that program would be helpful. Thanks, guys. Yeah, Cameron, so on the international landscape, I mean, I think it's too early to point you to specific regions that we'd like to talk about at this time.

We're as you can hear in our tone.

Quite bullish on the opportunity ahead of us.

And so that that disconnect we think.

<unk> is a meaningful opportunity.

Got it thanks.

Thank you and one moment as we move on to our next question.

And our next question comes from the line of Benjamin <unk> with Deutsche Bank. Your line is open. Please go ahead.

Hey, good morning, and thank you for the questions.

Personal if there's an update on the broader macro environment.

Isn't the demand backdrop.

In the U S and what are you embedding in your guide in terms of sort of macro assumptions and then secondly, I guess.

President vitamins, obviously been talking a lot about eliminating drip feeds of junk fees could.

Stanley Chia: But I would, I would, you know, I think put out there that we are looking at that really excited about the broad opportunity to invest in that area. And I think all of those investments, I would say, really position us to continue with double-digit growth on both the top and bottom line. And I think, you know, we remain, like I said, more bullish than ever that international becomes a vehicle to help us really accelerate and drive those growth vectors along both the top and bottom lines. And on the share repurchase.

Could you have sort of more broadly talk about sort of the regulatory backdrop as well. Thank you.

Yeah, I'll take the first on the macro environment.

Yes, I'd say, we've continued to see strength.

Strength in all of our.

The results to date.

On the supply side.

You've seen live nation's commentary they remain quite bullish we saw what I would characterize as a consistent with expectations, but expectations are fairly robust in terms of concert on sales with major artists Crusher, Justin Timberlake that <unk> company.

Lawrence C. Fey: We've been buyers of our shares in the past. I think we've had some competing considerations about how much we could buy, but with some additional liquidity that's been created over the last year, I think that provides additional flexibility. If you look back, we were buying shares at levels at or above where we trade today, and that was a year ago when our EBITDA was... We have observed a disconnect between our share price and our underlying performance. We're, as you can hear in our tone, quite bullish on the opportunity ahead of us. And so that disconnect, we think, reveals a meaningful opportunity. Got it, thanks.

I think continuing to demonstrate that supply.

As president and quality supply is coming in on the.

The demand side, we've continued to see.

Positive strengthen.

If you look at Super Bowl College football playoffs, some of the marquee events, thus far in Q1, <unk> seen exceptional strength, partially driven by the match ups, but I think reflective that you continue to see underlying demand strength as well.

Cameron Mansson: We will see you in a moment as we move on to our next question. And our next question comes from the line of Benjamin Black with Deutsche Bank. Your line is open. Please go ahead.

And so perhaps contrasting with with this time last year. When there was a lot of active concern around.

Hard landing versus soft landing moving consumer softness I think at this point we feel.

Benjamin Thomas Black: Hey, good morning, and thank you for the questions. Perhaps there's an update on the broader macro environment, you know, how healthy is the male backdrop in the US? And what are you embedding in your guide in terms of sort of macro assumptions? And then, secondly, I guess President Biden has obviously been talking a lot about eliminating drip fees or junk fees. Could you have a sort of more broadly talk about the regulatory backdrops as well? Thank you. Yeah, I can. I'll take the first on the macro environment.

There is pretty nice stability in that realm.

Yes, and then moving to the regulatory environment look I think I think we have always.

Been out there in big supporters of driving a competitive and level playing field. So that I think those with the best platform and transparent platforms win for consumers.

As we see the progress.

On driving transparency into that and I think we are supporters right and I think where we've seen those.

Those go in at the state level I think we certainly been beneficiaries right. When you look at again, our cost structure, our ability to be lean are a little our ability to.

Lawrence C. Fey: Yeah, I'd say we've continued to see strength in all of the results to date on the supply side. We've seen Live Nation's commentary. They remain quite bullish. We saw what I would characterize as consistent with expectations, but expectations were fairly robust in terms of concert sales, major artists, Usher, Justin Timberlake, Dead & Company, I think continuing to demonstrate that supply is present and quality supply is coming. And on the demand side, we've continued to see, you know, positive strength. You know, if you look at the Super Bowl, college football playoffs, some of the marquee events thus far in Q1, you've seen exceptional strength, partially driven by the matchups.

Drive competitive product and drive profitability and cash flow at the same time, while doing that I think we are seeing benefit in that landscape and I go back to you know I think as that progresses to the federal level and we see continued progress on that I think we are.

Bullish I think on the prospects that brings to us.

As the president and his efforts there continue to move forward.

Excellent. Thank you very much.

Thank you and one moment as we move on to our next question.

And our next question is gonna come from the line of Brad Erickson with RBC capital markets. Your line is open. Please go ahead.

Yes.

Follow up maybe to the international investments you talked about.

Stanley Chia: But I think it's reflective that you continue to see underlying demand strength as well. And so, perhaps contrasting with this time last year when there was a lot of active concern around hard landing versus soft landing, looming consumer softness. I think at this point, we feel that there's pretty nice stability in that.

The M&A opportunities in Europe, or Asia does tend to be like a single country or <unk>.

Multiple countries historically I think you look at marketplaces overall.

Overseas, they tend to be kind of branded country to country, but curious if thats the right way to think about ticketing players.

Stanley Chia: Yeah, and then moving to the regulatory environment, look, I think, you know, I think we have always been out there and big supporters of, you know, driving a competitive and level playing field so that, you know, I think those with the best platforms and transparent platforms win for consumers. And, you know, I guess, as we see the progress on driving transparency into that, you know, I think we are supporters, right? And I think where we've seen those go in at the state level, I think we've certainly been beneficiaries, right?

On those investments or marketing investments or maybe more just like integration costs. For example, any color there would be great.

Sure.

Yeah.

Hey, Brad Yeah look I think.

I think the probably the answer Youre looking for or is it really depends right I think as you look at the different.

Regions pulls I think youre going to find players that compete across multiple domains youre certainly going to find I think those.

Like we found where you've got potentially a leading player in market like waived ash.

But I think it really is a broad it depends and there's certainly going to be every flavor out there and I think as we continue to organically build NSS assets that are available should we find an accretive opportunity for us that we like and I think we're certainly going to pursue that and certainly have the balance sheet and.

Stanley Chia: When you look at, again, our cost structure, our ability to be lean, our little, our ability to drive competitive products and drive profitability and cash flow at the same time while doing that, I think we are seeing benefits in that landscape. And I go back to, you know, I think as that progresses at the federal level and we see continued progress on that, I think we are bullish, I think, on the prospects that it brings us as the President and his efforts there continue to move forward. Excellent, Thank you very much.

<unk> appetite to do it.

Yes, I think frankly part of the opportunity is predicated on a relatively short list of.

Competitors at scale internationally today, which provides the opportunity for a new entrant in our mind so.

We're excited on that front.

The nature of the investment I would characterize that.

Guide, reflecting.

What we believe to be call. It the platform investments required to be ready too.

Brad Erickson: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Brad Erickson with RBC Capital Markets. Your line is open, please go ahead.

Successfully and scalable to enter the market.

It does not contemplate if neither of the revenue nor the call it.

Stanley Chia: Yeah, thanks. Just to follow up maybe on the international investments you talked about, do the M&A opportunities in, say, Europe or Asia tend to be about a single country or multiple countries? Historically, I think, you know, when you look at marketplaces that overseas, they tend to be kind of, you know, branded country to country. I'd be curious if that's the right way to think about ticketing players and, you know, just on those investments, or are they marketing investments, or maybe more just like integration paths, for example? Any color there would be great to follow up. Hey Brad, look, I think you know it.

Marketing operating expense.

Before it.

Got it that's helpful and then a follow.

Follow up I guess, you had some pretty big pricing.

<unk> in 2023 in particular.

I'll ask directly with Taylor Swift is baked into the guide just on that front, just curious kind of what's embedded in terms of your assumptions for pricing and just curious if after all the tailwind last year to 24 kind of set up organically for the industry, maybe to just grow a little bit below norm.

Will that you've talked about in the past.

Yeah. Thanks, Thanks for that.

Stanley Chia: I think probably the answer you're looking for is, it really depends, right? I think if you look at the different regions and polls, you're going to find players that compete across multiple domains. You're certainly going to find, I think, those, like we found, where you've got potentially a leading player in the market, like Wavedash. But I think it really is a broad category, it depends, and there's certainly going to be every flavor out there.

I'll start with idiosyncratic to us, which is both Vegas and waved ash come in.

At a lower average order size.

And then the existing business and so you saw this in Q4.

Where our average order size on a re.

Reported basis.

<unk> was down.

4%.

On an apples to apples basis it was <unk>.

Actually up Youll see that trend continue throughout 2024.

Stanley Chia: And, you know, I think as we continue to organically build and assess assets that are available, should we find an accretive opportunity for us that we like, I think we're certainly going to pursue that and certainly have the balance sheet and appetite to do it. I think, frankly, part of the opportunity is predicated on it being a relatively short list of, at Celtics, what we believe to be, call it, the platform investments required to be ready to successfully and scalably enter the market. What it does not contemplate is neither the revenue nor the, call it, marketing and operating expenses of it.

Have the reported results, reflecting the combined basis.

I think as you called out.

The the large Taylor Swift. The fact, it was almost entirely on an average order size was playing in the same site <unk> as other <unk> and so as you lap that kind of a unique outlier then I think you would expect the underlying AOS for the still positive, but a little bit muted relative to what we saw.

This past year.

But continue to see fundamental underlying strength.

But for that comparison.

Got it thanks.

Thank you and one moment for our next question.

And our next question is going to come from the line of Ryan <unk> with <unk>.

Craig Hallum Capital Group. Your line is open. Please go ahead.

Brad Erickson: Got it. That's helpful. And then just to follow up, I guess, you know, you had some pretty big prices, Halo in 2023 in particular. I won't ask directly if Taylor Swift is baked into the guy, just on that front, just curious kind of what's embedded.

Hey, good morning, Stan Larry.

Not to beat a dead horse here on international but you didn't.

Didn't change <unk> and revenue guidance 10 million of incremental spend I guess, its the rate assumption that youre layering in structural investment in the infrastructure. This year with no incremental revenue assumed in the guidance for that in international spend.

Ryan Sigdahl: I'm curious, after all those tailwinds last year, does 24 set up organically for the industry maybe to just grow a little bit below the normal that you've talked about in the past? Yeah, thanks for that. I'll start with something idiosyncratic to us, which is both Vegas and WaveDash come in at a lower average order size than the existing business. And so you saw this in Q4, where our average order size on a reported basis was down 4%. On an apples-to-apples basis, it was actually up.

Yes, that's exactly right.

I think the view is.

Put the effectively.

Fixed overhead burden into the numbers.

And then when were ready to press go.

We'll then.

At both revenue and.

Operational spend on the marketing front.

We actively launch.

And then just on Skybox drive.

A new competitor with a new fan to fan reselling tools kind of similar ERP for fans sellers, but I guess any notable market share change for skybox ERP with the professional sellers.

Or just the market overall.

Yes, Scott So look I think we're really excited so if you take out drive for a moment and just look at Sky box I think we continue to onboard new.

Lawrence C. Fey: You'll see that trend continue throughout 2024 as you have the reported results reflecting the combined basis. That said, I think, as you called out, the large Taylor Swift, in fact, was almost entirely based on average order size.

Sellers on increasing the share that we already have.

With Skybox and I think as we look at the launch of drive I think that looks to really.

Stanley Chia: She was playing in the same size stadiums as other A-listers, and so as you lapped that kind of unique outlier event, I think you'd expect the underlying AOS to be still positive, but a little bit muted relative to what we saw this past year, but continuing to see fundamental underlying strength. Got it, thanks. We'll end one moment for our next question. Our next question is going to come from the line of Ryan Sigdahl with Craig Hallam Capital Group. Your line is open. Please go ahead. Hey, good morning, Stan, and Larry.

Cement I think our leading position with an adder that really provides I think the combination of skybox and skylights drive I think a really a unique offering that no.

One player will be able to provide with very very unique capabilities for the professional seller and so yes, I think remained bullish on that given that professional sellers represent call. It about 80% of the entire secondary ecosystem.

Great. Thanks, guys. Good luck.

Thank you.

Thank you and one moment for our next question.

Ryan Sigdahl: Not to beat a dead horse here on international spending, but you didn't change the GOV and revenue guidance, 10 million incremental spend. I guess that's the right assumption that you're layering in structural investment and infrastructure this year with no incremental revenue assumed in the guidance for that in international spending. Yeah, that's exactly right. Yeah, I think the view is, put the effectively, the fixed overhead burden into the numbers, and then, you know, when we're ready to press go, we'll then... have both revenue and operational spend on the marketing front as we actively do. And then, just on Skybox Drive, you have a new competitor with a new fan to fan reselling tools, kind of similar to an ERP for fan sellers, but I guess any notable market share change Yeah, I think, you know, on Skybox, look, I think we're really excited.

Yes.

And our next question comes from the line of Dan <unk> with Benchmark Company. Your line is open. Please go ahead.

Thanks, Good morning.

Just to clean up on everyone's favorite topic. This morning.

And I guess, Larry just in terms of the guide change is that just the timing of announcement for you guys. Like you had planned this before I mean, you guys don't do anything haphazardly. So.

Was it a specific opportunity that sort of dictated this or you guys are just not ready to talk about it yet and can you <unk>.

Leverage obviously, you guys have a very unique corporate structure.

And that has a lot of international relationships already so is there a way to leverage that as you expand in the international markets.

Hey, Dan Thanks for the question yes.

Look I think we.

Daniel Louis Kurnos: So if you take out Drive for a moment and just look at Skybox, I think we continue to onboard new sellers on, increasing the share that we already have with Skybox. And I think as we look at, you know, the launch of Drive, I think that looks to really cement our leading position with an adder that really provides, I think, the combination of Skybox and Skybox Drive is really a unique offering that no one player will be able to provide with very, very unique capabilities for the professional seller. And so I think I will remain bullish on that, given that professional sellers represent, you know, call it about 80 percent of the entire secondary ecosystem. Great Thanks, guys. Good luck! Thank you. You in just one moment.

I would say, yes, we're pretty deliberate I think in quite judicious in how we plan and I think as we said I think pretty transparently I think our excitement level for the international opportunity has grown since the last time that we did this right.

When you look at it right like I think we've reaffirmed our topline guidance right I think still double digit on top and bottom line growth despite accelerating our international investment, which again I point to others in the industry.

With sizable outpatient in international contribution versus domestic is certainly one of but not the only.

The data point out there that I think fuels our excitement.

So we've pulled forward a lot of that investment to make sure that.

Stanley Chia: And our next question comes from the line of Dan Kurnos with The Benchmark Company. Your line is open. Please go ahead. Thanks. Good morning.

We can drive the platform readiness that wed likely to take advantage of that and in spite of that still delivering a 16% year over year EBITDA growth.

Daniel Louis Kurnos: Just to clean up on everyone's favorite topic this morning, Stan, I guess, or Larry, just in terms of the guide change, is that just a timing issue for you guys, like you had planned this before? I mean, you guys don't do anything haphazardly, so, you know, was it a specific opportunity that sort of dictated this, or are you guys just not ready to talk about it yet? And can you leverage, obviously, you guys have a very unique corporate structure that has a lot of international relationships already, so is there a way to leverage that as you expand in the international market? Hey Dan.

Yes, I think Dan Yeah, we've talked about in the past.

On a north America basis, we think our foundational growth.

We'll be in the double digit range over the intermediate term I think we view the international opportunity is just another pathway to ensure that you are hitting or exceeding that double digit top line opportunity. So when we look back on the <unk>.

Exciting parts of the <unk>.

23 results expanding the Tam we the way, we did and now seeing that opportunity to continue to reveal itself in a way that's more not less exciting.

Stanley Chia: Thanks for the question. Yeah, you know, I think, look, I think we, I would say, yeah, we're pretty deliberate, I think, and quite judicious in how we plan. And, you know, as we said, I think pretty, pretty transparently, you know, I think our excitement level for the international opportunity has grown since the last time that we did this, okay. And when you look at it, like, I think we've reaffirmed our top line guidance, okay. And, you know, I think it's still double digits on top and bottom line growth.

Incremental pathway for delivering that sustained double digit growth.

We just put our statements that we view this is all exciting news.

Yes, Larry can I, just double click on that because obviously you guys have said about as many times as possible sustainable double digit growth going forward and I think thats lost on anyone and it's certainly above industry growth rates.

You just beat your 2022 guide by 30% basically and I guess I'm, just trying to understand sort of either the level of conservatism to start here I guess, we got the international piece and just maybe some of the underpinnings understanding yes, you have to comp I guess, we'll call it pay on say this summer but.

Lawrence C. Fey: And, despite, you know, accelerating our international investment, which again, I point to others in the industry, with sizable outpacement in international contribution versus domestic, is certainly one of, but not the only data point out there that I think fuels our excitement. And so we pulled forward a lot of that investment, you know, to make sure that we can drive the platform readiness that we'd like to take advantage of. And in spite of that, still delivering, you know, 16% year over year trade but no growth.

The concert environments up like double digit attendance up double digits. So just the confidence level you have in sort of underpinning that 10 plus percent, let's call. It at least topline and probably bottom line growth from here as well.

Yes, I think as we look out over the foreseeable future.

Very high.

You know when you start layering on the opportunities both.

In North America, and with the international path, we have multiple ways to get there.

Lawrence C. Fey: Yeah, I think Dan, you know, we've talked about in the past, on a North America basis, we think our foundational growth will be in the double-digit range over the intermediate term. I think we view this international opportunity as another pathway to ensure that you're hitting and or exceeding that double-digit top-line opportunity. So when we look back on the most exciting parts of the 2023 results, expanding the TAM the way we did and now seeing that opportunity continue to reveal itself in a way that's more, not less exciting, to just give incremental pathways to delivering that sustained double-digit growth, leads us to our statement that we do this all exciting. Yeah, Larry, can I just double click on that? Because obviously, you guys have said about as many times as possible sustainable double-digit growth going forward. I don't think that's lost on anyone.

Yes, I think you called out but the reality is that there is only one Taylor swift and so will that be.

Impacts our average order size this year sure will change our fundamental average order size trajectory absolutely not.

2025, we'll be right back on that.

Average order size wagon alongside that we're just seeing really strong quarter growth. If you look at our Q4 numbers, maybe you can see that 36%.

Order growth in Q4.

Call it stable underlying average order size environment, and so I think that reveals.

Just fundamentally well match supply and demand.

And a fundamental increase in the amount of live events consumption that youre seeing.

Maybe to bring it all home Danon and Larry I think the term you used was pay on say, which we're saying we might trademark for Dan that's pretty good I was good.

Well look I do think that it comes back to when you ask like conservatism look I think we've been out there now public company for many many quarters and I think we've been.

Daniel Louis Kurnos: And it's certainly above industry growth rates. You just beat your 2022 guide by 30% basically, and you know, I guess I'm just trying to understand sort of the level of conservatism to start here, I guess we have the international piece, and just maybe some of the underpinnings, understanding, yes, you have to comp, I guess we'll call it tay-on-say this summer, but the concert environments are up like double digits, attendance is up double digits Yeah, I think as we look out over the foreseeable future, it's very high. You know, when you start layering on the opportunities, both in North America and with the international path, you have multiple ways to get there. Yeah, you called out right that the reality is that there is only one Taylor Swift. And so, you know, will that impact our average order size this year? It sure will change our fundamental average order size trajectory. Absolutely not.

Really focused on making sure that when we put numbers out there we have the ability to hit them and I think we've delivered consistent.

I think performance against the guidance that we put out there and the ability to.

To continue growing Tam growing top and bottom line as you said sustainably in the double digit range on both top and bottom and I think we are out there not just saying that but look we believe and the confidence level is high enough that you know I think the board.

And ourselves have authorized also a $100 million share repurchase right. So I can't think of anything.

More of that wood overemphasize, our own confidence and bullishness in the performance than our continued track record our continued ability to invest and frankly, putting our money, where our mouths are and saying Hey look we believe theres opportunity.

And the share price and very willing to <unk>.

Back ourselves up on that by repurchasing shares as well.

Makes total sense, thanks, guys I appreciate it.

Thank you this will now close our <unk>.

<unk> and answer session.

Ladies and gentlemen, this will conclude today's conference call. Thank you for participating and you may now disconnect everyone have a great day.

Lawrence C. Fey: So come 2025, we'll be right back on that Average order size wagon alongside that we're just seeing really strong order growth. If you look at our q4 numbers, I think you can see that right there 36% Order growth in q4 in a, you know, call it a stable underlying average order size environment. And so I think that reveals fundamentally well-matched supply and demand and a fundamental increase in the number of live events. Yeah, maybe to bring it all home, Dan and Larry, I think the term he used was "Teyonce," which I think we might trademark for Dan. That was good.

[music].

Okay.

Okay.

Yes.

Okay.

Yes.

Okay.

Okay.

Okay.

[music].

No.

Yes.

Yes.

[music].

Yes.

Yeah.

Stanley Chia: But look, I do think, you know, Dan, it comes back to when you ask about conservatism. Look, I think we've been out there now, a public company for many, many quarters, and I think we've been really focused on making sure that, you know, when we put numbers out there, we have the ability to hit them. And I think we've delivered consistent, you know, performance against the guidance that we put out there, and the ability to continue growing TAM, growing, you know, top and bottom lines, as you said, sustainably in the double digit range on both top and bottom. And I think we're out there, not just saying that, but look, we believe, and the confidence level is high enough that, you know, I think the board and ourselves have also authorized a $100 million share repurchase, right?

Okay.

Sure.

[music].

Okay.

Yeah.

Okay.

Yes.

[music].

Yes.

Yes.

Yes.

Yes.

Yes.

Okay.

Yes.

Yeah.

Okay.

Okay.

Yes.

Yes.

Yes.

Stanley Chia: So I can't think of anything more that would emphasize our own confidence and bullishness in the performance than our continued track record, our continued ability to invest, and, frankly, putting our money where our mouths are and saying, hey, look, we believe there's opportunity in the share price, and we're very willing to back ourselves up on that by repurchasing shares as well. Makes total sense. Thanks, guys. Appreciate it

Yes.

Okay.

Okay.

[music].

Sure.

[music].

Operator: Thank you. This will now close our question and answer session. Ladies and gentlemen, this also will conclude today's conference call. Thank you for participating and you may now disconnect. Everyone have a great day. Thanks for watching! ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Good day, and thank you for standing by.

Operator: Welcome to the Vivid Seats fourth quarter 2023 earnings webcast and 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 this session, you will need to press * 11 on your telephone. You will then hear an automated message advising you that your hand is raised.

Okay.

Okay.

Okay.

[music].

Okay.

Okay.

[music].

Okay.

Okay.

Okay.

Kate Copouls: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Kate. Please go ahead.

Thanks.

Yes.

Okay.

Okay.

Okay.

Kate Copouls: Good morning, and welcome to Vivid Seats' fourth quarter 2023 earnings conference call. I'm Kate Africk, head of investor relations at Vivid Seats. Joining me today to discuss Vivid Seats results are Sam Chia, Chief Executive Officer, and Larry Fey, Chief Financial Officer. By now, everyone should have access to our fourth 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 Vivid Seats' website at investors.vividseats.com.

Yes.

Okay.

[music].

Okay.

[music].

Yes.

[music].

Kate Copouls: During the course of today's call, management may make forward-looking statements within the meaning of federal securities laws. Such forward-looking statements are subject to risk and uncertainty, including those described in our earnings press release, our most recent annual report on Form 10-K, and our other filings with the SEC. On today's call, we will refer to adjusted EBITDA, adjusted EBITDA margin, and cash generation, which are non-GAAP financial measures that provide useful information for our investors. To the extent reasonably available, a reconciliation of these non-GAAP financial measures to their corresponding GAAP measures can be found in our earnings press release and supplemental earnings slide. And now, I would like to turn the call over to Stan.

Okay.

Yes.

Okay.

Okay.

Okay.

Yes.

Okay.

Yes.

Okay.

[music].

Okay.

Okay.

Stanley Chia: Good morning, everyone, and thank you for joining us today. 2023 was a transformational year for Vivid Seats, which we were pleased to wrap up with a strong fourth quarter. After great years in 2021 and 2022, the North American live event market continued with robust and durable supply and demand. Throughout 2023, we seized upon market strength while furthering our strategic objectives that laid the foundation for our growth for years to come. We drove innovation, launching new products for both buyers and sellers, and continue to cultivate awareness and affinity for our marketplace, as demonstrated by our mix of repeat orders climbing to almost 60%. Importantly, we completed two strategically and financially accretive acquisitions that drove substantial TAM expansion and unlocked additional avenues for durable double-digit growth.

Okay.

Okay.

Okay.

Okay.

[music].

Alright.

Okay.

Okay.

Okay.

Yes.

Yes.

Okay.

[music].

Good day and thank you for standing by welcome to the visit seats fourth quarter 2023 earnings webcast and 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 this session you will need to press star one on your telephone you have been here.

And how did needed message of IC, New your hand, just raced to withdraw your question. Please press star one again, please be advised that today's conference is being recorded.

Stanley Chia: All of this was accomplished while we generated very strong cash flow, which will enable future capital deployment and value creation for shareholders. Today, I'll walk you through our financial highlights and then discuss the progress we have made on our long-term strategic objective. Then, Larry will walk you through our financial results in more detail.

I'd now like to hand, the conference over to your speaker today.

Please go ahead.

Good morning, and welcome to Vivek <unk> fourth quarter 2023 earnings Conference call.

Afric head of Investor Relations activity.

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

Stanley Chia: Starting with the financial highlights for 2023, we are proud to have delivered $3.9 billion in marketplace GOV, $713 million in revenues, and $142 million in adjusted EBITDA, driving nearly 25% top and bottom line growth and substantially outperforming our original forecast and guidance for the year. As we look at the live event industry, the North American market continues to hum with healthy growth and secular trends that we expect will drive growth for years to come. As we've discussed previously, consumers crave and prioritize live experiences, and artists are eager to tour as their primary source of income, creating a robust environment for both demand and supply.

I know everyone should have access to our fourth quarter earnings press release.

Released earlier this morning.

Press release as well as supplemental earnings slides are available on the Investor Relations page of <unk> website at investors <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, our most recent annual report on Form 10-K, and our other filings with the SEC.

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

Stanley Chia: Our 2023 results reflect industry strength that we have amplified with our strategy. Encouraging repeat behavior is fundamental to our strategy, whether that is through our loyalty program, engagement initiatives, differentiated experiences, or excellent customer service, which was validated by Newsweek once again this year. The most telling KPI for this strategy is our mix of repeat orders versus new, which stood at 47% repeat orders in 2018 before these initiatives. After climbing to 56% in 2022, we've now reached 59% repeat mix in 2023, shifting 300 basis points towards sticky and more profitable repeat orders. As we continue cultivating brand awareness and affinity, we expect to mix even higher into repeat orders and drive substantial marketing leverage over the next several years. Our focus on engagement initiatives contributes to this shift, and we made substantial progress this year with our launch of Game Center within Vivid Seats. We introduced Game Center at mid-year and rapidly gained users who play daily games and score points towards promo codes or drawings for free tickets. Game Center users engage frequently, opening the Vivid Seats app multiple times per month on average, and almost always browse tickets before or after playing in Game Center.

To the extent reasonably available a reconciliation of these non-GAAP financial measures to their corresponding GAAP measures can be found in our earnings press release and supplemental earnings slides.

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

Good morning, everyone and thank you for joining us today.

2023 was a transformational year for Vivek seats, which we were pleased to wrap with a strong fourth quarter.

After great years in 2021, and 2020 to the North American live event market continues with robust and durable supply and demand.

Throughout 2023, we seized upon market strength, while furthering our strategic objectives that lay the foundation for our growth for years to come.

We drove innovation launching new products for both buyers and sellers and continue to cultivate awareness and affinity for our marketplace as demonstrated by our mix of repeat orders climbing to almost 60%.

Importantly, we completed two strategically and financially accretive acquisition that drove substantial Tam expansion and unlock additional avenues for durable double digit growth.

All of this was accomplished while we generated very strong cash flow, which will enable future capital deployment and value creation for shareholders.

Stanley Chia: We are already seeing Game Center use translating to purchase. Game Center now has more than 260,000 users, and those users purchase tickets at a faster rate than non-Game Center app users, which is the exact behavior we seek to drive. In 2023, we expanded our roster of team partnerships across multiple leagues to offer unique and exciting forms of engagement with our buyers. Through team partnerships, we offer premium game-day experiences and unique opportunities like exclusive early access to pregame batting practice at stadiums, all-inclusive upscale suites, guaranteed Jumbotron time, and surprise appearances from Hall of Famers, all exclusively available through Vivid Seats.

Today I'll walk you through our financial highlights and then discuss the progress we delivered on our long term strategic objectives.

Then Larry will walk through our financial results in more detail.

Starting with the financial highlights for 2023, we are proud to have delivered $3 9 billion of marketplace <unk> $713 million of revenues and $142 million of adjusted EBITDA, driving nearly 25% top and bottom line growth and.

<unk> outperforming our original forecast and guidance for the year.

As we look at the live event industry, the North American market continues to Hum with healthy growth and secular trends that we expect will drive growth for years to come.

Stanley Chia: Our industry-leading loyalty program, Vivid Seats Rewards, offers compelling value and a reason to choose Vivid Seats. The message, buy 10 tickets, get one free, along with our excellent customer service, resonates with buyers. In fact, our latest NPS data shows that an unbiased panel of consumers is substantially more likely to recommend Vivid Seats than any other scaled ticketing marketplace. An equally important element within our broader strategy is maintaining our leading position with sellers. Skybox is the ERP of choice for the majority of professional sellers, and in 2023, we continue to improve our best-in-class seller product lineup. Skybox Drive is nearing the end of its beta phase, during which we have continued to onboard beta users and incorporate vital feedback into the product we plan to bring to market.

As we've discussed previously consumers crave and prioritize live experiences and artists are eager to tour as their primary source of income, creating a robust environment for both demand and supply.

Our 2023 results reflect industry strength that we amplified with our strategy.

Encouraging repeat behavior is fundamental to our strategy whether that is through our loyalty program engagement initiatives.

<unk> experiences or excellent customer service is validated by Newsweek once again this year.

The most telling API for this strategy is our mix of repeat orders versus new.

Which stood at 47% repeat orders in 2018 before these initiatives.

After climbing to 56% in 2022, we've now reached 59% repeat mix in 2023, shifting 300 basis points towards sticky and more profitable repeat orders.

Stanley Chia: We are excited to fully launch Skybox Drive and are on track to do so later this year. With our Vivid Seats flywheel spinning in 2023, we have also substantially increased our TAM and enhanced the financial profile of our business with two compelling strategic acquisitions. First, with our acquisition of WaveDash in Japan, we began to unlock an estimated incremental $40 billion of global ticketing TAM. Then, with our acquisition of Vegas.com, we unlocked another $6 billion of venue-direct TAM in the entertainment capital of the United States.

As we continue cultivating brand awareness and affinity we expect to mix, even higher into repeat orders and drive substantial marketing leverage over the next several years.

Our focus on engagement initiative contributes to this shift and we made substantial progress this year with our launch of game center within the <unk> App.

We introduced game center at mid year, and rapidly gained users who play daily games and score points towards promo codes or drawings for free tickets.

Game Center users engage frequently opening the vivid seeds app multiple times per month on average and almost always browse ticket before or after playing and game center.

Stanley Chia: As we integrate these businesses, the pathways to driving synergistic upside from each have become even more clear and compelling. While it's still early days for Vegas.com, we see great potential in multiple avenues. We've begun optimizing inventory selection across our sites and anticipate generating revenue synergies this year. Another exciting intermediate-term opportunity is the use of Vegas.com as a profitable customer acquisition vehicle that also funnels live event enthusiasts into the Vivid Seats ecosystem. Since last quarter, we've become increasingly excited about the international opportunity ahead of us and have begun building the infrastructure to go live in new markets. Secular tailwinds driving growth in North America are echoing abroad.

We are already seeing game center used translating to purchases game.

Game Center now has more than 260000 users and those users purchase tickets at a faster rate than non game center App users, which is the exact behavior, we seek to drive.

In 2023, we expanded our roster of team partnerships across multiple leagues to offer unique and exciting forms of engagement with our buyers.

Through team partnerships, we offer premium game day experiences and unique opportunities like exclusive early access to pre game batting practice at stadiums, all inclusive upscale suites guaranteed jumbo Tron time and surprise appearances from hall of Famers all exclusively available.

Stanley Chia: We see exciting opportunities to deliver incremental growth and profitability for years to come as we expand into additional geography. Because of this growing excitement, we are accelerating our investment in international expansion this year, and believe these investments provide additional pathways to delivering double-digit growth for years to come. Before Larry turns to the financial results, I want to reflect on what we achieved this year and where we are going in 2024 and beyond. In 2023, we grew our top and bottom lines by nearly 25%, significantly expanded our TAM, and furthered our objective to be the marketplace of choice for both sellers and buyers. We've also added incremental capabilities, such as Game Center and Skybox Drive, continue to enhance our loyalty program, and we were once again recognized by Newsweek as having one of the best customer service experiences.

<unk> seats.

Our industry, leading loyalty program <unk> rewards offers compelling value and reason to choose vivid seats.

The message by 10 tickets get one free along with our excellent customer service resonates with buyers.

In fact, our latest NPS data shows that an unbiased panel of consumers is substantially more likely to recommend David seeds than any other scaled ticketing marketplaces.

Really important element within our broader strategy is maintaining our leading position with sellers sky.

Skybox is the ERP of choice for the majority of professional sellers and in 2023, we continued to improve our best in class seller product lineup.

Skybox drive is nearing the end of its beta phase during which we have continued to onboard beta users and incorporate vital feed back into the product we plan to bring to market.

Stanley Chia: We believe that the foundation we laid in 2023 reinforces our ability to deliver sustained double-digit growth. We enter 2024 with a 63 billion global ticketing TAM and multiple levers to continue driving durable growth and long-term value. Our growth opportunity is compelling, our value proposition is resonating, and our ample cash flow affords us the ability to continue delivering value to shareholders, including through both strategic M&A and share repurchase. With that, I will turn it over to Larry. Thanks, Pam.

We are excited to fully launched skybox drive and are on track to do so later this year.

With our vivid feeds flywheel spinning in 2023, we also substantially increased our Tam and enhance the financial profile of our business with two compelling strategic acquisitions.

First with our acquisition of wave Dash in Japan, we began to unlock an estimated incremental <unk> 40 billion of global ticketing Tam.

Then with our acquisition of Vegas Dot Com, we unlocked another $6 billion of venue direct Tam in the entertainment capital of the United States.

Lawrence C. Fey: I'm pleased to share our financial results for an outstanding 2023, which we closed out with a great fourth quarter. For full year 2023, our marketplace GOV of 3.9 billion increased 23% year over year, driven by a 19% increase in total marketplace orders. Robust growth in 2023, on top of 33% marketplace GOV growth in 2022, reflects a healthy end market and strong execution. Fourth quarter marketplace GOV of $1.1 billion increased 31% year over year, fueled by a 36% increase in total marketplace orders. Average order size was $374 in Q4 2023 versus $388 in Q4 2022, with that delta driven by the impact of acquisitions. In the fourth quarter, average order size was up 3% year-over-year.

As we integrate these businesses the pathways to driving synergistic upside from each have become even more clear and compelling.

While it's still early days for Vegas Dot Com, we see great potential and multiple avenues for synergies, we've begun optimizing inventory selection across our sites and anticipate generating revenue synergies this year.

Another exciting intermediate term opportunity is the use of Vegas dot com as a profitable customer acquisition vehicle that also funneled live event enthusiasts into the <unk> ecosystem.

Since last quarter, we've become incrementally excited about the international opportunity ahead of us and have begun building the infrastructure to go live in new markets.

Secular tailwind is driving growth in North America are echoing abroad, we see exciting opportunity to deliver incremental growth and profitability for years to come as we expand into additional geographies.

Lawrence C. Fey: We expect a similar AOS dynamic to persist into 2024 due to our completed acquisition. Excluding acquisitions, our marketplace GOV organically grew double digits in the fourth quarter. As we fully integrate Vegas.com and WaveDash, standalone tracking will become impracticable, and therefore this will be our last disclosure decomposing growth with and without these acquisitions. Our full year 2023 revenues of $713 million increased 19% year-over-year, driven by marketplace GOV growth. Similarly, our fourth-quarter revenues of $198 million increased 20% year-over-year.

Because of this growing excitement we are accelerating our investment into international expansion. This year and believe these investments provide additional pathways to delivering double digit growth for years to come.

Before Larry turns to the financial results.

Want to reflect on what we achieved this year and where we're going in 2024 and beyond.

In 2023, we grew top and bottom line by nearly 25% Cigna.

<unk> significantly expanded our Tam and furthered our objective to be the marketplace of choice for both sellers and buyers.

We also added incremental capabilities, such as game Center and Skybox drive.

Lawrence C. Fey: Our take rate was 15% in the fourth quarter, and we continue to expect take rates of 15.5% or higher in 2024, albeit with quarterly fluctuation to be expected. In the fourth quarter, we generated $35 million of adjusted EBITDA, bringing full year 2023 adjusted EBITDA to $142 million, which was up 25% year over year. We delivered 100 basis points of adjusted EBITDA margin improvement in 2023, as we saw benefits from our increasing share of repeat orders. Turning to cash flow, we generated over $116 million of cash in 2023, and we expect strong cash generation to continue in 2024. Our model benefits from limited capex and negative working capital, which supports strong EBITDA to cash conversion.

To enhance our loyalty program and were once again recognized by Newsweek as having one of the best customer service experiences.

We believe that the foundation, we laid in 2023 reinforces our ability to deliver sustained double digit growth.

We enter 2024 with a $63 billion global ticketing Tam and multiple levers to continue driving durable growth and long term value.

Our growth opportunity is compelling our value proposition is resonating and our ample cash flow affords us the ability to continue delivering value to shareholders, including through both strategic M&A and share repurchases.

With that I will turn it over to Larry.

Thanks, Dan.

I am pleased to share our financial results for an outstanding 2023, which we closed out with a great fourth quarter.

Lawrence C. Fey: This robust cash flow profile provides the foundation for strategic capital deployment. In 2023, our capital deployment strategy featured both strategic acquisitions and share repurchase. We deployed $213 million of cash on financially accretive acquisitions and added $46 billion of TAM in the process. In 2023, we also repurchased 3 million of our own shares.

For full year 2023, our marketplace to year over year of $3 9 billion increased 23% year over year, driven by a 19% increase in total marketplace orders.

Robust growth in 2023 on top of 33% marketplace <unk> growth in 2022.

Flex a healthy end market and strong execution.

Fourth quarter marketplace, <unk> of $1 1 billion increased 31% year over year.

Fueled by a 36% increase in total marketplace orders.

Lawrence C. Fey: Despite these significant investments, we enter 2024 with a cash balance of $125 million, and net leverage of less than one times forward adjusted EBITDA. Today, we are pleased to announce that our board has authorized a new $100 million share purchase program, reflecting our view that our share price has not matched our strong business portfolio.

Average order size was $374 in Q4 2023 versus $388 in Q4 of 2022.

With that delta driven by the impact of acquisitions.

Excluding the impact of acquisitions fourth quarter average order size was up 3% year over year.

We expect a similar AOS dynamic to persist into 2024 due to our completed acquisitions.

Lawrence C. Fey: In terms of 2024 outlook, we are maintaining our marketplace GOV guidance of $4.2 to $4.5 billion and our revenue guidance of $810 to $840 million, as 2024 concert tour announcements in late Q4 and early Q1 have been consistent with expectations. As Stan mentioned, we intend to make additional investments in 2024 in pursuit of attractive international markets. As such, we now expect 2024 adjusted EBITDA in the range of $160 to $170 million.

Excluding acquisitions, our marketplace <unk> organically grew double digits in the fourth quarter.

As we fully integrate Vegas dot com and waved ash standalone tracking will become impractical and therefore this will be our last disclosure decomposing growth with and without these acquisitions.

Our full year 2023 revenues of $713 million increased 19% year over year, driven by marketplace GOP growth. Similarly.

Similarly, our fourth quarter revenues of $198 million increased 20% year over year.

Our take rate was 15% in the fourth quarter and we continue to expect take rates of 15, 5% or higher in 2024, albeit with quarterly fluctuation to be expected.

Lawrence C. Fey: At the midpoint of our guidance, we expect to grow both revenues and adjusted EBITDA by 16% in 2024. With strong secular growth in North America, enhanced by international expansion and strategic M&A, we are confident in our ability to deliver sustained double-digit annual growth. Back to you. Thanks, Larry.

In the fourth quarter, we generated $35 million of adjusted EBITDA, bringing full year 2023, adjusted EBITDA to $142 million, which was up 25% year over year.

We delivered 100 basis points of adjusted EBITDA margin improvement in 2023, as we saw benefits from our increasing share of repeat orders.

Turning to cash flow, we generated over $116 million of cash in 2023, and we expect strong cash generation to continue in 2024.

Stanley Chia: 2023 was a pivotal year for Vivid Seats, and we couldn't have done it without our talented team and the high-performance culture that we have built, which we are proud to say was recognized again as one of the best places to work in 2024. Before we open it up to questions, I'd like to highlight an upcoming transition for our leadership. After a great five-year run, our Chief Technology Officer, John Wagner, is planning to retire in the first half of this year.

Our model benefits from limited Capex.

Negative working capital, which supports strong EBITDA to cash conversion.

This robust cash flow profile provides the foundation for strategic capital deployment.

In 2023, our capital deployment strategy featured both strategic acquisitions and share repurchases.

We deployed $213 million of cash on financially accretive acquisitions.

<unk> added 46 billion of Tam in the process.

Stanley Chia: Accordingly, he will transition into a technical advisor role to ensure a smooth transition. I want to sincerely thank John for his leadership and friendship and to recognize his many integral contributions to Vivid Seats. We are grateful for his commitment over the past five years and for continuing to provide his valued perspective as a technical advisor through this planned transition. As we look forward, we are excited to welcome Stefano Langenbacher later this month as our new Chief Technology Officer. Stefano has extensive expertise leading technology teams for high-performing consumer-facing e-commerce brands, joining us most recently from Suitsupply, where he served as CTO for the past six.

In 2023, we also repurchased $3 million of our own shares.

Despite these significant investments we enter 2024 with a cash balance of $125 million.

Net leverage of less than one times forward adjusted EBITDA.

Today, we are pleased to announce that our board has authorized a new $100 million share repurchase program, reflecting.

Reflecting our view that our share price has not matched our strong business performance.

In terms of 2024 outlook, we are maintaining our marketplace <unk> guidance of $4 two to $4 5 billion.

Our revenue guidance of $810 million to $840 million at 2024 concert tour announcements in late Q4, and early Q1 have been consistent with expectations.

As Stan mentioned, we intend to make additional investments in 2024 and pursuit of attractive International Tam.

Stanley Chia: His experience optimizing global platforms and international tech stacks while fostering innovation will be invaluable as we capture the international opportunity ahead of us. Stefano is a seasoned technology executive, and his results-driven mindset makes him an ideal leader to drive our technology development at such a pivotal moment in our journey as a global business. To wrap up, looking back at 2023, we are incredibly proud to have delivered nearly 25% top and bottom line growth while furthering our strategic objectives that enhance our ability to deliver sustained double-digit growth, Strong Profitability, and Robust Cash Flow. We are excited to continue our track record of delivering shareholder value in 2024, including through strategic M&A and share repurchase. With that, Operator, let's open it up for questions. Thank you. As a reminder, to ask a question at this time, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

As such we now expect 2024 adjusted EBITDA in the range of $160 million to $170 million.

At the midpoint of our guidance, we expect to grow both revenues and adjusted EBITDA by 16% in 2024.

With strong secular growth in North America enhanced by international expansion and strategic M&A, we are confident in our ability to deliver sustained double digit annual growth.

Thank you Stan.

Thanks, Larry.

2023 was a pivotal year for vivid seats, and we couldnt have done it without our talented team and the high performance culture that we have built which we are proud to say was recognized again as one of the best places to work in 2024.

Before we open it up to questions I'd like to highlight an upcoming transition for our leadership team. After a great five year run our Chief Technology Officer, John Wagner is planning to retire in the first half of this year.

Accordingly, he will transition into a technical advisor role to ensure a smooth transition.

Operator: We ask that you please limit yourself to two questions. One moment while we compile our Q&A. And our first question is going to come from the line of Ralph Schackart with William Blair. Your line is open. Please go ahead.

Want to sincerely, thank John for his leadership and friendship and to recognize his many integral contributions to Vivek <unk>.

We are grateful for his commitment over the past five years and for continuing to provide his valued perspective as a technical adviser through this planned transition.

Ralph Edward Schackart: Good morning, thanks for taking the question. Just in terms of some of the accelerating investments you talked about for international, maybe provide a little bit more color about that, you know, what's attractive about it, you know, why is now the right timing? And then any more color you could add on that.

As we look forward we are excited to welcome stephano longer rocker later this month as our new Chief Technology Officer, Silvano has extensive expertise leading technology teams for high performing consumer facing E Commerce brands joining us most recently from suite supply where he served as CTO.

Stanley Chia: And then secondly, just if you could give an update on the competitive dynamics that you've talked about on previous calls as well. Thank you. Hey Ralph.

So for the past six years.

His experience optimizing global platforms and international Tech stack, while fostering innovation will be invaluable as we capture the international opportunity ahead of US <unk> is a seasoned technology executive and as a results driven mindset makes him an ideal leader to drive our technology development at such a pivotal.

Stanley Chia: Good morning. Hey, look, you know, as we look at the world, and we've always said it, you know, I think we look for really attractive and creative opportunities to invest. You know, and I think as we look at that international landscape, and certainly others who are participating can certainly corroborate this, I think our excitement level has increased from when we first started looking at it. You know, a couple points like that, I think that I'd hit, certainly, we think the international pent up demand was after, kind of a little bit later than what we saw here in the US, but I think we're certainly seeing that acceleration pick up there. We continue to see evolution across multiple poles there as well, which I think leads us to believe that that opportunity is there.

It'll moment in our journey as a global business.

To wrap looking back at 2023, we are incredibly proud to have delivered nearly 25% top and bottom line growth, while furthering our strategic objectives that enhance our ability to deliver sustained double digit growth strong profitability and robust cash flow.

We are excited to continue our track record of delivering shareholder value in 2024, including through strategic M&A and share repurchases.

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

Thank you as a reminder to ask a question at this time. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Stanley Chia: And thus, we feel really excited about both continuing to hold our, you know, I think, top line trajectory that we put out, as well as just frankly, just increase our investment to take advantage of that opportunity. So excited to do that and continue delivering, you know, even with that 16% EBITDA growth on a year over year basis. Now, on the competitive front, you know, I think, look, when we look at that front, I think, as we've said before, there's going to be a lot of ebbs and flows of competition. I think, our perspective is we continue to invest in a differentiated ecosystem, things that allow user stickiness to our platform. I think we continue to do that and see great progress, things like, you know, our repeat order Now, which gives us again a lot of confidence to be able to compete and compete profitably. And Ralph, if I can add one thing, I would just on the European or international opportunity broadly, I would say that's a reflection of the strength we've seen in North America. Live events are not just a North America phenomenon; that growth has been global.

We ask that you please limit yourself to two questions one moment, while we compile our Q&A roster.

And our first question is going to come from the line of Ralph <unk> with William Blair. Your line is open. Please go ahead.

Hi, good morning, and thanks for taking the question.

Just in terms of some of the accelerated investments you're talking about for international.

If you could provide a little bit more color about that.

What's attractive about it.

Is now the right timing.

Then.

Any more color you could add on that and then secondly, just if you could give an update on the competitive dynamics that you've talked about that in previous calls as well. Thank you.

Hey, Rob good morning.

Hey look you know as we as we look at the World and we've always said it I think we we look for are really attractive and accretive opportunities.

Invest.

As we looked at that international land landscape and certainly others, who are participating can certainly corroborate. This I think our excitement level has increased from when we first started looking at it.

A couple of points like that I'd hate certainly we think the international pent up demand was after.

Kind of a little bit later than what we saw here in the U S. So I think we're certainly seeing that acceleration pick up there.

Lawrence C. Fey: And as you've seen some of that, you know, very meaningful growth that we've all enjoyed in the year subsequent to the pandemic, it's created a size of opportunity that's meaningfully larger than it's ever been. And it's sort of reached that critical mass where we thought it was worthy of meaningful focus and investment. So we think it's exclusively positive and exciting. Great. Thanks, Dan. Thanks, Lurk.

We continue to see evolution.

Cross multiple poles, there as well, which I think lead us to believe that that opportunity is there and thus we feel really excited about.

Both continuing to hold our.

I think top line trajectory and that we put out as well as just frankly, just increase our investment to take advantage of that opportunity. So.

Excited to do that and continue delivering.

Maria Ripps: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Maria Ripps with Canaccord. Your line is open. Please go ahead. Good morning, and thanks for taking my call.

Even with that 16% EBITDA growth on a year over year basis.

Now on the competitive front I think look when we look at that front I think as we've said before there's going to be a lot of ebbs and flows of competition I think.

Our perspective is we continue to invest in differentiated ecosystem things that allow user stickiness to our platform.

Stanley Chia: First, could you share maybe a little bit more, Carla, on how consumers are engaging with your loyalty program now that the new format has been in the market for a couple of years and supported by brand messaging? You talked about increasing repeat orders by 60%, but it would be great to see a little bit more color. Yeah. Hey, Maria.

We continue to do that and see great progress in things like our repeat order mix moving up to almost 60%.

Now, which gives us again, a lot of confidence to be able to compete and compete profitably.

Ralph if I can add one thing I would just on the European or international opportunity broadly I would say that's a reflection of the strength we've seen in North America or live events is not just North America phenomenon that growth has been global and as you've seen some of that very meaningful growth that we've all enjoyed.

Stanley Chia: Yeah, I think it starts from, as you said, I think one of our key differentiators has been that loyalty program. We've been out there now, you know, with this revived message, buy 10, get one free. And frankly, beyond that message, I think it has been surrounded, if you will, by multiple things, whether how we engage with partnerships to drive really unique differentiated experiences, if you are part of our loyalty program, like, you know, our speakeasy at the Dodgers Stadium or guaranteed Jumbotron time, you know, with the Kings. So I think we've continued to see all of that driving one, as we've talked about increasing the mix And as a reminder, each one of those orders is significantly more profitable and sticky than a new order.

And the three year subsequent to the pandemic it's created.

Size of opportunity, that's meaningfully larger than it's ever been and it's sort of reached that critical mass where we thought it was worthy of a meaningful focus on investment. So we think it's exclusively positive exciting moment.

Alright, Thanks, Dan Thanks, Larry.

Thank you and one moment as we move on to our next question.

And our next question is going to come from the line of Maria <unk> with Canaccord. Your line is open. Please go ahead.

Great Good morning, and thanks for taking my questions.

First could you share maybe a little bit more color on how consumers are engaging with your loyalty program now that the new format has been in market for a couple of years and supported by brand messaging you talked about increased sort of.

Stanley Chia: When we then look, you know, across the other ecosystem investments that we make to keep them there, our Game Center program, right where we've got that now, 260,000 users, almost no marketing to acquire them, also driving accelerated purchase frequency. And then, frankly, when you look at the brand channels and the investments, you can certainly see the creative oriented around, you know, loyalty being a unique proposition that's differentiated. And we certainly see those campaigns performing and driving increased purchase propensity as well. Great.

Christian repeat orders at 60%, but it would be great to hear a little bit more color on that.

Yeah, Hey, Maria.

Yes, I think it starts from as you said you know I think one of our key Differentiators has been that loyalty program, we've been out there now.

With this revised message buy 10 get one free and frankly beyond that message I think it has been surrounded if you will by multiple things, whether how we engage with partnerships to drive really unique differentiated experiences. If you are part of our loyalty program.

Our speakeasy at Dodger stadium or guaranteed jumbotron time.

Maria Ripps: And then, now that you have operated Vagas.com for a few months, can you maybe just talk about your ability to cross-promote your core brand and sort of bring new customers to Vivid Seats? Yeah, I think we are. You know, it's still early days. I think we are pretty excited about the opportunity to do that. You know, I think we have already started with some of that cross-pollination, whether it is across the inventory that now we can surface across multiple platforms, whether that is in, you know, I think our core thesis of Vegas.com being a profitable customer acquisition engine that we can funnel users as they return to their homes into the ecosystem of Vivid Seats with Rewards and Game Center. We are in early days, but we are certainly quite bullish in terms of the early signs that we're seeing there. Thank you so much for the call.

With the Kings. So I think we've continued to see all of that driving one as we've talked about increasing mix of repeat orders right up almost 12% to 13 100 basis points. Since we started the program and as a reminder, each one of those orders significantly more profitable and sticky.

And.

Then a new order when we then look across the other ecosystem investments that we make to keep them there.

Our game Center.

Program right, where we've got that now 260000 users almost no marketing to acquire them in also driving accelerated purchase frequency.

And then frankly when you look at the brand channels on the investments you can certainly see the creative oriented around loyalty being a unique proposition that is differentiated and we certainly see those campaigns performing and driving increased purchase propensity as well.

Curtis Smyser Nagle: And our next question... Online from Kurt Nagle with B of A. Your line is open, please go ahead. Great, thanks very much for taking the question. Yeah, I guess one first for Larry, just could we walk through the cadence of GMV and EBITDA for the year? Just looking like a lot of noise, obviously, or in pieces last year, right?

Great and then.

Now that you've operated stack is dot com for a few months can you maybe just talk about your ability to cross promote you co brand that sort of brand new customers to the <unk> platform.

Yes, I think we are it is still early days I think we are pretty excited about the opportunity to do that and I think we.

We have already started with some of that cross pollination, whether it is across the inventory that now we can surface across multiple platforms, whether that is in I think our core thesis of Vegas dot com being a profitable customer acquisition engine that we can funnel users as they return to their homes in.

Lawrence C. Fey: You had the lowest GMV in one cube but the highest EBITDA margin. Presumably that's gonna kind of, without a little bit, you know, with the acquisitions, but if we could just work through, walk through again, how to, sequence that, you know, by quarter, that'd be really great. Thanks. Thanks, Curtis.

Lawrence C. Fey: You know, I probably start by pointing to 23 as an example of some of the quarterly oscillation that is why we generally focus on the annual guidance. But as you think about a prototypical year, I would start with the volume side. I think you'll generally see, and you saw this in 2023, the year starts slower than it finishes. Q1 is typically the lightest quarter, and Q4 is typically the strongest quarter.

To the ecosystem of vivid seats with the rewards with game Center we.

We are early days, but we are certainly quite bullish in terms of the early signs that we're seeing there.

Got it. Thank you so much for the color Scott.

Okay.

Thank you and one moment as we move on to our next question.

And our next question is going to come from the line of Kurt Nagle with Bofa. Your line is open. Please go ahead.

Alright, great. Thanks, very much for taking my question.

I guess, one first one for Larry just could you walk through the cadence of <unk> EBITDA.

Lawrence C. Fey: And in a normal year, I would say you'd expect operating leverage to behave in an expected fashion. If you look at the lowest GOV quarter, you would expect it to be the lowest margin quarter just because you have some fixed costs that get leveraged over a lower bottom. And so if you look at last year, you know, roughly 22% of GOV for the year in the first quarter.

EBITDA for the year, just looking like a lot of noise. Obviously your pieces last year, where you had the lowest <unk>, but highest EBIT margin, presumably thats going to kind of.

Smooth out a little bit with the acquisitions, but if you could just walk through again, how that sort of sequence of that by quarter that'd be really helpful.

Yeah, great. Thanks, Kurt.

Yes, I'd, probably start by pointing to 'twenty. Three is an example of some of the quarterly observation that.

Lawrence C. Fey: If anything, the acquisitions that we've done in the meantime are more, call them summer weighted because they're primarily in concert and theater-driven categories, and Q1 is a relatively slower concert and theater quarter. Not a material change, but if anything, it's pushing Q1 being a slightly lower percentage of the full year. As you noted, last year in Outlier, we had some favorable accrual adjustments and some atypical marketing cadence. And so I would expect a return to more normal flow through in Q1 this year. Okay, thanks. And then maybe just... Stan, just talking about Skybox.

This is why we generally focus on the annual guidance.

But as you think about a prototypical year.

I would start with volume side, I think youll generally see and you saw this in 2023 the year start slower than it finishes.

Q1 is typically the lightest quarter Q4, typically the strongest quarter.

And in a normal year I would say you would expect operating leverage to behave in a expected fashion so the lowest quarter.

Quarter, you would expect to be the lowest.

Margin quarter, just because you have some fixed costs that get leveraged over a lower volume.

Curtis Smyser Nagle: At least in terms of beta testing, it sounds like it's doing well. Um, yeah, I guess what the plans are... I think you said a launch sometime in the back half of the year.

And so if you look at last year.

Roughly 22% of <unk> for the year in the first quarter.

Stanley Chia: I guess how should we think about monetization of the platform? Yeah. Hey, thank you for the question there. Look, I think we're really proud of what we're doing there. I think we've been really judicious with bringing on beta users and ensuring their feedback there. And as you know, I think the excitement that we have in adding to our already leading seller product base with Skybox Drive, I think, continues to mount. I'd start with, you know, I think we are, certainly don't have any monetization modeled into our guidance.

If anything the acquisitions that we've done in the meantime, our more.

Call it summer weighted because they're primarily concerts and theater driven categories.

In Q1 is a relatively slower concerts and theater quarter.

Not a material change, but if anything it's pushing into Q1 being.

Slightly lower percentage of the full year.

As you noted last year, an outlier we had.

Some favorable accrual adjustments.

Jason Boisvert Bazinet: And therefore, I think anything and everything, should we go down that path, will be upside. I would also point out that I think the precedent for products like that is certainly monetizable. And so I think as we bring that to market, it would not be unreasonable to assume that at some point, we monetize it, and none of that is baked into the guide this year. Thank you, and one moment as we move on to our next question. Our next question is going to come from the line of Jason Bazinet with Citi. Your line is open. Please go ahead. I know there are some pretty big differences in the way the primary market works internationally, but are there any sort of differences as you've sort of done your due diligence internationally on the way that market works, either in terms of marketing intensity or take rates?

Some some atypical marketing cadence.

So I would expect to return to more normal flow through in Q1 this year.

Got it okay. Thanks, and then maybe just.

One for you Stan just talking about skybox.

In terms of a beta test it sounds like it's doing well.

I guess what are the.

Expectations for I think you said a launch sometime in the back half of the year.

I guess, how should we think about monetization of the platform.

Okay.

Hey, Thank you for the question look I think we're really proud of what we're doing there I think we've been really judicious with.

Bringing on beta users ensuring their feedback there and as you heard and I think the excitement that we have and adding to our already leading seller of product base with Skybox drive I think continues to Mount.

I'd start with I think we are we certainly don't have any monetization modeled into our guidance and therefore, I think anything and everything should we go down that path will be upside.

Stanley Chia: Or do you feel like the model is pretty homogeneous globally? Hey Jason, thanks for the question. I think, um... Like I think, structurally, there are some similarities, I think, broadly, if you were to frame international as one opportunity. I think the reality is that each market or each region, if you will, has nuances to them with variability in each of the elements that you talk about. But I think when we look at them holistically, I think we're pretty excited in the ability to compete there, right? I think that's kind of how we look at this. We look at the platform that we've built, the tools that we've built in the ecosystem, and we think that moving into multiple regions internationally, we will have a strong foundation under which we will be able to compete and compete quite effectively. I'd say, though, in terms of differences, I think North America is the sports capital of the world.

I would also point to I think the precedent for products like that is certainly a monetize level one and so I think as we bring that to market. It would not be unreasonable to assume that at some point, we monetize it and none of that is baked into the guide this year.

Okay. Thanks very much.

Thank you and one moment as we move on to our next question.

Our next question is going to come from the line of Jason Bazinet with Citi. Your line is open. Please go ahead.

I know there is some pretty big differences.

And the way the primary market works internationally, but are there any sort of differences as you've sort of done your due diligence internationally on the way that market works either in terms of.

Marketing intensity or take rates or do you maybe you feel like that.

Stanley Chia: Certainly, soccer is popular in many countries, but if you start going down the list of sports that drive meaningful volume in North America, you don't see that replicated. So I would think the international opportunity structurally is similar, but probably more indexed to concert and theater trends. And so you can imagine part of the excitement around the growth opportunity is that those geographies are over indexed to the segments that have been driving disproportionate growth in North America. And can I just ask one to follow up on the international side?

The model is pretty homogenous globally. Thanks.

Hey, Jason Thanks for the question I think.

Look I think I think structurally.

There are some similarities I think broadly if you were to frame international is one opportunity I think the reality is each market or each region. If you will has nuances to them with variability in each of the elements that you talk about but I think when we look at them Holistically I think we're pretty excited and.

The ability to compete there right I think is kind of how we look at this we look at the platform that we've built the tools that we've built in the ecosystem and we think moving into multiple regions internationally, we will have.

Lawrence C. Fey: I know you guys are leveraging your platform, and that'll sort of accelerate the time when a dollar of revenue generates a dollar of EBITDA. But are there any sort of rules of thumb in terms of how long it should take given that you're going to have to sort of establish your brand and do some brand spending before a dollar of revenue generates a dollar of evidence? No firm commitments that we'd want to sign up for just yet, but certainly, the investment that we're making this year is predicated on ensuring that we have fully scalable tech and platform offerings that will minimize, you know, kind of the operational investment beyond the marketing that you called out. So we'll certainly have some sort of learning curve.

A strong foundation under with which we will be able to compete and compete quite effectively.

I'd say in terms of differences.

I think North America is the sports capital of the World.

Soccer is popular.

Countries, but if you start going down the list of sports.

Drive meaningful volume in North America that you don't see that replicate so I would think of the international opportunity structurally are similar but probably more indexed concert in theater trends.

And so you can imagine part of the excitement around the growth opportunity as that those geographies are over indexed to the segments that have been driving disproportionate growth in North America.

Lawrence C. Fey: But I think the view is that the opportunity is significant, robust in that consumers are looking for an alternative, and so we believe that we'll be able to have a value proposition that resonates right up. And if anything, Jason, I think we've always been really disciplined and proud of how we both manage the investments but also run, you know, I think the segments of business that we operate with both growth and profitability. I think when we look at the international segment, I don't think we look at that any different. Okay, thank you.

And can I just ask one follow up on the international side.

<unk>.

I know you guys are leveraging your platform and that will that will sort of accelerate sort of the time when a dollar of revenue generates a dollar of EBITDA.

But are there any sort of rules of thumb in terms of how.

How long it should take given that youre going to have to sort of establish a brand.

And do some brand spending before before the dollar of revenue generates $1 of EBITDA.

No firm commitments that we'd want to sign up for just yet but.

Jason Boisvert Bazinet: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Matt Farrell with Piper Stanley. Your line is open. Please go ahead.

Certainly the investment that we're making this year is predicated on ensuring we have fully scalable.

<unk> platform offerings that will.

Matthew F. Farrell: Thanks for letting me ask the question, guys. First, following the Super Bowl, we'd just love to hear about the early takeaways on Vegas.com. You know, what are some of the key learnings after the first few months of having it in-house?

Minimize kind of the.

Call it operational investment beyond the marketing that you called out.

We'll certainly have some sort of learning curve, but I think.

Stanley Chia: Yeah, hey, um, we're getting started with, I think, your first part, Larry. I think we are excited about Las Vegas as the entertainment capital of the United States and things like the Super Bowl heading there. And we certainly see all the tailwinds there, right? This was a wonderful Super Bowl this year with a great matchup in arguably what is a very relatively small stadium compared to the other NFL stadiums.

The view is that the opportunity is.

Significant robust and that consumers are looking for an alternative and so we believe that we'll be able to.

Have a value proposition that resonates right out of the gate.

And if anything I think we've always been.

Really disciplined and proud and I think in how we both manage the investments, but also Ron I think the segments of business that we operate with both growth and profitability and I think when we look at the international segment I don't think we look at that any different.

Stanley Chia: As I mentioned earlier, and I think we are already seeing signs of... foolishness, you know, as we think about Vegas.com as a platform. Certainly, really excited about the team that we've inherited there and excited about the capabilities. And frankly, like I said, as you look at the early things we've seen, cross-pollination of inventory into the platforms has already yielded some, I would say, upside surprises to how we looked at the model and earlier than we expected as well. So I think we're very excited about that. You'll continue to see us build out on the synergies and build the thesis throughout the year, but certainly, two months in, we're pretty excited about what we've seen so far. And then maybe touching a little bit more on the international investments, you know, what has led you to sort of build for the international opportunity versus buying like you did with wave dash?

Okay. Thank you.

Thank you and one moment as we move on to our next question.

And our next question is going to come from the line of Matt Farrell with Piper Sandler. Your line is open. Please go ahead.

Thanks for letting me ask a question guys first following the Super Bowl would just love to hear about the early takeaways on Vegas Dot Com what are some of the key learnings. After the first few months of having it in house.

Yes, Hey.

I think.

Start with I think your first partly I think we are excited about Las Vegas is the entertainment capital, the United States and things like Super Bowl.

Heading there and we certainly see all of the tailwind there right. This was a wonderful Super Bowl.

This year with a great match up and arguably what is a very relatively small stadium compared to the other NFL stadiums.

As I mentioned earlier and I think we are already seeing signs of.

Bullishness as we think about that.

Stanley Chia: And maybe just a quick follow-up is, you know, what takeaways from the wave dash deal have you seen that have led you to sort of lead with the build this time around? Thanks. Yeah, maybe I'd split that out. I think I'd maybe start from the tail end. Look, I think, again, when I look at the asset that we acquired in WaveDash, it came with a wonderful team, a market-leading position at an accretive multiple, kind of setting the stage to really help us learn and continue to frankly drive cash flow into the business as well as fund other accretive opportunities. I am so excited about that.

<unk> dot com as a platform certainly really excited about the team that we've inherited they're excited about.

The capabilities and frankly like I said as you look at the early things, we've seen cross pollination of inventory.

Into the platforms has already yielded.

Some some I would say upside surprise to how we looked at the model and earlier than we expected as well so I think.

We're very excited about that Youll continue to see us bill.

Build out on the synergies and build out on the thesis that throughout the year, but certainly.

Two months and we're pretty excited about what we've seen so far.

And then maybe touching a little bit more on the international.

Matthew F. Farrell: One of the big areas that we saw there with our WaveDash acquisition, which Larry touched on earlier, which we certainly see corroborated again by others where others in the space are certainly citing significantly higher growth in international versus North America, is that, you know, as we see that concert landscape internationally, that is certainly outpacing and out-indexing, I think, growth expectations. And we've seen that in WaveDash, and we continue to expect to see that in the wider landscape as well. And then on the build versus buy issue, you know, I don't think that building a platform that allows us to leverage the skills that we have would inhibit the purchase should we find an attractive asset. And I think we've demonstrated, you know, I think with our history again, that should the right asset become available where we end up with conviction and value, strategic value, and financial accretiveness, I don't think we'd be opposed to accelerating anything through that. But at the same time, you know, I think we are bullish and believe that the product advantages that we have invested in from a technological perspective will allow us to scale and take advantage of the international opportunity, even if we were to find an asset that we were to acquire to accelerate that endeavor. All right.

<unk>.

What has led you to sort of build for the international opportunity versus buying like you did with wave dash and maybe just a quick follow up is what takeaways from the way the SCO.

Have you seen that has led you to sort of lead with the bill that this time around.

Yeah.

Okay.

Yes, maybe I'll split that out I think.

Maybe start from the Taylor and look I think again when I look at the asset that we acquired in the wave that came with a wonderful team a market leading position at an accretive multiple kind of setting the stage to really help us learn and can it continue to frankly drive cash flow into the business as well to fund other accretive opportunities.

Cited about that one of the biggest areas that we saw there with our wave dash acquisition, which Larry touched on earlier, which we certainly see.

Corroborated again by others, where others in the space are certainly, citing significantly higher growth in international versus North America is that as we see that concert landscape internationally that is certainly outpacing our indexing I think growth expectations, and we've seen that and waved ash and we continue to expect to.

See that.

Broadly in the landscape as well.

And then on the build versus buy and I don't I don't.

Ever think that building a platform that allows us to leverage the skills that we have would inhibit.

Cameron Mansson: Thank you. We'll move on to our next question. One moment, please.

The purchase should we find an attractive asset and I think we've demonstrated I think with our history again that should the right asset become available.

Stanley Chia: And our next question is going to come from the line of Cameron Manson Perrone with Morgan Stanley. Your line is open. Please go ahead.

Where we end up with conviction and value strategic value and financial a creativeness I don't think we'd be opposed from accelerating anything through that but at the same time I think we are bullish in.

Cameron Mansson: Thanks. Just to follow up on the international side, I would be interested in anything you're willing to say in terms of how you're thinking about the geographic opportunity and which geographies, new geographies, seem like more compelling opportunities to you from here. And then on the share repurchase program, I'd just be interested to hear a little bit more in terms of how you're thinking about the program, how to deploy it, and the level to which we should expect you to be leaning into it or the kind of the cadence of leaning into that program would be helpful. Thanks guys. Yeah, Cameron, so on the international landscape, I think it's too early to point you to specific regions that we'd like to talk about at this time.

Believe that the product advantages that we have invested in from a technology perspective will allow us to.

Scale and take advantage of the international opportunity.

Even if we were to find an asset that we were to acquire to accelerate that that endeavor.

Thank you we'll move on to our next question one moment. Please and our next question is going to come from the line of Cameron Manson <unk> with Morgan Stanley. Your line is open. Please go ahead.

Thanks.

Just to follow up on the international side.

Would be interested in anything you're willing to say in terms of how youre thinking about.

The geographic opportunity and kind of which.

Stanley Chia: But I would, I would, you know, I think put out there that we are looking at that really excited about the broad opportunity to invest in that area. And I think all of those investments, I would say, really position us to continue with double-digit growth on both the top and bottom line. And I think, you know, we remain, like I said, more bullish than ever that international becomes a vehicle to help us really accelerate and drive those growth vectors along both the top and bottom lines. And on the share repurchase.

Geographies, new geographies scene.

Like more compelling opportunities to you from me and then.

On the share repurchase program I'd, just be interested to hear a little bit more in terms of how youre thinking about.

The.

How to deploy that in that level.

The level to which you we should expect you to be leaning into it or the kind of the cadence.

Leaning into that program would be helpful. Thanks, guys.

Yes, Cameron so I think on the international landscape I think too early to point you to speak to specifics.

Regions that we'd like to talk about at this time, but I would I would.

I think put out there that we are looking at that really excited about the broad opportunity.

Lawrence C. Fey: We've been buyers of our shares in the past, and I think we've had some competing considerations on how much we could buy. But with some additional liquidity that's been created over the last year, I think that provides additional flexibility. If you look back, we were buying shares at levels at or above where we trade today. And that was a year ago when our EBITDA was... We have observed a disconnect between our share price and our underlying performance. We're, as you can hear in our tone, quite bullish on the opportunity ahead of us. And so that disconnect, we think, reveals a meaningful option. Got it, thanks.

To invest into that area and I think all of those investments I would say.

Say really position us to continue with double digit growth on both the top and bottom line and I think we remain like I said, I think more bullish than ever that international becomes a vehicle.

To help us really accelerate and drive those those growth.

Vectors, along both top and bottom line.

And on the share repurchase.

We've been buyers of our shares in the past I think we've had some competing considerations on how how much we could buy but with some additional liquidity. That's been created over the last year I think that provides additional flexibility. If you look back when we were buying shares that.

Benjamin Thomas Black: Thank you, and one moment as we move on to our next question. And our next question comes from the line of Benjamin Black with Deutsche Bank. Your line is open. Please go ahead.

Levels at or above where we trade today and that was a year ago and our EBITDA was 50.

<unk> $60 million less than the midpoint of our guidance currently.

Lawrence C. Fey: Hey, good morning, and thank you for the questions. Perhaps just an update on the broader macro environment, you know, how healthy is the male backdrop in the US? And what are you embedding in your guide in terms of sort of macro assumptions? And then, secondly, I guess President Biden has obviously been talking a lot about eliminating drip fees or junk fees. Could you have a sort of more broadly talk about the regulatory backdrops as well? Thank you. Yeah, I can. I'll take the first on the macro environment.

I think suffice it to say we have observed a disconnect between our share price and our underlying performance.

We're as you can hear in our tone.

Quite bullish on the opportunity ahead of us.

And so that that disconnect we think.

<unk> is a meaningful opportunity got.

Got it thanks.

Thank you and one moment as we move on to our next question.

And our next question comes from the line of Benjamin <unk> with Deutsche Bank. Your line is open. Please go ahead.

Hey, good morning, and thank you for the questions.

Perhaps just an update on the broader macro environment, how healthy is the demand backdrop in the U S and what are you embedding in your guide in terms of sort of macro assumptions.

Stanley Chia: Yeah, I'd say we've continued to see strength in all of the results to date on the supply side. We've seen Live Nation's commentary. They remain quite bullish. We saw what I would characterize as consistent with expectations, but expectations were fairly robust in terms of concert sales, major artists, Usher, Justin Timberlake, Dead & Company, I think continuing to demonstrate that supply is present and quality supply is coming. And on the demand side, we've continued to see, you know, positive strength. You know, if you look at the Super Bowl, college football playoffs, some of the marquee events thus far in Q1, you've seen exceptional strength, partially driven by the matchups.

And then secondly, I guess.

President vitamins, obviously been talking a lot about eliminating drip feeds of junk feeds.

Could you have sort of more broadly talk about sort of the regulatory backdrop as well. Thank you.

Yes, I'll take the first on the macro environment.

Yes, I would say we've continued to see.

Strength in all of.

The results to date.

On the supply side.

You've seen live nation's commentary they remain quite bullish we saw what I would characterize as a consistent with expectations, but expectations are fairly robust in terms of concert on sales with major artists Crusher, Justin Timberlake that <unk> company.

I think continuing to demonstrate that supply.

As president and quality supply is coming.

Stanley Chia: But I think it is reflective that you continue to see underlying demand strength as well. And so, perhaps contrasting with this time last year when there was a lot of active concern around hard landing versus soft landing, and looming consumer softness. I think at this point, we feel that there's pretty nice stability in that. Yeah, and then moving to the regulatory environment, look, I think, you know, I think we have always been out there and big supporters of driving a competitive and level playing field so that, you know, I think those with the best platforms and transparent platforms win for consumers. And, you know, I guess, as we see the progress on driving transparency into that, you know, I think we are supporters, right? And I think where we've seen those go in at the state level, I think we've certainly been beneficiaries, right?

And on the demand side, we've continued to see.

Positive strengthen.

Yes, if you look at Super Bowl College football playoffs, some of the marquee events, thus far in Q1, <unk> seen exceptional strength, partially driven by the match ups, but I think reflective that you continue to see underlying demand strength as well.

And so perhaps contrasting with with this time last year. When there was a lot of active concern around.

Hard landing versus soft landing looming consumer softness I think at this point we feel.

There is pretty nice stability in that realm.

Yes.

Yes, and then moving to the regulatory environment look I think I think we have always.

Been out there in big supporters of driving a competitive and level playing field. So that I think those with the best platform and transparent platforms win for consumers.

As we see the progress.

On driving transparency into that and I think we are supporters right and I think where we've seen those.

It does go in at the state level I think we certainly been beneficiaries right. When you look at again, our cost structure, our ability to be lean are a little our ability to.

Stanley Chia: When you look at, again, our cost structure, our ability to be lean, our little, our ability to drive competitive products and drive profitability and cash flow at the same time while doing that, I think we are seeing benefits in that landscape. And I go back to, you know, I think as that progresses at the federal level and we see continued progress on that, I think we are bullish, I think, on the prospects that it brings us as the President and his efforts there continue to move forward. Excellent Thank you very much.

Drive competitive product and drive profitability and cash flow at the same time, while doing that I think we are seeing benefit in that landscape and I go back I.

I think as that progresses to the federal level and we see continued progress on that I think we are.

Bullish I think on the prospects that brings to us.

As the president and his efforts there continue to move forward.

Excellent. Thank you very much.

Brad Erickson: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Brad Erickson with RBC Capital Markets. Your line is open. Please go ahead.

Thank you and one moment as we move on to our next question.

And our next question is gonna come from the line of Brad Erickson with RBC capital markets. Your line is open. Please go ahead.

Stanley Chia: Yeah, thanks. Just to follow up maybe on the international investments you talked about, do the M&A opportunities in, say, Europe or Asia tend to be like a single country or multiple countries? Historically, I think, you know, when you look at marketplaces that go overseas, they tend to be kind of, you know, branded country to country.

Yes.

Follow up maybe to the international investments you talked about.

The M&A opportunities in Europe, or Asia does tend to be like a single country or mulch.

Multiple countries historically I think you look at marketplaces.

Overseas, they tend to be kind of branded country to country, but curious if thats the right way to think about ticketing players.

Stanley Chia: I'd be curious if that's the right way to think about ticketing players and, you know, or just on those investments or are they marketing investments or maybe more just like integration costs, for example. Any color there would be great to follow up. Hey, Brad. Hey, look, I think you know it.

On those investments or marketing investments or maybe more just like integration costs. For example, any color there would be great.

No.

Yeah.

Hey, Brad Yeah look I think.

Stanley Chia: I think probably the answer you're looking for is it really depends, right? I think if you look at the different regions and polls, you're going to find players that compete across multiple domains. You're certainly going to find, I think, those, like we found, where you've got potentially a leading player in the market like Wavedash. But I think it really is a broad category, it depends. And there's certainly going to be every flavor out there. And, you know, I think as we continue to organically build and assess assets that are available, should we find an accretive opportunity for us that we like, I think we're certainly going to pursue that and certainly have the balance sheet and appetite to do it.

Ed.

I think the probably the answer Youre looking for or is it really depends right I think as you look at the different.

Regions pulls I think youre going to find players that compete across multiple domains youre certainly going to find I think those.

Like we found where you've got potentially a leading player in market like waived ash.

But I think it really is a broad it depends and there's certainly going to be every flavor out there and I think as we continue to organically build NSS assets that are available should we find an accretive opportunity for us that we like and I think we're certainly going to pursue that and certainly have the balance sheet and.

<unk> appetite to do it.

Stanley Chia: I think frankly, part of the opportunity is predicated on there being a relatively short list of competitors at scale internationally today, which provides the opportunity for a new entrant, in our minds. So we're excited on that front. On the nature of the investment, I would characterize the guide as reflecting what we believe to be, call it, the platform investments required to be ready to successfully and scalably enter the market. What it does not contemplate is neither the revenue nor the, call it, marketing, or operating expense of it.

Yes, I think frankly part of the opportunity is predicated on a relatively short list of.

Competitors at scale internationally today, which provides the opportunity for a new entrant in our mind so.

We're excited on that front.

The nature of the investment I would characterize that.

Guide, reflecting.

What we believe to be call. It the platform investments required to be ready too.

Successfully and scalable to enter the market.

It does not contemplate is neither the revenue nor the call it.

Marketing operating expense.

Lawrence C. Fey: Got it. That's helpful. And then just to follow up, I guess, you know, you had some pretty big prices, Halo Lens in 2023 in particular. I won't ask directly if Taylor Swift was baked into the guy, just on that front, just curious kind of what's embedded.

Before it.

Got it that's helpful. And then a follow up I guess, you had some pretty big.

<unk> <unk>.

<unk> in 2023 in particular.

I'll ask directly with Taylor Swift baked into the guide just on that front, just curious kind of what's embedded in terms of your assumptions for pricing and just curious if after all the tailwind last year to 24 kind of set up organically for the industry, maybe to just grow a little bit below norm.

Brad Erickson: I'm curious if, after all those tailwinds last year, does 24 set up organically for the industry maybe to just grow a little bit below the normal that you've talked about in the past? Yeah, yeah, thanks. Thanks for that. I'll start with something idiosyncratic to us, which is that both Vegas and WaveDash come in at a lower average order size than the existing business. And so you saw this in Q4, where our average order size on a reported basis was down 4%. On an apples-to-apples basis, it was actually up.

<unk> that you've talked about in the past.

Yeah. Thanks, Thanks for that.

Chart with idiosyncratic to us, which is both Vegas and waved ash come in.

At a lower average order size.

And then the existing business and so you saw this in Q4.

Where our average order size on it.

Reported basis was down four.

<unk>, 4%.

On an apples to apples basis.

Lawrence C. Fey: You'll see that trend continue throughout 2024 as you have the reported results reflecting the combined basis. That said, I think, as you called out, the large Taylor Swift, in fact, was almost entirely based on average order size.

<unk> up Youll see that trend continue throughout 2024.

Have the reported results, reflecting the combined basis.

That said I think as you called out.

Yes.

The the large Taylor Swift. The fact, it was almost entirely on an average order size was playing in the same size stadiums as other lessors and so as you lap that kind of unique outlier then I think you would expect.

Brad Erickson: She was playing in the same size stadiums as other A-listers, and so as you lapped that unique outlier event, I think you'd expect the underlying AOS to be still positive, but a little bit muted relative to what we saw this past year, but continuing to see fundamental underlying strength. Got it, thanks. We'll end one moment for our next question. Our next question is going to come from the line of Ryan Sigdahl with Craig Hallam Capital Group. Your line is open. Please go ahead.

The underlying AOS for the still positive, but a little bit muted relative to what we saw this past year.

But continue to see fundamental underlying strength.

But for that comparison got it thanks.

And one moment for our next question.

And our next question is going to come from the line of Ryan <unk> with <unk>.

Craig Hallum Capital Group. Your line is open. Please go ahead.

Ryan Sigdahl: Hey, good morning, Stan, and Larry. Not to beat a dead horse here on international spending, but you didn't change the GOV and revenue guidance, 10 million incremental spend. I guess that's the right assumption that you're layering in structural investment and infrastructure this year with no incremental revenue assumed in the guidance for that in international spend. Yeah, that's exactly right. Yeah, I think the view is, put the effectively the fixed overhead burden into the numbers, and then when we're ready to press go, we'll then... have both revenue and operational spend on the marketing front as we actively. And then just on Skybox Drive, you have a new competitor with new fan to fan reselling tools, a kind of similar ERP for fan sellers, but I guess there will be no notable market share change for Skybox ERP with the professional sellers or just the market overall.

Hey, good morning, Stan Larry.

Not to beat a dead horse here on international but yes.

Didn't change <unk> and revenue guidance 10 million of incremental spend I guess is the right assumption that youre layering in structural investment.

The infrastructure this year with no incremental revenue assumed in the guidance for that in international spend.

Yes, that's exactly right.

I think the view is.

Put the effectively.

Fixed overhead burden into the numbers.

And then when were ready to press go we'll then.

At both revenue and.

Operational spend on the marketing front.

We actively launch.

Okay.

And then just on Skybox drive.

Have a new competitor with a new fan to fan reselling tools kind of similar ERP for fans sellers, but I guess any notable market share change for skybox ERP with the professional sellers.

Or just the market overall.

Ryan Sigdahl: Yeah, I think, you know, on Skybox, look, I think we're really excited. So if you take out Drive for a moment and just look at Skybox, I think we continue to onboard new sellers on, increasing the share that we already have with Skybox. And I think as we look at, you know, the launch of Drive, I think that looks to really cement our leading position with an adder that really provides, I think, the combination of Skybox and Skybox Drive is really a unique offering that no one player will be able to provide with very, very unique capabilities for the professional seller. And so I remain bullish on that, given that professional sellers represent, you know, call it about 80 percent of the entire secondary Great. Thanks, guys. Good luck! Thank you. You in just one moment.

Yes, Scott So look I think we're really excited so if you take out drive for a moment and just look at Sky box I think we continue to onboard new.

Sellers on increasing the share that we already have.

With Skybox and I think as we look at the launch of drive I think that looks to really cement.

<unk> I think our leading position with an adder that really provides I think the combination of skybox and Skybox drive I think a really a unique offering that no. One player will be able to provide with very very unique capabilities for the professional seller and so yes, I think remained bullish on that given that professional sellers represent.

Call it about 80% of the entire secondary ecosystem.

Great. Thanks, guys. Good luck.

Thank you.

Okay.

Thank you and one moment for our next question.

Lawrence C. Fey: And our next question comes from the line of Dan Kurnos with The Benchmark Company. Your line is open. Please go ahead. Thanks. Good morning.

And our next question comes from the line of Dan <unk> with Benchmark Company. Your line is open. Please go ahead.

Thanks, Good morning.

Stanley Chia: Just to clean up on everyone's favorite topic this morning, Stan, I guess, or Larry, just in terms of the guide change, is that just a timing issue for you guys, like you had planned this before? I mean, you guys don't do anything haphazardly, so, you know, was it a specific opportunity that sort of dictated this, or are you guys just not ready to talk about it yet? And can you leverage, obviously, you guys have a very unique corporate structure that has a lot of international relationships already, so is there a way to leverage that as you expand in the international market? Hey Dan.

Just to clean up on everyone's favorite topic. This morning.

Stan I guess or Larry just in terms of the guide change is that just the timing of announcement for you guys. Like you had planned this before I mean, you guys don't do anything haphazardly. So.

Was it a specific opportunity that sort of dedicated this or you guys are just not ready to talk about it yet and can you.

Leverage obviously, you guys have a very unique corporate structure that has a lot of international relationships already so is there a way to leverage that as you expand in the international markets.

Hey, Dan.

Stanley Chia: Thanks for the question. Yeah, you know, I think, look, I think we're pretty deliberate, I would say, yeah, we're pretty deliberate and quite judicious in how we plan. And, you know, as we said, I think pretty transparently, you know, I think our excitement level for the international opportunity has grown since the last time that we did this, okay. And when you look at it, like, I think we've reaffirmed our top line guidance, okay. And, you know, I think, still double-digit on top and bottom line growth. And, despite, you know, accelerating our international investment, which again, I point to others in the industry, with sizable outpacement in international contribution versus domestic is certainly one of, but not the only data point out there that I think fuels our excitement. And so we pulled forward a lot of that investment to make sure that we can drive the platform readiness that we'd like to take advantage of.

Thanks for the question, Yes, I think look I think we.

I would say, yes, we're pretty deliberate I think in quite judicious in how we plan and I think.

As we said I think pretty transparently I think our excitement level for the international opportunity has grown since the last time that we did this right in.

When you look at it right I think we've reaffirmed our topline guidance right I think still double digit on top and bottom line growth. Despite <unk>.

Accelerating our international investment, which again I point to others in the industry.

With sizable outpatient in international contribution versus domestic is certainly one of but not the only.

A data point out there that I think fuels our excitement.

And so we pulled forward a lot of that investment to make sure that we.

We can drive the platform readiness that wed likely to take advantage of that and in spite of that still delivering a 16% year over year EBITDA growth.

Lawrence C. Fey: And in spite of that, still delivering, you know, 16% year over year growth. Yeah, I think Dan, as we've talked about in the past, on a North America basis, we think our foundational growth will be in the double-digit range over the intermediate term. I think we view this international opportunity as another pathway to ensure that you're hitting and or exceeding that double-digit top-line opportunity. So when we look back on the most exciting parts of the 2023 results, expanding the TAM the way we did and now seeing that opportunity continue to reveal itself in a way that's more, not less exciting to just give incremental pathways to delivering that sustained double-digit growth leads us to our statement that we do this with all excitement Yeah, Larry, can I just double-click on that? Because obviously, you guys have said about as many times as possible sustainable double-digit growth going forward. I don't think that's lost on anyone.

Yes, I think Dan Yeah, we've talked about in the past on a North America basis, we think our foundational growth.

We will be in the double digit range over the intermediate term I think we view the international opportunity is just another pathway to ensure that you are hitting or exceeding that double digit top line opportunity. So when we look back on the most exciting parts of vision 2023 results expanding the Tam we.

The way, we did and now seeing that opportunity to continue to reveal itself in a way that's more not less exciting.

Incremental pathway for delivering that sustained double digit growth.

Our statements that we do this all exciting news.

Yes, Larry can I, just double click on that because obviously you guys have said about as many times as possible sustainable double digit growth going forward I don't think thats lost on anyone and it's certainly above industry growth rates.

Lawrence C. Fey: And it's certainly above industry growth rates. You just beat your 2022 guide by 30% basically, and you know, I guess I'm just trying to understand sort of the level of conservatism to start here, I guess we have the international piece, and just maybe some of the underpinnings, understanding, yes, you have to comp, I guess we'll call it tay-on-say this summer, but the concert environments are up like double digits, attendance is up double digits Yeah, I think as we look out over the foreseeable future, it's very high. You know, when you start layering on the opportunities both in North America and with the international path, you have multiple ways to get there. Yeah, you called out right the reality is that there's only one Taylor Swift.

You just beat your 2022 guide by 30% basically and I guess I'm, just trying to understand sort of either the level of conservatism to start here I guess, we've got the international piece and just maybe some of the underpinnings understanding yes, you have to comp I guess, we'll call. It pay on say this summer but the.

Concert environments up like double digit attendance up double digits. So just the confidence level you have in sort of underpinning that 10 plus percent, let's call. It at least top line and probably bottom line growth from here as well.

Yes, I think as we look out over the foreseeable future.

<unk>.

Very high.

When you start layering on the opportunities both alright.

In North America, and with the international path, we have multiple ways to get there.

Yes, I think you called out the.

<unk> is that there is only one Taylor swift and so will that be.

Lawrence C. Fey: And so, you know, will that impact our average order size this year? It sure will change our fundamental average order size trajectory. Absolutely not. So come 2025, we'll be right back on that Average order size wagon alongside that we're just seeing really strong order growth. If you look at our q4 numbers, I think you can see that right thirty-three six percent Order growth in q4 in a, you know, call it a stable underlying average order size environment. And so I think that reveals fundamentally well-matched supply and demand and a fundamental increase in the number of live events. Yeah, maybe to bring it all home, Dan and Larry, I think the term he used was "Teyonce," which I think we might trademark for Dan.

Impact our average order size this year sure will change our fundamental average order size trajectory absolutely not.

2025, we'll be right back on that.

<unk> order size wagon alongside that we're just seeing really strong order growth. If you look at our Q4 numbers, maybe you can see that 36%.

Order growth in Q4.

Call it stable underlying average order size environment, and so I think that reveals.

Just fundamentally well match supply and demand.

And a fundamental increase in the amount of live events consumption that youre seeing.

Bring it all home Danon and Larry I think the term you used was pay on Fei, which was saying we might trademark for Dan Thats pretty good it was good.

Lawrence C. Fey: That's pretty good. That was really good. But look, I do think, you know, Dan, it comes back to when you ask about conservatism. Look, I think we've been out there now, you know, a public company for many, many quarters, and I think we've been really focused on making sure that, you know, when we put numbers out there, we have the ability to hit them. And I think we've delivered consistent, I think performance against the guidance that we put out And I think we're out there, not just saying that, but look, we believe, and the confidence level is high enough that, you know, I think the board and ourselves have also authorized a $100 million share repurchase, right?

Well look I do think Dan It comes back to when you ask like conservatism look I think we've been out there now a public company for many many quarters and I think we've been.

Really focused on making sure that when we put numbers out there we have the ability to hit them and I think we've delivered consistent.

I think performance against the guidance that we put out there and the ability.

To continue growing Tam growing top and bottom line as you said sustainably in the double digit range on both top and bottom and I think we are out there not just saying that but look we believe and the confidence level is high enough that you know I think the board.

And ourselves have authorized also a $100 million share repurchase right. So I can't think of anything.

Lawrence C. Fey: So I can't think of anything more that would overemphasize our own confidence and bullishness in the performance than our continued track record, our continued ability to invest, and, frankly, putting our money where our mouths are and saying, hey, look, we believe there's opportunity in the share price, and we're very willing to back ourselves up on that by repurchasing shares as well. It makes total sense.

More of that wood overemphasize, our own confidence and bullishness in the performance and our continued track record our continued ability to invest and frankly, putting our money, where our mouths are and saying Hey look we believe theres opportunity.

And the share price and very willing to <unk>.

Back ourselves up on that by repurchasing shares as well.

Makes total sense, thanks, guys I appreciate it.

Daniel Louis Kurnos: Thanks, guys. I appreciate it. Thank you. This will now conclude our question and answer session. Ladies and gentlemen, this also will conclude today's conference call. Thank you for participating, and you may now disconnect. Everyone have a great day.

Thank you this will now close our <unk>.

<unk> and answer session.

Ladies and gentlemen, this will conclude today's conference call. Thank you for participating and you may now disconnect everyone have a great day.