Q1 2024 Vivid Seats Inc Earnings Call

Operator: Good morning, and welcome to the Vivid Seats first quarter 2024 earnings conference call. Following management's prepared remarks, we will open the call for Q&A. I would now like to turn the call over to Kate Africk.

Good morning, and welcome to the debit seats first quarter 'twenty 'twenty four earnings conference call.

Management's prepared remarks, we will open the call for Q&A I would now like to turn the call over to Kate Africa.

Kate Africk: Good morning, and welcome to Vivid Seats' first quarter 2024 earnings conference. 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 Fay, Chief Financial Officer. By now, everyone should have access to our first quarter earnings press release, which we released earlier this month. The press release, as well as supplemental earnings slides, are available on the Investor Relations page of Vivid Seats' website at investors.vividseats.com.

Kate Africk: Good morning, and welcome to the Liberty first quarter 'twenty 'twenty four earnings conference call I'm, Kate Afric head of Investor Relations activity.

Kate Africk: Joining me today to discuss.

Kate Africk: Does it teach results are Stan Chia, Chief Executive Officer, and Larry Seay, Chief Financial Officer.

Kate Africk: By now everyone should have access to our first 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 visits is website at investors after the dot com.

Kate Africk: During the course of today's call, management may make forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks and uncertainties described in our earnings press release, our most recent annual report on Form 10-K, and our other filings with the FDA. On today's call, we will refer to Adjusted EBITDA and Adjusted EBITDA Marks, which are non-GAAP financial measures that provide useful information for our, To the extent reasonably available, a reconciliation of these non-GAAP financial measures to their corresponding GAAP... can be found in our earnings press release and supplemental earnings. Now, I would like to turn the call over to

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

Speaker Change: These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks and uncertainties described in our earnings press release, our most recent annual report on Form 10-K, and our other filings with the SEC.

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

Speaker Change: 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.

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

Stanley Chia: Good morning, everyone, and thank you for joining us today. We're off to a great start in 2024 with strong financial results and substantial progress made on key strategic initiatives. These results are a testament to our strong market position, superior and differentiated offering, as well as the consistent execution of our talented team to keep raising the bar. Today, I'll walk you through our financial highlights and then provide an update on our strategic initiatives.

Stanley Chia: Good morning, everyone and thank you for joining us today we're.

Stanley Chia: We're off to a great start in 2024 with strong financial results and substantial progress made on key strategic initiatives.

Stanley Chia: These results are a testament to our strong market position superior and differentiated offering as well as the consistent execution of our talented team to keep raising the bar.

Speaker Change: Today I'll walk you through our financial highlights and then provide an update on our strategic initiatives.

Speaker Change: Then Larry will speak to our financial results in more detail.

Stanley Chia: Then Larry will speak to our financial results in more detail. In the first quarter, we delivered over a billion dollars of marketplace GOV for the second quarter in a row, along with $191 million of revenues and $39 million of adjusted EBITDA.

Speaker Change: In the first quarter, we delivered over $1 billion of marketplace <unk> for the second quarter in a row, along with $191 million of revenues and $39 million of adjusted EBITDA.

Stanley Chia: The strength of our business has continued, and we are proud to have delivered 20% top line growth and strong adjusted EBITDA margins that exceeded 20%. We saw widespread demand strength continue in the quarter, with fans across categories wanting to experience it live with their favorite artists and teams. Following Quarter End, the industry reached an exciting and important milestone for women's sports. After the Indiana Fever selected Kaitlyn Clark with the first pick in the WNBA draft, a women's sports team was the top-selling performer on our platform for the first time ever.

Speaker Change: The strength of our business has continued and we are proud to have delivered 20% top line growth and strong adjusted EBITDA margins that exceeded 20%.

Speaker Change: We saw widespread demand strength continue in the quarter with fans across categories wanting to experience it live with their favorite artists and team.

Speaker Change: Flowing quarter and the industry reached an exciting and important milestone for women's sports.

Speaker Change: After the Indiana fever selected Caitlin Clarke with the first pick in the WNBA draft of women's sports team was the top selling performer on our platform for the first time ever we're.

Stanley Chia: We are excited to see the continued growth in women's sports and believe this demonstrates one example of the broad-based strength we are seeing across the live events landscape. As the live event industry continues to benefit from long-term tailwinds and as we continue to unlock leverage from our recent investments, we look forward to driving sustained double-digit growth on both the top and bottom lines for years to come. Through our loyalty program and brand initiatives, we reached a nearly 60% mix of repeat orders in 2020.

Speaker Change: We're excited to see the continued growth in women's sports and believe this demonstrates one example of the broad based strength, we are seeing across the live events landscape.

Speaker Change: As the live event industry continues to benefit from long term tailwind and as we continue to unlock leverage from our recent investments we look forward to driving sustained double digit growth on both the top and bottom line for years to come.

Speaker Change: Through our loyalty program and brand initiatives, we reached nearly 60% mix of repeat orders in 2023.

Stanley Chia: Repeat orders are highly accretive to our margin profile, and Vivid Seats Rewards is one of many mechanisms that we employ to retain users within our ecosystem. GameCenter is another key mechanism that attracts both existing and new customers to our platform. Whether it's winning free tickets, competing with friends, or scoring promo codes, the engagement and retention of customers has been excellent. In fact, customers that have earned promo codes have, on average, engaged with our platform 26 times before earning their first code.

Speaker Change: Repeat orders are highly accretive to our margin profile and vivid seats rewards is one of many mechanism that we employ to retain users within our ecosystem.

Speaker Change: Game Center is another key mechanism that attract both existing and new customers to our platform.

Speaker Change: Whether it's winning free tickets competing with friends or scoring promo codes the engagement and retention of customers has been excellent in fact customers that have earned promo codes have on average engaged with our platform 26 times before earning their first code.

Stanley Chia: The repeated brand exposure and high intent engagement creates many more opportunities for players to browse tickets and make repeat purchases, all the while providing us with more information to personalize our offerings to each user. Last quarter, we announced that we were accelerating our international expansion timeline, and I want to take a moment to highlight the excellent progress we are making. As we focus on internationalizing our platform so that it scales efficiently across geographies, we are pleased to report that we are on track to launch internationally by the end of the year.

Speaker Change: The repeated brand exposure and high intent engagement creates many more opportunities for players to browse ticket and make repeat purchases all the while providing us with more information to personalize our offerings to each user.

Speaker Change: Last quarter, we announced that we were accelerating our international expansion timeline and I want to take a moment to highlight the excellent progress we are making as.

Speaker Change: As we focus on international lives on our platform. So that it's scaled efficiently across geographies. We are pleased to report that we are on track to launch internationally by the end of the year.

Stanley Chia: While the platform cost of international expansion is now embedded in our financial profile, upside from international revenues and contribution is still to come. As we look abroad, we continue to see favorable market conditions and believe our differentiated value proposition will be well received by international consumers. We have also made substantial progress with our recent acquisition of Vegas.com. The integration of this business is going well, and we are already driving revenue synergies. We are now selectively cross-listing and optimizing ticket listings from Vivid Seats, such as for top concerts and sporting events, on our Vegas.com property.

Speaker Change: While the platform cost of international expansion is now embedded in our financial profile upside from international revenues and contribution is still to come.

Speaker Change: As we look abroad, we continue to see favorable market conditions and believe our differentiated value proposition will be well received by international consumers.

Speaker Change: We have also made substantial progress with our recent acquisition of Vegas Dot com.

Speaker Change: The integration of this business is going well and we are already driving revenue synergies. We are now selectively cross listing and optimizing ticket listings from vivek seats, such as for top concerts and sporting events on our Vegas Dotcom property. This is driving incremental revenues as high intent live event fans.

Stanley Chia: This is driving incremental revenues as high-intent live event fans traveling to Vegas browse an even more comprehensive offering of live event listings on Vegas.com. Our optimization efforts are ongoing, and we look forward to ramping cross-listed volumes. As we've said before, we see great potential and multiple avenues for synergies with Vegas.com. Las Vegas, which is already a key market for us, is also the home of the recently announced College Basketball Crown, a new postseason tournament beginning in 2025. We are thrilled to be the tournament's official ticketing provider and will be the exclusive home for tickets across all games in the tournament.

Speaker Change: <unk> to Vegas browsing, even more comprehensive offering of live event listings on Vegas Dot com.

Speaker Change: Our optimization efforts are ongoing and we look forward to ramping cross lifted volumes as we said before we see great potential and multiple avenues for synergies with Vegas Dot com.

Speaker Change: Las Vegas, which is already a key market for US is also the home of the recently announced college basketball Crown a new post season tournament beginning in 2025.

Speaker Change: We are thrilled to be the tournaments official ticketing provider and will be the exclusive home for tickets across all games in the tournament.

Stanley Chia: This is a first for Vivid Seats and an example of how we are leveraging the power of our industry-leading technology platform in new ways. With this unique and innovative partnership, we will provide fans with a new turnkey end-to-end ticketing experience while simultaneously elevating our brand awareness nationally through another high-profile event in the entertainment capital of the United States. In summary, we are pleased with the great progress we are making on our strategic initiatives on the buyer side of our marketplace. As always, our focus is on driving long-term stickiness with both buyers and sellers. Shifting to the seller side of our business, we are proud to share that Skybox remains the leading platform for professional sellers.

Speaker Change: This is a first for vivid seats and an example of how we are leveraging the power of our industry, leading technology platform in new ways.

Speaker Change: This unique and innovative partnership we will provide fans with a new turnkey end to end ticketing experience, while simultaneously elevating our brand awareness nationally through another high profile event and the entertainment capital of the United States.

Speaker Change: In summary, we are pleased with the great progress, we're making on our strategic initiatives on the buyer side of our marketplace as always our focus is on driving long term stickiness with both buyers and sellers.

Speaker Change: Shifting to the seller side of our business. We are proud to share that skybox remains the leading ERP for professional sellers building on our leading position we've strengthened our seller product lineup further and look forward to launching skybox drive our new automated pricing tool. Later this year, we continue to expect strong adoption from sellers for this tool.

Stanley Chia: Building on our leading position, we've strengthened our seller product lineup further and look forward to launching Skybox Drive, our new automated pricing tool later this year. We continue to expect strong adoption from sellers for this tool, which is plugged directly into Skybox and will leverage robust data from our marketplace. As mentioned on previous calls, we have gone to new lengths to drive innovation and optimization in our market, launching new products for both buyers and sellers, expanding internationally, and strengthening our tech. These efforts have resulted in Vivid Seats being recognized amongst the world's greatest innovators.

Speaker Change: <unk>, which is plugged directly into skybox and will leverage robust data from our marketplace.

Speaker Change: As mentioned on previous calls, we have gone to new lengths to drive innovation and optimization in our marketplace launching new products for both buyers and sellers expanding internationally and strengthening our tech stack. These efforts have resulted in vivid seats being recognized amongst the worlds greatest.

Speaker Change: Innovators.

Lawrence C. Fey: We are proud to share that we have recently been named to Fast Company's list of the world's most innovative companies of 2024. This prestigious list shines a spotlight on businesses that are shaping both industry and culture through innovation and setting new standards. With that, I will turn it over to Larry for a more detailed review. Thanks, Ben. In the first quarter, our business continued to perform well amidst ongoing end market strengths, which we were pleased to translate into solid financial results.

Speaker Change: Proud to share that we have recently been named to fast company's list of the world's most innovative companies of 2024.

Speaker Change: This prestigious list shines a spotlight on businesses that are shaping both industry and culture through innovation and setting new standards.

Speaker Change: With that I will turn it over to Larry for a more detailed review of the quarter.

Larry Seay: Thanks Vince.

Larry Seay: In the first quarter, our business continued to perform well amidst ongoing end market strength, which we were pleased to translate to solid financial results.

Lawrence C. Fey: In the first quarter, we generated more than $1 billion in marketplace GOV, which increased 20% year-over-year and was driven by increased total marketplace orders. Average order size was $358 in the first quarter of 2024 versus $376 in the first quarter of 2023, with the delta driven by the impact of acquisitions that bring a different AOS profile.

Larry Seay: In the first quarter, we generated more than $1 billion of marketplace, <unk>, which increased 20% year over year and was driven by increased total marketplace orders.

Larry Seay: Average order size was $358 in the first quarter of 2024 versus $376 in the first quarter of 2023 with the Delta driven by the impact of acquisitions that bring a different AOS profile.

Lawrence C. Fey: We delivered 191 million in revenues in the first quarter, an 18% year-over-year increase. Our take rate was 15.6%, consistent with expectations of 15.5% or higher for full year 2024. In the first quarter, we delivered 39 million of adjusted EBITDA and a 20% adjusted EBITDA margin while making incremental investments to develop our international platform capability. As a reminder, our results for the first quarter of 2023 included $8 million of non-recurring timing benefits, which will impact year-over-year comparisons.

Larry Seay: We delivered $191 million of revenues in the first quarter and 18% year over year increase.

Larry Seay: Our take rate was 15, 6% consistent with expectations of 15, 5% or higher for full year 2024.

Larry Seay: In the first quarter, we delivered $39 million of adjusted EBITDA, and a 20% adjusted EBITDA margin, while making incremental investments to develop our international platform capabilities.

Larry Seay: As a reminder, our results from the first quarter of 2023 included $8 million of nonrecurring timing benefits.

Larry Seay: It will impact year over year comparisons.

Lawrence C. Fey: Turning to cash flow, we generated $39 million of cash from operations in the first quarter, bringing our cash balance to $154 million and our net leverage to 0.7 times forward adjusted EBITDA. We continue to expect strong cash generation and adjusted EBITDA to cash conversion in 2024. After announcing a new $100 million share repurchase authorization on our fourth quarter earnings call, we repurchased 715,000 shares for an average price of $5.74 in March, leaving $96 million remaining under the authorization at quarter end.

Larry Seay: Turning to cash flow, we generated $39 million of cash from operations in the first quarter, bringing our cash balance to $154 million and our net leverage to 0.7 times forward adjusted EBITDA.

Larry Seay: We continue to expect strong cash generation and adjusted EBITDA to cash conversion in 2024 and beyond.

Larry Seay: After announcing a new $100 million share repurchase authorization on our fourth quarter earnings call. We repurchased 715000 shares for an average price of $5 74 in March leaving $96 million remaining under the authorization at quarter end.

Stanley Chia: At these price levels, we believe repurchasing our stock is an attractive use of our robust cash. With a strong start to the year, we continue to expect 2024 Marketplace GOV in the range of $4.2 to $4.5 billion, 2024 revenues in the range of $810 to $840 million, and 2024 Adjusted EBITDA in the range of 160 to 170. Our guidance calls for double-digit growth on both the top and bottom lines for 20

Larry Seay: At these price levels, we believe repurchasing our stock is an attractive use of our robust cash flow.

Larry Seay: With the strong start to the year, we continue to expect 2024 marketplace <unk> in the range of $4 two to $4 5 billion.

Larry Seay: 2020 for revenues in the range of $810 million to $840 million.

Larry Seay: In 2024, adjusted EBITDA in the range of $160 million to $170 million.

Larry Seay: Our guidance calls for double digit growth on both the top and bottom line for 2024 and.

Stanley Chia: And we expect to deliver double-digit growth on a sustained basis as we capture continued live event growth in North America and expand abroad, with a long history of operating leverage in our business. We believe our recent investments will augment both growth and profitability and support an adjusted EBITDA margin improvement of 50 basis points per year in the coming years. Thanks, Larry.

Larry Seay: And we expect to deliver double digit growth on a sustained basis as we capture continued wide event growth in North America and expand abroad.

Larry Seay: With a long history of operating leverage in our business. We believe our recent investments augment both growth and profitability in.

Larry Seay: In support adjusted EBITDA margin improvement of 50 basis points per year in the coming years.

Speaker Change: Back to you Sir.

Speaker Change: Thanks, Larry.

Stanley Chia: Before we conclude and turn to Q&A, I'd like to highlight the progress we have made on our ESG initiative. Last week, we published our 2024 Environmental, Social, and Governance Fact Sheet, providing new and updated performance metrics. Sustainability and corporate responsibility play a vital role in our business strategy, and we are pleased to share the progress we have made in 2020. On the environmental front, we measured and disclosed our scope 1 and 2 greenhouse gas emissions to better understand our impact, enhance transparency, and benchmark future progress.

Speaker Change: Before we conclude and turn to Q&A I'd like to highlight the progress we have made on our ESG initiatives.

Speaker Change: Last week, we published our 2020 for environmental social and governance, factsheet, providing new and updated performance metrics.

Larry Seay: Sustainability and corporate responsibility play a vital role in our business strategy and we are pleased to share the progress we have made in 2023.

Larry Seay: On the environmental front, we measured and disclosed our scope, one and two greenhouse gas emissions to better understand our impacts enhanced transparency and benchmark future progress and.

Operator: And on the governance front, we will have a majority independent board of directors with fully independent board committees by November 2024. We continue to demonstrate our commitment to enabling exceptional experiences for all stakeholders through the ongoing support of our employees, customers, and communities. To conclude, we are building upon an excellent 2023, where we delivered nearly 25% top and bottom line growth, and we are making significant progress thus far in 2024 on multiple strategic initiatives while delivering great financial results and increasing shareholder value.

Larry Seay: And on the governance front, we will have a majority independent board of directors with fully independent Board committees by November 2024, we continue.

Larry Seay: To demonstrate our commitment to enabling exceptional experiences for all stakeholders through the ongoing support of our employees customers and communities.

Larry Seay: To conclude we are building upon an excellent 2023, where we delivered nearly 25% top and bottom line growth and we are making significant progress thus far in 2024 on multiple strategic initiatives, while delivering great financial results and increasing shareholder value.

Operator: We look forward to making continued progress throughout the year toward our international launch and harnessing synergies from our Vegas.com activities. We are confident that our long-term strategy sets us up for double-digit growth again in 2024 and sustainably thereafter. With that, Operator, let's open it up for questions. Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced. Please limit yourself to two questions. To withdraw your question, please press star 1-1 again.

Larry Seay: We look forward to making continued progress throughout the year toward our international launch and harnessing synergies from our Vegas Dot Com acquisition, we are confident that our long term strategy sets us up for double digit growth again in 2024 and sustainably thereafter.

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

Operator: Please stand by while we compile the Q&A roster. Our first question comes from the line of Ryan Sigdahl with Craig Hallam Capital Group. Your line is now open. Hey, good morning, Stan, Larry, Kate. Want to start, start with guidance?

Speaker Change: Thank you at this time, we will conduct the question and answer session. As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced please limit to two questions to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.

Ryan Ronald Sigdahl: So you mentioned accelerating the international expansion timeline, I guess, is that different from what your expectation was a couple months ago, or just relative to the past kind of few-year strategy? And is 10 million still the right cost assumption for that guidance, and then kind of lastly, on guidance, I guess you beat nicely on Q1, reiterated the year, any other put stakes besides international in there? Yeah, thanks, Ryan. Yeah, I think International is progressing well. I don't think we should interpret that as a change in our philosophy. We are still not assuming.

Speaker Change: Our first question comes from the line of Ryan <unk> with Craig Hallum Capital Group. Your line is now open.

Ryan: Hey, good morning, Stan Larry Kate.

Ryan: I want to start with guidance. So you mentioned accelerating international expansion timeline I guess is that.

Ryan: From what your expectation was a couple of months gorgeous relative to the past few years strategy and is $10 million still the right cost assumption that guidance and then kind of lastly on guidance I guess, you beat nicely on Q1 reiterated the year any other puts and takes besides international in there.

Speaker Change: Yeah. Thanks Ryan.

Ryan: Yes.

Speaker Change: International is progressing well I don't think.

Speaker Change: You should interpret that as a change in our philosophy, we are still not assuming within our guidance.

Lawrence C. Fey: Within our guidance, any revenue or contribution margin beyond the G&A investment. If we get to a point where conviction and certainty on timing shifts to a level where it's prudent to include it, we'll let you know, but we're not at that point yet, but we're trending well to be able to go live before the end of the year. No changes to the investment amount.

Speaker Change: Revenue or contribution margin beyond G&A investment.

Speaker Change: If we get to a point, where kind of conviction uncertainty on timing.

Speaker Change: Shifting to a level, where it's prudent to include everywhere, but we're not at that point, yet, but we are trending well.

Speaker Change: Are you able to go live before the end of the year no changes on that.

Speaker Change: The investment amount I'd say, that's all trending consistent with expectations.

Lawrence C. Fey: I'd say that's all trending consistent with expectations. And then if you look at Q1 relative to full-year guidance, obviously, I think it's off to a nice start, but still early in the year with a lot to play out, so it felt prudent to maintain the target for that. Very good. Just my follow-up, AEG partnership, I guess, for College Basketball Crown, a new, unique kind of where you guys are going to distribute primary tickets be the exclusive, but can you talk through, I guess, the uniqueness of this deal, how you want it, why AEG and AXS need Vivid, and then if there are any other opportunities like this out there? Yeah, hey Ryan.

Speaker Change: And then as you look at Q1 relative to full year guidance, obviously I think.

Speaker Change: After a nice start.

Speaker Change: So early in the year with a lot to play out.

Speaker Change: To maintain the parts where they are.

Speaker Change: Very good.

Speaker Change: Just as my follow up AEG partnership, but I guess for college basketball Crown.

Speaker Change: New unique kind of where you guys are going to distribute primary tickets be the exclusive but can you talk through I guess.

Speaker Change: The uniqueness of this deal how you want it why does the G&A excess need vivid.

Speaker Change: And then if there are any other opportunities like this out there.

Stanley Chia: Look, I think we're really excited about being their partner in this new tournament. I think, as we've continued to demonstrate, we have looked to use our technology across, you know, multiple vehicles where, you know, I think the uniqueness of what we do, combined with the abilities that we have, allow us to serve as wonderful sources of distribution for partners and ultimately great value for fans and sellers. You know, we've got a great relationship with AEG and AXS through this, and I think when we looked at what we do well and what they were looking for in a partner, this looks like a fantastic opportunity, and we're really excited to see how it plays out next year. Thanks, guys. Good luck!

Speaker Change: Yes, Hey, Brian.

Speaker Change: Look I think we're really excited about being their partner on this on the front of it I think it is.

Speaker Change: We continue to demonstrate we have looked.

Brian: To use our technology across multiple vehicles, where you think the uniqueness of what we do combined with ability and that we have allow us to serve his wonderful sources of distribution for partners and ultimately create value for advantage of sellers, we've got a great relationship with AEG.

Brian: Access through this and I think when we looked at.

Brian: We do well and what they were looking for in a partner this looks like a fantastic opportunity and we're really excited to see how it plays out next year.

Speaker Change: Awesome. Thanks, guys. Good luck.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Curtis Nagle with B of A. Your line is now open. Great, thanks very much for taking the question. Yeah, maybe, Stan, one for you.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of Curtis Nagle with Bofa. Your line is now open.

Curtis Smyser Nagle: Great. Thanks, Thanks, very much for taking the question.

Speaker Change: Yes.

Curtis Smyser Nagle: So, you know, great to hear in terms of, you know, Vegas.com. Seems like that's ramping nicely, Senator, just starting to come through. Any more, I guess, metrics or, in terms of just a framework of kind of the potential lift we could see from cross-selling or integrating that asset in a fulsome way into the platform? Yeah, hey, Curtis.

Curtis Smyser Nagle: And then one for you.

Curtis Smyser Nagle: Good to hear in terms of.

Curtis Smyser Nagle: Satcom seems like that's ramping nicely synergies starting to come through.

Curtis Smyser Nagle: Any more metrics or in.

Curtis Smyser Nagle: In terms of just a framework of kind of what essentially we listen we could see some cross selling.

Curtis Smyser Nagle: Integrating that asset.

Curtis Smyser Nagle: In a fulsome way into the platform.

Stanley Chia: Thanks for the question. Look, we were excited when we acquired Vegas.com, and, you know, call it, you know, four or five months in now, we're even more excited about what we see. We continue to look at that as really a critical part of our marketplace business. And, you know, the thesis that, or the theses that we've, we had going into this, I think, continue to play out well, whether that is being a wonderful customer acquisition source for us that we are then able to blend into our other marketplace brands, or simply being able to monetize that traffic in an incremental manner, where we are now able to add not just the selection that Vegas.com had organically pre-acquisition, but we are also able to infuse it with events and selection that they didn't have access to prior from the Vivid Seats supply side.

Speaker Change: Yeah, Hey, Chris Thanks for that.

Speaker Change: Best of luck.

Speaker Change: We were excited when we acquired Vegas Dot Com and you know call it.

Chris: Four five months and we're even more excited about what we see we continue to look at that is really.

Curtis Smyser Nagle: A critical part of our marketplace business.

Curtis Smyser Nagle: The thesis that our thesis is that we had going into this I think continue to play out well whether that is being a wonderful customer acquisition source for us that we are then able to blend into our other marketplace.

Stanley Chia: So, I think, continue to be excited. Those are the themes that we had going into it, and we're starting to see a lot of that come to fruition. And remain really bullish on that for the remainder of the year. Great. I'm going to be able to follow up with one.

Curtis Smyser Nagle: Brand or simply being able to monetize that traffic in an incremental manner, where we are now able to add not just the selection that Vegas dot com.

Curtis Smyser Nagle: Organically pre acquisition, but we're also able to infuse it with.

Curtis Smyser Nagle: Events and selection that they didn't have access to prior.

Curtis Smyser Nagle: From the supply side. So I think continue to be excited that the thesis is that we had going into it and we're starting to see a lot of that come.

Curtis Smyser Nagle: To fruition and remain really bullish on that for the remainder of the year.

Curtis Smyser Nagle: Eric.

Speaker Change: I have a follow up with one.

Lawrence C. Fey: Competition in the U.S., obviously, your primary, and the only market right now, how does that look kind of relative to, let's just say, the end of the year and kind of how it shaped up through the quarter? I know you didn't give guidance for the year, or at least you said the quarter, but you put up some really nice GMV, so at a minimum, you're executing well. But just, yeah, anything to call out in terms of how to think about relative competition for your bigger competitors and just how you think that shapes up through the year.

Eric: Competition U S. Obviously, what your primary market right now.

Eric: How does that look kind of relative to let's just say the end of the year kind of how it shapes up through the quarter.

Speaker Change: I know you didn't give guidance to the year or at least you said the quarter, but you.

Speaker Change: Put up some really nice TMZ so admittedly.

Speaker Change: Admittedly, you're executing well, but just.

Speaker Change: Anything to call out in terms of how to think about relative competition for your bigger competitors and just how you think that shapes up through the year.

Speaker Change: Yes.

Lawrence C. Fey: Yeah, I'd say, you know, we use ebb and flow language in prior quarters and I think indicated that, and the back half of last year, you know, within those normal bands, perhaps a little bit closer to the higher side and the lower side. I think that continued into Q1 without meaningful change.

Speaker Change: Yes.

Speaker Change: I would say.

Speaker Change: In prior quarters.

Speaker Change: Ebb and flow of language.

Speaker Change: And I think indicated that.

Speaker Change: In the back half of last year within the normal bands, perhaps on a little bit closer to the higher side.

Speaker Change: Lower side I think that continued.

Speaker Change: Into Q1 without meaningful.

Speaker Change: Change.

Curtis Smyser Nagle: What I would call out is that if you did a year-over-year Q1-24 versus Q1-23 comparison, Q1-23 was on the other side, right, within those natural oscillations. Q1-23 was a fair bit less competitively intensive relative to the balance of the year, whereas this year it feels like it's on the higher end of the spectrum, but in both periods, I'd say it's within the balance that Okay, thanks very much.

Speaker Change: I'd call out.

Speaker Change: You did like a year over year Q1, 24 versus Q1 'twenty three comparison Q1, 'twenty three with on the other side right within those national operations Q1, 'twenty three with a fair bit we felt worse competitively intensive intensive relative to the balance of the year, whereas this year. It feels like it's on the higher end of the spectrum.

Speaker Change: Both periods I'd say within within the bounds that we've seen in the past.

Speaker Change: Alright, okay. Thanks very much.

Speaker Change: Thank you one moment for our next question.

Operator: Thank you. One moment for our next question. Our next question comes from Dan Kurnos with The Benchmark Company. Your line is now open.

Speaker Change: Our next question comes from Dan <unk> with the Benchmark Company. Your line is now open.

Daniel Louis Kurnos: Yeah, thanks. Just let me follow up on that, Larry, for a second. And Stan, given the strong re-engagement and stickiness metrics that you guys have, given, you know, kind of the noise in the competitive landscape, I know you guys always find unique ways to go out there and market, but, you know, what's the thought here on driving sort of new customers into the system a little bit more aggressively while, you know, the other guys are trying to figure out a way to market? Hey, Stan.

Dan: Yeah. Thanks, just let me follow up on that Larry for a second.

Dan: Stand given the strong reengagement.

Dan: Stickiness metrics that you guys have given kind of the noise in the competitive landscape I know you.

Dan: As always find unique ways to go out there and market.

Speaker Change: But whats.

Dan: What's kind of the thought here on driving sort of new customers into the system, a little bit more aggressively well. The other guys are trying to figure out a way to market.

Stanley Chia: Look, I think, as you said, we have always focused on the things that we control and looked to build on products and platforms that allow acquisition and stickiness to be strong, right? We spent some time talking about Vegas.com. I think that is a very unique source for you to acquire new customers. If you look at that Crowns Basketball Challenge tournament that we announced with AEG, we're really bullish on that, right? When you look at the fundamental basis for doing that deal, that will be a very, I think, strong source of customer acquisition and retention that will be unique to us and our ability to retain that within our ecosystem, right?

Dan: Hey, Dan.

Dan: Look I think as you said, we are always focused on the things that we control and look to build on products and platforms that allow acquisition and stickiness to be stronger and we spent some time talking about Vegas Dot com I think that is a very unique source for new customer acquisition. If you look at that.

Dan: Basketball Challenge tournament that we announced at AMG, we're really bullish on that right. When you look at the fundamental basis for doing that deal that will be a very.

Dan: I think strong source of customer acquisition and retention that will be unique to us.

Dan: And our ability to retain that within our ecosystem right. So I think while we always talk about.

Stanley Chia: So, I think, while we always talk about, undoubtedly, this is a competitive environment, the reality is, I think, we are very focused on the things that we control and have great confidence in the investments that we're making to drive both better acquisition and, as always, I think, much stronger retention, which we see through our engagement vehicles, our repeat rates, our loyalty programs. It's clearly showing the numbers, Stan.

Dan: Out of the this is a competitive environment.

Dan: The reality is we are very focused on the things that we control and have great confidence in the investments that we're making to drive both better.

Dan: Better acquisition and as always I think much stronger retention, which we feature our engagement vehicles, our repeat rates our loyalty program.

Daniel Louis Kurnos: I guess the follow-up question on the AEG stuff, I mean, what is your appetite for further primary rather than secondary? Or is this, as you said, more just a unique customer acquisition play? I think the appetite is always there for great deals that are accretive to us and wins for our partners, right? So I don't know that I'd look at it as primary or secondary.

Dan: I mean, it's clearly showing the numbers and I guess the follow up I guess on the AEG stuff I mean, what is your appetite for further primary rather than secondary or is this as you said more just a unique customer acquisition play.

Speaker Change: Yeah, I think the appetite is always there for.

Speaker Change: Great deals that are accretive to us in wins for our partners right. So I don't know that Ive looked at it as primary or secondary I think I'd look at this as we bring great marketplace technology to the ecosystem with an ability to drive value to those who need distribution.

Stanley Chia: I think I'd look at this as we bring great marketplace technology to the ecosystem with an ability to drive value to those who need distribution, as well as being able to allow sellers and fans to participate greatly. And I think we found a great partner in AEG who was willing to construct that deal in a way that made sense for both us and them. And wherever those opportunities exist, we'll be really aggressive in pursuing them. We make intelligent deals in this marketplace. That's a novelty.

Speaker Change: As well as being able to allow sellers and fans to participate greatly and I think we found a great partner in AEG, who is willing to construct that deal in a way that made sense for both us and them and wherever those opportunities exist will be really aggressive in pursuing them.

Operator: All right, Stan, appreciate it. Nice talk to you, guys. Thank you. One moment for our next question. Our next question comes from the line of Maria Ripps with Canaccord.

Speaker Change: Intelligent deals in this marketplace, that's a novelty alright, Dan appreciate it nice start to the year guys.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Yeah.

Speaker Change: Our next question comes from the line of Maria reps with Canaccord. Your line is now open.

Maria Ripps: Your line is now open. Great, thanks so much for taking my questions. First, I just wanted to follow up on international. Could you maybe give us a little bit more color on the building blocks of your international infrastructure investments? What are maybe some of the more intense aspects of the investment cycle?

Maria Ripps: Great. Thanks, so much for taking my questions.

Maria Ripps: Firstly I just wanted to follow up on international could you maybe give us a little bit more color on the building blocks of your international infrastructure investments.

Maria Ripps: Maybe some of the sort of more intense aspects of the investment cycle and then any color you can share on the potential set of markets that you have in mind.

Stanley Chia: And then any color you can share on the potential sort of markets that you have in mind. Yeah, I think Maria, yeah, I think it's no small feat to certainly internationalize the platform, and I'm really excited and proud of the work that the team has already done so far this year. You know, as you mentioned, there are key building blocks that you have to build and invest in to be able to scalably launch across markets.

Speaker Change: Yes, Hey, Brett.

Brett: Yeah, I think it's no small feat that certainly internationalize the platform and Im really excited and proud of the work that the team has already done so far this year.

Brett: Mentioned there are key building blocks that you have to build and invest in to be able to scale up the launch across markets and so I think about that just as simple as it sounds language capabilities that extend into the platform on the buy side on the sell side on the support and service side.

Stanley Chia: And so I think about that as just as simple as it sounds, you know, language capabilities that extend into the platform on the buy side, on the sell side, on the support and service side, making sure we understand, you know, I think currency, again, on the buy side, on the sell side, into making sure that we can both receive and remit payments, understanding local regulatory environments and ensuring compliance across the platform, right? I think, you know, if you look at those as the very large building blocks to make sure that the platform scales, that certainly takes up a lot of the investment work.

Brett: Making sure we understand you know I think currency again on the buy side the sell side.

Brett: And making sure that we can both receive and remit payments understanding local regulatory environment and ensuring compliance across the platform right. I think if you look at those very large building blocks to make sure that the platform scale that currently takes up a lot of the investment work and then being able to then customize the scale.

Stanley Chia: And then being able to then, you know, customize that in a scalable manner to the markets that we decide to go live in is probably the later piece. And again, I think everything we're seeing so far, we remain really excited about the ability and on track to do that before the end of the year. And, you know, as you talk about the market, you know, we've looked across, I think, the landscape, and certainly, as others in the space have discussed, there are just, I think, great opportunities across multiple markets.

Brett: Level manner to the markets that we decided to go 11, it's probably the later piece and again I think everything we're seeing so far we remain really excited about the ability and on track to do that before.

Brett: At the end of the year and as you talk about the market.

Brett: We've looked across I think the landscape certainly as at other than the space.

Brett: Has discussed there is just I think great opportunities across multiple markets and so I think as we look at the international landscape will certainly be.

Stanley Chia: And so I think as we look at the international landscape, we'll certainly be excited and happy to talk more about it as we start to go live. That's very helpful. And then, sort of, with a generally stronger than expected Q1, how should we think about the seasonality of GOB and revenue? here in the context of your four-year guide. Yeah, I think there are significant shifts in how we think about the year, but I would, you know, highlight some.

Speaker Change: Excited and happy to talk more about it as we start to go live.

Speaker Change: Got it got it that's very helpful. And then secondly, sort of with generally stronger than expected Q1, how should we think about the seasonality of <unk> and revenue.

Speaker Change: This year in context of your full year guidance.

Speaker Change: Yes, I think.

Speaker Change: No significant shifts in how we think about the year, but I would highlight some.

Stanley Chia: Some of those exogenous reasons that we tend to shy away from giving precise quarterly guidance. David Pierre in Q1, for example, a pretty good Super Bowl dynamic with Las Vegas as the destination, pretty robust ticket prices corresponding to that. A pretty good college football playoff matchup. A lot of hype and interest around the NCAA tournament, so some of those, particularly in sports, call it exogenous, matchup-driven.

Speaker Change: Some of those exogenous reasons that we tend to shy away from giving precise quarterly guidance.

Speaker Change: Data Peter in Q1 for example, pretty good Super Bowl dynamic with Las Vegas, or destination pretty robust ticket prices corresponding to that a pretty good college football playoff matchup.

Speaker Change: Hyphen interest around <unk> tournament.

Speaker Change: Some of those particularly export.

Speaker Change: Uh huh.

Speaker Change: Call It a garage.

Speaker Change: Match up driven.

Lawrence C. Fey: Elements fell our way, and so in the spectrum of Q1 relative to the full year, we probably came in a little bit more robust than if those had gone the other way. Got it. Thank you so much.

Speaker Change: Elements fell our way.

Speaker Change: So in the spectrum of Q1 relative to the full year, we probably came in a little bit more robust than that folks have gone the other way.

Speaker Change: Got it thank you so much.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Matt Farrell with Piper Sandler. Your line is now open.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of Matt Farrell with Piper Sandler Your line is now open.

Matthew F. Farrell: Thanks for letting me ask the question and congratulations on the strong start of the year. Really exciting to hear about the momentum in women's sports here at the end of Q1. I guess maybe as we think about the rest of the year and moving forward, how should we be thinking about the tailwind of women's sports more broadly and maybe even hitting on maybe some of the second tier sports as well and just the growth you're seeing in those on the platform?

Matthew F. Farrell: Thanks for letting me ask the question and congrats on the strong start of the year.

Matthew F. Farrell: Really exciting to hear about the momentum in women's sports here at the end of Q1, I guess, maybe as we think about the rest of the year and moving forward how should we be thinking about the tailwind of women's sports more broadly and maybe even hitting on maybe some of the second.

Matthew F. Farrell: Tier sports as well and just growth youre seeing in those on the platform.

Matthew F. Farrell: Yeah, I think that Sports represents a little under 40% of our GOV collectively. Within that, you know, there are multiple verticals across each of the major professional leagues, college basketball, college football, soccer, and then now, you know, as we think about others, the other sports categories.

Speaker Change: Yes, Thanks, Matt.

Speaker Change: I guess I would start with.

Speaker Change: Sports represents a little under 40% of our GOP collectively.

Speaker Change: Within that there's multiple verticals across each of our major professional leagues.

Speaker Change: College Basketball College football.

Speaker Change: Soccer and then now as we think about others the other sport category.

Lawrence C. Fey: So I dimensionalize that, you know, if you sort of think about six or seven major pillars within a portion of the business that's roughly 40 percent, you can think about any one pillar in the high single digits of our overall GOV. What we've certainly seen is... A lot of tailwinds behind soccer, tailwinds behind some fighting, UFC in particular, but also some nice, dynamic cross-wrestling and And so you can think of those tailwinds as, you know, probably driving.

Speaker Change: I would dimensionalize that if you sort of think about six or seven major pillars within a portion of the business, it's roughly 40%.

Speaker Change: You can think about any one pillar and.

Speaker Change: Mid to high single digits of our overall <unk>.

Speaker Change: What we've certainly seen us.

Speaker Change: A lot of tailwind behind soccer tailwind behind.

Speaker Change: Some fighting.

Speaker Change: See you in particular, but also from that dynamic Cross wrestling and women's sports.

Speaker Change: So you can think of a tailwind is probably driving.

Lawrence C. Fey: Well above category growth rates, but you know, the overall adjustments you make, just given the respective shares each of these leagues represents in our sports book, which is a minority of our overall GOV position. So a nice tailwind, I probably wouldn't design a financial model around. And then you've hit on a lot of the revenue synergies from the recent acquisitions, but anything you could add on the cost side and synergies there, is it helping to offset some of the investments internationally at all?

Speaker Change: Well above category growth rates, but.

Speaker Change: Temper.

Speaker Change: Overall adjustments you may just given the.

Speaker Change: Their respective shares each of these leagues a rep.

Speaker Change: Presents of our sports book.

Speaker Change: A minority of our overall GOP progression, so a nice tailwind and I, probably wouldn't design a financial model around it.

Speaker Change: And then you have hit on a lot of the revenue synergies from the recent acquisitions, but anything you could add on the cost side and synergies there is that helping to offset some of the investments internationally at all thanks.

Lawrence C. Fey: Thanks. Yeah, I'd say in both instances, we acquired businesses that were, I think, run on the lean side of the spectrum. There are definitely pockets here and there where we're able to consolidate some functions and capabilities, drive some efficiencies, drive some shared learnings, and bring vendors together to get some bundling benefits just from our scale, but I would characterize those as clearly secondary to the strategic and revenue opportunities that we've articulated. Thank you.

Speaker Change: Yes, I would say in both instances.

Speaker Change: We acquired businesses that were Ah I.

Speaker Change: I think Ryan on the lean side of the spectrum.

Speaker Change: There are definitely pockets here and there.

Speaker Change: We're able to consolidate some functions and capabilities drive some efficiencies drive some shared learnings bring vendors together, Greg you get some bundling benefits just from our scale.

Speaker Change: But I would characterize those as clearly secondary strategic and revenue opportunities that we've articulated.

Speaker Change: Thank you.

Speaker Change: Our next question.

Operator: One moment for our next question. Our next question comes from the line of Cameron Manson, from Peron, with Morgan Stanley. Your line is now open. Thanks. Good morning, guys.

Speaker Change: Our next question comes from the line of Cameron mentioned Heron with Morgan Stanley. Your line is now open.

Cameron Manson: First off, just as we think about the mix of GOV across categories for Vivid. You know, obviously there's a lot of moving parts this year with the business integration, but I'd love to know, you know, looking forward to 25 and beyond, just how do you guys think about where that mix evolves over time and which verticals, in your mind, are the stronger or more attractive growth vectors long-term for Vivid? Whether that's from a GOV growth perspective or better or worse take rate opportunity perspective, I would just love to hear your thoughts on kind of how you think about that in the medium and long-term.

Cameron Mansson: Thanks, Good morning, guys.

Cameron Mansson: First off just as you think about the mix of <unk>.

Cameron Mansson: Across categories for David Obviously, Theres, a lot of moving parts this year with.

Cameron Mansson: The business integration, but I'd love to know looking forward to 'twenty five and beyond just how do you guys think about where that mix evolves over time, and which verticals in your mind are the stronger more attractive growth vectors long term for vivid whether that's from a growth perspective or better worse.

Cameron Mansson: Great opportunity perspective, we're just love to hear your thoughts on kind of how you think about that medium long term.

Cameron Manson: And then, Larry, following up on your comments around the kind of expectation for margin improvement over time, just curious also how you guys think about that strategically and, you know, why 50 basis points is maybe the right cadence or if it's not necessarily the 50 basis points necessarily because I'm sure that, you know, you're not running it long-term for any specific target necessarily, and the competitive environment has a lot to do with this, but just Thanks, guys. Yeah, thanks, Cameron. Sorry about the segments.

Cameron Mansson: And then Larry following up on your comments around that kind.

Cameron Mansson: Kind of expectation for margin improvement over time, just curious also.

Cameron Mansson: How you guys think about that strategically and why 50 basis points is maybe the right cadence.

Cameron Mansson: It's not the 50 basis points necessarily because I'm sure that.

Cameron Mansson: Youre not running it long term for any specific target necessarily in the <unk>.

Cameron Mansson: Competitive environment has a lot to do with this but just how you think about the trade offs in terms of the margin trajectory over time.

Speaker Change: Love to hear thanks, guys.

Speaker Change: Yes, Thanks Kamran.

Speaker Change: Starting with the segments.

Lawrence C. Fey: Generally, we have come to the belief that the secular trends are probably the most robust and (inaudible). In most years, it's the same teams playing in the same stadiums on the same schedule with the same playoff opportunities, and growth will typically come from price and then the episodic expansion of a playoff series, or the insertion of an in-season tournament. In the NFL, they're talking about Week 18 or an 18th game.

Speaker Change: Generally we are.

Speaker Change: Come to the belief that the secular trends are probably the most robust and <unk>.

Speaker Change: Concert in particular.

Speaker Change: And driving that <unk> got really robust demand dynamics, you don't have the same capacity constraints that you Havent sports. So if you were to pick on the major professional League baseball football hockey basketball.

Speaker Change: In most years, it's the same teams playing in the same stadiums on the same schedule at the St playoff opportunity.

Speaker Change: Growth will typically come from price and then the episodic.

Speaker Change: Expansion of our playoffs series insertion of in season tournament, and NFL Theyre talking about a week 18 or 18th game.

Lawrence C. Fey: But those types of abilities to drive the number of events are a bit more limited within the existing major sports. Many venues, especially the largest venues, are well short of 100% capacity utilization. In our Chicago example, right? I drive by Soldier Field, a 65,000-person stadium, and I think it's full.

Speaker Change: But those types of ability to drive.

Speaker Change: The number of events are a bit more limited within the existing major sports, whereas in concerts.

Speaker Change: Many venues, especially the largest venues are well short of 100% capacity utilization in our Chicago example, where they.

Speaker Change: Drive by soldier field 65000 person stadium and I think it's full.

Speaker Change: 20 days a year right so the opportunity for artists to trade up.

Speaker Change: And you can extend that right across the United Center, and a number of the other large stadiums.

Speaker Change: It's much more robots in concerts, which I think underpins.

Speaker Change: A nice secular growth tailwind, we've touched on some of the.

Speaker Change: Call It secondary export that have really bolstered.

Speaker Change: Existing pillars, I think helps with sports growth rate, but even with that I would point to.

Speaker Change: The fundamental trends underpinning concerts.

Speaker Change: Probably a bit more robust.

Speaker Change: The last piece is there is not dramatic differences in take rate theres not dramatic differences in repeat rates across the categories, but they're not identical alright, you can imagine someone who goes to baseball games and there's just so much. So many games in a year the proclivity to repeat is probably slightly higher than.

Lawrence C. Fey: It's probably slightly higher than when you see Taylor Swift and she hasn't come back into your city for five. And so you see that span the category, so slightly different take rates, slightly different repeat rates, perhaps an opportunity over time as we continue driving engagement, driving platform comfort, that we can shift concert behavior to look a little bit more like sports, but that's a very long-term opportunity. Then, shifting to the margins, you know...

Speaker Change: When you see Taylor Swift since you have to come back into your city for five years.

Speaker Change: You can see that span the category for a slightly different take rate slightly different repeat rates, perhaps an opportunity over time as we continue driving engagement driving platform comfort that we can ship concert behavior to look a little bit more like sports, but that's a very long term.

Speaker Change: Opportunity.

Speaker Change: And then shifting to the margin.

Lawrence C. Fey: Always a little bit of the balance. We're speaking in aggregate at the P&L about what we're hoping a sum of the series of micro decisions will roll up to year after year. But ultimately, underpinning that when you decompose those margin commentaries is a series of risk-reward and ROI evaluations across innumerable opportunities. And so it's properly calibrating where you want to draw the line on what you're saying yes to and what you're saying no to.

Speaker Change: Always a little bit of a balance we're speaking in aggregate.

Speaker Change: And what we're hoping some of its series of micro decisions will roll up to year after year, but ultimately underpinning that any decompose those margin commentary.

Speaker Change: As a series of risk reward and ROI evaluations across innumerable.

Speaker Change: Opportunities and so it's properly calibrating, where you want to draw the line on what you are saying, yes to what you are saying no to.

Lawrence C. Fey: With the background music being that we've knowingly made some pretty significant investments into some loyalty and brand initiatives and have committed to driving leverage against those. And I think that impacts kind of the marginal decision to make sure that we're adhering to that overall ROI profile and ensuring that we're delivering proper returns on the investment.

Speaker Change: With the background music being that we've knowing we made some pretty significant investments into <unk> from.

Speaker Change: From a loyalty and brand initiatives.

Speaker Change: We have committed to driving leverage against those and I think that impact.

Speaker Change: Kind of the marginal decision to make sure that we're adhering to that overall ROI profile and ensuring that we're delivering proper returns on the investments we made.

Operator: Helpful caller. Thanks, Larry. Thank you. One moment for our next question. Our next question comes from the line of Thomas Forte with Maxim Group. Your line is now open.

Speaker Change: Got it helpful color. Thanks, Larry.

Speaker Change: Thank you one moment for our next question.

Thomas Ferris Forte: Great. Thanks for taking my question and congrats on the quarter. I joined late, so I apologize if someone had something like this earlier in the queue.

Speaker Change: Our next question comes from the line of Thomas Forte with Maxim Group. Your line is now open.

Thomas Ferris Forte: Great. Thanks for taking my question and congrats on the quarter I joined late so I apologize if someone has something like this earlier in the queue.

Lawrence C. Fey: In the earnings release, you indicated you were confident in your ability to grow top and bottom lines by double digits for the long term. First, are those organic growth rates or reflective of assumptions on future strategic M&A? And then second, while we're on that topic, can you talk about your current capital allocation priorities between investing in the existing business, strategic M&A, and buyback? Yeah, thanks, Tom. You know, starting with the ladder of capital allocation.

Thomas Ferris Forte: In the earnings release, you indicated you are confident in your ability to grow top and bottom line by double digits for the long term first are those organic growth rates or reflective of assumptions on future strategic M&A and then second while we're on that topic can you talk about your current capital allocation priorities between investing in the existing business.

Thomas Ferris Forte: Strategic M&A and buybacks.

Speaker Change: Yeah. Thanks, Tom.

Speaker Change: Starting with the latter.

Speaker Change: Capital allocation.

Speaker Change: <unk>.

Lawrence C. Fey: I think you've hit on the three things that we'd like to invest in. Certainly, as we think about investment into the business itself, organic investments, if you will, you know, we generate a lot of profitability, and we generate a lot of cash flow. I don't think we've, in any way, deprived the business of investments. And so, somewhat tying into the prior comments I just made, we see a lot of opportunities. We say yes to a number; we say no to more.

Tom: Thank you Bart could you pay down the three things that we'd like to invest it certainly as we think about investment into the business itself organic investments if you will.

Speaker Change: Generation a lot of profitability, we generate a lot of cash flow.

Bart: Don't think we are in any way deprive the business of investments and so somewhat tying into the prior comments I just made we see a lot of opportunities, we say up to a number we say no to more but we're always evaluating those through a risk reward and ROI framework.

Lawrence C. Fey: But we're always evaluating those through, you know, a risk-reward and an ROI framework and have not ever come to a point where we said no to things that we felt like were the right long-term answer in favor of short-term performance. And so then, as we do generate that profitability and cash flow, it begs the question, right? With that strong balance sheet, as we continue to generate cash, what can we do with it?

Bart: And have not ever come to a point, where we said no to things that we felt like the right long term answer in favor of short term performance and so that is we do generate that profitability and cash flow.

Speaker Change: Thanks for the question right, we've got a strong balance sheet as we continue to generate cash what can we do it.

Lawrence C. Fey: And the two highest investment pieces that we see have been, if you can find strategic and accretive acquisitions, we should pursue those. If we can buy ourselves at attractive prices, we should pursue that. Now, both of those are somewhat outside of our control, right? The opportunities that come down the pipeline are beyond what we can influence, so we evaluate what is available at any point in time. And then, similarly, we don't control where our shares trade.

Speaker Change: And the two highest and best uses that we see.

Speaker Change: <unk> have been if he can find strategic and accretive.

Speaker Change: The acquisition, we should pursue.

Speaker Change: If we can buy ourselves at attractive prices, we should pursue that now.

Speaker Change: Now both of those are somewhat outside of our control right the opportunities that come down the pipeline.

Speaker Change: Yeah.

Speaker Change: And what we can influence how we evaluate what is available at any point in time.

Speaker Change: And then similarly, we don't control, there where our shares trade ins.

Lawrence C. Fey: I think we've indicated with our share purchase initiative that we think currently it's a particularly attractive time for us to be reinvesting in ourselves, and that will be, and has been, and will remain the bar for acquisitions, right? They need to stand alone on an absolute, but also on a relative return basis. So we'll continue to do that. On the double-digit growth profile, I think because of the episodic nature of M&A, we can't and won't build that into our base case growth plan. If they do come along, they can either fill in or add to those targets, but we wouldn't build that into a base case.

Speaker Change: Indicated.

Speaker Change: Our share repurchase initiatives that we think currently.

Speaker Change: <unk>.

Speaker Change: Attractive time for us to be reinvesting in ourselves.

Speaker Change: And that will be it has been and will remain the bar for acquisitions wrapping into standalone on a absolute but also on a relative return basis.

Speaker Change: So we'll continue.

Speaker Change: To do that.

Speaker Change: Got it.

Speaker Change: Double digit growth profile.

Speaker Change: Because of that episodic nature of M&A, we can't and won't build that into our base case growth plans.

Speaker Change: If they do come along they can either fill in our access to those targets.

Speaker Change: But we Wouldnt go back into our base case.

Speaker Change: Okay.

Operator: Thank you, Larry. I appreciate that. Thank you. One moment for our next question. Our next question comes from the line of Andrew Marok with Raymond James. Your line is now open.

Speaker Change: Thank you Larry I appreciate that.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Yes.

Speaker Change: Our next question comes from the line of Andrew morale with Raymond James Your line is now open.

Andrew Jordan Marok: Hi, thanks for taking my questions. First one, maybe on Vegas.com, you mentioned some of the top line synergies that you've been able to begin your realization of so far. But maybe you've seen notable synergies or the opportunity for today for buyers of events on Vegas.com where you're able to market to them back in their home market? Like if I'm from Detroit, and I'm visiting for a conference and buy a show ticket.

Andrew Jordan Marok: Hi, Thanks for taking my questions.

Andrew Jordan Marok: First one maybe on biggest dotcom you've mentioned some of the topline synergies that you've been able to begin your realization of so far but maybe have you seen notable synergies or the opportunity for to date for buyers of events on Vegas, Dot com, where youre able to market to them back in their home market like if I'm from Detroit.

Andrew Jordan Marok: Lloyd Im visiting for a comprehensive by a show of ticket have you seen uplift from being able to sell me a tigers ticket when I get back to Detroit.

Stanley Chia: Have you seen an uplift from being able to sell me a Tigers ticket when I get back to the office? Yeah, hey, Andrew. Your exact example is a really strong thesis under which we acquire the business, you know, and I think we're excited by the early signs we've seen there. We are certainly underway with that campaign. We believe it's a really, you know, strong opportunity for us around those who come to Vegas and go home and the ability to market them into the Vivid Seats brand that has all of that selection rewards tied to, you know, the home market that they're in. I think those campaigns have already been launched.

Speaker Change: Yeah, Hey, Andrew.

Andrew Jordan Marok: Right.

Andrew Jordan Marok: Zach example, isn't really strong thesis under which we acquired the business.

Lloyd: We're excited by the early signs we've seen there we are certainly underway and that campaign. We believe it's a really strong opportunity for us around those who come to Vegas and go home and the ability to.

Andrew Jordan Marok: Market them into the visit.

Andrew Jordan Marok: Brand that has all of that selection rewards tied to them.

Andrew Jordan Marok: The whole market that there is I think those campaigns at launch we're really encouraged by what we see and I think given the.

Stanley Chia: We're really encouraged by what we see. You know, given the kind of lower frequency of this industry in general, I think we still need some time to play out, but as we always talk about our repeat rates, which continue to trend, you know, as high as they've ever been, and I think we are really excited about the ability to, in fact, accelerate that through, you know, the Vegas.com synergies that we see on that side. Great, thank you. Maybe one more, if I could.

Andrew Jordan Marok: Kind of a lower frequency of this industry in general and I think we still need some time to play out but as we always talk about our repeat rates on a cohort basis continue to trend.

Andrew Jordan Marok: As high as they've ever been and I think we are really excited about the ability of in fact accelerate that through the Vegas dot com synergies that we see on that debt.

Andrew Jordan Marok: Kind of on the breadth of your customer base, obviously, really strong indicators of demand, both for the industry and for you guys, in terms of order volumes and things like that, with AOS kind of continuing to creep up. You know, it's not new that we've heard concerns around discretionary budgets and things like that. I guess maybe speaking to the breadth of your customer base, is it still like the same large pool of customers who are maybe more willing to spend on more expensive events and experiences? Or is it maybe a smaller group of more dedicated buyers who you're really getting these benefits from? Thanks.

Speaker Change: Great. Thank you and maybe one more if I could kind of on the on the breadth of your customer base, obviously really strong indicators of demand both on the industry and for you guys in terms of order volumes and things like that with AOS as kind of continuing to creep up.

Speaker Change: It's not new that we've heard concerns around discretionary budgets and things like that I guess, maybe speaking to the breadth of your customer base is it still like the same large pool of customers, who are maybe more willing to spend on more expensive events and experiences or is it maybe a smaller group of more.

Speaker Change: <unk> buyers, who are really getting these benefits from thanks.

Speaker Change: Okay.

Lawrence C. Fey: Yeah, Andrew, I would say I don't, I don't think I've seen anything that would point to change when we looked in the past at the demographic profile of our customers. I think it's pretty reflective of what you would anticipate, right? Balance across almost any way you slice it.

Speaker Change: Yes, Andrew I would say I don't think I've seen anything that would point to change when we looked in the past the demographic profile of our customers I think.

Speaker Change: Pretty reflective of what you had anticipated rate balanced across almost any way you slice it geographic.

Stanley Chia: Geographic, gender, income, age, obviously reflective of the fact that these events cost money, right? So there's going to be some skew towards affordability. But beyond that, it's been very broad-based across interests that are, almost by definition, quite broad. And nothing we've seen suggests at the broad level any weakening in consumer interest in attending these types of events. And going more precise than that, I haven't seen any meaningful shifts across those groups. Yeah, I will bring it back, Andrew, to almost what we were just talking about. I mean, there are two things, right?

Speaker Change: Gender income age.

Obviously reflect that.

Stanley Chia: These are not costs money.

Stanley Chia: Skew towards affordability, but beyond that it's it's been very broad based across interests that are almost by definition quite broad and nothing we've seen suggesting at a broad level any weakening in consumer interest in attending these types of events.

Cameron Manson: Going more precise than that haven't seen any meaningful shifts across those groups, yes, let's bring it back to Andrew just the almost what we what we were just talking about I mean, there's two things right one of the category and industry secular trends that we've always talked about I think we remain excited and all signs point to.

Stanley Chia: One, the category and industry secular trends that we've always talked about. I think we remain excited, and all signs point to continued interest. And frankly, as the demographics move into some of the newer generations who are coming into purchasing power, I think it's clear that this is a category that they will remain prioritized in their spend.

Stanley Chia: Interest and frankly.

Stanley Chia: Mcgrath <unk> move into some of the newer generations, who are coming into purchasing power I think it's clear that this is a category that they will remain prioritize their spend and then all of it is pizza.

Stanley Chia: And then on the Vivid Seat side, I think that's where our investments are there to really capture and retain customers, regardless of which demo, regardless of which bracket you're in. I think interest in the category remains strong and is shifting to perhaps even stronger as we move into those demos. And our platform continues to be built with the premise of engaging and retaining those users with Vivid Seats. Appreciate the details, thank you.

Stan Chia: Where our investments are there to really capture and retain customers, regardless of which demo regardless of which frankly are ahead I think interest in the category remains strong and is shifting perhaps stronger as we move into those demos at our platform continues to be built with the premise of engaging and retaining.

Stanley Chia: Those users.

Stanley Chia: Yes.

Stanley Chia: I appreciate the detail. Thank you.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Ralph Schackart with William Blair. Your line is now open. Good morning.

Speaker Change: Thank you one moment for our next question.

Ralph Edward Schackart: Our next question comes from the line of Ralph Shakur with William William Blair. Your line is now open.

Ralph Edward Schackart: Thanks for taking the question. Just on the macro environment, just curious, maybe what you're observing, you know, as we sit here today, as you progress through the year, and just a reminder, what's factored into the guidance for the macro. Maybe just to follow up, switching gears to Skybox Drive. You've been in beta here for a little while.

Ralph Edward Schackart: Good morning, Thanks for taking the question just on the macro environment, just curious maybe what youre observing you know as we sit here today as you progressed through the year and just a reminder, what's factored into the guidance for the macro but maybe just a follow up switching gears to skybox drive you'd been in beta here for a little while just maybe if you brought in.

Stanley Chia: Just maybe if you can broaden, update what you're hearing from the beta, and maybe thoughts longer term on the ability to monetize it on a longer term basis. Thank you. Hey Ralph, thanks for the question. Skybox Drive is also trending, you know, I think really well on track to launch later this year. We're always judicious with this, right?

Ralph Edward Schackart: Today, what you're hearing from from the beta and maybe thoughts longer term on the ability to monetize it on a longer term basis. Thank you.

Speaker Change: Yeah, Hey, Ralph type question.

Speaker Change: They've got about drive also trending.

Speaker Change: I think really well on track to launch later this year.

Stanley Chia: I think this is a platform that, you know, sellers run the entirety of their business on. But we're making sure, again, that as we start bringing it to market, that it is able to really handle, you know, a critical component of how they run their business. I happily share, you know, when we look at the wait list and the people that we have, you know, eager to come onto the platform, it's a triple-digit wait list and growing, right?

Speaker Change: We're always judicious with this right I think this is a platform that sellers run the entirety of their business. So I think we're making sure again that as we start bringing it to market that it is able to really handle.

Stanley Chia: A critical component of how they run their business.

Stanley Chia: Happily share you know when we look at the waitlist and people that we have eager to come onto the platform. It's a triple digit waitlist and growing right, but I think as our beta continues to grow inside of the people on the data. The wait list continues to grow at an even accelerated clip and as I've always said you know I think what our guide.

Stanley Chia: So I think as our beta continues to grow in size, the number of people on the beta, the wait list continues to grow at an even accelerated clip. And as we've always said, you know, I think, you know, our guidance, you know, has zero incremental contribution from Skybox Drive. But if you look at the industry in terms of pricers that are out there, I don't think you'll find, you know, a pricer that is free of charge.

Stanley Chia: <unk>.

Stanley Chia: It has zero incremental contribution from Skybox drive, but if you look at the industry in terms of.

Stanley Chia: <unk> that are out there I don't think youll find a price that is free.

Lawrence C. Fey: So I think should we decide at some point to monetize the product, I think it would wholly be within, you know, industry norms to do so. And then on the macro question. I think we had previously articulated our views. I'm here to talk to you today about long-term industry growth, being, you know, call it in North America, high single digits to low double digits, coming off of a couple of years of really strong performance with industry growing well above those levels, we had built in a perspective of being on the lower end of that range, with that, you know, also including some acknowledgement that there's a, couple hundred basis points of headwinds with Taylor and Beyonce not being on the road in 2024.

Stanley Chia: Free of charge study should we decide at some point to monetize the product I think it was fully baked be within.

Lawrence C. Fey: Industry norms to do so.

Lawrence C. Fey: And then on the macro question.

Lawrence C. Fey: I think we have previously articulated our views on.

Lawrence C. Fey: Long term industry growth being.

Lawrence C. Fey: Call it in.

Lawrence C. Fey: In North America high single digits to low double digits.

Lawrence C. Fey: Coming off of a couple of years of really strong performance with the industry growing well above those levels.

Lawrence C. Fey: Built in our perspective of being on the lower end of that range.

Lawrence C. Fey: With that also excluding <unk>.

Lawrence C. Fey: Acknowledgment.

Lawrence C. Fey: <unk>.

Lawrence C. Fey: A couple of hundred basis points of headwind with Taylor fiance, not being on the road in 2024.

Lawrence C. Fey: So nothing's meaningfully changed in that regard. But I think I'd call out that, if anything, sports is trending a little bit better than we would have expected given some of those favorable exogenous influences at the start of the year. And then, you know, if you can think about that. The calendar of concert timing, the headwinds that we are quoting on a full-year basis are disproportionately hit in the first seven months of the year and alleviated a bit in the back out.

Lawrence C. Fey: So nothing has meaningfully changed in that regard I think I'd call out if anything sports is trending a little bit.

Lawrence C. Fey: Better than we would have expected given some of those favorable exogenous influences to start the year and then you can think about that.

Lawrence C. Fey: Calendar of concert timing the headwinds that we are quoting on a full year basis disproportionately hit in the first seven months of the year and alleviate a bit in the back half and so I think here you are swimming in your swimming upstream a bit on the concert side right now, but I expect that to review on the back of the year.

Lawrence C. Fey: And so I think you're swimming upstream a bit on the concert side right now, but I expect that to alleviate on the back out. Great. Thanks, Dan.

Operator: Thanks, Larry. Thank you. I am showing no further questions at this time.

Speaker Change: Great. Thanks, Dan Thanks, Larry.

Speaker Change: Thank you.

Speaker Change: I'm showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Thanks for watching!

Kate Africk: Good morning, and welcome to the Vivid Seats first quarter 2024 earnings conference call. Following management's prepared remarks, we will open the call for Q&A. I would now like to turn the call over to Kate Africk.

Kate Africk: Good morning, and welcome to Vivid Seats' first quarter 2024 earnings conference. 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 Fay, Chief Financial Officer. By now, everyone should have access to our first quarter earnings press release, which we released earlier this month. The press release, as well as supplemental earnings slides, are available on the Investor Relations page of Vivid Seats' website at investors.vividseats.com. During the course of today's call, management may make forward-looking statements within the meaning of federal securities laws.

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Kate Africk: These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks and uncertainties described in our earnings press release, our most recent annual report on Form 10-K, and our other filings with the FDA. On today's call, we will refer to AdjustedEVIC. and AdjustedEVIC.Martin, which are non-GAAP financial measures that provide useful information for our. To the extent reasonably available, a reconciliation of these non-GAAP financial measures to their corresponding GAAP can be found in our earnings press release and supplemental earnings. And now I would like to turn the call over to you.

Kate Africk: Good morning, and welcome to the vivid seats first quarter 2024 earnings conference call. Following management's prepared remarks, we will open the call for Q&A I would now like to turn the call over to Kate Afric.

Speaker Change: Good morning, and welcome to <unk> first quarter 2024 earnings Conference call.

Speaker Change: Afric head of Investor Relations activity.

Kate Africk: Joining me today to discuss <unk> results are Stan Chia, Chief Executive Officer, and Larry <unk>.

Speaker Change: <unk> financial officer.

Kate Africk: By now everyone should have access to our first quarter earnings press release, which we released earlier. This morning, the press release as well as supplemental earnings slides are available on the Investor Relations page of <unk> website at investors <unk> Dot com.

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

Kate Africk: These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks and uncertainties described in our earnings press release, our most recent annual report on Form 10-K, and our other filings with the SEC.

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

Kate Africk: 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.

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

Stanley Chia: Good morning, everyone, and thank you for joining us today. We're off to a great start in 2024 with strong financial results and substantial progress made on key strategic initiatives. These results are a testament to our strong market position, superior and differentiated offering, as well as the consistent execution of our talented team to keep raising the bar. Today, I'll walk you through our financial highlights and then provide an update on our strategic initiatives.

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

Stanley Chia: We're off to a great start in 2024 with strong financial results and substantial progress made on key strategic initiatives.

Stanley Chia: These results are a testament to our strong market position superior and differentiated offering as well as the consistent execution of our talented team to keep raising the bar.

Stanley Chia: Today I'll walk you through our financial highlights and then provide an update on our strategic initiatives.

Stanley Chia: Then Larry will speak to our financial results in more detail. In the first quarter, we delivered over a billion dollars of Marketplace GOV for the second quarter in a row, along with $191 million of revenues and $39 million of adjusted EBITDA.

Stanley Chia: Then Larry will speak to our financial results in more detail.

Stanley Chia: In the first quarter, we delivered over $1 billion of marketplace <unk> for the second quarter in a row, along with $191 million of revenues and $39 million of adjusted EBITDA.

Stanley Chia: The strength of our business has continued, and we are proud to have delivered 20% top line growth and strong adjusted EBITDA margins that exceeded 20%. We saw widespread demand strength continue in the quarter, with fans across categories wanting to experience it live with their favorite artists and teams. Following Quarter End, the industry reached an exciting and important milestone for women's sports. After the Indiana Fever selected Kaitlyn Clark with the first pick in the WNBA draft, a women's sports team was the top-selling performer on our platform for the first time ever.

Stanley Chia: The strength of our business has continued and we are proud to have delivered 20% top line growth and strong adjusted EBITDA margins that exceeded 20%.

Stanley Chia: We saw widespread demand strength continue in the quarter with fans across categories wanting to experience it live with their favorite artists and team.

Stanley Chia: Following quarter end the industry reached an exciting and important milestone for womens sports.

Stanley Chia: After the Indiana fever selected Caitlin Clark with the first pick in the WNBA draft of women's sports team was the top selling performer on our platform for the first time ever we are excited to see the continued growth in women's sports and believe this demonstrates one example of the broad based strength we are.

Stanley Chia: We are excited to see the continued growth in women's sports and believe this demonstrates one example of the broad-based strength we are seeing across the live events landscape. As the live event industry continues to benefit from long-term tailwinds and as we continue to unlock leverage from our recent investments, we look forward to driving sustained double-digit growth on both the top and bottom lines for years to come. Through our loyalty program and brand initiatives, we reached a nearly 60% mix of repeat orders in 2020.

Stanley Chia: Seeing across the live events landscape.

Stanley Chia: As the live event industry continues to benefit from long term tailwind and as we continue to unlock leverage from our recent investments we look forward to driving sustained double digit growth on both the top and bottom line for years to come.

Stanley Chia: Through our loyalty program and brand initiatives, we reached nearly 60% mix of repeat orders in 2023.

Stanley Chia: Repeat orders are highly accretive to our margin profile, and Vivid Seats Rewards is one of many mechanisms that we employ to retain users within our ecosystem. Game Center is another key mechanism that attracts both existing and new customers to our platform. Whether it's winning free tickets, competing with friends, or scoring promo codes, the engagement and retention of customers has been excellent. In fact, customers that have earned promo codes have, on average, engaged with our platform 26 times before earning their first code.

Stanley Chia: Repeat orders are highly accretive to our margin profile and <unk> rewards is one of many mechanism that we employ to retain users within our ecosystem.

Stanley Chia: Game Center is another key mechanism that attract both existing and new customers to our platform.

Stanley Chia: Whether it's winning free tickets competing with friends or scoring promo codes the engagement and retention of customers has been excellent and.

Stanley Chia: In fact customers that have earned promo codes have on average engaged with our platform 26 times before earning their first code.

Stanley Chia: The repeated brand exposure and high-intent engagement creates many more opportunities for players to browse tickets and make repeat purchases, all the while providing us with more information to personalize our offerings to each user. Last quarter, we announced that we were accelerating our international expansion timeline, and I want to take a moment to highlight the excellent progress we are making. As we focus on internationalizing our platform so that it scales efficiently across geographies, we are pleased to report that we are on track to launch internationally by the end of the year.

Stanley Chia: The repeated brand exposure and high intent engagement creates many more opportunities for players to browse ticket and make repeat purchases all the while providing us with more information to personalize our offerings to each user.

Stanley Chia: Last quarter, we announced that we were accelerating our international expansion timeline and I want to take a moment to highlight the excellent progress we are making.

Stanley Chia: As we focus on international lives in our platform. So that it's scaled efficiently across geographies. We are pleased to report that we are on track to launch internationally by the end of the year.

Stanley Chia: While the platform cost of international expansion is now embedded in our financial profile, upside from international revenues and contribution is still to come. As we look abroad, we continue to see favorable market conditions and believe our differentiated value proposition will be well received by international consumers. We have also made substantial progress with our recent acquisition of Vegas.com. The integration of this business is going well, and we are already driving revenue. We are now selectively cross-listing and optimizing ticket listings from Vivid Seats, such as for top concerts and sporting events, on our Vegas.com property.

Stanley Chia: While the platform cost of international expansion is now embedded in our financial profile upside from international revenues and contribution is still to come.

Stanley Chia: As we look abroad, we continue to see favorable market conditions and believe our differentiated value proposition will be well received by international consumers.

Stanley Chia: We have also made substantial progress with our recent acquisition of Vegas Dot Com. The integration of this business is going well and we are already driving revenue synergies. We are now selectively cross listing and optimizing ticket lifting from vivek seats, such as for top concerts and sporting events.

Stanley Chia: This is driving incremental revenues as high-intent live event fans traveling to Vegas browse an even more comprehensive offering of live event listings on Vegas.com. Our optimization efforts are ongoing, and we look forward to ramping cross-listed volumes. As we've said before, we see great potential and multiple avenues for synergies with Vegas.com. Las Vegas, which is already a key market for us, is also the home of the recently announced College Basketball Crown, a new postseason tournament beginning in 2025. We are thrilled to be the tournament's official ticketing provider and will be the exclusive home for tickets across all games in the tournament.

Stanley Chia: On our Vegas Dotcom property. This is driving incremental revenues as high intent live event fans travelling to Vegas browsing, even more comprehensive offering of live event listings on Vegas Dot com.

Stanley Chia: Our optimization efforts are ongoing and we look forward to ramping cross lifted volumes as we said before we see great potential and multiple avenues for synergies with Vegas Dot com.

Stanley Chia: Las Vegas, which is already a key market for US is also the home of the recently announced college basketball Crown a new post season tournament beginning in 2025.

Stanley Chia: We are thrilled to be the tournaments official ticketing provider and will be the exclusive home for ticket across all games in the tournament.

Stanley Chia: This is a first for Vivid Seats and an example of how we are leveraging the power of our industry-leading technology platform in new ways. With this unique and innovative partnership, we will provide fans with a new turnkey end-to-end ticketing experience while simultaneously elevating our brand awareness nationally through another high-profile event in the entertainment capital of the United States. In summary, we are pleased with the great progress we are making on our strategic initiatives on the buyer side of our marketplace. As always, our focus is on driving long-term stickiness with both buyers and sellers. Shifting to the seller side of our business, we are proud to share that Skybox remains the leading platform for professional sellers.

Stanley Chia: This is a first for vivid seats and an example of how we are leveraging the power of our industry, leading technology platform in new ways.

Stanley Chia: With this unique and innovative partnership we will provide fans with a new turnkey end to end ticketing experience, while simultaneously elevating our brand awareness nationally through another high profile event and the entertainment capital of the United States.

Stanley Chia: In summary, we are pleased with the great progress, we are making on our strategic initiatives on the buyer side of our marketplace as always our focus is on driving long term stickiness with both buyers and sellers.

Stanley Chia: Shifting to the seller side of our business. We are proud to share that skybox remains the leading ERP for professional sellers building on our leading position we've strengthened our seller product lineup further and look forward to launching skybox drive our new automated pricing tool. Later this year, we continue to expect strong adoption from sellers for this tool.

Stanley Chia: Building on our leading position, we've strengthened our seller product lineup further and look forward to launching Skybox Drive, our new automated pricing tool, later this year. We continue to expect strong adoption from sellers for this tool, which is plugged directly into Skybox and will leverage robust data from our marketplace. As mentioned on previous calls, we have gone to new lengths to drive innovation and optimization in our market, launching new products for both buyers and sellers, expanding internationally, and strengthening our tech. These efforts have resulted in Vivid Seats being recognized amongst the world's greatest innovators.

Stanley Chia: <unk>, which is plugged directly into skybox and will leverage robust data from our marketplace.

Stanley Chia: I've mentioned on previous call, we have gone to new lengths to drive innovation and optimization in our marketplace launching new products for both buyers and sellers expanding internationally and strengthening our tech stack. These efforts have resulted in <unk> being recognized amongst the worlds greatest.

Stanley Chia: We are proud to share that we have recently been named to Fast Company's list of the world's most innovative companies of 2020. This prestigious list shines a spotlight on businesses that are shaping both industry and culture through innovation and setting new standards. With that, I will turn it over to Larry for a more detailed review of the quarter. Thanks, Dan. In the first quarter, our business continued to perform well amidst ongoing end market strengths, which we were pleased to translate into solid financial results.

Stanley Chia: Innovators.

Stanley Chia: Proud to share that we've recently been named the vast companies list of the world's most innovative companies of 2024.

Larry: This prestigious list shines a spotlight on businesses that are shaping both industry and culture through innovation and setting new standards.

Stanley Chia: With that I will turn it over to Larry for a more detailed review of the quarter.

Larry: Thanks, Dan.

Larry: In the first quarter, our business continued to perform well amidst ongoing end market strength, which we were pleased to translate to solid financial results.

Stanley Chia: In the first quarter, we generated more than $1 billion in marketplace GOV, which increased 20% year-over-year and was driven by increased total marketplace orders. Average order size was $358 in the first quarter of 2024 versus $376 in the first quarter of 2023, with the delta driven by the impact of acquisitions that bring a different AOS profile.

Larry: In the first quarter, we generated more than $1 billion of marketplace <unk>.

Stanley Chia: Which increased 20% year over year and was driven by increased total marketplace orders.

Stanley Chia: Average order size was $358 in the first quarter of 2024 versus $376 in the first quarter of 2023 with the Delta driven by the impact of acquisitions that bring a different AOS profile.

Lawrence C. Fey: We delivered 191 million in revenues in the first quarter, an 18% year-over-year increase. Our take rate was 15.6%, consistent with expectations of 15.5% or higher for full year 2024. In the first quarter, we delivered 39 million of adjusted EBITDA and a 20% adjusted EBITDA margin while making incremental investments to develop our international platform capability. As a reminder, our results for the first quarter of 2023 included $8 million of non-recurring timing benefits, which will impact year-over-year comparisons.

Stanley Chia: We delivered $191 million of revenues in the first quarter and 18% year over year increase.

Lawrence C. Fey: Our take rate was 15, 6% consistent with expectations of 15, 5% or higher for full year 2024.

Lawrence C. Fey: In the first quarter, we delivered $39 million of adjusted EBITDA, and a 20% adjusted EBITDA margin, while making incremental investments to develop our international platform capabilities.

Lawrence C. Fey: As a reminder, our results from the first quarter of 2023 included $8 million of nonrecurring timing benefits.

Lawrence C. Fey: Which will impact year over year comparisons.

Lawrence C. Fey: Turning to cash flow, we generated $39 million of cash from operations in the first quarter, bringing our cash balance to $154 million and our net leverage to 0.7 times forward-adjusted EBITDA. We continue to expect strong cash generation and adjusted EBITDA to cash conversion in 2024. After announcing a new $100 million share repurchase authorization on our fourth quarter earnings call, we repurchased 715,000 shares for an average price of $5.74 in March, leaving $96 million remaining under the authorization at quarter end.

Lawrence C. Fey: Turning to cash flow, we generated $39 million of cash from operations in the first quarter, bringing our cash balance to $154 million and our net leverage to 0.7 times forward adjusted EBITDA.

Lawrence C. Fey: We continue to expect strong cash generation and adjusted EBITDA to cash conversion in 2024 and beyond.

Lawrence C. Fey: After announcing a new $100 million share repurchase authorization on our fourth quarter earnings call. We repurchased 715000 shares for an average price of $5 74 in March leaving $96 million remaining under the authorization at quarter end.

Lawrence C. Fey: At these price levels, we believe repurchasing our stock is an attractive use of our robust cash flow. With a strong start to the year, we continue to expect 2024 Marketplace GOV in the range of $4.2 to $4.5 billion. 2024 revenues in the range of $810 to $840 million and 2024-adjusted EBITDA in the range of 160 to 170. Our guidance calls for double-digit growth on both the top and bottom lines for 2024.

Lawrence C. Fey: At these price levels, we believe repurchasing our stock is an attractive use of our robust cash flow.

Lawrence C. Fey: With the strong start to the year, we continue to expect 2024 marketplace <unk> in the range of $4 two to $4 5 billion.

Lawrence C. Fey: 2020 for revenues in the range of $810 million to $840 million.

Lawrence C. Fey: In 2024, adjusted EBITDA in the range of $160 million to $170 million.

Lawrence C. Fey: Our guidance calls for double digit growth on both the top and bottom line for 2024.

Lawrence C. Fey: And we expect to deliver double-digit growth on a sustained basis as we capture continued live event growth in North America and expand abroad, with a long history of operating leverage in our business. We believe our recent investments will augment both growth and profitability, and support an adjusted EBITDA margin improvement of 50 basis points per year in the coming years. Thanks, Larry.

Lawrence C. Fey: And we expect to deliver double digit growth on a sustained basis, because we capture continued <unk> growth in North America and expand abroad.

Lawrence C. Fey: With a long history of operating leverage in our business. We believe our recent investments will augment both growth and profitability in.

Lawrence C. Fey: In support adjusted EBITDA margin improvement of 50 basis points per year in the coming years.

Speaker Change: Back to you soon.

Stanley Chia: Before we conclude and turn to Q&A, I'd like to highlight the progress we have made on our ESG initiative. Last week, we published our 2024 Environmental, Social, and Governance Fact Sheet, providing new and updated performance metrics. Sustainability and corporate responsibility play a vital role in our business strategy, and we are pleased to share the progress we have made in 2020. On the environmental front, we measured and disclosed our scope 1 and 2 greenhouse gas emissions to better understand our impact, enhance transparency, and benchmark future progress.

Speaker Change: Thanks, Larry.

Speaker Change: Before we conclude and turn to Q&A I'd like to highlight the progress we have made on our ESG initiatives.

Stanley Chia: Last week, we published our 2020 for environmental social and governance, factsheet, providing new and updated performance metrics.

Stanley Chia: Sustainability and corporate responsibility play a vital role in our business strategy and we are pleased to share the progress we have made in 2023.

Stanley Chia: On the environmental front, we measured and disclosed our scope, one and two greenhouse gas emissions to better understand our impact enhanced transparency and benchmark future progress.

Stanley Chia: And on the governance front, we will have a majority independent board of directors with fully independent board committees by November 2024. We continue to demonstrate our commitment to enabling exceptional experiences for all stakeholders through the ongoing support of our employees, customers, and communities. To conclude, we are building upon an excellent 2023, where we delivered nearly 25% top and bottom line growth, and we are making significant progress thus far in 2024 on multiple strategic initiatives while delivering great financial results and increasing shareholder value.

Stanley Chia: And on the governance front, we will have a majority independent board of directors with fully independent Board committees by November 2024, we.

Stanley Chia: We continue to demonstrate our commitment to enabling exceptional experiences for all stakeholders through the ongoing support of our employees customers and communities.

Stanley Chia: To conclude we are building upon an excellent 2023, where we delivered nearly 25% top and bottom line growth and we are making significant progress thus far in 2024 on multiple strategic initiatives, while delivering great financial results and increasing shareholder value.

Stanley Chia: We look forward to making continued progress throughout the year toward our international launch and harnessing synergies from our Vegas.com activities. We are confident that our long-term strategy sets us up for double-digit growth again in 2024 and sustainably thereafter. With that, Operator, let's open it up for questions. Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced.

Stanley Chia: We look forward to making continued progress throughout the year toward our international launch and harnessing synergies from our Vegas Com acquisition.

Stanley Chia: We are confident that our long term strategy sets us up for double digit growth again in 2024 and sustainably thereafter.

Operator: Please limit yourself to two questions. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Ryan Sigdahl with Craig Hallam Capital Group. Your line is now open. Hey, good morning, Stan, Larry, Kate. Want to start, start with guidance?

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

Speaker Change: Thank you.

Speaker Change: At this time, we will conduct the question and answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced please limit to two questions to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.

Ryan Ronald Sigdahl: So you mentioned accelerating the international expansion timeline, I guess, is that different from what your expectation was a couple months ago, or just relative to the past kind of few-year strategy? And is 10 million still the right cost assumption for that guidance, and then kind of lastly, on guidance, I guess you beat nicely on Q1, reiterated the year, any other put stakes besides international in there? Yeah, thanks, Ryan. Yeah, I think International is progressing well. I don't think we should interpret that as a change in our philosophy.

Ryan Ronald Sigdahl: Our first question comes from the line of Ryan <unk> with Craig Hallum Capital Group. Your line is now open.

Speaker Change: Hey, good morning, Stan Larry Kate.

Ryan Ronald Sigdahl: I want to start start with guidance. So you mentioned accelerating international expansion timeline I guess is that <unk>.

Ryan Ronald Sigdahl: From what your expectation was a couple of months gorgeous relative to the past kind of few your strategy.

Ryan Ronald Sigdahl: Is $10 million still the right cost assumption that guidance and then kind of lastly on guidance I guess, you beat nicely on Q1 reiterated the year any other puts takes besides international in there.

Speaker Change: Yeah. Thanks Ryan.

Ryan Ronald Sigdahl: Yes.

Speaker Change: International is progressing well I don't think you should interpret that as our change in our philosophy, we are still not assuming within our guidance.

Ryan Ronald Sigdahl: We are still not assuming, within our guidance, any revenue or contribution margin beyond the G&A investment. If we get to a point where conviction and certainty on timing shifts to a level where it's prudent to include it, we'll let you know, but we're not at that point yet, but we're trending well to be able to go live before the end of the year. No changes to the investment amount.

Ryan Ronald Sigdahl: Revenue or contribution margin beyond <unk>.

Ryan Ronald Sigdahl: G&A investment.

Ryan Ronald Sigdahl: If we get to a point, where kind of conviction uncertainty on timing.

Ryan Ronald Sigdahl: Shifting to a level, where it's prudent to include it we will let you know, but we're not at that point, yet, but we're trending well to be.

Ryan Ronald Sigdahl: Are you able to go live before the end of year no changes on the investment amount I'd say, that's all trending consistent with expectations.

Lawrence C. Fey: I'd say that's all trending consistent with expectations. And then if you look at Q1 relative to full-year guidance, obviously, I think it's off to a nice start, but still early in the year with a lot to play out, so it felt prudent to maintain the targets for that. Very good. This is my follow-up AEG partnership, I guess, for College Basketball Crown, a new, unique kind of where you guys are going to distribute primary tickets be the exclusive, but can you talk through, I guess, the uniqueness of this deal, how you want it, why AEG and AXS need Vivid, and then if there are any other opportunities like this out there? Yeah, hey Ryan.

Speaker Change: And then as you look at Q1 relative to full year guidance, obviously I think.

Speaker Change: After a nice start but still early in the year with a lot to play out.

Lawrence C. Fey: Prudent.

Speaker Change: Maintain the parts where they are.

Speaker Change: Very good.

Speaker Change: Just as my follow up AEG partnership I guess for college basketball Crown.

Speaker Change: New unique kind of where you guys are going to distribute primary tickets be the exclusive but can you talk through I guess.

Speaker Change: The uniqueness of this deal how you want it why does the G&A excess need vivid.

Speaker Change: And then if there are any other opportunities like this out there.

Stanley Chia: Look, I think we're really excited about being their partner in this new tournament. I think, as we've continued to demonstrate, we have looked to use our technology across, you know, multiple vehicles where, you know, I think the uniqueness of what we do, combined with the abilities that we have, allow us to serve as wonderful sources of distribution for partners and ultimately great value for fans and sellers. You know, we've got a great relationship with AEG and AXS through this, and I think when we looked at what we do well and what they were looking for in a partner, this looked like a fantastic opportunity, and we're really excited to see how it plays out next year. Thanks, guys. Good luck!

Speaker Change: Yeah, Hey, Ryan.

Stanley Chia: Look I think we're really excited about being their partner on this front and I think it is.

Stanley Chia: We have continued to demonstrate we have looked.

Stanley Chia: To use our technology across multiple vehicles, where you think the uniqueness of what we do combined with ability and that we have allow us to serve as a wonderful sources of distribution for partners and ultimately create value for fans and sellers.

Stanley Chia: Great relationship with AEG.

Stanley Chia: Access through this and I think when we looked at what we do well and what they were looking for in a partner this looks like a fantastic opportunity and we're really excited to see how it plays out next year.

Speaker Change: Awesome. Thanks, guys. Good luck.

Speaker Change: Thank you one moment for our next question.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Curtis Nagle with B of A. Your line is now open. Great, thanks very much for taking the question. Yeah, maybe, Stan, one for you.

Stanley Chia: Our next question comes from the line of Curtis Nagle with Bofa. Your line is now open.

Curtis Smyser Nagle: Great. Thanks, Thanks, very much for taking the question.

Curtis Smyser Nagle: So, you know, quickly here, in terms of, you know, Vegas.com. Seems like that's ramping nicely. Senator, just starting to come through. Any more, I guess, metrics or, in terms of just a framework of kind of the potential lift we could see from cross-selling or integrating that asset in a fulsome way into the platform. Yeah, hey, Curtis.

Operator: Yes.

Curtis Smyser Nagle: Then one for you.

Curtis: Good to hear in terms of.

Speaker Change: Satcom it seems like that's ramping nicely synergies starting to come through.

Speaker Change: Any more metrics or in.

Speaker Change: In terms of just a framework of kind of what potentially we could see some cross selling.

Curtis Smyser Nagle: Integrating that asset.

Curtis Smyser Nagle: In a fulsome way into the platform.

Stanley Chia: Thanks for the question. Look, we were excited when we acquired Vegas.com, and, you know, call it, you know, four or five months in now, we're even more excited about what we see. We continue to look at that as really a critical part of our marketplace business. And, you know, the thesis that, or the theses that we've, we had going into this, I think, continue to play out well, whether that is being a wonderful customer acquisition source for us that we are then able to blend into our other marketplace brands, or simply being able to monetize that traffic in an incremental manner, where we are now able to add not just the selection that Vegas.com had organically pre-acquisition, but we are also able to infuse it with events and selection that they didn't have access to prior from the Vivid Seats supply side.

Curtis: Yeah, Hey, Chris Thanks for the question.

Stanley Chia: We were excited when we acquired Vegas, Dotcom and you know I'll call it.

Stanley Chia: Four five months and now we're even more excited about what we see we continue to look at that is really.

Stanley Chia: A critical part of our marketplace business.

Stanley Chia: The thesis that our thesis is that we had going into this I think continue to play out well whether that is being a wonderful customer acquisition source for us that we are then able to blend into our other marketplace.

Stanley Chia: So, I think, continue to be excited. Those are the themes that we had going into it, and we're starting to see a lot of that come to fruition. And remain really bullish on that for the remainder of the year. Perfect. I'm going to be able to follow up with one.

Stanley Chia: Brand or simply being able to monetize that traffic in an incremental manner, where we are now able to add not just the selection that Vegas dot com.

Stanley Chia: Organically pre acquisition, but we're also able to infuse it with.

Stanley Chia: Events and selection that they didn't have access to prior from the supply side, but I think continue to be excited.

Stanley Chia: This is that we had going into it and we're starting to see a lot of that come.

Stanley Chia: To fruition and remain really bullish on that for the remainder of the year.

Stanley Chia: Eric.

Speaker Change: I'll just follow up with one.

Lawrence C. Fey: Competition in the U.S., obviously, your primary, and the only market right now, how does that look kind of relative to, let's just say, the end of the year and kind of how it shapes up through the quarter? I know you didn't give guidance for the year, or at least you said the quarter, but you put up some really nice GMV, so at a minimum, you're executing well. But just, yeah, anything to call out in terms of how to think about relative competition for your bigger competitors and just how you think that shapes up through the year.

Stanley Chia: Competition.

Lawrence C. Fey: U S. Obviously, what your primary market right now.

Lawrence C. Fey: How does that work kind of relative to what you said at the end of the year kind of how it shapes up through the quarter.

Lawrence C. Fey: I know you didn't give guidance for the year or I should say the quarter, but put.

Lawrence C. Fey: Put up some really nice TMZ so.

Lawrence C. Fey: Admittedly, you're executing well, but just.

Lawrence C. Fey: Anything to call out in terms of how to think about relative competition for your bigger competitors and just how you think that shapes up through the year.

Lawrence C. Fey: Yeah, I'd say, you know, we've, in prior quarters, used ebb and flow language and, I think, indicated that, and in the back half of last year, you know, within those normal bands, perhaps a little bit closer to the higher sides and then the lower sides. I think that continued into Q1 without meaningful change.

Lawrence C. Fey: Yes.

Lawrence C. Fey: Yes.

Speaker Change: I would say.

Lawrence C. Fey: In prior quarters.

Lawrence C. Fey: Ebb and flow of language.

Lawrence C. Fey: And I think indicated that.

Lawrence C. Fey: In the back half of last year within the normal bands, perhaps on a little bit closer to the higher side.

Lawrence C. Fey: Lower side I think that continued.

Lawrence C. Fey: Into Q1 without meaningful.

Curtis Smyser Nagle: What I would call out is that if you did a year over year Q1 24 versus Q1 23 comparison, Q1 23 was on the other side. Within those natural oscillations, Q1 of 23 was a fair bit, as we saw, less competitively intensive relative to the balance of the year. All right, okay. Thanks very much.

Lawrence C. Fey: Change.

Curtis Smyser Nagle: I'd call out.

Curtis Smyser Nagle: You did like a year over year Q1, 24 versus Q1 'twenty three comparison Q1, 'twenty three with on the other side right within those national operations Q1 of 'twenty three.

Curtis Smyser Nagle: We felt less competitively intensive intensive relative to the balance of the year, whereas this year. It feels like it's on the higher end of the spectrum.

Curtis Smyser Nagle: Both periods I'd say within within the bounds that we've seen in the past.

Curtis Smyser Nagle: Alright, okay. Thanks very much.

Operator: Thank you. One moment for our next question. Our next question comes from Dan Kurnos with The Benchmark Company. Your line is now open.

Speaker Change: Thank you one moment for our next question.

Daniel Louis Kurnos: Our next question comes from Dan <unk> with the Benchmark Company. Your line is now open.

Daniel Louis Kurnos: Yeah, thanks. Just let me follow up on that, Larry, for a second. And Stan, given the strong re-engagement and stickiness metrics that you guys have, given, you know, kind of the noise in the competitive landscape, I know you guys always find unique ways to go out there and market, but, you know, what's the thought here on driving sort of new customers into the system a little bit more aggressively while, you know, the other guys are trying to figure out a way to market? Hey, Stan.

Daniel Louis Kurnos: Yes. Thanks.

Speaker Change: Let me follow up on that Larry for a second just stand.

Daniel Louis Kurnos: Stand given the strong reengagement.

Daniel Louis Kurnos: Stickiness metrics that you guys have given kind of the noise in the competitive landscape I know you guys always find unique ways to go out there and market, but whats.

Stan: What's kind of the thought here on driving sort of new customers into the system, a little bit more aggressively while the other guys are trying to figure out a way to market.

Stanley Chia: Look, I think, as you said, we have always focused on the things that we control and looked to build on products and platforms that allow acquisition and stickiness to be strong, right? We've spent some time talking about Vegas.com. I think that is a very unique source for you new customer acquisitions. If you look at that Crowns Basketball Challenge tournament that we announced with AEG, we're really bullish on that, right?

Stan: Hey, Dan.

Stanley Chia: Look I think as you said, we are always focused on the things that we control and look to build on products and platforms that allow acquisition and stickiness to be stronger and we spent the time talking about Vegas Dot com I think that is a very unique source for new customer acquisition. If you look at that.

Stanley Chia: Basketball Challenge tournament that we announced with AMG, we're really bullish on that right. When you look at the fundamental basis for doing that deal that will be a very.

Stanley Chia: When you look at the fundamental basis for doing that deal, that will be a very, I think, strong source of customer acquisition and retention that will be unique to us and our ability to retain that within our ecosystem, right? So, while we always talk about, undoubtedly, this is a competitive environment, the reality is, I think, we are very focused on the things that we control and have great confidence in the investments that we're making to drive both better acquisition and, as always, I think, much stronger retention, which we see through our engagement vehicles, our repeat rates, and our loyalty programs. It's clearly showing the numbers, Stan.

Stanley Chia: I think strong source of customer acquisition and retention that will be unique to us.

Stanley Chia: And our ability to retain that within our ecosystem right. So.

Stanley Chia: We always talk about.

Stanley Chia: Undoubtedly this is a competitive environment the reality.

Stanley Chia: We are very focused on the things that we control that has great confidence in the investments that we're making to drive both.

Stanley Chia: Better acquisition as always I think much stronger retention, which we feature our engagement vehicles, our repeat rates our loyalty program.

Daniel Louis Kurnos: I guess the follow-up question on the AEG stuff, I mean, what is your appetite for further primary rather than secondary? Or is this, as you said, more just a unique customer acquisition play? I think the appetite is always there for great deals that are accretive to us and wins for our partners, right? So I don't know that I'd look at it as primary or secondary.

Stanley Chia: Brian It's clearly showing the numbers and I guess the follow up I guess on the AEG stuff I mean, what is your appetite for further primary rather than secondary or is this as you said more just a unique customer acquisition play.

Daniel Louis Kurnos: Yes, I think the appetite is always there for.

Daniel Louis Kurnos: Great deals that are accretive to us in wins for our partners, but I don't know that I would look at it as primary or secondary I think I'd look at this as well.

Stanley Chia: I think I'd look at this as we bring great marketplace technology to the ecosystem with an ability to drive value to those who need distribution, as well as being able to allow sellers and fans to participate greatly. And I think we found a great partner in AEG who was willing to construct that deal in a way that made sense for both us and them. And wherever those opportunities exist, we'll be really aggressive in pursuing them. We make intelligent deals in this marketplace. That's a novelty.

Stanley Chia: Bringing great marketplace technology into the ecosystem with an ability to drive value to those who need distribution.

Stanley Chia: As well as being able to allow sellers and fans to participate greatly and I think we found a great partner in AEG, who is willing to construct that deal in a way that made sense for both us and them and wherever those opportunities exist will be really aggressive in pursuing them.

Stanley Chia: All right, Stan, appreciate it. Nice start to the year, guys. Thank you. One moment for our next question. Our next question comes from the line of Maria Ripps with Canaccord.

Speaker Change: Intelligent deals in this marketplace, that's a novelty alright, Dan appreciate it nice start to the year guys.

Maria Ripps: Thank you one moment for our next question.

Stanley Chia: Yeah.

Operator: Your line is now open. Great. Thanks so much for taking my questions. First, I just wanted to follow up on international. Could you maybe give us a little bit more color on the building blocks of your international infrastructure investments? What are maybe some of the sort of more intense aspects of the investment cycle? And then any color you can share on the potential sort of markets that you have in mind. Yeah, hey Maria.

Maria Ripps: Our next question comes from the line of Maria reps with Canaccord. Your line is now open.

Operator: Okay.

Speaker Change: Great. Thanks, so much for taking my questions.

Operator: First I just wanted to follow up on international could you maybe give us a little bit more color on the building blocks of your international infrastructure investments.

Operator: What are some maybe some of the sort of more intense aspects of the investment cycle and then any color you can share on the potential set of markets that you have in mind.

Maria Ripps: Yeah, I think it's no small feat to certainly internationalize the platform, and I'm really excited and proud of the work that the team has already done so far this year. You know, as you mentioned, there are key building blocks that you have to build and invest in to be able to scalably launch across markets. And so I think about that as just as simple as it sounds, you know, language capabilities that extend into the platform on the buy side, on the sell side, on the support and service side, making sure we understand, you know, I think currency, again, on the buy side, on the sell side, into making sure that we can both receive and remit payments, understanding local regulatory environments and ensuring compliance across the platform, right?

Operator: Yes.

Maria Ripps: Yes, I think it's no small feat to certainly internationalize the platform that im really excited and proud of the work that the team has already done so far this year. As you mentioned there are key building blocks that you have to build and invest in to be able to scale up the launch across markets and so I think about that.

Maria Ripps: As simple as it sounds language capabilities that extend into the platform on the buy side on the sell side on the support and service side, making sure we understand I think currency again on the buy side the sell side.

Maria Ripps: Making sure that we can both receive and at <unk>.

Maria Ripps: Payments understanding local regulatory environment, and ensuring compliance across the platform right. I think if you look at those at the very large building blocks to make sure that the platform scale that directly it takes a lot of the investment work and then being able to then customize the scalable manner to the markets that we decide to do 11.

Maria Ripps: I think, you know, if you look at those as the very large building blocks to make sure that the platform scales, that certainly takes up a lot of the investment work. And then being able to then, you know, customize that in a scalable manner to the markets that we decide to go live in is probably the later piece. And again, I think everything we're seeing so far, we remain really excited about the ability and on track to do that before the end of the year.

Maria Ripps: It's probably the later piece and again I think everything we're seeing so far we remain really excited about the ability and on track to do that before.

Maria Ripps: And, you know, as you talk about markets, we've looked across, I think, the landscape, and certainly, as others in the space have discussed, there are just, I think, great opportunities across multiple markets. And so I think as we look at the international landscape, we'll certainly be excited and happy to talk more about it as we start to go live. That's very helpful. And then secondly, with a generally stronger than expected Q1, how should we think about the seasonality of GOB and revenue?

Maria Ripps: At the end of the year.

Maria Ripps: As you talk about the market.

Maria Ripps: We've looked at Rob I think the landscape is certainly as other than the space.

Maria Ripps: <unk> has discussed I think great opportunity across multiple markets and so I think as we look at the international landscape will certainly be.

Maria Ripps: Excited and happy to talk more about it at least.

Speaker Change: Thanks, a lot.

Maria Ripps: Got it got it that's very helpful. And then secondly, sort of with generally stronger than expected Q1, how should we think about the seasonality of <unk> and revenue.

Maria Ripps: here in the context of your four-year guide. Yeah, I think there are significant shifts in how we think about the year, but I would, you know, highlight some. Some of those exogenous reasons that we tend to shy away from giving precise quarterly guidance. David Pierre in Q1, for example, a pretty good Super Bowl dynamic with Las Vegas as the destination, pretty robust ticket prices corresponding to that, a pretty good college football playoff matchup, and a lot of hype and interest around the NCAA tournament. So some of those, particularly in sports, are driven by exogenous matchups.

Maria Ripps: This year in context of your full year guidance.

Speaker Change: Yes, I think.

Maria Ripps: No significant shifts in how we think about the year, but I would highlight.

Maria Ripps: Some of those exogenous reasons that we tend to shy away from giving precise quarterly guidance.

Maria Ripps: Data appear in Q1 for example, pretty good Super Bowl dynamic with Las Vegas, or destination pretty robust ticket prices corresponding to that a pretty good college football playoff match up a lot of hyphen interest around the Ncw tournament.

Maria Ripps: Some of those particularly export.

Maria Ripps: Yes.

Maria Ripps: Roger.

Stanley Chia: Elements fell our way, and so in the spectrum of Q1 relative to the full year, we probably came in a little bit more robust than if those had gone the other way. Got it. Thank you so much.

Maria Ripps: <unk> driven.

Stanley Chia: Elements fell our way.

Stanley Chia: On the spectrum of Q1 relative to the full year, we probably came in a little bit more robust than folks had gone the other way.

Speaker Change: Got it thank you so much.

Lawrence C. Fey: Thank you. One moment for our next question. Our next question comes from the line of Matt Farrell with Piper Sandler. Your line is now open.

Speaker Change: Thank you one moment for our next question.

Matthew F. Farrell: Our next question comes from the line of Matt <unk> with Piper Sandler Your line is now open.

Operator: Thanks for letting me ask the question and congratulations on the strong start of the year. Really exciting to hear about the momentum in women's sports here at the end of Q1. I guess maybe as we think about the rest of the year and moving forward, how should we be thinking about the tailwind of women's sports more broadly and maybe even hitting on maybe some of the second and third tier sports as well and just the growth you're seeing in those on the platform?

Matthew F. Farrell: Thanks for letting me ask the question and congrats on the strong start of the year.

Operator: Really exciting to hear about the momentum in women's sports here at the end of Q1, I guess, maybe as we think about the rest of the year and moving forward how should we be thinking about the tailwind of women's sports more broadly and maybe even hitting on maybe some of the second.

Operator: Tier sports as well and just the growth youre seeing in those on the platform.

Operator: Yeah, I think that so I guess I'd start with, Sports Represent, a little under 40% of our GOV collectively. Within that, you know, there are multiple verticals across each of the major professional leagues, college basketball, college football, soccer, and then now, you know, as we think about others, the other sports categories.

Speaker Change: Yes, Thanks, Matt.

Operator: I guess I would start with.

Operator: Sports represents a little under 40% of our GOP collectively.

Operator: Within that there is.

Operator: Multiple verticals across each of our major professional leagues.

Operator: College Basketball College football soccer.

Matthew F. Farrell: So I dimensionalize that, you know, if you sort of think about six or seven major pillars within a portion of the business, it's roughly 40%. You know, you can think about any one pillar in the, [inaudible] A lot of tailwinds behind soccer, tailwinds behind some fighting, UFC in particular, but also some nice dynamic cross-wrestling and then women's sports. And so you can think of those tailwinds as, you know, probably driving.

Operator: Soccer and and now as we think about others the other sport category.

Matthew F. Farrell: I dimensionalize that sort of thing about six or seven major pillars within a portion of the business, it's roughly 40%.

Matthew F. Farrell: You can think about any one pillar.

Matthew F. Farrell: Mid to high single digits of our overall what.

Matthew F. Farrell: What we've certainly seen us.

Matthew F. Farrell: A lot of tailwind behind soccer tailwind behind.

Matthew F. Farrell: We are fighting UFC in particular, but also from that dynamic Cross wrestling and then women's sports.

Matthew F. Farrell: And so you can think of a tailwind is probably driving.

Lawrence C. Fey: Well above category growth rates, but you know, the overall adjustments you make just given the respective shares each of these leagues represents in our sports book, which is a minority of our overall GOV position. So a nice tailwind, probably wouldn't design a financial model around. And then, you've hit on a lot of the revenue synergies from the recent acquisitions, but anything you could add on the cost side and synergies there? Is it helping to offset some of the investments internationally at all? Thanks.

Matthew F. Farrell: Well above category growth rates, but temper that.

Lawrence C. Fey: Overall adjustments you made just given.

Lawrence C. Fey: The respective shares in each of these leagues represents of our sports book.

Lawrence C. Fey: A minority of our overall GOP proficient so a nice tailwind and I, probably wouldn't design financial model around it.

Lawrence C. Fey: And then you've hit on a lot of the revenue synergies from the recent acquisitions, but anything you could add on the cost side and synergies there has been helping to offset some of the investments internationally at all thanks.

Lawrence C. Fey: Yeah, I'd say in both instances, we acquired businesses that were, I think, run on the lean side of the spectrum. There are definitely pockets here and there where we're able to consolidate some functions and capabilities, drive some efficiencies, drive some shared learnings, bring vendors together to get some bundling benefits just from our scale, but I would characterize those as clearly secondary to the strategic and revenue opportunities that we've articulated. Thank you

Speaker Change: Yes, I would say in both instances.

Lawrence C. Fey: We acquired businesses that were I think Ryan on the lean side of the spectrum.

Lawrence C. Fey: There are definitely pockets here and there we're able to consolidate some functions and capabilities drive some efficiency drive some shared learnings frame vendors together, we're able to get some bundling benefits just from our scale.

Lawrence C. Fey: But I would characterize those as clearly secondary strategic and revenue opportunities that we've articulated.

Speaker Change: Thank you one moment for our next question.

Operator: One moment for our next question. Our next question comes from the line of Cameron Manson, from Peron, with Morgan Stanley. Your line is now open. Thanks. Good morning, guys.

Lawrence C. Fey: Our next question comes from the line of Cameron <unk> with Morgan Stanley. Your line is now open.

Cameron Manson: First off, just as we think about the mix of GOV across categories for Vivid. You know, obviously, there's a lot of moving parts there this year with the business integration, but I'd love to know, looking forward to 25 and beyond, just how do you guys think about where that mix evolves over time and which verticals, in your mind, are the stronger or more attractive growth vectors long-term for Vivid, whether that's from a GOV growth perspective or better or worse take-rate opportunity perspective.

Cameron Manson: Thanks, Good morning, guys.

Cameron Manson: First off just as you think about the mix of <unk>.

Cameron Manson: <unk> across categories for David obviously, Theres a lot of moving parts this year with the.

Cameron Manson: The business integration, but I'd love to know looking forward to 'twenty five and beyond just how do you guys think about where that mix evolves over time, and which verticals in your mind are the stronger more attractive growth vectors long term for vivid.

Cameron Manson: Whether that's from a growth perspective, or better where it's take rate opportunity perspective, we just love to hear your thoughts on kind of how you think about that medium long term.

Cameron Manson: We'd just love to hear your thoughts on kind of how you think about that medium-long term. And then, Larry, following up on your comments around the kind of expectation for margin improvement over time, just curious also how you guys think about that strategically and, you know, why 50 basis points is maybe the right cadence or if it's not necessarily the 50 basis points necessarily because I'm sure that, you know, you're not running it long-term for any specific target necessarily, and the competitive environment has a lot to do with this, but just We'd love to hear from you.

Cameron Manson: And then Larry following up on your comments around the kind of expectation for margin improvement over time, just curious also.

Cameron Manson: You guys think about that strategically.

Cameron Manson: By 50 basis points is maybe the right cadence or if it's not the 50 basis points necessarily because I'm sure that you.

Cameron Manson: Youre not running it long term for any specific target necessarily the competitive environment has a lot to do with this but just how do you think about the trade offs in terms of the margin trajectory over time, we'd love to hear thanks, guys.

Lawrence C. Fey: Thanks, guys. Yeah, thanks, Cameron. Sorry about the segments. Generally, we have come to the belief that the secular trends are probably the most robust in... [inaudible] In most years, it's the same teams playing in the same stadiums on the same schedule, same playoff opportunity, and growth will typically come from price and then the episodic expansion of a playoff series, insertion of in-season tournaments, right. In the NFL, they're talking about a Week 18 or Whereas in concerts...

Speaker Change: Yes, Thanks Kamran.

Lawrence C. Fey: Starting with the segments.

Lawrence C. Fey: Generally we are.

Lawrence C. Fey: Come to the belief that the secular trends are probably the most robust and.

Lawrence C. Fey: Concerts in particular and driving that as you've got really robust demand dynamics. You don't have the same capacity constraints that you Havent sports. So if you were to pick on the major professional League baseball football hockey basketball.

Lawrence C. Fey: In most years, it's the same teams playing in the same paydowns on the same schedule at the St play out opportunity.

Lawrence C. Fey: And growth will typically come from price and then the episodic.

Lawrence C. Fey: Expansion of our playoffs series insertion of MCC tournament, and NFL Theyre talking about <unk> 18, or <unk> 18 per game.

Lawrence C. Fey: But those types of ability to drive.

Lawrence C. Fey: The number of events are a bit more limited within the existing major sports, whereas in concerts.

Lawrence C. Fey: Many venues, especially the largest venues, are well short of 100% capacity utilization. In our Chicago example, right? I drive by Soldier Field, a 65,000-person stadium, and I think it's full.

Lawrence C. Fey: Many venues, especially the largest venues are well short of a 100% capacity utilization in our Chicago example.

Lawrence C. Fey: Drive by soldier field 65000 person stadium and I think it's full.

Lawrence C. Fey: 20 days a year, right? So the opportunity for artists to trade up, and you can extend that right across the United Center and a number of the other large stadiums, is much more robust in concerts, which I think underpins a nice secular growth tailwind. We've touched on some of the, call them secondary sports, that have really bolstered the existing pillars that I think help the sports growth rate, but even with that, I would point out that the fundamental trends underpinning concerts are probably a bit more robust.

Lawrence C. Fey: 20 days a year, so the opportunity for artists to trade up.

Lawrence C. Fey: You can extend that right across the United Center, and a number of the other large stadiums.

Lawrence C. Fey: It is much more robust in concert, which I think underpins.

Lawrence C. Fey: A nice secular growth tailwind.

Lawrence C. Fey: Touched on some of the.

Lawrence C. Fey: Call It secondary export that have really bolstered.

Lawrence C. Fey: Drifting pillars that I think helps the sports growth rate, but even with that I would point to.

Lawrence C. Fey: The fundamental trends underpinning concerts.

Lawrence C. Fey: You know, the last piece, there are not dramatic differences in take rates. There are not dramatic differences in repeat rates across the categories, but they're not identical, right? You can imagine someone who goes to baseball games and there are just so many games in a year. The proclivity to repeat is probably slightly higher than when you see Taylor Swift and she hasn't come back into your city for five.

Lawrence C. Fey: It's probably a bit more robust.

Lawrence C. Fey: The last piece is there is not dramatic differences in take rate theres not dramatic differences in repeat rates across the categories, but they're not identical alright, you can imagine someone who goes to baseball games and there is just so much. So many names in a year the proclivity to repeat is probably slightly higher than.

Lawrence C. Fey: When you see Taylor Swift since you have to come back into your city for five years.

Lawrence C. Fey: And so you see that span the category, so slightly different take rates, slightly different repeat rates, perhaps an opportunity over time as we continue driving engagement, driving platform comfort, that we can shift concert behavior to look a little bit more like sports, but that's a very long-term opportunity. Then shifting to the margins, you know, Always a little bit of the balance. We're speaking in aggregate at the P&L and what we're hoping a sum of the series of micro decisions will roll up to year after year.

Lawrence C. Fey: So you see that expand the category to a slightly different take rate slightly different repeat rates, perhaps an opportunity over time as we continue driving engagement driving platform comfort that we can ship concert behavior to look a little bit more like sports, but that's a very long term opt.

Lawrence C. Fey: Opportunity.

Lawrence C. Fey: Shifting to the margin.

Lawrence C. Fey: Oh, it's a little bit of a balance we're speaking in aggregate.

Lawrence C. Fey: And what we're hoping some of the series of micro decisions will rollout to year after year, but ultimately underpinning that when you decompose those margin commentary is a series of risk reward and ROI evaluations across innumerable.

Lawrence C. Fey: But ultimately, underpinning that when you decompose those margin commentaries is a series of risk-reward and ROI evaluations across innumerable opportunities. And so it's properly calibrating where you want to draw the line on what you're saying yes to and what you're saying no to.

Lawrence C. Fey: Opportunities and so properly calibrating, where you want to draw the line on what you are saying, yes to what you are saying no to with the background music being that we've knowing we made some pretty significant investments into some loyalty and brand initiatives.

Lawrence C. Fey: With the background music being that we've knowingly made some pretty significant investments into some loyalty and brand initiatives and have committed to driving leverage against those. And I think that impacts kind of the marginal decision to make sure that we're adhering to that overall ROI profile and ensuring that we're delivering proper returns on the investment. Got it. Helpful caller.

Lawrence C. Fey: <unk> has committed to driving leverage against those and I think that impact.

Lawrence C. Fey: Kind of the marginal decision to make sure that we're adhering to that overall ROI profile and ensuring that we're delivering proper returns on the investments we've made.

Speaker Change: Got it helpful color. Thanks, Larry.

Speaker Change: Thank you one moment for our next question.

Operator: Thanks, Larry. Thank you. One moment for our next question. Our next question comes from the line of Thomas Forte with Maxim Group. Your line is now open.

Operator: Our next question comes from the line of Thomas Forte with Maxim Group. Your line is now open.

Thomas Ferris Forte: Great. Thanks for taking my question and congrats on the quarter. I joined late, so I apologize if someone had something like this earlier in the queue.

Thomas Ferris Forte: Great. Thanks for taking my question and congrats on the quarter I joined late so I apologize if someone has something like this earlier in the queue.

Lawrence C. Fey: In the earnings release, you indicated you were confident in your ability to grow top and bottom lines by double digits for the long term. First, are those organic growth rates or reflective of assumptions on future strategic M&A? And then second, while we're on that topic, can you talk about your current capital allocation priorities between investing in the existing business, strategic M&A, and buyback? Yeah, I think, you know, starting with the capital allocation ladder.

Lawrence C. Fey: The earnings release, you indicated you are confident in your ability to grow top and bottom line by double digits for the long term first are those organic growth rates or reflective of assumptions on future strategic M&A and then second lower on that topic can you talk about your current capital allocation priorities between investing in the existing business.

Lawrence C. Fey: Strategic M&A and buybacks.

Speaker Change: Yeah. Thanks, Tom.

Lawrence C. Fey: Starting with the latter on capital.

Lawrence C. Fey: Allocation.

Lawrence C. Fey: I think you've hit on the three things that we'd like to invest in. Certainly, as we think about investment into the business itself, organic investments, if you will, you know, we generate a lot of profitability, and we generate a lot of cash flow. I don't think we've, in any way, deprived the business of investments. And so, somewhat tying into the prior comments I just made, we see a lot of opportunities. We say yes to a number; we say no to more.

Lawrence C. Fey: Yes.

Speaker Change: Thank you Bart you've hit on the three things that we'd like to invest.

Lawrence C. Fey: Certainly as we think about investment into the business itself organic investments if you will.

Lawrence C. Fey: <unk> a lot of profitability, we generate a lot of cash flow I don't think we are in any way deprive the business of investments and so somewhat tying into the prior comments I just made we see a lot of opportunities, we say up to a number we say no to more.

Lawrence C. Fey: But we're always evaluating those through, you know, a risk-reward and ROI framework, and we have not ever come to a point where we said no to things that we felt like were the right long-term answer in favor of short-term performance.

Lawrence C. Fey: But we're always evaluating those through a risk reward and ROI framework.

Lawrence C. Fey: And have not ever come to a point, where we said no to things that we felt like we are the right long term answer in favor of short term performance and for that as we do generate that profitability and cash flow.

Lawrence C. Fey: And so, as we do generate that profitability and cash flow, it begs the question, right, we've got a strong balance sheet; as we continue to generate cash, what do we do with it? And the two highest and best uses that we see have been, if you can find strategic and accretive acquisitions; we should pursue those. If we can buy ourselves at attractive prices, we should pursue that. Now, both of those are somewhat outside of our control, right? The opportunities that come down the pipeline are beyond what we can influence, so we evaluate what is available at any point in time. And, similarly, we don't control where our shares trade.

Lawrence C. Fey: Thanks for the question right, we've got a strong balance sheet as we continue to generate cash what can we do it.

Lawrence C. Fey: And the two highest and best uses that we see.

Lawrence C. Fey: Hum.

Lawrence C. Fey: Ben if he can find strategic and accretive.

Lawrence C. Fey: Acquisition, we should pursue.

Lawrence C. Fey: If we can buy ourselves at attractive prices, we should pursue that now both of those are somewhat outside of our control right the opportunities that come down the pipeline.

Lawrence C. Fey: Yes.

Lawrence C. Fey: Beyond what we can influence so we evaluate what is available at any point in time.

Lawrence C. Fey: And then similarly, we don't control there where our shares trade I think we've indicated.

Lawrence C. Fey: I think we've indicated with our share purchase initiative that we think currently it's a particularly attractive time for us to be reinvesting in ourselves. And that will be, and has been, and will remain the bar for acquisitions, right? They need to stand alone on an absolute, but also on a relative return basis.

Lawrence C. Fey: Our share repurchase initiatives that we think currently.

Lawrence C. Fey: Particularly track.

Lawrence C. Fey: Attractive time for us to be reinvesting in ourselves.

Lawrence C. Fey: That will be it has been and will remain the bar for acquisitions wrapping into stand alone on an absolute but also on a relative return basis.

Lawrence C. Fey: So we'll continue to do that. On the double-digit growth profile, I think because of the episodic nature of M&A, we can't and won't build that into our base case growth plan. If they do come along, they can either fill in or add to those targets, but we wouldn't build that into a base case.

Lawrence C. Fey: So we'll continue.

Lawrence C. Fey: To do that.

Speaker Change: Got it.

Lawrence C. Fey: Double digit growth profile.

Lawrence C. Fey: Because of that episodic nature of M&A, we can't and won't build that into our base case growth plans.

Lawrence C. Fey: If they do come along alright, thanks, hakan, either fill in or add to those targets.

Lawrence C. Fey: But we wouldn't build that into our base case.

Speaker Change: Thank you Larry I appreciate that.

Speaker Change: Thank you one moment for our next question.

Lawrence C. Fey: Yeah.

Operator: Thank you, Larry. I appreciate that. Thank you. Please take a moment for our next question. Our next question comes from the line of Andrew Marok with Raymond James. Your line is now open. Hi, thanks for taking my questions. First one, maybe on Vegas.com, you mentioned some of the top line synergies that you've been able to begin implementing so far. But maybe, have you seen notable synergies or the opportunity for today for buyers of events on Vegas.com, where you're able to market to them back in their home market? Like if I'm from Detroit, and I'm visiting for a conference and buy a show ticket.

Lawrence C. Fey: Our next question comes from the line of Andrew <unk> with Raymond James Your line is now open.

Andrew Jordan Marok: Have you seen an uplift from being able to sell me a Tigers ticket when I get back to the office? Yeah, hey, Andrew. Your exact example is a really strong thesis under which we acquire the business, you know, and I think we're excited by the early signs we've seen there. We are certainly underway with that campaign. We believe it's a really, you know, strong opportunity for us around those who come to Vegas and go home and the ability to market them into the Vivid Seats brand that has all of that selection rewards tied to, you know, the home market that they're in. I think those campaigns have already been launched.

Andrew Jordan Marok: Hi, Thanks for taking my questions.

Speaker Change: First one maybe on biggest dotcom you've mentioned some of the topline synergies that you've been able to.

Andrew Jordan Marok: Begin your realization of so far but maybe have you seen notable synergies or the opportunity for to date for buyers of events on Vegas, Dot com, where youre able to market to them back in their home market like if I'm from Detroit and Im visiting for a comprehensive by a show of ticket have you seen uplift from being able to sell me a tigers ticket when I get back to Detroit.

Andrew: Yeah, Hey, Andrew.

Andrew Jordan Marok: Alright.

Andrew Jordan Marok: That example, isn't really strong thesis under which we acquired the business.

Andrew Jordan Marok: We're excited by the early signs we've seen there we are certainly underway and that campaign. We believe it's a really strong opportunity for us around those who come to Vegas and go home and the ability to.

Andrew Jordan Marok: Market them into the visit.

Andrew Jordan Marok: Brand that has all of that in our selection rewards tied to.

Stanley Chia: We're really encouraged by what we see. You know, given the kind of lower frequency of this industry in general, I think we still need some time to play out, but as we always talk about our repeat rates, you know, on a cohort basis, continue to trend, you know, as high as they've ever been. And I think we are really excited about the ability to, in fact, accelerate that through, you know, the Vegas.com synergies that we see on that side. Great, thank you. Maybe one more, if I could.

Andrew Jordan Marok: The whole market that there is I think those campaigns at launch we're really encouraged by what we see and I think given the.

Stanley Chia: Kind of lower frequency of this industry in general I think we still need some time to play out, but we always talk about our repeat rate on a cohort basis continue to trend.

Stanley Chia: As high as they've ever been and I think we are really excited about the ability of in fact accelerate that through the Vegas dot com synergies that we see on that asset.

Andrew Jordan Marok: Kind of on the breadth of your customer base, obviously, really strong indicators of demand, both for the industry and for you guys, in terms of order volumes and things like that, with AOS kind of continuing to creep up. You know, it's not new that we've heard concerns around discretionary budgets and things like that. I guess maybe speaking to the breadth of your customer base, is it still like the same large pool of customers who are maybe more willing to spend on more expensive events and experiences? Or is it maybe a smaller group of more dedicated buyers who you're really getting these benefits from? Thanks.

Speaker Change: Great. Thank you and maybe one more if I could kind of on the on the breadth of your customer base, obviously really strong indicators of demand.

Andrew Jordan Marok: On the industry and for you guys in terms of order volumes and things like that with AOS as kind of continuing to creep up.

Andrew Jordan Marok: It's not new that we've heard concerns around discretionary budgets and things like that I guess, maybe speaking to the breadth of your customer base is it <unk>.

Andrew Jordan Marok: Phil like the same large pool of customers, who are maybe more willing to spend on more expensive events and experiences or is it maybe a smaller group of more dedicated buyers who you are really getting these benefits from.

Lawrence C. Fey: Yeah, Andrew, I would say I don't, I don't think I've seen anything that was going to change when we looked in the past at the demographic profile of our customers. I think it's pretty reflective of what you would anticipate, right? Balanced across almost any way you'd place it.

Andrew Jordan Marok: Okay.

Speaker Change: Yes, Andrew I would say I don't think I've seen anything that would point to change when we looked in the past that the demographic profile of our customers I think.

Lawrence C. Fey: Pretty reflective of what you had anticipated rate balanced across almost any way that geographic.

Stanley Chia: Geographic, gender, income, age, obviously reflective of the fact that these events cost money, right? So there's going to be some skew towards affordability. But beyond that, it's been very broad-based across interests that are, almost by definition, quite broad. And nothing we've seen suggests, at the broad level, any weakening in consumer interest in attending these types of events, and going more precise than that, we haven't seen any meaningful shifts across those groups. Yeah, I will bring it back, Andrew, to almost what we were just talking about. I mean, there are two things, right?

Lawrence C. Fey: Gender income age.

Stanley Chia: We reflect.

Stanley Chia: These are not costs money.

Stanley Chia: Some skew towards affordability, but beyond that it is.

Stanley Chia: Its been very broad based across interest effect are by definition quite broad.

Stanley Chia: We have seen suggesting at a broad level.

Stanley Chia: Weakening in consumer interest in attending these types of events.

Stanley Chia: Going more precise than that haven't seen any meaningful shifts.

Stanley Chia: Our focus groups that will bring it back to Andrew just to almost what we what we were just talking about I mean, there's two things right one of the category and industry secular trends that we've always talked about I think we remain excited and all signs point to continued interest and frankly.

Stanley Chia: One, the category and industry secular trends that we've always talked about. I think we remain excited, and all signs point to continued interest. And frankly, as the demographics move into some of the newer generations who are coming into purchasing power, I think it's clear that this is a category that they will remain prioritized in their spend.

Stanley Chia: The demographics move into some of the newer generations, who are coming into purchasing power I think it's clear that this is a category that they will remain prioritize their spend and then on the <unk> side I think that's where our investments are there to really capture and retain customers regardless of which then.

Stanley Chia: And then on the Vivid Seat side, I think that's where our investments are there to really capture and retain customers, regardless of which demo, regardless of which bracket you're in. I think interest in the category remains strong and is shifting to perhaps even stronger as we move into those demos. And our platform continues to be built with the premise of engaging and retaining those users with Vivid Seats. I appreciate the detail, thank you.

Stanley Chia: Regardless of which bracket here and I think interest in the category remained strong as shifting perhaps stronger as we move into those data that our platform continues to be built with the premise of engaging and retaining those users.

Stanley Chia: Yes.

Stanley Chia: I appreciate the detail. Thank you.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Ralph Schackart with William Blair. Your line is now open. Good morning.

Speaker Change: Thank you one moment for our next question.

Ralph Edward Schackart: Our next question comes from the line of Ralph <unk> with William William Blair. Your line is now open.

Ralph Edward Schackart: Thanks for taking the question. Just on the macro environment, just curious, maybe what you're observing, you know, as we sit here today, as you progress through the year, and just a reminder, what's factored into the guidance for the macro? Maybe just to follow up, switching gears to Skybox Drive. You've been in beta here for a little while.

Ralph Edward Schackart: Good morning, Thanks for taking the question just on the macro environment, just curious maybe what youre observing you know as we sit here today as you progress through the year and just a reminder, what's factored into the guidance for the macro and maybe just a follow up switching gears to skybox drive you've been in beta here for a little while just maybe if you brought in.

Stanley Chia: Just maybe if you can brighten, update what you're hearing from the beta, and maybe thoughts longer term on the ability to monetize it on a longer term basis. Thank you. Hey Ralph, thanks for the question. Skybox Drive is also trending, you know, I think really well on track to launch later this year. We're always judicious with this, right?

Speaker Change: An update what you're hearing from from the beta and maybe thoughts longer term on the ability to monetize it on a longer term basis. Thank you.

Speaker Change: Yeah, Hey, Ralph type question.

Speaker Change: It's got about drive also trending I.

Speaker Change: I think really well on track to launch later this year.

Stanley Chia: I think this is a platform that, you know, sellers run the entirety of their business on. So I think we're making sure, again, that as we start bringing it to market, that it is able to really handle, you know, a critical component of how they run their business. I happily share, you know, when we look at the wait list and people that we have eager to come onto the platform, it's a triple-digit wait list and growing, right?

Stanley Chia: We're always judicious with this right I think this is a platform that seller Ron the entirety of their business. So I think we're making sure again that as we start bringing it to market that it is able to really handle.

Stanley Chia: A critical component of how they run their business.

Stanley Chia: Happily share you know when we look at the waitlist and people that we have.

Stanley Chia: Eager to come onto the platform as a triple digit waitlist and growing right.

Stanley Chia: So I think as our beta continues to grow in size, the number of people on the beta, the wait list continues to grow at an even accelerated clip. And as we've always said, you know, I think, you know, our guidance, you know, has zero incremental contribution from Skybox Drive. But if you look at the industry in terms of pricers that are out there, I don't think you'll find, you know, a pricer that is free of charge.

Stanley Chia: As our beta continues to grow outside of the people on the data. The wait list continues to grow at an even accelerated clip and as I've always said I think one our guidance.

Stanley Chia: It has zero incremental contribution from Skybox drive, but if you look at the industry in terms of prices that are out there I don't think youll find a price that is free.

Lawrence C. Fey: So I think should we decide at some point to monetize the product, I think it would wholly be within, you know, industry norms to do so. And then on the macro question. Yeah, I think we had previously articulated our views. I'm here to talk to you today about long-term industry growth, being, you know, call it in North America, high single digits to low double digits, coming off of a couple of years of really strong performance with industry growing well above those levels, we had built in a perspective of being on the lower end of that range, with that, you know, also including some acknowledgement that there's a, couple hundred basis points of headwinds with Taylor and Beyonce not being on the road in 2024.

Stanley Chia: Free of charge study should we decide at some point to monetize the product I think it was fully baked be within.

Lawrence C. Fey: Industry norms to do so.

Lawrence C. Fey: And then on the macro question.

Lawrence C. Fey: I think we had previously.

Lawrence C. Fey: Previously articulated.

Lawrence C. Fey: Our views on.

Lawrence C. Fey: Long term industry growth being.

Lawrence C. Fey: Call it.

Lawrence C. Fey: In North America high single digits to low double digits.

Lawrence C. Fey: Coming off of a couple of years of really strong performance with the industry growing well above those levels.

Lawrence C. Fey: We have built in a perspective of being on the lower end of that range.

Lawrence C. Fey: With that also excluding <unk>.

Lawrence C. Fey: Acknowledgment.

Lawrence C. Fey: <unk>.

Lawrence C. Fey: A couple hundred basis points of headwind with Taylor fiance, not being on the road in 2024. So nothing has meaningfully changed in that regard I think I'd call out if anything sports is trending a little bit.

Lawrence C. Fey: So nothing's meaningfully changed in that regard. But I think I'd call out that, if anything, sports is trending a little bit better than we would have expected given some of those favorable exogenous influences at the start of the year. And then, you know, if you can think about the... The calendar of concert timing, the headwinds that we are quoting on a full-year basis disproportionately hit in the first seven months of the year and alleviated a bit in the back out, and so I think you're swimming upstream a bit on the concert side right now, but I expect that to alleviate on the back out.

Lawrence C. Fey: Better than we would have expected given some of those favorable.

Lawrence C. Fey: <unk> influences to start the year.

Lawrence C. Fey: You can think about that.

Lawrence C. Fey: The calendar of concert timing.

Lawrence C. Fey: The headwinds that we are quoting on a full year basis disproportionately hit in the first seven months of the year and alleviate a bit in the back half.

Lawrence C. Fey: Here you are swimming in that you are swimming upstream a bit on the concert side right now, but I expect that to alleviate over the back end of the year.

Lawrence C. Fey: Great. Thanks, Dan. Thanks, Larry. Thank you. I am showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Speaker Change: Great. Thanks, Dan Thanks, Larry.

Speaker Change: Thank you.

Lawrence C. Fey: Hearing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program you may now disconnect.