Q2 2024 Vivid Seats Inc Earnings Call

August 6, 2024

Stanley Chia: Quarter with Great Revenue and Adjusted EBITDA Growth. In the second quarter, we executed with discipline, delivering great results while opportunistically leveraging our unique assets and capabilities.

And adjusted EBITDA growth.

Speaker Change: In the second quarter, we executed with discipline delivering great results, while opportunistically leveraging our unique assets and capabilities. These results are evidence of our differentiated offering dynamic model and our strong market position.

Speaker Change: We made progress this quarter across a number of key priorities, but to begin I'd like to touch on our financial highlights.

Stanley Chia: These results are evidence of our differentiated offering, dynamic model, and our strong market position. We made progress this quarter across a number of key priorities, but to begin, I'd like to touch on our financial highlights. In the second quarter, I'm proud to share that we delivered $198 million in revenues and $44 million in adjusted EBITDA, representing 20% year-over-year revenue growth and 42% year-over-year adjusted EBITDA growth. Larry will speak in more detail, but these results demonstrate our ability to drive strong growth, capture repeat orders, and generate strong unit profitability.

In the second quarter I'm proud to share that we delivered $198 million of revenues and 44 million of adjusted EBITDA, representing 20% year over year revenue growth and 42% year over year adjusted EBITDA growth.

Larry will speak in more detail, but these results demonstrate our ability to drive strong growth capture repeat orders and generate strong unit profitability.

Stanley Chia: After remarkable growth years in 2022 and 2023, live events remain a priority amongst consumer spending, as we continue to see a preference for experiences, while growth has moderated towards more historical norms. On the supply side, the industry has displayed a great breadth of events in 2024, with women's sports and soccer tournaments making a significant mark, while we lap an outlier year in 2023 that had an unusually high number of the most popular artists touring in the largest venue.

Larry: After a remarkable growth years in 2022, and 2023 live events remain a priority amongst consumer spending as we continue to see a preference towards experiences while growth has moderated towards more historical norms.

Larry: On the supply side the industry has displayed a great breadth of events in 2024 with women's sports and soccer tournament, making a significant mark while we lap an outlier year in 2023 that had an unusually high number of the most popular artists touring and the largest venues.

Stanley Chia: We expect year-over-year growth to accelerate in the fourth quarter once the industry has fully lapsed 2023's summer concert slate and once stadium shows go on sale for 2025. We continue to execute against our strategy and drive differentiation through our investments, which have been a source of our strength and are bearing fruit. Skybox Drive is in the last stage of its beta phase, and we are excited to prepare for its formal launch in the coming months.

Stanley Chia: This is another example of how we continue to innovate and build on our best-in-class product. Skybox is the ERP of choice for the majority of professional sellers, and Skybox Drive takes that powerful tool further by addressing another key seller need.

Stanley Chia: Technology-Driven Pricing. We look forward to onboarding sellers from our existing large installed base of sellers using Skybox. On the buyer side, we have focused on encouraging repeat behavior, which is a fundamental aspect of our broader strategy. With our industry-leading loyalty program and engagement initiatives, we continue to shift toward a higher mix of accretive repeat orders. These strategic efforts have proven successful, and midway into 2024, we are trending higher than the mix of repeat orders achieved in 2020.

Stanley Chia: Our priority remains building for the long term, and we have seen our loyal base of customers continue to reward us, pun intended, with stickier volume that yields greater profitability. Our investments in building our international platform and our acquisition of Vegas.com are also progressing nicely. We remain on track to launch internationally by the end of the year.

Stanley Chia: For Vegas.com, we are continuing to drive incremental orders through synergized inventory on Vegas.com from Vivid Seats. Additionally, our cross-sale campaigns are now fully underway. This has resulted in tens of thousands of customers being reached each month, combined with impressive email open rates of almost 50% and very accretive customer acquisition onto Vivid Seats in fans' home markets. We have also continued to invest in other channels and engagement vehicles as we continue to efficiently attract and retain buyers.

Stanley Chia: Game Center is a key mechanism that we employ to attract both existing and new customers to our app. As gamification continues to positively impact consumer behavior, we've seen users almost always browse or purchase tickets when playing. With over 340,000 customers now playing and almost no marketing dollars spent, Game Center is proving to be an extremely efficient channel to drive app downloads, app engagement, and ultimately a creative app order.

Stanley Chia: Even as we diversify our marketing channels and drive efficiencies and repeat orders, traditional performance channels remain an important part of new customer acquisition. On that note, we are excited to announce that our board recently appointed Adam Stewart as a director, to be effective upon board composition changes expected to occur in November in connection with our transition from being a controlled company under NASDAQ rules. Adam will join our board with extensive media and entertainment experience at leading brands, including almost two decades at Google.

Stanley Chia: Currently, he serves as Vice President of Consumer, Government, and Entertainment at Google, where he oversees advertising partnerships and integrated solutions across YouTube, Google.com, and mobile. As an expert in performance marketing, a seasoned technology leader, and an experienced board member, we look forward to benefiting from Adam's insight and guidance as we continue our focus on building shareholder value and executing our long-term growth strategy. Upon the effectiveness of Adam's appointment, we will have a majority independent.

Stanley Chia: Next, I'm pleased to share that our balance sheet now allows additional strategic flexibility following our opportunistic June refinancing. We sized our existing term loan by $125 million while simultaneously lowering our interest rate on the entire loan.

Speaker Change: Balance sheet now allows us additional strategic flexibility following our opportunistic June refinancing, we upsized, our existing term loan by $125 million, while simultaneously lowering our interest rate on the entire loan we.

Larry: We are excited to have this incremental cash available to deploy with the financial discipline that we've always shown towards our existing pillars for capital deployment, share repurchases, and strategic M&A. We continue to evaluate opportunities for both with a keen focus on increasing shareholder value. In summary, it was a solid quarter where we drove very strong revenue and even stronger adjusted EBITDA growth and furthered our strategic objectives. In an industry benefiting from long-term secular growth, we continue to expect our differentiated offering and dynamic model to deliver double-digit growth. With that, I will turn it over to Larry for a more detailed review. Thanks, Dan.

Speaker Change: We are excited to have this incremental cash available to deploy with the financial discipline that we've always shown towards our existing pillars for capital deployment share repurchases and strategic M&A, we continue to evaluate opportunities for both with a keen focus on increasing shareholder value.

Speaker Change: In summary, it was a solid quarter, where we drove very strong revenue and even stronger adjusted EBITDA growth and further our strategic objectives.

Speaker Change: And in industry benefiting from long term secular growth, we continue to expect our differentiated offering and dynamic model will deliver a double digit growth CAGR.

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

Larry: Thanks, Dan.

Larry: We continue to deliver strong financial results in the second quarter, executing dynamically and with discipline. In the second quarter of 2024, we generated approximately $1 billion in marketplace GOB, which represents a 5% year-over-year increase. GOV growth was fueled by an 18% increase in total marketplace orders, partially offset by a lower average order size of $322 versus $363 in the second quarter of 2020.

Larry: We continued to deliver strong financial results in the second quarter executing dynamically and with discipline.

Larry: The AOS declines are a result of the mixed impact from our acquisitions, coupled with comparing against the abnormally strong AOS from the summer 2023 concert slate. As Stan noted, we continue to see consumer prioritization of live events with supply normalizing to historical K-grade. We delivered robust revenue and adjusted EBITDA growth by acting dynamically in a competitive environment. We delivered $198 million of revenue in the second quarter.

Larry: 20% year-over-year increase, driven by a hired staff. Our take rate was 17.0% in the second quarter compared to 14.6% in the second quarter of 2023. We delivered $44 million of adjusted EBITDA in the second quarter of 2024, a 42% year-over-year increase, along with a 22% adjusted EBITDA margin. We consistently adjust across multiple levers to find the proper balance of volume and profitability across different landscapes and are pleased by our continued ability to deliver robust revenue and adjusted EBITDA growth. Turning to cash on our balance sheet, we deployed $16 million of cash on share purchases in the second quarter and added $125 million of cash through our June refinancing.

Larry: Our cash balance now stands at $234 million, and we continue to have a healthy balance sheet with 1.0 times net leverage based on 2024 adjusted EBITDA at the midpoint of our guidance. We continue to expect strong cash generation in 2024 and beyond, and we'll continually seek accretive opportunities to deploy our balance sheet. Next, I'll touch briefly on StockCom. During the quarter, Hoya Topko, the private equity-backed entity that holds our Class B shares, used its own funds in the second quarter to redeem all of its outstanding profit interests and phantom units that were held by employees of Vivid Seats. In previous periods, we have been recognizing stock compensation expense for these interests. Upon the redemption transaction, there was a one-time $8 million stock compensation charge.

Larry: Going forward, stock comp expense related to these interests will, Lastly, on guidance, we now expect 2024 marketplace GOV to be in the range of $4.0 to $4.3 billion versus $4.2 to $4.5 billion prior, and 2024 revenues to be in the range of $810 to $830 million versus $810 to $840 million prior. We continue to expect 2024 adjusted EBITDA in the range of $160 to $170 million. We will continue to act with agility as the environment evolves and position our business for long-term success.

Larry: Thank you. Thanks, Larry. To wrap up, we delivered another strong quarter. With our long-term mindset, we continue to advance our strategic objectives that foster lasting stickiness for both buyers and sellers. Our team remains agile as we continue to position our business to win in any environment. Between favorable tailwinds for live events, our differentiated model, and the strategic flexibility that our robust cash flow affords, I'm confident that we can continue to drive compounding double-digit growth and value to shareholders.

Larry: With that, operator, let's open it up for questions. Thank you. At this time, we will now conduct the question and answer session. To ask a question, you need to press star 1 1 on your telephone and wait for your name to be announced.

Operator: To withdraw your question, please press star 1 1 again. Please limit to two questions per person. Stand by while we compile the Q&A roster. Our first question comes from Tom White of D.A. Davidson.

Tom White: Your line is now open. Great. Good morning.

Stanley Chia: Thanks for taking my questions. Maybe just first off, could you maybe just give a little more color on kind of the slightly degraded top-line outlook for the rest of the year? Yeah, you commented that, you know, consumer spending was resilient on concerts and stuff. I'm just curious if there's anything in the macro that you guys are seeing that's causing the change, or maybe it's something on the competitive front.

Stanley Chia: Thanks. Hey Tom, thanks for the question. Yeah, look, you know, I think we continue to see strength and resiliency among the consumer as it pertains to the category. And I think when we look at the forward look, you know, I think on the supply side, I think it's just been a little bit of a softer year, especially as we compare it to a year where you had some of the largest artists touring and some of the largest venues.

Stanley Chia: And, you know, this year, as we look at the remainder of the year, we've really just got, you know, folks really prioritizing amphitheaters and arenas, which we've historically seen as lower attendance, lower price points, you know, and I think just in the past week, we saw Aerosmith cancel.

Stanley Chia: So I think just being prudent with all of the information we have is how we've looked at the year. But, you know, I think we continue to see lots of strength on the consumer side. And if you look at the current quarter, you know, great performance and really our highest order volume number that we've ever had throughout the entirety of the business. So a lot of strength, just some prudence as we look at the slate of supply coming up. And Tom, I'd add two things in support of what Stan said.

Stanley Chia: We've seen really nice year-over-year strength in sports, which I think speaks to it not being a consumer but perhaps a supply contrast on the concert side of things. And then the second piece, I would say, you know, we spoke in the last couple quarters around competitive intensity, and we're certainly seeing that persist. And yeah, I think that it is a presumption that that continues, but in the past, we've seen ebbs and flows, so we'll hope for folks to... Insert Additional Discipline moving forward, but we're not. Got it. Thank you for that.

Larry: Yeah.

Larry: Certainly seeing that persist.

Larry:

Larry: And I think embedded as a presumption that that continues.

Larry: But in the past we've seen we've seen as we've seen flows.

Larry: We'll hope for folks.

Larry: And sorry, additional discipline moving forward, but we're not counting on it.

Tom White: Maybe just a quick follow-up on the competitive landscape. And I guess, you know, Stan's comments about performance marketing were interesting. Just curious, maybe just on the performance marketing channel specifically, curious whether you could, how you could characterize kind of what you're seeing there, you know, one of your competitors seemingly, maybe, isn't going to come to the public markets maybe as soon as some had previously thought. Curious whether that, you know, means that there's any change maybe in kind of some of the intensity you're seeing on key performance marketing channels. Thanks. Hey Tom.

Speaker Change: Got it. Thank you for that maybe just a quick follow up on the competitive.

Stan: The landscape and I guess Stan's comments about performance marketing I thought were.

Stan: Were interesting.

Speaker Change: Just curious maybe just on the performance marketing channels, specifically curious whether you could.

Speaker Change: Characterize kind of what you're seeing there you know one of your competitors seemingly maybe.

Speaker Change: Isn't going to come to the public markets, maybe as soon as some had previously so I'm curious.

Speaker Change: Whether that.

Speaker Change: It means that.

Speaker Change: Theres any change maybe in the in kind of somebody intensity, you're seeing on on key performance marketing channels. Thanks.

Speaker Change: Yeah.

Stanley Chia: Yeah. Look, I think, you know, we've always looked at performance marketing as a channel that, you know, I think, as Larry said, ebbs and flows. I think, you know, when we look at ourselves as a differentiator, as you see, I think we've got lots of levers to really drive and win customers. And, you know, I'd say our perspective on the long-term outlook with our rewards program, our differentiated capabilities, the multiple brands and platforms that we now offer, along with gamification that keeps you engaged in the platform, is that we are just really focused on winning customers that And I think we certainly see others focus more on buying temporary volumes. Got it.

Speaker Change: Okay.

Larry: We've always looked at performance marketing as well as a channel that you know I think Larry you said ebbs and flows I think when we look at ourselves as a differentiator do you see I think we've got lots of lever is really to drive and I think when customers.

Tom White: Thank you. Thank you. One moment for our next question. Our next question comes from Ralph Schackart of William Blair. Your line is now open.

Ralph Schackart: Right, two questions if I could. Stan, compared to Mark's you talked about, or maybe it was Larry, supply normalizing to historic levels, was that something that, you know, sort of adjusted intra-quarter? I know you talked about amphitheaters, but just any more color you could add there?

Stanley Chia: And just on the acquisition, I mean, the trends sound, you know, strong and solid with some of the metrics you report. I'm just kind of curious if you could sort of frame how that acquisition is progressing according to your plan, both just from the operational aspect and your ability to sort of leverage that relationship and to drive customers when those people go back to their hometowns. Thanks. Yeah, so, Ralph, that question is on me and how I've been performing. Oh, that's right.

Stanley Chia: Sorry, Ralph, we were just making sure we had the question right. Yeah, on the acquisition performance, you know, I think, as you heard, we're really excited about the progress that we've made there. You know, I think one of the biggest elements of that is being able to leverage all of the customers that we acquired through that and then bring them into the multiple other platforms and markets that we're active in through our national Vivid Seats brand.

Stanley Chia: And we've made, I think, great progress there with, I think, as you heard in the prepared remarks, our cross-sell campaign, really driving a lot of efficacy as those consumers move back into the home market. So, you know, I look at Vegas as a profitable customer acquisition vehicle for the national Vivid Seats brand, and we're well underway there. As you look at, you know, our Wave Dash property in Japan, too, strong integration across the Vivid Seats stack, driving, you know, cross-border travel, in particular during the baseball season with a lot of fans, you know, clearly in Japan for the Dodgers and of Shohei Otani in particular, the Dodgers being a Vivid Seats partner where we are their official marketplace as well.

Larry: So I think we've seen a lot of great results and continue to be excited about how we can continue to drive synergy and leverage across. And Ralph, on the first question about sort of trajectories across supply, I would say as we headed into the year, you kind of knew what the lineup was.

Larry: You had a sense for the shift from stadiums down to amphitheaters. But I think as it's played out, you know, the... top of the card, which is already soft, took some unexpected hits, right?

Larry: You had Neil Young Cancel and Jennifer Lopez Cancel, both of those I've characterized for pretty different reasons. Now you have Aerosmith Canceling, Vocal Chord held for Steven Tyler, so you sort of already had a soft top of the card. I think for idiosyncratic reasons, it's gotten a bit softer, which has influenced... kind of the outlook until we get to the next. And this is kind of the first nine months we live on this year's calendar, and then in Q4 we shift to next year's calendar. And based on all the commentary we're hearing and seeing, we would expect that we get a little more pep in the steps.

Curtis Nagle: Okay, thanks, Dan. Thanks, Larry. One moment for our next question. Our next question comes from Curtis Nagle of B of A. Your line is now open.

Stanley Chia: Great, thanks very much for taking the questions. First one, Stanley, could we talk a little bit more about driving GOV, much higher take rates, you know, what's behind that, you know, and just, you know, overall profitability, which came in pretty nicely for the quarter. Yeah, Curtis.

Larry: Yeah, I think the question in many ways typifies the thought process where it's always a balance between Driving Volume and Driving Profitability. And when we talk about some of the ebbs and flows, we've certainly seen competitors go through phases where they seem to prioritize volume at the expense of profitability, some more consistently than others, and at the moment, I think we're seeing more competitors prioritize top. So, somewhat in reaction to that competitive dynamic where we try to stick to our unit economic discipline.

Larry: I'm going to go through three components I point to in the year-over-year take rate improvement. One part is you talked about some of the accretive benefit from the acquisition. Second part, you know, last year we talked about, you know, the really high average order size on a couple of the big name tours. We were taking a lower take rate but maximizing dollars strategy. So last year's take rate was artificially low.

Curtis Nagle: And then we focused on RTA grades this year and said, you know, in an era where folks are chasing unprofitable volume, they can do that; we'll protect unit economics. And so the three of those summed up to, I think, pretty meaningfully improved take rates both year-over-year and relative to expectations, and those take rates support sound economics. Okay, that makes sense. And then, maybe just kind of follow up on that last question. Any early reads on the concert season for 25-year-olds?

Speaker Change: Any early reads on the conscious users or 20 fives.

Speaker Change: Whats given that confidence in acceleration support you as those ticket sales stuff and start to hit the market.

Stanley Chia: You know, what's given that confidence and acceleration for 4Q as those ticket sales start to hit the market? Thank you, Curtis. I think we're certainly, you know... Wish we had the perfect crystal ball to be able to have precision on that. You know, I think if we look at industry commentary around 25, we follow, I think, the excitement that we've heard around perhaps next year being a stadium year versus the amphitheater and arena year that it is this year. And certainly, I think it sounds like there are more stadiums booked for next year than there were last year. Right. So 25, I think, being potentially a larger stadium year than 23.

Speaker Change: Okay great.

Speaker Change: We're certainly you know.

Speaker Change: Wish we had the perfect crystal ball to be able to have precision on that you know I think as we look at industry commentary around 25.

Speaker Change: We follow I think the excitement that we've heard them around perhaps next year having a.

Speaker Change: Being a stadium year versus the amphitheater and arena year that it is this year.

Speaker Change: And certainly I think it sounded like there are more stadiums booked for next year and then there was last year right. So 25, I think being potentially a larger stadium year. Then 23. So I think as we look at those publicly available industry components. I think that gives US you know I think lots of optimism that I think that supply sort of.

Curtis Nagle: So I think as we look at those publicly available industry components, I think that gives us, you know, lots of optimism that, you know, I think that supply sort of digestion or normalization that we're feeling this year, I think should move back into what we see as normalcy next. Got it. Okay. Thanks very much.

Speaker Change: Digestion or normalization that we're feeling this year I think should move back into what we see as normalcy next year.

Speaker Change: Got it okay. Thanks very much.

Speaker Change: Thank you.

Ryan Sigdahl: Thank you. One moment for our next question, which comes from Ryan Sigdahl of Craig Hallam Capital Group. Your line is now open. Hey, good morning, Larry, and Stan.

Speaker Change: Our next question.

Stanley Chia: Nice quarter, nice execution, guys. I want to ask about international, just any update you can provide. I know you said on track, but if you're willing to comment on specific regions and then how you think about kind of as you near that launch date for customer acquisition, balancing the cost side versus ramping the market. Yeah, hey, Ryan.

Stanley Chia: Thanks for the question. You know, I think we remain on track, I think, certainly for the end of the year to launch our international platform and continue to make, you know, I think pretty good progress as we build out the components necessary. I think what we continue to talk about is, I would expect, you know, I think our investments to be fundamentally on a platform and highly leverageable basis. And as we continue, as we start to launch into, I would say, the markets that we have prioritized, I would expect, you know, volumes to flow through, you know, in the medium term to be similar to how we look at contribution broadly.

Stanley Chia: And so I think not a lot of fixed expenses as we move into the markets beyond the platform investments, and we remain excited about launching those this year. And then just on capital allocation, and good terms on the new ad on debt. But is there plans in the near term to leverage and utilize kind of the increased cash balance? Or is it really flexibility for the key priorities you guys have highlighted and executed on over the past year? Yeah, yeah, thanks.

Stanley Chia: Yeah, I think what we've always put forward is our primary vehicles for Capital Deployment are Strategic M&A that is idiosyncratic, and we try to bring a high bar to that, but you want to have the flexibility to strike when the opportunities do arise, and then buy ourselves back when the price is right. So we have the share purchase authorization in place. We've continued to execute against that in Q2. However, the shares have become more attractive subsequently. So those are the pillars.

Stanley Chia: They remain the pillars. We'll continue to try to find the right balance between those two in light of opportunities in the pipeline and dynamics in the shares. But given how profitable we are, given our cash generation, I do think those are the main pillars, right? We are able to fund our international and our other projects comfortably out of our existing P&L and cash balance. So, you know, we're not starving, and are an operational, uh, animal by any stretch.

Ryan Sigdahl: And even if we do deploy that cache, I feel like we're still very comfortably levered relative to our Capsule Profile, four times gross leverage. Great. Thanks, guys. Good luck.

Cameron Mansson Perrone: Thank you. Our next question comes from Cameron Mansson Perrone of Morgan Stanley. Your line is now open. Thanks. Good morning, guys.

Stanley Chia: Thanks for taking the questions. First, just to follow up on the guidance, you know, what's allowing you guys to execute against the, you know, I know it's just a modestly lower growth outlook, but the Adjusted Yield of Doug Guide for the Year Unchanged, maybe you could talk about kind of what's allowing you to execute there despite the modestly lower growth outlook. And then any help in the quarter in terms of unpacking, you know, on an organic basis, what growth looks like if we kind of strip out the Vegas and wave dash benefits? Hey Cameron, it's Stan.

Stanley Chia: Let me take the first part and then Larry can certainly give you some thoughts on how to think about organics. Look, I think we've continued to talk about, you know, the investments that we've made over the past years to drive repeat behavior, engagement, stickiness to the platform, and that, fundamentally, a repeat user for us is highly profitable and highly, multiples more profitable than our first order with a user, right?

Stanley Chia: And I think the levers that we have to really drive that I think are what give us, you know, I think the ability to perform like we did in Q2 and continue to drive leverage and profitability through our model. If you've heard, I think we continue to track higher on repeat mix as a percent of our business. And, you know, that mix is, I think, a very powerful lever of profitability into the business.

Larry: And when you look at the other vehicles, whether it's our gamification engine, driving app usage, and app downloads, I think all of those are strong proponents of what I think gives us lots of confidence to drive just strong stickiness and, therefore, profitability into our platform and ecosystem. And on the organic trends, I think I picked up on a theme where we have knowingly walked away from some of what we're considering unprofitable volume in the current environment. In light of that shifting economy, you should think of organic GOV being down a bit year over year, but organic revenue being up. Call it Love, Single Digits, year over year.

Cameron Mansson Perrone: Got it. Helpful. Thanks, guys. One moment for our next question. Your next question comes from Thomas Forte of Maxim Group. Your line is now open.

Thomas Forte: Great, thanks. So congrats on the quarter. One question, one follow-up. I've been getting a lot of questions from investors on your first party ticket strategy. You have that college basketball tournaments that you've talked about.

Stanley Chia: Can you talk about your first party ticket strategy and how that may affect your future sales and profits? Thanks for your questions. Yeah, I think one of the other components that we've been excited about with our Vegas.com acquisition is it certainly gave us new, you know, I think capabilities as it pertains to integrating with venues on the front end, right? That was that where Vegas's inventory primarily came from, directly from the venue to the box office.

Speaker Change: Okay.

Speaker Change: And how that may affect your future sales and profits.

Speaker Change: Hey, Tom Thanks for the question, Yeah, I think one of the other components that we've been excited about with our Vegas Dot Com acquisition is it certainly gave us new.

Speaker Change: [noise] capabilities as it pertains to integrating with venues.

Speaker Change: On the front end right that was that is where our biggest inventory primarily came from us directly from the vagaries of box offices.

Stanley Chia: You know, as we've looked at opportunities, AEG and AXS have always been really strong partners for us. And with them, we were able to craft, I think, a very unique model for the CBT tournament, the college basketball tournament that will premiere in April. I think that is a new model where we are able to be the official ticketing partner overall of the event with the capabilities that we have, and we'll look to see how that, Shades of Noir. And then, for my follow-up, can you talk about women's sports such as WNBA and soccer and the progress on potentially becoming a fourth pillar?

Speaker Change: We've.

Speaker Change: Looked at opportunities AEG and access as always have always been really strong partners for us and with them. We were able to craft I think a very unique model and the CVC tournament. The college basketball tournament that will premiere in April I think that is a new model, where we are able to be the official ticketing partner over.

Speaker Change: For all of the event with the capabilities that we have and we will look to see how that.

Speaker Change: Shakes out as we get into it but we're certainly bullish on the prospects we liked the model and should we find.

Speaker Change: Step there as in everything we do we will look certainly for opportunities to rapidly scale that model.

Speaker Change: And then for my follow up can you talk about women's sports, such as WNBA and soccer and the progress on potentially becoming the fourth pillar.

Stanley Chia: Yeah, I think this year's been really nice. I think I'll start with overall, you know, sports here, right, where we've seen lots of new categories, you know, women's sports from the NCAA tournaments, and now the WNBA, I think with, you know, lots of really wonderful interest from consumers and great new stars, I think driving the new generation, we've just continued to see really strong strength there. And so we're excited with the growth in the category and some potential, like you said, new entrance to drive, you know, longer term sustainable growth in the category. How about soccer? Yeah, I can take soccer.

Speaker Change: Yeah, I think this year has been a really nice I think I'll start with overall, you know sports here right, where we've seen lots of new categories.

Speaker Change: Women's sports from the Ncw tournament and now the WNBA I think with.

Speaker Change: Lots of really wonderful interest from consumers and great New stars I think driving the new generation. We've just continued to see really strong strength there and so we're excited with the growth in the category and some potential like you said, new entrants to drive longer term sustainable growth in the.

Speaker Change: Laurie.

Laurie: How 'bout soccer.

Speaker Change: Yeah, I can take soccer.

Larry: A phenomenal year. I think it's been a combination of secular growth, the Messi effect, and then we had the Copa America, which is a once every four-year tournament, all combining to be very, very significant year-over-year soccer GOV growth approaching triple digits. As you think about enrolling next year, typically, you say, well, you have to lap the Copa America effect, but there are meaningful international tournaments in each of 2025, and then, perhaps most exciting, the World Cup is being held in North America in 2026.

Speaker Change: Phenomenal year I think it's been a combination of.

Laurie: Secular growth domestically effects and then we had Copa America.

Speaker Change: Which is a once every four year tournament.

Speaker Change: All combining to be very very significant year over year soccer GOP growth right.

Speaker Change: Approaching a triple videos.

Speaker Change: As you think about that rolling into next year typically you would say well you have to lap the Copa America effect, but there are meaningful.

Speaker Change: International tournaments in each of 2025, and then perhaps most of the trading and the World Cup.

Speaker Change: Held in North America in 2026.

Thomas Forte: So, assuming the secular trends hold and Metsi stays healthy, I think we're on track for a nice soccer trajectory for the next couple of years. Great. Thanks, Dan.

Speaker Change: So assuming the secular trends holdings and metric stays healthy I think where we are on track for a nice soccer trajectory for the next couple of years.

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

Speaker Change: Thank you.

Dan Kurnos: Thanks, Larry. Thank you. Our next question comes from Dan Kurnos of The Benchmark Company. Your line is now open. Yeah, thanks. Good morning.

Speaker Change: Our next question comes from Dan Carnose of the Benchmark Company. Your line is now open.

Stanley Chia: Stan, can we just double-click on a little bit more granularity around the loyalty program and maybe the consumer in general, if there's any change in velocity of ticket sales? And did I hear you say that your customer acquisition cost was down for loyalty, like you were getting leverage on that line? Yeah, hey, Dan, thanks for the question.

Dan Carnose: Yes, thanks, good morning.

Dan Carnose: <unk> can we just double click on a little bit more granularity around the loyalty program and maybe the consumer in general if there's any change.

Speaker Change: Velocity of ticket sales and did I hear you say that your customer acquisition cost was down for loyalty like you were getting leverage on that line.

Stanley Chia: Yeah, I think you look, I think we're becoming, you know, as the program continues to evolve, I would say, we continue to get smarter around how to really target and find the most loyal users and drive, you know, call it, the highest repeat from the most loyal users and continue to see that benefit ripple through. And as you imagine, you know, I think as you drive that, certainly on a profitability basis, as you mix into those orders, that is what drives a lot of, I would say, leverage in our profile.

Speaker Change: Yeah, Hey, Dan. Thanks for the question Yeah, I think it was I think we're becoming.

Speaker Change: As the program continues to evolve I would say, we continue to get smarter around how to really target.

Dan Carnose: And find the most loyal users and drive you know call. It the highest repeat from the most loyal users and continue to see that benefit ripple through and as you imagine I think as you drive that certainly on a.

Speaker Change: Profitability basis, as you mix into those orders that is what drives a lot of I would say leverage in our profile and so I think we continue to have that be a high level of focus for us to find them and drive.

Speaker Change: <unk> value and target those repeat users and I think thats, what youre seeing in terms of what we're talking about and certainly in terms of the financial results as well.

Stanley Chia: And so I think we continue to have that be a high level of focus for us to find and drive value and target those repeat users. And I think that's what you're seeing, you know, in terms of what we're talking about and certainly in terms of the financial results. And speaking of drive, I mean, you talked about it with Skybox, and I was just curious about, A, if we are assuming anything this year from a monetization perspective, how you're going to test that? I know you're in beta, but you know, do you bring it to market to everyone all at once?

Speaker Change: And speaking of drive I mean, you've talked about it with skybox I'm just curious on a.

Speaker Change: If we are assuming anything this year from a monetization perspective, how youre going to test that I know you're in beta, but do you bring it to market to everyone. All at once just any incremental thoughts on how we should expect that to kind of rollout from here.

Stanley Chia: Just any incremental thoughts on how we should expect that to kind of roll out from here? Yeah, you know, I think the beta has, I would say we've more than tripled the number of users on the beta since we started. And so I think, as we said, you know, in the prepared remarks, we're pretty close to officially launching that. And as with every launch, you know, I think we will temper, I think, rolling that out with velocity as well as stability. We certainly have, you know, a wait list of users in the hundreds.

Speaker Change: Yeah, I think the beta is.

Stanley Chia: And so we are excited, certainly, about the reception and the demand that we've seen. And we'll certainly talk about it more once we officially launch. But you know, in terms of monetization, it's not included in any of the numbers in our forward-looking guide.

Dan Kurnos: But certainly, if that changes, we will be sure to update everybody. Perfect. Thank you, Stan.

Andrew Marok: Thank you. Our next question comes from Andrew Marok of Raymond James. Your line is now open. Thanks for taking my questions. Maybe one on sports.

Larry: So some good commentary earlier around the incrementality of things like women's sports and some of the soccer events coming online. But with double-digit growth this quarter for the first time in over a year, is there anything else to call out, perhaps on pricing dynamics or taking order share? Or is it really just a result of some of that supply incrementality? Yeah, I would point to more of the dichotomy where you get sports with a meaningful number of tail ends across, more supply, better supply in soccer, women's sports, some good match-ups, and respectable series in the NBA.

Andrew Marok: Maybe one more quick one, if I could, on the resale business. You know, I know it's not necessarily a full strategic focus, but I guess, so what are some of the drivers behind the decline in growth rate and gross margin in 2Q? And maybe how should we think about this business's trends in the context of the 24 guide? Thank you.

Larry: So, yeah, I think there's always some idiosyncratic event mix within that business, and probably reflective of some of the comments around the concert supply side being a little bit less than you would have dreamed of coming into the year. You know, that kind of flows through on the resale positions that are in that category as well. We had a really wonderful dynamic in concerts in particular last year, and so yeah, a couple pockets of softness this year on the supply side, as you saw Mark. I think we've all deflated a bit from pretty robust levels, but still pretty pleased with where they shook out this year.

Maria Ripps: And so while we'll certainly aspire to get back to last year's margin, I would say this year's result is fairly consistent with what we would consider steady state. Much appreciated. Thank you. Thank you. Our next question comes from Maria Ripps of Canaccord. Your line is now open. Great. Good morning.

Stanley Chia: Thanks for taking my questions. So if we assume that the U.S. is entering a period of economic softness that sort of impacts demand for life events, could you maybe talk about your willingness or ability to lean into promotions to try to drive incremental demand and any thoughts on potential maybe trade-offs between margins and growth in such an environment? Hey Maria, thanks for the question.

Stanley Chia: You know, I think maybe a two-part answer for you. You know, I think, you know, we're certainly always watching, I think, what's happening, you know, on the consumer front. And, you know, as we almost kicked off the call, I echo first that we continue to see lots of consumer resiliency as it pertains to this category, and I think that's evidenced by our highest order number, you know, ever, I think, in the quarter.

Stanley Chia: As it pertains to promotions, you know, I mean, I think about two things for us, right? One, I think we always test into vehicles that we find to be efficient LTV drivers from an acquisition perspective, and promotions are certainly a component of that.

Maria Ripps: In addition to that, you know, we have our loyalty program, which continues to work really well, which, you know, you might almost think of as a permanent promotion that is always there, that is continuing to yield the right behavior and the right economics for us. So, you know, I think as we look at those two components, and, you know, I think our proven discipline to be thoughtful around how we invest to drive long-term users, I think that's going to guide certainly how we look at, you know, I think customer acquisition going forward as well. Great Thank you, Stan.

Speaker Change: We look at them you know I think customer acquisition going forward as well.

Stanley Chia: And then just following up on international expansion, any thoughts maybe you can share on how investors should be thinking about any potential contribution to revenue next year from newer markets? Yeah, I think at this point, as we're still in the College Development and Learning Phase. I think our view is that we would expect there to be some following contribution. And putting precision around that, probably still a little premature, but I think we'd expect it to be a, you know, measurable tailwind to GOV.

Speaker Change: Great. Thank you Stan and then just following up on international expansion any thoughts maybe you can share on how investors should be thinking about any potential contribution to revenue next year from newer markets.

Speaker Change: Yes, I think.

Speaker Change: At this point because we're still in.

Speaker Change: Call It development and learning phase.

Speaker Change: I think our view is that what you would expect there to be some.

Speaker Change: Volume contribution.

Speaker Change: Putting precision around that probably still a little premature but thank.

Speaker Change: We would expect it to be.

Speaker Change: Measurable.

Speaker Change: And to <unk>.

Speaker Change: Uh huh.

Speaker Change: I would expect roughly ratable flow through to revenue.

Stanley Chia: I would expect roughly a ratable flow through to revenue. You know, we've generally been in the view that take rates are a little bit higher internationally than they are here, but, you know, a modest enough difference that I'd probably... Bill Clinton.

Speaker Change: Generally been of the view that.

Speaker Change: Take rates are a little bit higher internationally than they are here.

Speaker Change: But.

Speaker Change: A modest enough difference that I, probably wouldn't build that.

Speaker Change: <unk> case around that the accretion of the volume levels that we'll see in the near term.

Speaker Change: And I think the big variable DNC flowed that through the P&L as we're trying to build that business to scale.

Speaker Change: Touched on having the platform investments baked into the numbers this year.

Speaker Change: Believes there'll be.

Jason Bazinet: Certainly, any meaningful incremental fixed expense, there'll be more shifts in the nature of that investment, but decisions will need to get made in real time around incremental contributions to try to build scale. I think for now, we're sort of thinking you'll try to. Be Contribution, March in Neutral, get as much volume as that paradigm will enable. Thank you. Our next question comes from Jason Bazinet of Citi. Your line is now open. Thanks. I just want to go back to the cancellation topic.

Speaker Change: Certainly any meaningful incremental fixed expense and it will be more of a shift in the nature of that.

Speaker Change: <unk>, but decisions will need to get made in real time around incremental contributions. He tried to build scale I think for now where we're sort of thinking youll try to speak.

Speaker Change: Fee contribution margin neutral.

Speaker Change: And get as much volume at that paradigm will enable in that first year.

Speaker Change: Got it that's very helpful. Thank you both.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Jason Bazinet of.

Citi: Citi. Your line is now open.

Jason Bazinet: Thanks, I just wanted to go back to the cancellation topic.

Jason Bazinet: I guess a two part question. In your footnotes, it looks like cancellations are running sort of 2x year to date what they were a year ago. And my first question is, would you describe the last year as a very low cancellation rate, and now we're just back to normal? Or is this above average?

Jason Bazinet: I guess, a two part question in your in the footnotes. It looks like cancellations are running sort of two X year to date, what they were a year ago.

Larry: And then second, I just want to confirm that you guys don't think that there's anything systemic across these cancelled acts, that these are all sort of just one offs? Is that the right interpretation of what's happened so far this year? And on the cancel rate, that's actually predominantly driven by the impact of Vegas, which has a different cancellation and prevalence rates that you can see riders making use of the federal highway at feat, slashing gauges that they have on their reports.

Speaker Change: My first question is would you describe the last year has a very low cancellation rate and now we're just back to normal or is this above above average and then second I. Just wanted to confirm you guys don't think that Theres anything.

Speaker Change: <unk> across these canceled backs that these are all sort of just one offs is that is that the right interpretation of what's happened so far this year. Thanks.

Jason: Jason on the on the cancel rate.

Speaker Change: Actually.

Speaker Change: Predominantly driven by.

Speaker Change: The impact of Vegas, which has a different cancellation.

Speaker Change: Set of terms bancor vivid interest which resolved okay.

Speaker Change: Net that out I'd say, it's fairly consistent year over year, maybe up a little bit but closer to closer to flat.

Speaker Change: The reported number would make you think.

Speaker Change: Let me go through the camp that we thought we certainly.

Larry: And then in 2001, those trips were the peak, no now it's April, July after that, April, July when the state heard and saw the speculation, right? I'm a big fan of the idea of tours running into issues because there's actually softening consumer demand, or was it something idiosyncratic and specific to those tours. And I think we've generally been of the belief that it's the latter. The most extreme of that is Aerosmith, kind of vocal issues for Stephen Tyler, I think, pretty safely detached from underlying economics.

Speaker Change: Heard and thought of speculation right are these.

Speaker Change: My tours running into issues, because there's actually softening consumer demand or was it something.

Speaker Change: Something idiosyncratic and specific to those stores and I think we've generally been of the belief that it's the latter.

Speaker Change: Both extreme of that is you know aerosmith, what's been kind of vocal issues for Steven Tyler I think pretty safely detached from underlying economics.

Speaker Change: I think there is.

Jason Bazinet: There is probably a lot out there on the sequence of developments on the Jennifer Lopez tour, but I think the general perspective is that that was more of a marketing execution issue than anything. The Price Point Set, the type of music that was advertised, and when you just come out of the gate without the right momentum, it's hard to get it back on track. Probably more on the supply side than on the demand side. That's great. Thank you. Thank you. This concludes the question and answer session. Thank you for your participation in today's event. This does conclude the program. You may now disconnect.

Speaker Change: Probably a lot out there on the sequence of developments on the Jennifer Lopez tour, but I think the general perspective is that that was more a marketing execution issue than anything.

Speaker Change: The price points that the type of music that was advertised and we need to come out of the gate without the right momentum it's hard to get it back on track so.

Speaker Change: Probably more on the supply side the demand side.

Speaker Change: That's great. Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: This concludes the question and answer session. Thank you for your participation in today's event. This does conclude the program you may now disconnect.

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Operator: ...

Speaker Change: Good morning, and welcome to the vivid feeds second quarter 2024 earnings conference call.

Speaker Change: <unk> manages management's prepared remarks, we will open the call for Q&A I would now like to turn the call over to Kate Ashray.

Kate Africk: Thanks for watching! ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good morning and welcome to the Vivid Seats second 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.

Speaker Change: Good morning, and welcome to <unk> second quarter 2024 earnings Conference call I'm, Kate Afric head of Investor Relations David <unk>.

Kate Africk: Good morning, and welcome to Vivid Seats' second quarter 2024 earnings conference call. I'm Kate Africk, head of investor relations at Vivid Seats. Joining me today to discuss Vivid Seats results are Stan Chia, Chief Executive Officer, and Larry Fay, Chief Financial Officer. By now, everyone should have access to our second quarter earnings press release, which we released earlier this morning. The press release, as well as supplemental earnings slides, are available on the Investor Relations page of Vivid Seats' website at investors.vividseats.com.

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

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

Speaker Change: The press release as well as supplemental earnings slides are available on the Investor Relations page or visit <unk> website at Investor <unk> Dot <unk> dot.

Speaker Change: Dot com.

Kate Africk: During the course of today's call, management may make forward-looking statements within the meaning of federal securities law. 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. In today's call, we will refer to Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures that provide useful information for our investors.

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.

Speaker Change: 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.

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

Speaker Change: 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: Now I would like to turn the call over to Dan.

Stanley Chia: Good morning, everyone, and thank you for joining us today. We are halfway through 2024 and pleased to deliver another strong quarter with great revenue and adjusted EBITDA growth. In the second quarter, we executed with discipline, delivering great results while opportunistically leveraging our unique assets and capabilities. These results are evidence of our differentiated offering, dynamic model, and our strong market position. We made progress this quarter across a number of key priorities, but to begin, I'd like to touch on our financial highlights.

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

Dan Carnose: We are halfway through 2024 and pleased to deliver another strong quarter with great revenue and adjusted EBITDA growth.

Dan Carnose: In the second quarter, we executed with discipline delivering great results, while opportunistically leveraging our unique assets and capabilities. These results are evidence of our differentiated offering dynamic model and our strong market position.

Speaker Change: We made progress this quarter across a number of key priorities, but to begin I would like to touch on our financial highlights.

Stanley Chia: In the second quarter, I'm proud to share that we delivered $198 million in revenues and $44 million in adjusted EBITDA, representing 20% year-over-year revenue growth and 42% year-over-year adjusted EBITDA growth. Larry will speak in more detail, but these results demonstrate our ability to drive strong growth, capture repeat orders, and generate strong unit profitability. After remarkable growth years in 2022 and 2023, live events remain a priority amongst consumer spending, as we continue to see a preference for experiences, while growth has moderated towards more historical norms.

Speaker Change: In the second quarter I'm proud to share that we delivered $198 million of revenues and 44 million of adjusted EBITDA, representing 20% year over year revenue growth and 42% year over year adjusted EBITDA growth.

Speaker Change: Larry will speak in more detail, but these results demonstrate our ability to drive strong growth capture repeat orders and generate strong unit profitability.

Stanley Chia: On the supply side, the industry has displayed a great breadth of events in 2024, with women's sports and soccer tournaments making a significant mark, while we lap an outlier year in 2023 that had an unusually high number of the most popular artists touring in the largest venue.

Stanley Chia: We expect year-over-year growth to accelerate in the fourth quarter once the industry has fully lapped 2023's summer concert slate and once stadium shows go on sale for 2025. We continue to execute against our strategy and drive differentiation through our investments, which have been a source of our strength and are bearing fruit. Skybox Drive is in the last stage of its beta phase, and we are excited to prepare for its formal launch in the coming months.

Speaker Change: We expect year over year growth to accelerate in the fourth quarter. Once the industry has fully lap 2020, Three's summer concert slate and once that stadium shows go on sale for 2025.

Speaker Change: We continued to execute against our strategy and drive differentiation through our investments, which have been a source of our strength and are bearing fruit.

Dan Carnose: Skybox drive is in the last stage of its beta phase and we are excited to prepare for its formal launch in the coming months. This is another example of how we continue to innovate and build on our best in class products.

Stanley Chia: This is another example of how we continue to innovate and build on our best-in-class products. Skybox is the ERP of choice for the majority of professional sellers, and Skybox Drive takes that powerful tool further by addressing another key seller need.

Speaker Change: Skybox is the ERP of choice for the majority of professional sellers and Skybox drive pick that powerful tool further by addressing another key seller need technology driven pricing.

Stanley Chia: Technology-Driven Program. We look forward to onboarding sellers from our existing large installed base of sellers using Skybox. On the buyer side, we have focused on encouraging repeat behavior, which is a fundamental aspect of our broader strategy. Through our industry-leading loyalty program and engagement initiatives, we continue to shift toward a higher mix of accretive repeat orders. These strategic efforts have proven successful, and midway into 2024, we are trending higher than the mix of repeat orders achieved in 2020.

Speaker Change: We look forward to onboarding sellers from our existing large install base of sellers using skybox.

Speaker Change: On the buyer side, we have focused on encouraging repeat behavior, which is a fundamental aspect of our broader strategy.

Speaker Change: With our industry, leading loyalty program and engagement initiatives, we continue to shift toward a higher mix of accretive repeat orders.

Dan Carnose: These strategic efforts have proven successful and midway into 2024, we are trending higher than the mix of repeat orders achieved in 2023.

Dan Carnose: Our priority remains building for the long term and we have seen our loyal base of customers continue to reward us unintended with stickier volume that yields greater profitability.

Dan Carnose: Our investments in building, our international platform and our acquisition of Vegas Dot Com are also progressing nicely. We remain on track to launch internationally by the end of the year.

Stanley Chia: For Vegas.com, we are continuing to drive incremental orders through synergized inventory on Vegas.com from Vivid Seats. Additionally, our cross-sale campaigns are now fully underway. This has resulted in tens of thousands of customers being reached each month, combined with impressive email open rates of almost 50 percent and very accretive customer acquisition onto Vivid Seats in fans' home markets. We have also continued to invest in other channels and engagement vehicles as we continue to efficiently attract and retain buyers.

Dan Carnose: For Vegas Dot Com, we are continuing to drive incremental orders Youre synergize inventory on biggest dotcom from <unk>.

Dan Carnose: Additionally, our cross sell campaigns are now fully underway. This has resulted in tens of thousands of customers being reached each month combined with impressive email open rates, almost 50% and very accretive customer acquisition onto vividly in fan home markets.

Dan Carnose: We have also continued to invest in other channels and engagement vehicles as we continue to efficiently attract and retain buyers gain.

Dan Carnose: <unk> Centre is a key mechanism that we employ to attract both existing and new customers to our app.

Speaker Change: As gamification continues to positively impact consumer behavior, we've seen users almost always browse our purchase tickets when playing.

Speaker Change: With over 340000 customers now playing and almost no marketing dollars spend game center is proving to be an extremely efficient channel to drive app downloads app engagement and ultimately accretive app orders.

Speaker Change: Even as we diversify our marketing channels and drive efficiencies and repeat orders traditional performance channels remain an important part of new customer acquisition.

Adam Stuart: On that note we are excited to announce that our board recently appointed Adam Stuart as a director to be effective upon board composition changes expected to occur in November in connection with our transition from being a controlled company under NASDAQ rules.

Speaker Change: Adam will join our board with extensive media and entertainment experience at leading brands, including almost two decades at Google.

Adam Stuart: Currently he served as vice President of consumer government and entertainment at Google, where he oversees advertising partnerships and integrated solutions across Youtube, Google Dot Com and mobile.

Speaker Change: As an expert in performance marketing, a seasoned technology leader and an experienced board member, we look forward to benefiting from Adams insight and guidance as we continue our focus on building shareholder value and executing our long term growth strategy.

Speaker Change: Upon the effectiveness of Adams appointment, we will have a majority independent board.

Speaker Change: Next I'm pleased to share that our balance sheet now allows us additional strategic flexibility following our opportunistic June refinancing.

Speaker Change: We upsized, our existing term loan by $125 million, while simultaneously lowering our interest rate on the entire loan.

Stanley Chia: We are excited to have this incremental cash available to deploy with the financial discipline that we've always shown towards our existing pillars for capital deployment, share repurchases, and strategic M&A. We continue to evaluate opportunities for both with a keen focus on increasing shareholder value. In summary, it was a solid quarter where we drove very strong revenue and even stronger adjusted EBITDA growth and furthered our strategic objectives. In an industry benefiting from long-term secular growth, we continue to expect our differentiated offering and dynamic model to deliver double-digit growth. With that, I will turn it over to Larry for a more detailed review. Thanks, Dan.

Speaker Change: In summary, it was a solid quarter, where we drove very strong revenue and even stronger adjusted EBITDA growth and further our strategic objectives.

Speaker Change: In an industry benefiting from long term secular growth, we continue to expect our differentiated offering and dynamic model will deliver a double digit growth CAGR.

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

Larry: Thanks, Dan.

Larry: We continued to deliver strong financial results in the second quarter executing dynamically and with discipline.

Larry: In the second quarter of 2024, we generated approximately $1 billion of marketplace, GOP, which represents a 5% year over year increase.

Larry: <unk> growth was fueled by an 18% increase in total marketplace orders.

Speaker Change: Partially offset by lower average order size of $322.

Larry: Versus $363 in the second quarter of 2023.

Speaker Change: The AOS declines are a result of the mix impact from our acquisition couple.

Speaker Change: Coupled with comparing against abnormally strong Pos from summer 2023 concert slate.

Speaker Change: As Dan noted, we continue to see consumer prioritization of live events were.

Dan Carnose: Supply normalizing to historical CAGR.

Speaker Change: We delivered robust revenue and adjusted EBITDA growth by acting dynamically in a competitive environment.

Speaker Change: We delivered $198 million of revenues in the second quarter, a 20% year over year increase driven by a higher take rate.

Speaker Change: Our take rate was 17.0% in the second quarter compared to 14, 6% in the second quarter of 2023.

Speaker Change: We delivered $44 million of adjusted EBITDA in the second quarter of 2020 for a 42% year over year increase along with a 22% adjusted EBITDA margin.

Speaker Change: We consistently adjust across multiple levers to find the proper balance of volume and profitability across different landscapes and are pleased by our continued ability to deliver robust revenue and adjusted EBITDA growth.

Speaker Change: Turning to cash in our balance sheet, we deployed $16 million of cash on share repurchases in the second quarter.

Speaker Change: We had $125 million of cash through our June refinancing.

Speaker Change: Our cash balance now stands at $234 million.

Speaker Change: And we continue to have a healthy balance sheet with 1.0 times net leverage based on 2024 adjusted EBITDA at the mid point of our guidance.

Speaker Change: We continue to expect strong cash generation in 2024 and beyond.

Speaker Change: And we will continually seek accretive opportunities to deploy our balance sheet.

Larry: Going forward, stock comp expense related to these interests will, Lastly, on guidance, we now expect 2024 Marketplace GOV to be in the range of $4.0 to $4.3 billion versus $4.2 to $4.5 billion prior, and 2024 revenues to be in the range of $810 to $830 million versus $810 to $840 million prior. We continue to expect 2024 adjusted EBITDA in the range of $160 to $170 million. We will continue to act with agility as the environment evolves and position our business for long-term success. Thank you. Thanks, Larry.

Speaker Change: Next I'll touch briefly on stock compensation.

Speaker Change: During the quarter Hoya Topco, the private equity backed entity that holds our class b shares used its own funds in the second quarter to redeem all of its outstanding profits interests and Phantom units that were held by employees of diabetes.

Speaker Change: In previous periods, we have been recognizing stock compensation expense for these interests.

Speaker Change: Upon the redemption transaction, there was a one time $8 million stock compensation charge.

Speaker Change: Going forward stock comp expense related to these interests will cease.

Speaker Change: Lastly on guidance, we now expect 2024 marketplace <unk> to be in the range of 4.0 to $4 3 billion versus $4 two to $4 5 billion prior.

Speaker Change: In 2020 for revenues to be in the range of $810 million to $830 million versus 810 to 840 million prior.

Speaker Change: We continue to expect 2024, adjusted EBITDA in the range of $160 million to $170 million.

Speaker Change: We will continue to act with agility as the environment evolves and to position our business for long term success.

Speaker Change: Back to Houston.

Houston: Thanks, Larry.

Stanley Chia: To wrap up, we delivered another strong quarter. With our long-term mindset, we continue to advance our strategic objectives that foster lasting stickiness for both buyers and sellers. Our team remains agile as we continue to position our business to win in any environment. Between favorable tailwinds for live events, our differentiated model, and the strategic flexibility that our robust cash flow affords, I'm confident that we can continue to drive compounding double-digit growth and value to shareholders.

Speaker Change: To wrap we delivered another strong quarter.

Speaker Change: With our long term mindset, we continue to advance our strategic objectives that foster lasting stickiness for both buyers and sellers.

Speaker Change: Our team remains agile as we continue to position our business to win in any environment.

Speaker Change: It's been favorable tailwind for live events, our differentiated model and the strategic flexibility that our robust cash flow affords I am confident that we can continue to drive compounding double digit growth and value to shareholders.

Stanley Chia: With that, operator, let's open it up for questions. Thank you. At this time, we will now conduct the question and answer session. To ask a question, you need to press star 1 1 on your telephone and wait for your name to be announced.

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

Speaker Change: Thank you at this time, we will now conduct the question and answer session.

Speaker Change: Ask a question you need to press Star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again, please limit to two questions per person standby, while we compile the Q&A roster.

Speaker Change: Our first question comes from Tom White of D. A Davidson your line is now open.

Tom White: Your line is now open. Great, good morning. Thanks for taking my questions. Maybe just first off, could you maybe just give a little more color on kind of the slightly degraded top-line outlook for the rest of the year? Yeah, you commented that, you know, consumer spending was resilient on concerts and stuff. I'm just curious if there's anything in the macro that you guys are seeing that's causing the change, or maybe it's something on the competitive front.

Tom White: Great. Good morning, Thanks for taking my questions. Maybe just first off could you maybe just give a little more color on kind of the slightly degraded.

Tom White: Top line outlook for the rest of the year.

Speaker Change: You commented that.

Speaker Change: Consumer spending was resilient unconscious and stuff I'm just curious if there's anything in the macro that you guys are seeing that that's causing the change or maybe something on the competitive front. Thanks.

Stanley Chia: Thanks. Hey, Tom, thanks for the question. Yeah, look, you know, I think we've, we continue to see strength and resiliency among the consumer as it pertains to the category. You know, I think when we look at the forward look, you know, I think on the supply side, I think it's just been a little bit of a softer year, especially as we compare it to a year where you had some of the largest artists touring and some of the largest venues.

Speaker Change: Hey, Tom Thanks for the question, Yes, I think we.

Speaker Change: We continue to see really strength and resiliency with the consumer as it pertains to the category.

Speaker Change: Yes, I think look when we look at the forward looking I think on the supply side I think it's just been a limit of a softer year, especially as we comp a year, where you had some of the largest artists.

Speaker Change: Turing and some of the largest venue then this year as we look at.

Speaker Change: The remainder of the year, we've really just got folks really prioritizing amphitheaters and arenas, which we've historically seen as lower attendance lower price points and I think just in the past week, we saw Aerosmith handful. So I think just being prudent with all of the information. We have is how we've looked at the year, but I think we continue to see.

Stanley Chia: So I think just being prudent with all of the information we have is how we've looked at the year. But, you know, we continue to see lots of strength on the consumer side. And if you look at the current quarter, you know, great performance and really our highest order volume number that we've ever had throughout the entirety of the business. So a lot of strength, just some prudence as we look at the slate of supply coming up. And Tom, I'd add two things in support of what Stan said.

Speaker Change: Lots of strength on the consumer side and if you look at the current quarter.

Speaker Change: Great performance and really our highest order volume number that we've ever had.

Speaker Change: The entirety of the business so a lot of strength.

Speaker Change: Prudent as we look at the slate of the supply coming up okay. Thanks, Tom.

Speaker Change: Two things in support of it.

Speaker Change: Ted.

Larry: We've been seeing really nice year-over-year strength in sports, which I think speaks to it not being a consumer but perhaps a supply contrast on the concert side of things. And then the second piece, I would say, you know, we spoke about in the last couple quarters around. Competitive Intensity, certainly seeing that persist. And yeah, I think that it is a presumption that that continues, but in the past, we've seen ebbs and flows, so we'll hope for folks to... Insert Additional Discipline moving forward, but we're not. I got it.

Ted: We've seen.

Ted: Really nice year over year strength in sports, which I think speaks to.

Ted: Not being consumer but perhaps.

Speaker Change: Fly.

Speaker Change: Contract in the concert bag of things.

Speaker Change: And then the second piece I would say no we spoke in the last couple of quarters around.

Speaker Change: Hydrogen intensity.

Speaker Change: Certainly seeing that per se.

Speaker Change: And embedded is a presumption that Pat.

Speaker Change: Thank you.

Speaker Change: But in the past we've seen we've seen as we've seen flows.

Speaker Change: So we will hope for folks.

Speaker Change: And sorry additional at this point moving forward, but we're not counting on it.

Tom White: Thank you for that. Maybe just a quick follow-up on the competitive landscape. And I guess, you know, Stan's comments about performance marketing were interesting. Just curious, maybe just on the performance marketing channel specifically, curious whether you could, how you could characterize kind of what you're seeing there, you know, one of your competitors, seemingly maybe, isn't going to come to the public markets maybe as soon as some had previously thought. Curious whether that means that there's any change maybe in the kind of some of the intensity you're seeing on key performance marketing channels. Thanks.

Speaker Change: Got it. Thank you for that maybe just a quick follow up on the competitive.

Speaker Change: Landscape and.

Speaker Change: Yes, Stan's comments about performance marketing I thought were.

Speaker Change: Interesting.

Speaker Change: Just curious maybe just on the performance marketing channels, specifically curious whether you could.

Speaker Change: Characterize kind of what Youre seeing there one of your competitors seemingly maybe.

Speaker Change: Isn't going to come to the public markets, maybe as soon as some had previously thought I'm curious whether that.

Speaker Change: It means that.

Speaker Change: There is any change maybe in telecom and intensity youre seeing on key performance marketing channels. Thanks.

Stanley Chia: Yeah, look, we've always looked at performance marketing as a channel that, you know, I think, as Larry said, ebbs and flows. I think, you know, when we look at ourselves as a differentiator, as you see, I think we've got lots of levers, really, to drive and, I think, win customers. And, you know, I'd say our perspective on the long-term outlook with our rewards program, our differentiated capabilities, the multiple brands and platforms that we now offer, along with gamification that keeps you engaged in the platform, is that we are just really focused on winning customers that stay and are sticky with the platform in the long-term. And I think we certainly see others focus more on buying temporary volumes. Got it. Thank you.

Speaker Change: Yes.

Speaker Change: <unk> always looked at performance marketing it.

Speaker Change: As a channel that I think Larry you said ebbs and flows I think.

Speaker Change: We look at ourselves as a differentiator do you see I think we've got lots of lever is really to drive and I think when customers.

Speaker Change: I'd say our perspective on the long term outlook with our rewards program, our differentiated capability at the multiple brands and platforms that we now offer.

Speaker Change: Along with gamification that keeps you engaged in the platform is that we are just really focused on winning customers that stay in our sticky with the platform in the long term and I think we certainly see others focus more on buying temporary volume.

Speaker Change: Got it thank you.

Speaker Change: Thank you.

Tom White: Thank you. One moment for our next question. Our next question comes from Ralph Schackart of William Blair. Your line is now open. Great. Two questions, if I could. Stan, in the prepared remarks, you talked about, or maybe it was Larry, supply normalizing to historic levels. Was that something that, you know, sort of adjusted intra-quarter? I know you talked about amphitheaters, but just any more color you could add there?

Speaker Change: One moment for your next question.

Ralph Schackart: And just on the acquisition, I mean, the trends sound, you know, strong and solid with some of the metrics you report. I'm just kind of curious if you could sort of frame how that acquisition is progressing according to your plan, both just from the operational aspect and your ability to sort of leverage that relationship and to drive customers when those people go back to their hometowns. Thanks. Yeah, so, Ralph, that question is on me and how I've been performing. Oh, that's right.

Speaker Change: Our next question comes from Ralph Shakur of William Blair. Your line is now open.

Ralph Shakur: Great two questions if I could.

Ralph Shakur: And in the prepared remarks, you talked about or maybe as Larry supplied normalizing to historic levels.

Ralph Shakur: Is that something that sort of adjusted intra quarter I know you talked about ample theaters, but just any more color.

Speaker Change: You could add there and just on the acquisition and the trends.

Speaker Change: Strong and solid with some of the metrics. We report on just kind of curious have you sort of frame how that acquisition is progressing according to your plan.

Speaker Change: Both just from operational aspect and your ability to sort of leverage that relationship and the drive customers. When those people go back to their hometowns. Thanks.

Speaker Change: Okay.

Speaker Change: Alright.

Speaker Change: Yeah, sure Ralph I think run rate.

Speaker Change: And how that's been performing.

Speaker Change: That's right.

Speaker Change: Okay Alright.

Speaker Change: Yes.

Stanley Chia: Sorry, Ralph, we were just making sure we had the question right. Yeah, I mean, on the acquisition performance. You know, I think, as you heard, we're really excited about the progress that we've made there. You know, I think one of the biggest elements of that is being able to leverage all of the customers that we acquire through that and then bring them into the multiple other platforms and markets that we're active in through our national Vivid Seats brand.

Speaker Change: Sorry, Ravi, we're just making sure we get the question right, yes on the on the <unk>.

Speaker Change: Acquisition performance I think as you heard we're really excited about.

Speaker Change: The progress that we've made there I think one of the biggest element of that is being able to leverage all of the.

Speaker Change: Customer that we acquire through that and then bring them into the multiple platforms and markets that we're active in through our national.

Speaker Change: Brandon We've made I think great progress there with I think as you heard in the prepared remarks, our cross sell campaign.

Speaker Change: Really driving a lot of efficacy.

Speaker Change: Consumers move back into the home market so.

Speaker Change: I look at Vegas, as a profitable customer acquisition vehicle for the National debate These brand and we're well underway there.

Speaker Change: You look at our wave that property in Japan, too strong integration across the debit feedback driving cross border travel in particular in the baseball season with a lot of fan.

Speaker Change: Clearly.

Speaker Change: In Japan, the Dodgers and I'm sure you'll have a tiny in particular at the Dodgers being Abc's partner worthy or their official marketplace as well. So I think we've seen a lot of great results and continue to be excited about how to continue to drive synergy and leverage across that.

Stanley Chia: So I think we've seen a lot of great results and continue to be excited about how to continue to drive synergy and leverage across that. And Ralph, on the first question about sort of trajectories across supply, I would say as we headed into the year, you kind of knew what the lineup was. You had a sense of the shift from stadiums down to amphitheaters. But I think as it's played out, you know, the... top of the card, which was already soft, took some unexpected hits, right? You had Neil Young, Jennifer Lopez, Aerosmith, and Stephen Tyler.

Speaker Change: And Ralph on the first question on sort of trajectories.

Speaker Change: Across supply.

Ralph Shakur: I would say as we headed into the year you kind of knew what the lineup was you had a sense for the shift from stadiums amphitheaters and arenas.

Speaker Change: I think as it's played out.

Speaker Change: The top of the card, which was already saw some unexpected hits.

Speaker Change: <unk>.

Speaker Change: Neil Young cancel you had.

Speaker Change: Jennifer Lopez cancel.

Speaker Change: I would characterize for pretty different reasons now you have Aerosmith, Eric canceling.

Speaker Change: Global core held for Steven Tyler.

Speaker Change: <unk> already had a soft top of the card and for.

Larry: For idiosyncratic reasons, it's gotten a bit softer, which has influenced... kind of the outlook until we get to next. This is kind of the first nine months we live on this year's calendar, then in Q4 we shift to next year's calendar, and based on all the commentary we're hearing and seeing, we would expect that we get a little more pep in the steps. Okay, thanks, Dan. Thanks, Larry.

Speaker Change: Idiosyncratic reasons, it's gotten a bit softer.

Speaker Change: Influenced.

Speaker Change: Kind of the outlook until we get to.

Speaker Change: Next year calendar, alright, so kind of the first nine months, we have on this year's calendar that in Q4, we shipped next.

Speaker Change: Next year's calendar based on all the commentary Gary we're going to expect that.

Gary: Three of them are patterns that Q4.

Gary: Okay. Thanks, Dan Thanks, Larry.

Speaker Change: For a moment for our next question.

Speaker Change: Okay.

Curtis Nagle: One moment for our next question. Our next question comes from Curtis Nagle of B of A. Your line is now open.

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

Curtis Nagle: Great, thanks very much for taking the questions. First one, Stan, and Larry, could we talk a little bit more about the balance between driving GOV, much higher take rates, and what's behind that, you know, and just, you know, overall profitability, which came in pretty nicely for the quarter? Yeah, thanks, Curtis.

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

Curtis Nagle: Stan Larry could you talk a little bit more about the balance between driving jewelry.

Speaker Change: Our take rates whats behind that.

Speaker Change: Overall profitability.

Speaker Change: Kevin.

Speaker Change: Pretty nicely for the quarter.

Larry: Yeah, I think the question in many ways typifies the thought process where it's always a balance between Driving Volume and Driving Profitability. And when we talk about some of the ebbs and flows, we've certainly seen competitors go through phases where they seem to prioritize volume at the expense of profitability, some more consistently than others, and at the moment, I think we're seeing more competitors prioritize growth and Bennett Tippett. So, somewhat in reaction to that competitive dynamic where we try to stick to our unit economic discourse.

Kevin: Yes, Thanks Curtis.

Speaker Change: Got it.

Speaker Change: Question in many ways typifies the thought process, where it is.

Speaker Change: Always a balance between.

Speaker Change: Driving volume and driving profitability.

Speaker Change: And when we talk about some of the ebbs and flows we've certainly seen.

Speaker Change: Competitors go through phases, where they seem to prioritize volume at the expense of profitability.

Speaker Change: Some more consistently with others and at the moment I think we're seeing.

Speaker Change: More competitors prioritize top line.

Speaker Change: Typically the case.

Speaker Change: So somewhat in reaction to that competitive dynamic, where we try to stick to our unit economic discipline.

Larry: The three components I point to on the year-over-year take rate improvement, right? One part is, you know, you talked about some of the accretive benefit from the acquisition. Second part, you know, last year, we talked about, you know, at the really high average order size on a couple of the big name tours, we were taking a lower take rate but maximizing dollars strategy. So last year's take rate was artificially low.

Speaker Change: Yes, it's three components I point to on the year over year take rate improvement right. One part is you've talked about some of the accretive benefit from the acquisitions.

Speaker Change: Second part last year, we talked about.

Speaker Change: Really high average order size on a couple of them.

Speaker Change: Aimed tours, we are taking a lower take rate, but maximize dollars strategy. So last year's take rate was artificially low.

Curtis Nagle: And then we focused on our take rates this year and said, you know, in an era where folks are chasing unprofitable volume, they can do that; we'll protect unit economics. And so the three of those summed up to, I think, pretty meaningfully improved take rates, both year over year and relative to expectations. And those take rates support sound unit economics around the rest of the year. Okay, that makes sense. And then maybe just kind of follow up on that last question. Any early reads on the concert season for 25-year-olds?

Speaker Change: And then we focused on our take rate this year in an era, where.

Speaker Change: Folks are chasing unprofitable volume.

Speaker Change: We will protect the unit economics.

Speaker Change: So the three of those summed up to I think.

Speaker Change: Meaningfully improved take rates both year over year in relative to expectations.

Speaker Change: Great support.

Speaker Change: Thank you good economics.

Speaker Change: The rest of the year.

Speaker Change: Okay that makes sense.

Speaker Change: And then maybe just kind of follow up on that last question.

Speaker Change: Any early reads on the concert season 'twenty fives.

Speaker Change: Whats given that confidence in acceleration support you as those ticket sales start to hit the market.

Stanley Chia: You know, what's given that confidence and acceleration for 4Q as those ticket sales start to hit the market? Thank you, Curtis. I think we're certainly, you know... Wish we had the perfect crystal ball to be able to have precision on that. You know, I think if we look at industry commentary around 25, I think we'll see the excitement that we've heard around perhaps next year, having, being a stadium year versus the amphitheater and arena year that it is this year. And certainly, I think, sounds like there are more stadiums booked for next year than there were last year, right? So 25, I think, being potentially a larger stadium year than 23.

Speaker Change: I think we're certainly.

Speaker Change: Wish we had the perfect Crystal ball.

Speaker Change: To be able to have precision on that and I think as we look at industry commentary around 25%.

Speaker Change: We follow I think the excitement that we've heard.

Speaker Change: Around perhaps next year, having <unk>.

Speaker Change: Being a stadium year versus the amphitheater and arena year than it is this year and certainly I think.

Speaker Change: Sounds like there are more stadiums booked for next year than there was last year right. So 25, I think being potentially a larger stadium year than 20, threes and I think as we look at the publicly available industry components I think that gives us I think.

Curtis Nagle: So I think as we look at those publicly available industry components, I think that gives us, you know, lots of optimism that, you know, I think that supply sort of digestion or normalization that we're feeling this year, I think, should move back into what we see as normalcy next year. Got it. Okay. Thanks very much.

Speaker Change: Lots of optimism that.

Speaker Change: That supply sort of digestion of normalization that we're feeling this year I think should move back into what we see as normal the next year.

Speaker Change: Got it okay. Thanks very much.

Ryan Sigdahl: Thank you. One moment for our next question, which comes from Ryan Sigdahl of Craig Hallam Capital Group. Your line is now open. Hey, good morning, Larry, and Stan.

Speaker Change: Thank you.

Speaker Change: For a moment for our next question.

Which comes from Ryan Macdonald of Craig Hallum Capital Group. Your line is now open.

Ryan Macdonald: Hey, good morning, Larry Stan nice quarter nice execution guys.

Ryan Macdonald: Want to ask on the international just any update you can provide I know you said on track, but if youre willing to comment on specific regions and then how you think about kind of as you near that launch date of customer acquisition and balancing the cost side versus ramping in the market.

Stanley Chia: Thanks for the question. You know, I think we remain on track, I think, certainly for the end of the year to launch our international platform and continue to make, you know, I think, pretty good progress as we build out the components necessary. I think what we continue to talk about is, I would expect, you know, I think our investments to be fundamentally on a platform and highly leverageable basis, and as we continue, as we start to launch into, I would say, the markets that we have prioritized, I would expect, you know, volumes of flow through, you know, in the medium term to be similar to how we look at contributions broadly.

Ryan Macdonald: Yeah, Hey, Ryan. Thanks for the question I think we remain on track I think certainly for end of the year to launch our international platform and continue to make pretty good progress as we build out the components necessary.

Ryan Macdonald: While we continue to talk about it.

Ryan Macdonald: Would expect.

Ryan Macdonald: Our investments to fundamentally be on our platform and highly leverage able basis and as we continue as we start to launch into I would say into the markets that we have prioritized I would expect.

Ryan Macdonald: Volumes of flow through.

Ryan Macdonald: <unk>.

Ryan Macdonald: In the medium term to be <unk>.

Ryan Macdonald: So how we look at contribution broadly and so I think not a lot of fixed expense as we move into the market beyond the platform investments and we remain excited about launching those this year.

Speaker Change: And then just on capital allocation.

Speaker Change: Good terms on the on the new add on that but is there plans in the near term to leverage and utilize kind of the increased cash balance or is it really flexibility for the key priorities you guys have highlighted and executed on over the past years.

Stanley Chia: Yeah, I think what we've always put forward is our primary vehicles for Capital Deployment are Strategic M&A that is idiosyncratic, and we try to bring a high bar to that, but you want to have the flexibility to strike when the opportunities do arise, and then buy ourselves back when the price is right. So we obviously have the share of purchase authorization in place, and we've continued to execute against that in Q2. Unfortunately, the shares have since become more attractive. So those are the pillars.

Ryan Macdonald: Yeah, Yeah. Thanks Ryan.

Speaker Change: Yes, I think we always put forward as our two.

Speaker Change: Primary vehicles for.

Speaker Change: Capital deployment are.

Speaker Change: Strategic M&A.

Speaker Change: That is idiosyncratic and we try to bring a high bar for that.

Speaker Change: But why havent flexibility strike line.

Speaker Change: Opportunities do arise.

Speaker Change: And then.

Speaker Change: Buying ourselves back when the prices right. So.

Speaker Change: So I.

Speaker Change: I'd say a share repurchase authorization in place we've continued to execute against that in Q2.

Speaker Change: Okay.

Speaker Change: Fortunately the shares have become more attractive subsequently.

Those are the pillars as they remain the pillars will continue to try to find the right balance between those two in light of opportunities pipeline dynamics.

Speaker Change: Shares, but given how profitable we are given our cash generation.

Speaker Change: Those are the main pillars right, we are able to fund international and our other projects comfortably out of our existing P&L and cash balance so.

Speaker Change: We're not starving our are operational.

Speaker Change: Animal by any stretch.

Ryan Sigdahl: I do feel like we have a good amount of flexibility now, and even if we do deploy that cache, I feel like we're still very comfortably levered relative to our Capsule Profile, four times, gross leverage. Great. Thanks, guys. Good luck.

Speaker Change: And could you get a good amount of flexibility now.

Speaker Change: And even if we do deploy that cash.

Speaker Change: We are still very comfortably levered relative to our cash.

Speaker Change: Cash flow profile too.

Speaker Change: Two four times gross leverage obviously considerably less than that.

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

Speaker Change: Thank you.

Cameron Mansson Perrone: Thank you. Our next question comes from Cameron Mansson Perrone of Morgan Stanley. Your line is now open. Thanks. Good morning, guys.

Speaker Change: Our next question comes from Kamran Matkin Perone of Morgan Stanley. Your line is now open.

Stanley Chia: Thanks for taking the questions. First, just to follow up on the guidance, you know, what's allowing you guys to execute against the, you know, I know it's just a modestly lower growth outlook, but the adjusted EBITDA guide for the year unchanged. Maybe you could talk about kind of what's allowing you to execute there despite the modestly lower growth outlook. And then any help in the quarter in terms of unpacking, you know, on an organic basis, what growth is looking like if we kind of strip out the Vegas and Wave Dash benefits? Hey Cameron, it's Stan.

Speaker Change: Thanks, Good morning, guys. Thanks for taking the questions.

Speaker Change: First just to follow up on the guidance.

Speaker Change #100: Whats, allowing you guys to execute against that.

Speaker Change #101: It's just a modestly lower growth outlook, but the adjusted EBITDA guide for the year unchanged, maybe you could talk about kind of what's allowing you to execute there despite modestly lower outgrowth outlook and then.

Any help in the quarter in terms of unpacking on an organic basis, what growth looking like if we kind of strip out the Vegas and wave dash benefits. Thanks.

Hey, Cameron, it's Dan let me I'll take the first part and then Larry can certainly give you some thoughts on how to think about organic.

Larry Stan: Look I think we've continued to talk about I think the investments that we've made over the past years to drive.

Speaker Change #103: Repeat behavior engagement stickiness to the platform and that fundamentally repeat user for us is highly profitable and highly multiples more profitable than our first order with a user right and I think the lever that we have to really drive that I think are what give us I think the ability to.

Stanley Chia: And I think the levers that we have to really drive that, I think are what give us, you know, I think the ability to perform like we did in Q2 and continue to drive leverage and profitability through our model. If you heard, I think we continue to track higher on repeat mix as a percent of our business, and, you know, that mix is, I think, a very powerful lever of profitability into the business.

Speaker Change #103: Perform like we did in Q2 and continue to drive leverage and profitability through our model and if you heard I think we continue to track higher on repeat mix as a percent of our business.

Stanley Chia: And when you look at the other vehicles, whether it's our gamification engine driving app usage and app downloads, I think all of those are strong proponents of what I think gives us lots of confidence to drive just strong stickiness and, therefore, profitability into our platform and ecosystem. And on the organic trends, I think I picked up on a theme where we knowingly walked away from some of what we're considering unprofitable volume in the current environment. In light of that shifting economy, you should think of organic GOV being down a bit year over year, but organic revenue being up. Call it Love, Single Visions; you're over.

Speaker Change #103: That that mix is I think a very powerful lever of profitability into the business.

Speaker Change #103: And then when you look at the other vehicles, whether it's our gamification engine driving app usage app downloads I think all of those are strong proponents of what I think give us lots of confidence to drive strong stickiness, and therefore profitability into our platform and ecosystem.

Speaker Change #104: And on the organic trends I think.

Speaker Change #105: You probably picked up on a theme, where we knowingly walked away from.

What we're considering unprofitable volume in the current environment.

Speaker Change #105: No.

Speaker Change #106: In light of that shifting economics, you should think of organic GOP being down a bit year over year, but organic revenue.

Speaker Change #106: <unk>.

Speaker Change #107: Call it low single digits year over year.

Cameron Mansson Perrone: Got it. Helpful. Thanks, guys. One moment for our next question. Your next question comes from Thomas Forte of Maxim Group. Your line is now open.

Speaker Change #108: Got it helpful. Thanks, guys.

Speaker Change #109: One moment for your next question.

Speaker Change #110: Your next question comes from Thomas Forte of Maxim Group. Your line is now open.

Thomas Forte: Great. Thanks, so congrats on the quarter or one question and one follow up I've been getting a lot of questions from investors on your first party ticket strategy.

Speaker Change #111: That's okay.

Speaker Change #113: College basketball tournament.

Speaker Change #113: Is it you've talked about.

Stanley Chia: Can you talk about your first-party ticket strategy and how that may affect your future sales and profits? I think one of the other components that we've been excited about with our Vegas.com acquisition is it certainly gave us new, you know, I think capabilities as it pertains to integrating with venues on the front end, right? That was that Vegas's inventory primarily came from is directly from the venue to the box office.

Speaker Change #115: Can you talk about your first party ticket strategy.

Speaker Change #116: And how that may affect your future sales and profits.

Speaker Change #115: Yes.

Speaker Change #115: Hey, Tom Thanks for the question, Yes, I think one of the other.

Speaker Change #115: Bonus that we have been excited about with our Vegas Dot Com acquisition is it certainly gave us new.

Speaker Change #115: I think capabilities as it pertains to <unk>.

Speaker Change #115: Integrating with venues.

Speaker Change #117: On the front end right that was that is where our biggest inventory primarily came from us directly from the venue the box offices.

Stanley Chia: You know, as we've looked at opportunities, AEG and AXS have always been really strong partners for us, and with them, we were able to craft, I think, a very unique model in the CBC tournament, the college basketball tournament that will premiere in April. I think that is a new model where we are able to be the official ticketing partner for all of the events with the capabilities that we have, and we'll look to see how that... Thanks. And then, for my follow-up question, can you talk about women's sports such as WNBA and soccer and the progress on potentially becoming a fourth pillar?

Speaker Change #117: As we.

Speaker Change #117: Looked at opportunities AEG and access is all we have always been really strong partners for us and with them. We were able to craft I think a very unique model and the CVV tournament. The college basketball tournament that will premiere in April I think that is a new model, where we are able to be the official ticketing partner <unk>.

Overall of the event with the capabilities that we have and we will look to see how that shakes.

Speaker Change #117: Shakes out as we get into it but we're certainly bullish on the prospects we liked the model and should we find.

Speaker Change #117: They're as in everything we do we will look certainly for opportunities to rapidly scale that model.

Speaker Change #118: And then for my follow up can you talk about women's sports, such as WNBA and soccer and the progress on potentially becoming a fourth pillar.

Speaker Change #118: Yeah.

Speaker Change #119: There's been a really nice I think I'll start with overall.

Speaker Change #120: <unk>, where we've seen lots of new categories.

Speaker Change #120: Women's sports from the Ncw tournament that now the WNBA I think.

Speaker Change #121: Lots of the really wonderful interest from consumers and great New stars I think driving the new generation. We've just continued to see really strong strength there and so we're excited with the growth in the category and some potential like you said, new entrants to drive longer term sustainable growth in the cattle.

Speaker Change #121: Laurie.

Speaker Change #122: How about soccer.

Larry: A phenomenal year. I think it's been a combination of secular growth, the Messi effect, and then we had the Copa America, which is a once every four-year tournament, all combining to be very, very significant year-over-year soccer GOV growth approaching triple digits. As you think about enrolling next year, typically, you'd say, well, you have to lap the COPA America effect, but there are meaningful international tournaments in each of 2025, and then, perhaps most exciting, the World Cup is being held in North America in 2026.

Laurie: Yes, I can take soccer.

Speaker Change #123: Phenomenal year I think it's been a combination of.

Laurie: Secular growth.

Laurie: The effects and then we had Copa America.

Laurie: Which is a once every four year tournament.

Laurie: All combining to be very very significant year over year soccer GOP growth right.

Laurie: Approaching.

Laurie: Triple digits.

As you think about enrolling into next year typically you would say well you have to lap.

Speaker Change #124: America effect, but there are meaningful.

Speaker Change #124: International tournaments in each of 2025, and then perhaps multiple driving the World Cup.

Speaker Change #124: Being held in North America in 2026.

Thomas Forte: So, assuming the secular trends hold and Metsy stays healthy, I think we're on track for a nice soccer trajectory for the next couple of years. Great. Thanks, Dan. Thanks, Larry.

Speaker Change #124: So assuming the secular trends holding and Betsy stays healthy I think where we are on track for a nice soccer trajectory for the next couple of years.

Great. Thanks, Dan Thanks, Larry.

Speaker Change #125: Thank you.

Dan Kurnos: Our next question comes from Dan Kurnos of The Benchmark Company. Your line is now open. Yeah, thanks. Good morning.

Speaker Change #125: Our next question comes from Dan <unk> of the Benchmark Company. Your line is now open.

Dan Carnose: Yeah. Thanks, good morning.

Stan Chia: Stan can we just double click on a little bit more granularity around the loyalty program and maybe the consumer in general if theres any change in velocity of ticket sales and did I hear you say that your customer acquisition cost was down for loyalty like you were getting leverage on that line.

Stan Chia: Hey, Dan Thanks for the question, Yes, I think look I think we're becoming.

Speaker Change #127: As the program continues to evolve I would say we continue to.

Speaker Change #128: Get smarter around how to really target.

Speaker Change #129: And find the most loyal users and drive call has the highest repeat from the most loyal users and continue to see that benefit ripple through and as you imagine I think as you drive that certainly on a.

Speaker Change #129: Profitability basis, as you mix into those orders that is what drives a lot of I would say leveraging our profile and so I think we continue to have that be a high level of focus for us defined.

Speaker Change #129: And drive value and target those repeat users and I think thats, what youre seeing in terms of what we're talking about and certainly in terms of the financial results as well.

Stanley Chia: And so I think we continue to have that be a high level of focus for us to find and drive value and target those repeat users. And I think that's what you're seeing, you know, in terms of what we're talking about, and certainly in terms of the financial results as well. And speaking of drive, I mean, you talked about it with Skybox, and I was just curious about, A, if we are assuming anything this year from a monetization perspective, how you're going to test that? I know you're in beta, but you know, do you bring it to market to everyone all at once?

Speaker Change #130: And speaking of drive I mean, you talked about it with skybox.

Speaker Change #131: Just curious on.

Speaker Change #132: If we are assuming anything this year from a monetization perspective, how youre going to test that I know you're in beta, but do you bring it to market to everyone. All at once just any incremental thoughts on how we should expect that to kind of rollout from here.

Speaker Change #133: Yes, I think the data is.

Speaker Change #134: I would say.

Speaker Change #135: More than triple the number of users on the beta since we started and so I think as we said in the prepared remarks were.

Speaker Change #135: Pretty close to officially launching that and as with every launch I think we will.

Tempur I think rolling that out.

Speaker Change #135: With velocity as well as stability, we certainly have a waitlist of users in the 100 and so we are excited certainly with the reception and the demand that we've seen.

Speaker Change #135: And we will certainly talk about it more once we officially launched in terms of monetization is not included in.

Speaker Change #135: Any of the numbers in our forward looking guide, but certainly if that changes we will be sure to update everybody.

Dan Kurnos: But certainly, if that changes, we will be sure to update everybody. Perfect. Thank you, Stan.

Speaker Change #136: Perfect. Thank you Dan.

Speaker Change #137: Thank you.

Andrew Marok: Thank you. Our next question comes from Andrew Marok of Raymond James. Your line is now open. Thanks for taking my questions. Maybe one on sports.

Speaker Change #138: Our next question comes from Andrew Marek of Raymond James Your line is now open.

Larry: So some good commentary earlier around the incrementality of things like women's sports and some of the soccer events coming online. But with double-digit growth this quarter for the first time in over a year, is there anything else to call out, perhaps on pricing dynamics or taking order share? Or is it really just a result of some of that supply incrementality? Yeah, I would point to more of the dichotomy where you get sports with meaningful numbers of tailwinds across, more supply, better supply in soccer, women's sports, some good match-ups, and respectable series in the NBA.

Andrew Marek: Hi, Thanks for taking my questions, maybe one on sports. So some good commentary earlier around the increments ality things like women's sports and some of the soccer events coming online, but with double digit growth. This quarter for the first time in over a year is there anything else to call out perhaps on pricing dynamics or.

Speaker Change #140: Taking order share or is it really just a result of some of that supply increments.

Speaker Change #140: Yes.

Speaker Change #141: I would point to.

Speaker Change #142: More of a dichotomy.

Speaker Change #143: Sports with.

Speaker Change #143: Meaningful number of Kols across.

Speaker Change #143: More supply better supply Tucker and sports.

Speaker Change #143: Good match ups.

Speaker Change #143: Okay respectable CRE.

Speaker Change #143: Theories.

Speaker Change #143: MBA.

Andrew Marok: I would not say that there was a meaningful difference in, call it, the competitive landscape or competitive intensity across categories. So I was fairly convinced that the difference you're seeing between, call it, concerts and sports, is more of a supply. Great, thank you. Maybe one more quick one, if I could, on the resale business. You know, I know it's not necessarily a full strategic focus, but I guess, so what are some of the drivers behind the decline in growth rate and gross margin in 2Q?

Speaker Change #144: I would not say that there was a meaningful difference and call it the competitive landscape for competitive intensity across categories.

Speaker Change #144: So it was fairly conflict and the difference you're seeing between call it concerts and sports with more of a supply issue.

Speaker Change #144: Yes.

Andrew Marok: And maybe, how should we think about this business's trends in the context of the 24 guide? Thank you. Yeah, thanks, Andrew.

Speaker Change #182: Great. Thank you and maybe one more quick one if I could on the resale business I know, it's not necessarily a full strategic focus but I guess, so what are some of the drivers behind the decline in growth rate and gross margin in <unk> and maybe how should we think about this business as trends in the context of the 24 guide. Thank you.

Larry: So yeah, I think there's always some idiosyncratic event mix within that business. And, you know, probably reflective of some of the comments around the concert supply side being a little bit less than you would have dreamed of coming into the year. Yeah, that kind of flows through on the resale positions that are in that category as well. Yeah, we had a really wonderful dynamic in concerts in particular last year, and so he had a couple pockets of softness this year on the slides that you saw Mark.

Speaker Change #145: Yes, thanks, Andrew so.

Speaker Change #146: Yes, I think there is always some idiosyncratic mix.

Speaker Change #147: In that business and probably reflective of some of the comments around.

Speaker Change #148: The concert supply side being a little bit less than you would have dreamed up coming into the year.

Speaker Change #148: That kind of flows through.

Speaker Change #148: On the resale position that are in that category as well.

Speaker Change #148: Yes last year.

Speaker Change #150: Really just a wonderful dynamic and contracts in particular.

Speaker Change #151: Yes, a couple of pockets of softness this year.

Speaker Change #151: On the supply side, you saw margins deflate, a bit from pretty robust levels still pretty pleased with where he shook out this year.

Andrew Marok: I think we've all deflated a bit from pretty robust levels, still pretty pleased with where they shook out this year. And so while we'll certainly aspire to get back to last year's margin, I think this year's result is fairly consistent with what we would consider steady state. Much appreciated. Thank you. Thank you. Our next question comes from Maria Ripps of Canaccord. Your line is now open. Great. Good

Speaker Change #151: And so while certainly aspire to get back to last year's margins I'd say this year's result, it's fairly consistent with what we would consider.

Speaker Change #151: Painful.

Speaker Change #152: Much appreciate it thank you.

Speaker Change #152: Thank you.

Maria Risks: Our next question comes from Maria risks.

Speaker Change #154: Canaccord Your line is now open.

Maria Ripps: Thanks for taking my questions. So if we assume that the U.S. is entering a period of economic softness that sort of impacts demand for life events, could you maybe talk about your willingness or ability to lean into promotions to try to drive incremental demand? And any thoughts on potential tradeoffs between margins and growth in such an environment? Hey Maria, thanks for the question.

Maria Ripps: Great. Good morning, Thanks for taking my questions. So if we assume that the U S is entering a period of economic softness that sort of impact demand for live events could you maybe talk about your willingness or ability to lean into promotions to try to drive incremental demand and any thoughts on potential may be tradeoffs between margins and grow.

Speaker Change #156: With such an environment.

Stanley Chia: You know, I think, let me give you a two-part answer for you. You know, I think, we're certainly always watching, I think, what's happening, you know, on the consumer front. And, you know, as we almost kicked off the call, I echo first that we continue to see lots of consumer resiliency as it pertains to this category, and I think that's evidenced by our highest order number, you know, ever, I think, in the quarter.

Speaker Change #156: Hi, Maria Thanks for the question.

Speaker Change #157: I think let me maybe two part answer for you I think.

Speaker Change #158: We're certainly always watching I think whats happening on the consumer front end as we almost kicked off the call.

Speaker Change #159: Echo first that we continue to see lots of consumer resiliency as it pertains to this category and I think as evidenced by our highest order number ever I think in the quarter.

Speaker Change #159: As it pertains to promotions.

Speaker Change #159: I think about.

Speaker Change #159: Two things for US one I think we always I think tests into vehicles that we find to be efficient LTV drivers from an acquisition perspective in promotions is certainly a component of that.

Stanley Chia: In addition to that, you know, we have our loyalty program, which continues to work really well, which, you know, you might almost think of as a permanent promotion that is always there, that is continuing to yield the right behavior and the right economics for us. So, you know, I think as we look at those two components, and, you know, I think our proven discipline to be thoughtful around how we invest to drive long-term users, I think that's going to guide certainly how we look at, you know, I think customer acquisition going forward as well. Great Thank you, Stan.

Speaker Change #159: In addition to that we have our loyalty program, which continues to work really well, which you might almost think of as a permanent promotion that is always there that is continuing to yield the right behavior and the right economics for us. So I think as we look at those two components.

Speaker Change #159: And I think our proven now discipline to be thoughtful around how we.

Speaker Change #159: Invest to drive long term users I think that's going to guide certainly how we look at.

Speaker Change #159: I think customer acquisition going forward as well.

Maria Ripps: And then just following up on international expansion, any thoughts maybe you can share on how investors should be thinking about any potential contribution to revenue next year from newer markets? Yeah, I think at this point, as we're still in the College Development and Learning Phase. I think our view is that we would expect there to be some following contributions, and putting precision around that, probably still a little premature, but I think we would expect it to be a measurable tailwind to GOV.

Speaker Change #160: Great. Thank you and then just following up on international expansion any thoughts maybe you can share on how investors should be thinking about any potential contribution to revenue next year from neuro markets.

Speaker Change #161: Yes, I think.

Speaker Change #162: At this point because we're still in the.

Speaker Change #163: Call It development and learning phase.

Speaker Change #164: I think our view is that we would expect there to be some.

Speaker Change #165: Volume contribution.

Speaker Change #165: Putting precision around that probably still a little premature but I.

Speaker Change #165: We would expect it to be.

Speaker Change #165: Measurable tailwind to <unk>.

Maria Ripps: I would expect roughly a ratable flow through to revenue. You know, we've generally been of the view that Take rates are a little bit higher internationally than they are here, but, you know, a modest enough difference that I probably wouldn't be surprised. Jonathan Gregory, K Certainly, any meaningful incremental fixed expense will be more of a shift in the nature of that investment, but decisions will need to get made in real time around incremental contributions to try to build scale.

Speaker Change #165: I would expect roughly ratable flow through to revenue.

Speaker Change #165: We've generally been able to do that.

Speaker Change #165: Take rates are a little bit higher internationally than they are here.

Speaker Change #165: But.

Speaker Change #166: Modest enough difference.

I probably wouldnt.

Speaker Change #166: Buildup structural case around that the accretion at volume levels that we'll see in the near term.

Speaker Change #166: And I think the big variable as you flow that through the P&L as we're trying to build that business to scale.

Speaker Change #166: We touched on having the platform investment is baked into the numbers this year.

Speaker Change #167: Don't believe there'll be.

Speaker Change #167: Certainly any meaningful incremental fixed expense that will be more of a shift in the nature of that.

Speaker Change #167: <unk> decision, we'll need to get made in real time around.

Speaker Change #168: Incremental contributions he tried to build scale, adding for an hour, we're sort of thinking youll try to.

Stanley Chia: I think for now, we're sort of thinking you'll try to get as much volume as that paradigm will enable. Got it. That's very helpful.

Speaker Change #168: The contribution margin neutral.

Speaker Change #168: And get as much volume at that paradigm will enable in that first year.

Speaker Change #169: Got it that's very helpful. Thank you both.

Speaker Change #170: Thank you.

Maria Ripps: Thank you both. Thank you. Our next question comes from Jason Bazinet of Citi. Your line is now open.

Speaker Change #170: Our next question comes from Jason Bazinet of Citi. Your line is now open.

Jason Bazinet: I just want to go back to the cancellation topic. I guess it's a two-part question. In the footnotes, it looks like cancellations are running sort of 2x, year-to-date, what they were a year ago. And my first question is, would you describe the last year as a very low cancellation rate, and now we're just back to normal, or is this above average? And then second, I just want to confirm that you guys don't think that there's anything systemic across these cancelled acts, that these are all sort of just one-offs?

Jason Bazinet: Thanks, I just wanted to go back to the cancellation topic.

Speaker Change #170: <unk>.

Jason Bazinet: I guess, a two part question in your in the footnotes. It looks like cancellations are running sort of two X year to date, what they were a year ago. My first question is would you describe the last years of very low cancellation rate and now we're just back to normal or is this above above average and then second I just want to confirm.

Speaker Change #171: You guys don't think that there's anything.

Speaker Change #171: Stomach across these canceled backs that these are all sort of just one offs is that is that the right interpretation of what's happened so far this year. Thanks.

Jason Bazinet: Is that the right interpretation of what's happened so far this year? And on the cancel rate, that's actually predominantly driven by the impact of Vegas, which has a different cancellation rate. Ben Corbett, which was a net data, I'd say it's fairly consistent year over year, made up a little bit, but closer to closer to flat than the reported number would make you think.

Speaker Change #171: Okay.

Speaker Change #172: On the cancel rate.

Speaker Change #173: That's actually.

Speaker Change #174: Predominantly driven by.

Speaker Change #174: The impact of which has a different.

Speaker Change #174: Cancellation.

Speaker Change #174: Set of terms bancorp of interest which was okay.

Speaker Change #174: Net that out I'd say, it's fairly consistent year over year made up a little bit but closer to closer to flat.

Speaker Change #174: The reported number would make you think.

Larry: And when you go through the camp, we thought, you know, we certainly heard and saw the speculation, right? So, are tours running into issues because there's actually softening consumer demand, or was it something idiosyncratic and specific to those tours? And I think we've generally been of the belief that it's the latter. The most extreme of that is Aerosmith, kind of vocal issues for Stephen Tyler, I think pretty safely detached from

Speaker Change #175: When you go through the camp that we thought we'd certainly.

Speaker Change #176: Hurting thawed speculation right are these.

Speaker Change #176: My tours running into issues, because there's actually softening consumer demand or was it.

Speaker Change #176: Idiosyncratic and specific to those tours and I think we've generally been of the belief that the latter bill.

Speaker Change #176: Both extreme of that is aerospace being kind of vocal issues for Steven Tyler already pretty safely detached from underlying economics.

Larry: Um, yeah, I think. There's probably a lot out there on the sequence of developments on the Jennifer Lopez tour, but I think the general perspective is that that was more of a marketing execution issue than anything. The Price Points set, the type of music that was advertised, and when you just come out of the gate without the right momentum, it's hard to get it back on track, probably more on the supply side than on the demand side.

Speaker Change #177: Yes, I think there is.

A lot out there on the.

Speaker Change #177: The sequence of development that Jennifer Lopez pure, but I think the general perspective is that that was more a marketing execution issue than anything.

Speaker Change #177: The price points that type of music that was advertised and wait.

Speaker Change #177: To come out of the gate without the right moment from its hard to get it back on track so.

Speaker Change #178: More on the supply side.

Speaker Change #178: Syed.

Jason Bazinet: That's great. Thank you. Thank you. This concludes the question and answer session. Thank you for your participation in today's event. This does conclude the program. You may now disconnect.

Speaker Change #179: That's great. Thank you.

Syed: Thank you.

Speaker Change #181: This concludes the question and answer session. Thank you for your participation in today's event. This does conclude the program you may now disconnect.

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