Q4 2024 Vivid Seats Inc Earnings Call
Call for Q&A.
Kate effort: Now like to turn the call over to Kate effort.
Accordingly, we are excited that Adam Stewart has now officially joined our Board of Directors.
Kate effort: Good morning, and welcome to visit <unk> third quarter 2024 earnings Conference call.
As we briefly touched on last quarter, Adam joins us with almost two decades of experience at Google, including his current position overseeing advertising partnerships and integrated solutions, including Google.com.
Kate effort: Kate Afric head of Investor Relations activities.
Speaker Change: Joining me today to discuss the results are Stan Chia, Chief Executive Officer, and Larry Seay, Chief Financial Officer.
Adam's extensive knowledge will be very valuable as we seek to drive further efficiencies in this channel.
Speaker Change: By now everyone should have access to our third quarter earnings press release, which we released earlier this morning.
Now I'd like to turn to the strategic progress that we delivered in the third quarter.
Speaker Change: Yes release as well as supplemental earnings slides are available on the Investor Relations page of visits seats website at investors got vivid C dot com.
Officially increasing brand awareness continues to be a long-term priority, helping to drive customer acquisition and ultimately the household penetration of our brand with key audiences.
Speaker Change: During the course of todays call management may make forward looking statements within the meaning of federal Securities laws.
In the third quarter, we announced a new strategic partnership with Brandon Marshall's athlete-led media platform IM Athlete. The former NFL All Pro receiver has built an impressive platform portfolio with a wide reaching and engaged audience base that is passionate about entertainment, sports, and live events.
Speaker Change: These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks and uncertainties described in our earnings press release, our most recent annual report on Form 10-K, and our other filings with the SEC.
In addition to exclusive content creation featuring athletes and celebrities, Vivid Seats' key brand differentiators are being promoted to millions of sports fans across those channels through native, organic mentions during episodes and sponsored content
Speaker Change: On today's call, we will refer to adjusted EBITA and adjusted EBITDA margin, which are non-GAAP financial measures provide useful information for our investors.
Speaker Change: 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 our supplemental earnings slides.
This unique partnership is a new way for us to engage with fans, growing our brand awareness in new channels and also meet the growing consumer demand for best in class and compelling content.
Stan Chia: And now I would like to turn the call over to Stan.
Our partnership with IAA already appears to have accelerated our impact on social channels.
Stan Chia: Good morning, everyone and thank you for joining us today.
Stan Chia: Our strategy has always been to prioritize long term success by fostering stickiness in our marketplace for both buyers and sellers and I am excited to share the progress we delivered on that front in the third quarter.
In conjunction with these efforts, we are also leveraging new and expanded strategies that drive engagement and grow affinity for our brand, including expanding our social presence, which is approaching 400,000 followers.
Stan Chia: Staying true to that strategy, we operated with discipline and delivered solid third quarter financial results. Despite market headwinds that we believe will be temporary.
We also continue to differentiate our platform and drive marketing efficiencies through game center, which is similarly approaching 400,000 lifetime users playing games in our app.
Before discussing the market backdrop, and the strategic progress that we delivered I'd like to touch on our financial highlights, which Larry will cover in more detail.
As we've shared in the past, our engagement efforts are proving successful with Game Center users frequently browsing tickets while playing, which is translating to app orders.
Stan Chia: In the third quarter, we delivered a $187 million of revenues and $34 million of adjusted EBITDA, including an 18% adjusted EBITDA margin.
We are excited to share that 95% of ticket orders from Game Center users now occur within our app, incurring nearly zero marketing expense.
Stan Chia: These results demonstrate our ability to deliver strong unit economics, even when market factors were less favorable in the short term.
Orders from repeat customers, whether driven through game center engagement or through other initiatives such as our industry leading Vivid Seats rewards program are highly accretive and we look forward to incremental efficiencies as our investments in these initiatives have more room to run.
Stan Chia: To begin with I'd like to shed some light on those market factors.
Stan Chia: Compared to record concert years in 2022, and 2023, we would consider 2024 as a digestion year for concert industry supply with year over year declines seen most acutely in the third quarter.
Next, I'd like to take a moment to highlight the progress and efficiencies that we are continuing to drive through synergies with our Vegas.com acquisition.
Stan Chia: As we and others in the industry have discussed there was a notable reduction in stadium tour activity in 2024 compared to 2023, when many of the most popular artists played and the largest venues, which naturally command the highest prices.
Early on, we began cross-listing complimentary Vivid Seats inventory on Vegas.com. We are excited to share that orders from cross-listed inventory are run rating at approximately 1% of our marketplace GOV.
Additionally, as we discussed last quarter, our Crossell campaign to convert Vegas.com customers, the Vivid Seats customers in their home markets is off to a promising start with nearly 50% of Crossell emails being opened by customers.
Stan Chia: Partially counteracting this dynamic concert ticket volumes have held up quite nicely in 2024 with many artists playing more shows, albeit in smaller venues that typically come with lower prices.
Stan Chia: We believe that the mix shift in 2024 away from concerts and away from stadium tour activity with a short term headwind that will soon abate.
This campaign is now bearing fruit and converting to incremental orders and new Vivid Seats customers. As more Vegas.com cohorts age to their next live event purchased back home, we believe this channel will ultimately be another contributor to profitable GOV growth
Looking ahead, we are now in the midst of concert on sale announcements for the 2025 calendar, which we expect should be a more normal year with concerts, including stadium shows growing again.
As we think about our TAM, we continue to make great progress with our investments in strategically building out our global platform. As we've discussed previously, we are internationalizing our platform and capabilities to scale efficiently as we expand our TAM across geographies.
Stan Chia: Concert supply in 2024 was an anomaly and we look forward to normalizing supply intersecting with long term tailwind for live events next year and sustained and reliable concert growth going forward.
Stan Chia: We remain confident that the digestion that we're seeing in 2024 is a reflection of supply and not a reflection of demand.
We remain focused and on track to launch operations in select geographies by the end of the year.
Stan Chia: The ongoing strength that we're seeing in the industry and sports in theater is evidence of this dynamic.
On the seller side of our marketplace, we are excited to announce that our innovative pricing tool Skybox Drive recently exited its beta phase and was met with rapid demand. As a result, we are already in the process of onboarding over 100 users and also have a sizable wait list of prospective users.
Stan Chia: Overall, we believe that the demand for live events remains as robust as ever.
Stan Chia: Beyond the supply and demand backdrop marketing intensity was high in the third quarter with certain competitors focused on growing volume, where we believe marginal volume is uneconomic at least in the near term.
We are pleased with the reception of our product which is turn key, integrated, and exclusive to our Skybox ERP and leverages the power of Vivid Seats marketplace data. We look forward to driving incremental adoption with the hundreds of additional Skybox sellers on our waitlist.
Stan Chia: We continue to focus on strong unit economics, and fostering long term stickiness in our marketplace.
Stan Chia: Accordingly, we are building on the long standing strength of our business and are poised to capitalize upon any alleviation of competitive behavior or upon a normalizing market backdrop, leveraging our investments that are focused on winning in the long term.
It's important to remember that Skybox remains the industry leading ERP with over 55% of our professional sellers exclusively using our ERP to run their businesses.
The added functionality of Skybox Drive is a significant step that will further enforce the stickiness of Skybox and fortify our already leading position with professional sellers.
Stan Chia: Even as we continue to lean into long term initiatives that are driving our mix of repeat orders higher new customer acquisition via performance marketing remains an important channel.
Stan Chia: Accordingly, we are excited that Adam Stuart has now officially joined our board of directors.
Lastly, I wanted to share that we recently announced Vivid Seats was included in Newsweek's list of America's best customer service, 2025, in the ticketing and category for the fifth time. As a company that is focused on rewarding fans and creating the most exceptional experiences in our industry, we are proud to be recognized again by Newsweek for our excellence in customer service.
Stan Chia: As we briefly touched on last quarter, Adam joins us with almost two decades of experience at Google, including his current position overseeing advertising partnerships and integrated solutions, including Google Dot Com.
Stan Chia: Adams extensive knowledge will be very valuable as we seek to drive further efficiencies in this channel.
In summary, we made substantial strategic progress during the quarter, particularly through unlocking synergies with Vegas.com and with the full launch of Skybox Drive.
Stan Chia: Now I'd like to turn to the strategic progress that we delivered in the third quarter.
Stan Chia: Efficiently increasing brand awareness continues to be a long term priority, helping to drive customer acquisition and ultimately the household penetration of our brand with key audiences.
We are confident that the differentiated products and initiatives fostering stickiness to our platform will drive long-term growth and value in our marketplace both in North America and abroad with our imminent international launch.
Stan Chia: In the third quarter, we announced a new strategic partnership with Brandon Marshall's athlete led media platform I am athletes.
In the meantime, we will continue to operate with a discipline and flexibility that we demonstrated in the third quarter. With the anticipated return of concert growth in 2025, we expect to return to organic growth and to continue delivering a double-digit growth cager over the long term.
The former NFL all pro receiver has built an impressive platform portfolio with a wide, reaching an engaged audience base that is passionate about entertainment sports and live events.
Stan Chia: In addition to exclusive content creation, featuring athletes and celebrities vivid seats key brand differentiators are being promoted to millions of sports fans across those channels through native organic mentioned during episodes and sponsored content.
Larry: With that, I will turn it over to Larry for a more detailed review of the quarter.
Larry: Thanks, Dan. In the third quarter of 2024, we generated 872 million of marketplace G.O.V. at 13% year-over-year decline.
Larry: The drop in marketplace GOV was driven by an 11% year-over-year reduction in average order size and a 2% year-over-year decline in total marketplace orders.
Speaker Change: This unique partnership is a new way for us to engage with fans growing our brand awareness in new channels and also meet the growing consumer demand for best in class and compelling content, our partnership with IAA already appears to have accelerated our impact in social channels.
Larry: Our lower average order size is a result of pressure on concert AOS, resulting in part from a softer stadium lineup, along with our acquisition bringing lower average order sizes.
Speaker Change: In conjunction with these efforts we are also leveraging new and expanded strategies that drive engagement and grow affinity for our brand, including expanding our social presence, which is approaching 400000 followers.
Larry: Despite the soft ALF scene in the third quarter, since 2019, our average order size has grown organically at a 2% cager, and we continue to expect a 3-4% ALF cager moving forward.
Speaker Change: We also continue to differentiate our platform and drive marketing efficiencies through game Center, which is similarly approaching 400000 lifetime users playing games and our App.
Larry: I would also note there were several large concert tour cancellations in the third quarter which were headwinds to marketplace GOV and total marketplace orders.
James
Speaker Change: As we've shared in the past our engagement efforts are proving successful with game center users frequently browsing tickets, while playing which is translating to app orders. We are excited to share that 95% of ticket orders from game Center users now occur within our App incurring nearly zero marketing expense.
Larry: We delivered 187 million of revenues in the third quarter, roughly flat year-over-year, despite the decline in marketplace G.O.D.
Larry: We delivered strong unit economics, led by a 17.5% take rate, which was up 200 basis points year over year.
The End
Larry: We delivered 34 million of adjusted EBITDA on the third quarter which was slightly higher year-over-year. We are pleased with our 18% adjusted EBITDA margin despite lower marketplace GOV than anticipated.
Speaker Change: Orders from repeat customers weather driven through game center engagement or through other initiatives such as our industry, leading vivid seats rewards program are highly accretive and we look forward to incremental efficiencies as our investments in these initiatives have more room to run.
The End of The End
Larry: Lastly, on guidance, we now expect 2024 Marketplace GOV to be in the range of 3.8 to 4.0 billion, 2024 revenues in the range of 760 to 780 million, and 2024 adjusted EVA DAW in the range of 145 to 165 million.
Speaker Change: Next I'd like to take a moment to highlight the progress and efficiencies that we're continuing to drive through synergies with our Vegas Dot Com acquisition.
Speaker Change: Early on we began cross lifting complementary vivid seats inventory on Vegas Dot com we.
Larry: These revised ranges incorporate challenging concert supply dynamics, as well as continued marketing intensity expected in the fourth quarter, along with a range of outcomes for remaining 2025 concert on sale.
Speaker Change: We are excited to share that orders from cross listed inventory are run rating at approximately 1% of our marketplace GOP additional.
Speaker Change: <unk> as we discussed last quarter, our cross sell campaign to convert biggest dotcom customers to visit customers in their home markets is off to a promising start with nearly 50% of cross sell emails being opened by customers. This campaign is now bearing fruit and converting to incremental orders and new Vivek <unk>.
Larry: We will continue to operate with discipline and anticipate the return of concert industry growth in 2025.
That you stand.
Stan: Thanks Larry. Wrapping up, we delivered key strategic progress in the third quarter and continued to position our platform for long-term growth and profitability.
Speaker Change: Customers.
Speaker Change: As more Vegas dotcom cohorts age to their next live event purchased back home. We believe this channel will ultimately be another contributor to profitable <unk> growth.
Stan: Strong consumer demand for live events continues and we expect an acceleration in industry growth in 2025 as favorable tailwinds for live events intersect with normalizing supply. With that, operator, let's open it up for questions.
Speaker Change: As we think about our Tam we continue to make great progress with our investments and strategically building out our global platform. As we've discussed previously we are internationalize, our platform and capabilities to scale efficiently as we expand our tam across geographies.
Thanks for watching!
Speaker Change: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced.
Speaker Change: To withdraw your question, please press star 11 again. We ask that you please limit to two questions. We will now begin our question and answer session.
Speaker Change: We remain focused and on track to launch operations in select geographies by the end of the year.
On the seller side of our marketplace. We are excited to announce that our innovative pricing tool skybox drive recently exited its beta phase and was met with rapid demand.
Speaker Change: Andrew Marok, with Raymond James, please go ahead with your question.
Speaker Change: Hi, thanks for taking my questions. I was wondering if you could dig into the implied take-rate guidance in 4Q a little bit. We saw 2Q3Q come up above recent trends and it looks like 4Qs may be coming back down a little bit, so just wondering if you could get into some of the drivers behind that and maybe how your loyalty program is playing into that.
Speaker Change: As a result, we are already in the processes of Onboarding over 100 users and also have a sizable waitlist of prospective users.
We are pleased with the reception of our product, which is turnkey integrated and exclusive to our skybox ERP and leverages the power of vivid seeds marketplace data.
Yeah, thanks, Andrew. Yeah, I think it's bad.
Speaker Change: We look forward to driving incremental adoption with the hundreds of additional skybox sellers on our waitlist.
Speaker Change: As you noted, strong performance on Kate Gray from Q2, Q3, I think that's a combination of a couple factors. Some of which we think will continue. Some of which I think we want flexibility. Right, so we're always.
Speaker Change: It's important to remember that skybox remains the industry, leading ERP with over 55% of our professional sellers exclusively using our ERP to run their businesses.
Looking to balance
Speaker Change: The added functionality of Skybox drive is a significant step that will further enforced the stickiness of skybox and fortify our already leading position with professional sellers.
Speaker Change: Take great and volume and as you can imagine if you try to push take great that puts pressure on volume and the inverse is also true and depending on how market environments evolve we want to make sure that we're retain the ability to flex accordingly.
Speaker Change: Lastly, I wanted to share that we recently announced vivid seats was included in Newsweek's list of America's Best customer service 2025, and the ticketing category for the fifth time as.
The second piece, I'd say, you know, this all.
Speaker Change: very based on mix, but generally speaking, you know, World Series is a quite high ticket or high AOS event.
Speaker Change: As a company that is focused on rewarding fan and creating the most exceptional experiences in our industry. We are proud to be recognized again by Newsweek for our excellence in customer service.
and when World Series...
Speaker Change: In summary, we made substantial strategic progress during the quarter, particularly through unlocking synergies with Vegas, dotcom and with the full launch of Skybox drive we are confident that the differentiated products and initiatives fostering stickiness to our platform will drive long term growth and value in our marketplace.
Speaker Change: Take Race. And I don't think it would be unreasonable to call the World Series match-up this year, the dream scenario. And so all I think that's a very nice answer on a nominal basis when you look at percentage take rates that will create a little bit of a downward pressure.
Speaker Change: Both in North America and abroad with our imminent international launch in the meantime, we will continue to operate with discipline and flexibility that we demonstrated in the third quarter.
Speaker Change: Thank you. You had dream scenario. I think Yankee stands may argue with that, but maybe a higher level question as it relates to kind of the overall ecosystem and they'll jump back in the queue. Thank you, bud.
Speaker Change: With the anticipated return of concert growth in 2025, we expect to return to organic growth and to continue delivering a double digit growth CAGR over the long term.
Speaker Change: When you're talking about 24 being a digestion year, I know normal has kind of been hard to come by since the pandemic, but in kind of a normalized environment, do you see this largely as a cycle like a couple of big years, a digestion year, or is it something that's kind of just...
Speaker Change: With that I will turn it over to Larry for a more detailed review of the quarter.
Larry Seay: Thanks, Dan.
Larry Seay: In the third quarter of 2024, we generated $872 million of marketplace T O P. A 13% year over year decline.
idiosyncratic based on when big artists decide to tour.
Yeah, it's a great question.
Larry Seay: The drop in marketplace <unk> was driven by an 11% year over year reduction in average order size and a 2% year over year decline in total marketplace orders.
The phrase that we...
Use most often on our side is a bent-knit [inaudible]
and I think you're going to have multiple. So, Paul,
Larry Seay: Our lower average order size as a result of pressure on concert AOS, resulting in part from a softer stadium lineup along with our acquisition, bringing lower average order sizes.
Speaker Change: Drivers of variants are multiple fine curves happening across the various leaves and categories that can blend together into it.
Speaker Change: You're more difficult to predict trends. So if you were to focus exclusively on concerts, which I think is the story of this quarter.
Larry Seay: Despite the soft <unk> in the third quarter since 2019, our average order size has grown organically at a 2% CAGR and we continue to expect a 3% to 4% CAGR moving forward.
One, two, three, which is a bit more concert heavy.
Larry Seay: I would also note there were several large concert tour cancellations in the third quarter, which were headwinds to marketplace.
Speaker Change: You saw particularly challenging cons for the lineup last year at the top of the ticket was quite strong and diversified across a number of artists but
Larry Seay: Total marketplace orders.
Larry Seay: We delivered $187 million of revenues in the third quarter roughly flat year over year. Despite the decline in marketplace Geo view.
Speaker Change: The Tippy Top was particularly strong. You move into this year just a different story, right? A more distributed number of artists playing in smaller venues. And so you had fairly meaningful headwind there.
Larry Seay: We delivered strong unit economics, whereby a 17, 5% take rate, which was up 200 basis points year over year.
Speaker Change: Clip the script a little bit to sports.
Larry Seay: We delivered $34 million of adjusted EBITDA in the third quarter, which was slightly higher year over year we.
Larry Seay: We are pleased with our 18% adjusted EBITDA margin, despite lower marketplace GOP than anticipated.
Larry Seay: Lastly on guidance, we now expect 2024 marketplace <unk> to be in the range of three eight to 4.0, Brian.
Larry Seay: <unk> 2020 for revenues in the range of $760 million to $780 million in.
Larry Seay: In 2024, adjusted EBITDA in the range of $145 million to $155 million.
Larry Seay: These revised ranges incorporate challenging concert supply dynamics as well as continued marketing intensity expected in the fourth quarter.
Larry Seay: Along with a range of outcomes for our remaining 2025 concert on sales.
Speaker Change: But I do think it is fair to assume some level of oscillation based on event mix much of which is exogenous and not really indicative of fundamental trends.
Larry Seay: We will continue to operate with discipline and anticipate the return of concert industry growth in 2025.
Speaker Change: Back to you Sir.
Speaker Change: Understood. Thanks for the color I appreciate it.
Thanks, Larry wrapping up we delivered key strategic progress in the third quarter and continued to position our platform for long term growth and profitability star.
Speaker Change: Thank you Andrew.
Speaker Change: Our next question will come from Maria reps go ahead Maria.
Speaker Change: Strong consumer demand for live events continues and we expect an acceleration in industry growth in 2025 as favorable tailwind for live events intersect with normalizing supply.
Maria: Great. Good morning. Thanks, so much for taking my questions. Firstly can you maybe talk about your expectations for the broader industry growth next year sort of given the potentially Trump.
Maria: More robust content supply calendar comping in week here I guess, how should we think about growth relative to a more normalized high single digit growth rate.
Speaker Change: With that operator, let's open it up for questions.
Speaker Change: Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again, we ask that you please limit to two questions.
Speaker Change: Hey, Maria Thanks for the question, Yeah look I think as we as we've discussed on the on the prepared remarks, and I think today and I think what we've seen.
Maria: This year and maybe.
Adding a little bit more color back to beyond the distribution of the artists on the concert side I think you had a.
Speaker Change: We will now begin our question and answer session.
Speaker Change: Andrew Moreau with Raymond James. Please go ahead with your question.
Maria: Sort of a retrenchment or digestion of the venues as well, where we certainly saw much larger concentration of arenas versus stadiums certainly reflected by others in the industry as well.
Andrew Moreau: Hi, Thanks for taking my questions.
Andrew Moreau: I was wondering if you could dig into the implied take rate guidance and <unk> a little bit we saw through Q3 Q come up above recent trends and it looks like <unk>, maybe coming back down a little bit. So just wondering if you could get into some of the drivers behind that and maybe how your loyalty program is playing into that.
Maria: As we look forward to.
Maria: Next year, we remain really bullish about the secular trends that we've seen in the category. We certainly heard I think others in the industry remark about how there will be a return.
Speaker Change: Yes, Thanks, Andrew.
Andrew Moreau: Yes, I think as.
Maria: Two stadium tours in in strength next year and I think we remain excited about about that prospect.
Andrew Moreau: Hi.
Andrew Moreau: As you noted strong performance on take rate in Q2 or Q3.
Andrew Moreau: The combination of a couple of factors.
Maria: Certainly as we've been looking at it we we use the data that we have available tangibly and we remain I think optimistic and looking forward as as the slate for next year continues to unveil itself.
Andrew Moreau: Some of which we think will continue.
Andrew Moreau: Some of which I think we want flexibility alright, so were always.
Andrew Moreau: Looking to balance take rate and volume.
Maria: Got it and then I just wanted to get a little bit more color sort of on your Q4 full year guidance, our implied Q4 guidance.
Andrew Moreau: And as you can imagine if you try to push take rates.
Andrew Moreau: Put pressure on volume and the inverse is also true.
Maria: So I think your prior guidance sort of suggested that the strong 2025 concert lineup should sort of support sales in Q4 can you maybe just talk about what has changed here more recently is it just the timing of some of those events kind of okay with.
Andrew Moreau: And depending on how market environments evolve, we want to make sure that we're retaining the ability to flex accordingly.
Andrew Moreau: Second piece I would say this.
Andrew Moreau: Very based on mix, but generally speaking.
Maria: With them shifting sort of later into the year or.
Andrew Moreau: World series as they can.
Maria: Is there anything else.
Andrew Moreau: White high ticket.
Maria: Keep in mind you.
Maria: Understanding that sort of thing.
Hi.
Andrew Moreau: Ann.
Maria: Near term dynamics here, a little bit weaker.
Andrew Moreau: And when World series increases.
Andrew Moreau: Increases as a percentage of the book of business.
Maria: Yes.
Maria: Sure.
Andrew Moreau: We'll have a deep waiting effect on take rates and I don't think it would be unreasonable to call. The world series matchup this year the dream scenario.
Maria: I think there's two things.
Maria: Happening the first.
Maria: Yes, I think we've commented on.
Maria: And you can see in the numbers softness in the concert slate in Q3.
Andrew Moreau: And so while I think thats, a very nice to answer on a nominal basis, when youll get percentage take rate settled.
Maria: Until the next wave of on sales happens in mass.
Andrew Moreau: Create a little bit of a downward pressure.
Speaker Change: Got it. Thank you your dream scenario I think a Yankees fans may argue with that but maybe maybe a higher level question as it relates to kind of the overall ecosystem and then I'll jump back in the queue, but.
Maria: Presume that that softness with continue sorry, do you start moving into Q4 call. It.
Maria: Yes.
Maria: Softer than expected performance, we saw in August and September in the concert space continues into October it's not unreasonable.
Speaker Change: You are talking about 24 being a digestion year I know normal has kind of been hard to come by since the pandemic, but in kind of a normalized environment do you see this largely as a cycle like a couple of big gears a digestion year.
Maria: Your appellation.
Maria: And then yes, we have we have talked about hopes.
Maria: Expectations for a robust calendar we've seen.
Speaker Change: Or is it something thats kind of just idiosyncratic based on when big artist decided to tour.
Maria: A few.
Maria: Coal play Oasis, where just the soul.
Maria: Not enough as of today to declare victory on it being a robust calendar, so theres still a fair bit of speculation.
Speaker Change: Yes, it's a great question.
Speaker Change: The phrase that we.
Speaker Change: Used most often on our side, it's a mix.
Maria: So what we tried to strike was.
Speaker Change: And I think you can have multiple.
Maria: Our balance where it's closer to reflecting what we know.
Drivers of the variance or multiple sine curve happening across the various leads in categories.
Maria: While acknowledging that there's been positive comments those positive comments just haven't manifested in tangible reliable announcements.
Speaker Change: That can blend together.
Speaker Change: Into it.
Speaker Change: A more difficult to predict.
Speaker Change: Trends.
Speaker Change: So if you were to focus exclusively on concerts.
Maria: Yes.
Maria: Got it thank you so much.
Speaker Change: Which I think is the <unk>.
Speaker Change: Story of this quarter.
Maria: Thank you Maria.
Speaker Change: When Q3, which is a bit more concert heavy.
Maria: Standby for our next question.
Speaker Change: You saw particularly challenging comps or the lineup last year at the top of the ticket was quite strong and diversified across a number of artists.
Speaker Change: Our next question comes from Ryan to go go ahead Ryan.
Ryan: Good morning, guys.
You mentioned high marketing intensity, that's been a common theme now for several quarters I.
Speaker Change: The Tippy top was particularly strong you move into this year, just a different story right a more distributed.
Speaker Change: I guess it is consistent with our checks as well and Moody's actually cut their free cash flow estimate by nearly $200 million and cut in half on one of your scale competitors, which is evidence of that but given this ongoing.
Speaker Change: A number of artists playing in smaller venues.
Speaker Change: And so you had a fairly meaningful headwinds there.
Ryan: Headwind does it make you rethink.
Speaker Change: With the script, a little bit to sports.
Ryan: It's near term and then maybe even longer term strategy on customer acquisition.
Speaker Change: This year in Q1, we touched on a little bit you had a really nice college football playoff matchup lapping a not so good college football playoff matchup heading into 'twenty five youll have expanded playoffs.
Ryan: Yeah, Hey, Ryan Thanks for the question.
Ryan: Yes, I mean look I think adding spot on with what you've seen in your research.
Probably set up for another nice event mix there.
Ryan: When when others go out and I think.
Speaker Change: Great World series match up this year pretty poor World series match up from a ticketing standpoint last year. So those are competing.
Ryan:
Ryan: Take aggressiveness to the point of certain uneconomic volume I think we're always faced with decisions that we have to make both in the near term and the long term and what I would say is as you've seen evidence.
Speaker Change: You go to a theater you had a record setting Matt right on sale and tour happening last year not the same thing happening, Michigan, you sort out the map all of those together.
Ryan: I think our investments and certainly our results we've always prioritize long term value right I think the investments that we may continue to differentiate our product ecosystems continue to allow us almost if you think about mix to be fairly.
Speaker Change: Across the categories you can have.
Speaker Change: <unk> headwinds and it adds to some of the challenging precisely predicting where it'll go.
Speaker Change: But I do think it is fair to assume some level of oscillation based on that mix much of which is exogenous and not really indicative of fundamental trends.
Ryan: Prescriptive and direct about the volume that we do target right I think we have the industry's leading loyalty program you can certainly see.
Understood. Thanks for the color I appreciate it.
Ryan: Fortifying the product that we have across both sides of the marketplace and as evidence even in a supply challenged quarter. The ability to continue to deliver strong unit economics. So I think what youll see from US is certainly a disciplined in how we execute our focus on the long term and should market environment.
Andrew Moreau: Thank you Andrew.
Speaker Change: Our next question will come from Maria reps go ahead Maria.
Maria: Great. Good morning. Thanks, so much for taking my questions. Firstly can you maybe talk about your expectations for the broader industry growth next year sort of given the potentially.
Ryan: <unk> I think the ability to always pivot and pivot nimbly to capture opportunity.
Speaker Change: More robust conference supply calendar Comping, a week here I guess, how should we think about growth relative to a more normalized high single digit growth rate.
Helpful.
Speaker Change: Good question Skybox drive congrats on moving that out of beta testing into full market launch what are you seeing the most excitement I know, it's early with that Onboarding, but is it with the.
Speaker Change: Hey, Maria Thanks for the question, Yes, I think as we as we've discussed on the on the prepared remarks, and I think today and I think what we've seen.
Speaker Change: The smaller professional sellers of the bigger ones across the board is it.
Speaker Change: This year and maybe.
Speaker Change: Getting new users.
Speaker Change: Adding a little bit more color back to beyond the distribution of the artists on the concert side you know I think you had a.
Speaker Change: Users on the ERP system is kind of a way to further evidenced that.
Speaker Change: Or is it with the existing customers et cetera, et cetera, but where are you seeing the most success early on.
Speaker Change: Sort of a retrenchment or digestion of the venues as well, where we certainly saw much larger concentration of arenas versus stadiums certainly reflected by others in the industry as well.
Greg: Thanks, Greg Yes, Great question look I think we're excited and pleasantly surprised at the pace of the adoption and excitement I think as you heard in the remarks, we're in over 100 people already on boarded onto the platform.
As we look forward to.
Speaker Change: Next year, we remain really bullish about the secular trends that we've seen in the category. We certainly heard I think others in the industry remark about how there will be a return.
Greg: As we brought it out of beta and maybe piecing that apart certainly as you think about the range of sellers I think its certainly across size, we've seen lots of interest and rapid adoption. If you think about new users versus under skybox versus existing it skews a little bit in this early stage to existing users.
Speaker Change: Two stadium tours in in strength next year and I think we remain excited about about that prospect.
Speaker Change: Certainly as we've been looking at it we we use the data that we have available tangibly and we remain I think optimistic and looking forward as as the slate for next year continues to unveil itself.
Greg: And naturally so as you can think about the way we design that was meant to be turnkey integration for existing skybox users, where it is almost no effort to bring folks onboard.
Speaker Change: Got it and then I just wanted to get a little bit more color sort of on your Q4 full year guidance on slide Q4 guidance.
Greg: And now they have access to an industry leading product that we believe has wonderful differentiated features and unique data that is powered by the <unk> marketplace. So.
Speaker Change: So I think your prior guidance sort of suggested that the strong 2025 concert lineup should sort of support sales in Q4 can you maybe just talk about what has changed here more recently is it just the timing of some of those events kind of okay with.
Greg: Really pleasantly surprised and again very optimistic about the prospects as we have seen I think rapid rapid adoption in these early days.
Greg: Thanks, guys. Good luck.
Speaker Change: But with them shifting sort of later into the year or.
Ryan: Thank you Ryan.
Greg: Yes.
Speaker Change: Is there anything else.
Speaker Change: Our next question comes from Dan Kronos go ahead Deb.
Speaker Change: Keep in mind you.
Speaker Change: Understanding that sort of the near term dynamics here a little bit weaker.
Dan Kronos: Great. Thanks.
Speaker Change: I'm going to give you a few rapid fire Stan.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: I think theres two things.
Speaker Change: Just any thoughts on the change in administration, and what that means for either antitrust or consolidation and M&A in the space.
Speaker Change: Happening the first.
Speaker Change: Yes, I think we've commented on.
Speaker Change: And you can see in the numbers softness in the concert slate in Q3.
Speaker Change: Also maybe Stan just thoughts on I know this is a very common topic, but we've seen some sports venues trying to sort of priced in the secondary Delta. These days. So just your thoughts on.
Speaker Change: And until the next wave of on sales happens in mass.
Speaker Change: Presume that that softness would would continue so as you start moving into Q4 call. It.
Speaker Change: Being able to maintain kind of that gap with primary and then lastly for Larry.
Speaker Change: Softer than expected performance, we saw in August and September in the concert space continues into October it's not unreasonable extra.
Just wanted to get a sense I know, there's a ton of noise with cancellations and moving pieces here in venue mix, but just free cash conversion.
Extrapolation.
Speaker Change: Dynamics, just when do we get back to that 60% to 70% flow through and are there any other kind of puts and takes we might want to think about thank you.
Speaker Change: And then yes, we have we have talked about hopes and expectations for a robust calendar we've seen.
Speaker Change: A few.
Speaker Change: Hey, Dan Thanks for the rapid fire, we will try to rapidly respond as well on.
Speaker Change: Coal play Oasis.
Speaker Change: The soul.
Speaker Change: On the first one.
Speaker Change: Not enough as of today.
Speaker Change: Still really early days, so very hard to say I think what's certain is that there will be change and it looks like there will be change across the spectrum, there and so I think us along with everybody else, we'll continue to watch.
<unk> victory on it being a robust calendar. So there is still a fair bit of speculation.
Speaker Change: So what we tried to strike was.
Speaker Change: Our balance where it is.
Speaker Change: Watch and ensure that we have line of sight and a pulse on what that means for the industry.
Speaker Change: Closer to reflecting what we know.
Speaker Change: While acknowledging that there's been positive comments.
Speaker Change: On the on the second one is as you as you look at I think.
Speaker Change: Those positive comments just haven't manifested.
Speaker Change: Tangible reliable announcements in that yet.
Speaker Change: Where youre seeing perhaps as you allude to venues I think I remain really centered on the fact that the secondary ecosystem benefits greatly.
Speaker Change: Got it thank you so much.
Maria: Thank you Maria.
Speaker Change: All who participate from a distribution standpoint that includes the venue that includes the rights holders.
Speaker Change: Standby for our next question and our next question comes from Ryan to go go ahead Ryan.
Speaker Change: And certainly on the consumer side, the incremental distribution that we provide remains really strong and so I think.
Ryan: Good morning, guys. Stan you mentioned high marketing intensity, that's been a common theme now for several quarters.
Speaker Change: As we look into the future we remain really confident that.
Working together across the ecosystem. This industry and this platform will continue to see lots of growth as consumers frankly look for more choice look for more option more distribution.
Ryan: It's consistent with our checks as well and Moody's actually cut their free cash flow estimate by nearly $200 million and cut in half on one of your scale competitors, which is evident of that but given this.
Speaker Change: And continue to prioritize live events moving forward.
Ryan: Ongoing headwind does it make you rethink.
Ryan: If it's near term and then maybe even longer term strategy on customer acquisition.
Speaker Change: And Larry the free cash question, yes, the cash flow conversion.
Ryan: Yeah, Hey, Ryan Thanks for the question.
Speaker Change: Nothing's changed with our fundamental model and belief and are 60% plus conversion normalized growth environment.
Ryan: Yes, I mean look I think adding spot on with what you've seen in your research.
Ryan: When when others go out and I think.
Speaker Change: We've talked about the bridge from EBITDA to cash flow you've got some capex.
Ryan: Take aggressiveness to the point of certain uneconomic volume I think we're always faced with decisions that we have to make both in the near term and the long term and what I would say is as you've seen evidence.
Speaker Change: Thats a negative thats typically offset by.
Speaker Change: Benefit from our working capital flows.
Speaker Change: And then you have interest in taxes, and that's sort of the bridge from EBITDA to actual cash on the balance sheet.
Ryan: I think our investments and certainly our results we've always prioritize long term value right I think the investments that we may continue to differentiate our product ecosystems continue to allow us almost if you think about mix to be fairly.
Speaker Change: What we've seen in 2024, certainly have come in as evidenced by our reduction.
Ryan: Prescriptive and direct about the volume that we do target right I think we have the industry's leading loyalty program you can certainly see us.
Speaker Change: The guidance with less top line growth and so that working capital line, which was a meaningful tailwind in 2023 has turned into a meaningful headwind in 2024.
Ryan: Fortifying.
Ryan: The product that we have across both sides of the marketplace and as evidence even in a supply challenged quarter. The ability to continue to deliver strong unit economics. So I think what youll see from US is certainly a discipline in how we execute our focus on the long term and should market environment change I think the ability to always.
Speaker Change: So when we look across the combined view of 23% and 24 in 2023, we had something approaching $85, 90% cash conversion, which is obviously higher than our target by quite a bit that attributable to the working capital benefit.
Ryan: <unk> pivot and pivot nimbly to capture opportunity.
Speaker Change: This year, we're trending quite a bit below our target.
Speaker Change: Closer to not generating cash this year.
Ryan: Helpful color.
Ryan: Follow up question Skybox drive congrats on moving that out of beta testing into full market launch.
Speaker Change: <unk> smooth them across it gets you in the vicinity of a 50% cash conversion and then if you sort of normalize the growth rate against better you'd be right back to that 60 ish percent range. So as we look forward to 2025.
Ryan: Are you seeing the most excitement I know, it's early with that Onboarding, but is it with.
Ryan: The smaller professional sellers the bigger ones across the board is it.
Speaker Change: Expecting.
Ryan: Getting new users.
Return to growth assuming things.
Ryan: Users on the ERP system is kind of a way to further evidenced that.
Speaker Change: <unk> steady I think that 60%, 70% conversion for the right paradigm here.
Ryan: Or is it with the existing customers et cetera, et cetera, but what are you seeing the most success early on thanks, Yeah. Thanks, Ryan Yeah. Great question look I think we're excited and pleasantly surprised at the pace of the adoption and excitement you know I think as you heard in the remarks, we're in over 100 people already on boarded onto the platform as.
Speaker Change: Great. Thanks, so much guys appreciate it.
Speaker Change: Thank you.
Speaker Change: Standby for our next call. Our next question excuse me. Our next question comes from Cameron <unk> with Morgan Stanley Go ahead Cameron.
Cameron: Thanks, Good morning.
Ryan: As we brought it out of beta and maybe piecing that apart certainly as you think about the range of sellers I think its certainly across size, we've seen lots of interest and rapid adoption. If you think about new users versus under skybox versus existing it skews a little bit in this early stage to existing users.
Cameron: Two if I can first as we think about the industry headwinds and then the potential reversal heading into next year I was wondering if you could give provide some color on which.
Cameron: Across the channel square that pressure's coming from so whether it's broad based whether it's primarily.
Ryan: And naturally so as you can think about the way we design that was meant to be turnkey integration for existing skybox users, where it is almost no effort to bring folks onboard and now they have access to an industry leading product that we believe has wonderful differentiated features and unique data that's powered by the <unk> marketplace. So.
Cameron: Consumer to consumer sale headwind, whether to what extent, it's a professional seller kind of headwind in reverse so let's just say.
Cameron: A little bit of channel on back of aircrafts that dynamic.
Cameron: <unk>.
Cameron: And then an industry kind of broader industry question. There are some headlines around the reason in Oasis tour.
Ryan: Really pleasantly surprised and again very optimistic about the prospects as we've seen I think rapid rapid adoption in these early days.
Cameron: Cancellations happening.
Cameron: Ticket inventory that was being resold I think I think that was just regarding the U K.
Ryan: Thanks, guys. Good luck.
Cameron: So maybe not any real direct impact to you guys, but I'd be curious if you have any thoughts on whether that's a practice that you think could.
Thank you Ryan.
Speaker Change: Our next question comes from Dan Carlos Go ahead Deb.
Cameron: Become more common or whether you see that as just kind of a one off situation.
Dan Carlos: Great. Thanks.
Speaker Change: I'll just give you a few rapid fire Stan.
Darren: Thanks, Darren ill take the first part.
Stan Chia: Any thoughts on the change in administration, and what that means for either antitrust or consolidation and M&A in the space.
Cameron: And as we think about.
Darren: Where.
Darren: There's been headwinds.
I would not call out a delineation between.
Stan Chia: Also maybe Stan just thoughts on I know this is a very common topic, but we've seen some sports venues trying to sort of priced in the secondary Delta. These days. So just your thoughts on.
The type of seller.
Darren: I would say.
Concerts.
Darren: If you look at the category level delineation.
Darren: Concerts quite soft, particularly challenging year over year comp in Q3, but.
Stan Chia: Being able to maintain kind of that gap with primary and then lastly for Larry.
Darren: Sequentially soft as well I would contrast that sports has had.
Larry Seay: Just wanted to get a sense I know, there's a ton of noise with cancellations and moving pieces here in venue mix, but just free cash conversion diner.
Darren: Quite strong year, frankly above their typical or that category typical growth rate and that has.
Speaker Change: <unk> just when do we get back to that 60% to 70% flow through and are there any other kind of puts and takes we might want to think about thank you.
Darren: Some ebbs and flows throughout the year, but it's been it started out strong and strong a really nice outperformer and then theater I would put in the consistent with long term trajectory. So it's really been a <unk>.
Speaker Change: Hey, Dan Thanks for the rapid fire, we will try to rapidly respond as well on the first one.
Darren: <unk> beat our strength, that's what balance our belief that this is not a demand issue.
Speaker Change: Still really early days, so very hard to say I think what's certain is that there will be change and it looks like there will be change across the spectrum, there and so I think us along with everybody else, we'll continue to watch and ensure that we have line of sight and a pulse on what that means for the industry.
Darren: Concert so big software, we think it really has been.
Darren: A relative short supplied weakening.
Darren: The other slice on where has it been tougher sledding year over year in what's been a headwind would be by marketing channel and I think we've alluded to it but certainly the performance marketing sleep wear.
Speaker Change: On the on the second one is as you said.
Speaker Change: As you look at I think where you're seeing perhaps as you allude to venues I think I remain really centered on the fact that the secondary ecosystem benefits greatly all who participate from a distribution standpoint that includes the venue that includes the rights holders.
Darren: Select select competitors that have been discussed earlier on the call has taken a.
Darren: Meaningfully more aggressive posture.
Darren: And Thats put pressure on the incremental order for incremental dollar of <unk>, which.
Speaker Change: And certainly on the consumer side, the incremental distribution that we provide remains really strong and so I think I think as we look into the future. We remain really confident that we're.
Darren: By our math is coming through in an economic way.
Darren: Yes.
Darren: Your other question Kamran I think yes, we read it I think very similar to the to you that I think that pertain more to the U K and I think as we look at the spacing I think we've always looked at.
Speaker Change: Working together across the ecosystem. This industry and this platform will continue to see lots of growth as consumers frankly look for more choice look for more option more distribution.
Darren: During that we provide consumers.
Speaker Change: And continue to prioritize live events moving forward.
Darren: Wonderful platform.
Darren: For selecting tickets.
Darren: We've got a great buyer guarantee we've got we've just recently been recognized as best consumer service.
Larry Seay: And Larry the free cash question, yes, the cash flow conversion.
Darren: By Newsweek, again, and ticketing and I think we continue to see I think lots of strength in distribution and so I think we will continue to provide a platform with security and confidence for our consumers.
Larry Seay: Nothing's changed with our fundamental model and belief and are 60% plus conversion normalized growth environment.
Darren: We continue investing in that moving forward.
Larry Seay: We've talked about the bridge from EBITDA to cash flow.
Darren: Helpful. Thanks, guys.
Larry Seay: Got some capex.
Kamran: Thanks Kamran.
Larry Seay: Thats a negative thats typically offset by.
Speaker Change: Our next question will come from Thomas Forte with Maxim Group go ahead Thomas.
Larry Seay: Benefit from our working capital float.
Larry Seay: And then you have interest taxes, and Thats sort of the bridge from EBITDA to actual cash on the balance sheet.
Thomas Forte: Great. Thanks. So one question one follow up can you give your current thoughts on some of the <unk>.
Thomas Forte: Fast growing emerging sports trends.
Larry Seay: What we've seen in 2024, certainly have come in as evidenced by our reduction.
Thomas Forte: Women's professional sports soccer boats MLS and international events expected to be held in the U S.
Larry Seay: Guidance with less top line growth and so that working capital line, which was a meaningful tailwind in 2023 is targeting to a meaningful headwind in 2024.
Thomas Forte: Yes.
Thomas Forte: Yeah, Hey, Tom Yes, really.
Thomas Forte: I mean, great great year for that as we continue to see I think.
Thomas Forte: Certainly earlier in the year and moving forward I think what started with record setting.
Larry Seay: So when we look across the combined view of 23% and 24 2023, we had something approaching 80, 590% cash conversion, which is obviously higher than our target by quite a bit that attributable to the working capital benefit.
Thomas Forte: Womens NCWA performance than continuing to move as some of those stars progressed into the WNBA. So I think we.
Thomas Forte: We've continued to see strength and growth there and we remain really excited I think about those.
Larry Seay: This year, we're trending quite a bit below our target.
Those being contributors to the overall sports categories in ways that they haven't before.
Larry Seay: Closer to not generating cash this year.
Larry Seay: <unk> smooth them across it gets you in the vicinity of a 50% cash conversion and then if you sort of normalize the growth rate again, you'd be right back to that 60 ish percent range. So as we look forward to 2025.
Thomas Forte: Great and then for my follow up question can you again current thoughts this time on capital allocation either buying back shares investing in the business strategic M&A.
Larry Seay: Expecting.
Larry Seay: Return to growth assuming things.
Thomas Forte: Okay.
Yes, I think.
Steady I think that 60%, 70% conversion the right paradigm here soon.
Thomas Forte: Same priorities remain.
Thomas Forte: Yes.
Thomas Forte: We'll always look for.
Speaker Change: Great. Thanks, so much guys I appreciate it.
Thomas Forte: Strategically and financially accretive targets.
Speaker Change: Thank you.
Thomas Forte: It's not lost on us.
Speaker Change: Standby for our next call. Our next question excuse me our next.
Latter part is more difficult to achieve when when our multiple is lower than it historically.
Speaker Change: Next question comes from Cameron <unk> with Morgan Stanley Go ahead Cameron.
Thomas Forte: So that will be a factor as we evaluate what can Jim the bar.
Cameron: Thanks, Good morning.
Speaker Change: Two if I can first as we think about the.
Thomas Forte: I think it also on a relative basis as you explore buying yourself back versus buying other assets, certainly where you're trading on a multiple basis is a factor.
Speaker Change: Industry headwinds and then the potential reversal heading into next year I was wondering if you could give provide some color on which.
Thomas Forte: On the latter as we.
Thomas Forte: Returning to cash generation and growth.
Speaker Change: Across the channel square that pressure is coming from so whether it's broad based whether it's primarily.
Thomas Forte: Yes, I think we continue to believe that buying ourselves back when were attractively priced is compelling.
Speaker Change: Consumer to consumer sale headwind, whether to what extent, it's a professional seller kind of headwind in reverse so just.
Thomas Forte: We've touched on in the past there's some.
Thomas Forte: Incremental considerations around.
Speaker Change: So a little bit of channel and backing aircrafts that dynamic.
Thomas Forte: How best to execute that but it does remain something of keen interest for us to resolve.
Speaker Change: If it's relevant.
Speaker Change: And then and then kind of a broader industry question. There was some headlines around the reason Oasis tour on cancellations happening.
Speaker Change: Great. Thanks for taking my questions.
Thomas Forte: Thank you Thomas.
Speaker Change: Our next question comes from Ralph with William Blair Go ahead Ralph.
Speaker Change: Ticket inventory that was being resold I think that was just regarding the U K on sales. So maybe not any real direct impact to you guys, but I'd be curious if you have any thoughts on whether that's a practice that you think could become more common or whether you see that as just kind of a one off situation.
Hey, good morning, Thanks for taking the questions two if I could just on international I think you had talked about launching by the end of the year, Stan maybe kind of just remind us of that opportunity and maybe give us a sense of the competitive nature and some of those markets versus what you might be temporarily seeing here and then maybe as a follow up.
Karen: Thanks, Karen I'll take the first part.
Speaker Change: In terms of incremental growth that you talked about 1% of Gms coming from cross sell at Vegas Dot Com.
Speaker Change: As we think about.
Speaker Change: Where.
Speaker Change: There's been headwinds.
Speaker Change: Like a good initial start here, but maybe if you could sort of frame that opportunity do you have the pieces in place to further scale at GMB contribution or just maybe give a sense, how you're thinking about that opportunity. Thank you.
Speaker Change: I would not call out a delineation between.
Speaker Change: The type of seller.
Speaker Change: I would say con.
Speaker Change: Concerts.
Ralph: Hey, Ralph.
Speaker Change: If you look at the category level delineation.
Speaker Change: On the first one I think we are.
Speaker Change: Concerts quite soft, particularly challenging year over year comp in Q3, but.
Speaker Change: We're well on on track and underway I think and internationalize ing the infrastructure.
Components of the platform right I think we've continued to make good progress and are certainly on track to launch.
Speaker Change: Sequentially soft as well I would contrast that sports has had.
Speaker Change: Quite strong year, frankly above their typical or that category typical growth rate and that has.
Speaker Change: Before the end of the year I think we continue to see the international landscape as a big opportunity, where we feel like our product and offering.
Speaker Change: Some ebbs and flows throughout the year, but it's been it started out strong and strong a really nice outperformer and then theater I would put in the consistent with long term trajectory. So it has really been.
Speaker Change: <unk> competes very nicely in what certainly from our research and optics look to be a less competitive dynamic than here in domestically and so I think we are excited about the ability to go compete and compete meaningfully.
Speaker Change: Sports and beat our strength, that's what balance our belief that this is not a demand issue.
Speaker Change: With a product that I think again is differentiated and will do quite well.
Speaker Change: Concert so big software, we think it really has been.
Speaker Change: A relative short supplied weakening.
Speaker Change: In that landscape.
Speaker Change: On the Vegas front I think we were still I would say early days, but already excited about the fact that we have.
Speaker Change: The other slice on where has it been tougher sledding year over year in what's been a headwind would be by marketing channel and I think we've alluded to it but certainly the performance marketing sleep wear.
Run rate at that 1% I'd say as we've primarily looked at driving the two synergies that we.
Speaker Change: <unk> had when we acquired the business one driving the accretive inventory across that as a distribution channel, which has proven to be a really really nice add to a to a platform that.
Speaker Change: Select select competitors that have been discussed earlier on the call has taken a.
Speaker Change: Meaningfully more aggressive posture.
Speaker Change: And Thats put pressure on the incremental order for incremental dollar of <unk>, which.
Speaker Change: Benefits from incremental selection on the other side, we've also seen as you've seen some of the highest.
By our math is coming through in an economic way.
Speaker Change: Yes.
Speaker Change: Your other question Kamran I think yes, we read it I think very similar to the to you that I think that pertain more to the U K and.
Speaker Change: Open rate and performance metrics from our CRM campaigns as those Vegas customers go back into their home markets.
Speaker Change: I think as we look at the space and I think we are.
Speaker Change: We introduced them to Vivek seats.
Speaker Change: <unk> always looked at.
Speaker Change: All the more so meaningful when you think about an aggressive dynamic where I.
Speaker Change: During that day, we provide consumers.
I think the landscape hasnt that people are out there competing and paying.
Wonderful platform.
Speaker Change: For selecting tickets.
Speaker Change: We've got a great buyer guarantee we've got we've just recently been recognized as best consumer service.
Speaker Change: Very large acquisition cost for users we have a free acquisition channel that we.
Speaker Change: By Newsweek, again, and ticketing and I think we continue to see I think lots of strength in distribution and so I think we will continue to provide a platform with security and confidence for our consumers.
We are excited about and we will continue to tap and invest in and where we can bring those users home in a very profitable manner.
Speaker Change: Continue investing in that moving forward.
Dan Kronos: Great. Thanks, Dan.
Speaker Change: Helpful. Thanks, guys.
Dan Kronos: Thank you everyone for your participation in today's conference call. This concludes todays vivid seats call. You may now disconnect. Thank you.
Speaker Change: Thanks Cameron.
Speaker Change: Our next question will come from Thomas Forte with Maxim Group go ahead Thomas.
Thomas Forte: Great. Thanks, So one question and one follow up can you give your current thoughts on some of the <unk>.
Speaker Change: Fast growing emerging sports trends.
Speaker Change: Women's professional sports soccer, both MLS and international events expected to be held in the U S.
Speaker Change: Yeah.
Yeah, Hey, Tom Yes, really.
Speaker Change: I mean, great great year for that as we continue to see I think.
Speaker Change: Certainly earlier in the year and moving forward I think what started with record setting.
Speaker Change: Womens NCWA performance than continuing to move as some of those stars progressed into the WNBA. So I think.
Speaker Change: We've continued to see strength and growth there and we remain really excited I think about those.
Speaker Change: Those being contributors to the overall sports categories in ways that they haven't before.
Speaker Change: Great and then for my follow up question can you again current thoughts this time on capital allocation either buying back shares investing in the business strategic M&A.
Speaker Change: Okay.
Speaker Change: Yes, I think.
Same priorities remain.
Speaker Change: We.
Speaker Change: We will always look for strategically.
Speaker Change: Strategically and financially accretive targets.
Speaker Change: It's not lost on us that latter part is more difficult to achieve when when our multiple is lower than expected historically.
Speaker Change: So that will be a factor as we evaluate what Jim the bar.
Speaker Change: I think it also on a relative basis as you explore.
Speaker Change: Buying yourself back versus buying other assets, certainly where you're trading on a multiple basis factor.
Speaker Change: On the latter as we.
Speaker Change: Returning to cash generation and growth.
Speaker Change: I think we continue to believe that buying ourselves back when were attractively priced is compelling.
Speaker Change: It was touched on in the past there is some incremental considerations around.
Speaker Change: How best to execute that but it does remain something of keen interest for us to resolve.
Speaker Change: Great. Thanks for taking my questions.
Speaker Change: Yes.
Speaker Change: Thank you Thomas.
Speaker Change: Our next question comes from Ralph with William Blair Go ahead Ralph.
Ralph: Hey, good morning, Thanks for taking the questions two if I could just on international I think you talked about launching by the end of the year, Stan maybe kind of just remind us of that opportunity and maybe give us a sense of the competitive nature and some of those markets versus what you might be temporarily seeing here and then maybe as a follow up.
Ralph: Terms of incremental growth that you're talking about 1% of GMB coming from cross sell that Vegas Dot com it.
Ralph: Seems like a good initial start here, but maybe if you could sort of frame that opportunity do you have the pieces in place to further scale at GMB contribution or just maybe give a sense, how you're thinking about that opportunity. Thank you.
Ralph: Hey, Ralph.
Ralph: I think on the first one you know I think we are.
Ralph: We're well on track and underway I think and internationalize ing the infrastructure.
Ralph: Components of the platform right I think we've continued to make good progress and are certainly on track to launch.
Ralph: Before the end of the year I think we continue to see the international landscape as a big opportunity, where we feel like our product and offering.
Ralph: <unk> very nicely in what certainly from our research and optics look to be a less competitive dynamic then.
Ralph: Here in domestically and so I think we are excited about the ability to go compete and compete meaningfully.
With a product that I think again is differentiated and will do quite well.
Ralph: That landscape.
Ralph: On the Vegas front I think we were still I would say early days, but already excited about the fact that we've <unk>.
Ralph: Run rate at that 1% I'd say as we've primarily looked at driving the two synergies that we.
Ralph: <unk> had when we acquired the business one driving the accretive inventory across that as a distribution channel, which has proven to be a really really nice add to a to a platform that.
Ralph: Benefits from incremental selection on the other side, we've also seen as you've seen some of the highest.
Ralph: Open rate and performance metrics from our CRM campaigns as those Vegas customers go back into their home markets.
Ralph: We introduced them to Vivek seats.
Ralph: All the more so meaningful when you think about an aggressive dynamic where I think the.
Ralph: Landscape has it that people are out there competing and paying.
Ralph: Very.
Ralph: Large acquisition cost for users we have a free acquisition channel that we are excited about and we will continue to tap and invest in and where we can bring those users home in a very profitable manner.
Dan Carlos: Great. Thanks, Dan.
Speaker Change: Thank you everyone for your participation in today's conference call. This concludes todays Vivek seeds call. You may now disconnect. Thank you.