Vivid Seats Inc.

Q4 2022 Earnings Conference Call


spk_0: the morning and welcome that a vivid see the fourth quarter twenty twenty two and in conference call followed management be bred remarks we will overlook call for una our knowledge than the call overtook eight couples please go ahead
spk_1: the morning and welcome to visit the fourth quarter twenty twenty to earn a conference call i am a couple had of investor relations at visit feet joining me today could accept that the defeat result or ten fancier chief executive officer and larry fed chief financial officer by now everyone should have access to the company's fourth quarter earnings press release valve earlier this morning we have also provided supplemental earning five the press release and earning slide are available on the investor relations page of the visit website and under third that vivid si dot com during the course of this call management mimic forward looking statements within the meaning of federal security flaws it forward looking statements are subject to the risks and uncertainty as described in the company's earnings preferably and other filing with the as easy on three call we will refer to address it either does and adjusted ebitda margin which are not under financial measures that provide useful information for our investors you will find an historical reconciliation of adjusted ebitda and adjusted ebitda margin the corresponding gap measure in the earnings press release supplemental earning five and as fifty filings and now i would like to turn the call over to them
spk_2: the morning everyone and thank you for joining us today twenty twenty two with a stellar year for live events and an exceptional year for the disease our team capitalized on strong demand continue to innovate and expand our sweet of leading marketplace product navigated the competitive landscape with agility and delivered on financial and strategic objective that strengthened our business for twenty twenty three and beyond he will take you through the fourth quarter and four year twenty twenty two financial results in detail and discuss our outlook for twenty twenty three but first i'd like to share highlights from our first full year as a public company and to get the progress we've made on strategic objectives looking first at the most recent fourth quarter i'm proud to report that we generated eight hundred and forty six million of marketplace jovi one hundred and sixty five million of revenue and thirty four million of adjusted ebitda for the four year twenty twenty two we delivered marketplace g of the a three point two billion revenues of six hundred million and adjusted he bizarre of one hundred and thirteen million a vivid seats we commit as a team to achieve our goal over the last year we've demonstrated our ability to leverage our robot tools and execute a deathly regardless of the environment which became more challenging of the your progress we continue to set new records and twenty twenty two with marketplace jovi and revenues both surpassing twenty twenty one's records by more than thirty percent twenty twenty three marketplace jovi in revenue also exceeded our initial guidance midpoint by ten percent even with unprecedented competitive pressures in the second half we deliver adjusted a bizarre within our guidance range while making deliberate investment to drive higher customer lifetime value as we all witnessed twenty twenty two was a phenomenal year for the life of that industry live events were back and then some after seeing them cancellation impact from the on the cranberries and the first quarter the risk of potential disruption from coven nineteen waned throughout the year as a result fans were able and eager to get out and see the artists and team they love among our event categories which include concert sports and theater concerts were a particular stand up benefiting from strong demand as well as a tailwind from postponed event originally scheduled for twenty twenty as a year progress macro economic pressures grew but live event the man remained resilient we consistently raised our guidance from marketplace jovi and revenues as we capitalized on strong demand we're hopeful that this resiliency continue than twenty twenty three but ultimately that will depend on how the economy of all and where consumers fire either spend that said exciting to were announcements from pop artists such as beyond the madonna metallica nc the in addition to several mega to were announcement last quarter are promising what's clear is that fans are passionate about their favorite artist and team and we continue to invest in that passer creating exceptional experiences and enabling fan to within more of their favorite event our focus on user engagement within our product ecosystem continue to be one of the pillars of our long term strategy and twenty forty two we rebranded integrated an enhanced vivid picks while continuing to grow our user base year over year we increased both our monthly active users and new accounts created by close to three hundred percent in the fourth quarter we launched in gameplay capability within vivid pick and now our daily fantasy sports users can place entries for contest covering the second half of the game weather fans are attending a live event or at home watching family plays entries as the game approaches and as the action of all this upgrade add another level of excitement to the vivid pick the experience of fans engage with their favorite teams and athlete as well as with other the ff players through social element this is especially beneficial for cultural touchstone events like the superbowl we also create exceptional experiences through our brand partnership that is rolling stone collaboration on exclusive live events are a key component of our partnership and for the third year we were proud to partner on the rolling stone live theories and bring to life won a superbowl weekend most anticipated event through our loyalty program vividly through are we surprised loyalty members with invitation to an exclusive live experience that expertly intersected the world the music culture and sports brand partnership and exclusives events such as the bring differentiated experience and value to our buyers in addition to driving brand awareness with the right audiences as we reflect on the past year many of our exciting announcements focus on the by your side of our marketplace including our real rewards for real fan campaign and our partnership with bleacher report and the new york post the quarter we are pleased to share a substantial development on the sellers that of our marketplace driver has been the industry leading e r p for professional sellers for years and this quarter we are excited to announce skybox drive and intelligent automation that optimizes revenue for our sellers on sky box our broad swath of industry data has allowed us to develop a product that provide sellers a turnkey solution to customize and automate their revenue optimization strategies seamlessly integrated into skybox and powered by our marketplace data together skybox and skybox drive present a unique and unmatched offering that will further deep our fellow relationship as well as continue growing are insolvent guy box combined with our proprietary marketing algorithm provide us with the most complete view of the industry in real time allowing us the ability to efficiently and effectively acquire new buyers and recently would unify user profiles across vivid the and vivid pick we have unique insight into fan preferences that power our and evolving personalization engine that nurtures our relationship with sports and music and do the it the capabilities continue to differentiate us in a highly competitive ticketing landscape we continue to invest in superior product and service for both buyers and sellers to drive long term differentiation and sticking it in our marketplace we are seeing encouraging find that taking it with a large and growing based the sellers on sky box and increasing by or repeat rates in twenty twenty two particularly in the second half we saw competitors ramp aggressiveness in performance marketing channels which elevated customer acquisition costs across the industry meanwhile we continue to build differentiated products drive brand affinity and target high value audiences with attractive repeat tendencies to create value in the long term loyal buyers making repeat purchases are a predict the margin and we believe we can temper near term cat headwinds with increased customer lifetime value as are in the she does continue taking hold next i'll address some of those initiative in more detail twenty twenty two was an exciting year for vivid seats as a youth new and expanded strategies to drive engagement and grow affinity for our brand the on integrating vivid picks we also expanded and invigorated our social and experience will present these efforts included new platform for just picked up expanded partnership with influencers and creators and new experiential activation on at events and festivals with unified customer profiles across vivid seats and visited we became more selective and sophisticated in targeting high value sports and music and do this we continue to grow our sweet of tools to target the right buyers in a creative channel regardless of channel we communicate a proven and compelling message david this is the only ticketing company to offer reward and our rewards offer real and differentiated value with are multifaceted brand investments and play we're seeing fraction and driving targeted brand awareness and affinity fans are engaging with they received more often while expressing positive sentiment towards the brand and frank arnett social sentiment it's highest amongst our main ticketing competitors while opportunity to optimize our marketing capabilities and continue growing brand awareness remain we are pleased with a result we've achieved thus far with a relatively modest brand marketing budget we are proud of our ability to drive long term brand affinity while remaining highly profitable and will continue to do so ultimately our strategy to drive higher repeat race is twofold first recruit the right buyers second once inside our ecosystem nurture each fire with differentiated products service and value we are excited that are repeat rate continue to friend higher across event category this includes repeat rates for new queue for cohort despite competitive pressures even in the current landscape with higher tax momentum from our brand investments is building as we look to the future we expect cash to normalize which in conjunction with brand momentum will lead to substantial margin leverage in the medium to long term larry will discuss our outlook for twenty twenty three and detail but i want to reiterate that we are steadfast in our strategy delivering a differentiated products with a compelling value proposition that fosters value in the long term as the landscape eventually rationalises we are well positioned to captured disproportionate growth and deliver long term margin expansion in the near term we are well equipped with a strong balance sheet and will continue to look for opportunities to accelerate growth for our current offering as well as to expand our him they're both organic and inorganic investment the i wrap up i want to touch on the ways we are creating exceptional experiences for all of those within our ecosystem most importantly are people in december we celebrated the grand opening of our new chicago headquartered and it has been so energizing to bring our employees together in a state of the art collaborative work space this is another example of our commitment to fostering talent and encouraging innovation at all levels in our business we have been recognized for these efforts we earned a place on fat company's best workplaces for innovators with and recently renamed the for have built in twenty twenty three best places to work live in both chicago and dallas lastly we remain committed to giving back as a marketplace it truly connect people we understand just how much joy live events create and how they enhance the quality of life for so many this year we were proud to expand our efforts with a partnership with make a wish the global organization responsible for creating life changing wishes for children with critical illnesses through a charitable foundation vivid cheers we are providing once in a lifetime experience is by sending these children and their families to their favorite live events with that i will turn it over to larry
spk_3: thanks fam i'll begin to discuss some of our fourth quarter and pull your twenty twenty two result before turning to our outlook for twenty twenty three the fourth quarter with a compelling some to our first year as the public company we delivered another strong quarter and with that hit our revise for your guidance for eat of marketplace deal be revenues and adjusted ebitda or fourth quarter twenty twenty two marketplace deal the of eight hundred and forty six million decrease three percent year over year driven by a four percent decline in total market place orders which was impacted by a lower than normal number of mlb championship series came along that competitive dynamics for the whole your twenty twenty two we delivered three point two billion of marketplace feel the of thirty three percent year over year and forty percent higher than prepare them a glow fourth quarter average order size came in at three hundred and eighty eight dollars a slightly year over year and nine percent about you for twenty nineteen our quarterly iowa was wow talk about twenty twenty and twenty twenty one but he has returned to the three to four percent annual cater we have been historically or fourth quarter twenty twenty three revenue of one hundred and sixty five million increase one percent year over year and rk great with fifteen point six percent for the for your revenues of six hundred million increase thirty five percent year over year and rk great was sixteen point zero percent our for your pay grade which is calculated by dividing or marketplace revenue by or marketplace deal be with consistent with historical levels when considering the impact of our loyalty program which is accounted for the reduction to revenue from quarterly variation in our a great normal due to the mix of bank categories we also experienced additional quarterly take great variation and twenty twenty two if we are find our loyalty program function throughout the year resulting in relative take rape headwind in the first half of the year compared to the second half in the fourth quarter regenerated thirty four million of adjusted either car at a twenty percent adjusted ebitda margin for the full year twenty twenty two regenerated one hundred and thirty million of adjusted ebitda adding nineteen percent adjusted ebitda margin we continue to focus on cost disappointed in the fourth quarter with flat sequential dna accent that of either die judgment and expect that you after he could continue a good next year on the marketing front we collectively targeted opportunities that provided the proper balance volume profitability this resulted in frequently higher adjusted ebitda margin the flight continued pressuring performance marketing channels throughout the quarter
spk_4: we entered twenty twenty two targeting even got margins of around twenty one percent as they return the businesses fail layered and public company cause i'm a deliberate branded bathrooms to position vivid seats to win in the long term despite marketplace deal the in revenue coming in above expectations even though margins came in at nineteen percent somewhat below our original target primarily due to elevated marketing activity across the industry
spk_3: we ended twenty twenty three with two hundred and fifty two million of cash than two hundred and seventy three million of growth that on our balance sheet are cast ballots reflect thirty two million dollars worth of share repurchases and twenty twenty two including twenty nine million dollars worth of repurchases in queue for as of your and we had repurchase four point three million class a shares at a volume weighted average price of seven dollars and forty six and and eight million dollars remained under our repurchase authorization or share repurchase program reduced our total shares outstanding net of treasury thought to one hundred ninety six million shares as of your and the about preclude seventy eight million class a shares which are publicly traded and one hundred and eighty million class be theres which are held by our private equity investors that are not publicly traded holders of class a and class the shares have equivalent per share economic interest in our operating at city the class the whole percent truth is shown as a redeemable non controlling interest on our financial statements in class the shared or convertible one for one in the class a shares we present consolidated financial statements which include the entirety of our operation and we also present earnings per share for our class a shares only the ctf calculation reflect the approximately forty percent economic interest in our operating and attributable the class a shares divided by the number of class a shares outstanding which is approximately forty percent of total fares
spk_4: or either data caps conversion in twenty twenty two was blow typical level due to several nonrecurring items including failed tax payments pandemic related store credit redemptions and normalization of fellow tables as pandemic postponement fully result
spk_3: in aggregate we estimate these nonrecurring items represented seventy three million dollars of nonrecurring with options to cash flow and twenty twenty two
spk_4: we have low levels of net interest expense and cap acts and as we grow working capital is typically a positive contributor to cast well
spk_3: with these dynamics we effectively normalizing cash conversion and twenty twenty three in addition the future cash generation we have a sizable cash balance and low level that that such that we can seize on strategic opportunities that may arise ticketing or a case and areas the texas just one example of an adjacent pam and have thing opportunity that is complimentary to our ecosystem of buyers sellers and partners
spk_4: in addition we will continue to evaluate all available option to optimize our capital structure and enhance long term shareholder returns according to our twenty twenty three financial guidance
spk_3: we anticipate twenty twenty three marketplace deal the in the range of three point zero to three point three billion revenues in the range of five hundred and eighty six hundred and ten million and adjusted he the guy in the range of one hundred and ten to one hundred fifty million the wife of industry how to spell or twenty twenty two with strong consumer demand and excess supply driven by postponed events originally scheduled for twenty twenty we believe the secondary market has grown well above the long term trend line at seven to ten percent annual growth fence reopening after the can done it as we enter twenty twenty three coming off several years of record demand we currently anticipate initially growth the moderate with twenty twenty three volumes approximating twenty twenty two level of note postpone pandemic events which mostly consisted of concerts provided a one time and during the second and third quarter to and twenty twenty two the dynamic will not and twenty twenty three and will offset some underlying market group
spk_4: we anticipate adjusted eat a towel be roughly flat year over year
spk_3: within a steady level of profitability we expect the continued shifted our marketing spent towards branded definitely twenty twenty three we are excited have multiple avenues to build long term value including a growing array of marketing channels along with strategic opportunities afforded by profitability of shrunk galaxy the day to day excellence and agility our team demonstrated in twenty twenty to give us confidence in our ability to seize opportunities and twenty twenty three
spk_4: while we cannot precisely predict how and when the competitive landscape will evolve history suggests customer acquisition costs will eventually side
spk_3: in the meantime we will tactically balance volume growth and profitability while you're at the marketing stand details with attractive economics
spk_4: good investing for long term sticky us far platform
spk_3: we can see need to expect long term adjusted ebitda margins will approach her feet thirty percent as a competitive landscape normalizes
spk_5: betty fair
spk_2: larry in conclusion it was a record twenty twenty two for vivid faith and the broader live event industry and i'm proud of what are committed and talented team achieve i'm confident that our team or strategy or investments are technology and are bouncy he would have been an excellent strategic position to capture and the liver valuable in the near and long term and with that operator i will open it up for question
spk_0: thank you ladies and gentlemen to as a question you will need to press that one one on your telephone and wait for your name to the announced to which i have question please post are one one again and order to accommodate because fans and the question kill we as a you please limit yourself to questions ali please stand by while we compile a kenya roster and first question coming from the line of steven do with credit suisse feel on a cellphone
spk_6: k can thank you
spk_7: so what i guess i'm no concerts as you guys mention particularly strong in twenty twenty two can you talk about what the next of events might look like for this year and give work we already got to be looking at a scenario which you know sports begin to index higher and concerts lower or maybe even back to what the next wasn't twenty nine keen can you talk about how your customer retention rates may change because i would imagine does probably greater frequency among the sports fans and i thank god put you in there are you know stan very are you guys are both mentioned expectation that customer acquisition costs will otherwise gonna lie so you know what gives you the confidence that we will see that perhaps even this your maybe over the longer term because not all of it's within your control but if he can speak to our what's driving that confidence and audio for bags
spk_8: yeah great steven and next the question you don't either for maybe i'll take a little bit of everything you our that you can read the right dynamic that thin and and certainly let larry gonna talk about how we anticipate the the full your in the mix shaking out
spk_4: yeah they did in a world where you see rising up my position like to talk but i think it's really important that you continue to invest in the long term sustainable things i think what we talked about this porter with really thrilled about it or invested their really starting to a dividend you know most notably in the form the of of our highest repeat rates that we've ever seen among
spk_8: our customers you know that really spread across the categories right i think it would be different if the said thought higher repeat rate than sports vs panthers and were mixing into a total higher repeat rate but you know people get our investment in the loyalty programs them of i gave protocol what we're happy to see it that you know what being be paid rates higher and every single category that we participate in and and beyond that as we continue to drive that repeat that behavior we also continue to mix more profitably into a repeat segment of customers all of that frankly allowing us to participate in a very kak intensive an environment where some of those effects might have needed at the bottom line but internally all of that core strength is there would adding allow that to one the same for the very long term and to like that environment rationalises you'll be a lot of leveraged in terms of what were driving to repeat users as it flows through to the by
spk_4: bottom line in the building on that are on the next question i've i only we anticipate a meaningful ship can like twenty three makes in twenty twenty three a and it's been rebuilt the balance a week be inaugurated they thought about it respectfully concerts in fear
spk_9: forty percent sports at that prepare them at level and the are almost right on that replaced for you to sell our baby a you basis points here and there are various but nothing that would impact ogre all
spk_0: makes a meaningful way with no thank you
spk_4: thank you one moment is one next question and our next question coming from the line of rap soccer with william blair you on a cellphone i do anything second question of first question just curious in know now the germs through a que on how's the quarter trending i guess after coming off a twenty twenty two and then as it took about twenty twenty three keys just remind us what we expect for seasonality or through the air that follow up with yeah pad their job the i'm feeling alley i would be brief the learn about historically played you add twenty three twenty four percent of our for your g the of each supporters once you in three and in the balance of come here to our which we expect will remain are strong quarter of the year i get that i think we've even robots performance and the man continuing the queue one but short sighted if they are reading about your over year a comparison that were laughing laughed you live up with the last time we ever status they were fighting coded the underground area which bad january body and then the an abnormal cancellations a non cause agree them and i'll be issues lead the on food by writers are so we have not seen those refer to see a fever and that in general much lower cancel the prior year at guilt over the past like we we are expecting out a pretty healthy your beer one performance at the other part i noted
spk_8: we that a little lighter on some of our marketing advertising the gate with you want to make sure i am powder dry as get the back after the air with sports even
spk_10: some may actually be some
spk_8: margins about for your levels and and quarter
spk_2: great and then stem he talked about brain investments helping repeat rates maybe just can help of think through those investments for twenty twenty three and you know how they could continue to i guess benefit that repeat rates of texas that upset somebody at higher levels a that using
spk_8: the as where they from it i think we we've seen a lot of excess you know when we look at our loyalty program the component of that driving an increase repeat right i think you know whether we're building that into the economics of our bikes and get one free program whether experience with component that if we continue to look for innovate along as dimension can we find new things that drives differentiated value users and then i did you feel continue to to drive integrated and innovative play option there did it picks in i we talked about having
spk_10: our user base bear on that platform just got three hundred percent on a year be your basis where we can then use the too eager to and strive engagements where you know where we're looking at that but you know now they got average cause the fifteen and three per month on that the when you put together enough that innovation in the loyalty program itself
spk_0: combined with an engagement vehicle with fifteen hundred per month i think we feel pretty good about the ability to continue to drive increase engagement and loyalty to our collective ecosystem and five one
spk_11: like that think that
spk_4: thank you and our next question coming from the line off my a riff on can of corn deal on a cellphone great thanks so much for taking my questions first appreciate on the call around the twenty twenty three out and kidman because talk about how set of competitor marketing that has been training so far this year and what is embedded in your outlook it comes with expectations for competitive marketing activity and then a have a quick follow up that maria id throughout twenty few we've got a fairly consistent trying were competitor intensity by increasing our with a pit particular shift word starting an early keep three that intensity continued thirty four i paper and a large part it's continued a secure line
spk_3: it's a we have presume that at her thats throughout the year in our guide
spk_11: the i do we alluded to it before the we can any to be of the mindset that one can only lose money for so long before gravity catchy been ah it's so what were we don't want to predict the land at the too much precision but it does feel like current environment that has persisted the key one i feel unsustainable given some of the our understanding of some of the profitability implications of the decision others got that that makes sense
spk_8: larry and then secondly it has been a lot of sort of increased regulatory scrutiny on the music industry have laid out with the justice department's of haven't recently opened and and and i trust investigation into live nation i would love to hear your view on for have undergone and potentially taken some form of action to promote increased competition and and how my that impact your business and the secondary ticketing market are more broadly yes or a maria what did i think it starts from just fundamentally at in l a belief that you're adding we we had strongly that promoting competition is a good thing and when fair competition exit pc platform like vividly you know continue to innovate on the half of bandwidth as we talk a lot about here you know that think that customer service the loyalty program that continues to drive differentiated value that it is that all exists when there's and it's fair competition you know and i would say in a rather than comment directly on what they're doing i think you know what a bunch of senators recently reviewed the industry like a cook it than the perspective of that investigation as it's fairly clear i think when you have large vertically integrated play here is essentially leverage their advantages that stifle competition you know i think the end result for that is that anyone who played by the pool is gonna benefit and in our state know i think about things which have great momentum like legislated ticket transferability transparency and to wield supply and demand transparency into play i think we're in particular are been caught structure always allows us to be competitive you know i i look at that say and
spk_12: as their continues to be scrutiny anything that promotes fair competition
spk_0: and in the space i think david sleep as well poised to take advantage of and and we look forward to being how that plays out
spk_13: i thank you very much
spk_14: thank you and on next question coming from the line of almost like a woodsy a desert sun you'll on his mouth thing
spk_4: great say so for sustain a lyric and grab the quarter near i have to compare and contrast question i ask why didn't the second follow up the first can you compare to track he failed the profitability of perform performance marketing person the brand marketing
spk_3: yeah i'd say i'm
spk_9: and we've experiment there there's little bit of a a i wanted to know answer time and heat
spk_4: going deeper into brand marketing one of our having as bad out with the outline of too much gas on the fire to repeal like the added been a been replicated a i'm at the non it the and so as he thought that some of our experiment thing and find on lot that for marketing angle that that with are dirty i would probably experiment that that we've been able to complete their outweighed by to we feel pretty that the be cheap that and that the economics on on the plane five bill at the replicate what we were able to live on that the farmers market guy would evaporate bullied different pining where you spend on a brand dollars up for
spk_8: right with a little more of a lag before you get a return relevant the one is working with more vidya a bath like alongside that he take the blair
spk_4: a customer acquired the brainchild like the has irene eat ireland cavity higher lpt so i'm a dollar and percent for because we're going to be happy to be born in the data we're seeing now actually suggest the be better
spk_15: great and in for my second question can you compare and contrast consumers returning the lower than of from influences historical events as like you're missing out versus reflection of covered i came another like revenge travel
spk_4: yeah i or any papers crack that united and agree with that our guide for the year it's a combination of both order volume and a last dynamic because i have picked up the man pieces buried or argues than that average order style by think that it would like that widely normalized and every exit twenty twenty two and a what i consider our historical timeline
spk_3: on the orders i've ah your similarly sports do now entering his third year degree reopen psycho well through that we did as he gets press that some caution relevant to your breath other perspectives out of the market a little concert
spk_4: ah vibrance female look like the here are put over all your on the world will be paid seven and percent annual one from girls as well as industry that
spk_16: and we were up forty percent in forty two well be the plane i keep having twenty three is that a flattish year kind of should be a bitch i like a no way a the expectation of front lawn
spk_0: a getting we'll need to a few it go to the caution around exactly what the lack of postpone concert can do the overall industry volumes a little bit of caution around what pay posture may look like after that that the day they're not opportunity proud of what about those metrics
spk_9: and thank you
spk_17: think he'll and on next question coming from the line of jason bassinet on city you on a cellphone and it is in little complexity analyzing this that sales and marketing costs as a percentage of revenue as complexity just given the impact as a lot of people the central avenue that the sales and marketing as a percentages avenue seems like he has been bouncing around the tree seriously to percent last four quarters
spk_4: it doesn't sound as bad as your rhetoric about the higher competitive intensity and higher tax size just wondering if you could just and unpacked that a little bit unclear major looking at the long mattress yeah and i think it's that it's been a few question anyone even make our comments around february and and the lever that we have at all i think that's exactly right we're speaking to add an opinion thinking for example having a conscious decision to let some volume that
spk_18: of unattractive profitability go and in favor of maintaining profitability and holding a line
spk_4: i'm that on that marketing efficient be the other thing that that even a shift in terms of our customer next word
spk_9: the customers and away from fishing in a free agent or that has gotten particularly offensive i sincerely get us really to go about trying to predict exactly which ordinary app in the with a strong that that abruptly it happen when the cat normalizes at it be expected really to be at
spk_17: the fifth in the new customer acquisition
spk_0: he pulled back a it
spk_13: the got it at siggraph of thinking thank you and mom and final question and our next question coming from the line of benjamin bike from deutsche bank you on a cellphone
spk_19: a good morning thanks for the question
spk_9: our area think he added that are you about on on live nation burning called a mental note flock know finalists load on back know they expect even loro path trying to twenty twenty three years main thing that's why it's only three girls should be more muted that i be integrated you could set a bridge that disconnect there
spk_4: and then then
spk_9: i'm in a prepared mark yeah like that guy book five i'm a big you'd be airing your perspective on how then you offering have been or see what are the results of damage as the barn and how to the impact the that the piano going forward maldic time thank you
spk_4: yeah so i'll be the first part on on my nation ah
spk_9: so we thirty validate that ah and read in some ways we've been some work for them and then there's places where he emerge from the comparatively
spk_4: that they call it a lot of metrics on january the mid february performance in quite robust ah but the be a too i played that we can confirm that we have a directional we similar trends in terms of very strong your your performance and year to a period where i think we perhaps the verge of a am his wine just adding a slightly more cautious you have of what the impact of a pound of bank not recurring being at the execute feeling keep breathing on the concert five
spk_8: he added they are overweight concerts look at their business overall race of at the largest about you believe in it and legit ago about with you explore the style or that little bit and then the last very boys getting paid out alluded to international be quite strong international the opening a little bit later so that a there's a little bit of and off between global straight in the first couple months in their guidance and an international perhaps carrying a little bit higher growth the bath happening me around the don't united states in north america how they that the second part then it i think we're really excited to announce savage try rights i think when we announced that an early last week and i'd say early find that interested through the roof in i think we're very proud of the platform that we them that often about strive is in l a
spk_20: as an additional been a product line that we're launching next the that to further help his fellow community as a turnkey pollution kid skybox i think is receive hundred injured in a we are in our a period i would say the minutes be announced open the beta we were over to describe within the first you know two minutes and the how many people wanted to participate and
spk_0: i think that's a good indicator i think that an underlying the fact that yanni there's going to be lot of demand an interest in in a product that we're building and as you continue to do on all of our line you know that are going to evaluate right economics are in a know there's an opportunity to make sure there's an value that we can derive from from that product line a big with
spk_9: you've ever probably a little too early to the talk about that long term tnl and back as gotta drive right now
spk_17: thank you very much
spk_9: thank him and on next question coming from the line of lovingly from rb seal on a cellphone hegemonic they contain a question it's logan and for brad erickson
spk_14: just another one on marketing spend
spk_17: what's your cat's philosophy and a city at or back a little bit
spk_9: on the performance marking thank you for but as you go forward and to twenty twenty three and a four year what's your expectation for
spk_21: competitive marketing intensity him in what is your philosophy and i got a matching that curses are pulling back a bit on the less profitable
spk_4: orders for the for your thanks the i i say embedded in our guide and we have it soon kind irony
spk_9: her says throughout the year i eat intensity of i would you believe if one from singapore
spk_8: we're certainly hoping that that cracks i didn't want to go back into the be fine
spk_2: and so it won't be like what comes from there ah
spk_8: yeah i think you know that and any limited a bright later home that to you know as we think about the timing impacted any gets front of everybody mind which we just don't know and how long it for said i think the right question that we've certainly orient around it you know
spk_4: when you span whether that in the form of the you know marketing whether that in the form of degraded catering all the things that ah you know we're seeing now in the industry the question is just when you stop spending that and when you stop degrading or take rate that that all you remain at it that all you've done for name
spk_3: and all about acquisition just unsustainable for our perspective has always been in a we are in this for the long all and as we prioritize did i think they can sure that we're village and and smart about how the invested both remain profitable drive growth and continue to girl or cash balance for a potential and live in our
spk_22: danica activities in i think what you see it continued investment in the sustainable
spk_17: cover of customers that we continue the to read benefit from both now and we've been even more so in the in the long term
spk_0: added the the wrap it up but i certainly don't i need to strike a balance and we're not going to roll over and like competitors they keep the volume about a pipe similarly we're not going to follow them down with me think of that
spk_23: some short sighted and providing the balance between a feeling in the pockets where you can add pursue the most economic value for those economic customers and like i value of that were we've got alive our a commentary about or he said i said i don't eat a party it's ability
spk_4: really showed up
spk_10: great thanks for the guy
spk_8: pinky on next question coming from the line of any kernels with and sparkle and is now open yeah thank the morning
spk_4: i know you guys decide to kind of put an exclamation point on sort of your strategy i guess that's the question that we get him you know in this environment and given the uncertainty in a consumer you know if you put further pressure on your competitors would you not fellow rates part of the cut off are you not think that the possibility given how much better your balance sheet and and given you know look i i we understand that and a dynamic for somewhat like all my travel within a certain segments of cover that will be loyal to your one that and under a certain segment of cohort or of that will probably why not just the price or mom and it feel like your competitors are a have no trouble to get better loyalty and be ah you a lot more fishing and that non repeat rate but you by is there no way that you guys could put you from mental pressure on them beyond just sort of striking a balance given how strong your balance sheet is right now yeah it's a great question then it said the topic of he
spk_9: russell if a fair bit
spk_4: yeah i think were
spk_24: if we saw an opportunity but clearly
spk_4: it
spk_15: accelerate that he would weaken into it
spk_4: the a the flipside is
spk_8: we can't speak with precision or conviction around what fund raising her capital assets look like for competitors and so we're trying to take a balance where we continue to put pressure study pressure that gets to the end result he why
spk_4: but also doesn't i'm julie
spk_25: your brew beer term performance ah if only to find out that may have him more more capital nashville by
spk_8: the advantage i know i know you sort of that alluded to that than their that i'd i'd better read reemphasize a certain extent we are doing what you're suggesting in in our investments right because as you think about it look everybody everybody who repeats with us is an order that we've taken away from somebody else and where we've seen you know again be very the increase in repeat laid across categories for off at the highest level of has ever been yeah i think that that's only been the we continue to drive down and every time that happens as an incremental orders and they're all increase repeat rate with a higher than into that we we think that's actually a very strong it's salary and to call it the sustainability of our competitors got it right in africa and then just on the the fact that earth interesting that you as actually spent less frequently i'm high you already are awful average obviously thought to the brands that is a you guys are pushing yariv know everybody else
spk_2: to push performance but i get an amateur difference here and how much of the brand is more toward vivid vs internally you're just in that on come on a vacation
spk_8: back the trying to make it your point is you called out and more integrated into the profits versus i don't get broader get a the brand awareness just remember hey you know we still have really small brand awareness and everything bring that up and we get people and ecosystem that way
spk_2: yeah you know i have offered any and i think a couple different things uniting where are you seen a lot of our honing of our brains grandstand is into channels that are you are starting to see
spk_8: you know increased economic performance right i think if you recall maybe and twenty twenty one you know we tested a lot of very heavy media oriented channel that in i think we we were and not if is with them of their kind of time horizon and returned but that that drive i think we have found them break channel nine to talk about our village
spk_26: he to drive brand and few other more problematic areas and where we've seen a lot of big that you pause it it's a paper certainly excited about that yeah to give you look they won't be done in the fourth quarter and certainly and the first quarter and some of them are programmatic bank brain channels in a we've got our real rewards for real fans campaign right i think that continue
spk_14: to resonate with fans that continues a driver halo around our performance both been not normal performance channels and frankly as a direct channel itself for acquiring users i think they been pleasantly surprised by the efforts on our marketing team the so quickly find you know a brand channel that as both great
spk_9: the halo but also
spk_4: the performance itself and i think we've seen that resonate of really around one of our or propositions which we've invested in for a while now which is the woods and i think the fans speak you know that that campaign or something that matters to them and that value profit something they'll continue to them
spk_8: reward with with purchases from us
spk_10: and they're on vacation
spk_9: because they've got yeah
spk_8: video feed that three billion plot the
spk_4: they're getting it is going to command the significant preponderance of mccain vault performance and brand yeah we we are targeting that a opportunities particularly where it even the ecosystem but i you do to make up the majority significant majority that france and being on a political offered the average is i would have a similar i didn't know if i could you comment push for the help of of and just something just a house keys the i get blair yellow ones that on your comment that out like and free cash generation get a normalized and twenty or yeah know there were some but eighth and twenty two the you've ever going to be in the only that past the mission ah this year
spk_8: believe that you have your typical conversion
spk_27: the weather that kind of played out so how are you thinking about kind of that benefit in that environment people not your cash to pay down your that on you or share buyback more given with is of the internet
spk_4: i read yeah he began to considering all the standard of possibilities
spk_9: really didn't catch on of much but but we did come for a thing of the in share repurchase
spk_4: peppered through with thirty three million we perjured butter are around three year and as any do they had them into our willingness to repurchase shares balance by a we have a other than that but then we would like them in feathers something that in the short term on the amount of shares he can we purchase
spk_28: on the it that by the veins and the current interest rate environment about that sounds fascinating on that downs but with effectively to panic we had a great the gone up so are interested phantasm philly really move commensurate that we feel like it's fill a reasonable price a the the optionality leather
spk_17: related them
spk_0: common items before ebay or whether that be
spk_29: jason fees or are import more meaningful opportunities i have them that we can take the review so we we like being the stronger that balance sheet the five in a little bit for that our competitive landscape and some of the comments he made about either he an outback and cabinet for gold plated balance sheet alongside that is great confidence in our ability that
spk_30: i can't the other side of a stronger than ever
spk_8: great as he didn't he push it out about guess thank you and on next question coming from the line are sweeter perjury from everquest i yawn or something okay thank you
spk_2: san could you please provide an open mike eagle on sky skybox tried to how how does that work and ah understood on the your commentary on economics of it back
spk_8: where do you think will have the most and back and post ads scott scale launch thank you
spk_2: yeah with i think you know all fellers look for ways to maximize revenue and in i think in the auto piping arena there are multiple players that provide that service
spk_8: what's been unique about our
spk_31: the vision the long skybox drive is we've never had a turnkey solution integrated into as dive off platform that allows for am kind of an immediate auto parts or to be turned on with also never allowed others the utilize fellow in our an industry leading marketplace data you
spk_0: drives them of their revenue optimization strategies i think those you think that strongly been in demand by the feller community and we were happy to provide that which again i think nobody else will be able to provide given that up by terry that in the long term as we launch that we remain really excited about the fact that we can grow the install base dive off drive more sick enough to that and ultimately got more value to our sellers and in turn all of the things the dark why we have better data
spk_13: better insight and and potentially advantaged ah structure again that was through from you know kind of an embedded gravity optimization system and that functions in real time as you think about the economic for a knock at the etiquette early for us but i think it's safe to say that in the market nobody gives an auto peiser away for free so there's probably
spk_32: on the criminality there but rather than filled little too early to gauge what the what the long term impact gabby
spk_4: okay thanks them
spk_8: thank you and nine next question coming from the line off angela from raymond james you're on a cell phone pay for pay my question is then as cave a couple of times than in different ways i can have one address it directly fell in in
spk_9: the overall faith i mean the the consumer experience has kind of been built on trust in there have been pretty decent bomb repeat royalty rates etc have had their bent out of any changes in the overall brand loyalty of a customer within the industry with kind of the putting takes obviously you guys are you are seeing good progress on your life
spk_0: loyalty and rewards program and of counteracted with the increase marketing stand around the industry going for that kind of free agent cool thank you
spk_33: you know
spk_24: it i writing maybe to think that by the one you know clearly what what we can see is that i repeat rates are higher than ever you know i think the boxes that maybe as a as a point against others you know we we track a lot of social sentiment
spk_3: amongst the the competitive landscape with you know you might argue for be a leading indicator into brand loyalty and i think what we felt really good about is that you know since
spk_4: we started looking at that every month since we've been tracking social sentiment you know we've always been number one or two were historically you know we've not shown up by thing in the top you know five probably sizing being and than first and second position and combined with our ability and iraq and have proven now increase in repeat right
spk_3: the i would say we probably out index the competitive landscape
spk_4: thank you
spk_8: thank you on next question coming from the line of math class or all farm i personally you on a cellphone
spk_4: thanks guys maybe this is how are you thinking about the broader back row and maybe consumer spending as it relates to the full year guide and maybe a dig a little bit deeper how do you delineate may be that competitive pressures that you're seeing between potentially being them dopamine consumer trends thanks he i think we we continue that the assembler to some of our pastures throughout the year last year where we we wanted to take of bounds be aware
spk_2: he certainly reflected some awareness of a breath inherent in the market or whether been filled in or economic concerns i agree with the fish that perspective the i'll be good we are not be
spk_8: any bank and the numbers ellie to get the consumer is weakening of nodded
spk_2: but we also feel that they have played for never another call back and and think uprooted the building on a possibility or probability of that if people early a second half we're at the so game similar to last year to that not fan of that that would be a part in know if you could benefit to be while be contemplated getting if you find yourself in a world where
spk_17: consumer and not it's free after i've learned week in meeting people where we are are adding that
spk_0: that scenario where we want to get excited in short term that be a bit of pain but a battle believe that proportionally head competitors and are already running on the edge of club

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