Endeavor Group Holdings, Inc.

Good afternoon and thank you for attending today's Endeavor third quarter 2022 earnings call. My name is Jason and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to our host, James Marsh.

Good afternoon and welcome to Endeavor's third quarter 2022 earnings call. A short while ago, we issued a press release, which you can view on our investor relations website, investor.endeavorco.com. Recording this call will also be available via that site for at least 30 days. Today, you will hear from Endeavor's CEO, Ari Emanuel, and CFO, Jason Lublin, before we open for questions. The purpose of this call is to provide you with the information regarding our third quarter 2022 performance, in addition to our financial outlook for the balance of the year. I do want to remind everyone that the information discussed will include forward-looking statements and or projections that involve risks, uncertainties, and assumptions, as well as described in the risk factor section of our filings with the Securities and Exchange Commission, including our 10Qs and 10K. If these risks or uncertainties ever materialize or any assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements and projections. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them publicly in light of new information or future events, except as legally required. Our commentary today will also include non-GAAP financial measures, which we believe provide an additional tool for investors to use in evaluating ongoing operating results and trends. This measure should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our press release issue today, as well as in the non-GAAP financial information posted on our IR website. With that, I'll turn it over to Ari.

Thanks, James. Our business performed well in the quarter despite an increasingly turbulent macro environment. We've built in position endeavor relative to a broad set of secular industry trends that continue to demonstrate resilience and enable us to deliver on our long-term growth strategy. Today I want to hit on two of these trends, the competition for premium sports and entertainment content and the demand for live events and experiences. I'll then turn it over to Jason who will share more segment level color as well as considerations for the remainder of the year. First, as it relates to premium sports and entertainment content, The company's strength lies in its decision we made nearly a decade ago to become a premium content supplier to the diversified and expanding list of tech and media companies who have pivoted to D2C. Alphabet, Amazon, Apple, and Microsoft are in a race to add offerings across multiple categories to attract customers to their ecosystems and convince them to stay. These mega bundles are often packaged in price as all-in-one subscriptions that deliver strong value. And these leading tech companies go head-to-head with major streaming and media players, including Disney, Netflix, NBC Universal, Warner Brothers Discovery, and Paramount, for the best video, podcast, gaming, and social content. Every single one of them requires a steady flow of premium entertainment and sports content, and we are the leader in these categories. It's undeniable that premium sports and entertainment content have become the most powerful and efficient means to acquire customers and keep them engaged. Pick Amazon and Thursday Night Football. Viewership on Prime has exceeded most common expectations, especially when you consider the strength of schedule, making it both appointment viewing and a powerful promotional tool for the platform. The NFL and Amazon are also partnering extensively on a first-ever Black Friday game, creating more opportunities to drive consumer product sales. Bottom line, Amazon and their competitors understand the network effect generated from premium content, and our flywheel is uniquely positioned to deliver it and benefit from it. Meanwhile, as linear players battle to keep viewers, they've increasingly turned to live sports. You are seeing this play out in new deals for the NFL, Major League Soccer, Formula One, college football across linear as well as SVOD and AVOD services. Additionally, sports betting is quickly becoming the ultimate live sports viewing compliment and yet another way to keep consumers engaged. During the third quarter, we closed our acquisition of sports betting tech leader, OpenBet, helping round out our tech offering in this space. Once again, we've positioned ourselves on the supply side of this industry, working directly with rights holders and sportsbooks to deliver everything from official data, streaming feeds, to betting odds and mobile apps. Beyond sports, the demand for premium talent-led content shows no sign of slowing. In fact, opportunities for talent are expanding into new formats as both big tech and the incumbents fight to link top creators to their platforms. We're closing more long-term deals for our clients with studios, as we did recently with HBO for the Game of Thrones executive producer and showrunner, Ryan Condal. We've also moved more television personality into podcasts, evident in the launch of Stephen A. Smith's new podcast, No Mercy. And we're seeing streamers learn more of our clients from the big screen to the small screen. whether it's Keanu Reeves landing his first television deal with Hulu or Tyler Perry's new deal with Amazon. We're also beginning to understand the impact of ad-supported streaming with new tiers being introduced from companies like Disney and Netflix and the launch of new free ad-supported streaming services. We expect this shift towards an ad model to lead to greater streaming adoption, further supporting the need for more premium content inventory. This is all to our continued benefit, especially when factoring in the incumbent broadcast and cable networks ongoing content needs. The second broad theme I want to hit is a continued consumer demand for experiences and live entertainment. The UFC has achieved 26 consecutive sellouts since restarting events during COVID-19. UFC 276 set a new record for single-event VIP experience revenue via our on-location business. And our first-ever event in France set a VIP revenue record for a non-pay-per-view event. In the third quarter, we serviced three times as many UFC VIP guests as in the prior year. Looking at the rest of our portfolio, our UK-based big Feastival music and culinary event sold the greatest number of tickets in its history. Meanwhile, the NFL International Games produced strong demand for on-location packages, and Super Bowl 57 sales are pacing incredibly well. In fact, interest in Super Bowl 58, slated for Las Vegas in 2024, is already outpacing last year's Super Bowl, and that's an event that's 16 months away. As for new launches, We recently debuted Freeze Soul, the fifth installment of our Freeze Art Fairs, with more than 100 galleries and 70,000 attendees over the four days, making our strongest inaugural Freeze event ever. As it relates to music and comedy tours, we continue to see strong demand, booking shows for our talent well into 2024. Comedy, in particular, is surging. Kevin Hart and Bill Burr sold out the only two arena shows at the Just for Laughs Festival. And Bill Burr at Fenway Park became the highest grossing comedy show of all time. So whether it's across premium sports and entertainment content landscape or in all forms of live events and experiences, our business continues to perform well despite the macro headwinds. And while we cannot yet predict those headwinds' full impact, we remain confident in our position and the strategy we laid out to capitalize on the most resilient secular trends long term. I'll now turn it over to Jason to walk you through our financials and update you on where we're headed as we look to close out the year.