Vivid Seats(US:SEAT)2023-11-07 19:36Financial Data and Key Metrics Changes - The company reported a Marketplace Gross Order Value (GOV) of $999 million for Q3 2023, reflecting a 28% year-over-year growth, accelerating from 16% growth in the first half of 2023 [24][40] - Revenues for Q3 2023 reached $188 million, up 20% year-over-year, while adjusted EBITDA was $33 million, an 18% increase year-over-year [33][24] - The take rate for Q3 2023 was 15.5%, consistent with expectations, and is projected to increase to a range of 15.5% to 16% due to the acquisition of Vegas.com [33][90] Business Line Data and Key Metrics Changes - Repeat rates have significantly increased and are trending ahead of expectations, indicating successful brand and loyalty initiatives [25][26] - The company has seen a 19% year-over-year increase in total Marketplace orders and a 9% increase in average order size [40] Market Data and Key Metrics Changes - The acquisition of Vegas.com is expected to expand the total addressable market (TAM) by over $6 billion, focusing on shows, tours, and attractions in Las Vegas [30][88] - The Las Vegas market is benefiting from multiple tailwinds, including new venues and major events like the Formula 1 Las Vegas Grand Prix and the Super Bowl in 2024 [37][62] Company Strategy and Development Direction - The company is focused on driving brand awareness and loyalty through strategic partnerships and marketing investments, which are expected to yield long-term returns [12][44] - The integration of Vegas.com is seen as a strategic move to enhance market presence and customer acquisition, leveraging its comprehensive event inventory [29][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for live events, raising 2023 guidance for the third time, anticipating Marketplace GOV between $3.75 billion and $3.9 billion [5][43] - The company expects 2024 Marketplace GOV to be in the range of $4.2 billion to $4.5 billion, nearly double the GOV from 2019, indicating robust growth prospects [45][88] Other Important Information - The company has generated over $110 million in cash from operations year-to-date, maintaining a healthy cash balance post-acquisition [41][42] - The company is committed to investing in partnerships that enhance brand visibility and customer engagement, with a focus on long-term growth [34][98] Q&A Session Summary Question: Contribution of M&A to growth expectations - Management indicated that the growth expectations include both M&A contributions and underlying category growth, with high single-digit growth anticipated excluding Vegas.com [52] Question: Competitive environment stability - Management characterized the competitive environment as stable, with confidence in their investments yielding positive results [53] Question: Investment priorities for next year - Management is focused on strategic investments that will drive long-term returns, with a keen eye on the macro environment [55] Question: Partnership with PayPal - Management highlighted the positive engagement with PayPal's Pay Later functionality, which is expected to enhance transaction frequency and average order value [57] Question: Rationale behind the Vegas.com acquisition - Management emphasized the strategic fit of Vegas.com, citing its market authority and comprehensive event inventory as key factors for the acquisition [62] Question: Current buyback authorization thoughts - Management noted that while there is no current buyback authorization, they are always considering it as a form of capital return [68] Question: YOLO vs. FOMO in consumer spending - Management acknowledged the relevance of both YOLO and FOMO in driving demand for live events, with strong average order sizes indicating robust consumer interest [73] Question: Marketing spend and competitive landscape - Management indicated that while the competitive environment is stable, they are seeing increased marketing activity across the industry, reflecting overall demand strength [96]