Vivid Seats Inc. (NASDAQ:SEAT) Q1 2024 Earnings Call Transcript

Thomas Forte: Thank you, Larry. I appreciate that.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Andrew Marok with Raymond James. Your line is now open.

Andrew Marok: Hi, thanks for taking my questions. First one, maybe on vegas.com you’ve mentioned some of the top-line synergies that you’ve been able to begin your realization of so far. But maybe have you seen notable synergies or the opportunity for to date for buyers of events on vegas.com where you’re able to market to them back in their home market? Like if I’m from Detroit and I’m visiting for a conference and buy a show ticket, have you seen an uplift from being able to sell me a Tiger’s Ticket when I get back to Detroit?

Stan Chia: Yes. Hey Andrew, your exact example is a really strong thesis under which we acquire the business. And I think we’re excited by the early signs we’ve seen there. We are certainly underway in that campaign. We believe it’s a really strong opportunity for us around those who come to Vegas and go home and the ability to market them into the Vivid Seats brand that has all of that selection, rewards tied to the home market that they’re in. I think those campaigns have launched. We’re really encouraged by what we see. I think given the lower frequency of this industry in general, we still need some time to play out. But as we always talk about our repeat race on a cohort basis continue to trend as high as they’ve ever been. And I think we are really excited about the ability to in fact accelerate that through the vegas.com synergies that we see on that side.

Andrew Marok: Great. Thank you. Maybe one more if I could. Kind of on the breadth of your customer base, obviously. Really strong indicators of demand both on the industry and for you guys in terms of order volumes and things like that with AOS is kind of continuing to creep up. It’s not new that we’ve heard concerns around discretionary budgets and things like that. I guess maybe speaking to the breadth of your customer base, is it still like the same large pool of customers who are maybe more willing to spend on more expensive events and experiences? Or is it maybe a smaller group of more dedicated buyers who you’re really getting these benefits from? Thanks.

Stan Chia: Yes, Andrew, I would say I don’t think I’ve seen anything that would point to change when we look in the past at the demographic profile of our customers. I think it’s pretty reflective of what you would anticipate, right? Balance across almost any way you slice it. Geographic, gender, income, age. Obviously reflective of these that cost money, right? There’s going to be some skew towards affordability. But beyond that, it’s been very broad-based across interests that are almost by definition quite broad. And nothing we’ve seen suggesting at the broad level any weakening in consumer interest in attending these types of events and going more precise than that haven’t seen any meaningful shifts.

Larry Fey: Yes, I’ll bring it back, Andrew, just to almost what we were just talking about. I mean, there’s two things, right? One, the category and industry, secular trends that we’ve always talked about. I think we remain excited and all signs point to continued interest and frankly as the demographics move into some of the newer generations who are coming into purchasing power, I think it’s clear that this is a category that they will remain prioritized on their spend. And then on the Vivid Seat side, I think that’s where our investments are there to really capture and retain customers regardless of which demo, regardless of which bracket you’re in. I think interest in the category remains strong and it’s shifting to perhaps stronger as we move into those demos and our platform continues to be built with the premise of engaging and retaining those users with the deceased.

Andrew Marok: I appreciate the detail. Thank you.

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

Ralph Schackart: Good morning. Thanks for taking the question. Just on the macro environment, just curious maybe what you’re observing. As we sit here today as you progress through the year and just a reminder what’s factored into the guidance for the macro. Maybe just a follow-up, switching gears to Skybox Drive. You’ve been in beta here for a little while. Just maybe if you can brighten up Stan what you’re hearing from the beta and maybe thoughts longer term on the ability to monetize it on a longer term basis. Thank you.

Stan Chia: Yes. Hey, Ralph. Thanks for the question. In fact, Skybox Drive also trending, I think really well on track to launch later this year. We’re always judicious with this, right? I think this is a platform that sellers run the entirety of their business on. So I think we’re making sure again that as we start bringing it to market that it is able to really handle a critical component of how they run their business. I happily share, when we look at the waitlist and people that we have eager to come onto the platform, it’s a triple digit waitlist and growing, right? So I think as our beta continues to grow in size of people on the beta, the waitlist continues to grow at an even accelerated clip. And as I’ve always said, I think, one, our guidance, has zero incremental contribution from Skybox Drive.