Q1 2024 Vivid Seats Inc Earnings Call

Participants

Kate Africk; Head of Investor Relations; Vivid Seats Inc

Stanley Chia; Chief Executive Officer, Director; Vivid Seats Inc

Lawrence Fey; Chief Financial Officer; Vivid Seats Inc

Ryan Sigdahl; Analyst; Craig-Hallum Capital Group

Curtis Nagle; Analyst; BofA Securities, Inc.

Dan Kurnos; Analyst; The Benchmark Company

Maria Ripps; Analyst; Canaccord Genuity

Matt Farrell; Analyst; Piper Sandler & Co.

Cameron Mansson Perrone; Analyst; Morgan Stanley

Thomas Forte; Analyst; Maxim Group

Andrew Marok; Analyst; Raymond James

Ralph Schackart; Analyst; William Blair

Presentation

Operator

Good morning, and welcome to the Vivid Seats First Quarter 2024 earnings conference call. Following management's prepared remarks, we will open the call for Q&A.
I would now like to turn the call over to Kate Africk.

Kate Africk

Good morning, and welcome to Vivid Seats First Quarter 2024 earnings conference call. I'm Kate Africk, Head of Investor Relations activities. Joining me today to discuss Vivotif results are Stan Chia, Chief Executive Officer, and Larry Feyo, Chief Financial Officer.
By now everyone should have access to our first quarter earnings press release, which we released earlier this morning. The press release as well as supplemental earnings slides are available on the Investor Relations page of Intuit's website at investors dot servicenow.com.
During the course of today's call, management may make forward-looking statements within the meaning of federal securities laws. 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 in our other filings with the SEC.
On today's call, we will refer to adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures that provide useful information for our investors 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 supplemental earnings slides.
And now I would like to turn the call over to Stan.

Stanley Chia

Good morning, everyone. And thank you for joining us today. We're off to a great start in 2024 with strong financial results and substantial progress made on key strategic initiatives. These results are a testament to our strong market position, superior and differentiated offering, as well as the consistent execution of our talented team to keep raising the bar. Today, I'll walk you through our financial highlights and then provide an update on our strategic initiatives. Then Larry will speak to our financial results in more detail.
In the first quarter, we delivered over $1 billion of Marketplace GMV for the second quarter in a row, along with $191 million of revenues and $39 million of adjusted EBITDA. The strength of our business has continued and we are proud to have delivered 20% top line growth and strong adjusted EBITDA margins seated 20%.
We saw widespread demand strength continue in the quarter with fans across categories wanting to experience it live with their favorite artists and teams. Following quarter end, the industry reached an exciting and important milestone for women's sports.
After the Indiana fever selected Caitlin Clark with the first pick in the WNBA. draft. Our women's sports team was the top-selling performer on our platform for the first time ever. We are excited to see the continued growth in women's sports and believe this demonstrates one example of the broad-based strength we are seeing across the live events landscape as the live event industry continues to benefit from long-term tailwinds.
And as we continue to unlock leverage from our recent investments, we look forward to driving sustained double-digit growth on both the top and bottom line for years to come. Through our loyalty program and brand initiative, we reached nearly 60% mix of repeat orders in 2023. Repeat orders are highly accretive to our margin profile and Vivid Seats rewards is one of many mechanisms that we employ to retain users within our ecosystem.
Game Center is another key mechanism that attracts both existing and new customers to our platform, whether it's winning free tickets, competing with brand or scoring promo codes, the engagement and retention of customers has been excellent. In fact, customers that have earned promo codes have on average engaged with our platform 26 times before earning their first code.
The repeated brand exposure and high intent engagement creates many more opportunities for players to browse tickets and make repeat purchases all the while providing us with more information to personalize our offerings to each user.
Last quarter, we announced that we were accelerating our international expansion time line and I want to take a moment to highlight the excellent progress we are making as we focus on internationalizing our platform so that at scale efficiently across geographies, we are pleased to report that we are on track to launch internationally by the end of the year, while the platform cost of international expansion is now embedded in our financial profile, upside from international revenues and contribution is still to come.
As we look abroad, we continue to see favorable market conditions and believe our differentiated value proposition will be well received by international consumers we have also made substantial progress with our recent acquisition of Vegas.com. The integration of this business is going well and we are already driving revenue synergies.
We are now selectively cross-listing and optimizing ticket listings from Vivid Seats such as for top concerts and sporting events on our Vegas.com property. This is driving incremental revenues as high intent live event fans traveling to Vegas, browse an even more comprehensive offering of live event listings on Vegas.com.
Our optimization efforts are ongoing, and we look forward to ramping cross listed volumes. As we said before, we see great potential and multiple avenues for synergies with Vegas.com. Las Vegas, which is already a key market for us, is also the home of the recently announced college basketball Crown, a new postseason tournament beginning in 2025.
We are thrilled to be the tournament official ticketing provider and will be the exclusive home for tickets across all games in the tournament. This is a first for Vivid Seats and an example of how we are leveraging the power of our industry-leading technology platform in new ways.
With this unique and innovative partnership, we will provide fans with a new turnkey and end ticketing experience while simultaneously elevating our brand awareness nationally through another high-profile event in the entertainment capital of the United States.
In summary, we are pleased with the great progress we are making on our strategic initiative on the buyer side of our marketplace. As always, our focus is on driving long-term stickiness with both buyers and sellers.
Shifting to the seller side of our business, we are proud to share that Skybox remains the leading ERP for professional sellers building on our leading position. We've strengthened our seller product lineup further and look forward to launching Skybox, drive our new automated pricing tool later this year.
We continue to expect strong adoption from sellers for this tool, which is plug directly into Sky Box and will leverage robust data from our marketplace. As mentioned on previous calls, we have gone to new lengths to drive innovation and optimization in our marketplace, launching new products for both buyers and sellers, expanding internationally and strengthening R-Texas.
These efforts have resulted in Vivid Seats being recognized amongst the world's greatest innovators. We are proud to share that we have recently been named to Fast Company's List of the World's Most Innovative Companies of 2024. This prestigious list shines a spotlight on businesses that are shaping both industry and culture through innovation and setting new standards.
With that, I will turn it over to Larry for a more detailed review of the quarter.

Lawrence Fey

Thanks Stan. events in the first quarter, our business continued to perform well amidst ongoing end market strength, which we were pleased to translate to solid financial results in the first quarter, we generated more than $1 billion of Marketplace GMV, which increased 20% year over year and was driven by increased total marketplace orders.
Average order size of $358 in the first quarter of 2024 versus $376 in the first quarter of 2023, with the Delta driven by the impact of acquisitions that bring a different angle profile. We delivered $191 million of revenues in the first quarter, an 18% year-over-year increase.
Our take rate was 15.6%, consistent with expectations of 15.5% or higher for full year 2024. In the first quarter, we delivered $39 million of adjusted EBITDA and a 20% adjusted EBITDA margin while making incremental investments to develop our international platform capabilities.
As a reminder, our results from the first quarter of 2023 included $8 million of nonrecurring timing benefits, which will impact year-over-year comparisons.
Turning to cash flow. We generated $39 million of cash from operations in the first quarter, bringing our cash balance to $154 million and our net leverage to 0.7 times forward adjusted EBITDA. We continue to expect strong cash generation and adjusted EBITDA cash conversion in 2024 MBS.
After announcing a new $100 million share repurchase authorization on our fourth quarter earnings call, we repurchased 715,000 shares for an average price of $5.74 in March, leaving $96 million remaining under the authorization at quarter end. At these price levels, we believe repurchasing our stock is an attractive use of our remarks cash flow.
With the strong start to the year, we continue to expect 2024 marketplace GMV in the range of $4.2 billion to $4.5 billion, 2024 revenues in the range of $810 million to $840 million and 2024 adjusted EBITDA in the range of $160 million to $170 million.
Our guidance calls for double digit growth on both the top and bottom line for 2024. And we expect to deliver double digit growth on a sustained basis as we capture continued live event growth in North America and expand abroad.
With a long history of operating leverage in our business, we believe our recent investments will augment both growth and profitability and support adjusted EBITDA margin improvement of 50 basis points per year in the coming years.
Back to you, Stan.

Stanley Chia

Thanks, Larry. Before we conclude and turn to Q&A, I'd like to highlight the progress we have made on our ESG initiatives. Last week, we published our 2024 environmental, social and governance fact sheet providing new and updated performance metrics.
Sustainability and Corporate Responsibility play a vital role in our business strategy, and we are pleased to share the progress we have made in 2023. On the environmental front, we measured and disclosed our Scope one and two greenhouse gas emissions to better understand our impact and enhance transparency and benchmark future progress.
And on the governance front, we will have a majority independent Board of Directors with fully independent Board committees by November 2024. We continue to demonstrate our commitment to enabling exceptional experiences for all stakeholders through the ongoing support of our employees, customers and communities.
To conclude, we are building upon an excellent 2023, where we delivered nearly 25% top and bottom line growth. And we are making significant progress thus far in 2024 on multiple strategic initiatives while delivering great financial results and increasing shareholder value.
We look forward to making continued progress throughout the year toward our international launch and harnessing synergies from our Vegas.com acquisition. We are confident that our long-term strategy sets us up for double digit growth again in 2024 and sustainably thereafter.
With that, operator, let's open it up for questions.

Question and Answer Session

Operator

(Operator Instructions)
Ryan Sigdahl, Craig-Hallum Capital Group.

Ryan Sigdahl

And good morning. Stan. You want to start off start with guidance. So you mentioned accelerating international expansion time line. I guess is that different from what your expectation was a couple of months ago or just relative to the past kind of few years strategy.
And is $10 million still the right cost assumption that guidance and then kind of lastly on guidance, I guess you beat nicely on Q1 reiterated the year. Any other puts takes the besides International in there?

Lawrence Fey

Thanks, Ryan. Yes, I think international is progressing well, I don't think you should interpret that as a change in our philosophy. We are still not assuming within our guidance any time revenue or contribution margin beyond the G&A investment.
If we are to a point where kind of conviction and certainty on timing, that shift to a level where it's prudent to include it, we'll let you know, but we're not at that point yet, but we're trending well to be it will to go live before the end of the year. No changes on the investment amount.
I'd say that's all trending consistent with expectations. And then if you look at Q1 relative to full year guidance, obviously Epic are off to a nice start, but still early in the year with a lot to play out. So it'll be prudent to maintain the targets.

Ryan Sigdahl

Very good. Just for my follow-up, AG partnership, I guess for college basketball, Crown new unique kind of where you guys are going to distribute primary tickets, be the exclusive. But can you talk through I guess, this the uniqueness of this deal, how you want it? Why does a G&A access need vivid? And then if there are any other opportunities like this out there?

Lawrence Fey

Yes. Look, I mean, we're really excited about being their partner on it on this new funding. And as we've continued to demonstrate, we have look to use our technology across multiple vehicles where you need that.
But we do combined with abilities and that we have allow us to serve as wonderful sources of distribution for partners and ultimately create value for fans. And we've got a great relationship with AG. and A. access through this and I think when we looked at what we do well and what they were looking for in a partner, this looks like a fantastic opportunity. And we're really excited to see how it plays out next year.

Ryan Sigdahl

Awesome. Thanks, guys.

Operator

Curtis Nagle, BofA.

Curtis Nagle

Your line is now open group was very much for taking the question of permitting system one for use. So great to hear in terms of Vegas.com, that's ramping nicely synergies starting to come through anymore, either metrics or in terms of just a framework of kind of what potentially lift we could see from cross-selling or else it will integrating that asset in a fulsome way into the platform?

Lawrence Fey

Yes, Chris, thanks for the questions. Look, we were excited when we acquired Vegas.com and you know, call it four, five months. And now we're even more excited about what we see. We continue to look at that as really a critical part of our marketplace business.
And yes, the thesis that or the thesis is that we had going into this, I think, continue to play out well out of that as being a wonderful customer acquisition. So for us that we are we are then able to blend into our other marketplace brands or simply being able to monetize that traffic in an incremental manner where we are now able to add not just a selection that Vegas.com it organically pre-acquisition.
But we are also able to infuse it with events and selection that they didn't have access to prior from the Vivid Seats supply side as they continue to be excited.Those are the pieces that we had going into it, and we're starting to see a lot of that come to fruition and remain really bullish on that for the remainder of the year.

Curtis Nagle

I mean, I will follow up with one competition in the US, obviously, what your primary really only market right now, I would how does that looks kind of relative to, let's say, the end of the year kind of how it shaped up through the quarter.
And I know you did give guidance to your ROE for the quarter, but you put up some really nice GMV. So at a minimum, you're executing well. But just yes, anything to call out in terms of how to think about relative competition for your bigger competitors and just how you think that shapes up through the year?

Stanley Chia

Yes, I'd say we in prior quarters, you I've been following rich, and I think indicated that and back half of last year within those normal bands, perhaps on a little bit closer to a higher side than the lower side, I think that continued into Q1 without meaningful our change.
What I would call out is the you did like a year over year, Q1 '24, it was Q1 '23 comparison. Q1 '23 was on the other side, right within those natural oscillations, Q1 of '23 was a fair bit. We felt less competitively intensive intensive relative to the balance of the year, whereas this year it feels like it's on the higher end of the spectrum, but in both periods, I'd say within within bounds that we see in the past.

Curtis Nagle

Okay. Thanks very much.

Operator

Dan Kurnos, The Benchmark Company.

Dan Kurnos

Yes, thanks. Just a follow up on that, Larry, for a second just stand, given the strong re-engagement and stickiness metrics that you guys have given, you know, kind of noise in the competitive landscape. I know you guys always find unique ways to go out there and market them. But what's kind of the thought here on driving sort of new customers into the system a little bit more aggressively and well, the other guys are trying to figure out a way to market.

Lawrence Fey

Again, I think as you said, we have always focused on the things that we control and look to build our products and platforms that allow acquisition and stickiness to be strong. We spent some time talking about Vegas.com. I think that is is very unique sort of freezing new customer acquisition. If you look at that Crown basketball challenge tournament that we announced with Angie, we're really bullish on that, right.
When you look at the fundamental basis for doing that deal. That will be a very, I think, strong source of customer acquisition and retention that will be unique to us and our ability to retain that within our ecosystem.
Right. So while we always talk about Undoubtedly, this is a competitive environment. The reality is I think we are very focused on the things that we control and have great confidence in the investments that we're making to drive both better acquisition. And as always, I think, much stronger retention, which we see through our engagement vehicles, our repeat rates, our loyalty program, and it's clearly showing the numbers.

Dan Kurnos

And I guess the follow up, I guess on the ag stuff. I mean, what is your appetite for further primary rather than secondary? Or is this as you said more just a unique customer acquisition play.

Lawrence Fey

And I think the appetite is always there for great deals that are accretive to us and wins for our partners. Right. So that I don't know that I'd look at it as primary or secondary. I think I'd look at this as we bring great marketplace technology to the ecosystem with an ability to drive value to those who need distribution as well as being able to allow sellers to participate greatly.
And I think we've got a great partner and a G some who is willing to construct that deal in a way that made sense for both us and them. And wherever those opportunities exist, we'll be really aggressive in pursuing them.

Dan Kurnos

Intelligent deals in this marketplace. Appreciate it. Nice start to the year, guys.

Operator

Maria Ripps, Canaccord.

Maria Ripps

Thanks so much for taking my questions. First, I just wanted to follow up on international. Could you maybe give us a little bit more color on the building blocks of your international infrastructure investments. What are some maybe some of those sort of more intense aspects of the investment cycle? And then any color you can share on the potential sort of markets that you have in mind?

Lawrence Fey

Yes, it's no small feat to certainly internationalize the platform. And I'm really excited and proud of the work that the team's already done so far this year. As you mentioned, there are key building blocks that you have to build and invest in to be able to scalably launching across markets.
And so I think about that as just as simple as it sounds, you know, language capabilities that extend into the platform on the buy side on the sell side, on the support and service side and making sure we understand, I think currency again on the buy side, the sell side into making sure that we can both receive and remit payments, understanding local regulatory environments and ensuring compliance across the platform, right?
I think you look at those as a very large building blocks to make sure that the platform scale that certainly takes up a lot of the investment were and then being able to then customize that and scalable manner to the markets that we decide to go live in is probably the later piece.
And again, I think everything we're seeing so far, we remain really excited about the ability and on track to do that before for the end of the year, as we talk about market, we've looked across, I think the landscape and certainly has as others in the space has discussed this, I think, great opportunity across multiple markets. And so I think as we look at the international landscape will certainly be I'm excited and happy to talk more about it as we start to go live.

Maria Ripps

That's very helpful. And then secondly, sort of with generally stronger than expected Q1, how should we think about the seasonality of GMV and revenue growth this year in context of your full year guidance?

Stanley Chia

Yes, I think no significant shifts in how we think about the year. But I would highlight some of those exogenous reasons that we tend to shy away from giving precise quarterly guidance. I did appear in Q1, for example, pretty good Super Bowl dynamic with Las Vegas as a destination, pretty robust ticket prices corresponding to that, a pretty good College Football Playoff match up a lot on pipe and interest around the MTWA tournament.
So some of those, but particularly in sports a call it exogenous matchup driven elements, fell our way. And so in the spectrum of Q1 relative to the full year, we probably came in a little bit more robust than SOC had gone the other way.

Maria Ripps

Got it. Thank you so much.

Operator

Matt Farrell, Piper Sandler.

Matt Farrell

Thanks for letting me ask a question and congrats on the strong start of the year. Really exciting to hear about the momentum in women's sports here at the end of Q1. I guess maybe as we think about the rest of the year and moving forward, how should we be thinking about the tailwind of women's sports more broadly and maybe even hitting on maybe some of the second-tier sports as well and just the growth you're seeing and those on the platform?

Stanley Chia

Yes, I think that so I guess let's start with sports represents a little under 40% of our GMV collectively within that, there's multiple verticals across each of the major professional leagues, college basketball, college football, soccer. And then now as we think about others, the other sports category, so I dimensionalize that if you sort of think about six or seven major pillars within a portion of the business, that's roughly 40%.
You can think about any one pillar in the mid to high single digits of our overall DoD. What we've certainly seen is down a lot of tailwinds behind soccer tailwind behind some of the fighting UFC in particular, but also some nice dynamics, cross wrestling and women's sports.
And so you can think of a tailwind is probably driving well above category growth rates. But I would temper the overall adjustments you made just given the respective shares into these leagues represents of our sports book, which is a minority of our overall GMV sufficient. So a nice tailwind, problem design Financial, all around it.

Matt Farrell

And then you've hit on a lot of the revenue synergies from the recent acquisitions. But anything you could add on the cost side and synergies there? Is it helping to offset some of the investments internationally at all things?

Lawrence Fey

I'd say in both instances, we acquired businesses that were, I think, run on the lean side of the spectrum there are definitely pockets here and there we're able to consolidate some functions and capabilities, drive some efficiencies, drive some share learnings and bring vendors together, right and get some bundling benefits just from our scale. But I would characterize those is clearly secondary to the strategic and revenue opportunities that we've articulated.

Operator

Cameron Mansson Perrone, Morgan Stanley.

Cameron Mansson Perrone

Morning, guys. First off, just as we think about the mix of GOV across categories, for David. You know, obviously, there's a lot of moving parts this year with the business integration, but I'd love to know, looking forward to '25 and beyond.
Just how do you guys think about where that mix evolves over time and which verticals in your mind are the stronger, more attractive growth vectors long term for that and whether that's from a GOV growth perspective or better worse take rate opportunity perspective?
We just love to hear your thoughts on kind of how you think about that medium long term. And then Larry, following up on your comments around that kind of expectation for margin improvement over time. Just curious also how you guys think about that strategically and why 50 basis points is maybe the right cadence or if it's not that 50 basis points necessarily, because I'm sure that you're not running it down long term for any specific target necessarily and the competitive environment has a lot to do with this, but just how you think about the trade-offs in terms of margin trajectory over time. We'd love to hear. Thanks, guys.

Lawrence Fey

Yes, thanks, Cameron. I'll start with the segments. Generally, we have come to the belief that the secular trends are probably the most robust in concert in particular and driving that as you've got really robust demand dynamics, you don't have the same capacity constraints that you have in sports. So have your pick on the major professionally baseball football hockey basketball in most years?
It's the same teams playing the same stadiums on the same schedule, same playoff opportunity and growth will typically come from price. And then the episodic expansion of a playoff series insertion of in-season tournament credit and NFL, they're talking about 18 or 18 game.
But those types of abilities to drive the number of events are a bit more limited within the existing major sports, whereas in concerts, many venues, especially the largest venues, are well short of 100% capacity utilization.
And our Chicago example are at a drive-by Soldier Field, 65,000 person stadium and I think it's full 20 days a year, right? So the opportunity for artists to trade up and you can extend that right across the United center and a number of the other large stadiums is much more robust than concerts, which I think underpins a nice secular growth tailwind.
We touched on some of the I'll call it secondary sports that have really bolster the existing pillars that I think helps the smart growth rate. But even with that, I would point to the fundamental trends underpinning concerts is probably the more robust the last piece of it, there's not dramatic differences in take rate. There's not dramatic differences in repeat rate across the categories, but they're not identical, right?
You can imagine someone goes to baseball games, and there's just so much so many games in a year. The proclivity to repeat is probably slightly higher than when you see Taylor Swift and ship and come back in your city for five years, IBC that span the category of slightly different, take rates, slightly different repeat rates, perhaps an opportunity over time as we continue driving engagement and driving platform comfort that we can shift consumer behavior to look a little bit more like sports, but that's a very long-term opportunity.
Then shifting to the margin, you know, always a little bit of a bounce we're speaking in aggregate at the P&L and what we're hoping that some of the series of micro decisions will roll up to year after year but ultimately underpinning that when you decompose those margin commentary is a series of risk reward and ROI evaluations across innumerable opportunities. And so if properly calibrating, where do you want to draw a line on what you're saying as to what you're saying.
No to with the background music being that we knowingly made some pretty significant investments into some loyalty and brand initiatives and have committed to driving leverage against those. And I think that impact, it's kind of a marginal decision to make sure that we're stick. We're adhering to that overall ROI profile and ensuring that we're delivering proper returns on the investments we made.

Cameron Mansson Perrone

Got it. Helpful color. Thanks.

Operator

Thomas Forte, Maxim Group.

Thomas Forte

Great. Thanks for taking my question and congrats on the quarter. I joined late, so I apologize if someone has something like this earlier in the acute part, in the earnings release, you indicated you're confident in your ability to grow top and bottom line by double digits for the long term first, are those organic growth rates or reflective of assumptions on future strategic M&A.
And then second lower on that topic, can you talk about your current capital allocation priorities between investing in the existing business, strategic M&A and buybacks?

Lawrence Fey

Yes. I think from a I'll start with the latter on capital allocation. Yes, I think you've are you said on the three things we like to invest it certainly as we think about investment into the business itself, organic investments, if you will, we generate a lot of profitability. We generated a lot of cash flow. I don't think we've in any way deprive the business of investments.
And so some of tying into the prior comments I just made, we see a lot of opportunities. We say up to a number we say no to more. And so we're always evaluating those through risk reward and ROI framework and have not ever come to a point where we said, no to things that we felt like were the right long-term answer and in favor of short term performance.
And so that as we do generate that profitability and cash flow it begs the question right, with that strong balance sheet as we continue to generate cash, what can we do it at the two highest and best uses that we see and then if we can find strategic and accretive acquisition we should pursue.
If we can buy ourselves at attractive prices, we should pursue that. Now both of those are somewhat outside of our control, right, the opportunities that come down the pipeline, our job beyond what we can influence. So we evaluate what is available at any point in time.
And then similarly, if you don't control there where our shares trade. I think we've indicated our share repurchase initiative that we think currently a particularly attractive time for us to be reinvesting in ourselves and that will be and has been and will remain the bar for acquisitions, revenue standalone on a absolute, but also on a relative return basis.
So we'll continue to do that on the back of a double-digit growth profile. I think because of that episodic nature of M&A, we can't and won't build that into our base case growth plans if they do come along real estate vacant, either that fill in or add to the target, but we wouldn't build that into a base case.

Thomas Forte

Thank you, Larry. I appreciate that.

Operator

Andrew Marok, Raymond James.

Andrew Marok

Thanks for taking my questions. On 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 markets, like if I am from Detroit and them visiting for a conference and buy a show ticket. Have you seen uplift from being able to sell me a Tiger's ticket when I get back to Detroit?

Lawrence Fey

Yes, hey, under way that your exact example is a really strong thesis under which we acquired the business. And I think we're excited by the early signs we're seeing there. We are certainly underway in that campaign. We believe is 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 and brand that has all of that selection reward tied to the home market that they're in.
I think those campaigns have launched. We're really encouraged by what we see. And I think given the and a lower frequency of this industry in general, we still need some time to play out, but as we always talk about our repeat rate on a cohort basis continue to trend, you know, as high as they've ever been. And I think we are really excited about the ability of, in fact, accelerate that through the Vegas.com synergies that we see on assets Great.

Andrew Marok

Thank you. And maybe one more, if I could on 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.

Stanley Chia

Yes, Andrew, I would say I don't think I've seen anything that would point to change when we looked in the past that the demographic profile of our customers, I think it's a pretty reflective of what you had anticipated right balance across almost any way you slice it geographically got gender income age, obviously reflective of these and that cost money, there's maybe some skew towards affordability.
But beyond that, it's been very broad-based across interests that are, by definition, quite broad and nothing we've seen suggesting at a broad level, any weakening in consumer interest in attending these types of events and going more precise than that, I haven't seen any meaningful shifts across those groups.

Lawrence Fey

Yes, we'll bring it back, Andrew, you just fill what we are. 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 were coming into purchasing power. I think it's clear that this is a category that they will remain prioritize on their spend and then on the Vivid Seats, I think that's where our investments are there to really capture and retain customers regardless of which demo, regardless of which, frankly you're in, I think interest in the category remained strong at shifting to perhaps stronger as we move into those demos in our platform continues to be built with the premise of engaging and retaining those users with Vivid Seats.

Andrew Marok

Appreciate the detail. Thank you.

Operator

Ralph Schackart, William Blair.

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? And then just a follow-up switching gears to Skybox drive.
You've been in beta here for a little while maybe you can provide an update what you're hearing from from the beta and maybe thoughts longer term on the ability to monetize that on a longer term basis. Thank you.

Lawrence Fey

Yes, Ralph, I'll take question and kind of drive also trending. You know, I think really well on track to launch later this year. As always, we're always judicious with this right I think this is a platform that sellers run the entirety of their business. 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.
Yes, I'll happily share. You know, when we look at the waitlist and people that we have year to come onto the platform is a triple digit waitlist and growing rightsizing as our beta continues to grow in size of people on the beta, the weight with continues to grow at an even accelerated clip.
I mean, as I've always said, I think one, our guidance has zero incremental contribution from Skybox D.R. But if you look at the industry in terms of prices, that are out there. I don't think you'll find a price or that is free of charge setting. Should we decide at some point to monetize the product, I think it would fully be within industry norms to do so.

Stanley Chia

And then on the macro question, yes, I think we had previously articulated our views on our long-term industry growth being, call it in North America high single digits to low double digits and coming off of a couple of years of really strong performance with industry growing well above the level we had built in a perspective of being on the lower end of that range.
With that also including some acknowledgment that there's a a couple of hundred basis points of headwind with Taylor Beyoncé, not being on the road in 2024. So nothing has meaningfully changed in that regard. I think I'd call out if anything, sports is trending a little bit better than we would have expected given some of those favorable exogenous influences start the year.
And then you can think about that the calendar of Consera timing, the headwinds that we are quoting on a full-year basis disproportionately hit in the first seven months of the year and alleviate a bit in the back half. And so I think you're you're swimming into your sort of an upstream a bit on the concert side right now, but I expect that to alleviate in the back half of the year.

Ralph Schackart

Thanks, Stan. Thanks, Larry.

Operator

Thank you. I'm showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.