Vivid Seats, Inc. Q4 FY2023 earnings call

• 2023 was a transformational year with nearly 25% top and bottom line growth. - Marketplace GOV grew 23% in 2023, driven by a 19% increase in total marketplace orders. - Fourth quarter marketplace GOV grew 31% year-over-year. - Launched Game Center in the app, which has engaged users and translated to purchases. - Completed acquisitions of Wavedash and vegas.com, expanding total addressable market (TAM). - SkyBox Drive was in beta and on track for launch later in 2023. - Authorized a new $100 million share repurchase program.

In 2023, Vivid Seats achieved $3.9 billion of marketplace GOV, $713 million of revenues, and $142 million of adjusted EBITDA. The fourth quarter saw marketplace GOV of $1.1 billion, revenues of $198 million, and adjusted EBITDA of $35 million. The repeat order mix stood at 59% in 2023, up from 56% in 2022. Game Center within the app had over 260,000 users, and team partnerships were expanded across multiple leagues.

• Maintained marketplace GOV guidance at $4.2 billion to $4.5 billion and revenue guidance at $810 million to $840 million for 2024. - Adjusted EBITDA guidance for 2024 is in the range of $160 million to $170 million. - Board authorized a new $100 million share repurchase program reflecting confidence in the share price relative to business performance.

• Regulatory risks related to trip fees or junk fees that could impact the business. - Competitive dynamics that could affect market share. - Challenges associated with international expansion, including building infrastructure and competing in new geographies.

Q: Provide more color on accelerating investments in international.

A: Stan Chia mentioned excitement about international due to pent-up demand and evolution in the landscape, with plans to invest to take advantage of the opportunity.

Q: Color on loyalty program and repeat orders.

A: Stan Chia said the loyalty program 'buy 10, get one free' along with unique experiences drives increased repeat orders, now at 59%.

Q: Update on vegas.com cross-promotion.

A: Stan Chia said early signs are positive with cross-pollination of inventory and vegas.com as a profitable customer acquisition engine.

Q: Cadence of GOV and EBITDA by quarter.

A: Larry Fey explained Q1 is typically lightest, Q4 strongest, with operating leverage affecting margins.

Q: Expectations for SkyBox Drive monetization.

A: Stan Chia said no monetization modeled in guidance, but upside possible.

Q: International geographic opportunities and share repurchase cadence.

A: Stan Chia said international regions not specified yet, Larry Fey discussed share repurchase flexibility due to disconnect between share price and performance.

Q: Macro environment and regulatory backdrop.

A: Larry Fey noted healthy demand backdrop, Stan Chia supported regulatory efforts for competitive playing field.

Q: International investment impact on guidance.

A: Larry Fey said $10 million incremental spend on infrastructure with no incremental revenue assumed in guidance initially.

Q: SkyBox Drive market share.

A: Stan Chia said excited about SkyBox, leading position with professional sellers.

Q: Confidence in sustainable double-digit growth.

A: Larry Fey and Stan Chia emphasized multiple growth pathways in North America and international as drivers of sustained double-digit growth