Disciplined Execution with Synergy Realization and New Product Roll-outs
CHICAGO, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Vivid Seats Inc. (NASDAQ: SEAT) ("Vivid Seats” or "we”), a leading marketplace that utilizes its technology platform to connect millions of buyers with thousands of ticket sellers across hundreds of thousands of events each year, today provided financial results for the third quarter ended September 30, 2024.
"Demand remained robust in the third quarter, although we experienced a headwind from concert supply, including from venue and artist mix, that we believe to be temporary," said Stan Chia, Vivid Seats CEO. "We expect industry growth to accelerate in 2025 as concerts return to their long-term trend. In the third quarter, we operated with discipline and delivered strong unit economics, while executing strongly and generating synergies with our Vegas.com acquisition through both cross-listed inventory and by converting Vegas.com customers to Vivid Seats customers. Lastly, we are excited to announce that Skybox Drive has exited its beta phase and we are already in the process of onboarding more than one hundred users, with hundreds more on our waitlist. As we ramp adoption, the innovative pricing functionality of Skybox Drive will further enforce the stickiness of Skybox and fortify our already leading position with professional sellers."
Third Quarter 2024 Key Operational and Financial Metrics
- Marketplace GOV of $871.7 million - down 13% from $998.9 million in Q3 2023
- Revenues of $186.6 million - down 1% from $188.1 million in Q3 2023
- Net income of $9.2 million - down 43% from $16.0 million in Q3 2023
- Adjusted EBITDA of $34.1 million - up 2% from $33.4 million in Q3 2023
Key Performance Indicators ('000s)
| Three Months Ended
September 30, | Nine Months Ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Marketplace GOV(1) | $ | 871,726 | $ | 998,933 | $ | 2,898,269 | $ | 2,808,200 | |||
| Total Marketplace orders(2) | 2,969 | 3,022 | 8,943 | 7,924 | |||||||
| Total Resale orders(3) | 116 | 110 | 316 | 273 | |||||||
| Adjusted EBITDA(4) | $ | 34,077 | $ | 33,367 | $ | 117,172 | $ | 106,879 | |||
| (1) | Marketplace Gross Order Value ("Marketplace GOV") represents the total transactional amount of Marketplace segment orders placed on our platform in a period, inclusive of fees, exclusive of taxes and net of cancellations that occurred during that period. During the three and nine months ended September 30, 2024, Marketplace GOV was negatively impacted by cancellations in the amount of $35.4 million and $74.9 million, respectively, compared to $10.1 million and $33.9 million during the three and nine months ended September 30, 2023, respectively. |
| (2) | Total Marketplace orders represents the volume of Marketplace segment orders placed on our platform in a period, net of cancellations that occurred during that period. During the three and nine months ended September 30, 2024, our Marketplace segment experienced 77,012 and 179,453 cancellations, respectively, compared to 28,203 and 78,034 cancellations during the three and nine months ended September 30, 2023, respectively. |
| (3) | Total Resale orders represents the volume of Resale segment orders in a period, net of cancellations that occurred during that period. During the three and nine months ended September 30, 2024, our Resale segment experienced 2,411 and 4,494 cancellations, respectively, compared to 851 and 2,363 cancellations during the three and nine months ended September 30, 2023, respectively. |
| (4) | Adjusted EBITDA is a financial measure not defined under accounting principles generally accepted in the United States of America ("US GAAP"). We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well as provides a useful measure for making period-to-period comparisons of our business performance. See the Use of Non-GAAP Financial Measures section below for more information and a reconciliation of Adjusted EBITDA to its most directly comparable US GAAP measure. |
2024 Financial Outlook
Vivid Seats now anticipates Marketplace GOV, revenues and Adjusted EBITDA for the year ending December 31, 2024 to be:- Marketplace GOV in the range of $3.8 to $4.0 billion (previously $4.0 to $4.3 billion)
- Revenues in the range of $760.0 to $780.0 million (previously $810.0 to $830.0 million)
- Adjusted EBITDA in the range of $145.0 to $155.0 million (previously $160.0 to $170.0 million)*
*We calculate forward-looking Adjusted EBITDA based on internal forecasts that omit certain information that would be included in forward-looking net income, the most directly comparable US GAAP measure. We do not attempt to provide a reconciliation of forward-looking Adjusted EBITDA to forward-looking net income because the timing and/or probable significance of certain excluded items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Such items could have a significant and unpredictable impact on our future US GAAP financial results.
Webcast Details
Vivid Seats will host a webcast at 8:30 a.m. Eastern Time today to discuss the third quarter 2024 financial results, business updates and financial outlook. Participants may access the live webcast and supplemental earnings presentation on the events page of the Vivid Seats Investor Relations website at https://investors.vividseats.com/events-and-presentations.
About Vivid Seats
Founded in 2001, Vivid Seats is a leading online ticket marketplace committed to becoming the ultimate partner for connecting fans to the live events, artists, and teams they love. Based on the belief that everyone should "Experience It Live,” the Chicago-based company provides exceptional value by providing one of the widest selections of events and tickets in North America and an industry leading Vivid Seats Rewards program where all fans earn on every purchase. Vivid Seats has been chosen as the official ticketing partner by some of the biggest brands in the entertainment industry including ESPN, Rolling Stone, and the Los Angeles Clippers. Vivid Seats also owns Vivid Picks, a daily fantasy sports app. Through its proprietary software and unique technology, Vivid Seats drives the consumer and business ecosystem for live event ticketing and enables the power of shared experiences to unite people. Vivid Seats has been recognized by Newsweek as one of America's Best Companies for Customer Service in ticketing. Fans who want to have the best live experiences can start by downloading the Vivid Seats mobile app, going to vividseats.com, or calling 866-848-8499.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements in this press release relate to, without limitation: our future operating results and financial position, including our expectations regarding Marketplace GOV, revenues and Adjusted EBITDA; our expectations with respect to live event industry growth, concert supply and our TAM and competitive positioning; our business strategy; share repurchases and M&A opportunities; the adoption and benefits of Skybox Drive; and the plans and objectives of management for future operations. Words such as "anticipate,” "believe,” "can,” "continue,” "could,” "designed,” "estimate,” "expect,” "forecast,” "future,” "goal,” "intend,” "likely,” "may,” "plan,” "project,” "propose,” "seek,” "should,” "target,” "will” and "would,” as well as similar expressions which predict or indicate future events and trends or which do not relate to historical matters, are intended to identify such forward-looking statements. Forward-looking statements are not guarantees of future performance, conditions or results, and are subject to risks, uncertainties and assumptions that can be difficult to predict and/or outside of our control. Therefore, actual results may differ materially from those contemplated by any forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to: our ability to generate sufficient cash flows or to raise additional capital when necessary or desirable; the supply and demand of live concert, sporting and theater events; our ability to maintain and develop our relationships with ticket buyers, sellers and partners; changes in internet search engine algorithms and dynamics, search engine disintermediation or mobile application marketplace rules; our ability to compete in the ticketing industry; our ability to continue to maintain and improve our platform and develop successful new solutions and enhancements or improve existing ones; the impact of extraordinary events, including disease epidemics and pandemics; our ability to identify suitable acquisition targets and to complete planned acquisitions; the impact of our acquisitions and strategic investments, including our integration of Wavedash Co., Ltd. and Vegas.com, LLC; the effects of any recession and/or heightened inflation; our ability to maintain the integrity of our information systems and infrastructure, and to identify, assess and manage relevant cybersecurity risks; and other factors discussed in the "Risk Factors” sections of our most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contacts:
Investors
Kate Africk
Media
Julia Young
| VIVID SEATS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (Unaudited) | |||||||
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 202,274 | $ | 125,484 | |||
| Restricted cash | 6,187 | 6,950 | |||||
| Accounts receivable - net | 65,306 | 58,481 | |||||
| Inventory - net | 22,254 | 21,018 | |||||
| Prepaid expenses and other current assets | 29,899 | 34,061 | |||||
| Total current assets | 325,920 | 245,994 | |||||
| Property and equipment - net | 9,589 | 10,156 | |||||
| Right-of-use assets - net | 9,344 | 9,826 | |||||
| Intangible assets - net | 225,128 | 241,155 | |||||
| Goodwill | 946,857 | 947,359 | |||||
| Deferred tax assets | 81,245 | 85,564 | |||||
| Investments | 7,152 | 6,993 | |||||
| Other non-current assets | 5,356 | 3,052 | |||||
| Total assets | $ | 1,610,591 | $ | 1,550,099 | |||
| Liabilities, redeemable noncontrolling interests, and shareholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 224,328 | $ | 257,514 | |||
| Accrued expenses and other current liabilities | 159,781 | 191,642 | |||||
| Deferred revenue | 24,632 | 34,674 | |||||
| Current maturities of long-term debt | 3,950 | 3,933 | |||||
| Total current liabilities | 412,691 | 487,763 | |||||
| Long-term debt - net | 385,730 | 264,632 | |||||
| Long-term lease liabilities | 15,803 | 16,215 | |||||
| TRA liability | 162,233 | 165,699 | |||||
| Other liabilities | 22,659 | 29,031 | |||||
| Total long-term liabilities | 586,425 | 475,577 | |||||
| Commitments and contingencies | |||||||
| Redeemable noncontrolling interests | 282,033 | 481,742 | |||||
| Shareholders' equity | |||||||
| Class A common stock, $0.0001 par value; 500,000,000 shares authorized, 142,866,611 and 141,167,311 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively | 14 | 14 | |||||
| Class B common stock, $0.0001 par value; 250,000,000 shares authorized, 76,225,000 shares issued and outstanding at September 30, 2024 and December 31, 2023 | 8 | 8 | |||||
| Additional paid-in capital | 1,333,518 | 1,096,430 | |||||
| Treasury stock, at cost, 11,433,749 and 7,291,497 shares at September 30, 2024 and December 31, 2023, respectively | (75,584 | ) | (52,586 | ) | |||
| Accumulated deficit | (929,284 | ) | (939,596 | ) | |||
| Accumulated other comprehensive income | 770 | 747 | |||||
| Total shareholders' equity | 329,442 | 105,017 | |||||
| Total liabilities, redeemable noncontrolling interests, and shareholders' equity | $ | 1,610,591 | $ | 1,550,099 | |||
| VIVID SEATS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands) (Unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | $ | 186,605 | $ | 188,133 | $ | 575,773 | $ | 514,576 | |||||||
| Costs and expenses: | |||||||||||||||
| Cost of revenues (exclusive of depreciation and amortization shown separately below) | 51,029 | 50,462 | 149,377 | 130,838 | |||||||||||
| Marketing and selling | 67,835 | 77,006 | 205,695 | 196,970 | |||||||||||
| General and administrative | 46,306 | 37,225 | 149,725 | 107,921 | |||||||||||
| Depreciation and amortization | 10,669 | 3,301 | 31,654 | 8,603 | |||||||||||
| Change in fair value of contingent consideration | - | 20 | - | (998 | ) | ||||||||||
| Income from operations | 10,766 | 20,119 | 39,322 | 71,242 | |||||||||||
| Other expense (income): | |||||||||||||||
| Interest expense - net | 6,300 | 2,544 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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