Vivid Seats (SEAT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $186.6M–$187M, down 1% year-over-year, with net income of $9.2M, down 43%, and Adjusted EBITDA of $34M–$34.1M, with an 18% margin, despite concert supply headwinds and high marketing intensity.

• Marketplace GOV was $871.7M–$872M, down 13% year-over-year, mainly due to an 11% decline in average order size and increased event cancellations.

• Strategic progress included the full launch of Skybox Drive, synergies from the Vegas.com acquisition, and a new partnership with I Am Athlete to boost brand awareness.

• Sports and theater categories showed robust demand, offsetting some concert weakness.

• Net income margin for Q3 2024 was 5%, compared to 14% in Q3 2023.

Financial highlights

• Q3 2024 revenue was $186.6M–$187M (down 1% year-over-year); Adjusted EBITDA was $34M–$34.1M (flat to slightly up year-over-year) with an 18% margin.

• Marketplace GOV was $871.7M–$872M, down 13% year-over-year, impacted by lower average order size and concert tour cancellations.

• Net income for Q3 2024 was $9.2M, down 43% from Q3 2023.

• Diluted EPS was $0.04 in Q3 (down from $0.07); $0.08 for nine months (down from $0.43).

• Cash and cash equivalents stood at $202M–$202.3M as of September 30, 2024.

Outlook and guidance

• 2024 Marketplace GOV guidance is $3.8B–$4.0B; revenue $760M–$780M; Adjusted EBITDA $145M–$155M.

• Guidance was revised downward due to concert supply headwinds.

• Management expects concert supply and industry growth to rebound in 2025, with long-term double-digit CAGR targets.

• Expects 60%-70% free cash flow conversion in a normalized growth environment.

• Sufficient liquidity is projected for the next 12 months and beyond.