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Vivid Seats Inc (SEAT) (Q1 2024) Earnings Call Transcript Highlights: Strong Performance with ...

GuruFocus Research
·3-min read

  • Marketplace GMV: Over $1 billion, marking the second consecutive quarter at this level.

  • Revenue: $191 million, an 18% increase year-over-year.

  • Adjusted EBITDA: $39 million, with a 20% margin.

  • Take Rate: 15.6%, aligning with full-year expectations of 15.5% or higher.

  • Cash from Operations: Generated $39 million in the quarter.

  • Cash Balance: Reached $154 million.

  • Net Leverage: 0.7 times forward adjusted EBITDA.

  • Share Repurchase: 715,000 shares at an average price of $5.74, with $96 million remaining under the authorization.

  • 2024 Financial Guidance: Marketplace GMV between $4.2 billion to $4.5 billion, revenues between $810 million to $840 million, and adjusted EBITDA between $160 million to $170 million.

Release Date: May 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Vivid Seats Inc (NASDAQ:SEAT) reported strong financial results with over $1 billion of Marketplace GMV for the second consecutive quarter.

  • The company achieved $191 million in revenues and $39 million in adjusted EBITDA, demonstrating a 20% top line growth and robust adjusted EBITDA margins.

  • Vivid Seats Inc (NASDAQ:SEAT) has a high mix of repeat orders at nearly 60%, indicating strong customer retention and loyalty.

  • The company is making significant progress in its international expansion, expecting to launch internationally by the end of the year.

  • Vivid Seats Inc (NASDAQ:SEAT) successfully integrated the acquisition of Vegas.com, driving revenue synergies and cross-listing ticket listings to enhance offerings.

Negative Points

  • The average order size decreased from $376 in Q1 2023 to $358 in Q1 2024, influenced by the impact of acquisitions.

  • The company faces ongoing competitive pressures in the ticketing market, which could impact growth and market share.

  • Investments in international expansion are embedded in the financial profile, which could affect short-term profitability.

  • The guidance for the year, despite a strong Q1, remains cautious due to potential market volatility and operational risks.

  • While there are revenue synergies from the Vegas.com acquisition, the full potential and integration benefits are yet to be fully realized and quantified.

Q & A Highlights

Q: Can you provide an update on the international expansion and its impact on guidance? A: (Lawrence Fey - CFO) International expansion is progressing well, with no change in philosophy. The guidance does not assume any revenue from international markets yet, but the company is on track to launch internationally by the end of the year. The investment amount remains consistent with expectations.

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Q: Could you discuss the unique aspects of the AG partnership for the college basketball Crown and its potential impact? A: (Lawrence Fey - CFO) The partnership with AG is exciting as it leverages Vivid Seats' technology for distribution, creating value for fans and partners. This partnership is seen as a unique opportunity for customer acquisition and retention.

Q: What synergies are being realized from the Vegas.com acquisition, particularly in terms of cross-selling? A: (Lawrence Fey - CFO) The integration of Vegas.com is progressing well, enhancing customer acquisition and enabling incremental revenue through cross-listing of events. This synergy aligns with the company's strategy to monetize traffic more effectively.

Q: How is the competitive landscape in the U.S. impacting the business? A: (Stanley Chia - CEO) The competitive environment remains within normal bounds, similar to previous quarters. While competition is on the higher end of the spectrum, it is still within expected ranges.

Q: Can you provide insights into the growth and impact of women's sports on your platform? A: (Stanley Chia - CEO) Women's sports are seeing significant growth and are becoming a more prominent part of the sports category on Vivid Seats' platform, contributing to broader market growth.

Q: What are the expectations for the Skybox drive product and its potential market impact? A: (Lawrence Fey - CFO) Skybox drive is on track for launch later this year, with strong interest indicated by a growing waitlist. While currently not monetized, there is potential for future monetization consistent with industry norms.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.