Vivid Seats Inc (SEAT) Q3 2024 Earnings Call Highlights: Navigating Market Challenges with ...

GuruFocus.com2024-11-08

Revenue: $187 million in the third quarter. Adjusted EBITDA: $34 million with an 18% adjusted EBITDA margin. Marketplace GOV: $872 million, a 13% year-over-year decline. Take Rate: 17.5%, up 200 basis...

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WTS","start_time":0,"source_url":"https://finance.yahoo.com/news/vivid-seats-inc-seat-q3-150141123.html","article_id":"2481107589","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481107589","pubTimestamp":1731078101,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Adjusted EBITDA: $34 million with an 18% adjusted EBITDA margin.Marketplace GOV: $872 million, a 13% year-over-year decline.Take Rate: 17.5%, up 200 basis points year-over-year.2024 Guidance: Marketplace GOV of $3.8 billion to $4.0 billion; Revenues of $760 million to $780 million; Adjusted EBITDA of $145 million to $155 million.GuruFocus has detected 4 Warning Sign with SEAT.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Vivid Seats Inc  delivered $187 million in revenues and $34 million in adjusted EBITDA with an 18% adjusted EBITDA margin, showcasing strong unit economics despite market challenges.Vivid Seats Inc  successfully launched SkyBox Drive, an innovative pricing tool, with rapid adoption and a waitlist of prospective users, strengthening its position with professional sellers.Vivid Seats Inc  is on track to launch operations in select international geographies by the end of the year, expanding its total addressable market","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SEATW":"Vivid Seats Inc. WTS","SEAT":"Vivid Seats Inc."},"translate_title":"Vivid Seats Inc(SEAT)2024年第三季度收益看涨期权亮点：应对市场挑战……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SEAT":1,"SEATW":0.9},"content_text":"Revenue: $187 million in the third quarter.\nAdjusted EBITDA: $34 million with an 18% adjusted EBITDA margin.\nMarketplace GOV: $872 million, a 13% year-over-year decline.\nTake Rate: 17.5%, up 200 basis points year-over-year.\nAverage Order Size: 11% year-over-year reduction.\nTotal Marketplace Orders: 2% year-over-year decline.\n2024 Guidance: Marketplace GOV of $3.8 billion to $4.0 billion; Revenues of $760 million to $780 million; Adjusted EBITDA of $145 million to $155 million.\n\n\nWarning! GuruFocus has detected 4 Warning Sign with SEAT.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nVivid Seats Inc (NASDAQ:SEAT) delivered $187 million in revenues and $34 million in adjusted EBITDA with an 18% adjusted EBITDA margin, showcasing strong unit economics despite market challenges.\nThe company announced a strategic partnership with Brandon Marshall's IM Athlete, enhancing brand awareness and engagement through exclusive content and promotions.\nVivid Seats Inc (NASDAQ:SEAT) successfully launched SkyBox Drive, an innovative pricing tool, with rapid adoption and a waitlist of prospective users, strengthening its position with professional sellers.\nThe company was recognized by Newsweek for the fifth time for its excellence in customer service in the ticketing category.\nVivid Seats Inc (NASDAQ:SEAT) is on track to launch operations in select international geographies by the end of the year, expanding its total addressable market (TAM).\n\n Negative Points \n\nMarketplace Gross Order Value (GOV) declined by 13% year-over-year, driven by an 11% reduction in average order size and a 2% decline in total marketplace orders.\nThe concert industry faced a 'digestion year' with a notable reduction in stadium tour activity, impacting Vivid Seats Inc (NASDAQ:SEAT)'s performance.\nHigh marketing intensity from competitors has created pressure on incremental orders and GOV, with some competitors pursuing uneconomic volume growth.\nThe company's guidance for 2024 Marketplace GOV and revenues was revised downwards due to challenging concert supply dynamics and continued marketing intensity.\nFree cash flow conversion is expected to be lower in 2024 due to reduced top-line growth and working capital headwinds, impacting cash generation.\n\n Q & A Highlights \nQ: Can you explain the implied take rate guidance for Q4, considering the strong performance in Q2 and Q3? A: Lawrence Fey, CFO: The take rate in Q2 and Q3 was strong due to a balance between take rate and volume. We aim to maintain flexibility to adjust based on market conditions. The World Series, being a high AOS event, can deflate take rates when it constitutes a larger portion of our business. This year's World Series matchup was particularly favorable, which may impact take rates.\nQ: How do you view the 2024 \"digestion year\" for concerts, and is this a cyclical pattern? A: Lawrence Fey, CFO: The event mix varies, with concerts facing challenging comps due to fewer high-profile artists compared to last year. Sports and theater have shown strength, indicating robust demand. The concert supply issue is temporary, and we expect a return to growth in 2025.\nQ: What are your expectations for industry growth in 2025, given a potentially stronger concert supply? A: Stanley Chia, CEO: We are optimistic about 2025, expecting a return of stadium tours and strong secular trends in the concert industry. The current year saw a shift to smaller venues, but we anticipate a more robust lineup next year.\nQ: How does the high marketing intensity from competitors affect your customer acquisition strategy? A: Stanley Chia, CEO: We focus on long-term value and strong unit economics, even amid aggressive competitor marketing. Our investments in loyalty programs and differentiated products allow us to target volume effectively and maintain discipline in execution.\nQ: Can you provide insights on the adoption of SkyBox Drive and its impact on sellers? A: Stanley Chia, CEO: SkyBox Drive has seen rapid adoption, particularly among existing SkyBox users, due to its turnkey integration and unique features. We are pleased with the early uptake and expect continued growth as more sellers onboard.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481107589"}