On November 7, 2023, Vivid Seats Inc (SEAT, Financial), a leading marketplace for live event tickets, released its financial results for the third quarter ended September 30, 2023. The company reported significant growth in its Marketplace Gross Order Value (GOV), revenues, and Adjusted EBITDA, while also announcing the acquisition of Vegas.com.
Financial Highlights
Vivid Seats Inc (SEAT, Financial) reported a 28% increase in Marketplace GOV to $998.9 million, up from $781.8 million in Q3 2022. Revenues also saw a significant increase, rising by 20% to $188.1 million from $156.8 million in the same period last year. However, net income decreased by 15% to $16.0 million from $18.7 million in Q3 2022. Adjusted EBITDA saw an 18% increase to $33.4 million from $28.3 million in Q3 2022.
Acquisition of Vegas.com
CEO Stan Chia announced the acquisition of Vegas.com, a strategic move that will enhance Vivid Seats' scale and reach in the U.S. entertainment capital. The acquisition is expected to increase the company's domestic TAM by over $6 billion and offer long-term synergistic upside, while also being financially accretive.
2023 and 2024 Financial Outlook
Vivid Seats Inc (SEAT, Financial) raised its 2023 guidance and provided initial 2024 guidance. For 2023, the company now anticipates Marketplace GOV in the range of $3.75 billion to $3.90 billion, revenues in the range of $685.0 million to $705.0 million, and Adjusted EBITDA in the range of $136.0 million to $142.0 million. For 2024, the company anticipates Marketplace GOV in the range of $4.20 billion to $4.50 billion, revenues in the range of $810.0 million to $840.0 million, and Adjusted EBITDA in the range of $170.0 million to $180.0 million.
Key Performance Indicators
The company reported key performance indicators for the third quarter of 2023. Total Marketplace orders increased to 3,022,000, up from 2,572,000 in Q3 2022. Total Resale orders also saw an increase to 110,000 from 90,000 in the same period last year. Adjusted EBITDA increased to $33.4 million from $28.3 million in Q3 2022.
Balance Sheet and Cash Flow
As of September 30, 2023, Vivid Seats Inc (SEAT, Financial) reported total assets of $1.39 billion, up from $1.15 billion as of December 31, 2022. The company's cash and cash equivalents stood at $268.7 million. For the nine months ended September 30, 2023, the company reported net cash provided by operating activities of $114.4 million.
Explore the complete 8-K earnings release (here) from Vivid Seats Inc for further details.
