Vivid Seats Reports First Quarter 2025 Results
CHICAGO, May 06, 2025 (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 first quarter ended March 31, 2025.
"In the first quarter we continued to see robust competitive intensity and softening industry trends amidst consumer uncertainty," said Stan Chia, Vivid Seats CEO. "Despite these headwinds, we remain confident in the resiliency of our industry and the long-term tailwinds driving North American live events. Our historical approach has been to execute with disciplined rigor and focus on the things we can control. In this shifting environment, we are focused on operational discipline to manage the business for the long term. We will continue our cost-disciplined approach while making strategic and focused investments in both marketing and technology."
First Quarter 2025 Key Operational and Financial Metrics
-- Marketplace GOV of $820.4 million -- down 20% from $1,028.5 million in Q1
2024
-- Revenues of $164.0 million -- down 14% from $190.9 million in Q1 2024
-- Net loss of $9.8 million -- down 191% from net income of $10.7 in Q1 2024
-- Adjusted EBITDA of $21.7 million -- down 44% from $38.9 million in Q1
2024
"With elevated uncertainty across the global economy, the health of the consumer, and the performance marketing landscape, we are suspending guidance for fiscal year 2025," said Lawrence Fey, Vivid Seats CFO. "We currently anticipate industry volumes to be flat-to-down for the year versus our prior expectation of mid-to-high single digit growth. We will face easier year-over-year comps in the second half of the year, but anticipate competitive intensity to persist and continue to pressure results."
Key Business Metrics and Non-U.S. GAAP Financial Measure
We use the following metrics to evaluate our performance, identify trends, formulate financial projections, and make strategic decisions. We believe these metrics provide useful information to investors and others in understanding and evaluating our results of operations in the same manner as management.
The following table summarizes our key business metrics and non-U.S. GAAP financial measure for the three months ended March 31, 2025 and 2024 (in thousands):
Three Months Ended March 31,
--------------------------------
2025 2024
--------------- ---------------
Marketplace GOV(1) $ 820,359 $ 1,028,477
Marketplace orders(2) 2,296 2,876
Resale orders(3) 105 99
Adjusted EBITDA(4) $ 21,721 $ 38,920
(1) Marketplace Gross Order Value ("Marketplace GOV") represents the total transactional amount of Marketplace orders placed on our online platform in a period, inclusive of fees, exclusive of taxes, and net of event cancellations that occurred during the period. During the three months ended March 31, 2025 and 2024, Marketplace GOV was negatively impacted by event cancellations in the amount of $15.5 million and $18.3 million, respectively.
(2) Marketplace orders represent the volume of Marketplace-related transactions processed through our online platform in a period, net of event cancellations that occurred during the period. During the three months ended March 31, 2025 and 2024, our Marketplace segment experienced 42,353 and 50,049 event cancellations, respectively.
(3) Resale orders represent the volume of Resale-related transactions processed through a given platform (including our own) in a period, net of event cancellations that occurred during the period. During the three months ended March 31, 2025 and 2024, our Resale segment experienced 885 and 872 event cancellations, respectively.
(4) Adjusted EBITDA is a financial measure not defined under accounting principles generally accepted in the United States of America ("U.S. GAAP"). We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results and serves as a useful measure for making period-to-period comparisons of our business performance. See the "Adjusted EBITDA" section below for more information, including a reconciliation of adjusted EBITDA to net income (loss), the most directly comparable U.S. GAAP financial measure.
2025 Financial Outlook
Due to the factors discussed above, Vivid Seats is suspending guidance for the year ending December 31, 2025.
Webcast Details
Vivid Seats will host a webcast at 8:30 a.m. Eastern Time today to discuss the first quarter 2025 financial results and business updates. 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 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. Words such as "anticipate," "believe," "can," "continue," "could," "design," "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. The forward-looking statements in this press release relate to, without limitation: our future operating results and financial position; our expectations with respect to live event industry growth, concert supply, and our TAM and competitive positioning; our business strategy; and the plans and objectives of management for future operations. 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 are 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 and/or raise additional capital when necessary or desirable; the supply and demand of live concert, sporting, and theater events; the impact of adverse economic conditions and other factors affecting discretionary consumer and corporate spending; our ability to maintain and develop our relationships with ticket buyers, sellers, and partners; our ability to compete in the ticketing industry; our ability to continue to maintain and improve our platform and to successfully develop new and improved solutions and enhancements; the impact of extraordinary events, including disease epidemics; our ability to identify suitable acquisition targets, to complete planned acquisitions, and to realize the expected benefits of completed acquisitions and other strategic investments; our ability to comply with applicable laws and regulations; the impact of unfavorable outcomes in legislation and legal proceedings; 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" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" 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. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contacts:
Investors
Kate Africk
Kate.Africk@vividseats.com
Media
Julia Young
Julia.Young@vividseats.com
VIVID SEATS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data) (Unaudited)
March 31, December 31,
2025 2024
---------- --------------
Assets
Current assets:
Cash and cash equivalents $ 199,471 $ 243,482
Restricted cash 1,222 1,166
Accounts receivable -- net 56,862 48,315
Inventory -- net 27,653 19,601
Prepaid expenses and other current
assets 34,582 32,607
--------- ----------
Total current assets 319,790 345,171
Property and equipment -- net 13,815 12,567
Right-of-use assets -- net 11,748 12,008
Intangible assets -- net 228,057 233,116
Goodwill -- net 945,301 943,119
Deferred tax assets -- net 74,318 77,967
Investments 6,713 6,929
Other assets 5,796 5,219
--------- ----------
Total assets $1,605,538 $ 1,636,096
========= ==========
Liabilities, redeemable
noncontrolling interests, and
shareholders' equity
Current liabilities:
Accounts payable $ 226,416 $ 232,984
Accrued expenses and other current
liabilities 162,801 165,047
Deferred revenue 23,113 23,804
Current maturities of long-term debt 3,950 3,950
--------- ----------
Total current liabilities 416,280 425,785
Long-term debt -- net 385,788 384,960
Long-term lease liabilities 18,217 18,731
TRA liability 149,967 155,720
Other liabilities 28,945 36,865
--------- ----------
Total liabilities 999,197 1,022,061
--------- ----------
Commitments and contingencies
Redeemable noncontrolling interests 225,627 352,922
Shareholders' equity:
Class A common stock, $0.0001 par
value; 500,000,000 shares
authorized, 146,230,980 and
143,819,497 shares issued and
outstanding at March 31, 2025 and
December 31, 2024, respectively 14 14
Class B common stock, $0.0001 par
value; 250,000,000 shares
authorized, 76,225,000 shares
issued and outstanding at March 31,
2025 and December 31, 2024 8 8
Additional paid-in capital 1,399,423 1,267,710
Treasury stock, at cost, 13,812,263
and 11,433,749 shares at March 31,
2025 and December 31, 2024,
respectively (82,485) (75,568)
Accumulated deficit (936,113) (930,171)
Accumulated other comprehensive loss (133) (880)
--------- ----------
Total shareholders' equity 380,714 261,113
--------- ----------
Total liabilities, redeemable
noncontrolling interests, and
shareholders' equity $1,605,538 $ 1,636,096
========= ==========
VIVID SEATS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands) (Unaudited)
Three Months Ended March 31,
----------------------------------
2025 2024
---------------- ------------
Revenues $ 164,023 $ 190,852
Costs and expenses:
Cost of revenues (exclusive of
depreciation and amortization
shown separately below) 44,525 49,583
Marketing and selling 64,112 67,745
General and administrative 48,082 42,366
Depreciation and amortization 11,625 10,483
------------ -----------
Total costs and expenses 168,344 170,177
------------ -----------
Income (loss) from operations (4,321) 20,675
Interest expense -- net 5,665 5,082
Other expense (income) -- net (4,154) 2,582
Loss on extinguishment of debt 801 --
------------ -----------
Income (loss) before income taxes (6,633) 13,011
Income tax expense 3,155 2,269
------------ -----------
Net income (loss) (9,788) 10,742
Net income (loss) attributable to
redeemable noncontrolling
interests (3,846) 4,665
------------ -----------
Net income (loss) attributable to
Class A common stockholders $ (5,942) $ 6,077
============ ===========
VIVID SEATS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (Unaudited)
Three Months Ended March 31,
----------------------------------
2025 2024
---------------- ------------
Cash flows from operating
activities
Net income (loss) $ (9,788) $ 10,742
Adjustments to reconcile net
income (loss) to net cash
provided by (used in) operating
activities:
Depreciation and amortization 11,625 10,483
Amortization of leases 324 412
Amortization of deferred
financing costs 241 236
Equity-based compensation 10,751 8,488
Change in fair value of
warrants (3,115) (460)
Loss on asset disposals 47 102
Change in fair value of
derivative asset 350 37
Deferred income tax expense
(benefit) (1,464) 862
Non-cash interest expense
(income) -- net 173 (142)
Unrealized foreign currency
loss (gain) (2,041) 3,005
Loss on extinguishment of debt 801 --
Changes in operating assets and
liabilities:
Accounts receivable -- net (8,367) (11,448)
Inventory -- net (8,049) (8,491)
Prepaid expenses and other
current assets (1,964) (2,778)
Accounts payable (6,943) 50,493
Accrued expenses and other
current liabilities (6,748) (20,379)
Deferred revenue (691) (1,691)
Long-term lease liabilities (560) --
Other assets and liabilities --
net 130 (306)
------------ -----------
Net cash provided by (used
in) operating activities (25,288) 39,165
Cash flows from investing
activities
Purchases of property and
equipment (1,836) (92)
Purchases of personal seat
licenses (563) $(564.SI)$
Investments in developed
technology (4,526) (4,631)
Purchases of seat images (146) --
Payments of Acquired Domain Name
Obligation $(500.SI)$ --
------------ -----------
Net cash used in investing
activities (7,571) (5,287)
Cash flows from financing
activities
Payments of 2022 First Lien Loan -- (688)
Payments of Shoko Chukin Bank
Loan -- (281)
Repurchases of Class A common
stock (5,992) (3,105)
Payments of taxes related to net
settlement of equity incentive
awards (1,411) (462)
Payments of liabilities under TRA (4,005) (77)
Payments of 2024 First Lien Loan (76,986) --
Proceeds from 2025 First Lien
Loan 76,986 --
Payments of deferred financing
costs and other debt-related
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