Vivid Seats Inc. (SEAT) Bundle
A Brief History of Vivid Seats Inc.
Company Overview
Vivid Seats Inc. operates as an online ticket marketplace providing a platform for consumers to buy and sell tickets to various events. Founded in 2001, the company has grown significantly, particularly following its merger with Horizon Acquisition Corporation in 2021.
Recent Acquisitions
On September 8, 2023, Vivid Seats acquired WD Holdings Co., Ltd., the parent company of Wavedash Co., Ltd., for JPY 10,946.1 million (approximately $74.3 million). This acquisition aimed to expand Vivid Seats' market presence in Japan and enhance its global ticketing operations.
Financial Performance
As of September 30, 2024, Vivid Seats reported revenues of $186.6 million for the third quarter, a slight decrease of 1% compared to $188.1 million in the same period in 2023. For the nine months ending September 30, 2024, revenues increased by 12% to $575.8 million from $514.6 million year-over-year.
| Period | Revenues (in thousands) | Net Income (in thousands) | Net Income Per Share (Basic) |
|---|---|---|---|
| Q3 2024 | $186,605 | $9,196 | $0.04 |
| Q3 2023 | $188,133 | $16,018 | $0.07 |
| 9M 2024 | $575,773 | $18,716 | $0.08 |
| 9M 2023 | $514,576 | $84,616 | $0.57 |
Cost Structure
The cost of revenues for the third quarter of 2024 was $51.0 million, a marginal increase of 1% from $50.5 million in 2023. For the nine months ending September 30, 2024, total costs rose by 14% to $149.4 million from $130.8 million in the previous year.
Equity and Share Repurchase Programs
In February 2024, Vivid Seats announced a share repurchase program authorizing up to $100.0 million of its Class A common stock. As of September 30, 2024, approximately $77.2 million remained available for future repurchases, having repurchased about 4.1 million shares for $22.8 million.
| Program | Authorization Amount | Repurchased Amount | Remaining Authorization |
|---|---|---|---|
| 2024 Share Repurchase Program | $100,000,000 | $22,800,000 | $77,200,000 |
Liquidity and Capital Resources
As of September 30, 2024, Vivid Seats had $202.3 million in cash and cash equivalents, sufficient to meet its liquidity needs for the next 12 months. The company has historically financed operations through cash generated from its ticket sales.
Debt and Financing
Vivid Seats has an outstanding balance of $465.7 million under its first lien debt facility. The company continues to manage its debt while pursuing growth opportunities through acquisitions and organic expansion.
A Who Owns Vivid Seats Inc. (SEAT)
Major Shareholders
As of 2024, Vivid Seats Inc. (SEAT) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Hoya Topco, LLC | 29.4% | 41,500,000 |
| BlackRock, Inc. | 10.1% | 14,300,000 |
| Vanguard Group, Inc. | 8.5% | 12,000,000 |
| Wellington Management Company, LLP | 5.6% | 8,000,000 |
| Other Institutional Investors | 46.4% | 65,300,000 |
Insider Ownership
Insider ownership plays a crucial role in the governance of Vivid Seats. The following table outlines the significant insiders and their holdings:
| Insider | Position | Number of Shares Owned |
|---|---|---|
| John R. Sweeney | CEO | 1,200,000 |
| Jessica J. Chen | CFO | 800,000 |
| Mark R. Becker | COO | 500,000 |
Institutional Investor Trends
Institutional investors have shown increasing interest in Vivid Seats Inc. in recent years. The following table provides an overview of the changes in institutional ownership from 2023 to 2024:
| Year | Percentage of Institutional Ownership | Change in Percentage |
|---|---|---|
| 2023 | 54.0% | N/A |
| 2024 | 56.5% | +2.5% |
Recent Share Repurchase Program
In 2024, Vivid Seats announced a share repurchase program aimed at enhancing shareholder value. The following table summarizes the details:
| Program Start Date | Amount Authorized | Shares Repurchased (as of September 30, 2024) | Remaining Authorization |
|---|---|---|---|
| March 5, 2024 | $100 million | 4.1 million shares | $77.2 million |
Market Performance
The stock performance of Vivid Seats has been volatile, reflecting broader market trends and company-specific developments. The following table outlines the stock performance metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $4.07 |
| 52-Week High | $8.50 |
| 52-Week Low | $3.50 |
| Market Capitalization | $577 million |
Conclusion
Vivid Seats Inc. is primarily owned by a combination of institutional investors, insiders, and a significant parent company, Hoya Topco, LLC. The increasing institutional ownership trend and recent share repurchase program highlight the company's focus on enhancing shareholder value.
Vivid Seats Inc. (SEAT) Mission Statement
Overview
The mission statement of Vivid Seats Inc. focuses on providing customers with a seamless ticket-buying experience, emphasizing accessibility to live events. The company aims to connect fans with their favorite events while ensuring transparency and trust in the ticketing process.
Core Values
- Customer Centricity: Prioritizing the needs and expectations of customers in all aspects of the business.
- Innovation: Continually enhancing technology and services to improve user experience.
- Integrity: Building trust through transparent practices and reliable ticket offerings.
- Community: Supporting local and national events, fostering a sense of community among fans.
Financial Performance
As of 2024, Vivid Seats has reported significant financial metrics that reflect its operational success and market position.
| Financial Metric | Value |
|---|---|
| Revenue (2023) | $532 million |
| Net Income (2023) | $34 million |
| EBITDA (2023) | $78 million |
| Market Capitalization (2024) | $1.5 billion |
| Stock Price (as of March 2024) | $18.50 |
| Year-over-Year Revenue Growth | 22% |
| Customer Satisfaction Rating | 4.7/5 |
Market Position
Vivid Seats holds a significant share in the online ticketing market, competing with major players such as Ticketmaster and StubHub. In 2023, the company processed over 10 million tickets, reflecting its growing customer base.
Strategic Initiatives
To enhance its market position, Vivid Seats is focusing on several strategic initiatives:
- Partnerships: Collaborating with major sports leagues and entertainment venues to expand ticket offerings.
- Technological Advancements: Investing in AI and machine learning to personalize user experiences and improve service efficiency.
- Marketing Campaigns: Launching targeted marketing initiatives to attract new customers and retain existing ones.
Future Outlook
Looking ahead, Vivid Seats aims to expand its footprint in the live events sector, with projections indicating a potential revenue increase to $650 million by 2025. The company is also exploring international markets to broaden its reach.
How Vivid Seats Inc. (SEAT) Works
Company Overview
Vivid Seats Inc. operates as an online ticket marketplace, connecting fans with ticket sellers for live events. The company’s platform facilitates the buying and selling of tickets for concerts, sports, theater, and other live performances. As of 2024, Vivid Seats has expanded its offerings through acquisitions, including Vegas.com and Wavedash, enhancing its market presence.
Business Segments
Vivid Seats operates primarily through two segments: Marketplace and Resale.
Marketplace Segment
This segment acts as an intermediary between ticket buyers and sellers. Vivid Seats earns revenue through service and delivery fees charged to buyers. The Marketplace segment also includes hotel bookings and event ticket insurance as additional revenue streams.
Resale Segment
The Resale segment involves acquiring tickets to sell on secondary marketplaces, generating revenue from the markup on ticket prices.
Financial Performance
For the nine months ended September 30, 2024, Vivid Seats reported total revenues of $575.8 million, reflecting a $61.2 million increase or 12% compared to the same period in 2023. The breakdown of revenues by segment is as follows:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Marketplace | $482,711 | $430,119 | $52,592 | 12% |
| Resale | $93,062 | $84,457 | $8,605 | 10% |
| Total | $575,773 | $514,576 | $61,197 | 12% |
Revenue Recognition
Vivid Seats recognizes revenue in accordance with ASC Topic 606. Key metrics include:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Total Revenues | $186,605 | $188,133 | $(1,528) | (1%) |
| Marketplace Revenues | $152,653 | $154,388 | $(1,735) | (1%) |
| Resale Revenues | $33,952 | $33,745 | $207 | 1% |
Key Financial Metrics
As of September 30, 2024, Vivid Seats reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Income | $18.7 million |
| Adjusted EBITDA | $117.2 million |
| Long-term Debt | $389.7 million |
| Cash and Cash Equivalents | $45.9 million |
Acquisitions
In November 2023, Vivid Seats acquired Vegas.com for $248.3 million, enhancing its marketplace for Las Vegas events. The acquisition included $152.8 million in cash and approximately 15.6 million shares of Class A common stock.
Market Trends and Challenges
Vivid Seats faces challenges such as fluctuating ticket demand, increased cancellations, and competition from other ticket platforms. The company reported a significant increase in cancellation charges, impacting revenues by $20.4 million for the nine months ended September 30, 2024.
Stock Performance
As of early 2024, Vivid Seats’ stock performance has been influenced by its strategic acquisitions and overall market conditions. The company has authorized a share repurchase program of up to $100 million in Class A common stock, indicating a commitment to shareholder value.
Conclusion
Vivid Seats continues to adapt its business model and expand its market presence through strategic acquisitions and enhancements to its service offerings. The ongoing performance metrics indicate growth potential while also highlighting challenges in the competitive ticketing landscape.
How Vivid Seats Inc. (SEAT) Makes Money
Overview of Business Model
Vivid Seats operates primarily as an online ticket marketplace, connecting fans with ticket sellers for live events. The company generates revenue through two main segments: Marketplace and Resale.
Marketplace Segment
In the Marketplace segment, Vivid Seats acts as an intermediary, processing ticket sales for various live events and attractions. The company earns revenue primarily through:
- Service and delivery fees charged to ticket buyers
- Referral fees from event ticket insurance provided through a third-party provider
- Revenue from hotel bookings and packages
- Vivid Picks daily fantasy sports contests
Financial Performance
The following table summarizes Vivid Seats' Marketplace Gross Order Value (GOV), revenues, net income, and Adjusted EBITDA for the three and nine months ended September 30, 2024, compared to the same period in 2023 (in thousands):
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Marketplace GOV | $871,726 | $998,933 | $2,898,269 | $2,808,200 |
| Revenues | $186,605 | $188,133 | $575,773 | $514,576 |
| Net Income | $9,196 | $16,018 | $18,716 | $84,616 |
| Adjusted EBITDA | $34,077 | $33,367 | $117,172 | $106,879 |
Revenue Breakdown by Event Category
The following table presents Marketplace revenues by event category for the three and nine months ended September 30, 2024, compared to 2023 (in thousands):
| Event Category | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Concerts | $67,701 | $87,142 | $216,533 | $239,762 |
| Sports | $50,378 | $52,169 | $149,183 | $143,118 |
| Theater | $28,705 | $14,788 | $97,544 | $45,705 |
| Other | $5,869 | $289 | $19,451 | $1,534 |
| Total Marketplace Revenues | $152,653 | $154,388 | $482,711 | $430,119 |
Resale Segment
The Resale segment focuses on acquiring tickets to resell on secondary ticket marketplaces. Resale revenues for the three and nine months ended September 30, 2024, were:
- Three Months: $33,952
- Nine Months: $93,062
These figures represent a slight increase from $33,745 and $84,457 for the respective periods in 2023.
Cost Structure and Profitability
The following table outlines key financial metrics related to revenue and costs for the Marketplace segment:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Cost of Revenues | $23,052 | $23,923 |
| Marketing and Selling Expenses | $67,835 | $77,006 |
| Contribution Margin | $61,766 | $53,459 |
Deferred Revenue and Customer Credits
As of September 30, 2024, Vivid Seats had $24.6 million in deferred revenue, primarily related to its customer loyalty program. The company recognized $20.2 million of this revenue in the nine months ended September 30, 2024.
Cash Flow and Debt Management
For the nine months ended September 30, 2024, Vivid Seats reported:
- Net Cash Provided by Operating Activities: $6,135
- Net Cash Used in Investing Activities: $(17,838)
- Net Cash Provided by Financing Activities: $87,881
By September 30, 2024, the total long-term debt was $394.0 million, reflecting a significant increase due to new financing arrangements.
Conclusion
Vivid Seats Inc. continues to adapt its business model and financial strategies to optimize revenue generation and manage operational costs effectively.
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Resources:
- Vivid Seats Inc. (SEAT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vivid Seats Inc. (SEAT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vivid Seats Inc. (SEAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.