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Vivid Seats (SEAT)
NASDAQ:SEAT
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Vivid Seats
(NASDAQ:SEAT)
60Neutral
Positive Factors
Cash Position
The company ended the fourth quarter with an increased cash position, indicating a strong financial footing to support operations and growth.
Financial Performance
Fourth quarter results showed better-than-expected sales and adjusted EBITDA, outperforming both consensus and internal estimates.
Market Expansion
Vivid Seats has launched in its first European market, the UK, with plans to expand into additional European markets.
Negative Factors
Competitive Pressures
Reduced estimates for revenue and adjusted EBITDA in 2025 reflect challenges from competitive pressures and industry dynamics.
Guidance
The guidance for full-year 2025 sales and adjusted EBITDA was below expectations, which led to a significant drop in share price.
Profitability
The profitability outlook was below expectations and implies a few hundred bps of y/y margin compression, largely reflecting incremental investments by the company across pricing, marketing, and product capabilities to defend market share.
Vivid Seats (SEAT) vs. S&P 500 (SPY)
Market Cap
$587.07M
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)40.0
Beta (1Y)0.83
Revenue Growth8.80%
EPS Growth-91.33%
CountryUS
Employees768
SectorCommunication Services
Sector Strength84
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.07
Shares Outstanding132,697,220
10 Day Avg. Volume2,876,380
30 Day Avg. Volume1,526,971
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.91
Price to Cash Flow (P/CF)3.10
P/FCF Ratio3.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.69Price Target Upside70.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Vivid Seats Business Overview & Revenue Model
Company DescriptionVivid Seats Inc. operates as an online secondary marketplace for tickets in the United States and Canada. The company operates in two segments, Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers; processes ticket sales on its website and mobile applications through its distribution partners; and sells tickets for live sports, concerts, and theater shows, and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing, and fulfill orders across multiple ticket resale marketplaces. The Resale segment acquires tickets to resell on secondary ticket marketplaces; and provides internal research and development support for Skybox and to deliver seller software and tools. The company was founded in 2001 and is headquartered in Chicago, Illinois.
How the Company Makes MoneyVivid Seats generates revenue primarily through service fees charged on ticket sales conducted via its platform. These fees are collected from both buyers and sellers, with the percentage varying based on the event and ticket type. The company also benefits from partnerships with event organizers, promoters, and venues, which can provide exclusive ticket access or promotional opportunities. Additionally, Vivid Seats may earn revenue from advertising and marketing services offered to event organizers looking to boost ticket sales through targeted campaigns on the platform.
Vivid Seats Financial Statement Overview
Summary
Vivid Seats demonstrates strong revenue growth and a recovery in equity, highlighting resilience and a positive trajectory. However, the decline in profit margins and cash flow generation indicates potential challenges in cost management and liquidity. The balance sheet shows improved financial stability, but past negative equity and leverage remain areas to monitor. Overall, while the company shows promising growth, there are concerns regarding profitability and cash flow sustainability.Income Statement
Vivid Seats has shown strong revenue growth over the years, with a notable increase from $712.9 million in 2023 to $775.6 million in 2024, indicating a growth rate of 8.8%. The gross profit margin remains healthy at 73.98% in 2024, slightly lower than the previous year. However, the net profit margin has declined significantly from 10.45% in 2023 to just 1.21% in 2024, suggesting rising costs or other profitability challenges. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.72
Positive
Balance Sheet
The company has improved its equity position, with stockholders' equity rising to $261.1 million in 2024, a significant recovery from negative equity in previous years. The debt-to-equity ratio has improved due to reduced debt levels and increased equity, but it still indicates moderate leverage. The equity ratio has improved to 15.96%, showing a stronger asset base supported by equity. However, the company had a history of negative equity, which may still pose a risk.65
Positive
Cash Flow
Operating cash flow has decreased significantly from $147.3 million in 2023 to $53.9 million in 2024, which could impact liquidity if the trend continues. Free cash flow growth is negative compared to the previous year, dropping to $49.7 million in 2024 from $134.5 million in 2023. The company maintains a positive operating cash flow to net income ratio, indicating operational cash generation exceeding net income.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 775.59M | 712.88M | 600.27M | 443.04M | 35.08M | Gross Profit |
| 573.73M | 530.70M | 459.77M | 352.42M | 10.39M | EBIT |
| 42.23M | 81.34M | 78.11M | 76.57M | -142.18M | EBITDA |
| 91.83M | 102.44M | 91.95M | 41.68M | -668.46M | Net Income Common Stockholders |
| 9.43M | 74.54M | 70.78M | -19.13M | -831.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 243.48M | 125.48M | 251.54M | 489.53M | 285.34M | Total Assets |
| 1.64B | 1.55B | 1.15B | 1.41B | 1.16B | Total Debt |
| 22.68M | 284.78M | 282.56M | 460.13M | 877.32M | Net Debt |
| -220.80M | 159.30M | 31.02M | -29.40M | 591.98M | Total Liabilities |
| 1.02B | 963.34M | 671.27M | 983.46M | 1.43B | Stockholders Equity |
| 261.11M | 105.02M | -382.70M | -860.68M | -271.78M |
| Cash Flow | Free Cash Flow | |||
| 49.70M | 134.54M | -1.03M | 210.28M | -41.50M | Operating Cash Flow |
| 53.92M | 147.32M | 14.38M | 219.93M | -33.89M | Investing Cash Flow |
| -26.74M | -225.64M | -15.41M | -9.35M | -7.61M | Financing Cash Flow |
| 86.08M | -43.43M | -236.48M | -6.11M | 245.54M |
Vivid Seats Technical Analysis
Negative
2.75
Price Trends
4.05
Negative
3.92
Negative
4.23
Negative
Market Momentum
-0.39
Positive
31.56
Neutral
42.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEAT, the sentiment is Negative. The current price of 2.75 is below the 20-day moving average (MA) of 3.44, below the 50-day MA of 4.05, and below the 200-day MA of 4.23, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 31.56 is Neutral, neither overbought nor oversold. The STOCH value of 42.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEAT.
Vivid Seats Risk Analysis
Vivid Seats disclosed 39 risk factors in its most recent earnings report. Vivid Seats reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vivid Seats Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $30.65B | 16.69 | 34.29% | 1.62% | 2.79% | -23.30% | |
68 Neutral | $29.36B | 46.81 | 827.53% | ― | 1.79% | 99.46% | |
67 Neutral | $11.86B | ― | -5.37% | ― | 18.03% | 82.15% | |
63 Neutral | $1.63B | 12.99 | 1222.83% | ― | 7.44% | 71.46% | |
61 Neutral | $161.17M | ― | -19.83% | 2.50% | -8.55% | 75.13% | |
60 Neutral | $587.07M | 40.03 | 5.15% | ― | 8.80% | -91.33% | |
59 Neutral | $29.40B | 0.71 | -18.77% | 4.01% | 2.13% | -47.15% |
* Communication Services Sector Average
Performance Comparison
SEAT
Vivid Seats
2.86
-2.82
-49.65%
EBAY
eBay
66.30
16.15
32.20%
LYV
Live Nation Entertainment
127.02
22.64
21.69%
ROKU
Roku
81.73
17.08
26.42%
CURI
CuriosityStream
3.13
2.21
240.22%
MSGE
Madison Square Garden Entertainment Corp.
33.26
-4.95
-12.95%
Vivid Seats Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -27.06% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Vivid Seats' revenue growth, successful loyalty program, and strategic partnerships, indicating a focus on long-term growth. However, challenges such as a decline in marketplace GOV and competitive intensity pose risks to short-term performance.Highlights
Revenue Growth
For full year 2024, Vivid Seats delivered $776 million of revenues, which was 9% higher year-over-year.
Loyalty Program Success
The Vivid Seats Rewards program saw enrolled members making repeat orders 2 to 3 times as often as non-enrolled customers, with repeat orders reaching 61% of total orders in 2024.
Vegas.com Synergies
Cross-sold Vegas.com customers are converting to Vivid Seats' customers at an encouraging rate, generating substantial GOV while incurring minimal marketing expense.
Strategic Partnerships
New partnership with United Airlines allows MileagePlus members to earn miles for purchasing tickets through Vivid Seats, expected to go live later this year.
Cash Generation and Financial Flexibility
Vivid Seats increased its cash balance by $41 million in Q4 and ended the year with $243 million of unrestricted cash.
Lowlights
Decline in Marketplace GOV
In Q4 2024, marketplace GOV was $994 million, down 11% year-over-year, driven by a 12% reduction in total marketplace orders.
Competitive Intensity
Competitive intensity in performance marketing channels was high throughout 2024, affecting revenues and adjusted EBITDA.
Mixed Concert Demand
Concert demand started strong in 2025 but turned neutral to negative in the last six weeks prior to the call.
Company Guidance
During Vivid Seats' Fourth Quarter 2024 earnings call held on March 12, 2025, the company provided guidance for the upcoming year. They reported a 2024 fourth quarter revenue of $200 million, marking a 1% increase year-over-year, with a $33 million adjusted EBITDA, which was a 5% decrease year-over-year. For the full year 2024, Vivid Seats achieved $776 million in revenues, a 9% year-over-year increase, and $151 million in adjusted EBITDA, a 7% increase from the previous year. The company also saw a 16.6% take rate, up 160 basis points year-over-year in Q4. Looking ahead to 2025, expectations are set for a marketplace gross order value (GOV) ranging from $3.7 billion to $4.1 billion, revenue between $730 million and $810 million, and adjusted EBITDA between $110 million and $150 million, with an anticipated return to top-line growth in the second half of the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.