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Vivid Seats (SEAT)
NASDAQ:SEAT
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Vivid Seats
(NASDAQ:SEAT)
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Rating:54Neutral
Price Target:
$15.00
▼(-1.57% Downside)
Vivid Seats faces significant challenges with declining financial metrics and bearish technical indicators. While strategic initiatives and international growth offer some optimism, the negative P/E ratio and lack of dividend yield suggest valuation concerns. The overall outlook is cautious, with potential for improvement if strategic initiatives succeed.
Positive Factors
International Growth
Vivid Seats' international expansion is yielding positive results, with growth exceeding margin expectations. This diversification into European markets strengthens the company's revenue base and reduces reliance on North American markets, providing a buffer against regional downturns.
Cost Reduction Program
The cost reduction program aims to save $25 million annually, enhancing operating leverage. By cutting expenses, Vivid Seats can improve profitability and cash flow, positioning itself better for long-term growth despite current industry challenges.
SkyBox Enhancements
Enhancements to the SkyBox ERP system improve analytical capabilities, potentially boosting operational efficiency and decision-making. This technological advancement supports future growth by optimizing resource allocation and enhancing customer insights.
Negative Factors
Decline in Key Financial Metrics
Significant declines in key financial metrics, including GOV and revenues, indicate challenges in maintaining growth and profitability. These declines highlight operational difficulties and suggest potential issues in sustaining market position.
Challenges in Sports Category
Weak performance in the sports category, with double-digit declines, underscores vulnerability to event-specific factors. This segment's underperformance could impact overall revenue stability, necessitating strategic adjustments to mitigate risk.
Impact of All-In Pricing
The FTC's all-in pricing mandate has increased volatility and reduced conversion rates, affecting sales. This regulatory change poses a structural challenge, requiring adaptation to maintain customer engagement and revenue levels.
Vivid Seats (SEAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$169.45M
Dividend YieldN/A
Average Volume (3M)126.62K
Price to Earnings (P/E)25.3
Beta (1Y)1.05
Revenue Growth-10.52%
EPS Growth-420.74%
CountryUS
Employees768
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-25.52
Shares Outstanding6,471,010
10 Day Avg. Volume133,868
30 Day Avg. Volume126,622
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.55
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit1.11
Enterprise Value/Ebitda7.09
Forecast
1Y Price Target
$31.33Price Target Upside105.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
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. When a ticket is sold on its platform, the company takes a percentage of the transaction as a service fee, which is added on top of the ticket price. This fee structure applies to both buyers and sellers, ensuring revenue from both ends of the transaction. Additionally, Vivid Seats may earn through partnerships with event organizers and venues, offering promotional deals or exclusive ticketing rights. The company's success is further enhanced by its strong brand presence and its reputation for reliability and customer service in the competitive ticket marketplace industry.
Vivid Seats Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Negative
The earnings call highlights Vivid Seats' strategic initiatives, such as cost reduction programs and international expansion, which are positive steps towards future growth. However, these positives are overshadowed by significant declines in key financial metrics, ongoing competitive pressures, and market challenges, especially in the sports category and due to regulatory changes. The sentiment reflects a cautious approach towards overcoming current industry challenges.Q2-2025 Updates
Positive Updates
Cost Reduction Program
Vivid Seats announced a cost reduction program targeting $25 million in annualized operating expense savings by year-end 2025. Over $5 million in savings have already been realized.
International Growth
The international business is demonstrating strong growth, exceeding margin expectations, and has been net contribution positive in 2025.
SkyBox Enhancements
Vivid Seats rolled out incremental analytical capabilities within their ERP SkyBox, which were well received and are expected to drive future growth.
Positive July Performance
July showed a year-over-year increase in performance, indicating some recovery after a weak June.
Negative Updates
Decline in Key Financial Metrics
Marketplace GOV was down 31% year-over-year, revenues down 28%, and Adjusted EBITDA decreased to $14 million, significantly lower than the previous year.
Challenges in Sports Category
The sports category was particularly weak, down double digits in Q2, affected by underwhelming playoff match-ups and challenging comps.
Impact of All-In Pricing
The implementation of the FTC's all-in pricing mandate led to elevated monthly volatility and a decline in conversion rates.
Competitive Pressure
Performance marketing intensity continues unabated, pressuring results and contributing to a challenging competitive landscape.
Shutting Down Vivid Picks
Vivid Seats decided to shut down Vivid Picks, a business that was not meeting expectations, as part of its cost reduction efforts.
Company Guidance
In the Vivid Seats Second Quarter 2025 Earnings Conference Call, the management provided guidance emphasizing a $25 million cost reduction program aimed at improving operating leverage and positioning the company for long-term growth despite industry challenges. The company reported $685 million in Marketplace Gross Order Value (GOV), $144 million in revenues, and $14 million in Adjusted EBITDA. However, these figures represent a year-over-year decline of 31% in Marketplace GOV and 28% in revenues. The sports category saw a decline due to underwhelming playoff matchups, while the concert category showed mixed results. The company plans to realize savings through technology efficiencies and reductions in general and administrative (G&A) expenses and marketing, with over $5 million in annualized savings already achieved. Vivid Seats also highlighted its international expansion, noting strong growth in four European countries that exceeded margin expectations. Cash flow is expected to be positive in the third quarter, driven by seasonal improvements and anticipated recovery in the industry.Vivid Seats Financial Statement Overview
Summary
Vivid Seats has shown strong revenue growth in the past, but recent figures indicate challenges with declining revenue, negative net income, and cash flow issues. The balance sheet reflects moderate leverage concerns.Income Statement
Over the years, Vivid Seats has demonstrated strong revenue growth, particularly from 2020 to 2023. However, recent TTM data shows a slight decline in revenue and profitability, with negative net income indicating challenges in maintaining profitability. Gross profit margins remain healthy, though net profit margins have fluctuated, reflecting operational challenges.68
Positive
Balance Sheet
The balance sheet shows a moderate level of debt compared to equity, with a debt-to-equity ratio indicating potential leverage concerns. The return on equity is inconsistent due to fluctuating net income. The equity ratio is on the lower side, reflecting a higher reliance on liabilities.55
Neutral
Cash Flow
Vivid Seats has faced volatility in cash flows, with a recent decline in free cash flow and negative operating cash flow in the TTM period. While there was positive cash flow growth between 2022 and 2023, recent figures suggest cash management and profitability challenges.62
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 748.76M | 775.59M | 712.88M | 600.27M | 443.04M | 35.08M |
| Gross Profit | 541.46M | 573.73M | 530.70M | 459.77M | 352.42M | 10.39M |
| EBITDA | 84.92M | 91.83M | 102.44M | 91.95M | 41.68M | -668.46M |
| Net Income | -2.59M | 9.43M | 74.54M | 70.78M | -19.13M | -831.67M |
Balance Sheet | ||||||
| Total Assets | 1.61B | 1.64B | 1.55B | 1.15B | 1.41B | 1.16B |
| Cash, Cash Equivalents and Short-Term Investments | 199.47M | 243.48M | 125.48M | 251.54M | 489.53M | 285.34M |
| Total Debt | 407.95M | 407.64M | 284.78M | 282.56M | 460.13M | 877.32M |
| Total Liabilities | 999.20M | 1.02B | 963.34M | 671.27M | 983.46M | 1.43B |
| Stockholders Equity | 380.71M | 261.11M | 105.02M | -382.70M | -860.68M | -271.78M |
Cash Flow | ||||||
| Free Cash Flow | -26.62M | 49.70M | 134.54M | -1.03M | 210.28M | -41.50M |
| Operating Cash Flow | -10.53M | 53.92M | 147.32M | 14.38M | 219.93M | -33.89M |
| Investing Cash Flow | -29.03M | -26.74M | -225.64M | -15.41M | -9.35M | -7.61M |
| Financing Cash Flow | 79.12M | 86.08M | -43.43M | -236.48M | -6.11M | 245.54M |
Vivid Seats Technical Analysis
Neutral
15.24
Price Trends
20.77
Negative
28.38
Negative
50.67
Negative
Market Momentum
-1.14
Negative
44.41
Neutral
22.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEAT, the sentiment is Neutral. The current price of 15.24 is below the 20-day moving average (MA) of 16.29, below the 50-day MA of 20.77, and below the 200-day MA of 50.67, indicating a neutral trend. The MACD of -1.14 indicates Negative momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 22.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SEAT.
Vivid Seats Risk Analysis
Vivid Seats disclosed 41 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 863.53M | 19.05 | 27.34% | ― | 92.91% | ― | |
73 Outperform | 931.93M | 53.23 | 4.49% | ― | 12.60% | 64.81% | |
55 Neutral | 242.56M | -8.91 | -13.30% | ― | 8.29% | 87.33% | |
54 Neutral | $169.45M | 25.25 | -75.68% | ― | -10.52% | -420.74% | |
48 Neutral | 175.11M | -5.92 | -27.68% | ― | 11.66% | -4.69% | |
39 Underperform | 168.89M | -0.72 | ― | ― | ― | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.