Vivid Seats Inc. · NASDAQ:SEAT
Vivid Seats — Q1 2023 Earnings Presentation
20 slides from Vivid Seats's earnings presentation, May 9, 2023
Slide 1: Q1 2023 Financial Results
Q1 2023 Financial Results May 9, 2023 (Nasdaq: SEAT)
Slide 2: Agenda
Agenda 01 Business Highlights & Updates Stan Chia, Chief Executive Officer 02 Financial Results Lawrence Fey, Chief Financial Officer 03 Q&A Stan Chia, Chief Executive Officer Lawrence Fey, Chief Financial Officer
Slide 3: Forward-looking statements and use of non-GAAP financial measures
Forward-looking statements and use of non-GAAP financial measures Safe Harbor • Certain statements made in this presentation are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other
Slide 4: Business Highlights & Updates
Business Highlights & Updates Stan Chia, Chief Executive Officer
Slide 5: Q1 2023 Highlights
Q1 2023 Highlights Marketplace GOV 1 Revenues Adjusted EBITDA2 $856M $161M $42M • Excellent start to 2023 with strong growth, profitability and cash flow reflecting superior execution and traction from investments • Robust demand continued amongst exciting event supply (plentiful top artist concert
Slide 6: Fan Engagement Accelerated by Our Investments
Fan Engagement Accelerated by Our Investments Order Mix from Repeat Buyers1 56% 51% 50% 47% 2018 2019 2021 2022 (1) Represents orders from repeat buyers versus total orders (from both repeat and new buyers) placed on Vivid Seats website or our mobile apps Vivid Seats • 6 (2) 2020 omitted due to dist
Slide 7: Financial Results
Financial Results Lawrence Fey, Chief Financial Officer
Slide 8: Marketplace GOV and Revenues
Marketplace GOV and Revenues (in thousands) Marketplace GOV1 Revenues $164,990 $855,528 $161,063 $156,818 $845,965 $147,694 $130,772 $814,817 $781,834 $742,138 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 (1) (1) MarketplaceGOV Marketplace GOVrepresents represents
Slide 9: Net Income/(Loss) and Adjusted EBITDA
Net Income/(Loss) and Adjusted EBITDA (in thousands) GAAP Net Income (Loss)1 Adjusted EBITDA2 $42,435 $45,000 40% $35,000 40% $30,272 35% $40,000 35% $30,000 $35,000 $33,700 $24,834 30% $24,060 30% $25,000 $30,329 26% $30,000 $28,284 25% 25% $20,000 $18,747 $25,000 21% 20% 20% $21,012 18% 20% $20,00
Slide 10: 2023 Financial Guidance
2023 Financial Guidance Key Financial Metrics 3/7/23 5/9/23 Change Marketplace GOV $3.0B to $3.3B $3.15B to $3.40B Revenues $580M to $610M $605M to $630M Adjusted EBITDA1 $110M to $115M $115M to $130M (1) Adjusted EBITDA is not a measure defined under GAAP. We believe adjusted EBITDA provides useful
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Sizable Cash Balance $303M • Generated $65M cash from operations in Q1 with 2023 cash Strategic conversion normalizing towards historical levels Flexibility • Cash balance exceeding debt balance1 by $31M Cash Generation in Low Debt Balance • Repurchased $8M of shares in Q
Slide 12: Closing Remarks
Closing Remarks Stan Chia, Chief Executive Officer
Slide 13: Key Takeaways
Key Takeaways Excellent Start to 2023 Exciting event supply and robust demand exceeded expectations in Q1. Delivering marketing efficiencies in the midst of a robust competitive environment Creating Deep Ecosystem Relationships Our investments foster long-term stickiness for both buyers and sellers.
Slide 14: Q+A
Q+A
Slide 15: Thank You
Thank You investors@vividseats.com
Slide 16: Capital Structure
Capital Structure 196M Shares Outstanding1 as of 3/31/23 CLASS A CLASS B • Publicly traded (SEAT) CLASS A • Privately held by PE investors • EPS calculation reflects ~40% 77.6M1 CLASS B • Convertible 1-for-1 into Class A economic interest & ~40% 118.2M shares outstanding • Consolidated financial sta
Slide 17: Supplementary Financial Data – Q1 2023
Supplementary Financial Data – Q1 2023 (in thousands) Marketplace Revenues by Event Category EPS Three Months Ended March 31, Three Months Ended March 31, 2023 2022 % Change Numerator—basic: 2023 2022 Revenues: Net income $30,272 $3,138 Concerts $74,879 $58,673 28% Less: Income attributable to redee
Slide 18: Supplementary Financial Data – Historical AOS
Supplementary Financial Data – Historical AOS1 Average Order Size ($) 485 427 405 3-4% CAGR 397 385 388 $376 368 355 338 329 331 322 299 303 304 285 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 (1) Average Ord
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations (in thousands except for percentages) 2022 2023 2022 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net income (loss) / Net income (loss) margin $3,138 $24,060 $18,747 $24,834 $30,272 2.4% 16.3% 12.0% 15.1% 18.8% Income tax expense (bene
Slide 20: Non-GAAP Reconciliations Notes
Non-GAAP Reconciliations Notes: (1) We have historically incurred sales tax expense in jurisdictions where we expected to remit sales tax payments but were not yet collecting from customers. During the second half of 2021, we began collecting sales tax from customers in the required jurisdictions. T