Vivid Seats Inc. · NASDAQ:SEAT
Vivid Seats — Investor Presentation (June 2023)
24 slides from Vivid Seats's investor presentation, June 2023
Slide 1: Investor Presentation June 2023
Investor Presentation June 2023 (Nasdaq: SEAT)
Slide 2: Disclaimer
Disclaimer 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 than statements of historical fact contained in this p
Slide 3: Vivid Seats is a data-driven online secondary ticket marketplace for live events
Vivid Seats is a data-driven online secondary ticket marketplace for live events including sports, concerts and theater Experience It Live Vivid Seats • 3
Slide 4: Scaled, Growing and Highly Profitable
Scaled, Growing and Highly Profitable 125M+ 18M+ 250K+ Cumulative Tickets Sold1 Customers1 Unique Events Sold (2022) $3.2B $600M $113M FY 2022 FY 2022 FY 2022 Marketplace GOV 2 Revenue Adjusted EBITDA 3 $856M $161M $42M Q1 2023 Q1 2023 Q1 2023 Marketplace GOV 2 Revenue Adjusted EBITDA 3 (1) Through
Slide 5: Investment Highlights
Investment Highlights Our Mission: To empower and enable fans to Experience It Live Two-Sided Large and Profitable Marketplace Growing TAM Growth Fueled by Two-Sided Large TAM with Proprietary Marketplace with Sustained Secular Customer Unique Technology Growth Acquisition and Platform & Data Engage
Slide 6: Marketplace Tech Platform Serving Holistic Ecosystem
Two-Sided Marketplace Large and Growing TAM Profitable Growth Marketplace Tech Platform Serving Holistic Ecosystem Skybox Engagement Engine Vivid Seats Marketplace Sellers Fans Search Marketing Available via app, Free-to-use ERP system Technology desktop, and web with direct integrations across all
Slide 7: Leading Seller Technology Through Skybox
Two-Sided Marketplace Large and Growing TAM Profitable Growth Leading Seller Technology Through Skybox The Go-To Solution for Professional Sellers 1 50%+ Cloud-based ERP solution adopted by large share of seller base Rich feature set across key seller activities Native integrations & listing toolset
Slide 8: Differentiated Buyer Experience
Two-Sided Marketplace Large and Growing TAM Profitable Growth Differentiated Buyer Experience Personalized Discovery Diverse Choices Compelling Value Reliable Offerings Easy Purchase Vivid Seats • 8
Slide 9: Flywheel Creates Network Effects
Two-Sided Marketplace Large and Growing TAM Profitable Growth Flywheel Creates Network Effects Marketplace Vivid Seats• • 9
Slide 10: Unique Engagement Engine
Two-Sided Marketplace Large and Growing TAM Profitable Growth Unique Engagement Engine Loyalty Program Gamified Engagement + Ticketing + Daily Fantasy Sports + Gamification Integrated Experience Collect ‘stamps’ on every purchase Launching soon 1 Get rewarded after receiving 10 stamps Redeem reward
Slide 11: Attracting and Retaining Buyers
Two-Sided Marketplace Large and Growing TAM Profitable Growth Attracting and Retaining Buyers Attract sports & entertainment Engage users across enthusiasts across targeted our ecosystem touchpoints Social Events Web Retain fans with industry-leading Connect and personalize their loyalty program rew
Slide 12: Key Player in Large and Growing Secondary Ticketing Market
Two-Sided Marketplace Large and Growing TAM Profitable Growth Key Player in Large and Growing Secondary Ticketing Market North America Secondary Ticketing TAM 1 Daily Fantasy 12.5% 2022 – 2027 TAM CAGR International $16B $3.2B $10B $14B Adjacent 2022 GOV 2023 TAM Marketplaces $13B North America $11B
Slide 13: Broad and Evergreen Portfolio of Events
Two-Sided Marketplace Large and Growing TAM Profitable Growth Broad and Evergreen Portfolio of Events Concerts Sports Theater (49% of 2022 Marketplace Revenues) (38% of 2022 Marketplace Revenues) (12% of 2022 Marketplace Revenues) 250,000+ Unique Events Sold1 125 million+ Cumulative Tickets Sold2 (1
Slide 14: Vivid Seats Financial Highlights
Two-Sided Marketplace Large and Growing TAM Profitable Growth Vivid Seats Financial Highlights Connecting millions of buyers with thousands of sellers • $3.2B of 2022 Marketplace GOV (up 33% YoY) Growth at Scale • $856M of Q1 2023 Marketplace GOV (up 15% YoY) • $161M of Q1 2023 Revenue (up 23% YoY)
Slide 15: Robust GOV and Revenue Growth
Robust GOV and Revenue Growth (in thousands) Marketplace GOV1 Revenue $600,274 $3,184,754 COVID-19 Impacted COVID-19 Impacted $468,925 $2,399,092 $443,038 $2,279,773 $855,528 $161,063 $742,138 $130,772 $347,259 $35,077 FY 2019 FY 2020 FY 2021 FY 2022 1Q22 1Q23 FY 2019 FY 2020 FY 2021 FY 2022 1Q22 1Q
Slide 16: Engagement Engine Investment Delivering Powerful Results
Engagement Engine Investment Delivering Powerful Results Order Mix from Repeat Buyers1,2 56% 51% 50% 47% FY2018 FY2019 FY2021 FY2022 (1) Represents orders from repeat buyers versus total orders (from both repeat and new buyers) placed on Vivid Seats website or o ur mobile apps Vivid Seats • 16 (2) 2
Slide 17: Significant Profitability and Cash Flow Generation
Significant Profitability and Cash Flow Generation (in thousands) GAAP Net Income (Loss)1 Adjusted EBITDA2 $70,779 COVID-19 Impacted COVID-19 Impacted $119,172 $109,869 $113,325 $30,272 $42,435 $3,138 $21,012 ($19,129) ($53,848) ($80,204) ($774,185) FY 2019 FY 2020 FY 2021 FY 2022 1Q22 1Q23 FY 2019
Slide 18: Relentless Focus on Profitable Growth
Relentless Focus on Profitable Growth • Grow user base • Drive accretive repeat rates • Add partnerships • Enhance event discovery • Increase frequency and nature of user interactions • Accelerate loyalty flywheel • Additional SkyBox capabilities • Free-to-Play games for buyers • International and a
Slide 19: Efficient Capital Structure Providing Strategic Flexibility
Efficient Capital Structure Providing Strategic Flexibility1 Sizable Cash Balance $303M • Generated $65M cash from operations in Q1 with 2023 cash conversion normalizing towards historical levels Strategic • Cash balance exceeding debt balance2 by Flexibility $31M Cash Generation in Low Debt Balance
Slide 20: Thank You
Thank You Vivid Seats •
Slide 21: Appendix
Appendix vividseats
Slide 22: Steady Growth in Orders and Average Order Size Post-Covid
Steady Growth in Orders and Average Order Size Post-Covid (in thousands) Total Marketplace Orders Average Order Size1 9,183 COVID-19 Impacted COVID-19 Impacted $368 $376 $361 7,185 $347 6,637 $317 $326 2,275 2,019 1,066 FY 2019 FY 2020 FY 2021 FY 2022 1Q22 1Q23 FY 2019 FY 2020 FY 2021 FY 2022 1Q22 1
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations (in thousands except for percentages) FY 2019 FY 2020 FY 2021 FY 2022 Q1 2022 Q1 2023 FY 2022 Q1 2023 Net income (loss) / Net income (loss) margin -$53,848 -$774,185 -$19,129 $70,779 $3,138 $30,272 11.8% 18.8% Income tax expense (benefit) - - $304 -$1,590 $76 $285 -0.3% 0.2%
Slide 24: Non-GAAP Reconciliations
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