Vivid Seats Inc. · NASDAQ:SEAT
Vivid Seats — Q3 2022 Earnings Presentation
20 slides from Vivid Seats's earnings presentation, Nov 8, 2022
Slide 1: Experience It Live – Q3 2022 Financial Results
Experience It Live Q3 2022 Financial Results November 8, 2022 (Nasdaq: SEAT)
Slide 2: Agenda
Agenda 01 Business Highlights & Update 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: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights Marketplace GOV1 Revenues Adjusted EBITDA2 $782M $157M $28M • Continued to capture industry strength (quarterly records for both Marketplace GOV and Revenues for six consecutive quarters) • Adj. EBITDA Margin (18%) reflects sequentially higher marketing expense, but stea
Slide 6: Growing Our Brand
Growing Our Brand Driving targeted awareness & brand trust Category Reach & Targeted Recruitment of Cultural Cachet Conferred Brand Equity High-Value Audiences with New Demos Vivid Seats • 6
Slide 7: Building Customers For Life
Building Customers For Life With unified customer profiles powering personalized fan recommendations Bought 49ers LAX Browsed Warriors SFO Read Blog Added Favorites Jay Doe Last Region Home Region Implicit Favorites Explicit Favorites Engagement Abandoned Cart Rolling In Doe, Inc. Data jay@doe.com P
Slide 8: Financial Updates
Financial Updates Lawrence Fey, Chief Financial Officer
Slide 9: Marketplace GOV and Revenues
Marketplace GOV and Revenues (in thousands) Marketplace GOV11 Marketplace GOV RevenuesGOV1 Marketplace $163,888 $876,467 $156,818 $814,817 $147,694 $781,834 $139,538 $742,138 $130,772 $693,090 $713,062 $115,498 $24,114 $116,473 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q1 2021 Q2 2021
Slide 10: Net Income/(Loss) and Adjusted EBITDA
Net Income/(Loss) and Adjusted EBITDA (in thousands) GAAP Net Income (Loss) 1 Adjusted EBITDA 2 $41,965 $45,000 50% $30,000 $25,000 $24,060 150% 45% $40,000 $18,747 $36,195 $20,000 40% $35,000 $30,329 100% $15,000 Net Income (Loss) margin % 31% $28,284 35% $10,000 $30,000 30% $27,522 50% 30% $2,645
Slide 11: Net Debt and Cash Flow
Net Debt and Cash Flow (in thousands) CashMarketplace Flow from Operations GOV1 Q2’21 benefited from change in net operating Cash Term Loan assets as pandemic subsided as of Principal $152,235 outstanding 9/30/22 as of 9/30/22 $274M $274M Compared to Strong balance sheet, $30,761 $32,266 $288M as of
Slide 12: 2022 Financial Guidance
2022 Financial Guidance Key Financial Metrics 3/10/22 5/10/22 Q1 Update 8/9/22 Q2 Update 11/8/22 Q3 Update $2.70B to $2.80B to $3.05B to Marketplace GOV $2.95B to $3.15B $3.00B $3.05B $3.20B $510M to $520M to $540M to $580M to Revenues $550M $555M $570M $595M $110M to $110M to $110M to Adjusted EBIT
Slide 13: Closing Remarks
Closing Remarks Stan Chia, Chief Executive Officer
Slide 14: Key Takeaways
Key Takeaways 1 Capitalizing on industry strength Live event demand remained robust and displayed resiliency to recessionary factors. Vivid Seats capitalized on industry strength and continued to set records for Marketplace GOV and Revenues. 2 Targeted brand investments and higher repeat rates We ar
Slide 15: Q&A
QSA vividseats
Slide 16: Thank You
Thank You investors@vividseats.com
Slide 17: Supplementary Financial Data – Q3 2022
Supplementary Financial Data – Q3 2022 (in thousands) Marketplace Revenues by Event Category EPS1 Three Months Ended September 30, Three Months Ended 2022 2021 Change % Change September 30, 2022 Revenues: Numerator—basic: Concerts $ 63,802 $ 55,343 $ 8,459 15% Net income $ 18,747 Sports 52,812 53,48
Slide 18: Supplementary Financial Data – Historical AOS
Supplementary Financial Data – Historical AOS1 Average Order Size ($) 450 405 397 400 385 368 355 350 338 329 299 303 304 300 285 250 200 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 (1) Average Order Size (“AOS”) is calculated by dividing Marketplace GOV b
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations (in thousands except for percentages) 2021 2022 2021 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Net income (loss) / Net income (loss) margin -$20,251 $2,645 -$1,847 $324 $3,138 $24,060 $18,747 -84.0% 2
Slide 20: 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