Vivid Seats Inc. · NASDAQ:SEAT
Vivid Seats — Q4 2023 Earnings Presentation
20 slides from Vivid Seats's earnings presentation, Mar 5, 2024
Slide 1: Q4 2023 Financial Results
Q4 2023 Financial Results March 5, 2024 (Nasdaq: SEAT)
Slide 2: Agenda
Agenda 01 Business Highlights & Updates Stan Chia, Chief Executive Officer 02 Financial Results & Outlook Lawrence Fey, Chief Financial Officer 03 Q&A Stan Chia, Chief Executive Officer Lawrence Fey, Chief Financial Officer
Slide 3: Important Disclaimers
Important Disclaimers Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements in this presentation relate to, without limitation:
Slide 4: Business Highlights & Updates
Business Highlights & Updates Stan Chia, Chief Executive Officer
Slide 5: Full Year 2023 Highlights
Full Year 2023 Highlights Marketplace GOV1 Revenues Adjusted EBITDA2 $3.9B $713M $142M • Robust +23% Marketplace GOV growth and +25% Adjusted EBITDA growth • Broad-based live event industry strength with tailwinds that we expect will drive strong growth for years to come • Executed against strategic
Slide 6: Q4 2023 Highlights
Q4 2023 Highlights Marketplace GOV1 Revenues Adjusted EBITDA2 $1.1B $198M $35M • Record +31% YOY Marketplace GOV growth aided by strategic acquisitions • Wavedash and Vegas.com integrations underway with exciting synergy opportunities • Repurchased 2 million shares in December and authorized new $10
Slide 7: Investments Delivering Powerful Results
Investments Delivering Powerful Results Order Mix from Repeat Buyers1,2 59% 56% 51% 50% 47% FY2018 FY2019 FY2021 FY2022 FY2023 (1) Represents orders from repeat buyers vs. total orders (from both repeat and new buyers) placed on Vivid Seats website and Vivid Seats/Vivid Picks mobile apps. (2) 2020 o
Slide 8: Financial Results & Outlook
Financial Results & Outlook Lawrence Fey, Chief Financial Officer
Slide 9: Marketplace GOV and Revenues
Marketplace GOV and Revenues (in thousands) Marketplace GOV1 Revenues $1,112,326 $198,303 $188,133 $998,933 $953,739 $164,990 $165,380 $161,063 $156,818 $845,965$855,528 $147,694 $814,817 $781,834 $742,138 $130,772 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2022 Q2 2022 Q3 20
Slide 10: Net Income and Adjusted EBITDA
Net Income and Adjusted EBITDA (in thousands) GAAP Net Income1 Adjusted EBITDA2 $42,435 $45,000 40% $45,000 40% $40,000 $38,326 35% $40,000 35% $35,103 $35,000 $35,000 $33,700 $33,367 $31,077 30% 30% $30,272 $30,329 26% $30,000 $30,000 $28,284 25% 25% $24,060 $24,834 $25,000 $22,429 $25,000 21% 20%
Slide 11: 2024 Financial Guidance
2024 Financial Guidance Key Financial 3/5/24 YOY Growth2 Metrics Marketplace GOV $4.2B to $4.5B +11% Revenues $810M to $840M +16% Adjusted EBITDA1 $160M to $170M +16% (1) Adjusted EBITDA is a non-GAAP financial measure. See “Important Disclaimers.” We calculate forward-looking Adjusted EBITDA based
Slide 12: Robust Cash Generation & Capital Deployment
Robust Cash Generation & Capital Deployment 2023 2024 $116M Cash Generated1 60-70% Adj. EBITDA to Cash Conversion2,3 $213M deployed for strategic acquisitions & Continued strategic M&A investments & share repurchases $20M deployed for 0.9x forward net share repurchases leverage4 (1) Reflects net dec
Slide 13: Closing Remarks
Closing Remarks Stan Chia, Chief Executive Officer
Slide 14: Key Takeaways
Key Takeaways Compelling Growth Opportunity We are confident in our ability to deliver sustained double-digit growth through strong secular growth in North America, enhanced by international expansion and strategic M&A Value Proposition Resonating We continue to see a higher share of repeat orders a
Slide 15: Q+A
Q+A
Slide 16: Thank You
Thank You investors@vividseats.com
Slide 17: Capital Structure
Capital Structure 210M Shares Outstanding1 as of 12/31/23 CLASS A CLASS B Class A Class B 133.9 76.2 • Publicly traded (SEAT) • Privately held by PE investors • EPS calculation reflects ~64% • Convertible 1-for-1 into Class A economic interest and ~64% shares outstanding • Consolidated financial sta
Slide 18: Supplementary Financial Data – Historical AOS
Supplementary Financial Data – Historical AOS1 Average Order Size ($) 405 397 385 388 376 374 368 363 3-4% historical CAGR 355 338 329 331 Vegas.com & 299 303 304 Wavedash 285 acquisitions dilute AOS starting Q4’23 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 20
Slide 19: Supplementary Financial Data – Q4 2023
Supplementary Financial Data – Q4 2023 (in thousands) Marketplace Revenues by Event Category Segment Contribution Margin Twelve Months Ended December 31, Twelve Months Ended December 31, 2023 2023 2022 % Change Revenues: Marketplace Resale Consolidated Concerts $308,507 $251,423 23% Revenues $597,38
Slide 20: 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 Q2 2023 Q3 2023 Q4 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Net income/ Net income margin $3,138 $24,060 $18,747 $24,834 $30,272 $38,326 $16,018 $22,