Vivid Seats Inc. · NASDAQ:SEAT
Vivid Seats — Q3 2023 Earnings Presentation
22 slides from Vivid Seats's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Financial Results
Q3 2023 Financial Results November 7, 2023 (Nasdaq: SEAT)
Slide 2: Agenda
Agenda 01 Business Highlights & Updates Stan Chia, Chief Executive Officer 02 Vegas.com Acquisition Stan Chia, Chief Executive Officer 03 Financial Results Lawrence Fey, Chief Financial Officer 04 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: Q3 2023 Highlights
Q3 2023 Highlights Marketplace GOV 1 Revenues Adjusted EBITDA2 $999M $188M $33M • Record Marketplace GOV & outstanding 28% YOY growth driven by broad-based strength across performers and teams • Brand and loyalty initiatives yielding attractive returns with repeat rates trending higher and above exp
Slide 6: Vivid Seats Acquires Vegas.com
Vivid Seats Acquires Vegas.com Stan Chia, Chief Executive Officer
Slide 7: Vegas.com – Leading Provider in Entertainment Capital of U.S.
Vegas.com – Leading Provider in Entertainment Capital of U.S. $240M Transaction Value Funded with 63% cash and 37% equity1 Strategic asset in coveted market Enhanced Nationwide Brand Awareness • Two-sided marketplace with local market authority • Strategic partnerships provide comprehensive inventor
Slide 8: Strategic and Financial Enhancement Through M&A
Strategic and Financial Enhancement Through M&A Utilized our balance sheet and robust cash flow to acquire two strategic assets that enhance scale, increase TAM and expand capabilities in a financially accretive manner VEGAS.COM WAVEDASH STRATEGICALLY ACCRETIVE TAM ACCRETIVE FINANCIALLY ACCRETIVE LE
Slide 9: Financial Results
Financial Results Lawrence Fey, Chief Financial Officer
Slide 10: Marketplace GOV and Revenues
Marketplace GOV and Revenues (in thousands) Marketplace GOV1 Revenues $998,933 $188,133 $953,739 $164,990 $165,380 $161,063 $845,965 $855,528 $156,818 $814,817 $147,694 $781,834 $742,138 $130,772 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
Slide 11: 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% $35,000 $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 $25,000 21% 20% 23% $21,012 19%
Slide 12: 2023 Financial Guidance
2023 Financial Guidance Key Financial 3/7/23 5/9/23 Change 8/8/23 Change 11/7/23 Change Metrics $3.0B to $3.00B to $3.15B to $3.40B to $3.75B to Marketplace GOV $3.3B $3.30B $3.40B $3.60B $3.90B $580M to $605M to $630M to $685M to Revenues $610M $630M $650M $705M $110M to $115M to $125M to $136M to
Slide 13: Initial 2024 Financial Guidance
Initial 2024 Financial Guidance Reflects strategic acquisitions + continued organic growth Key Financial 11/7/23 YOY Growth2 Metrics Marketplace GOV $4.20B to $4.50B +13% Revenues $810M to $840M +19% Adjusted EBITDA1 $170M to $180M +26% (1) Adjusted EBITDA is a non-GAAP financial measure. See “Impor
Slide 14: Post Acquisition Balance Sheet and Cash Flow Profile
Post Acquisition Balance Sheet and Cash Flow Profile1 60-70% Adj. EBITDA to Cash Conversion2 Strategic Flexibility $117M $274M3 Sizable Cash <1.0x Low Debt Balance Balance Net Leverage4 (1) Reflects 9/30/23 balance sheet less $151.2M cash to acquire Vegas.com (63% cash/37% equity) based on approxima
Slide 15: Closing Remarks
Closing Remarks Stan Chia, Chief Executive Officer
Slide 16: Key Takeaways
Key Takeaways Strong and Pervasive Industry Growth Long-term tailwinds favoring live events are clear and we continue to execute strongly with accelerating growth in Q3. We are excited for a strong close to 2023 and to reach new heights in 2024. Investments Yielding Repeat Rate Improvement Buyer rep
Slide 17: Q+A
Q+A
Slide 18: Thank You
Thank You investors@vividseats.com
Slide 19: Capital Structure as of 9/30/23
Capital Structure as of 9/30/231 196M Shares Outstanding2 as of 9/30/23 CLASS A CLASS B • Publicly traded (SEAT) • Privately held by PE investors Class A Class B • EPS calculation reflects ~49% 96.5 99.8 • Convertible 1-for-1 into Class A economic interest and ~49% shares outstanding • Consolidated
Slide 20: Supplementary Financial Data – Q3 2023
Supplementary Financial Data – Q3 2023 (in thousands) Marketplace Revenues by Event Category EPS Three Months Ended September 30, Three Months Ended September 30, 2023 2022 % Change Revenues: Numerator—basic: 2023 2022 Concerts $87,142 $63,802 37% Net income $16,018 $18,747 Sports 52,169 52,812 -1%
Slide 21: Supplementary Financial Data – Historical AOS
Supplementary Financial Data – Historical AOS1 Average Order Size ($) 405 397 385 388 3-4% CAGR 376 368 363 355 338 329 331 299 303 304 285 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 (1) Average Order Size (“AOS”) is calcul
Slide 22: 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 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net income/ Net income margin $3,138 $24,060 $18,747 $24,834 $30,272 $38,326 $16,018 2.4% 16.3% 12.0% 15.