Vivid Seats Inc. · NASDAQ:SEAT
Vivid Seats — Q4 2022 Earnings Presentation
23 slides from Vivid Seats's earnings presentation, Mar 7, 2023
Slide 1: Q4 2022 Financial Results
Q4 2022 Financial Results March 7, 2023 (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: 2022 Highlights
2022 Highlights Marketplace GOV 1 Revenues Adjusted EBITDA2 $3.2B $600M $113M • Captured strong live event demand; both Marketplace GOV and Revenues exceeded prior records from 2021 by more than 30% • Delivered Adjusted EBITDA within guidance range with strong execution despite challenging 2H compet
Slide 6: Q4 2022 Highlights
Q4 2022 Highlights Marketplace GOV 1 Revenues Adjusted EBITDA2 $846M $165M $34M • Wrapped 2022 with strong quarter tactically balancing volume and profitability in challenging competitive environment • Resilient demand continued, but growth slowed as tailwinds from postponed events subsided • Repurc
Slide 7: Our Seller Technology - Announcing Skybox Drive
Our Seller Technology - Announcing Skybox Drive Intelligent automation software that optimizes seller revenue – a unique new product line from SkyBox CORE VALUE PROPS 1 Simply customize & automate revenue optimization strategies 2 The ONLY system powered with data from Vivid Seats 3 Built as a turn-
Slide 8: Building Our Brand With Buyers
Building Our Brand With Buyers Attract sports & music enthusiasts Engage users across across targeted touchpoints our ecosystem Reward fan passion with the Connect and personalize their industry’s only loyalty program journey to the next event Vivid Seats • 8
Slide 9: Financial Updates
Financial Updates Lawrence Fey, Chief Financial Officer
Slide 10: Marketplace GOV and Revenues
Marketplace GOV and Revenues (in thousands) Marketplace GOV1 Revenues $163,888 $164,990 $876,467 $156,818 $845,965 $814,817 $147,694 $781,834 $139,538 $693,090 $742,138 $130,772 $713,062 $115,498 $116,473 $24,114 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2021 Q2 2021 Q3 2021
Slide 11: Net Income/(Loss) and Adjusted EBITDA
Net Income/(Loss) and Adjusted EBITDA (in thousands) GAAP Net Income (Loss)1 Adjusted EBITDA2 $45,000 50% $41,965 $30,000 $24,060 $24,834 $25,000 150% 45% $40,000 $18,747 $36,195 $33,700 $20,000 40% $35,000 100% $15,000 $30,329 31% 35% Net Income (Loss) margin % $30,000 30% $27,522 $28,284 $10,000 5
Slide 12: Capital Structure
Capital Structure 196M Shares Outstanding1 as of 12/31/22 CLASS A CLASS B • Publicly traded (SEAT) CLASS A • Privately held by PE investors • EPS calculation reflects ~40% 78.1M1 CLASS B • Convertible 1-for-1 into Class A economic interest & ~40% 118.2M shares outstanding • Consolidated financial st
Slide 13: 2023 Financial Guidance
2023 Financial Guidance Key Financial Metrics 3/7/23 Marketplace GOV $3.0B to $3.3B Revenues $580M to $610M Adjusted EBITDA1 $110M to $115M (1) Adjusted EBITDA is not a measure defined under GAAP. We believe adjusted EBITDA provides useful information to investors and others in understanding and eva
Slide 14: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Sizable Cash Balance $252M • Strong balance sheet coupled with future cash generation provides significant strategic flexibility in 2023 and beyond Strategic • Anticipate return toward normalized cash generation in 2023 as non- Flexibility recurring items from 2022 cease
Slide 15: Closing Remarks
Closing Remarks Stan Chia, Chief Executive Officer
Slide 16: Key Takeaways
Key Takeaways 2022 – Exceptional Year for Live Events & Vivid Seats We estimate the secondary ticketing market has grown well above the long-term trendline of 7-10% annual growth since reopening after the pandemic. 2022 was bolstered by passionate fans with resilient demand and tailwind from postpon
Slide 17: Q+A
Q+A
Slide 18: Thank You
Thank You investors@vividseats.com
Slide 19: Supplementary Financial Data – Q4 2022
Supplementary Financial Data – Q4 2022 (in thousands) Marketplace Revenues by Event Category EPS Three Months Ended December 31, Twelve Months Ended December 31, 2022 2021 2022 2021 % Change 2022 2021 % Change Numerator—basic: Revenues: Net income (loss) $70,779 $(6,293) Concerts $63,132 $58,949 7%
Slide 20: Supplementary Financial Data – Historical AOS
Supplementary Financial Data – Historical AOS1 Average Order Size ($) 485 427 405 397 385 388 368 355 338 329 331 322 299 303 304 285 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 (1) Average Order Size (“AOS”) is calc
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations (in thousands) 2021 2022 Full Year Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2021 2022 Net income (loss) -$20,251 $2,645 -$1,847 $324 $3,138 $24,060 $18,747 $24,834 -$19,129 $70,779 Income tax expense (benefit) - - - $304 $76 - $118 -$1,784 $304 -$1,590
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2021 2022 Full Year Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2021 2022 Net income (loss) margin -84.0% 2.3% -1.3% 0.2% 2.4% 16.3% 12.0% 15.1% -4.3% 11.8% Income tax expense (benefit) - - - 0.2% 0.1% - 0.1% -1.1% 0.1% -0.3% Interest expense - net 67.7%
Slide 23: 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