Why Vivid Seats Shares Are Falling Today

Zinger Key Points
  • Vivid Seats beats Q4 revenue estimates with a 19% year-over-year growth, but net income falls.
  • Vivid Seats reduces its Adjusted EBITDA outlook; authorizes $100 million share repurchase program.

Vivid Seats Inc. SEAT shares are trading lower on Tuesday. The company’s fourth-quarter sales of $198.30 million beat the street view of $183.67 million. Revenues grew 20% year over year.

The quarterly marketplace GOV totals $1.112 billion, up 31% year over year. The fourth quarter net income of $22.4 million, down 10% from $24.8 million in the year-ago period.

Vivid Seats’ quarterly adjusted EBITDA was $35.1 million, up 4% from $33.7 million in 2022.

“We enter 2024 with a healthy balance sheet that we will strategically deploy as needed to support international expansion and M&A while also repurchasing shares through our newly authorized $100 million share repurchase program,” said Lawrence Fey, Vivid Seats CFO. 

“We continue to convert our topline growth into cash flow that affords us the ability to strategically invest to support double-digit growth for years to come,” Fey added. 

Vivid Seats announced the appointment of Stefano Langenbacher as Chief Technology Officer. Langenbacher will replace Jon Wagner as Chief Technology Officer in March 2024 upon Wagner’s retirement. 

FY24 Outlook: The company still expects marketplace GOV of $4.2 billion to $4.5 billion and reduced its Adjusted EBITDA forecast from $170 million-$180 million to $160 million-$170 million.

Vivid Seats continues to expect FY24 revenues of $810 million to $840 million (consensus $822.75 million).

“We enter 2024 excited to serve a growing $63 billion global ticketing TAM and are accelerating our investments to launch in new markets that will further enhance our ability to deliver sustained double-digit growth and long-term value,” said Stan Chia, Vivid Seats CEO. 

Price Action: SEAT shares are trading lower by 10.6% to $5.34 on the last check Tuesday.

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