Vivid Seats, Inc. Q4 FY2024 earnings call

• Loyalty program: Vivid Seats Rewards has enrolled members making repeat orders 2-3 times more often than non-enrolled customers. In 2024, repeat orders reached 61%.
• Game Center: Paired contests with concert on sale announcements, leading to doubled app downloads year-over-year and quarter-over-quarter in the fourth quarter.
• Vegas.com: Cross-listing and cross-selling synergies are ramping, with Vegas.com customers converting to Vivid Seats customers at an encouraging rate.
• International expansion: European launch kicked off in early 2025, with activity ramping throughout the year expected to modestly contribute to revenues.
• Skybox Drive: Monetization is beginning as initial adopters move beyond trial periods, with potential for meaningful revenue contribution from the Skybox user market.
• Partnerships: New partnership with United Airlines allows MileagePlus members to earn miles, connecting millions of customers to Vivid Seats' ecosystem.

In the fourth quarter of 2024, Vivid Seats generated $200 million in revenues, which is a 1% year-over-year increase, and $33 million in adjusted EBITDA, a 5% year-over-year decrease. For the full year 2024, revenues reached $776 million, a 9% year-over-year growth, and adjusted EBITDA was $151 million, a 7% year-over-year increase. In terms of marketplace GOV, the fourth quarter saw $994 million, a 11% year-over-year decline, while full year 2024 marketplace GOV was $3.9 billion, roughly flat year-over-year. The take rate was 16.6% in both the fourth quarter and full year 2024, with increases of 160 basis points and 140 basis points respectively.

• 2025 marketplace GOV expected to be in the range of $3.7 billion to $4.1 billion. -- Revenues预计在$730 million到$810 million之间. -- Adjusted EBITDA预计在$110 million到$150 million之间.
• Expect growth in the back half of 2025 due to easier comps as competitive intensity persists, with flexibility for marketing, product, and tech investment built into the guidance.

• Competitive intensity in performance marketing channels putting pressure on marketing or take rates.
• Macroeconomic uncertainties impacting consumer demand for live events. -- Execution risks associated with international expansion and scaling new markets.

Q: Starting on international, which countries are going into first and comment on EBITDA additive in '25?

A: Stan Chia said they launched in Europe, starting with the UK, and others in Europe are bullish. Larry Fey noted current philosophy is to get to scale on volume with contribution margin neutrality initially.

Q: On willingness to maintain or compete for market share, how to make it sticky?

A: Stan Chia emphasized repeat users at 61% and focus on loyalty program, Game Center, etc., to drive engagement and frequency. Larry Fey mentioned buyback is a core part of capital allocation.

Q: Expand on key investment priorities for international markets and effect of STC new junk fee rule?

A: Stan Chia said they built platform infrastructure for Europe launch and focus on supply and buyer growth. Stan Chia stated STC rule is consumer-friendly and supportive.

Q: Guidance range color and Skybox Drive monetization sizing?

A: Larry Fey said wider range built for competitive intensity adaptability. He sized Skybox Drive opportunity as ~$10 million annual revenue if capturing entire market.

Q: Marketing expense on midpoint guidance and macro effect on live events demand?

A: Larry Fey said marketing moves with volume, and live events historically less affected by macro until later, with Vegas.com showing softness ahead of core marketplace.

Q: Return to growth in back half assumptions and revenue seasonality?

A: Larry Fey said assuming steady-state marketing intensity, second half comps easier. Seasonality expected more back half loaded in 2025 due to new partners.

Q: Marketplace mix by venue and sale exploration?

A: Larry Fey said Vegas acquisition shifted mix to more theater. Stan Chia said they always explore strategic opportunities but can't comment on unsubstantiated rumors.

Q: Free cash flow conversion in '25 and M&A thoughts?

A: Larry Fey said cash conversion linked to growth, expecting revert to historical levels if growth achieved. Cautious on M&A near term due to valuation considerations.