Vivid Seats Inc. Q1 FY2025 earnings call

Key Points

• Stan Chia noted Q1 results included $820M marketplace GOV, $164M revenues, and $22M adjusted EBITDA, with challenging Y/Y comps due to competitive intensity and industry softening.
• Investments in product development: upcoming app enhancements for discoverability/personalization, and continued focus on Game Center for consumer engagement (e.g., Beyonce, Bad Bunny, March Madness).
• Seller side: ongoing investment in SkyBox for marketplace data.
• International: European launch ongoing, with focus on scaling platform globally.
• Partnerships: New partnership with United Airlines to start contributing in H2 2025.
• Corporate responsibility: Progress on sustainability goals outlined in 2023 strategy.

In the first quarter, Vivid Seats delivered $820 million of marketplace GOV, which was down 20% year over year. Revenues were $164 million, down 14% year over year, with owned property revenues down 14% and private label revenues declining 27%. Adjusted EBITDA was $22 million, down from $39 million in the prior year. The marketplace take rate was 16.3% in Q1 2025, up 70 basis points from Q1 2024, and is expected to be in the 15.5% to 16% range near term.

Vivid Seats is suspending full-year guidance due to continued competitive intensity, global economy variability, consumer softness, and atypical performance marketing changes. Anticipate persistent competitive intensity driving near-term pressure, and start lapping easier Y/Y volume comps in H2 2025 but uncertain on reversion to growth.

• Economic and political volatility impacting consumer sentiment and artist/rights holder market entry.
• Changes in performance marketing channels (e.g., Google algorithm changes) leading to inefficiencies and competitive pressure.
• Continued competitive intensity from peers affecting market share and volume.

Q: Ryan Sigdahl asked about the competitive environment and performance marketing, and if strategy changes.

A: Stan Chia discussed Google channel changes causing inefficiencies and competitive intensity continuing to pressure the channel. Larry Fey talked about focusing on long-term capabilities for profitable growth.

Q: Curtis Nagle inquired about macro uncertainty affecting artists/rights holders.

A: Stan Chia mentioned volatility and seasonal lows in market entry for artists/rights holders.

Q: Thomas Forte asked about cash conversion to EBITDA and capital allocation.

A: Larry Fey discussed cash generation pressure due to EBITDA declines and fixed cash obligations, and capital allocation considerations including M&A and share repurchases.

Q: Maria Ripps asked about market share dynamics and GOV growth.

A: Larry Fey talked about share impact from performance marketing and cautious outlook on GOV growth.

Q: Cameron Manson Perrone asked about international efforts and performance marketing evolution.

A: Stan Chia discussed international progress and marketing channel diversification.

Q: Andrew Marok asked about average order size and marketing messaging.

A: Larry Fey talked about average order size trends and marketing messaging impact.

Q: Dan Kurnos asked about regulation and secondary market pricing.

A: Stan Chia and Larry Fey discussed support for regulation and market dynamics.

Q: Ralph Schackart asked about Google marketing change impact.

A: Larry Fey discussed the magnitude and impact of Google algorithm changes