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Vivid Seats (SEAT)
NASDAQ:SEAT
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Vivid Seats
(NASDAQ:SEAT)
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Rating:43Neutral
Price Target:
$11.00
▼(-5.25% Downside)
Vivid Seats' overall stock score is primarily impacted by its weak financial performance and valuation, reflecting significant profitability and leverage challenges. Technical analysis indicates bearish momentum, while the earnings call provides a mixed outlook with some positive strategic initiatives but overshadowed by declining financial metrics.
Positive Factors
Cost Reduction Program
The cost reduction program aims to improve operating leverage and enhance profitability, positioning Vivid Seats for long-term growth by reducing expenses and increasing efficiency.
International Expansion
Successful international expansion indicates Vivid Seats' ability to capture new markets, diversify revenue streams, and improve margins, contributing to sustainable growth.
SkyBox Enhancements
Enhancements in SkyBox ERP can drive future growth by improving data analytics, operational efficiency, and decision-making processes, strengthening Vivid Seats' competitive edge.
Negative Factors
Decline in Key Financial Metrics
Significant declines in key financial metrics indicate challenges in maintaining revenue and profitability, which could hinder long-term financial stability and growth prospects.
High Leverage
High leverage poses financial risk and limits flexibility, potentially impacting Vivid Seats' ability to invest in growth opportunities and manage economic downturns effectively.
Impact of All-In Pricing
Regulatory changes like the FTC's all-in pricing can disrupt business operations, affecting conversion rates and revenue stability, posing a challenge to Vivid Seats' market adaptability.
Vivid Seats (SEAT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$120.71M
Dividend YieldN/A
Average Volume (3M)130.42K
Price to Earnings (P/E)25.3
Beta (1Y)1.18
Revenue Growth-10.52%
EPS Growth-420.74%
CountryUS
Employees768
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-25.52
Shares Outstanding6,471,010
10 Day Avg. Volume121,050
30 Day Avg. Volume130,422
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)2.35
Price to Sales (P/S)0.79
P/FCF Ratio12.33
Enterprise Value/Market Cap4.99
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit1.20
Enterprise Value/Ebitda-5.45
Forecast
1Y Price Target
$28.43Price Target Upside144.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Vivid Seats Business Overview & Revenue Model
Company DescriptionVivid Seats Inc. operates as an online secondary marketplace for tickets in the United States and Canada. The company operates in two segments, Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers; processes ticket sales on its website and mobile applications through its distribution partners; and sells tickets for live sports, concerts, and theater shows, and other live events. This segment offers Skybox, a proprietary enterprise resource planning tool that helps ticket sellers manage ticket inventories, adjust pricing, and fulfill orders across multiple ticket resale marketplaces. The Resale segment acquires tickets to resell on secondary ticket marketplaces; and provides internal research and development support for Skybox and to deliver seller software and tools. The company was founded in 2001 and is headquartered in Chicago, Illinois.
How the Company Makes MoneyVivid Seats generates revenue primarily through service fees charged on ticket sales. When a ticket is sold on its platform, the company takes a percentage of the transaction as a service fee, which is added on top of the ticket price. This fee structure applies to both buyers and sellers, ensuring revenue from both ends of the transaction. Additionally, Vivid Seats may earn through partnerships with event organizers and venues, offering promotional deals or exclusive ticketing rights. The company's success is further enhanced by its strong brand presence and its reputation for reliability and customer service in the competitive ticket marketplace industry.
Vivid Seats Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Negative
The earnings call highlights Vivid Seats' strategic initiatives, such as cost reduction programs and international expansion, which are positive steps towards future growth. However, these positives are overshadowed by significant declines in key financial metrics, ongoing competitive pressures, and market challenges, especially in the sports category and due to regulatory changes. The sentiment reflects a cautious approach towards overcoming current industry challenges.Q2-2025 Updates
Positive Updates
Cost Reduction Program
Vivid Seats announced a cost reduction program targeting $25 million in annualized operating expense savings by year-end 2025. Over $5 million in savings have already been realized.
International Growth
The international business is demonstrating strong growth, exceeding margin expectations, and has been net contribution positive in 2025.
SkyBox Enhancements
Vivid Seats rolled out incremental analytical capabilities within their ERP SkyBox, which were well received and are expected to drive future growth.
Positive July Performance
July showed a year-over-year increase in performance, indicating some recovery after a weak June.
Negative Updates
Decline in Key Financial Metrics
Marketplace GOV was down 31% year-over-year, revenues down 28%, and Adjusted EBITDA decreased to $14 million, significantly lower than the previous year.
Challenges in Sports Category
The sports category was particularly weak, down double digits in Q2, affected by underwhelming playoff match-ups and challenging comps.
Impact of All-In Pricing
The implementation of the FTC's all-in pricing mandate led to elevated monthly volatility and a decline in conversion rates.
Competitive Pressure
Performance marketing intensity continues unabated, pressuring results and contributing to a challenging competitive landscape.
Shutting Down Vivid Picks
Vivid Seats decided to shut down Vivid Picks, a business that was not meeting expectations, as part of its cost reduction efforts.
Company Guidance
In the Vivid Seats Second Quarter 2025 Earnings Conference Call, the management provided guidance emphasizing a $25 million cost reduction program aimed at improving operating leverage and positioning the company for long-term growth despite industry challenges. The company reported $685 million in Marketplace Gross Order Value (GOV), $144 million in revenues, and $14 million in Adjusted EBITDA. However, these figures represent a year-over-year decline of 31% in Marketplace GOV and 28% in revenues. The sports category saw a decline due to underwhelming playoff matchups, while the concert category showed mixed results. The company plans to realize savings through technology efficiencies and reductions in general and administrative (G&A) expenses and marketing, with over $5 million in annualized savings already achieved. Vivid Seats also highlighted its international expansion, noting strong growth in four European countries that exceeded margin expectations. Cash flow is expected to be positive in the third quarter, driven by seasonal improvements and anticipated recovery in the industry.Vivid Seats Financial Statement Overview
Summary
Vivid Seats has shown strong historical growth, but recent figures indicate challenges in maintaining profitability and cash flow. The balance sheet suggests moderate leverage, with recent strains on profitability and cash flow highlighting areas for potential improvement.Income Statement
Over the years, Vivid Seats has demonstrated strong revenue growth, particularly from 2020 to 2023. However, recent TTM data shows a slight decline in revenue and profitability, with negative net income indicating challenges in maintaining profitability. Gross profit margins remain healthy, though net profit margins have fluctuated, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a moderate level of debt compared to equity, with a debt-to-equity ratio indicating potential leverage concerns. The return on equity is inconsistent due to fluctuating net income. The equity ratio is on the lower side, reflecting a higher reliance on liabilities.40
Negative
Cash Flow
Vivid Seats has faced volatility in cash flows, with a recent decline in free cash flow and negative operating cash flow in the TTM period. While there was positive cash flow growth between 2022 and 2023, recent figures suggest cash management and profitability challenges.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 694.01M | 775.59M | 712.88M | 600.27M | 443.04M | 35.08M |
| Gross Profit | 503.55M | 573.73M | 530.70M | 459.77M | 352.42M | 10.39M |
| EBITDA | -110.46M | 91.83M | 102.44M | 91.95M | 41.68M | -668.46M |
| Net Income | -141.21M | 9.43M | 74.54M | 70.78M | -19.13M | -831.67M |
Balance Sheet | ||||||
| Total Assets | 1.15B | 1.64B | 1.55B | 1.15B | 1.41B | 1.16B |
| Cash, Cash Equivalents and Short-Term Investments | 153.01M | 243.48M | 125.48M | 251.54M | 489.53M | 285.34M |
| Total Debt | 406.62M | 407.64M | 284.78M | 282.56M | 460.13M | 877.32M |
| Total Liabilities | 803.11M | 1.02B | 963.34M | 671.27M | 983.46M | 1.43B |
| Stockholders Equity | 217.34M | 261.11M | 105.02M | -382.70M | -860.68M | -271.78M |
Cash Flow | ||||||
| Free Cash Flow | -45.22M | 49.70M | 134.54M | -1.03M | 210.28M | -41.50M |
| Operating Cash Flow | -25.34M | 53.92M | 147.32M | 14.38M | 219.93M | -33.89M |
| Investing Cash Flow | -27.86M | -26.74M | -225.64M | -15.41M | -9.35M | -7.61M |
| Financing Cash Flow | -34.08M | 86.08M | -43.43M | -236.48M | -6.11M | 245.54M |
Vivid Seats Technical Analysis
Negative
11.61
Price Trends
16.30
Negative
25.47
Negative
47.33
Negative
Market Momentum
-1.55
Positive
26.94
Positive
7.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEAT, the sentiment is Negative. The current price of 11.61 is below the 20-day moving average (MA) of 15.01, below the 50-day MA of 16.30, and below the 200-day MA of 47.33, indicating a bearish trend. The MACD of -1.55 indicates Positive momentum. The RSI at 26.94 is Positive, neither overbought nor oversold. The STOCH value of 7.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEAT.
Vivid Seats Risk Analysis
Vivid Seats disclosed 41 risk factors in its most recent earnings report. Vivid Seats reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vivid Seats Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $735.73M | 16.73 | 34.34% | ― | 92.91% | ― | |
71 Outperform | $840.51M | 47.67 | 5.00% | ― | 12.60% | 64.81% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $220.76M | ― | -12.44% | ― | 8.29% | 87.33% | |
48 Neutral | $126.47M | ― | -23.53% | ― | 11.66% | -4.69% | |
43 Neutral | $120.71M | 25.25 | -75.68% | ― | -10.52% | -420.74% | |
39 Underperform | $150.29M | ― | -607.27% | ― | ― | ― |
* Communication Services Sector Average
SEAT
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-85.56%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.