Vivid Seats has announced the acquisition of entertainment marketplace Vegas.com, alongside an improved revenue of $188.1m (£153m/€176m) in its quarterly results, up 20% from $156.8m in Q3 last year.
Despite the good news, Vivid Seats’ net income dropped to $16m from $18.7m in Q3 last year, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) has increased 18% from $28.3m to $33.4m in the third quarter of 2023. For the previous nine months, adjusted EBITDA amounted to $106.9m compared to $79.6m during the same period last year.
Marketplace GOV (gross order value) for the three months ending September 30 amounted to $998.9m compared to $781.8m in Q3 the year prior. For the nine months ending in September, Marketplace GOV amounted to $2.8bn, compared to $2.3bn during the same period in 2022.
Total marketplace orders amounted to three million in the third quarter of 2023, compared to 2.6 million in 2022, while the nine-month figure totalled 7.9 million – up from seven million during the first nine months in 2022. Total resale orders reached 110,000 during the third quarter, up from 90,000. In the nine months leading up to the end of September 2023, total resale orders equated to 273,000, compared to 225,000 the year prior.
“We delivered our highest quarterly marketplace GOV to date, reflecting strong Vivid Seats execution against a robust market backdrop with broad-based demand strength across performers and teams,” said Lawrence Fey, Vivid Seats’ chief financial officer.
“Our third quarter GOV growth accelerated to 28% after we delivered 16% growth in the first half of 2023. Continuing this momentum, at the midpoint of our initial 2024 guidance we anticipate mid-teens marketplace GOV and revenue growth and 26% adjusted EBITDA growth in 2024, reflecting solid organic growth enhanced by our strategic acquisitions. We expect to continue generating strong cash flow that affords us the strategic flexibility to pursue compelling growth opportunities as they arise.”
Vivid Seats’ quarterly results were accompanied by the announcement that the ticketing marketplace had acquired Vegas.com, in a cash and stock transaction valued at approximately $240m.
The Las Vegas marketplace provides tourists with the ability to book shows, attractions and tours in the city. Vegas.com also offers an end-to-end travel shopping experience, complete with flights and hotels.
“We are thrilled to announce the acquisition of this strategic asset that will enhance our scale and reach in the entertainment capital of the U.S. and beyond,” said Stan Chia, Vivid Seats’ chief executive.
“This transaction will increase our scale and reach in this key market, bring incremental unique inventory through strategic partnerships and offer long-term synergistic upside, while increasing our TAM [total available market] by over $6 billion. As we continue to expand our reach and capabilities as a leading global marketplace, we are pleased that our strong balance sheet and robust cash flow are enabling multiple strategic investments.”