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Vivid Seats’ third quarter results have seen revenue and net income fall, while adjusted EBITA has increased by 2% on last year’s figures.
Additionally, Vivid Seats witnessed a 13% drop for its marketplace GOV (gross order value) from $998.9m (£771m/€927m) to $871.7m.
Revenue amounted to $186.6m compared to $188.1m in the third quarter of 2023, while net income dropped some 43% from $16m to $9.2m. More positively, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased 2% from $33.4m to $34.1m in the third quarter.
“Demand remained robust in the third quarter, although we experienced a headwind from concert supply, including from venue and artist mix, that we believe to be temporary,” commented Stan Chia, Vivid Seats chief executive.
“We expect industry growth to accelerate in 2025 as concerts return to their long-term trend. In the third quarter, we operated with discipline and delivered strong unit economics, while executing strongly and generating synergies with our Vegas(.com) acquisition through both cross-listed inventory and by converting Vegas(.com) customers to Vivid Seats customers.
“Lastly, we are excited to announce that Skybox Drive has exited its beta phase and we are already in the process of onboarding more than one hundred users, with hundreds more on our waitlist. As we ramp adoption, the innovative pricing functionality of Skybox Drive will further enforce the stickiness of Skybox and fortify our already leading position with professional sellers.”
While the total number of marketplace orders in the third quarter amounted to 2.97 million compared to 3.02 million the year prior, the number of sales for the nine months ending September 30 has increased on last year’s figure. Some 8.9 million orders have been placed compared to 7.9 million.
Resale orders were slightly higher and amounted to 116,000 compared to 110,000 in 2023.
Marketplace GOV was negatively impacted by cancellations to the tune of $35.4m and $74.9m, compared to $10.1m and $33.9m during the three and nine months ended September 30, 2023.
Total marketplace orders represents the volume of bookings made through Vivid Seats, and during the third quarter, there were 77,012 and 179,453 cancellations compared to 28,2023 and 78,034, respectively.
Lawrence Fey, Vivid Seats chief financial officer, added: “Despite a decline in Marketplace GOV in the third quarter, we held year-over-year revenues roughly flat and grew Adjusted EBITDA through disciplined execution while maintaining our strong unit economics.
“Given third quarter concert supply dynamics and expected marketing intensity in the fourth quarter, we are revising our 2024 guidance. As more concert tour announcements come out over the coming weeks, we will gain visibility into the 2025 concert calendar, where we currently anticipate a return to healthy growth.”
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