Vivid Seats Inc. has recently released its 10-K report, revealing key financial and operational insights. The company operates as an online secondary marketplace for tickets in the United States and Canada, functioning in two segments: Marketplace and Resale. The Marketplace segment acts as an intermediary between event ticket buyers and sellers, while the Resale segment acquires tickets to resell on secondary ticket marketplaces.
In the year ended December 31, 2023, Vivid Seats reported a Marketplace Gross Order Value (Marketplace GOV) of $3,920,526, marking a significant increase from $3,184,754 in 2022 and $2,399,092 in 2021. Revenues also surged to $712,879 in 2023, up from $600,274 in 2022 and $443,038 in 2021. Additionally, the company reported a net income of $113,141 in 2023, compared to $70,779 in 2022 and a loss of $19,129 in 2021. Adjusted EBITDA reached $141,982 in 2023, up from $113,325 in 2022 and $109,869 in 2021.
The company's Marketplace segment primarily earns revenue from service and delivery fees charged to ticket buyers, referral fee revenue from event ticket insurance, and revenue from its Vivid Picks daily fantasy sports offering. Vivid Seats also incurred substantial marketing costs primarily related to online advertising. The company's Resale segment acquires tickets to resell on secondary ticketing marketplaces and provides internal research and development support for its proprietary ERP tool, Skybox.
Vivid Seats uses key business metrics to evaluate its performance, including Marketplace GOV, total Marketplace orders, total Resale orders, and Adjusted EBITDA. Marketplace GOV, which represents the total transactional amount of Marketplace segment orders, increased due to higher order volume and average order size, along with fewer event cancellations and acquisitions of Wavedash and Vegas.com in 2023.
The company's performance is influenced by factors such as the growth and retention of ticket buyers, sellers, and partners. Vivid Seats aims to differentiate itself by offering an extensive breadth and depth of ticket listings at a competitive value. Furthermore, the company's financial results are affected by seasonality, with increased activity typically observed in the fourth quarter and during holiday seasons.
Today the company's shares have moved 0.7% to a price of $5.52. Check out the company's full 10-K submission here.
