Executive Summary

Q2 2024 delivered double‑digit top-line growth with Revenues of $198.3M (+20% YoY) and Adjusted EBITDA of $44.2M (+42% YoY), while Marketplace GOV grew 5% to ~$1.0B; management cited a higher take rate (17.0% vs 14.6% PY) and stronger repeat orders as key drivers .
Guidance was trimmed: 2024 Marketplace GOV to $4.0–$4.3B (from $4.2–$4.5B) and Revenues to $810–$830M (from $810–$840M), with Adjusted EBITDA unchanged at $160–$170M; CFO points to softer concert supply and competitive intensity, but expects acceleration in Q4 as 2025 stadium shows go on sale .
Strategic updates: term loan upsized by $125M with lower rate, lifting cash to $234M; share repurchases continued; SkyBox Drive nearing launch; international rollout targeted by year‑end; Vegas.com cross‑sell driving accretive customer acquisition .
Mix shift to repeat orders and disciplined unit economics underpinned margin resilience despite competitive pressure; management reiterates confidence in sustaining double‑digit growth and sees sports (women’s sports, soccer) as notable tailwinds .

What Went Well and What Went Wrong

What Went Well

Strong revenue and Adjusted EBITDA growth despite competitive intensity; “We delivered $198 million of revenues... and $44 million of adjusted EBITDA, representing 20% YoY revenue growth and 42% YoY adjusted EBITDA growth” (CEO) .
Take rate expansion supporting unit economics; “Our take rate was 17.0% in the second quarter compared to 14.6% in the second quarter of 2023” (CFO) .
Strategic flexibility and cash: upsized/refinanced term loan added $125M cash, enabling repurchases and M&A; “lowering our interest rate... adding $125 million of cash” (CFO) .

What Went Wrong

Net loss of $1.2M vs net income of $38.3M PY amid higher G&A and other expenses; cancellation impacts also increased YoY .
2024 guidance trimmed on GOV and Revenue due to softer concert supply (amphitheaters/arenas vs stadiums) and idiosyncratic tour cancellations (Aerosmith, etc.) .
Competitive intensity persisted; management acknowledged walking away from unprofitable volume, implying organic GOV down slightly YoY while organic revenue up low single digits .

Financial Results

Consolidated Metrics (GAAP unless noted)

Metric	Q4 2023	Q1 2024	Q2 2024
Revenues ($USD Millions)	$198.3	$190.9	$198.3
Net Income ($USD Millions)	$22.4	$10.7	$(1.2)
Adjusted EBITDA ($USD Millions, Non-GAAP)	$35.1	$38.9	$44.2
Adjusted EBITDA Margin (%)	N/A	20%	22%
Cash & Equivalents ($USD Millions)	$125.5	$154.0	$234.3
Long-term Debt, net ($USD Millions)	$264.6	$264.0	$386.5

Marketplace KPI and Unit Economics

KPI	Q4 2023	Q1 2024	Q2 2024
Marketplace GOV ($USD Millions)	$1,112.3	$1,028.5	$998.1
Total Marketplace Orders (000s)	2,974	2,876	3,097
Average Order Size ($)	$374	$358	$322
Take Rate (%)	15.0%	15.6%	17.0%
Cancellations Impact on GOV ($USD Millions)	$9.8 (Q4)	$18.3 (Q1)	$21.2 (Q2)

Segment Activity (orders)

Segment Orders (000s)	Q4 2023	Q1 2024	Q2 2024
Marketplace	2,974	2,876	3,097
Resale	107	99	101

Notes:

Adjusted EBITDA is non‑GAAP; reconciliation provided in filings .
EPS not disclosed in press materials provided; net income attributable to Class A holders shown but per‑share EPS not included in excerpts .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Marketplace GOV	FY 2024	$4.2–$4.5B	$4.0–$4.3B	Lowered
Revenues	FY 2024	$810–$840M	$810–$830M	Narrowed (lower top end)
Adjusted EBITDA (Non-GAAP)	FY 2024	$160–$170M	$160–$170M	Maintained

Rationale: management cited softer 2024 concert supply (more amphitheaters/arenas vs stadiums), idiosyncratic cancellations, and persistent competitive intensity; expects acceleration in Q4 with 2025 stadiums entering presale calendars .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’23 and Q1’24)	Current Period (Q2’24)	Trend
International Expansion	Accelerating investments; platform build to launch by year‑end; spend embedded with no revenue assumed	“On track to launch internationally by end of year”; contribution expected to be tailwind to GOV; take rates modestly higher abroad	Progressing; near‑term launch
Competitive Intensity & Performance Marketing	Elevated in H2’23; unit discipline; repurchases authorized	Persistent intensity; SEAT prioritizing unit economics; others chasing volume; leveraging loyalty/gamification over paid channels	Intensity persists; SEAT disciplined
Loyalty & Repeat Mix	Repeat ~59–60% in 2023; Game Center >260k users	Mix of repeat orders trending higher in 2024; Game Center >340k users; efficient acquisition/engagement	Strengthening
SkyBox Drive (Seller Tools)	Beta expanding; monetization upside not in guide	Last stage of beta; waitlist in hundreds; launch “in coming months”; not in guide	Launch approaching
Vegas.com Synergies	Early cross‑listing & acquisition funnel to Vivid Seats; TAM expansion	Cross‑sell campaigns underway with ~50% open rates; accretive acquisition to home markets	Execution improving
Sports Tailwinds (Women’s, Soccer)	Women’s sports milestone; strong sports demand	Double‑digit sports growth; soccer GOV growth approaching triple digits (Messi, Copa America)	Strengthening
Supply Normalization & Cancellations	Lapping “Tayonce”; AOS tailwinds in 2023; cancellations lower in 2023	2024 softer top‑of‑card; Aerosmith/J.Lo cancellations; higher cancellations impact with Vegas mix	Headwind near‑term
Regulatory/Transparency	Support for transparent pricing; potential benefits	Not a focus in Q2 call	Stable backdrop

Management Commentary

“We delivered $198 million of revenues and $44 million of adjusted EBITDA... evidence of our differentiated offering, dynamic model and our strong market position.” (CEO)
“Take rate was 17.0%... we acted dynamically in a competitive environment... 22% adjusted EBITDA margin.” (CFO)
“We upsized our existing term loan by $125 million while simultaneously lowering our interest rate... deploy across share repurchases and strategic M&A.” (CEO/CFO)
“Repeat orders... trending higher than the mix achieved in 2023... loyalty program and engagement initiatives.” (CEO)
“We expect YoY growth to accelerate in the fourth quarter once the industry has fully lapped 2023's summer concert slate, and once stadium shows go on sale for 2025.” (CEO)

Q&A Highlights

Guidance trim drivers: Softer concert supply (more amphitheaters/arenas), idiosyncratic cancellations; competitive intensity persists; sports strength offsets .
Unit economics vs volume: SEAT is prioritizing profitability and take rate vs chasing unprofitable volume; three drivers of take rate improvement (acquisitions, last year’s AOS mix, pricing discipline) .
International revenue outlook: Contribution expected to be a measurable GOV tailwind in 2025 with modestly higher take rates; aim for contribution margin neutrality during initial scale .
SkyBox Drive rollout: Tripled beta users; launch imminent; not included in guidance; monetization possible post‑launch .
Vegas.com cross‑sell: Emails reaching “tens of thousands” monthly; ~50% open rates; accretive customer acquisition back to home markets .

Estimates Context

Wall Street consensus estimates from S&P Global were unavailable due to API limit at the time of retrieval; therefore, vs‑estimates comparisons are not included. Values would be sourced from S&P Global when accessible.
Management guided FY 2024 Revenues to $810–$830M and Adjusted EBITDA to $160–$170M, with GOV at $4.0–$4.3B .

Key Takeaways for Investors

Revenue and margin resilience amid competition reflect effective levers (take rate, repeat mix); watch for continued mix shift toward repeat orders and SkyBox Drive monetization as potential upside .
Guidance reset reflects near‑term concert supply headwinds and cancellations; management expects acceleration in Q4 tied to 2025 stadium tours entering presales .
Balance sheet strength (cash $234M; upsized term loan; net leverage ~1.0x at guidance midpoint) provides capacity for buybacks and selective M&A, supporting capital returns and optionality .
Sports (women’s, soccer) are structural tailwinds; soccer GOV growth approaching triple digits suggests multi‑year runway into major international tournaments (Copa America ’25, World Cup ’26) .
International launch by year‑end can add incremental GOV tailwind in 2025 with modestly higher take rates abroad; plan to be contribution‑neutral initially, limiting margin dilution .
Competitive intensity remains elevated; SEAT’s disciplined unit economics mitigate profit risk but may cap near‑term GOV growth; watch for potential moderation in performance marketing intensity across the sector .
Near‑term trading catalyst: Q4 acceleration narrative, SkyBox Drive launch, and any incremental buyback/M&A disclosures; medium‑term thesis anchored in loyalty‑driven repeat mix, seller‑tool differentiation, and international expansion .

Sources: Q2 2024 Form 8‑K and press release ; Q2 2024 earnings call transcript ; Q1 2024 8‑K and transcript ; Q4 2023 8‑K and transcript .

Vivid Seats Inc. (SEAT)·Q2 2024 Earnings Summary