Vivid Seats Shares Plummet Amid Weak Financial Results

Vivid Seats Inc. (NASDAQ: SEAT) shares plummeted 26% following the announcement of its fourth-quarter and full-year 2024 financial results, which showcased modest revenue growth but significant declines in marketplace gross order value (GOV). In the fourth quarter, the ticket marketplace company reported a slight annual revenue increase, rising 1% from $198.3 million to $199.8 million. However, the full-year figures were less promising, with Marketplace GOV decreasing by 1% from $3.92 billion in 2023 to $3.89 billion in 2024. More concerning was the 87% drop in full-year net profit, plummeting to $14.3 million from $113.1 million the previous year, alongside an 11% decrease in fourth-quarter Marketplace GOV.

CEO Stan Chia expressed optimism about the company's investments and international expansion plans, particularly the launch in Europe and a new partnership with United Airlines. CFO Lawrence Fey emphasized that the company has maintained its unit economics despite increased competition in performance marketing channels. Vivid Seats anticipates Marketplace GOV to range between $3.7 billion and $4.1 billion for 2025, with revenues expected between $730 million and $810 million, and adjusted EBITDA between $110 million and $150 million. Analysts noted that although Citi maintained a buy recommendation, the guidance for 2025 could lead to a negative market reaction due to falling short of expectations. RBC Capital suggested that increased spending on performance marketing may be necessary to maintain market position, predicting stronger growth in the second half of the year due to easier comparisons during summer months. Investors appear to have reacted to the mixed financial results and cautious outlook for 2025, as reflected in the significant decline in the company's stock price.