Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com -- Shares of Vivid Seats Inc. (NASDAQ: SEAT) plunged 26% following the release of its fourth quarter and full year 2024 financial results, which revealed a mix of modest revenue gains and significant declines in net income and marketplace gross order value (GOV).
The ticket marketplace company reported a slight year-over-year increase in fourth quarter revenues, up 1% to $199.8 million from $198.3 million in the same period of 2023. However, the full year figures were less encouraging, with a 1% decrease in Marketplace GOV from $3.92 billion in 2023 to $3.89 billion in 2024. More concerning was the sharp 87% drop in net income to $14.3 million for the full year, down from $113.1 million the previous year, and an 11% decrease in Marketplace GOV for the fourth quarter.
The company’s adjusted EBITDA for the fourth quarter fell 2% to $34.2 million, compared to $35.1 million in the previous year. The full year adjusted EBITDA showed a 7% increase, reaching $151.4 million, up from $142.0 million in 2023. However, this was overshadowed by the significant net loss of $4.4 million in the fourth quarter of 2024, a stark contrast to the net income of $28.5 million in the same quarter of the previous year.
Vivid Seats 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 highlighted the company’s maintained unit economics despite increased competition in performance marketing channels. For 2025, Vivid Seats has projected Marketplace GOV to be between $3.7 and $4.1 billion, with revenues ranging from $730.0 to $810.0 million and adjusted EBITDA between $110.0 to $150.0 million.
Analysts have weighed in on the company’s outlook, with Citi maintaining a buy rating but noting that the 2025 guidance fell short of expectations, which could lead to a negative market reaction. RBC Capital, with a sector perform rating, pointed out the potential need for increased spending on performance marketing to defend market position and anticipated back-half-weighted growth due to easier comparisons in the summer months.
Investors appear to be reacting to the mixed financial results and the cautious outlook for 2025, as reflected in the significant drop in the company’s stock price.
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