Financial Data and Key Metrics Changes - In Q3 2025, the company reported $618 million in marketplace Gross Order Value (GOV), down 29% year-over-year, and $136 million in revenues, down 27% year-over-year [12][14] - The adjusted EBITDA for Q3 was $5 million, significantly lower than the previous year due to reduced volume and lower take rates [13][14] - The marketplace take rate decreased to 17.0% from 17.5% in Q3 2024, with expectations of near-term take rates in the 16% range [13] Business Line Data and Key Metrics Changes - The private label business faced significant pressure, contributing to the overall decline in marketplace orders, which were also down 29% year-over-year [12] - Owned properties showed signs of stabilization with sequential GOV growth, while the Vivid Seats App experienced double-digit sequential growth and returned to year-over-year GOV growth [10][12] Market Data and Key Metrics Changes - The overall marketplace GOV was down 10% sequentially compared to Q2 2025, primarily due to private label headwinds [12] - The company ended Q3 with $391 million in debt and $145 million in cash, resulting in a net debt of $246 million [15] Company Strategy and Development Direction - The new CEO emphasized a strategy focused on enhancing the app's value proposition, including the launch of a Lowest Price Guarantee and a loyalty program [5][6] - The company plans to double its fixed cost reduction target from $25 million to $60 million, aiming for a more efficient operational structure [8][9] - Investments will be directed towards building a loyal customer base and improving the app's performance, which is expected to insulate the company from competitive pressures in performance marketing [6][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the intense competitive environment but expressed confidence in the company's path to recovery and growth through strategic investments [4][10] - The initial guidance for 2026 anticipates marketplace GOV in the range of $2.2 billion to $2.6 billion, assuming industry volumes remain flat year-over-year [14][15] Other Important Information - A leadership transition was announced, with Lawrence Fey becoming the new CEO and Ted Pickus serving as interim CFO [3][11] - The company is focusing on corporate simplification to yield substantial savings and improve operational efficiency [9] Q&A Session Summary Question: What gives confidence in issuing 2026 guidance early? - Management indicated that the guidance assumes a flat year-over-year industry outlook and is based on recent stabilization trends and cost reduction initiatives [18][20] Question: Can you elaborate on the leadership transition? - The transition was deemed necessary to prepare the business for an efficiency push, with the new CEO focusing on enhancing the app's value proposition [26][28] Question: Are competitors focusing more on profitability? - There has been a notable shift in competitive posture, with some competitors reducing marketing aggressiveness, which has positively impacted Vivid Seats' market share [32][34] Question: What assumptions are built into the 2026 outlook regarding the World Cup? - The company has not assumed a meaningful impact from the World Cup due to a lack of precedent data and aggressive monetization strategies from FIFA [52][53] Question: How is the company driving awareness of the app? - A brand marketing surge via ESPN is planned, focusing on targeted performance-based metrics rather than broad brand marketing [47][48] Question: What are the capital allocation priorities? - The company will prioritize reinvesting in the core business and maintaining capital for strategic initiatives, with a cautious approach to cash outflows [70][71] Question: What signals are seen in the international business? - The international business has reached contribution margin positivity, and the company plans to continue investing in competitive supply areas [73][75]

Q3 2025 Financial Results November 6, 2025 (Nasdaq: SEAT) Important Disclaimers Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "can," "continue," "could," "design," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "may," "plan," "project," "propose," "seek," "should," "target," "will," and "would," a ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported $820 million in Marketplace Gross Order Value (GOV), a decrease of 20% year-over-year [13] - Total revenues for Q1 were $164 million, down 14% year-over-year, with owned property revenues also declining by 14% and private label revenues down 27% [13] - Adjusted EBITDA for Q1 was $22 million, a significant drop from $39 million in the prior year, attributed to lower volume and higher marketing expenses as a percentage of revenue [14] Business Line Data and Key Metrics Changes - Marketplace orders decreased by 20% compared to Q1 2024, while the average order size remained flat year-over-year [13] - The marketplace take rate increased to 16.3%, up 70 basis points from 15.6% in Q1 2024, with expectations for near-term take rates to be in the range of 15.5% to 16% [14] Market Data and Key Metrics Changes - The company noted robust competitive intensity and softening industry trends amid consumer uncertainty, impacting how artists and rights holders approach the market [6] - The concert landscape has shown volatility, with year-over-year volume trends fluctuating significantly, while sports events have seen a decline due to tough comparisons from previous years [35] Company Strategy and Development Direction - The company is focused on cost discipline while making strategic investments in marketing and technology to enhance product development and customer experience [7] - Plans for international expansion are underway, with a focus on building out capabilities and scaling the platform in favorable markets [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the industry despite current economic pressures, emphasizing the importance of live experiences over goods [6] - The company has suspended guidance for the remainder of 2025 due to increased variability in the global economy and potential consumer softness [15] Other Important Information - The company repurchased $7 million worth of shares at an average price of $2.89 during the quarter [15] - The company is committed to its Corporate Responsibility and Governance Strategy, highlighting progress in sustainability goals [11] Q&A Session Summary Question: Can you elaborate on the performance marketing changes and competitive intensity? - Management noted changes in the Google channel affecting data reporting, leading to increased bidding and decreased efficiency across the industry [19][20] Question: Have you seen any changes in industry expectations? - Management indicated a softening in expectations due to broader economic conditions, despite some bounce-back in April [25] Question: Are artists delaying tours due to macro uncertainty? - Management acknowledged volatility in the industry, with a seasonal low in market activity observed [28] Question: What are your thoughts on cash conversion to EBITDA and capital allocation? - Management expects limited cash generation for the year due to declining EBITDA and working capital pressures [37] Question: How do you view market share dynamics in a flat to down industry? - Management indicated that GOV being down 20% could reflect share impact, primarily from performance marketing channels [42] Question: What is the impact of regulatory changes on the industry? - Management supports regulations aimed at transparency and believes their lean cost structure positions them favorably [62] Question: How is the company addressing marketing channel mix? - Management is focusing on diversifying away from competitively pressured channels and leveraging partnerships to drive growth [70]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported $820 million in Marketplace Gross Order Value (GOV), a decrease of 20% year-over-year [12] - Total revenues for Q1 were $164 million, down 14% year-over-year [12] - Adjusted EBITDA for Q1 was $22 million, down from $39 million in the prior year [13] - The marketplace take rate increased to 16.3%, up 70 basis points from 15.6% in Q1 2024 [12] Business Line Data and Key Metrics Changes - Owned property revenues decreased by 14%, while private label revenues declined by 27% [12] - Marketplace orders were down 20% compared to Q1 2024, with average order size remaining flat year-over-year [12] Market Data and Key Metrics Changes - The company noted robust competitive intensity and softening industry trends amidst consumer uncertainty [5] - There was a bounce back in April after a softening in February and March, but overall consumer sentiment remains volatile [26] Company Strategy and Development Direction - The company is focused on cost discipline while making strategic investments in marketing and technology [6] - Upcoming app enhancements will aim to improve customer experience and engagement [6] - The company is committed to expanding its Total Addressable Market (TAM) and international capabilities [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term resilience of the live events industry despite current pressures [5] - The company is suspending guidance for the remainder of 2025 due to increased variability in the global economy and potential consumer softness [14] - Management emphasized the importance of operational discipline and strategic investments for long-term success [10] Other Important Information - The company repurchased $7 million worth of shares at an average price of $2.89 during the quarter [14] - The partnership with United Airlines is expected to contribute positively in the second half of 2025 [9] Q&A Session Summary Question: Can you elaborate on the competitive environment and performance marketing changes? - Management noted changes in the Google channel affecting data reporting, leading to increased bidding and decreased efficiency across the industry [20][21] Question: Have you seen any changes in industry expectations? - Management indicated a conservative approach due to broader economic conditions, with expectations for a flat to down industry [24][26] Question: Are artists delaying tours due to macro uncertainty? - Management acknowledged volatility in the industry, with some seasonal lows in market activity [29] Question: What are your thoughts on cash conversion to EBITDA and capital allocation? - Management expects limited cash generation for the year due to declining EBITDA and working capital pressures [38] Question: How do you view market share dynamics? - Management indicated that GOV being down 20% could reflect share impact, particularly from performance marketing channels [42][43] Question: Can you provide insights on the marketing channel mix? - Management is focusing on diversifying marketing channels and leveraging partnerships to mitigate competitive pressures [71][74] Question: What is the impact of regulatory changes on the industry? - Management supports regulations aimed at price transparency and believes it will create a level playing field [65][66]