Core Insights - Vivid Seats Inc. has appointed Lawrence Fey as the new Chief Executive Officer, succeeding Stan Chia, who will remain in an advisory role until December 1, 2025 [4][5] - The company has provided its financial results for Q3 2025, reporting a significant decline in key metrics, including a 29% drop in Marketplace Gross Order Value (GOV) and a 27% decrease in revenues compared to Q3 2024 [7][8] - Vivid Seats aims to enhance operational efficiency and has doubled its annualized cost savings target to $60 million, which will support reinvestment in its value proposition [5][9] Leadership Transition - Lawrence Fey, previously the Chief Financial Officer, is expected to leverage his extensive experience with the company to navigate the evolving industry landscape [5] - Stan Chia's leadership over the past seven years is acknowledged, particularly for guiding the company through the COVID-19 pandemic and launching the Vivid Seats Rewards program [5][4] Financial Performance - For Q3 2025, Vivid Seats reported a Marketplace GOV of $618.1 million, down from $871.7 million in Q3 2024, and revenues of $136.4 million, down from $186.6 million [7][8] - The company experienced a net loss of $19.7 million in Q3 2025, a decline from a net income of $9.2 million in the same quarter of the previous year [7][8] - Adjusted EBITDA for Q3 2025 was $4.9 million, down from $34.1 million in Q3 2024, indicating a significant decrease in operational profitability [7][8] Strategic Outlook - Vivid Seats anticipates Marketplace GOV for 2026 to be in the range of $2.2 billion to $2.6 billion, with Adjusted EBITDA projected between $30 million and $40 million [11][9] - The company is focused on maximizing operational efficiency through a simplified corporate structure and strategic cost reductions [5][11] Corporate Simplification - A corporate simplification agreement was executed to streamline the organizational structure, eliminating the dual-class stock structure and terminating the Tax Receivable Agreement [12][13] - This simplification is expected to result in significant tax savings, reducing annual cash tax payments to approximately $3 million and providing up to $180 million in lifetime savings [13][12]

Core Insights - Vivid Seats has launched a new program called the Lowest Price Guarantee, reinforcing its commitment to providing value and trust for live event fans [3][6] - The program ensures that if a fan finds a lower price for the same ticket on a qualifying competitor's site, Vivid Seats will match it and provide 115% of the price difference in site credit [4][5] Company Overview - Vivid Seats Inc. is a leading online ticket marketplace that connects millions of buyers with thousands of ticket sellers across hundreds of thousands of events annually [3] - The company aims to be the most rewarding and value-driven app for live event fans, emphasizing transparency and customer satisfaction [6][8] Marketing Campaign - As the official ticketing partner of ESPN, Vivid Seats is launching a national integrated marketing campaign to promote the Lowest Price Guarantee program [6] - The campaign features user-generated content showcasing real fans and their experiences, and it will be prominently displayed on Disney streaming platforms and ESPN's sports front pages [6][7] Customer Engagement Features - The Lowest Price Guarantee is part of a broader suite of fan-first features, including Vivid Seats Rewards, which allows fans to earn on every purchase and unlock exclusive perks [7] - The company also offers Game Center, a free-to-play hub within the app where users can win credits and free tickets [7] Technology and Service Recognition - Vivid Seats utilizes proprietary software and technology to enhance the ticketing experience and has been recognized by Newsweek as one of America's Best Companies for Customer Service in ticketing [8]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenues of $200 million, a 1% increase year-over-year, and adjusted EBITDA of $33 million, a 5% decrease year-over-year [7][26] - For the full year 2024, revenues reached $776 million, a 9% increase year-over-year, while adjusted EBITDA was $151 million, a 7% increase year-over-year [7][26] - The company generated $994 million in marketplace Gross Order Value (GOV) in Q4 2024, an 11% decrease year-over-year, with a 12% reduction in total marketplace orders [24][26] - The average order size increased by 2% year-over-year in Q4 2024 [24] Business Line Data and Key Metrics Changes - The loyalty program, Vivid Seats Rewards, saw repeat orders increase to 61% of total orders, indicating a strong trend in customer retention [10] - The Game Center initiative led to a doubling of app downloads year-over-year and quarter-over-quarter in Q4 2024, contributing to increased engagement [12] Market Data and Key Metrics Changes - The live event industry is expected to return to growth in 2025, following a muted 2024, with consumers prioritizing spending on live experiences [8] - The company is expanding its Total Addressable Market (TAM) through acquisitions and international expansion, with a focus on the UK and other European countries [15][36] Company Strategy and Development Direction - The company plans to increase investments in marketing and technology to drive long-term growth, despite competitive intensity in the market [22][30] - Strategic partnerships, such as with United Airlines, are aimed at enhancing customer engagement and expanding the user base [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth of the live events market, despite the competitive landscape in 2024 [6][21] - The company anticipates a return to top-line growth in the second half of 2025, aided by easier comparisons and new partnerships [21][29] Other Important Information - The company reduced the interest rate on its term loan, resulting in annualized savings of $3 million [26] - The guidance for 2025 includes marketplace GOV expectations of $3.7 billion to $4.1 billion and revenues of $730 million to $810 million [27] Q&A Session Summary Question: International expansion and EBITDA impact - Management confirmed the launch in the UK and expressed optimism about expanding into other European countries, with a focus on achieving scale before prioritizing profits [36][37] Question: Concert pipeline and North American activity - Management noted a mixed outlook for concert activity, with early 2025 showing solid growth but recent weeks indicating a neutral to negative trend [40][41] Question: Market share competition and loyalty program - Management emphasized the importance of repeat users and the effectiveness of the loyalty program in maintaining customer engagement [46][48] Question: Strategic M&A and buyback plans - Management indicated that share buybacks are a core part of their capital allocation strategy, but they remain cautious about M&A opportunities in the near term [50][104] Question: Marketing expenses and macroeconomic impacts - Management stated that marketing expenses are expected to align with volume, and they are monitoring macroeconomic conditions closely [72][78]