Vivid Seats Acquires Vegas.com in $240 Million Deal
Chicago-based marketplace Vivid Seats Inc. (SEAT) saw a 4% jump in its stock early Tuesday following its earnings announcement and the announcement of a deal to acquire Vegas.com, a marketplace for events in Las Vegas. The cash-and-stock deal is valued at approximately $240 million.
Impressive Third-Quarter Earnings
In its recently released third-quarter earnings report, Vivid Seats reported revenue that exceeded estimates and raised its guidance. Despite a slight decline in net income, generating $16 million compared to $18.7 million the previous year, the company experienced substantial growth in revenue. Revenue rose by 20% to $188.1 million, significantly surpassing the $154 million FactSet consensus.
Demand for Live Events Remains Strong
Stan Chia, CEO of Vivid Seats, expressed confidence in the company's performance by stating, "It has never been more clear that demand for live events is strong and that we are capturing that strength at Vivid Seats."
Revised Full-Year Guidance
As a result of its impressive third-quarter performance, Vivid Seats raised its full-year guidance. The company now expects revenue to range from $685 million to $705 million, compared to its previous forecast of $630 million to $650 million. Additionally, it anticipates that the marketplace's gross order value (GOV) will reach $3.75 billion to $3.90 billion, up from its initial guidance of $3.4 billion to $3.6 billion.
Stock Performance
Despite a 14% decrease in stock value year-to-date, Vivid Seats remains optimistic about its future prospects. In contrast, the S&P 500 has seen a 13.7% increase during the same period.
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