Vivid Seats Inc. (NASDAQ: SEAT)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001856031
Market Cap 42.17 Mn
P/B 0.15
P/E -0.27
P/S 0.07
ROIC (Qtr) -26.27
Div Yield % 0.00
Rev 1y % (Qtr) -26.92
Total Debt (Qtr) 405.24 Mn
Debt/Equity (Qtr) 1.49

About

Vivid Seats Inc., also known by its stock symbol SEAT, operates in the live events ticketing industry. The company's mission is to empower and enable fans to "Experience It Live" by providing a seamless and stress-free experience for ticket buyers and sellers alike. Vivid Seats' platform and marketplace enable ticket buyers to easily discover and purchase tickets, while also providing ticket sellers and partners with a trusted and easy-to-use platform to manage their operations. The company's business model is divided into two segments: Marketplace...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 145.71M provide 36.89x coverage of short-term debt 3.95M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 269.29M provide exceptional 14.86x coverage of deferred revenue 18.12M, showing strong service capability backing.
  • Strong free cash flow of (28.75M) provides 14.21x coverage of acquisition spending (2.02M), indicating disciplined M&A strategy.
  • Cash reserves of 145.71M provide solid 36.90x coverage of other non-current liabilities 3.95M, indicating strong liquidity.
  • Cash reserves of 145.71M exceed inventory value of 23.57M by 6.18x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of (5.61M) barely covers its investment activities of (25.17M), with a coverage ratio of 0.22, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 145.71M provide limited coverage of acquisition spending of (2.02M), which is -72.03x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (5.61M) provides insufficient coverage of deferred revenue obligations of 18.12M, which is -0.31x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (5.61M) shows concerning coverage of stock compensation expenses of 46.03M, with a -0.12 ratio indicating potential earnings quality issues.
  • Free cash flow of (28.75M) provides weak coverage of capital expenditures of 23.14M, with a -1.24 ratio suggesting additional external financing needs for growth initiatives.

Consolidated Entities Breakdown of Revenue (2024)

Consolidated Entities Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.27 1.10
EV to Cash from Ops. EV/CFO -52.56 -3.08
EV to Debt EV to Debt 0.73 28.98
EV to EBIT EV/EBIT -4.93 -26.54
EV to EBITDA EV/EBITDA -0.96 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF -10.25 -67.01
EV to Market Cap EV to Market Cap 6.99 0.90
EV to Revenue EV/Rev 0.46 61.25
Price to Book Value [P/B] P/B 0.15 1.56
Price to Earnings [P/E] P/E -0.27 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -2.50 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -23.23 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -30.10 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -257.76 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -441.02 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -237.64 32.66
EBT Growth (1y) % EBT 1y % (Qtr) -483.42 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) -481.80 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) -241.71 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -19.77 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.58 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.42 1.54
Current Ratio Curr Ratio (Qtr) 0.67 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 1.49 -0.39
Interest Cover Ratio Int Coverage (Qtr) -2.50 -202.56
Times Interest Earned Times Interest Earned (Qtr) -2.50 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1.50 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -9.29 -4,786.62
EBT Margin % EBT Margin % (Qtr) -13.00 -5,002.12
Gross Margin % Gross Margin % (Qtr) 71.50 58.65
Net Profit Margin % Net Margin % (Qtr) -24.10 -5,003.08