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What were the key takeaways from Vivid Seats's earnings call?

What guidance did Vivid Seats's management provide for the next earnings period?

What does Vivid Seats do and what are its main business segments?

What factors drove the changes in Vivid Seats's revenue and profit?

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- **Leadership Transition**: Larry Fey becomes CEO, Ted Pickus as Interim CFO, with $60M cost reduction target.
- **App-Driven Growth**: Launch of lowest price guarantee and loyalty program, Q3 owned property GOV up sequentially.
- **2026 Outlook**: Marketplace GOV $2.2B-$2.6B, EBITDA $30M-$40M, assuming flat industry volume.
- **Competitive Shifts**: StubHub reduced marketing, but uncertain long-term impact; positive tailwind from TradeDesk shutdown.
- **Financial Health**: Q3 EBITDA $5M, 2026 guidance reflects cost savings and reinvestment in app strategy.
- **International Expansion**: Europe business profitable, focusing on local events with competitive supply.

**【Management Opening Remarks】**
- Announced leadership transition: Lawrence Fey becomes CEO, replacing Stan Chia, while Ted Pickus serves as Interim CFO.
- Issued Q3 2025 financial results and supplemental slides available on the Investor Relations page.
- Highlighted Larry Fey's 8-year tenure at Vivid Seats and his role in navigating the evolving industry.

**【CEO Commentary】**
- **Strategy Focus**: Emphasized app-driven growth with a unique value proposition, including a loyalty program and lowest price guarantee.
- **Cost Reduction**: Increased fixed cost reduction target from $25M to $60M, with $6M annual TRA savings and $180M lifetime tax savings.
- **Corporate Simplification**: Terminated TRA, collapsing dual-class shares, saving $1M/year in compliance costs.
- **Q3 Results**: Owned property GOV growth, app GOV returning to YoY growth, despite private label challenges.
- **2026 Outlook**: Marketplace GOV $2.2B-$2.6B, adjusted EBITDA $30M-$40M, assuming flat industry volume.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: 
  - Marketplace GOV: $618M (-29% YoY), owned property GOV up sequentially.
  - Revenue: $136M (-27% YoY), take rate 17.0% (down 50bps YoY).
  - Adjusted EBITDA: $5M (-88% YoY) due to lower volume and take rates.
- **2026 Guidance**: 
  - Marketplace GOV assumes flat industry volume, with reinvestment in app value proposition.
  - Adjusted EBITDA reflects cost savings and reinvestment, targeting $30M-$40M.
- **Liquidity**: $391M debt, $145M cash, net debt $246M.

**【Q&A Highlights】**
- **Competitive Environment**: Noted StubHub's reduced marketing intensity, but cautious on long-term trends.
- **FTC Lawsuit Impact**: Positive tailwind from TradeDesk shutdown, but uncertain secondary market contraction.
- **Direct Issuance**: Viewed as supply-driven, unlikely to cannibalize demand for secondary tickets.
- **App Growth**: Focused on personalized messaging and ESPN partnership to drive app adoption.
- **World Cup 2026**: Assumed minimal impact due to lack of historical data, but potential upside.
- **Cash Conversion**: Projected $40M annual cash obligations, with working capital dependent on GOV growth.
- **International Expansion**: Positive contribution margin in Europe, focusing on local events with competitive supply.


Vivid Seats Inc. (SEAT) Q3 2025 Earnings Call Transcript

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