Vivid Seats (NASDAQ:SEAT) saw its shares nosedive 22% intra-day today after releasing its fourth-quarter and full-year 2024 financials, revealing a mix of stagnant revenue growth and steep profitability declines.
The ticket marketplace reported a modest 1% year-over-year revenue increase for the fourth quarter, reaching $199.8 million. However, broader trends painted a less optimistic picture. Full-year marketplace gross order value (GOV) slipped 1% to $3.89 billion, down from $3.92 billion in 2023. More alarming was the drastic 87% plunge in net income, which fell to $14.3 million for the year, compared to $113.1 million in the prior period.
Fourth-quarter performance was particularly weak, with Marketplace GOV declining 11% and a stark shift from a $28.5 million net profit in Q4 2023 to a net loss of $4.4 million in Q4 2024. Adjusted EBITDA dipped 2% to $34.2 million in the quarter, though full-year adjusted EBITDA saw a 7% uptick, reaching $151.4 million.
Looking ahead, Vivid Seats expects Marketplace GOV in the range of $3.7 billion to $4.1 billion for 2025, with revenue projected between $730 million and $810 million. Adjusted EBITDA guidance stands between $110 million and $150 million. However, with market headwinds and profitability concerns weighing on investor sentiment, the road to recovery may be challenging.