Vivid Seats Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. For the three months ended September 30, 2024, total revenues were $186.6 million, a slight decrease of 1% from $188.1 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenues increased by 12% to $575.8 million, up from $514.6 million in 2023.

The company's income from operations for the third quarter was $10.8 million, down 46% from $20.1 million in the prior year. For the nine-month period, income from operations decreased to $39.3 million from $71.2 million in 2023. Net income for the third quarter was $9.2 million, a 43% decline from $16.0 million in 2023, while net income for the nine months fell sharply to $18.7 million from $84.6 million in the previous year.

The decline in profitability was attributed to increased general and administrative expenses, which rose by 24% to $46.3 million in the third quarter, primarily due to higher personnel costs linked to equity-based compensation and an expanded workforce following recent acquisitions. Additionally, depreciation and amortization expenses surged by 223% for the quarter, reflecting the impact of recent acquisitions, including VDC Holdco, LLC (Vegas.com) and WD Holdings Co., Ltd. (Wavedash).

In terms of revenue segmentation, the Marketplace segment generated $152.7 million in the third quarter, down 1% from the previous year, while Resale revenues increased slightly by 1% to $34.0 million. Notably, the company experienced a significant rise in cancellation charges, which negatively impacted revenues by $7.3 million in the third quarter, compared to a $1.0 million increase in the same period last year.

Vivid Seats also reported a substantial increase in long-term debt, which rose to $385.7 million as of September 30, 2024, compared to $264.6 million at the end of 2023. This increase was primarily due to the refinancing of existing loans and the acquisition of new businesses. The company maintained a strong liquidity position with $202.3 million in cash and cash equivalents.

The company has initiated a share repurchase program, authorizing up to $100 million of Class A common stock, with approximately $22.8 million already utilized for repurchases as of September 30, 2024. Despite the challenges faced, Vivid Seats continues to focus on strategic growth through acquisitions and operational improvements.