William Blair initiated research coverage of Vivid Seats Inc. (SEAT $13.25), an online ticket marketplace that operates in the United States.
Analyst Ralph Schackart estimated the company would generate revenue of $427 million in 2021, $548 million in 2022, and $623 million in 2023.
“Vivid Seats offers an expansive depth and breadth of listings on its platforms,” Schackart said, “covering the vast majority of live events. The company has amassed access to a broad set of inventory as a result of its long-standing seller relationships and its proprietary tools, which position Vivid Seats as the marketplace of choice for many ticket sellers. As a result of the company’s scale and proprietary technology stack, it can offer tickets at highly competitive prices, often lower than those offered by competing platforms. The company has also developed its own loyalty program, Vivid Seats Rewards—the only loyalty program available among Vivid Seats’ scaled competitors. For the company’s sellers, Vivid Seats offers full-service support, value-added technology, and open integration. Sellers are also provided with access to a variety of distribution channels and are offered attractive payment terms.”
Schackart continued, “While the pandemic has had a significant impact on the live events industry over the last 18 months, management believes there will be a strong recovery in the industry once customers feel safe attending large capacity events. Per an analysis completed in 2020 by Live Nation, 90% of U.S. fans indicated they were likely to attend a live event when it was deemed safe to do so. Management believes the company is well positioned to benefit disproportionately from this pent-up demand for experiences and expects it to result in a surge in spending on live experiences, both events and travel, once the pandemic impact wanes.”
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