CHICAGO - Vivid Seats Inc. (NASDAQ: SEAT), a prominent ticket marketplace, has entered into a multiyear media collaboration with I Am Athlete (IAA), the athlete-led media platform created by former NFL star Brandon Marshall. The partnership, coinciding with the 2024 NFL Season's kickoff, will produce exclusive content, including a new segment "Keep it Live," which will be featured on the upcoming show "I Am Athlete Daily."
The strategic alliance aims to leverage the reach and influence of both entities to create engaging content for sports and entertainment fans. The partnership will include athlete and celebrity features, advertising and sponsorship rights, as well as live event experiences. Vivid Seats CEO Stan Chia expressed enthusiasm about working with Brandon Marshall to deliver content that will contribute to the growth of both Vivid Seats and I Am Athlete's platforms.
Marshall, the creator and host of IAA, emphasized the partnership's potential to continue disrupting the sports media landscape, highlighting the role of creators in evolving beyond podcasters and influencers to become platforms and networks.
The collaboration will also involve IAA hosts promoting Vivid Seats through native mentions and sponsored content. Additionally, exclusive ticket packages and VIP experiences will be available through Vivid Seats, offering fans interactive engagement opportunities like meet-and-greets and giveaways.
In line with the partnership, the popular "IAA On The Go" series is set to return, with Marshall and his team traveling across the United States to capture exclusive content at various sports and cultural events.
I Am Athlete, launched in April 2020, has grown into a significant digital media presence, with over 1 million YouTube subscribers and 90 million organic views. The platform is recognized for its candid discussions with sports and entertainment figures, offering unique insights into their lives and opinions.
This partnership reflects a growing trend of collaborations between digital media platforms and companies seeking to expand their engagement strategies and brand awareness. The information for this article is based on a press release statement.
In other recent news, Vivid Seats, a leading ticket marketplace, has experienced mixed results in its second quarter earnings report. Despite facing a challenging competitive landscape and a limited supply of summer concert events, the company managed to exceed revenue forecasts and demonstrated efficient financial management with its adjusted EBITDA surpassing expectations. Canaccord Genuity, RBC Capital, and DA Davidson have all adjusted their price targets for Vivid Seats, albeit maintaining their respective ratings.
The company's Gross Order Value (GOV) fell short of market expectations, prompting a reduction in its GOV outlook for 2024. However, Vivid Seats anticipates an acceleration in marketplace GOV growth in the fourth quarter of 2024. The company has also reported progress in strategic initiatives, such as higher repeat order rates, successful integration of recent acquisitions, and plans for international expansion.
In the first quarter of 2024, Vivid Seats reported over $1 billion in marketplace GOV, $191 million in revenues, and $39 million in adjusted EBITDA. The company also marked a significant achievement with a women's sports team topping sales on their platform for the first time. Despite facing challenges, analysts from DA Davidson and RBC Capital retain their confidence in Vivid Seats due to its strong margins and potential for growth.
InvestingPro Insights
Vivid Seats Inc. (NASDAQ: SEAT), while forging a promising partnership with I Am Athlete, is navigating the financial landscape with a set of mixed indicators. According to InvestingPro data, the company boasts a market capitalization of approximately $957.18 million and a Price/Earnings (P/E) ratio of 14.89, which adjusts to 15.41 when looking at the last twelve months as of Q2 2024. This moderate P/E ratio suggests that the company is reasonably valued in relation to its earnings.
On the growth front, Vivid Seats has experienced a robust revenue growth of 19.65% over the last twelve months leading up to Q2 2024. This is further supported by a healthy gross profit margin of 74.19%, indicating strong operational efficiency. The company's strategic move to partner with I Am Athlete could potentially drive this growth further by tapping into new audiences and creating additional revenue streams.
InvestingPro Tips reveal that analysts have recently revised their earnings expectations downwards for the upcoming period, which could be a point of consideration for investors. However, they also predict that Vivid Seats will be profitable this year, a positive signal for the company's financial health. Additionally, it's worth noting that Vivid Seats operates with a moderate level of debt and does not pay a dividend, which may appeal to investors looking for companies reinvesting profits back into growth.
For those interested in a deeper dive into Vivid Seats' financials and future prospects, InvestingPro offers additional tips, including the company's short-term liquidity challenges and its trading at a high Price/Book multiple of 6.14. In total, there are seven more InvestingPro Tips available for Vivid Seats, providing investors with a comprehensive analysis to inform their investment decisions.
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