Vivid Seats Inc (NASDAQ:SEATS) stock jumped 8.6%, to $6.79, as the ticket marketplace reported strong quarterly earnings and announced its $240 million acquisition of the vegas.com online portal.
Vegas.com is described as a ‘two-sided marketplace’ and a ‘destination for live event enthusiasts visiting Las Vegas’.
The deal delivers a Vegas-centered inventory of events, shows, attractions, and tours, and the deal helps expand Vivid’s marketplace which has just grown to ‘$1 billion’ of order value per quarter.
In the third quarter, the Vivid Seats marketplace reached $998.9 million of gross order value, marking a 28% year-on-year increase.
Revenue similarly rose by 20% to $188.1 million and was comfortably ahead of the Wall Street consensus forecast pitched at $154 million. Earnings (adjusted EBITDA) was up 18% to $28.3 million - net income was down 15% year-on-year to $16 million.
“It has never been more clear that demand for live events is strong and that we are capturing that strength at Vivid Seats,” chief executive Stan Chia said in a statement.
Chia added: “Vegas.com is a strategic asset that will enhance our scale and reach in the coveted entertainment capital of the US, increase our domestic TAM [total addressable market] by over $6 billion and offer long-term synergistic upside, while also being financially accretive.
“We are excited to finish the year strong and we remain focused on creating long-term shareholder value."