Vivid Seats Results Presentation Deck slide image

Vivid Seats Results Presentation Deck

Non-GAAP Reconciliations (in thousands except for percentages) Net income/ Net income margin Income tax expense (benefit) Interest expense - net Depreciation and amortization Sales tax liability (¹) Transaction costs (2) Equity-based compensation (3) Loss on extinguishment of debt (4) Litigation, settlements and related costs (5) Change in fair value of warrants (6) Change in fair value of contingent consideration (7) Loss on asset disposals (8) Adjusted EBITDA / Adjusted EBITDA margin Q1 2022 $3,138 $76 $3,942 $1,385 $922 $1,402 $3,597 $4,285 -$14 $2,279 $21,012 2022 Q2 2022 $24,060 $2,699 $1,726 $2,010 $2,345 $5,312 $1,009 -$8,832 Q3 2022 $18,747 $118 $2,901 $2,158 -$118 $538 $5,073 $89 -$65 -$1,220 $63 $30,329 $28,284 Q4 2022 $24,834 -$1,784 $3,316 $2,463 $555 $5,071 2023 $1,393 -$1,609 Q1 2023 Q2 2023 $30,272 $38,326 $285 -$24,485 $3,280 $2,772 $2,598 $2,704 $456 $5,530 $300 -$327 -$845 $34 $306 $7 $33,700 $42,435 $4,488 $7,380 -$66 $1,000 -$1,052 Q1 2022 2.4% 0.1% 3.0% 1.1% 0.7% 1.1% 2.8% 3.3% 0.0% 1.7% $10 $31,077 16.1% (4) Losses incurred resulted from the extinguishment of the June 2017 First Lien Loan in February 2022. (5) These amounts relate to external legal costs, settlement costs and insurance recoveries, which were unrelated to our core business operations. (6) This relates to the revaluation of warrants to purchase common units of Hoya Intermediate, LLC held by Hoya Topco, LLC following the Merger Transaction. (7) This relates to the revaluation of Vivid Picks cash earnouts. (8) This relates to asset disposals, which are not considered indicative of our core operating performance. Q2 2022 16.3% 2022 1.8% 1.2% 1.4% 1.6% 3.6% 0.7% -6.0% 20.5% Q3 2022 Q4 2022 12.0% 0.1% 1.8% 1.4% -0.1% 15.1% -1.1% 2.0% 1.5% 0.3% 3.2% 0.1% 0.0% -0.8% 0.0% 18.0% 0.3% 3.1% 0.8% -1.0% -0.5% 0.2% 20.4% Q1 2023 18.8% 0.2% 2.0% 1.6% 0.3% 3.4% 0.2% -0.2% 0.0% 2023 0.0% 26.3% Q2 2023 23.2% -14.8% 1.7% 1.6% 2.7% 4.5% 0.0% 0.6% -0.6% Notes: (1) We have historically incurred sales tax expense in jurisdictions where we expected to remit sales tax payments but were not yet collecting from customers. During 2H 2021, we began collecting sales tax from customers in the required jurisdictions. The sales tax liability presented herein represents the tax liability for sales tax prior to the date we began collecting sales tax from customers reduced by abatements received, inclusive of any penalties and interest assessed by the jurisdictions. The remaining historic sales tax liability payments were made during the year ended 12/31/2022. (2) Transaction costs consist of legal, accounting, tax and other professional fees; personnel-related costs, which consist of retention bonuses; and integration costs. Transaction costs recognized in 2023 were primarily related to expenses incurred in connection with a secondary offering by Hoya Topco, LLC of our Class A common stock, expenses incurred for strategic investments and legal expenses and retention bonuses related to our acquisition of Betcha Sports, Inc. ("Betcha," which was rebranded as "Vivid Picks"). Transaction costs recognized in 2022 were primarily related to the merger transaction with Horizon Acquisition Corporation (the "Merger Transaction"), our acquisition of Betcha and the refinancing of the June 2017 First Lien Loan with the February 2022 First Lien Loan. (3) We incur equity-based compensation expenses for profits interests issued prior to the Merger Transaction and equity granted pursuant to the 2021 Incentive Award Plan (the "2021 Plan"), which we do not consider to be indicative of our core operating performance. The 2021 Plan was approved and adopted in order to facilitate the grant of equity incentive awards to our employees, directors and consultants. The 2021 Plan became effective on 10/18/2021. 0.0% 18.8%
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