Shares of Vivid Seats Inc. SEAT soared 17.1% in afternoon trading Tuesday, after the online ticket marketplace beat fourth-quarter revenue expectations, and was upbeat about ‘repeat rates’ of customers. The stock initially sank as much as 5.8% at an all-time intraday low of $6.29, then rocketed 31.1% off that low to an intraday high of $8.25 before paring some gains. The company said net income of rose to $24.8 million from about $324,000, to beat the FactSet consensus of $18.1 million, while revenue grew 6.2% to $165.0 million to top expectations of $154.5 million. Chief Executive Stan Chia said on the post-earnings conference call with analysts, according to AlphaSense, that Vivid was seeing the “highest repeat rates that we’ve ever seen amongst our customers,” which provides a boost to margins, and the repeat rates continue to trend higher. That outlook helped offset 2023 revenue guidance of $580 million to $610 million, which was below the FactSet consensus of $615.1 million at the time of the report. D.A. Davidson analyst Tom Forte reiterated his buy rating on the stock, saying Vivid is the best positioned of the companies he covers to “exploit the reopening trade, with more consumers returning to various live events in 2022.” The stock was still down 3.1% over the past three months while the S&P 500 SPX has gained 1.2%.
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