What happened
Shares of online ticket company Vivid Seats (SEAT 1.80%) jumped as much as 17.4% in early trading on Tuesday after it reported fourth-quarter 2022 financial results. At 11 a.m. ET, shares are still trading 16.3% higher for the day.
So what
Revenue was up just $1.1 million to $165 million but net income jumped from a loss of $3.3 million a year ago to a profit of $10.1 million last quarter. Results exceeded the $154.5 million in revenue and $0.12 per share in earnings that Wall Street analysts expected.
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For 2023, management expects revenue to be $580 million to $610 million, about flat with the $600.3 million generated in 2022 and below analyst estimates of $615.7 million in revenue. Adjusted EBITDA is expected to be $110 million to $115 million, which is in line with $113.3 million generated last year.
Now what
Results were clearly better than expected, but the company isn't growing and trades for a whopping 54 times 2022 earnings. That's not a great value for a company in a highly competitive market, and that's what will keep me out of the stock today.