v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]  
SEGMENT REPORTING

5. Segment Reporting

Operating segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in making decisions regarding resource allocation and performance assessment. The CODM is our Chief Executive Officer (“CEO”). We have determined that we have two operating and reportable segments: Marketplace and Resale.

In our Marketplace segment, we primarily act as an intermediary between ticket buyers, sellers, and partners through which we earn revenue processing ticket sales for live events and attractions and from facilitating the booking of hotel rooms and packages. In our Resale segment, we primarily acquire tickets to resell on secondary ticket marketplaces, including our own.

The CODM evaluates the performance of the segments and allocates resources to them based on contribution margin (defined as revenues less cost of revenues and marketing and selling expenses). Cost of revenues consists largely of payment processing fees for our Marketplace segment and ticket costs for our Resale segment. Marketing and selling expenses, which exclusively relate to our Marketplace segment, almost exclusively consist of online and offline advertising costs. For all segments, the CODM uses contribution margin in the annual budgeting and forecasting process, as well as when reviewing forecast-to-actual variances while making decisions about the allocation of operating and capital resources to each segment.

We do not report assets, capital expenditures, general and administrative expenses, or depreciation and amortization expenses by segment because the CODM does not use this information to evaluate the performance of our operating segments.

The following table represents our segment information for the year ended December 31, 2024 (in thousands):

 

 

Year Ended December 31, 2024

 

 

 

Marketplace

 

 

Resale

 

 

Total

 

Revenues

 

$

647,891

 

 

$

127,695

 

 

$

775,586

 

Cost of revenues (exclusive of depreciation and amortization shown separately below)

 

 

99,460

 

 

 

102,394

 

 

 

201,854

 

Marketing and selling:

 

 

 

 

 

 

 

 

 

Online

 

 

261,188

 

 

 

—

 

 

 

261,188

 

Offline

 

 

23,958

 

 

 

—

 

 

 

23,958

 

Total marketing and selling

 

 

285,146

 

 

 

—

 

 

 

285,146

 

Contribution margin

 

 

263,285

 

 

 

25,301

 

 

 

288,586

 

General and administrative

 

 

 

 

 

 

 

 

202,123

 

Depreciation and amortization

 

 

 

 

 

 

 

 

44,238

 

Income from operations

 

 

 

 

 

 

 

 

42,225

 

Interest expense – net

 

 

 

 

 

 

 

 

23,172

 

Other income – net

 

 

 

 

 

 

 

 

(3,666

)

Income before income taxes

 

 

 

 

 

 

 

$

22,719

 

The following table represents our segment information for the year ended December 31, 2023 (in thousands):

 

 

Year Ended December 31, 2023

 

 

 

Marketplace

 

 

Resale

 

 

Total

 

Revenues

 

$

597,388

 

 

$

115,491

 

 

$

712,879

 

Cost of revenues (exclusive of depreciation and amortization shown separately below)

 

 

94,557

 

 

 

87,627

 

 

 

182,184

 

Marketing and selling:

 

 

 

 

 

 

 

 

 

Online

 

 

239,335

 

 

 

—

 

 

 

239,335

 

Offline

 

 

34,761

 

 

 

—

 

 

 

34,761

 

Total marketing and selling

 

 

274,096

 

 

 

—

 

 

 

274,096

 

Contribution margin

 

 

228,735

 

 

 

27,864

 

 

 

256,599

 

General and administrative

 

 

 

 

 

 

 

 

159,081

 

Depreciation and amortization

 

 

 

 

 

 

 

 

17,178

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

(998

)

Income from operations

 

 

 

 

 

 

 

 

81,338

 

Interest expense – net

 

 

 

 

 

 

 

 

13,505

 

Other income – net

 

 

 

 

 

 

 

 

(3,109

)

Income before income taxes

 

 

 

 

 

 

 

$

70,942

 

The following table represents our segment information for the year ended December 31, 2022 (in thousands):

 

 

Year Ended December 31, 2022

 

 

 

Marketplace

 

 

Resale

 

 

Total

 

Revenues

 

$

511,094

 

 

$

89,180

 

 

$

600,274

 

Cost of revenues (exclusive of depreciation and amortization shown separately below)

 

 

73,126

 

 

 

67,382

 

 

 

140,508

 

Marketing and selling:

 

 

 

 

 

 

 

 

 

Online

 

 

224,872

 

 

 

—

 

 

 

224,872

 

Offline

 

 

23,503

 

 

 

—

 

 

 

23,503

 

Total marketing and selling

 

 

248,375

 

 

 

—

 

 

 

248,375

 

Contribution margin

 

 

189,593

 

 

 

21,798

 

 

 

211,391

 

General and administrative

 

 

 

 

 

 

 

 

127,619

 

Depreciation and amortization

 

 

 

 

 

 

 

 

7,732

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

(2,065

)

Income from operations

 

 

 

 

 

 

 

 

78,105

 

Interest expense – net

 

 

 

 

 

 

 

 

12,858

 

Other income – net

 

 

 

 

 

 

 

 

(8,227

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

4,285

 

Income before income taxes

 

 

 

 

 

 

 

$

69,189

 

 

Marketing and selling expenses primarily consist of online costs aimed towards acquiring new customers, which include paid search engine marketing, fees paid to our advertising affiliates and distributors, and other online marketing activities. To a lesser extent, marketing and selling expenses also consist of offline costs towards acquiring new customers, which include spending on traditional media channels, advertising agency costs, and partnership expenses with teams and other media partners.

Substantially all of our sales occur and assets reside in the United States.