Third quarter revenue of $77.8 million, above
the outlook range
Consumer reach totaled over 93 million with
paid ticket volume of 19.7 million in Q3
Creator acquisition improved following the
introduction of the free tier in September
Eventbrite (NYSE: EB), a global marketplace for shared
experiences, reported its financial results for the third quarter
ended September 30, 2024. The Third Quarter 2024 Shareholder Letter
can be found on Eventbrite’s Investor Relations website at
https://investor.eventbrite.com.
“In the third quarter, our results were above our outlook range
and the actions we took on pricing in September have begun to
benefit creator acquisition,” said Julia Hartz, Co-Founder, Chief
Executive Officer, and Executive Chair. “We launched timed entry,
are elevating our customer service and support to help creators
grow, and are expanding personalization and discoverability to
drive more consumers to our platform. We remain confident in our
marketplace strategy, as we work to drive sustainable long-term
growth and shareholder value by focusing on execution and
delighting consumers and creators with great experiences.”
Third Quarter 2024
Highlights
- Net Revenue of $77.8 million, down 5% year-over-year.
Marketplace-related revenue from organizer fees and Eventbrite Ads
at 12% of total net revenue.
- Total free and paid ticket volume of 65.0 million tickets
across 1.4 million events.
- Gross Margin of 68.5% vs 68.3% a year ago.
- Net Loss of ($3.8) million and Net Loss Margin of (4.8%), which
includes $5.4 million from reduction in force charges, compared to
net loss of ($9.9) million and Net Loss Margin of (12.2)% in the
same period last year.
- Adjusted EBITDA of $5.3 million, and Adjusted EBITDA margin of
6.9%.1
1 For more information on these non-GAAP financial measures,
please see "―About non-GAAP financial measures" and the tables
under "―Reconciliation of GAAP to non-GAAP financial results"
included at the end of this release.
The summary of GAAP and non-GAAP consolidated financial results
are in the table below (in thousands, except percentages,
unaudited):
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% Change
2024
2023
% Change
Gross ticket sales
$
795,367
$
892,431
(11
)%
$
2,489,364
$
2,688,794
(7
)%
Net revenue
$
77,801
$
81,544
(5
)%
$
248,604
$
238,370
4
%
Gross profit
$
53,258
$
55,677
(4
)%
$
174,418
$
161,505
8
%
Gross profit margin
68
%
68
%
70
%
68
%
Net income (loss)
$
(3,768
)
$
(9,935
)
(62
)%
$
(7,195
)
$
(25,542
)
(72
)%
Net income (loss) margin
(5
)%
(12
)%
(3
)%
(11
)%
Adjusted EBITDA (non-GAAP)
$
5,337
$
6,403
(17
)%
$
28,586
$
19,858
44
%
Adjusted EBITDA margin (non-GAAP)
7
%
8
%
11
%
8
%
Operating Highlights
The key operating metrics of our business are summarized below
(in thousands, except average ticket value, unaudited):
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% Change
2024
2023
% Change
Total tickets
64,985
77,257
(16
)%
197,597
231,274
(15
)%
Paid tickets
19,736
22,855
(14
)%
62,195
69,320
(10
)%
Total events
1,357
1,572
(14
)%
3,655
3,979
(8
)%
Paid events
509
561
(9
)%
1,349
1,381
(2
)%
Total creators
333
395
(16
)%
640
716
(11
)%
Paid creators
163
185
(12
)%
313
329
(5
)%
Average ticket value (ATV)
$
40.30
$
39.05
3
%
$
40.03
$
38.79
3
%
Total ticket buyers
26,604
31,420
(15
)%
65,894
75,742
(13
)%
Business Outlook
The company expects fourth quarter 2024 revenue to be within a
range of $74 to $77 million, and full-year 2024 revenue will be
within a range of $322 million to $326 million. At the midpoint of
our revenue outlook range, we expect Adjusted EBITDA margin,
excluding the impact of severance costs and other non-routine
items, to be approximately 10% for the year.
We have not provided an outlook for GAAP net income (loss) or
GAAP net income (loss) margin or reconciliations of expected
Adjusted EBITDA to GAAP net income (loss) or expected Adjusted
EBITDA margin to GAAP net income (loss) margin, because GAAP net
income (loss) and GAAP net income (loss) margin on a
forward-looking basis are not available without unreasonable
efforts due to the potential variability and complexity of the
items that are excluded from Adjusted EBITDA and Adjusted EBITDA
margin, such as stock-based compensation expense, foreign exchange
rate gains and losses, and other non-recurring expenses.
Earnings Webcast
Information
Event: Eventbrite Third Quarter 2024 Earnings Conference Call
Date: Thursday, November 7, 2024 Time: 2:00 p.m. Pacific Time (5:00
p.m. Eastern Time) Live Webcast Site:
https://investor.eventbrite.com An archived webcast of the
conference call will be accessible on Eventbrite’s Investor
Relations page, https://investor.eventbrite.com
About Eventbrite
Eventbrite is a global events marketplace that serves event
creators and event-goers in nearly 180 countries. Since its
inception, Eventbrite has been at the center of the experience
economy, transforming how people organize and attend events. The
company was founded by Julia Hartz, Kevin Hartz and Renaud Visage,
with a vision to build a self-service platform that would make it
possible for anyone to create and sell tickets to live experiences.
With over 300 million tickets distributed for over 5 million events
in 2023, Eventbrite is where people worldwide discover new things
to do or new ways to do more of what they love. Eventbrite has also
earned industry recognition as a top employer with special
designations that include a coveted spot on Fast Company’s
prestigious The World’s 50 Most Innovative Companies and Fast
Company’s Brands That Matter lists, the Great Place to Work® Award
in the U.S., and Inc.'s Best-Led Companies honor. Learn more at
www.eventbrite.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, that involve substantial risks and uncertainties. All
statements other than statements of historical fact could be deemed
forward-looking, including, but not limited to, statements
regarding the future performance of Eventbrite, Inc. and its
consolidated subsidiaries (the “Company”); the Company’s
expectations with respect to its operating model and marketplace
strategy; and the Company’s expectations described under “Business
Outlook” above. In some cases, forward-looking statements can be
identified by terms such as “may,” “will,” “appears,” “shall,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“target,” “projects,” “contemplates,” “believes,” “estimates,”
“predicts,” “potential,” or “continue,” or the negative of these
words or other similar terms or expressions that concern the
Company’s expectations, strategy, plans, or intentions. Such
statements are subject to a number of known and unknown risks,
uncertainties, assumptions, and other factors that may cause the
Company’s actual results, performance, or achievements to differ
materially from results expressed or implied in this press release,
including those more fully described in the Company’s filings with
the Securities and Exchange Commission, including the Company’s
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Further information on potential risks that could affect actual
results will be included in the subsequent periodic and current
reports and other filings that the Company makes with the
Securities and Exchange Commission from time to time. Investors are
cautioned not to place undue reliance on these statements. Actual
results could differ materially from those expressed or implied.
All forward-looking statements are based on information and
estimates available to the Company at the time of this release, and
are not guarantees of future performance, and reported results
should not be considered as an indication of future performance.
Except as required by law, the Company assumes no obligation to
update any of the statements in this press release.
Disclaimer Regarding Ticketing, Creator and Event
Metrics
This press release includes certain measures related to our
ticketing business, such as paid tickets, paid creators, ticket
buyers, average ticket value, and paid events. We believe that the
use of these metrics is helpful to our investors as these metrics
are used by management in assessing the health of our business and
our operating performance. These metrics are based on what we
believe to be reasonable estimates for the applicable period of
measurement. There are inherent challenges in measuring these
metrics, and we regularly review and may adjust our processes for
calculating our internal metrics to improve their accuracy. You
should not consider these metrics in isolation or as substitutes
for analysis of our results of operations as reported under
GAAP.
Condensed Consolidated Balance
Sheets (in thousands; unaudited)
September 30, 2024
December 31,
2023
Assets
Current assets
Cash and cash equivalents
$
530,957
$
489,200
Funds receivable
30,190
48,773
Short-term investments, at amortized
cost
24,665
153,746
Accounts receivable, net
3,224
2,814
Creator signing fees, net
4,399
634
Creator advances, net
6,157
2,804
Prepaid expenses and other current
assets
11,692
13,880
Total current assets
611,284
711,851
Creator signing fees, net noncurrent
3,924
1,303
Property and equipment, net
13,549
9,384
Operating lease right-of-use assets
950
177
Goodwill
174,388
174,388
Acquired intangible assets, net
7,017
13,314
Other assets
6,261
2,913
Total assets
$
817,373
$
913,330
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable, creators
$
355,074
$
303,436
Accounts payable, trade
1,127
1,821
Chargebacks and refunds reserve
9,057
8,088
Accrued compensation and benefits
5,506
17,522
Accrued taxes
5,243
8,796
Operating lease liabilities
2,010
1,523
Other accrued liabilities
13,542
16,425
Total current liabilities
391,559
357,611
Accrued taxes, noncurrent
4,546
4,526
Operating lease liabilities,
noncurrent
956
1,768
Long-term debt
240,395
357,668
Other liabilities
79
—
Total liabilities
637,535
721,573
Stockholders’ equity
Common stock
1
1
Additional paid-in capital
1,041,894
1,007,190
Treasury stock at cost
(39,428
)
—
Accumulated deficit
(822,629
)
(815,434
)
Total stockholders’ equity
179,838
191,757
Total liabilities and stockholders’
equity
$
817,373
$
913,330
Condensed Consolidated Statement of
Operations (in thousands, except share and per share amounts;
unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Net revenue
$
77,801
$
81,544
$
248,604
$
238,370
Cost of net revenue
24,543
25,867
74,186
76,865
Gross profit
53,258
55,677
174,418
161,505
Operating expenses
Product development
22,586
23,041
75,327
73,091
Sales, marketing and support
23,694
21,063
69,084
53,802
General and administrative
15,930
23,137
52,983
66,681
Total operating expenses
62,210
67,241
197,394
193,574
Loss from operations
(8,952
)
(11,564
)
(22,976
)
(32,069
)
Interest income
6,056
7,569
20,845
19,948
Interest expense
(2,084
)
(2,821
)
(7,690
)
(8,359
)
Other income (expense), net
1,420
(2,357
)
3,892
(3,230
)
Loss before income taxes
(3,560
)
(9,173
)
(5,929
)
(23,710
)
Income tax provision
208
762
1,266
1,832
Net loss
$
(3,768
)
$
(9,935
)
$
(7,195
)
$
(25,542
)
Net loss per share, basic and diluted
$
(0.04
)
$
(0.10
)
$
(0.08
)
$
(0.26
)
Weighted-average number of shares
outstanding used to compute net loss per share, basic and
diluted
96,498
100,540
95,571
100,030
Condensed Consolidated Statements of
Cash Flows (in thousands; unaudited)
Nine Months Ended September
30,
2024
2023
Cash flows from operating
activities
Net loss
$
(7,195
)
$
(25,542
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
11,189
9,934
Stock-based compensation expense
39,484
41,161
Amortization of debt discount and issuance
costs
1,512
1,557
Loss on debt extinguishment
315
—
Unrealized (gain) loss on foreign currency
exchange
741
(103
)
Accretion on short-term investments
(3,112
)
(5,477
)
Non-cash operating lease expenses
463
5,088
Amortization of creator signing fees
777
742
Changes related to creator advances,
creator signing fees, and allowance for credit losses
(2,434
)
(1,671
)
Provision for chargebacks and refunds
21,015
9,549
Gain on litigation settlement
(3,927
)
—
Other
796
1,464
Changes in operating assets and
liabilities
Accounts receivable
(1,731
)
(1,181
)
Funds receivable
18,480
10,917
Creator signing fees and creator
advances
(6,327
)
44
Prepaid expenses and other assets
2,767
2,900
Accounts payable, creators
53,423
64,711
Accounts payable
(675
)
328
Chargebacks and refunds reserve
(20,461
)
(12,681
)
Accrued compensation and benefits
(12,016
)
4,198
Accrued taxes
(4,315
)
(7,846
)
Operating lease liabilities
(1,561
)
(2,563
)
Other accrued liabilities
(1,580
)
6,271
Net cash provided by operating
activities
85,628
101,800
Cash flows from investing
activities
Purchases of short-term investments
(136,808
)
(273,677
)
Maturities of short-term investments
269,001
211,000
Purchases of property and equipment
(585
)
(991
)
Capitalized internal-use software
development costs
(6,964
)
(4,848
)
Net cash provided by (used in) investing
activities
124,644
(68,516
)
Cash flows from financing
activities
Principal repayment of debt
obligations
(120,450
)
—
Repurchase of common stock
(39,296
)
—
Proceeds from exercise of stock
options
—
930
Taxes paid related to net share settlement
of equity awards
(6,837
)
(5,486
)
Proceeds from issuance of common stock
under ESPP
454
567
Principal payments on finance lease
obligations
—
(1
)
Net cash used in financing activities
(166,129
)
(3,990
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(2,386
)
(925
)
Net increase in cash, cash equivalents and
restricted cash
41,757
28,369
Cash, cash equivalents and restricted
cash
Beginning of period
489,200
540,174
End of period
$
530,957
$
568,543
Reconciliation of Net Loss to Adjusted
EBITDA and the Calculation of Adjusted EBITDA Margin (in
thousands; unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Net loss (1)
$
(3,768
)
$
(9,935
)
$
(7,195
)
$
(25,542
)
Add:
Depreciation and amortization
3,946
3,226
11,189
9,934
Stock-based compensation
10,246
14,468
39,484
41,161
Interest income
(6,056
)
(7,569
)
(20,845
)
(19,948
)
Interest expense
2,084
2,821
7,690
8,359
Employer taxes related to employee equity
transactions
97
273
889
832
Other (income) expense, net
(1,420
)
2,357
(3,892
)
3,230
Income tax provision
208
762
1,266
1,832
Adjusted EBITDA
$
5,337
$
6,403
$
28,586
$
19,858
Net revenue
$
77,801
$
81,544
$
248,604
$
238,370
Adjusted EBITDA margin
7
%
8
%
11
%
8
%
(1) Net loss and Adjusted EBITDA includes reduction in force
costs totaling $5.4 million in the three and nine months ended
September 30, 2024, and restructuring costs totaling $0.8 million
and $15.1 million in the three and nine months ended September 30,
2023.
About Non-GAAP Financial Measures
We believe that the use of Adjusted EBITDA and Adjusted EBITDA
margin is helpful to our investors in understanding and evaluating
our results of operations and useful measures for period-to-period
comparisons of our business performance as they are metrics used by
management in assessing the health of our business and our
operating performance, making operating decisions, and performing
strategic planning and annual budgeting. These measures are not
prepared in accordance with GAAP and have limitations as an
analytical tool, and you should not consider them in isolation or
as a substitute for analysis of our results of operations as
reported under GAAP. In addition, other companies may not calculate
non-GAAP financial measures in the same manner as we calculate
them, limiting their usefulness as comparative measures. You are
encouraged to evaluate the adjustments and the reasons we consider
them appropriate. Some amounts in this press release may not add
due to rounding.
Adjusted EBITDA
We calculate Adjusted EBITDA as net income (loss) adjusted to
exclude depreciation and amortization, stock-based compensation
expense, interest expense, interest income, employer taxes related
to employee transactions, other (income) expense net, which
consists of foreign exchange rate gains and losses, and income tax
provision (benefit). Adjusted EBITDA should not be considered as an
alternative to net income (loss) or any other measure of financial
performance calculated and presented in accordance with GAAP.
Some of the limitations of Adjusted EBITDA include (i) Adjusted
EBITDA does not properly reflect capital spending that occurs off
of the income statement or account for future contractual
commitments, (ii) although depreciation and amortization are
non-cash charges, the underlying assets may need to be replaced and
Adjusted EBITDA does not reflect these capital expenditures and
(iii) Adjusted EBITDA does not reflect the interest and principal
required to service our indebtedness. In evaluating Adjusted
EBITDA, you should be aware that in the future we expect to incur
expenses similar to the adjustments in this release. Our
presentation of Adjusted EBITDA should not be construed as an
inference that our future results will be unaffected by these
expenses or any unusual or non-routine items. When evaluating our
performance, you should consider Adjusted EBITDA alongside other
financial performance measures, including our net income (loss) and
other GAAP results.
Adjusted EBITDA Margin
Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by
net revenue. Because of the limitations described above, you should
consider Adjusted EBITDA and Adjusted EBITDA Margin alongside other
financial performance measures, including net income (loss), net
income (loss) margin, and our other GAAP results.
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