Second quarter revenue grows 7% year-over-year
to $84.6 million, within outlook range
Revises full year net revenue outlook
reflecting pricing-related adjustments
Announces plan to reduce operating expenses and
strengthen long-term results
Eventbrite (NYSE: EB), a global marketplace for shared
experiences, reported its financial results for the second quarter
ended June 30, 2024. The Second Quarter 2024 Shareholder Letter can
be found on Eventbrite’s Investor Relations website at
https://investor.eventbrite.com.
“Our second-quarter performance, while within our guidance, was
pressured by the pricing-related headwinds related to our
transition to a two-sided marketplace,” said Julia Hartz,
Co-Founder and Chief Executive Officer. “We are taking action to
refine the go-to-market strategy and reduce our expense structure
to work towards profitability even despite the revised revenue
outlook for the year. That said, we are encouraged by the growth in
the consumer side of the business, namely in mobile app adoption
and tickets driven by Eventbrite’s discovery experiences. I’m
confident that leaning into our marketplace strategy will enable
long-term growth for creators and an increased engagement of
consumers as the desire to gather at live events continues.”
Second Quarter 2024
Highlights
- Net Revenue of $84.6 million, up 7% year-over-year.
Marketplace-related revenue from organizer fees and Eventbrite Ads
grew to over 13% of total net revenue.
- Total free and paid ticket volume of 66.8 million tickets
across 1.4 million events.
- Gross Margin of 70.9% vs 68.8% a year ago.
- Net income of $1.1 million and Net Income Margin of 1.3%, which
includes a net benefit of $8.2 million from a legal settlement and
minimal restructuring charges, compared to net loss of $2.9 million
in the same period last year.
- Adjusted EBITDA of $12.8 million, and Adjusted EBITDA margin of
15.2%.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 June
30,
Six Months Ended June
30,
2024
2023
% Change
2024
2023
% Change
Gross ticket sales
$
840,247
$
889,930
(6
)%
$
1,693,997
$
1,796,363
(6
)%
Net revenue
$
84,551
$
78,912
7
%
$
170,803
$
156,826
9
%
Gross profit
$
59,940
$
54,309
10
%
$
121,160
$
105,828
14
%
Gross profit margin
71
%
69
%
71
%
67
%
Net income (loss)
$
1,063
$
(2,921
)
136
%
$
(3,427
)
$
(15,607
)
(78
)%
Net income (loss) margin
1
%
(4
)%
(2
)%
(10
)%
Adjusted EBITDA (non-GAAP)
$
12,836
$
11,313
13
%
$
23,249
$
13,455
73
%
Adjusted EBITDA margin (non-GAAP)
15
%
14
%
14
%
9
%
Operating Highlights The key operating metrics of our
business are summarized below (in thousands, except average ticket
value, unaudited):
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
% Change
2024
2023
% Change
Total tickets
66,791
79,805
(16
)%
132,611
154,036
(14
)%
Paid tickets
21,243
23,309
(9
)%
42,459
46,487
(9
)%
Total events
1,415
1,607
(12
)%
2,524
2,709
(7
)%
Paid events
529
563
(6
)%
933
936
(0
)%
Total creators
358
422
(15
)%
504
564
(11
)%
Paid creators
177
189
(6
)%
248
253
(2
)%
Average ticket value (ATV)
$
39.55
$
38.15
4
%
$
39.73
$
38.52
3
%
Total ticket buyers
27,356
32,638
(16
)%
48,313
55,675
(13
)%
Business Outlook
The company has updated its outlook for fiscal year 2024, based
on factors that include:
- Lower than anticipated paid ticket volume reflecting reduced
creator acquisition and retention
- Planned changes to pricing and packaging plans offered to
creators including the introduction of a free tier
As a result, the company now expects fiscal third quarter 2024
revenue to be in the range of $74 to $77 million and $318 million
to $325 million for fiscal year 2024.
The company has reviewed its product roadmap, organizational
structure, and staffing with a focus on continuing support for the
strategic transformation, increasing operating efficiency, and
lowering costs. Today, the company announced the elimination of
roughly 100 positions and initiated plans to reduce other costs.
The company expects to incur up to $7 million in expenses related
to severance and cost-reduction actions during Q3, and that these
actions will reduce the company’s total annualized operating costs
by $30 million.
At the mid-point of its revenue outlook, the company now expects
a 10% Adjusted EBITDA margin for the full year 2024, excluding the
impact of restructuring costs and other items.
*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 share-based compensation expense, foreign exchange
gains and losses, and other non-recurring expenses.
Earnings Webcast Information
Event: Eventbrite Second Quarter 2024 Earnings Conference Call
Date: Thursday, August 8, 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 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)
June 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
575,499
$
489,200
Funds receivable
28,869
48,773
Short-term investments, at amortized
cost
56,698
153,746
Accounts receivable, net
4,856
2,814
Creator signing fees, net
3,601
634
Creator advances, net
6,852
2,804
Prepaid expenses and other current
assets
12,147
13,880
Total current assets
688,522
711,851
Creator signing fees, net noncurrent
1,553
1,303
Property and equipment, net
12,643
9,384
Operating lease right-of-use assets
1,000
177
Goodwill
174,388
174,388
Acquired intangible assets, net
9,132
13,314
Other assets
7,282
2,913
Total assets
$
894,520
$
913,330
Liabilities and Stockholders’
Equity
Current liabilities
Accounts payable, creators
$
314,718
$
303,436
Accounts payable, trade
1,467
1,821
Chargebacks and refunds reserve
8,213
8,088
Accrued compensation and benefits
8,534
17,522
Accrued taxes
5,712
8,796
Operating lease liabilities
1,973
1,523
Other accrued liabilities
13,062
16,425
Total current liabilities
353,679
357,611
Accrued taxes, noncurrent
4,532
4,526
Operating lease liabilities,
noncurrent
1,423
1,768
Long-term debt
358,725
357,668
Total liabilities
718,359
721,573
Stockholders’ equity
Common stock
1
1
Additional paid-in capital
1,032,205
1,007,190
Treasury stock at cost
(37,184
)
—
Accumulated deficit
(818,861
)
(815,434
)
Total stockholders’ equity
176,161
191,757
Total liabilities and stockholders’
equity
$
894,520
$
913,330
Condensed Consolidated Statement of Operations (in
thousands, except share and per share amounts; unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net revenue
$
84,551
$
78,912
$
170,803
$
156,826
Cost of net revenue
24,611
24,603
49,643
50,998
Gross profit
59,940
54,309
121,160
105,828
Operating expenses
Product development
26,057
23,486
52,741
50,050
Sales, marketing and support
24,521
15,679
45,390
32,739
General and administrative
15,816
21,826
37,053
43,544
Total operating expenses
66,394
60,991
135,184
126,333
Loss from operations
(6,454
)
(6,682
)
(14,024
)
(20,505
)
Interest income
7,382
6,926
14,789
12,379
Interest expense
(2,806
)
(2,786
)
(5,606
)
(5,538
)
Other income (expense), net
3,725
80
2,472
(873
)
Income (loss) before income taxes
1,847
(2,462
)
(2,369
)
(14,537
)
Income tax provision
784
459
1,058
1,070
Net income (loss)
$
1,063
$
(2,921
)
$
(3,427
)
$
(15,607
)
Net income (loss) per share
Basic
$
0.01
$
(0.03
)
$
(0.04
)
$
(0.16
)
Diluted
$
0.01
$
(0.03
)
$
(0.04
)
$
(0.16
)
Weighted-average number of shares
outstanding used to compute net income (loss) per share
Basic
96,142
99,995
95,557
99,748
Diluted
96,290
99,995
95,557
99,748
Condensed Consolidated Statements of Cash Flows (in
thousands; unaudited)
Six Months Ended June
30,
2024
2023
Cash flows from operating
activities
Net loss
$
(3,427
)
$
(15,607
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
7,242
6,709
Stock-based compensation expense
29,239
26,693
Amortization of debt discount and issuance
costs
1,057
1,010
Unrealized gain on foreign currency
exchange
(1,326
)
(1,674
)
Accretion on short-term investments
(2,769
)
(3,585
)
Non-cash operating lease expenses
273
5,002
Amortization of creator signing fees
401
468
Changes related to creator advances,
creator signing fees, and allowance for credit losses
(2,920
)
(1,496
)
Provision for chargebacks and refunds
14,559
5,755
Gain on litigation settlement
(3,927
)
—
Other
623
908
Changes in operating assets and
liabilities
Accounts receivable
(2,866
)
(763
)
Funds receivable
20,155
24,136
Creator signing fees and creator
advances
(3,922
)
655
Prepaid expenses and other assets
1,291
1,061
Accounts payable, creators
9,712
15,789
Accounts payable
(366
)
(487
)
Chargebacks and refunds reserve
(14,415
)
(8,350
)
Accrued compensation and benefits
(8,988
)
985
Accrued taxes
(3,840
)
(8,596
)
Operating lease liabilities
(991
)
(1,933
)
Other accrued liabilities
(4,003
)
1,480
Net cash provided by operating
activities
30,792
48,160
Cash flows from investing
activities
Purchases of short-term investments
(112,185
)
(150,565
)
Maturities of short-term investments
212,002
85,500
Purchases of property and equipment
(403
)
(521
)
Capitalized internal-use software
development costs
(4,818
)
(3,161
)
Net cash provided by (used in) investing
activities
94,596
(68,747
)
Cash flows from financing
activities
Repurchase of common stock
(36,508
)
—
Proceeds from exercise of stock
options
—
748
Taxes paid related to net share settlement
of equity awards
(5,776
)
(3,201
)
Proceeds from issuance of common stock
under ESPP
454
567
Principal payments on finance lease
obligations
—
(1
)
Net cash used in financing activities
(41,830
)
(1,887
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
2,741
2,787
Net increase in cash, cash equivalents and
restricted cash
86,299
(19,687
)
Cash, cash equivalents and restricted
cash
Beginning of period
489,200
540,174
End of period
$
575,499
$
520,487
Reconciliation of Net Income (Loss) to Adjusted EBITDA and
the Calculation of Adjusted EBITDA Margin (in thousands;
unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss)(1)
$
1,063
$
(2,921
)
$
(3,427
)
$
(15,607
)
Add:
Depreciation and amortization
3,649
3,193
7,243
6,708
Stock-based compensation
15,276
14,599
29,238
26,693
Interest income
(7,382
)
(6,926
)
(14,789
)
(12,379
)
Interest expense
2,806
2,786
5,606
5,538
Employer taxes related to employee equity
transactions
365
203
792
559
Other (income) expense, net
(3,725
)
(80
)
(2,472
)
873
Income tax provision
784
459
1,058
1,070
Adjusted EBITDA
$
12,836
$
11,313
$
23,249
$
13,455
Net revenue
$
84,551
$
78,912
$
170,803
$
156,826
Adjusted EBITDA margin
15
%
14
%
14
%
9
%
(1) Net income (loss) and Adjusted EBITDA includes loss recovery
from a legal settlement and minimal restructuring costs totaling
$4.3 million and $4.2 million in the three and six months ended
June 30, 2024, and restructuring costs totaling $5.6 million and
$14.4 million in the three and six months ended June 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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