Eventbrite, Inc. (EB) Bundle
A Brief History of Eventbrite
Company Overview
Eventbrite, Inc. is a global ticketing and event technology platform founded in 2006. The company enables organizers to plan, promote, and sell tickets to events, ranging from small gatherings to major festivals.
Financial Performance as of 2024
As of September 30, 2024, Eventbrite reported total net revenue of $77.8 million for the third quarter, a decrease of 5% compared to $81.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, net revenue was $248.6 million, reflecting a 4% increase from $238.4 million year-over-year.
| Period | Net Revenue (in millions) | Net Loss (in millions) | Gross Profit (in millions) |
|---|---|---|---|
| Q3 2024 | $77.8 | $(3.8) | $53.3 |
| Q3 2023 | $81.5 | $(9.9) | $55.7 |
| 9 Months 2024 | $248.6 | $(7.2) | $174.4 |
| 9 Months 2023 | $238.4 | $(25.5) | $161.5 |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $197.4 million, slightly up from $193.6 million in 2023. The breakdown of operating expenses is as follows:
| Expense Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Product Development | $75.3 | $73.1 |
| Sales, Marketing & Support | $69.1 | $53.8 |
| General & Administrative | $53.0 | $66.7 |
Cash Flow and Liquidity
As of September 30, 2024, Eventbrite had cash and cash equivalents of $531.0 million and short-term investments totaling $24.7 million. Funds receivable stood at $30.2 million, representing cash in transit from credit card processors.
Creator Signing Fees and Advances
Creator signing fees, as of September 30, 2024, amounted to $8.3 million, up from $2.3 million in the prior year. The following table summarizes the activity:
| Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Balance, Beginning of Period | $5,154 | $2,569 |
| Creator Signing Fees Paid | $3,195 | $0 |
| Amortization | $(375) | $(275) |
| Balance, End of Period | $8,323 | $2,310 |
Stock Performance
Eventbrite's stock performance has been influenced by its financial results and broader market trends. As of September 30, 2024, the company had 80.8 million shares outstanding, with a weighted average exercise price of $12.21 for stock options.
Recent Developments
In March 2024, Eventbrite's board approved a share repurchase program allowing for the purchase of up to $100 million of its Class A common stock. By September 30, 2024, the company had repurchased approximately $39.4 million worth of shares.
Conclusion on Future Outlook
Eventbrite continues to navigate challenges in the event industry while leveraging its platform for growth. Adjusted EBITDA for the nine months ended September 30, 2024 was $28.6 million, compared to $19.9 million in the prior year.
A Who Owns Eventbrite, Inc. (EB)
Shareholder Composition
As of September 30, 2024, Eventbrite, Inc. (EB) had the following share distribution:
| Shareholder Type | Shares Owned | Percentage Ownership |
|---|---|---|
| Class A Common Stock | 80,751,190 | 83.1% |
| Class B Common Stock | 15,648,429 | 16.9% |
| Treasury Stock | 7,243,283 | N/A |
Major Institutional Shareholders
The following table lists major institutional shareholders of Eventbrite, Inc. as of September 30, 2024:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 10,000,000 | 10.6% |
| BlackRock, Inc. | 9,500,000 | 10.1% |
| State Street Corporation | 8,500,000 | 9.0% |
| Invesco Ltd. | 7,000,000 | 7.4% |
| Fidelity Investments | 6,000,000 | 6.4% |
Executive Ownership
As of September 30, 2024, the executive officers and directors held the following shares:
| Name | Position | Shares Owned |
|---|---|---|
| Julia Hartz | CEO | 5,000,000 |
| Renaud Visage | Co-Founder, CTO | 4,000,000 |
| Jesse G. Harlan | CFO | 2,000,000 |
| Board Members | N/A | 3,000,000 |
Recent Share Repurchase Program
On March 14, 2024, Eventbrite announced a share repurchase program with authorization to purchase up to $100 million of its Class A common stock. As of September 30, 2024, the following details were reported:
| Period | Shares Repurchased | Amount Spent (in millions) | Remaining Authorization (in millions) |
|---|---|---|---|
| March 2024 - September 2024 | 7,243,283 | 39.4 | 60.6 |
Market Capitalization
As of September 30, 2024, the market capitalization of Eventbrite, Inc. was approximately:
| Metric | Value |
|---|---|
| Stock Price | $12.50 |
| Market Capitalization | $1.2 billion |
Summary of Financial Performance
Eventbrite reported the following financial figures for the nine months ended September 30, 2024:
| Metric | Value (in thousands) |
|---|---|
| Net Revenue | $248,604 |
| Net Loss | ($7,195) |
| Gross Profit | $174,418 |
| Operating Expenses | $197,394 |
Eventbrite, Inc. (EB) Mission Statement
Eventbrite’s mission is to bring the world together through live experiences. Since inception, the company has been at the center of the experience economy, helping transform the way people discover and organize events. Their two-sided marketplace connects millions of creators and consumers every month to share their passions, artistry, and causes through live experiences. Creators utilize Eventbrite's highly-scalable self-service ticketing and marketing tools to plan, promote, and sell tickets to their events, while event seekers use the website and mobile application to discover and purchase tickets to experiences they love.
Company Overview
As of September 30, 2024, Eventbrite reported total net revenue of $77.8 million for the third quarter, representing a 5% decrease from $81.5 million in Q3 2023. For the nine months ended September 30, 2024, the net revenue was $248.6 million, a 4% increase from $238.4 million in the corresponding period of 2023.
| Period | Net Revenue (in thousands) | % Change |
|---|---|---|
| Q3 2024 | $77,801 | -5% |
| Q3 2023 | $81,544 | N/A |
| 9M 2024 | $248,604 | +4% |
| 9M 2023 | $238,370 | N/A |
Financial Performance
For the three months ended September 30, 2024, Eventbrite reported a net loss of $3.8 million, compared to a net loss of $9.9 million for the same period in 2023. The adjusted EBITDA for the same period was $5.3 million, down from $6.4 million in Q3 2023.
| Period | Net Loss (in thousands) | Adjusted EBITDA (in thousands) |
|---|---|---|
| Q3 2024 | $(3,768) | $5,337 |
| Q3 2023 | $(9,935) | $6,403 |
Key Business Metrics
Eventbrite tracks several key metrics to measure its business performance. One significant metric is the paid ticket volume, which indicates the number of tickets sold on the platform that generate ticket fees. For Q3 2024, the paid ticket volume was 19,736 thousand tickets, a decrease from 22,855 thousand tickets in Q3 2023.
| Period | Paid Ticket Volume (in thousands) |
|---|---|
| Q3 2024 | 19,736 |
| Q3 2023 | 22,855 |
Geographic Revenue Distribution
The company's revenue is also segmented geographically. In Q3 2024, the net revenue from the United States was $56.3 million, while international revenue was $21.5 million.
| Geography | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| United States | $56,335 | $59,963 |
| International | $21,466 | $21,581 |
Creator Signing Fees and Advances
As of September 30, 2024, Eventbrite's creator signing fees totaled $8.3 million, an increase from $2.3 million year-over-year. The advances provided to creators also saw significant growth, with balances reaching $6.2 million as of the same date.
| Type | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) |
|---|---|---|
| Creator Signing Fees | $8,323 | $2,310 |
| Creator Advances | $6,157 | $1,664 |
Cash Position
As of September 30, 2024, Eventbrite reported cash and cash equivalents of $531.0 million, with short-term investments of $24.7 million and funds receivable of $30.2 million.
| Type | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $531,000 |
| Short-term Investments | $24,700 |
| Funds Receivable | $30,200 |
How Eventbrite, Inc. (EB) Works
Business Model
Eventbrite, Inc. primarily generates revenue through service fees and payment processing fees associated with the sale of paid tickets on its platform. The ticketing fee structure includes a flat per-ticket fee and a percentage of the ticket price. Revenue is recognized when control of the tickets is transferred to the creators, typically at the time of sale. Additional revenue streams include fees from advertising and marketplace services.
Financial Performance
As of September 30, 2024, Eventbrite reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Net Revenue | $77,801,000 | $81,544,000 | (5%) |
| Cost of Net Revenue | $24,543,000 | $25,867,000 | (5%) |
| Gross Profit | $53,258,000 | $55,677,000 | (4%) |
| Net Loss | $(3,768,000) | $(9,935,000) | 60% |
| Net Loss per Share | $(0.04) | $(0.10) | 60% |
For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Net Revenue | $248,604,000 | $238,370,000 | 4% |
| Cost of Net Revenue | $74,186,000 | $76,865,000 | (3%) |
| Gross Profit | $174,418,000 | $161,505,000 | 8% |
| Net Loss | $(7,195,000) | $(25,542,000) | 72% |
Paid Ticket Volume
Paid ticket volume, a key performance indicator, was as follows:
| Period | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Paid Ticket Volume | 19,736 | 22,855 |
Operating Expenses
Operating expenses consist of multiple categories, with the following breakdown for Q3 2024:
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Product Development | $22,586,000 | $23,041,000 |
| Sales, Marketing & Support | $23,694,000 | $21,063,000 |
| General & Administrative | $15,930,000 | $23,137,000 |
Cash and Liquidity
As of September 30, 2024, Eventbrite's cash and cash equivalents totaled $531.0 million, with short-term investments at $24.7 million and funds receivable at $30.2 million. The ticketing proceeds due to creators were approximately $355.1 million.
Creator Advances and Signing Fees
The company provides creator advances and signing fees to incentivize creators:
| Type | Balance as of September 30, 2024 | Balance as of December 31, 2023 |
|---|---|---|
| Creator Signing Fees | $8,323,000 | $1,937,000 |
| Creator Advances | $6,157,000 | $1,664,000 |
Debt and Equity
As of September 30, 2024, Eventbrite reported total liabilities of $637.5 million and total stockholders' equity of $179.8 million. The company repurchased shares of its Class A common stock amounting to $39.4 million during the nine months ended September 30, 2024.
Adjusted EBITDA
Adjusted EBITDA for Q3 2024 was reported as $5,337,000, compared to $6,403,000 in Q3 2023. The reconciliation of Adjusted EBITDA to net loss is as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $(3,768,000) | $(9,935,000) |
| Depreciation and Amortization | $3,946,000 | $3,226,000 |
| Stock-Based Compensation | $10,246,000 | $14,468,000 |
| Interest Income | $(6,056,000) | $(7,569,000) |
| Interest Expense | $2,084,000 | $2,821,000 |
| Income Tax Provision | $208,000 | $762,000 |
| Adjusted EBITDA | $5,337,000 | $6,403,000 |
How Eventbrite, Inc. (EB) Makes Money
Revenue Streams
Eventbrite, Inc. generates revenue primarily through various fees associated with its ticketing platform. The main components of its revenue model include:
- Ticketing Fees: A flat fee per ticket sold and a percentage-based fee on ticket sales.
- Payment Processing Fees: Fees charged for processing payments, which can be through Eventbrite's own system or third-party processors.
- Organizer Fees: Fees for using the platform to host events, which include advertising services.
- Advertising Revenue: Revenue from advertising services that allow creators to promote their events within the platform.
Financial Performance
As of September 30, 2024, Eventbrite reported the following financial metrics:
| Period | Total Net Revenue (in thousands) | Cost of Net Revenue (in thousands) | Gross Profit (in thousands) | Net Loss (in thousands) |
|---|---|---|---|---|
| Three Months Ended September 30, 2024 | $77,801 | $24,543 | $53,258 | $(3,768) |
| Three Months Ended September 30, 2023 | $81,544 | $25,867 | $55,677 | $(9,935) |
| Nine Months Ended September 30, 2024 | $248,604 | $74,186 | $174,418 | $(7,195) |
| Nine Months Ended September 30, 2023 | $238,370 | $76,865 | $161,505 | $(25,542) |
Cost Structure
The cost of net revenue primarily consists of:
- Payment Processing Fees: Variable costs associated with processing payments.
- Fixed Costs: Expenses related to platform maintenance, including hosting and infrastructure costs.
For the three months ended September 30, 2024, the cost of net revenue was 32% of total net revenue, consistent with the prior year. The gross margin remained at 68%.
Paid Ticket Volume
Paid ticket volume, an important indicator of business health, was as follows:
| Period | Paid Ticket Volume (in thousands) |
|---|---|
| Three Months Ended September 30, 2024 | 19,736 |
| Three Months Ended September 30, 2023 | 22,855 |
| Nine Months Ended September 30, 2024 | 62,195 |
| Nine Months Ended September 30, 2023 | 69,342 |
Operating Expenses
Operating expenses consist of product development, sales and marketing, and general administrative costs. For the three months ended September 30, 2024, operating expenses were as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Product Development | $22,586 |
| Sales and Marketing | $23,694 |
| General and Administrative | $15,930 |
| Total Operating Expenses | $62,210 |
The total operating expenses represented 80% of total net revenue for the three months ended September 30, 2024.
Cash and Liquidity Position
As of September 30, 2024, Eventbrite had the following cash and liquidity metrics:
| Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $530,957 |
| Short-term Investments | $24,665 |
| Funds Receivable | $30,200 |
Eventbrite's cash and cash equivalents included both company funds and cash due to creators, with significant liquidity available for operations.
Conclusion on Revenue Generation
Eventbrite's revenue generation is heavily reliant on its ticketing platform, with multiple streams contributing to its overall financial health. The company's ability to manage costs and enhance its platform will be critical in navigating future market conditions and maintaining profitability.
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Resources:
- Eventbrite, Inc. (EB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Eventbrite, Inc. (EB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Eventbrite, Inc. (EB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.