SAN FRANCISCO--(BUSINESS WIRE)--This year, Eventbrite released new tools based on what matters most to organizers: helping them sell more tickets and reach new audiences by transforming event discovery. Eventbrite also introduced features that simplify planning and checkout to help organizers deliver a great attendee experience. As organizers head into the busy holiday season, these innovations make it easier than ever to meet demand, reach more fans, and deliver standout live experiences. "We. ...

Core Insights - Eventbrite (EB) reported break-even quarterly earnings per share, exceeding the Zacks Consensus Estimate of a loss of $0.05, and showing an improvement from a loss of $0.04 per share a year ago, resulting in an earnings surprise of +100.00% [1] - The company posted revenues of $71.74 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.06%, but down from $77.8 million year-over-year [2] - Eventbrite shares have declined approximately 31.9% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of Eventbrite's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $75.21 million, and for the current fiscal year, it is -$0.15 on revenues of $293.51 million [7] Industry Context - The Internet - Services industry, to which Eventbrite belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - In Q3, the company reported net revenue of $71.7 million, down 8% year-over-year, primarily due to lower ticketing revenue and the elimination of organizer fees, partially offset by a 38% increase in revenue from Eventbrite Ads [18][19] - Adjusted EBITDA was $8.4 million, representing a 58% year-over-year increase and an adjusted EBITDA margin of 11.7% [20] - Q3 net income was $6.4 million, a significant improvement from a net loss of $3.8 million in the previous year [20] Business Line Data and Key Metrics Changes - Paid ticket volume totaled 19.1 million, down 3% year-over-year, but showed a 400 basis points improvement from the 7% decline in Q2 [18] - Eventbrite Ads revenue grew 38% year-over-year, contributing positively to overall revenue despite the decline in ticketing revenue [18][19] Market Data and Key Metrics Changes - The company reported a nearly 4% increase in new paid creator acquisition in Q3, indicating a strengthening marketplace [8] - The average monthly users reached 92 million in Q3, with consumers and creators across 180 countries [9] Company Strategy and Development Direction - The company aims to stabilize paid ticket volumes and creator activity, with a focus on disciplined execution to support revenue growth and margin expansion in 2026 [6][10] - Strategic initiatives include enhancing creator tools, improving consumer engagement, and expanding market share globally [10][15] - The company plans to leverage AI for product innovation, focusing on premium tools for larger creators and enhancing consumer personalization [30][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational momentum, expecting to return to monthly year-over-year paid ticket volume growth within the first few months of 2026 [23][24] - The company anticipates net revenue for Q4 to be between $71.5 million and $74.5 million, with an adjusted EBITDA margin of 8-9% [23] Other Important Information - Operating expenses were $49.6 million, down 20% year-over-year, marking the lowest level in four years [19] - The company ended the quarter with $511 million in cash and cash equivalents, with total debt reduced to $175 million [21] Q&A Session Summary Question: How is the company thinking about the right level of investment to drive growth in 2026? - Management emphasized a disciplined approach to operating expenses while reallocating funds to areas that drive growth, balancing cost reduction with investment in growth initiatives [26][28] Question: How does the company view the impact of GenAI on product innovation? - The company plans to focus on premium tools for larger creators, using AI to enhance marketing performance and consumer engagement, and expanding globally [30][33] Question: What is the company's stance on the ticketing ecosystem amid recent industry discussions? - The company aims to democratize the ticketing industry, advocating for fair pricing and transparency while continuing to invest in creator tools and consumer-friendly practices [36][38] Question: Can you provide insights on the sequential gross margin improvement and its implications? - Management expects modest continued improvement in gross margin, driven by the increasing contribution of higher-margin Eventbrite Ads to overall revenue [40][43]

Q3 2025 Financial Performance - Paid tickets reached 19.1 million, a 3% year-over-year decrease, but an improvement from the 7.3% decline in Q2 2025[16] - Gross ticket sales totaled $748 million, down 6% year-over-year[12] - Net revenue was $71.7 million, an 8% decrease year-over-year, driven by a 5% decline in ticketing revenue[26] - Net income was $6.4 million, compared to a net loss of $3.8 million in Q3 2024, driven by a $5.8 million gain on debt extinguishment and lower operating expenses[29] - Adjusted EBITDA was $8.4 million with an Adjusted EBITDA margin of 11.7%[32] Operational Metrics - Paid creators totaled 162,000, down less than 1% year-over-year, compared to a 5% decrease in Q2 2025[19] - Average Monthly Active Users (MAUs) reached 92.3 million, flat year-over-year, but up 1.1 million from Q2 2025[22] Financial Position - Operating expenses decreased 20% year-over-year to $49.6 million, the lowest since 2021[35] - Stock-based compensation decreased 42% year-over-year to $5.9 million[38] - Debt outstanding was $175 million, down $65 million year-over-year[41] - Available liquidity was $196 million, a $52 million decrease from Q2 2025 due to a $125 million repurchase of 2026 convertible notes, partially offset by a new $60 million term loan[44] Business Outlook - The company anticipates Q4 2025 net revenue to be between $71.5 million and $74.5 million, with an Adjusted EBITDA margin of approximately 8% to 9%[46] - Fiscal year 2025 net revenue is expected to be between $290 million and $293 million, with an Adjusted EBITDA margin of approximately 8% to 9%[47]

Financial Position - As of September 30, 2025, cash and cash equivalents were $402.8 million, while restricted cash amounted to $107.9 million, totaling $510.7 million[50]. - The company reported funds receivable of $16.3 million as of September 30, 2025, down from $34.2 million as of December 31, 2024[53]. - Accounts receivable, net, was $772,000 as of September 30, 2025, compared to $2.2 million as of December 31, 2024[54]. - The balance of creator signing fees, net, was $7.1 million as of September 30, 2025, reflecting an increase from $5.2 million at the beginning of the period[56]. - As of September 30, 2025, the balance of creator advances was $6,832 thousand, an increase from $6,157 thousand as of December 31, 2024[58]. - The outstanding advance payouts as of September 30, 2025, were $118.3 million, up from $101.2 million as of December 31, 2024[60]. - The chargebacks and refunds reserve remained stable at $10.3 million as of September 30, 2025, consistent with the amount as of December 31, 2024[62]. - The net property and equipment value decreased to $9,489 thousand as of September 30, 2025, from $12,640 thousand as of December 31, 2024[64]. - The carrying amount of goodwill was $174.4 million as of September 30, 2025, unchanged from December 31, 2024[68]. - The total operating lease liabilities as of September 30, 2025, were $964 thousand after accounting for imputed interest[67]. - As of September 30, 2025, the Company's total outstanding long-term debt was $174.861 million, down from $240.719 million as of December 31, 2024, representing a decrease of approximately 27.4%[15]. Revenue Recognition - The company recognized ticketing revenue when tickets are sold, which includes a flat fee and a fixed percentage-based fee per ticket[39]. - The company’s advertising revenue is recognized as advertising impressions are displayed to consumers[44]. - The company operates as a single operating segment, generating revenue primarily from service fees and payment processing fees[36]. - The Company generates revenue primarily from ticketing fees and payment processing fees, recognizing revenue when control of the promised goods or services is transferred[38]. - Total net revenue for the three months ended September 30, 2025, was $71.743 million, a decrease from $77.801 million in the same period of 2024[115]. - Revenue from the United States for the three months ended September 30, 2025, was $50.6 million, down from $56.3 million in 2024, representing a decline of approximately 10.0%[115]. Expenses and Costs - Operating lease costs for the three months ended September 30, 2025, were $150 thousand, down from $190 thousand in the same period of 2024[66]. - The total amortization of acquired intangible assets for the nine months ended September 30, 2025, was $5,014 thousand, compared to $6,296 thousand for the same period in 2024[69]. - The depreciation expense for the three months ended September 30, 2025, was $132 thousand, a decrease from $154 thousand in the same period of 2024[64]. - Stock-based compensation expense for the nine months ended September 30, 2025, totaled $23.6 million, compared to $39.484 million for the same period in 2024[109]. - For the three months ended September 30, 2025, total stock-based compensation expense was $5.9 million, compared to $10.2 million for the same period in 2024, reflecting a decrease of approximately 42.3%[109]. Debt and Financing - The Company entered into a $60 million senior secured term loan facility on August 6, 2025, with the full amount borrowed and held in escrow until certain notes are repaid[75]. - The effective interest rate for the 2026 Notes is 1.3%, while the effective interest rate for the 2025 Notes is 5.8%[82][83]. - The Company repurchased $125 million of the 2026 Notes for approximately $118.9 million, resulting in a $5.8 million gain on extinguishment in Q3 2025[87]. - The Company has contractual obligations under its Term Loan and Convertible Notes, including a maximum consolidated net total leverage ratio ranging from 3.25 to 1.00 to 2.00 to 1.00, and minimum revenue of $270 million[80]. - The fair value of the Term Loan was estimated at $62.5 million as of September 30, 2025, using a discounted cash-flow model[81]. - The Company incurred total interest expense of $3.792 million for the nine months ended September 30, 2025, compared to $7.688 million for the same period in 2024, reflecting a decrease of approximately 50.7%[15]. - The Company recorded cash interest of $1.1 million related to the 2026 Notes during the nine months ended September 30, 2025[82]. - The Company accrued a minimum estimated amount of $0.5 million related to a legal matter as of September 30, 2025, with a potential loss range between $0.5 million and $2.1 million[98]. Income and Tax - The company reported a net income of $6.369 million for the three months ended September 30, 2025, compared to a net loss of $3.768 million for the same period in 2024[111]. - The Company recorded an income tax benefit of $0.1 million for the three months ended September 30, 2025, compared to an income tax expense of $0.2 million for the same period in 2024[112]. - Basic net income per share for the three months ended September 30, 2025, was $0.07, while diluted net income per share was $0.06, compared to a loss of $0.04 per share in 2024[111]. Stock and Share Repurchase - The company has a share repurchase program authorized for up to $100 million, with approximately $50 million remaining available for future repurchases as of September 30, 2025[102]. - The balance of outstanding RSUs, RSAs, and PSUs as of September 30, 2025, was 15,492,135, with a weighted-average grant date fair value of $3.75 per share[108]. - Total unrecognized stock-based compensation expense related to stock awards was $30.6 million as of September 30, 2025, to be recognized over a weighted-average period of 1.8 years[108]. - The Company has approximately $50.0 million remaining available for future repurchases under its share repurchase program approved on March 14, 2024[102].

Eventbrite Reports Third Quarter 2025 Financial Results Delivers Net Revenue of $71.7 million, consistent with Outlook Reports Net Income of $6.4 Million, up $10.1 million from Prior Year Achieves Adjusted EBITDA Margin of 11.7%, Exceeding Guidance Narrows Net Revenue Guidance and Raises Adjusted EBITDA Margin Outlook for Fiscal Year 2025 11/6/2025 SAN FRANCISCO -- (BUSINESS WIRE) -- Eventbrite (NYSE: EB), a global marketplace for shared experiences, reported its financial results for the third quarter ende ...

Group 1 - The article discusses a shift in consumer spending habits among younger generations, who are reportedly prioritizing experiences such as travel and concerts over material goods like clothing [1] - The current macroeconomic climate may be influencing these spending behaviors, suggesting a potential change in market dynamics [1] - Gary Alexander, an analyst with extensive experience in technology and startups, provides insights into industry trends and consumer behavior [1]

Core Insights - Eventbrite (EB) reported a quarterly loss of $0.02 per share, outperforming the Zacks Consensus Estimate of a loss of $0.08, marking a 75.00% earnings surprise [1] - The company generated revenues of $72.76 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.12%, but down from $84.55 million year-over-year [2] - Eventbrite has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates four times in the same period [2] Financial Performance - The company's shares have declined approximately 26.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $74.71 million, and for the current fiscal year, it is -$0.27 on revenues of $299.43 million [7] Market Outlook - The Zacks Industry Rank places the Internet - Services sector in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The company's Zacks Rank is currently 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Net revenue for Q2 2025 was $72.8 million, a decline of 14% year over year, but at the high end of the company's outlook range [18] - Adjusted EBITDA was $6.4 million, representing an adjusted EBITDA margin of 8.8%, significantly above expectations [22] - Gross margin improved to 67.5%, up 60 basis points from Q1, driven by strong performance in high-margin ads revenue [20] Business Line Data and Key Metrics Changes - Ticketing revenue declined by 10%, while Marketplace revenue significantly decreased due to the elimination of organizer fees [18] - Eventbrite ads grew by an impressive 50%, becoming a key growth driver for the company [18] - Paid ticket volume was $19.7 million, reflecting a 7% decline, but showed improvement with only a 1% decline year over year in July [18][19] Market Data and Key Metrics Changes - The recovery in paid creators and paid ticket volume showed significant improvement in July, with paid creators nearly flat year over year [6][7] - The company observed a faster return of small-scale creators compared to larger ones, impacting the average tickets sold per creator [19] Company Strategy and Development Direction - The company is focused on stabilizing its core ticketing business and advancing long-term strategies to enhance marketplace momentum [6][9] - New tools like Lineup for music organizers and enhanced Eventbrite ads are being developed to drive creator engagement and ticket sales [9][10] - The company is investing in consumer discovery tools and premium advertising to improve the overall user experience and drive growth [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery trajectory, citing positive trends in July and ongoing improvements in operational efficiency [6][35] - The company anticipates achieving monthly year-over-year growth in paid ticket volume by the end of the year, despite a mix shift impacting revenue outlook [29] - The outlook for Q3 is net revenue between $70 million and $73 million, with an adjusted EBITDA margin of approximately 7% [29] Other Important Information - The company secured a new $60 million term loan to strengthen its liquidity and plans to repurchase a significant portion of its convertible notes [23][24] - Operating expenses decreased by 16% year over year, marking the sixth consecutive quarter of reductions [21] Q&A Session Summary Question: What drove the acceleration in paid creators and paid ticket growth in July? - Management noted that the recovery is supported by positive behavior from creators and consumers, with paid ticket volume showing a sharp improvement [35] Question: Are there changes in the competitive landscape affecting the mix impact from creators? - Management indicated that there hasn't been a massive shift in the landscape, and Eventbrite remains well-positioned within the mid-market [39]

Q2 2025 Financial Results - Paid tickets were 197 million, a decrease of 7% year-over-year[12, 18, 19] - Gross ticket sales reached $755 million[12] - Net revenue totaled $728 million, down 14% year-over-year[14, 29, 31] - The net loss was $21 million, compared to a net income of $11 million in the prior year, but improved year-over-year excluding a one-time litigation settlement gain in Q2 2024[13, 33, 34] - Adjusted EBITDA was $64 million, with an Adjusted EBITDA margin of 88%[13, 36, 38] - Operating expenses decreased by 16% year-over-year to $554 million[40, 41] Operational Metrics - Paid creators numbered 1683K, a decrease of 5% year-over-year[15, 21, 22] - Average Monthly Active Users (MAUs) were 912 million, a decrease of 2% year-over-year[23, 25] Debt and Liquidity - Debt outstanding was $241 million, a 33% decrease year-over-year[46, 47, 114] - Available liquidity was $248 million, a $7 million increase from Q1 2025[49, 50, 114] 2025 Business Outlook - The company anticipates net revenue for Q3 2025 to be in the range of $70 million to $73 million with an Adjusted EBITDA margin of approximately 7%[52] - For fiscal year 2025, the company expects to achieve monthly year-over-year growth in paid ticket volume by the end of the year and updated the net revenue outlook range to $290 million to $296 million with an Adjusted EBITDA margin outlook of approximately 7%[53]