Core Insights - The U.S. macroeconomy is facing instability despite a strong rebound in stock markets, with various cautious signals emerging from companies [1] Group 1: Market Performance - Stock markets have rebounded sharply and are showing signs of rallying as the year-end approaches [1] Group 2: Economic Signals - There are numerous cautious signals from companies indicating that the underlying macroeconomic conditions may not be as strong as the stock market performance suggests [1] Group 3: Analyst Background - Gary Alexander has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into current industry themes [1]

Core Insights - Eventbrite has released new tools aimed at helping organizers sell more tickets and reach new audiences by enhancing event discovery [1] - The company introduced features that simplify planning and checkout processes, improving the overall attendee experience [1] - These innovations are particularly timely as organizers prepare for the busy holiday season, making it easier to meet demand and deliver exceptional live experiences [1]

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].

Financial Performance - Net revenue for Q3 2025 was $71.7 million, an 8% decline year-over-year, driven by the elimination of organizer fees[4] - Net income reached $6.4 million, a significant improvement of $10.1 million from a net loss of $3.8 million in the same period last year[4] - Adjusted EBITDA was $8.4 million with an Adjusted EBITDA margin of 11.7%, exceeding the company's guidance[4] - Net revenue for Q3 2025 was $71,743,000, a decrease of 8.3% from $77,801,000 in Q3 2024[15] - Gross profit for Q3 2025 was $48,714,000, down 8.8% from $53,258,000 in Q3 2024[15] - Total operating expenses in Q3 2025 were $49,616,000, a reduction of 20.2% compared to $62,210,000 in Q3 2024[15] - Net income for Q3 2025 was $6,369,000, compared to a net loss of $3,768,000 in Q3 2024[15] - Adjusted EBITDA for Q3 2025 was $8,416,000, an increase of 57.5% from $5,337,000 in Q3 2024[17] Revenue Outlook - For Q4 2025, the company expects net revenue between $71.5 million and $74.5 million, with an Adjusted EBITDA margin of approximately 8% to 9%[6] - The full-year revenue outlook for 2025 has been updated to a range of $290 million to $293 million, with an increased Adjusted EBITDA margin outlook of 8% to 9%[7] Operational Metrics - Paid ticket volume was 19.1 million, down 3% year-over-year, but improved by 400 basis points from the previous quarter[4] - The number of paid creators was 162,000, a decline of less than 1% year-over-year, also improving by 400 basis points from the previous quarter[4] - Eventbrite Ads revenue grew 38% year-over-year, indicating strong demand for advertising services[4] Cash Flow and Expenses - The company reported $12.6 million in lower operating expenses, contributing to the improved net income[4] - Cash flows from operating activities for the nine months ended September 30, 2025, were $78,550,000, slightly down from $80,856,000 in the same period of 2024[16] - The company reported a net cash increase of $46,146,000 for the nine months ended September 30, 2025, compared to $41,757,000 in 2024[16] - The company incurred $23,600,000 in stock-based compensation expense for the nine months ended September 30, 2025, down from $39,484,000 in 2024[16] Assets - Total assets as of September 30, 2025, were $744.6 million, a decrease from $752.3 million at the end of 2024[14] Share Information - The weighted-average number of diluted shares outstanding for Q3 2025 was 98,587,000, compared to 96,498,000 in Q3 2024[15] Adjusted EBITDA Definition - The company revised its definition of Adjusted EBITDA to include certain significant and non-recurring legal matters, aligning it with management's evaluation of core operating performance[20]

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]