Group 1: Company Overview - Eventbrite has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook for its earnings estimates [1][3] - The upgrade reflects an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4] Group 2: Earnings Estimates - For the fiscal year ending December 2024, Eventbrite is expected to earn -$0.12 per share, representing a 53.9% change from the previous year's reported number [8] - Over the past three months, the Zacks Consensus Estimate for Eventbrite has increased by 61.5% [8] Group 3: Market Implications - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Eventbrite's underlying business, which could lead to increased buying pressure and a higher stock price [5][10] - The Zacks Rank system, which categorizes stocks based on earnings estimate revisions, positions Eventbrite in the top 20% of Zacks-covered stocks, indicating potential for market-beating returns in the near term [9][10]

Core Viewpoint - Eventbrite (EB) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][3]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to stock price fluctuations based on their buying or selling activities [3]. Eventbrite's Earnings Outlook - The upgrade for Eventbrite reflects an improvement in its underlying business, with rising earnings estimates expected to drive the stock price higher [4]. - For the fiscal year ending December 2024, Eventbrite is projected to earn -$0.12 per share, representing a year-over-year change of 53.9% [7]. - Over the past three months, the Zacks Consensus Estimate for Eventbrite has increased by 89.8%, indicating a strong upward revision trend [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of Eventbrite to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Core Insights - Eventbrite (EB) shares have declined by 53.9% over the past 12 months, underperforming the Zacks Computer & Technology sector's growth of 29.4% and the Zacks Internet - Software industry's increase of 32.7% [1] - The company's financial struggles are attributed to declining user engagement, operational inefficiencies, and rising costs, compounded by increased competition in the event management and ticketing sectors [2][10] Financial Performance - The Zacks Consensus Estimate for Q1 2025 revenues is $77.19 million, reflecting a 10.5% year-over-year decline [12] - The expected loss for Q1 2025 is 5 cents per share, indicating breakeven performance compared to the previous year [12] - For the full year 2025, revenues are estimated at $339.64 million, suggesting a year-over-year growth of 4.58% [12] Growth Strategies - Eventbrite is optimistic about growth potential, focusing on expanding event inventory, with $4.5 million in new bookings in Q3 2024 [3] - The company aims to attract event creators, which is central to its growth strategy, leading to an increase in event listings and ticket sales [4] - A free-tier product was introduced to lower entry barriers for small creators, with over 10,000 creators using Eventbrite Ads monthly [7] User Engagement - In Q3 2024, Eventbrite reached 92 million active users, with 26 million making purchases, and successfully re-engaged over 750,000 former customers [8] - The platform hosted more than 1.4 million events, with 333,000 creators, including 82,000 new ones in Q3 2024 [5] - A redesigned mobile app is set to launch early next year, currently in beta testing, which is expected to enhance consumer engagement [9] Operational Challenges - The decline in paid creators indicates difficulties in retaining or attracting new ones, which may hinder consistent growth [10] - Sustaining long-term consumer engagement, especially among younger demographics, remains a challenge despite partnerships like TikTok [11]

Core Insights - Eventbrite (EB) shares have appreciated 17.5% in the past three months, outperforming the broader Zacks Computer & Technology sector's return of 11.5% due to growing adoption of the company's events platform and improved user experience [1] - However, there was a 5% year-over-year decline in net revenues to $77.8 million in Q3 2024, primarily due to a 14% drop in paid ticket volume to 19.7 million, indicating significant headwinds for the company [2] - Eventbrite's challenges have led to underperformance compared to the Zacks Internet - Services industry's growth of 18.4% during the same period [3] Company Strategy - Creator acquisition is a key strategy for Eventbrite's growth, focusing on attracting more event creators to drive increased event listings and ticket sales [4] - The launch of a free-tier product in September 2024 aims to lower entry barriers for smaller creators, facilitating user acquisition without significant initial costs [5] - Strategic pricing changes and platform enhancements have accelerated creator acquisition, with over 10,000 creators using Eventbrite Ads monthly [6] Market Expansion - Eventbrite has expanded its platform through acquisitions in over six countries, focusing on the U.S. and Argentina, with notable acquisitions including ToneDen, Picatic, and Ticketea [7] - The company is partnering with TikTok to connect with younger audiences, which has resulted in nearly 20% growth in users searching for local events [8] - Eventbrite targets 21-35 year olds, known as social scouts, who are likely to discover and attend events, creating a strong network [9] Performance Metrics - Eventbrite has over 93 million average monthly active users and 19.7 million paid ticket volumes, indicating a scaling marketplace [10] - Positive trends are observed in creator acquisition, event volume, and ticket transactions, with a returning creator base showing consistent patterns [11] Financial Outlook - For Q4 2024, Eventbrite expects net revenues between $74 million and $77 million, with a consensus estimate of $75.96 million, indicating a year-over-year decline of 13.45% [15] - The consensus estimate for Q4 2024 bottom line is a loss of 5 cents per share, indicating a wider loss compared to the previous year [16] - The Zacks Consensus Estimate for 2024 revenues is pegged at $324.20 million, implying a decline of 0.59% from the previous year [16][17]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Eventbrite (EB) as a strong candidate for value investors due to its favorable Zacks Rank and valuation metrics [1][2]. Valuation Metrics - Eventbrite has a P/B ratio of 2.12, which is significantly lower than the industry average of 5.93, indicating that it may be undervalued [3]. - The company's P/S ratio stands at 1.1, compared to the industry's average P/S of 1.97, further supporting the notion of undervaluation [4]. Investment Outlook - Given the strength of its earnings outlook and favorable valuation metrics, Eventbrite is positioned as one of the strongest value stocks in the market currently [5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Eventbrite (EB) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][3][6]. Valuation Metrics - Eventbrite has a Price-to-Book (P/B) ratio of 1.92, which is significantly lower than the industry average of 5.48, indicating that the stock may be undervalued [4]. - The stock's P/B ratio has fluctuated between a high of 4.90 and a low of 1.42 over the past 12 months, with a median of 2.77 [4]. - The Price-to-Sales (P/S) ratio for Eventbrite is 1.04, compared to the industry average of 1.48, further suggesting that the stock is undervalued [5]. Earnings Outlook - Eventbrite's strong earnings outlook, combined with its attractive valuation metrics, positions it as an impressive value stock at the moment [6].

Core Viewpoint - Eventbrite (EB) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook for its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system highlights the importance of earnings estimate revisions in determining stock price movements, as institutional investors often base their valuations on these estimates [3][5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell accordingly, which in turn affects the stock price [3]. Eventbrite's Earnings Outlook - Eventbrite is projected to earn -$0.20 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 23.1% [7]. - Over the past three months, the Zacks Consensus Estimate for Eventbrite has risen by 17.8%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - The upgrade of Eventbrite to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

| --- | --- | --- | --- | --- | |--------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | Q3 Investor Presentation November 7, 2024 | | | | | | | | | | | Disclaimer Regarding Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncert ...

Eventbrite, Inc. (NYSE:EB) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Katie Pickett - Investor Relations Julia Hartz - Co-Founder and Chief Executive Officer Lanny Baker - Chief Operating and Financial Officer Conference Call Participants Cameron Mansson-Perrone - Morgan Stanley Operator Good day, everyone, and welcome to the Eventbrite, Inc. Third Quarter 2024 Earnings Conference Call. [Operator instructions] It is now my pleasure to turn the floor over to your host, ...

Eventbrite (EB) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 69.23%. A quarter ago, it was expected that this company would post a loss of $0.06 per share when it actually produced earnings of $0.01, delivering a surprise of 116.67%.Over the last four quarters, the company has surpassed co ...