[Credit Agreement Overview](index=1&type=section&id=Credit%20Agreement%20Overview) This agreement outlines the parties, facility details, and purpose of the $60,000,000 Initial Term A Loan [Parties and Facility](index=1&type=section&id=Parties%20and%20Facility) Details the parties involved, the $60,000,000 Initial Term A Loan facility, and its intended use for transactions and balance sheet funding Credit Facility Details | Item | Detail | | :--- | :--- | | **Borrower** | Eventbrite, Inc. | | **Administrative Agent** | Silicon Valley Bank, a division of First-Citizens Bank & Trust Company | | **Joint Lead Arrangers** | Morgan Stanley Senior Funding, Inc., Silicon Valley Bank, Axos Bank | | **Facility Type** | Initial Term A Loans | | **Aggregate Principal Amount** | $60,000,000 | | **Use of Proceeds** | To consummate the Transactions, pay related costs and expenses, and fund cash to the Borrower's balance sheet | [ARTICLE 1: Definitions and Accounting Terms](index=8&type=section&id=ARTICLE%201%3A%20Definitions%20and%20Accounting%20Terms) This article defines key terms and establishes accounting principles for interpreting the credit agreement [Defined Terms](index=8&type=section&id=Section%201.01%20Defined%20Terms) Provides comprehensive definitions for all capitalized terms, including financial metrics, legal concepts, and operational terms governing the agreement Applicable Interest Rate Margins for Initial Term A Loans (Post-First Anniversary) | Pricing Level | Consolidated Net Total Leverage Ratio | Term SOFR Margin | Base Rate Margin | | :--- | :--- | :--- | :--- | | 1 | > 0.50x | 2.50% | 1.50% | | 2 | < 0.50x | 2.25% | 1.25% | - A "Change of Control" is triggered if any person or group (other than Permitted Holders) acquires beneficial ownership of **50% or more** of the Borrower's Voting Equity Interests or obtains the power to elect a majority of the board[71](index=71&type=chunk) - The "Collateral and Guarantee Requirement" outlines assets excluded from collateral obligations ("Excluded Assets"), including leased real property, motor vehicles, certain commercial tort claims under **$2.5 million**, and assets where pledging would cause material adverse tax consequences[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - The "Closing Date" is defined as **August 6, 2025**[75](index=75&type=chunk) [Other Interpretive & Accounting Provisions](index=79&type=section&id=Section%201.02-1.09%20Other%20Interpretive%20%26%20Accounting%20Provisions) Establishes rules for interpreting the agreement, construing accounting terms, calculating financial ratios, and handling interest rate calculations - All accounting terms are to be construed in conformity with GAAP, with parties agreeing to negotiate amendments if GAAP changes materially affect a provision to preserve original intent[322](index=322&type=chunk)[324](index=324&type=chunk) - Financial ratios and tests related to any "Specified Transaction" (e.g., acquisitions, dispositions, incurrence of debt) must be calculated on a **Pro Forma Basis**, as if the transaction occurred on the first day of the measurement period[317](index=317&type=chunk) [ARTICLE 2: The Commitments and Credit Extensions](index=83&type=section&id=ARTICLE%202%3A%20The%20Commitments%20and%20Credit%20Extensions) This article details loan commitments, borrowing procedures, repayment terms, and provisions for debt modifications and defaulting lenders [Loan Commitments and Borrowing Procedures](index=83&type=section&id=Section%202.01-2.04%20Loan%20Commitments%20and%20Borrowing%20Procedures) Outlines lenders' commitment to the $60,000,000 Initial Term A Loan and procedures for borrowing, converting, and continuing loans - Each Term A Lender severally agrees to make a loan on the Closing Date up to its Initial Term A Commitment, with amounts borrowed and repaid under this section not reborrowable[333](index=333&type=chunk) - Borrowings, conversions, or continuations of SOFR Loans require **three business days' notice**, while Base Rate Loans require **one business day's notice**, with a maximum of **seven active Interest Periods** (plus three for each new class of loans)[334](index=334&type=chunk)[339](index=339&type=chunk) [Prepayments, Commitment Reductions, and Repayment](index=85&type=section&id=Section%202.05-2.07%20Prepayments%2C%20Commitment%20Reductions%2C%20and%20Repayment) Specifies terms for voluntary and mandatory loan prepayments, commitment reductions, and the scheduled amortization of Term A Loans - The Borrower may voluntarily prepay Term Loans in whole or in part at any time without premium or penalty, subject to notice requirements[341](index=341&type=chunk) - Mandatory prepayments are required with **100% of the Net Proceeds** from certain asset dispositions, casualty events, and the incurrence of non-permitted indebtedness, with Lenders having the right to decline their pro-rata share[345](index=345&type=chunk)[346](index=346&type=chunk)[350](index=350&type=chunk) Term A Loan Amortization Schedule | Payment Dates | Quarterly Installment (% of Initial Principal) | | :--- | :--- | | Nov 2025 - Aug 2026 | 1.25% | | Nov 2026 - Aug 2028 | 2.50% | | Nov 2028 - May 2029 | 25.00% | | **Maturity Date** | **Remaining Principal** | [Interest, Fees, and Payments](index=90&type=section&id=Section%202.08-2.13%20Interest%2C%20Fees%2C%20and%20Payments) Details the calculation and payment of interest based on SOFR or Base Rate, applicable fees, and general payment mechanics - SOFR Loans bear interest at Term SOFR plus the Applicable Rate, while Base Rate Loans bear interest at the Base Rate plus the Applicable Rate[361](index=361&type=chunk) - An Upfront Fee of **0.50%** of the aggregate principal amount of the Term A Loans is due and payable on the Closing Date[364](index=364&type=chunk) - If any lender receives a payment in excess of its ratable share, it must purchase participations from other lenders to ensure pro-rata sharing of the payment[379](index=379&type=chunk) [Incremental Debt, Refinancing, Extensions, and Defaulting Lenders](index=94&type=section&id=Section%202.14-2.17%20Incremental%20Debt%2C%20Refinancing%2C%20Extensions%2C%20and%20Defaulting%20Lenders) Provides flexibility for the Borrower to modify debt structure through incremental facilities, refinancing, extensions, and addresses defaulting lenders - The Borrower may request new Incremental Commitments not to exceed the "Available Incremental Amount," which is the sum of a **$15,000,000** "Incremental Base Amount" plus amounts from voluntary prepayments and an additional amount subject to meeting a pro forma leverage ratio test[173](index=173&type=chunk)[381](index=381&type=chunk)[387](index=387&type=chunk) - The Borrower may request to extend the maturity date of existing Term Loans or Revolving Credit Commitments through an "Extension Amendment" with the consent of only the extending lenders[402](index=402&type=chunk)[404](index=404&type=chunk)[408](index=408&type=chunk) - A "Defaulting Lender" (one who fails to fund its obligations) has its voting rights restricted and its payments may be reallocated to cover its funding shortfalls or other obligations[116](index=116&type=chunk)[411](index=411&type=chunk)[412](index=412&type=chunk) [ARTICLE 3: Taxes, Increased Costs Protection and Illegality](index=104&type=section&id=ARTICLE%203%3A%20Taxes%2C%20Increased%20Costs%20Protection%20and%20Illegality) Addresses financial contingencies like tax withholdings, increased costs due to law changes, benchmark rate issues, and lender replacement rights [Taxes, Costs, and Contingencies](index=104&type=section&id=Section%203.01-3.08%20Taxes%2C%20Costs%2C%20and%20Contingencies) Covers tax withholdings, compensation for increased lender costs, benchmark rate replacement, and the Borrower's right to replace certain lenders - All payments by the Borrower must be made free of deductions for Taxes, with the Borrower paying additional amounts if withholding is required to ensure the Lender receives the full sum[416](index=416&type=chunk) - If a change in law makes it unlawful for a Lender to maintain SOFR Loans, the Lender's obligation is suspended, and the Borrower must prepay or convert the affected loans to Base Rate Loans[431](index=431&type=chunk) - The agreement includes a benchmark replacement mechanism to handle a "Benchmark Transition Event," allowing the Administrative Agent to replace the current benchmark (e.g., Term SOFR) with an alternative like Daily Simple SOFR or another market-accepted rate[50](index=50&type=chunk)[435](index=435&type=chunk) - The Borrower must compensate Lenders for increased costs or reduced returns resulting from changes in law or capital adequacy rules (e.g., Basel III, Dodd-Frank Act) after the Closing Date[440](index=440&type=chunk)[441](index=441&type=chunk) - The Borrower has the right to replace any Lender that requests compensation for increased costs or taxes, becomes a Defaulting Lender, or is a Non-Consenting Lender to a proposed amendment[455](index=455&type=chunk) [ARTICLE 4: Conditions Precedent to Credit Extensions](index=115&type=section&id=ARTICLE%204%3A%20Conditions%20Precedent%20to%20Credit%20Extensions) Specifies conditions required for loan funding, including extensive documentation for the initial closing and ongoing requirements for subsequent borrowings [Conditions to Credit Extensions](index=115&type=section&id=Section%204.01-4.02%20Conditions%20to%20Credit%20Extensions) Outlines documentation required for initial funding on the Closing Date and ongoing conditions for all subsequent credit extensions - Conditions for the initial Closing Date funding include receipt of executed Loan Documents, Collateral Documents, legal opinions, a solvency certificate, and payment of all fees[460](index=460&type=chunk)[461](index=461&type=chunk)[463](index=463&type=chunk) - The Borrower must provide all necessary documentation for "know your customer" and anti-money laundering regulations, including the USA PATRIOT Act and a Beneficial Ownership Certification, at least **3 business days** prior to the Closing Date[464](index=464&type=chunk) - For all credit extensions after the Closing Date, the Borrower's representations and warranties must be true and correct in all material respects, and no Default or Event of Default must exist[468](index=468&type=chunk)[469](index=469&type=chunk) [ARTICLE 5: Representations and Warranties](index=118&type=section&id=ARTICLE%205%3A%20Representations%20and%20Warranties) Contains the Borrower's key assurances to lenders regarding legal status, financial condition, compliance, property, solvency, and security interests [Representations and Warranties](index=118&type=section&id=Section%205.01-5.23%20Representations%20and%20Warranties) Covers the Borrower's legal status, financial condition, compliance with laws, property ownership, solvency, and validity of security interests - The Borrower represents that its financial statements fairly present its financial condition in all material respects and that no Material Adverse Effect has occurred since the Closing Date[477](index=477&type=chunk)[479](index=479&type=chunk) - The Borrower confirms it is not engaged in the business of extending credit for purchasing or carrying Margin Stock in violation of Regulation U, and it is not required to be registered as an "investment company"[491](index=491&type=chunk)[492](index=492&type=chunk) - On the Closing Date, after giving effect to the Transactions, the Borrower and its subsidiaries are represented to be **Solvent** on a consolidated basis[498](index=498&type=chunk) - The Borrower represents that neither it nor its subsidiaries, directors, officers, or employees are in violation of AML Laws, Sanctions, Anti-Corruption Laws, or Export Controls, and that no proceeds will be used in violation of these laws[499](index=499&type=chunk)[502](index=502&type=chunk) - The Borrower represents that the proceeds of the Term A Loans will be used for the Transactions, general corporate purposes, and to fund cash to its balance sheet[509](index=509&type=chunk) [ARTICLE 6: Affirmative Covenants](index=125&type=section&id=ARTICLE%206%3A%20Affirmative%20Covenants) Sets forth ongoing actions the Borrower must take, including financial reporting, compliance, tax payments, and maintaining corporate existence and insurance [Affirmative Covenants](index=125&type=section&id=Section%206.01-6.19%20Affirmative%20Covenants) Details obligations such as financial reporting, compliance certificates, default notices, maintaining corporate existence, and adding new guarantors - **Financial Reporting:** The Borrower must deliver audited annual financial statements within **90 days** of fiscal year-end and unaudited quarterly statements within **45 days** of each quarter-end[515](index=515&type=chunk) - **Compliance Certificate:** A Compliance Certificate, including calculations for Liquidity, Consolidated Net Total Leverage Ratio, and Consolidated Fixed Charge Coverage Ratio, must be delivered with each set of financial statements[519](index=519&type=chunk) - **Notice of Default:** The Borrower must promptly notify the Administrative Agent of any Default or Event of Default[523](index=523&type=chunk) - **Additional Guarantors:** New wholly-owned domestic subsidiaries (unless excluded) must become Guarantors and provide collateral within **75 days** of their formation or acquisition[536](index=536&type=chunk) - **Post-Closing Actions:** The Borrower must complete specific actions and deliver documents as outlined in Schedule 6.15 within the specified timeframes after the Closing Date[543](index=543&type=chunk)[544](index=544&type=chunk) [ARTICLE 7: Negative Covenants](index=134&type=section&id=ARTICLE%207%3A%20Negative%20Covenants) Details restrictions on the Borrower's activities, including limits on liens, indebtedness, investments, asset dispositions, and restricted payments [Core Negative Covenants (Liens, Indebtedness, Investments, Dispositions, etc.)](index=134&type=section&id=Section%207.01-7.08%20Core%20Negative%20Covenants) Restricts liens, new debt, investments, asset sales, mergers, and restricted payments, each with specific exceptions and baskets - **Liens (7.01):** Prohibits creating liens on assets, subject to permitted exceptions including liens securing the Loan Documents, existing liens, and certain tax and statutory liens[550](index=550&type=chunk) - **Investments (7.02):** Restricts investments but permits acquisitions if the pro forma Consolidated Net Total Leverage Ratio is no greater than the Financial Covenant TNLR Threshold, among other exceptions[557](index=557&type=chunk)[558](index=558&type=chunk) - **Indebtedness (7.03):** Limits incurring new debt, with exceptions for debt under the Loan Documents, existing debt, intercompany debt, and certain other debt up to specified baskets, including a basket tied to a leverage ratio test[562](index=562&type=chunk)[564](index=564&type=chunk) - **Dispositions (7.05):** Restricts asset sales but allows for dispositions of obsolete assets, sales in the ordinary course, and other sales provided that at least **75%** of the consideration is cash or Cash Equivalents[570](index=570&type=chunk)[571](index=571&type=chunk) - **Restricted Payments (7.06):** Limits dividends and share repurchases, but permits repurchases up to **$15 million**, plus an additional **$35 million** subject to maintaining minimum liquidity of **$50 million**[577](index=577&type=chunk) [Financial Covenants](index=152&type=section&id=Section%207.09%20Financial%20Covenants) Establishes key financial maintenance tests, including maximum leverage ratio, minimum fixed charge coverage ratio, and minimum LTM revenue Maximum Consolidated Net Total Leverage Ratio | Period | Maximum Ratio | | :--- | :--- | | Closing Date - Dec 31, 2025 | 3.25 to 1.00 | | Jan 1, 2026 - Mar 31, 2026 | 3.00 to 1.00 | | Apr 1, 2026 - Jun 30, 2026 | 2.75 to 1.00 | | Jul 1, 2026 - Sep 30, 2026 | 2.50 to 1.00 | | Oct 1, 2026 - Dec 31, 2026 | 2.25 to 1.00 | | Thereafter | 2.00 to 1.00 | - **Minimum Consolidated Fixed Charge Coverage Ratio:** Must be no less than **1.10 to 1.00**, tested quarterly starting December 31, 2025[584](index=584&type=chunk) - **Minimum LTM Revenue:** Must be no less than **$270,000,000**, tested quarterly starting December 31, 2025[585](index=585&type=chunk) [Other Negative Covenants](index=153&type=section&id=Section%207.10-7.11%20Other%20Negative%20Covenants) Imposes further restrictions on prepaying junior debt and prohibits using loan proceeds for unlawful purposes or sanctioned parties - The Borrower is restricted from voluntarily prepaying, redeeming, or purchasing any Junior Financing, except in connection with a Permitted Refinancing or the conversion of such debt into equity[587](index=587&type=chunk) - The Borrower and its subsidiaries are prohibited from using loan proceeds to fund any activity involving or benefiting a Restricted Party in violation of Sanctions, or in any manner that would cause any party to breach Sanctions or Export Controls[590](index=590&type=chunk)[593](index=593&type=chunk) [ARTICLE 8: Events of Default and Remedies](index=154&type=section&id=ARTICLE%208%3A%20Events%20of%20Default%20and%20Remedies) Defines events triggering default and outlines remedies available to lenders, including acceleration of obligations and fund application [Events of Default and Remedies](index=154&type=section&id=Section%208.01-8.04%20Events%20of%20Default%20and%20Remedies) Defines default events like non-payment, covenant breaches, and change of control, and outlines lender remedies including loan acceleration - **Events of Default include:** - **Non-Payment:** Failure to pay principal when due, or interest/other amounts within **5 business days** of the due date[296](index=296&type=chunk)[595](index=595&type=chunk)[596](index=596&type=chunk) - **Covenant Breach:** Failure to comply with negative covenants (Article 7) or certain affirmative covenants - **Cross-Default:** Default on other indebtedness exceeding the Threshold Amount (**$10,000,000**)[296](index=296&type=chunk) - **Insolvency:** Bankruptcy, receivership, or similar proceedings - **Change of Control:** Occurrence of a Change of Control - **Remedies:** Upon an Event of Default, the Administrative Agent (at the request of Required Lenders) can terminate commitments and declare all outstanding Loans and other Obligations immediately due and payable[599](index=599&type=chunk)[600](index=600&type=chunk) - **Application of Funds:** After acceleration, any collected funds are applied in a specific order (the "waterfall"): first to Agent fees/expenses, then Lender fees/expenses, then accrued interest, then principal, and finally to other Obligations[602](index=602&type=chunk) [ARTICLE 9: Administrative Agent and Other Agents](index=158&type=section&id=ARTICLE%209%3A%20Administrative%20Agent%20and%20Other%20Agents) Establishes the Administrative Agent's role, authority, protections, and procedures for resignation, replacement, and collateral matters [Agent Roles, Rights, and Protections](index=158&type=section&id=Section%209.01-9.16%20Agent%20Roles%2C%20Rights%2C%20and%20Protections) Clarifies the Agent's administrative role, protections from liability, indemnification rights, and procedures for resignation and collateral release - Each Lender irrevocably appoints SVB as Administrative Agent and Collateral Agent to act on its behalf[607](index=607&type=chunk) - The Agent is not liable for any action taken or omitted, except for its own gross negligence or willful misconduct, and has no duty to ascertain covenant performance or representation accuracy[612](index=612&type=chunk)[613](index=613&type=chunk) - The Agent may resign upon **30 days' notice**, and a successor agent must be appointed by the Required Lenders, subject to the Borrower's consent (unless an Event of Default exists)[621](index=621&type=chunk) - The Collateral Agent is authorized to automatically release liens on collateral that is sold in a permitted disposition or when a Guarantor is released from its obligations as permitted by the agreement[628](index=628&type=chunk) - The agreement includes detailed procedures for the recovery of "Erroneous Payments" made by the Administrative Agent to any Lender, establishing that such funds remain the property of the Agent and must be returned promptly upon demand[641](index=641&type=chunk)[642](index=642&type=chunk) [ARTICLE 10: Miscellaneous](index=172&type=section&id=ARTICLE%2010%3A%20Miscellaneous) Contains standard legal clauses for amendments, notices, indemnification, assignments, governing law, and waiver of jury trial [Miscellaneous Provisions](index=172&type=section&id=Section%2010.01-10.25%20Miscellaneous%20Provisions) Covers amendments, notices, indemnification, assignments, confidentiality, New York governing law, and a mutual jury trial waiver - **Amendments (10.01):** Amendments generally require the consent of the Required Lenders and the Borrower, but certain fundamental changes require the consent of each affected Lender[656](index=656&type=chunk) - **Indemnification (10.05):** The Borrower agrees to indemnify the Agents, Arrangers, and Lenders from all liabilities and expenses arising in connection with the Loan Documents, except those resulting from the indemnitee's own gross negligence, bad faith, or willful misconduct[673](index=673&type=chunk) - **Assignments (10.07):** Lenders may assign their loans and commitments to other Eligible Assignees, subject to the consent of the Borrower and Administrative Agent (unless an Event of Default exists or the assignee is another Lender or affiliate), with assignments to Disqualified Lenders restricted[677](index=677&type=chunk)[682](index=682&type=chunk) - **Governing Law and Jurisdiction (10.15):** The agreement is governed by the law of the State of New York, and the parties consent to the exclusive jurisdiction of New York state and federal courts[709](index=709&type=chunk)[710](index=710&type=chunk) - **Jury Trial Waiver (10.16):** All parties to the agreement expressly waive their right to a trial by jury for any claim or action arising under the Loan Documents[711](index=711&type=chunk) [ARTICLE 11: Guaranty](index=196&type=section&id=ARTICLE%2011%3A%20Guaranty) Details the unconditional and irrevocable guarantee provided by Guarantors for all Guaranteed Obligations, including release conditions [Guaranty Provisions](index=196&type=section&id=Section%2011.01-11.13%20Guaranty%20Provisions) Outlines the joint and several, unconditional guarantee by Guarantors for all obligations, and conditions for automatic release - Each Guarantor provides a joint and several guarantee for the prompt payment in full of all Guaranteed Obligations, acting as a primary obligor and not merely as a surety[731](index=731&type=chunk) - The obligations of the Guarantors are absolute and unconditional, irrespective of the validity or enforceability of the underlying obligations or any other circumstance that might otherwise constitute a legal or equitable discharge[732](index=732&type=chunk) - A Guarantor is automatically released from its obligations if it is sold or otherwise ceases to be a Restricted Subsidiary in a transaction permitted by the agreement, provided it is not also a guarantor of any other material Junior Financing[743](index=743&type=chunk) [Schedules and Exhibits](index=7&type=section&id=Schedules%20and%20Exhibits) Lists various schedules providing specific details and exhibits serving as templates for required legal forms [Schedules and Exhibits List](index=7&type=section&id=Schedules%20and%20Exhibits%20List) Provides a list of schedules detailing specific agreement information and exhibits serving as templates for legal forms - **Schedules:** Key schedules include 1.01A (Commitments), 7.01(b) (Existing Liens), 7.03(b) (Existing Indebtedness), and 6.15 (Post-Closing Covenants)[19](index=19&type=chunk) - **Exhibits:** Key exhibits provide forms for A (Committed Loan Notice), E-1 (Compliance Certificate), F (Assignment and Assumption), and G (Security Agreement)[20](index=20&type=chunk)

Core Viewpoint - Eventbrite (EB) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - For Eventbrite, the recent upgrade suggests an improvement in the company's underlying business, likely leading to increased stock prices as investors respond to this trend [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Eventbrite is expected to earn -$0.27 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 6.4% over the past three months [8]. - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior potential for market-beating returns [9][10].

Eventbrite (EB) FY Conference Summary Company Overview - Eventbrite is a leading ticketing platform aiming to evolve into a marketplace for experiences, leveraging two decades of experience in cultivating relationships on both supply and demand sides [4][5][6]. Core Points and Arguments Marketplace Transformation - The transition to a marketplace is seen as a natural progression for Eventbrite, with significant upside potential due to existing strong brand recognition and traffic of 90 million unique users [4][5]. - The relaunch of the brand and app is expected to drive user engagement and demand generation, enhancing the platform's ability to serve creators [5][6][14]. Competitive Landscape - Eventbrite holds approximately 14% of the $28 billion global mid-market events gross bookings, with a fragmented competitive landscape where no single competitor dominates [16][19]. - The company is positioned as the second most trafficked site after Ticketmaster, indicating strong market presence [20]. Industry Growth - The live experiences market is expected to continue growing, driven by increasing consumer interest in human connection and live events [17][18]. - The company anticipates that the market will benefit from tailwinds, suggesting a positive outlook for growth [18]. Financial Discipline and Cost Management - Eventbrite is focused on maintaining operational discipline and controlling expenses, with a goal to return to growth without relying heavily on performance marketing [10][12][55]. - The company aims to grow revenue faster than operating expenses, with a focus on margin expansion through efficient cost management [56]. Revenue Components - Marketplace revenue, which currently makes up about 8% of total revenue, includes premium subscription services and advertising, with advertising expected to become the largest component over time [36][37]. - The take rate is expected to increase as the company grows volume and market share, although the timing and extent of this increase will be carefully managed to maintain positive relationships with creators [47][48]. Creator Engagement and Recovery - The company experienced a loss of creators due to the introduction of organizer fees, which have since been reversed. Efforts are underway to win back lost creators through product enhancements and targeted outreach [25][26][27][30]. - The sales team is expected to play a crucial role in re-engaging creators and driving growth in paid ticket volume [34][35]. Capital Allocation and Financial Position - Eventbrite has $551 million in cash, with $241 million available for liquidity after accounting for creator payables. The company is positioned to manage its debt effectively while exploring non-dilutive financing options [58][60][62]. - The focus is on balancing the cost of debt with the flexibility it provides, with potential share buybacks considered once financial stability is demonstrated [62][63]. Other Important Insights - The company is optimistic about the potential for increased awareness and interest in live experiences, particularly with competitors like Airbnb entering the space, which could benefit Eventbrite [24]. - The emphasis on community features and user engagement within the app is seen as critical for driving demand and enhancing the overall user experience [14][15]. This summary encapsulates the key points discussed during the Eventbrite FY Conference, highlighting the company's strategic direction, market positioning, and financial outlook.

Group 1 - Eventbrite reported a quarterly loss of $0.07 per share, which was better than the Zacks Consensus Estimate of a loss of $0.08, but worse than the loss of $0.05 per share a year ago, indicating an earnings surprise of 12.50% [1] - The company posted revenues of $73.83 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.90%, but down from $86.25 million in the same quarter last year [2] - Eventbrite shares have declined approximately 35.1% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] Group 2 - The earnings outlook for Eventbrite is mixed, with the current consensus EPS estimate for the coming quarter at -$0.07 on revenues of $73.39 million, and -$0.28 on revenues of $300.92 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the Internet - Services sector is currently in the bottom 40% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $73.8 million, which is at the high end of the guidance range and represents a 14% year-over-year decline primarily due to the elimination of organizer fees [6][20] - Adjusted EBITDA was $4.6 million, reflecting a margin of 6.2%, marking the fifteenth consecutive quarter of positive adjusted EBITDA [6][23] - Operating expenses decreased by 14% year-over-year to $59 million, the lowest since 2022, indicating a focus on expense discipline [14][22] Business Line Data and Key Metrics Changes - Paid ticket volume was down 7.7% year-over-year, but showed improvement compared to previous quarters, which were down 10% and 13.6% [7][20] - Eventbrite Ads revenue increased by 30% year-over-year, indicating strong performance in this segment [12][20] - The Timed Entry solution continues to gain traction, contributing to the overall growth strategy [10][39] Market Data and Key Metrics Changes - Total average monthly app users increased by 13% year-over-year, with Discovery users rising by 16% [9] - The company is focusing on high-intent categories such as music, food and drink, and performing arts, which are expected to drive further growth [43] Company Strategy and Development Direction - The company aims to reintroduce Eventbrite as a platform for discovering live experiences, not just ticketing, through a new app and brand campaign [8] - There is a strong emphasis on improving user engagement and conversion rates through app enhancements and strategic partnerships, such as with TikTok [31][56] - The focus on high-quality creators and events is seen as a key driver for future growth, with a strategy to educate creators on optimizing their event listings [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery trajectory, with expectations for returning to paid ticket volume growth in the second half of the year [15][19] - The company is monitoring macroeconomic conditions but believes it has resilience due to its pricing model and the nature of its services [58] Other Important Information - The company announced changes in its executive team, with key leadership transitions that are expected to maintain operational continuity [16][18] - Liquidity remains strong, with $550 million in cash and $240 million in available liquidity, up from $230 million at year-end [15][24] Q&A Session Summary Question: Is the shift to more app-based MAUs an intentional strategy? - Management confirmed that the focus on app-based users is intentional, as app users show higher retention and engagement compared to web users [30] Question: What is the outlook for stock-based compensation? - The CFO indicated that the current stock-based compensation is a good run rate for the remainder of the year, with potential improvements [33] Question: What is driving the growth in Eventbrite Ads? - Management highlighted that Eventbrite Ads is integrated into the marketplace and is performance-driven, leading to a 30% year-over-year growth [36] Question: What is the performance of the Eventbrite app in terms of event categories? - Management noted strong growth in categories where they executed their strategy, particularly in music and performing arts [43] Question: What are the expectations for timed entry events? - Management stated that timed entry expands the addressable market, focusing on attractions and experiences that occur frequently [44] Question: How is the TikTok partnership performing? - Management mentioned that social sharing tools for creators are crucial for driving demand, with TikTok being a significant platform for this strategy [46] Question: What is the philosophy behind the app redesign? - The redesign aims to make Eventbrite the easiest place to find live experiences, enhancing user engagement and conversion to ticket sales [56]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $73.8 million, at the high end of guidance, but down 14% year over year primarily due to the elimination of organizer fees [5][19] - Adjusted EBITDA was $4.6 million, representing a margin of 6.2%, marking the fifteenth consecutive quarter of positive adjusted EBITDA [22] - Operating expenses decreased by 14% year over year to $59 million, the lowest since 2022, reflecting ongoing expense discipline [13][21] Business Line Data and Key Metrics Changes - Paid ticket volume was down 7.7% year over year, showing improvement from previous quarters where declines were 10% and 13.6% [6][19] - Eventbrite Ads revenue increased by 30% year over year, indicating strong adoption and effectiveness among creators [11][34] Market Data and Key Metrics Changes - Total average monthly app users increased by 13% year over year, with discovery users rising by 16% [8][30] - The company is focusing on improving event matching to enhance user experience and engagement across its platform [9] Company Strategy and Development Direction - The company aims to reintroduce Eventbrite as a destination for live experiences, not just ticketing, through a new app and brand campaign [7] - There is a strategic focus on high-intent users and enhancing the app experience to drive ticket sales and creator engagement [29][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to paid ticket volume growth in the second half of the year, despite ongoing challenges from last year's organizer fee reversal [6][14] - The company is monitoring macroeconomic conditions but believes it has resilience due to its pricing model and the nature of its services [57][58] Other Important Information - The company announced changes in its executive team, with key leadership transitions that are expected to maintain operational continuity [15][16] - The liquidity position remains strong with $550 million in cash and $240 million in available liquidity, up from $230 million at year-end [14][23] Q&A Session Summary Question: Is the shift to more app-based MAUs an intentional strategy? - Management confirmed that the focus on app users is intentional, as app users are more engaged and likely to purchase tickets compared to web users [28][30] Question: What is the outlook for stock-based compensation? - Management indicated that the Q1 stock-based compensation is a good run rate for the remainder of the year, with potential improvements [32] Question: What is driving the growth in Eventbrite Ads? - The growth is attributed to the ads being native to the marketplace and performance-driven, with ongoing education for creators on effective usage [34][36] Question: What is the performance of the Eventbrite app in terms of event categories? - Management noted strong growth in categories where they executed their strategy, particularly in music, food and drink, and performing arts [41] Question: What is the strategy for increasing paid creator accounts? - Management highlighted that while the overall number of paid creators is recovering slowly, there is growth in high-quality segments that are more monetizable [48][50] Question: What is the philosophy behind the app redesign? - The redesign aims to enhance user engagement and conversion to ticket sales, making Eventbrite the easiest place to find live experiences [55] Question: Is there an impact from macro conditions on the full-year outlook? - Management stated that they are not currently seeing clear impacts from macro pressures but are monitoring the situation closely [57][58]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $73.8 million, which is at the high end of the guidance range and represents a 14% year-over-year decline primarily due to the elimination of organizer fees [6][20] - Adjusted EBITDA was $4.6 million, reflecting a margin of 6.2%, marking the fifteenth consecutive quarter of positive adjusted EBITDA [6][23] - Operating expenses decreased by 14% year-over-year to $59 million, the lowest since 2022, indicating a focus on expense discipline [15][22] Business Line Data and Key Metrics Changes - Paid ticket volume was down 7.7% year-over-year, showing improvement from previous quarters where declines were 10% and 13.6% [7][20] - Eventbrite Ads revenue increased by 30% year-over-year, demonstrating strong performance and adoption among creators [13][20] Market Data and Key Metrics Changes - Total average monthly app users increased by 13% year-over-year, with discovery users rising by 16% [10][20] - The company is focusing on improving event matching within its marketplace to enhance user experience and engagement [11] Company Strategy and Development Direction - The company aims to reintroduce Eventbrite as a platform for discovering live experiences, not just ticketing, through a new app and brand campaign [8] - There is a strategic focus on enhancing the consumer app experience, which is expected to drive higher engagement and ticket sales [30][60] - The introduction of timed entry capabilities is seen as a significant opportunity for growth, expanding the addressable market [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery trajectory, reaffirming the full-year financial outlook despite macroeconomic uncertainties [19][61] - The company is monitoring market sentiment closely but believes it has resilience due to its pricing structure and the nature of its offerings [61][62] Other Important Information - The company announced changes in its executive team, with key leadership transitions that are expected to maintain operational continuity [17] - The liquidity position remains strong, with $550 million in cash and $240 million in available liquidity, up from $230 million at year-end [16][24] Q&A Session Summary Question: Is the shift to more app-based MAUs an intentional strategy? - Management confirmed that the focus on app-based users is intentional, as app users show higher engagement and conversion rates compared to web users [30] Question: What is supporting the growth in Eventbrite Ads? - The growth is attributed to the native integration of ads within the marketplace, which is performance-driven and creator-led, indicating strong product-market fit [36] Question: What is the strategy for increasing paid creator accounts? - While the overall number of paid creators is recovering slowly, there is growth in high-quality segments, particularly among large and frequent creators [52] Question: What are the goals of the app redesign? - The redesign aims to enhance user engagement and conversion to ticket sales, making Eventbrite the go-to platform for discovering live experiences [60] Question: How is the company addressing macroeconomic conditions? - Management noted that they are not currently seeing significant impacts from macro pressures and believe their business model offers resilience [61][62]

Q1 2025 Results - Paid tickets reached 19.6 million, a 7.7% year-over-year decrease, showing a 250 basis points improvement from Q4 2024's 10.2% decline[19] - Gross ticket sales totaled $775 million, down 9% year-over-year[11] - Net revenue was $73.8 million, a 14% decrease year-over-year, attributed to lower marketplace revenue (-48% Y/Y) and ticketing revenue (-9% Y/Y)[27] - Net loss amounted to $6.6 million, compared to a $4.5 million net loss in the prior year[31] - Adjusted EBITDA was $4.6 million, with an Adjusted EBITDA margin of 6.2%[34] - Operating expenses decreased by 14% year-over-year to $59.2 million[37] User Engagement - Average Monthly Active Users (MAUs) reached 87.6 million, a 3% year-over-year increase, driven by app MAUs growth after the rebrand and app refresh[23] - Average app monthly active users increased 13% year-over-year[21] Financial Position - Available liquidity stood at $241 million after repaying $120 million principal of 2025 notes[43, 42] - Total debt outstanding is $358 million[42] - Stock-based compensation decreased by 27% year-over-year[40] Business Outlook - The company anticipates Q2 2025 net revenue to be in the range of $70 million to $73 million with an Adjusted EBITDA margin in the 3% to 4% range[46] - The company expects fiscal year 2025 net revenue in the range of $295 million to $310 million with an Adjusted EBITDA margin in the mid-single digit percentage range[47]

PART I. FINANCIAL INFORMATION [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, show a decrease in net revenue and an increase in net loss compared to the same period in 2024 - The company operates a two-sided marketplace connecting event creators and consumers. It has determined it operates as a single operating segment, with performance assessed on a consolidated basis by the CEO[23](index=23&type=chunk)[33](index=33&type=chunk) - The company revised its prior period condensed consolidated statement of cash flows for Q1 2024 to correct an error related to foreign currency exchange, which was deemed not material to previously reported periods[28](index=28&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $812.3 million, an increase from $752.3 million at year-end 2024, driven by a rise in cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $502,911 | $416,531 | | Total current assets | $615,370 | $552,496 | | Total assets | $812,283 | $752,301 | | **Liabilities & Equity** | | | | Accounts payable, creators | $352,445 | $300,174 | | Total current liabilities | $422,964 | $366,373 | | Total liabilities | $639,029 | $582,072 | | Total stockholders' equity | $173,254 | $170,229 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, Eventbrite reported a net revenue of $73.8 million, a 14.4% decrease from $86.3 million in the prior-year period Q1 2025 vs. Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net revenue | $73,833 | $86,252 | | Gross profit | $49,427 | $61,220 | | Loss from operations | $(9,724) | $(7,570) | | Net loss | $(6,611) | $(4,490) | | Net loss per share, diluted | $(0.07) | $(0.05) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash provided by operating activities was $59.4 million, a decrease from $68.6 million in Q1 2024, primarily due to changes in operating assets and liabilities Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $59,426 | $68,553 | | Net cash provided by investing activities | $24,270 | $39,347 | | Net cash used in financing activities | $(615) | $(14,622) | | **Net increase in cash, cash equivalents and restricted cash** | **$86,380** | **$90,740** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's revenue recognition policies, debt structure, and equity plans - Revenue is primarily derived from ticketing fees (recorded net) and payment processing fees (recorded gross for EPP). In September 2024, the company discontinued its per-event 'Flex' plan and now offers an annual or monthly 'Pro' subscription for enhanced marketing tools[36](index=36&type=chunk)[38](index=38&type=chunk)[42](index=42&type=chunk) - The company has two outstanding convertible senior notes: **0.750% notes due 2026 with a principal of $212.8 million**, and **5.000% notes due 2025 with a principal of $30.0 million**[70](index=70&type=chunk) - A share repurchase program was approved in March 2024 for up to **$100.0 million**. As of March 31, 2025, approximately **$50.0 million remained available** for future repurchases. No shares were repurchased in Q1 2025[85](index=85&type=chunk) - Stock-based compensation expense was **$10.2 million** in Q1 2025, a **decrease from $14.0 million** in Q1 2024[92](index=92&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 14% year-over-year decline in Q1 2025 net revenue to lower paid ticket volume and a reduction in organizer fee revenue following changes to its pricing plans [Key Business Metrics and Non-GAAP Financial Measures](index=20&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) The company monitors paid ticket volume and Adjusted EBITDA as key performance indicators Paid Ticket Volume (in thousands) | Period | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Paid ticket volume | 19,585 | 21,216 | Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(6,611) | $(4,490) | | Adjustments | $11,184 | $14,903 | | **Adjusted EBITDA** | **$4,573** | **$10,413** | [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Net revenue for Q1 2025 decreased by 14% year-over-year to $73.8 million, primarily due to lower paid ticket volume and changes to organizer fee pricing - Net revenue **decreased by $12.4 million (14%) YoY**, primarily due to lower ticketing revenue from a decrease in paid ticket volume and a reduction in revenue from organizer fees after discontinuing the Flex plan[109](index=109&type=chunk) - Gross margin **decreased from 71% to 67% YoY**, mainly because of the discontinuation of the higher-margin Flex plan and reduced pricing for the Pro plan[113](index=113&type=chunk) - Product development expenses **decreased by 22% YoY** due to reduced personnel costs, including stock-based compensation[116](index=116&type=chunk) - Sales, marketing and support expenses **increased by 3% YoY**, primarily due to higher personnel costs from expanding the sales organization[118](index=118&type=chunk) - General and administrative expenses **decreased by 21% YoY**, driven by lower personnel costs and professional services spend[120](index=120&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held $502.9 million in cash and cash equivalents and $48.0 million in restricted cash - As of March 31, 2025, the company had **cash and cash equivalents of $502.9 million** and **restricted cash of $48.0 million**[131](index=131&type=chunk) - The company has **$352.4 million in 'accounts payable, creators'** and assumes risk related to advance payouts, with a **reserve of $10.5 million** for chargebacks and refunds as of March 31, 2025[132](index=132&type=chunk) - The company has remaining obligations for its **2025 Notes (due Dec 2025)** and **2026 Notes (due Sep 2026)**[133](index=133&type=chunk) - As of March 31, 2025, **$50.0 million remained available** under the company's **$100.0 million share repurchase program**[134](index=134&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from changes in interest rates and foreign currency exchange rates - The company's primary market risk is interest income sensitivity on its cash and cash equivalents. The fixed-rate Convertible Notes are not exposed to interest rate risk, though their fair value may fluctuate[146](index=146&type=chunk) - The company has significant ticket sales in foreign currencies, notably the British Pound, Euro, Canadian Dollar, and Australian Dollar, exposing it to foreign currency exchange rate risk[147](index=147&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025 - The principal executive officer and principal financial officer concluded that as of March 31, 2025, the company's disclosure controls and procedures were **effective**[149](index=149&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[150](index=150&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to litigation and claims in the ordinary course of business - The company may be a party to litigation and claims incident to the ordinary course of business. Details are provided in Note 16 of the financial statements[153](index=153&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors disclosed in the company's Annual Report on Form 10-K for the fiscal year 2024 - No material changes have occurred from the risk factors set forth in the 2024 Form 10-K, but supplemental risk factors are provided[154](index=154&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During the three months ended March 31, 2025, the company did not have any sales of unregistered equity securities - There were **no sales of unregistered equity securities** during the three months ended March 31, 2025[156](index=156&type=chunk) - There were **no issuer purchases of equity securities** during the three months ended March 31, 2025[157](index=157&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the three months ended March 31, 2025 - **No directors or officers adopted, terminated, or modified any written trading arrangements** under Rule 10b5-1 during the first quarter of 2025[159](index=159&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with or incorporated by reference into the Quarterly Report on Form 10-Q, including certifications by the CEO and CFO, and Inline XBRL documents - The report includes an index of all exhibits filed, such as the Form of Performance Stock Unit Award Agreement and certifications from the Principal Executive Officer and Principal Financial Officer[161](index=161&type=chunk)[162](index=162&type=chunk)

[First Quarter 2025 Financial Results](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) Eventbrite reported Q1 2025 results meeting guidance, with sequential improvements in key metrics despite a revenue decline due to fee elimination [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights disciplined execution leading to sequential improvements in paid tickets, creators, and events, focusing on tools and financial discipline for profitable growth - CEO Julia Hartz noted that **paid tickets, paid creators, and paid events** all improved for the third straight quarter, reinforcing the company's strategy[3](index=3&type=chunk) - CFO Anand Gandhi emphasized the company's focus on controlling operating expenses and improving margins to position Eventbrite for a return to growth with increased profitability[3](index=3&type=chunk) [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Q1 2025 revenue decreased 14% to $73.8 million due to fee elimination, while Adjusted EBITDA reached $4.6 million, with paid ticket volume showing sequential improvement Q1 2025 Financial Summary (vs. Q1 2024) | | Three Months Ended March 31, | | | | :--- | :--- | :--- | :--- | | | **2025 (in thousands)** | **2024 (in thousands)** | **% Change** | | Paid tickets | 19,585 | 21,216 | (8)% | | Gross ticket sales | $774,879 | $853,749 | (9)% | | Net revenue | $73,833 | $86,252 | (14)% | | Net loss | $(6,611) | $(4,490) | 47% | | Adjusted EBITDA (non-GAAP) | $4,573 | $10,413 | (56)% | | Adjusted EBITDA margin (non-GAAP) | 6% | 12% | | - The **14% decline in net revenue** was anticipated and largely driven by the elimination of organizer fees[5](index=5&type=chunk) - Eventbrite Ads continued to grow rapidly, with revenue up **30% year-over-year**[5](index=5&type=chunk) - Average Monthly Active Users grew to nearly **88 million**, with app users increasing by **13% year-over-year**[2](index=2&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Eventbrite reaffirms its full-year 2025 net revenue guidance of $295 million to $310 million and provides Q2 2025 projections, anticipating a sequential dip due to timing and mix-shifts [Fiscal Year and Second Quarter 2025 Guidance](index=2&type=section&id=Fiscal%20Year%20and%20Second%20Quarter%202025%20Guidance) Eventbrite reaffirms full-year 2025 net revenue guidance of $295 million to $310 million and projects Q2 2025 net revenue of $70 million to $73 million Financial Outlook | Period | Metric | Guidance Range | | :--- | :--- | :--- | | **Fiscal Year 2025** | Net Revenue | $295M - $310M | | | Adjusted EBITDA Margin | Mid-single digit % | | **Second Quarter 2025** | Net Revenue | $70M - $73M | | | Adjusted EBITDA Margin | 3% - 4% | - The company has not provided a GAAP net loss outlook due to the potential variability and complexity of excluded items like stock-based compensation[8](index=8&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company's financial statements show an increase in total assets to $812.3 million and total liabilities to $639.0 million as of March 31, 2025, with a net loss of $6.6 million for Q1 [Condensed Consolidated Balance Sheet](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of March 31, 2025, total assets increased to $812.3 million, driven by higher cash, while total liabilities rose to $639.0 million, primarily due to accounts payable to creators Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $502,911 | $416,531 | | Total assets | $812,283 | $752,301 | | Accounts payable, creators | $352,445 | $300,174 | | Total liabilities | $639,029 | $582,072 | | Total stockholders' equity | $173,254 | $170,229 | [Condensed Consolidated Statement of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) For Q1 2025, Eventbrite reported a net loss of $6.6 million on $73.8 million in net revenue, with reduced operating expenses compared to the prior year Statement of Operations Highlights (in thousands, except per share data) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Net revenue | $73,833 | $86,252 | | Gross profit | $49,427 | $61,220 | | Total operating expenses | $59,151 | $68,790 | | Loss from operations | $(9,724) | $(7,570) | | Net loss | $(6,611) | $(4,490) | | Net loss per share, diluted | $(0.07) | $(0.05) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw net cash provided by operating activities of $59.4 million, contributing to an $86.4 million increase in cash, cash equivalents, and restricted cash Cash Flow Highlights (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Net cash provided by operating activities | $59,426 | $68,553 | | Net cash provided by investing activities | $24,270 | $39,347 | | Net cash used in financing activities | $(615) | $(14,622) | | Net increase in cash, cash equivalents and restricted cash | $86,380 | $90,740 | | Cash, cash equivalents and restricted cash, end of period | $550,911 | $579,940 | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations and explanations for non-GAAP financial measures, primarily focusing on Adjusted EBITDA as a key operational performance indicator [Reconciliation of Net Loss to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) The reconciliation shows a Q1 2025 Adjusted EBITDA of $4.6 million, derived from a net loss of $(6.6) million after adjusting for non-cash and other specified items Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Net loss | $(6,611) | $(4,490) | | Stock-based compensation | 10,161 | 13,962 | | Depreciation and amortization | 4,022 | 3,594 | | Interest income | (3,754) | (7,407) | | Interest expense | 1,080 | 2,800 | | **Adjusted EBITDA** | **$4,573** | **$10,413** | [About Non-GAAP Financial Measures](index=9&type=section&id=About%20Non-GAAP%20Financial%20Measures) Eventbrite utilizes non-GAAP measures like Adjusted EBITDA for evaluating operational performance and making strategic decisions, while acknowledging their inherent limitations - Management uses **Adjusted EBITDA** and **Adjusted EBITDA margin** for assessing business health, making operating decisions, and strategic planning[18](index=18&type=chunk) - Adjusted EBITDA is defined as net loss adjusted to exclude depreciation and amortization, stock-based compensation expense, interest expense, interest income, and other specified items[19](index=19&type=chunk) - The company acknowledges limitations of Adjusted EBITDA, noting it does not reflect capital spending, replacement of depreciated assets, or debt service costs[20](index=20&type=chunk)