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)

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $76.5 million, down 13% year-over-year, but at the upper end of the outlook range [27] - Adjusted EBITDA for Q4 was $6.5 million, compared to $8.8 million in the prior year [34] - Full year 2024 adjusted EBITDA was $35.1 million, up from $28.7 million in 2023 [35] Business Line Data and Key Metrics Changes - Ticketing revenue declined 10% to $70.4 million, primarily due to the recovery from the impacts of organizer fees [28] - Marketplace revenue decreased 35% to $6 million, attributed to the loss of organizer fees, partially offset by a 35% increase in Eventbrite Ads revenue [28][14] - Total ticketing volume was 72 million in Q4, representing a 2% year-over-year growth, driven by an 8% increase in free ticket volume [29][11] Market Data and Key Metrics Changes - Free ticket volume grew 8% in Q4, indicating a significant recovery from a 25% decline in Q3 [12] - Paid ticket volume totaled 21.6 million in Q4, also a 10% decline, but an improvement from a 14% decline in Q3 [30] - Transacting paid creators totaled 166,000 in Q4, down 9%, but improved from a 12% decline in Q3 [30] Company Strategy and Development Direction - The company is focusing on three strategic areas for 2025: expanding consumer reach, deepening creator engagement, and strengthening marketplace monetization [16] - A redesigned Eventbrite app is being rolled out to enhance event discovery and consumer engagement [17] - The company aims to recover paid ticket volume growth in the second half of 2025, with a long-term goal of scaling efficiently and driving stronger growth in 2026 and beyond [39][40] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a transition year, expecting to exit the year as a stronger, more scalable business despite guiding to lower revenue due to structural changes [15][39] - The elimination of organizer fees is expected to result in a $20 million revenue headwind compared to 2024, impacting margins [39] - Management is optimistic about the ongoing recovery in ticketing trends and the growth of Eventbrite Ads [39][40] Other Important Information - The company ended Q4 with cash, cash equivalents, and restricted cash totaling $465 million, down from $531 million at the end of Q3 [36] - Total debt at the end of Q4 was $241 million, with a focus on managing debt maturities in the upcoming year [36] Q&A Session Summary Question: Update on TikTok partnership and conversion rates - Management highlighted that the TikTok partnership is crucial for event discovery, with ongoing efforts to improve conversion rates through native ticket integration [45][46] Question: Annual outlook and EBITDA margin guidance - Management explained that the mid-single digit EBITDA margin guidance reflects the impact of the loss of high-margin organizer fee revenue and planned performance bonuses for 2025 [50][52] Question: Free ticket activity and its impact on revenue growth - Management indicated that free ticket activity is a leading indicator for paid ticket volume growth, with ongoing improvements in creator retention and consumer engagement [66][70] Question: Capital allocation strategy regarding debt and share repurchases - Management plans to balance capital allocation between managing debt maturities and executing the share buyback program, with a focus on maintaining a healthy balance sheet [79][80] Question: Building consumer loyalty and engagement - Management emphasized the importance of app users for driving loyalty and engagement, with initiatives like the HITLIST feature to enhance event discovery [90][91] Question: Strategies to win back high-volume creators - Management noted that since reintroducing the free tier, there has been stronger engagement with creators, supported by improved marketing tools and account management strategies [111][112]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $76.5 million, down 13% year-over-year, but at the upper end of the outlook range [27] - Adjusted EBITDA for Q4 was $6.5 million, compared to $8.8 million in the prior year [34] - Full year 2024 adjusted EBITDA was $35.1 million, up from $28.7 million in 2023 [35] Business Line Data and Key Metrics Changes - Ticketing revenue declined 10% to $70.4 million, primarily due to paid ticket volume recovery from the impacts of organizer fees [28] - Marketplace revenue decreased 35% to $6 million, attributed to the loss of organizer fees, partially offset by a 35% increase in Eventbrite Ads revenue [28][14] - Total ticketing volume was 72 million in Q4, representing a 2% year-over-year growth, driven by an 8% increase in free ticket volume [29][11] Market Data and Key Metrics Changes - Free ticket volume grew 8% in Q4, indicating a significant recovery and a 25 percentage point improvement from Q3 [12] - Paid ticket volume totaled 21.6 million in Q4, also a 10% decline, but an improvement from the 14% decline reported in Q3 [30] Company Strategy and Development Direction - The company is focusing on three strategic areas for 2025: expanding consumer reach, deepening creator engagement, and strengthening marketplace monetization [16] - A redesigned Eventbrite app is being rolled out to enhance event discovery and consumer engagement [17] - The company aims to exit 2025 as a stronger, more scalable business despite guiding to lower revenue due to structural changes in revenue mix [15][22] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a transition year, expecting to see continued recovery in ticketing trends and growth in Eventbrite Ads [39] - The elimination of organizer fees is expected to result in a $20 million revenue headwind compared to 2024, but management believes this will set the foundation for long-term growth [39][40] - Management expressed confidence in the company's ability to scale efficiently and drive stronger growth in 2026 and beyond [16][41] Other Important Information - The company ended Q4 with cash, cash equivalents, and restricted cash totaling $465 million, down from $531 million at the end of Q3 [36] - Total debt at the end of Q4 was $241 million, with a focus on managing debt maturities in the upcoming year [36] Q&A Session Summary Question: Update on TikTok partnership and conversion rates - Management highlighted that the TikTok partnership is crucial for event discovery and ticket sales, with ongoing efforts to improve conversion rates through native ticket integration [45][46] Question: Annual outlook and EBITDA margin guidance - Management explained that the mid-single digit EBITDA margin guidance reflects the impact of the $20 million reduction in organizer fees and other cost factors [50][52] Question: Free ticket activity and its impact on revenue growth - Management indicated that free ticket activity is a leading indicator for paid ticket volume growth, with ongoing improvements in creator retention and consumer engagement [66][70] Question: Capital allocation strategy regarding share repurchases and debt management - Management stated that a balanced approach will be taken for capital allocation, focusing on managing debt maturities while executing the share buyback program [79][80] Question: Building consumer loyalty and engagement - Management emphasized the importance of app users for driving loyalty and engagement, with initiatives like the HITLIST feature to enhance event discovery [88][90] Question: Strategies to win back high-volume creators - Management noted that since reintroducing the free tier, there has been stronger engagement with creators, supported by improved marketing tools and account management strategies [111][112]

Group 1 - Eventbrite reported a quarterly loss of $0.09 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, and compared to a loss of $0.01 per share a year ago, indicating an earnings surprise of -80% [1] - The company posted revenues of $76.46 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.39%, but down from $87.76 million year-over-year [2] - Eventbrite shares have underperformed the market, losing about 5.4% since the beginning of the year, while the S&P 500 gained 1.3% [3] Group 2 - The current consensus EPS estimate for the coming quarter is -$0.05 on revenues of $77.19 million, and for the current fiscal year, it is -$0.01 on revenues of $339.64 million [7] - The Zacks Industry Rank for Internet - Services is currently in the top 34% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8] Group 3 - The estimate revisions trend for Eventbrite is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Company Overview - Eventbrite aims to be the indispensable marketplace for live experiences[7] - The company is a scaled and trusted events marketplace with a large consumer audience, averaging 89 million monthly users and 270 million free and paid tickets in 2024[13] - Over 47 million events were held on the platform in 2024[17] Financial Performance & Metrics - Q4 2024 paid ticket volume was 216 million, a 10% year-over-year decrease, but improved 4 percentage points from Q3[64] - Q4 2024 net revenue was $765 million, a 13% year-over-year decline[64] - Q4 2024 net loss was $84 million, with an adjusted EBITDA of $65 million[64] - For FY 2024, Eventbrite's gross booking value was $33 billion[26] - FY 2024 net revenue was $3251 million[67] Growth Strategy - The company focuses on strategic inventory, elevating visibility and discoverability, developing self-sign-on features, and monetizing its network to drive growth[42] - Eventbrite is focused on returning to revenue growth, driven by simplified pricing and packaging, and Eventbrite Ads adoption[54] - 49% of total tickets sold were influenced by Eventbrite-driven demand in Q4 2024[39] 2025 Outlook - The company anticipates Q1 2025 net revenue to be in the range of $71 million to $74 million[70] - Full year 2025 net revenue is expected to be in the range of $295 million to $310 million, impacted by the elimination of organizer fees, resulting in an approximately $20 million revenue headwind compared to 2024[71, 72]

Financial Performance - The company incurred net losses of $15.6 million and $26.5 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $831.0 million as of December 31, 2024[52]. - Net revenue for the company was $325.1 million in 2024, slightly down from $326.1 million in 2023[52]. - The company expects operating expenses to increase in future periods, which may affect its ability to achieve and maintain profitability if revenue does not increase accordingly[52]. - As of December 31, 2024, outstanding advance payouts were $101.2 million, down from $115.3 million as of December 31, 2023, indicating a decrease of approximately 12.5% year-over-year[77]. - Non-recoupable payments, net, increased to $7.5 million as of December 31, 2024, compared to $1.9 million in 2023, representing a significant increase of approximately 294.7%[79]. - Creator advances, net, including noncurrent balances, rose to $3.4 million as of December 31, 2024, from $2.8 million in 2023, marking an increase of about 21.4%[80]. - Net cash provided by operating activities was $35.6 million for 2024, up from $19.0 million in 2023, showing improved cash flow[215]. - The company may face substantial tax liabilities due to audits in various jurisdictions, which could adversely affect its financial condition[206]. - Future utilization of net operating losses (NOLs) may be limited due to ownership changes, impacting the company's ability to offset taxable income[210]. Market and Competitive Landscape - The company operates in a competitive landscape with significant competition from other ticketing providers and large e-commerce companies[155]. - The company plans to increase marketing spend to drive consumer demand, responding to competitive pressures in the ticketing industry[84]. - The company’s business is directly affected by the success of events in its marketplace, with revenue impacted by the number and mix of events and ticket sales[60]. - The company relies heavily on internet search engines for traffic, and changes in algorithms could negatively impact visibility and rankings[117]. - The company’s partnerships with third-party distribution platforms, such as Meta and TikTok, are crucial for reaching consumers, but these relationships may be subject to changes that could impact business performance[113]. Operational Risks and Challenges - The company faces significant risks associated with upfront payments, as event performance may vary greatly, potentially harming financial returns[81]. - The company’s results of operations have fluctuated significantly due to various factors, including gross ticket sales levels and ticket fee pricing[71]. - The company faces challenges in maintaining and improving its platform performance due to increasing complexity and usage demands[108]. - The company relies on third-party providers for its payments system, which poses risks that could adversely affect payment processing capabilities[147]. - The company must continually integrate various payment methods, including Apple Pay and Google Pay, which may increase costs and risks[148]. - The company is subject to stringent data protection laws, including GDPR, with potential penalties up to €20 million or 4% of global turnover for breaches[125]. - The company faces risks from cybersecurity incidents, which could result in loss of creators or consumers and significant reputational damage[132]. - Cyber attacks are becoming more sophisticated, posing a higher risk to the company's operations as it expands geographically[134]. - The company’s platform is vulnerable to interruptions from third-party partners, which could lead to delays in product delivery and business strategy[102]. Regulatory and Compliance Issues - The company is subject to complex transfer pricing regulations, which could result in additional tax liabilities if tax authorities disagree with its income and expense allocations[209]. - Compliance with evolving data protection laws may significantly increase operational costs and complexity, particularly in regions like Australia, Brazil, and India[126]. - The company’s marketing communications are subject to the CAN-SPAM Act, with potential civil penalties for violations[124]. - The California Consumer Privacy Act (CCPA) requires the company to modify data processing practices, incurring compliance-related costs[121]. - The EU Digital Services Act (DSA) and the UK Online Safety Act 2023 impose significant compliance costs, with potential fines of up to 6% and 10% of total annual worldwide turnover, respectively[186]. - Noncompliance with anti-corruption laws could lead to significant penalties, including civil or criminal fines, which may harm the company's reputation and financial condition[188]. Strategic Initiatives and Future Outlook - The company plans to focus on hiring roles that will accelerate its transition to a marketplace, particularly in event acquisition and retention functions[55]. - The company has implemented a reduction in force, eliminating approximately 11% of its workforce, which may impact its employer brand and hiring capabilities[95]. - The company is investing resources to reduce the complexity of its software code, which may divert engineering talent from developing new solutions[103]. - The company faces challenges in adapting its platform to local preferences in international markets, which could hinder growth[166]. - The company’s international expansion may strain resources and may not yield desired revenue or profitability levels[165]. Financial Instruments and Stock Performance - The company repurchased $120 million of the 2025 convertible senior notes in August 2024, reducing its outstanding debt[218]. - The anticipated conversion of the Convertible Notes into shares of Class A common stock could depress the price of the company's Class A common stock[241]. - The market price of the company's Class A common stock has been volatile and may decline regardless of operating performance, influenced by macroeconomic factors and geopolitical events[232][233]. - The dual class structure of the company's common stock concentrates voting control, potentially limiting stockholder influence on corporate matters[236]. - The issuance of additional capital stock could dilute existing stockholders' ownership interests significantly[240].

Financial Performance - Net revenue for Q4 2024 was $76.5 million, down 13% year-over-year, with marketplace-related revenue from organizer fees and Eventbrite Ads accounting for 8% of total net revenue[4]. - The company reported a net loss of $8.4 million for Q4 2024, compared to a net loss of $0.9 million in the same period last year[4]. - Net revenue for Q4 2024 was $76,464,000, a decrease of 13% compared to $87,764,000 in Q4 2023[15]. - The net loss for the year ended December 31, 2024, was $15,571,000, compared to a net loss of $26,479,000 in 2023, indicating an improvement of 41%[15]. - Gross profit for the year ended December 31, 2024, was $226,563,000, an increase of 2% from $223,004,000 in 2023[15]. - Total operating expenses decreased to $257,356,000 in 2024 from $264,137,000 in 2023, reflecting a reduction of approximately 3%[15]. - Adjusted EBITDA for Q4 2024 was $6.5 million, with an Adjusted EBITDA margin of 8.5%[4]. - Adjusted EBITDA for the year ended December 31, 2024, was $35,111,000, up from $28,655,000 in 2023, representing a 23% increase[18]. - Adjusted EBITDA margin for 2024 was 11%, compared to 9% in 2023, showing an improvement in operational efficiency[18]. Revenue Projections - The company anticipates Q1 2025 net revenue to be between $71 million and $74 million, with an Adjusted EBITDA margin in the mid-single digits[6]. - Full year 2025 net revenue is expected to range from $295 million to $310 million, impacted by the elimination of organizer fees, which will create a $20 million revenue headwind compared to 2024[7][8]. Ticketing Metrics - Total ticket volume reached 72.0 million tickets, growing 2% across 1.4 million events, while paid ticket volume was 21.6 million, a decrease of 10% year-over-year[4][5]. - Average ticket value (ATV) increased by 2% year-over-year to $36.70 in Q4 2024[5]. - Eventbrite expects continued recovery in ticketing trends, with paid ticket volume projected to return to growth in the second half of 2025[7]. Asset and Liability Overview - Total current assets increased to $552,496,711 from $485,921,000, representing a growth of approximately 13.7% year-over-year[14]. - Cash and cash equivalents decreased to $416,531 from $489,200, indicating a decline of about 14.8%[14]. - Total assets reached $752,301,000, up from $913,330, representing a decrease of approximately 17.6%[14]. - Current liabilities increased to $366,373 from $357,572, reflecting a rise of about 2.2%[14]. - Total liabilities amounted to $582,072,721, compared to $573,753, indicating a slight increase of approximately 1.4%[14]. - The net accounts receivable stood at $21,872,814, showing a decrease from the previous year[14]. Creator Metrics - The total number of creators decreased by 7% year-over-year to 353, while paid creators also fell by 9% to 166[5]. - The company reported net creators signing fees of $39,546,634, which is a significant increase compared to the previous period[14]. Cash Flow and Debt Management - Cash flows from operating activities provided $35,573,000 in 2024, compared to $19,018,000 in 2023, indicating a significant increase of 87%[16]. - Principal repayment of debt obligations amounted to $120,450,000 in 2024, reflecting the company's commitment to reducing debt[16]. - The company incurred restructuring costs totaling $16.3 million in 2023, which impacted the financial results[18]. Other Financial Metrics - Gross margin for Q4 2024 was 68.2%, down from 70.1% in the same period last year[4]. - The total stockholders' equity was reported at $170,229,000, down from $191,000, representing a decrease of approximately 10.9%[14]. - The net property and equipment was recorded at $12,640,909, reflecting a growth from $3,384,000[14]. - Goodwill increased to $174,388,174 from $38,888, indicating a substantial rise[14].

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].