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].

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

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