Eventbrite(EB)

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Eventbrite(EB) - 2023 Q1 - Quarterly Report
2023-05-08 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fr ...
Eventbrite(EB) - 2022 Q4 - Earnings Call Transcript
2023-03-01 04:37
Eventbrite, Inc. (NYSE:EB) Q4 2022 Earnings Conference Call February 28, 2023 5:00 PM ET Company Participants Katherine Chen - Head, IR Julia Hartz - Co-Founder and CEO Lanny Baker - CFO Conference Call Participants Youssef Squali - Truist Matt Farrell - Piper Sandler Ryan Sundby - William Blair Justin Patterson - KeyBanc Cameron Perrone - Morgan Stanley Lamont Williams - Stifel Dae Lee - JPMorgan Operator Good afternoon. Thank you for attending today's Eventbrite Q4 2022 Earnings Call. My name is Tamia and ...
Eventbrite(EB) - 2022 Q4 - Annual Report
2023-02-27 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-K ____________________________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38658 ...
Eventbrite(EB) - 2022 Q3 - Earnings Call Transcript
2022-11-06 11:50
Eventbrite, Inc. (NYSE:EB) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Katherine Chen - Head of Investor Relations Julia Hartz - Co-Founder & Chief Executive Officer Lanny Baker - Chief Financial Officer Conference Call Participants Matt Farrell - Piper Sandler Cameron Perrone - Morgan Stanley Lamont Williams - Stifel Katherine Chen Good afternoon and welcome to Eventbrite's Third Quarter Fiscal Year 2022 Earnings Call. Prior to this call, we released our Shareholder Le ...
Eventbrite(EB) - 2022 Q3 - Quarterly Report
2022-11-02 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ________________________ ...
Eventbrite(EB) - 2022 Q2 - Earnings Call Transcript
2022-07-29 02:59
Financial Data and Key Metrics Changes - Revenue increased by 43% year-over-year, reaching the highest level since Q4 2019, with a sequential growth of 18% from Q1 [26][25] - Adjusted EBITDA profitability was achieved for the fourth consecutive quarter, with adjusted EBITDA of $4.7 million and an adjusted EBITDA margin of 7% [32][36] - Gross margin improved to 65.1%, up from 61% in the same period last year [33] - Total operating expenses rose to $56 million, a 25% increase year-over-year, primarily due to investments in product and engineering teams [33][34] Business Line Data and Key Metrics Changes - The number of paid creators grew by 48% year-over-year, reaching almost 170,000, the highest level since early 2020 [27] - Total paid events increased by 7% year-over-year, totaling over 0.5 million events [29] - Paid ticket volume grew by 37% year-over-year, totaling 21.9 million tickets sold in Q2 [30] - Average ticket value remained roughly flat at $39, with a slight adverse impact from currency fluctuations [31] Market Data and Key Metrics Changes - The UK and Australia markets saw ticket sales 15% to 20% higher than pre-pandemic levels, with North America being the fastest-growing primary market [10] - Consumer demand for live events remained strong, with a 58% increase in search volume and a 37% increase in paid tickets on the platform [9] Company Strategy and Development Direction - The company is focused on enhancing its product offerings, with plans to release over 50 new features and product enhancements in the year [14] - A strong emphasis on frequent creators and self-service product models is expected to drive sustainable growth [21] - The introduction of new payment options like Google Pay aims to improve checkout conversion and enhance user experience [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the year, anticipating continued strong consumer demand for live events [19] - A cautious outlook was noted regarding potential macroeconomic impacts on creators, including inflation and labor shortages [39][88] - The company aims for long-term revenue growth of 20% per year or better, with adjusted EBITDA margins of at least 20% [41] Other Important Information - The company launched the Creator Collective and the RECONVENE Accelerator to support creators and new event professionals [15][18] - Eventbrite was certified as a Great Place to Work, reflecting a strong company culture [16] Q&A Session Summary Question: Insights on Q3 and creator environment - Management has not yet seen macroeconomic impacts on creators but remains cautious due to potential future challenges [45] Question: Updates on Boost product adoption - The company reported a 16% increase in campaign creation due to recent updates, indicating positive trends in adoption [50] Question: Demand linearity and seasonality - Historical seasonality indicates a typical rise in demand from July to September, but current conditions may lead to a more cautious outlook [59] Question: Eventbrite ads rollout - Demand from creators for Eventbrite ads is strong, with plans to expand the beta testing phase based on positive early feedback [62] Question: Creator confidence amid rising costs - Management noted that creators may face challenges due to inflation and labor shortages, but consumer demand remains strong [88]
Eventbrite(EB) - 2022 Q2 - Quarterly Report
2022-07-27 16:00
PART I. FINANCIAL INFORMATION This section provides Eventbrite's unaudited condensed consolidated financial statements and management's discussion for the quarter ended June 30, 2022 [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents Eventbrite's unaudited condensed consolidated financial statements for the quarter ended June 30, 2022 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased slightly to **$925.4 million** as of June 30, 2022, driven by cash, while liabilities and equity shifted Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | $706,375 | $673,608 | | **Total assets** | $925,436 | $902,976 | | **Total current liabilities** | $398,938 | $357,966 | | **Total liabilities** | $766,621 | $733,076 | | **Total stockholders' equity** | $158,815 | $169,900 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net revenue grew **43%** to **$66.0 million** in Q2 2022, with the net loss slightly improving to **$20.1 million** Consolidated Statements of Operations Summary (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net revenue** | $66,041 | $46,311 | $121,916 | $74,129 | | **Gross profit** | $42,999 | $28,258 | $78,901 | $42,401 | | **Loss from operations** | $(13,300) | $(18,229) | $(27,881) | $(44,072) | | **Net loss** | $(20,088) | $(20,540) | $(38,273) | $(105,431) | | **Net loss per share** | $(0.20) | $(0.22) | $(0.39) | $(1.13) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased to **$158.8 million** due to net losses, partially offset by stock-based compensation - The accumulated deficit increased from **$(733.6) million** at the end of 2021 to **$(771.8) million** as of June 30, 2022, reflecting the net losses incurred during the first half of the year[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to **$39.0 million** for the six months ended June 30, 2022 Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $39,042 | $132,572 | | **Net cash used in investing activities** | $(2,893) | $(875) | | **Net cash (used in) provided by financing activities** | $(182) | $47,032 | | **Net increase in cash, cash equivalents and restricted cash** | $35,967 | $178,729 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, COVID-19 impact, revenue recognition, debt, and legal proceedings - The company continues to be significantly impacted by the COVID-19 pandemic, which creates uncertainty and requires significant estimates related to chargebacks and refunds for cancelled or postponed events[28](index=28&type=chunk)[29](index=29&type=chunk) Net Revenue by Geography (in thousands) | Region | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **United States** | $48,726 | $36,219 | $91,344 | $56,356 | | **International** | $17,315 | $10,092 | $30,572 | $17,773 | | **Total net revenue** | $66,041 | $46,311 | $121,916 | $74,129 | - As of June 30, 2022, the company had **$362.75 million** in principal outstanding from its 2026 Notes (0.750%) and 2025 Notes (5.000%)[75](index=75&type=chunk) - The company settled a securities class action lawsuit (State Action) for **$19.3 million**, which was paid by the company and its insurers[128](index=128&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong revenue recovery, improved Adjusted EBITDA, and liquidity, expecting sufficient cash for the next 12 months [Key Business Metrics and Non-GAAP Financial Measures](index=27&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Key performance indicators show strong growth in paid ticket volume and positive Adjusted EBITDA for Q2 2022 Paid Ticket Volume (in thousands) | Period | 2022 | 2021 | | :--- | :--- | :--- | | **Three Months Ended June 30** | 21,863 | 16,016 | | **Six Months Ended June 30** | 39,917 | 26,248 | Adjusted EBITDA Reconciliation (in thousands) | Period | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net loss** | $(20,088) | $(20,540) | $(38,273) | $(105,431) | | **Adjusted EBITDA** | $4,649 | $(341) | $7,024 | $(8,847) | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Detailed analysis reveals **43%** net revenue growth, improved gross margin, and reduced operating expenses due to specific factors - Net revenue growth was driven by increased paid ticket volume and a rise in net revenue per paid ticket, which grew from **$2.89** in Q2 2021 to **$3.02** in Q2 2022[170](index=170&type=chunk) - Gross margin improved from **61%** to **65%** in Q2 year-over-year, primarily due to better fixed cost absorption as revenue increased[176](index=176&type=chunk) - Sales, marketing and support expenses increased by **124%** in Q2 2022 compared to Q2 2021, primarily because the prior year period included a **$5.0 million** reduction in the advance payout reserve, making the comparison unfavorable[183](index=183&type=chunk) - General and administrative expenses decreased by **18%** in Q2 2022 compared to Q2 2021, mainly due to a **$5.6 million** accrual for a litigation settlement recorded in the second quarter of 2021[186](index=186&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds **$670.8 million** in cash, with a significant portion held for creators, and expects sufficient liquidity for 12 months - The company's cash balance of **$670.8 million** includes **$340.8 million** due to creators[201](index=201&type=chunk)[202](index=202&type=chunk) - Advance payouts to creators totaled approximately **$387.8 million** as of June 30, 2022, exposing the company to risk if events are cancelled and creators cannot repay the funds[202](index=202&type=chunk)[203](index=203&type=chunk) - Management believes that existing cash, along with cash generated from operations, will be sufficient to meet anticipated cash needs for at least the next 12 months[206](index=206&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces low interest rate risk due to fixed-rate notes and manageable foreign currency exposure from international operations - The company has no significant economic exposure to changes in interest rates because its 2025 and 2026 convertible notes are subject to fixed annual interest charges[220](index=220&type=chunk) - The company is exposed to foreign currency risk from its international operations, but management does not believe a **10%** change in exchange rates would have a material impact on its consolidated results[221](index=221&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that as of June 30, 2022, the company's disclosure controls and procedures were effective[223](index=223&type=chunk) - No changes occurred during the quarter ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[224](index=224&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, unregistered equity sales, and exhibits [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) Legal matters include a **$19.3 million** securities class action settlement and an **$11.0 million** favorable jury verdict - For details on legal proceedings, the report refers to Note 15, "Commitments and Contingencies" in the financial statements[227](index=227&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors, with many risks still exacerbated by the COVID-19 pandemic - There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021[228](index=228&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no sales of unregistered equity securities during the three-month period ended June 30, 2022 - There were no sales of unregistered equity securities during the three months ended June 30, 2022[230](index=230&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including required officer certifications and interactive data files - The report includes standard exhibits such as officer certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL documents[233](index=233&type=chunk)
Eventbrite(EB) - 2022 Q1 - Earnings Call Transcript
2022-04-29 03:24
Eventbrite, Inc. (NYSE:EB) Q1 2022 Earnings Conference Call April 28, 2022 5:00 PM ET Company Participants Katherine Chen - Head, IR Julia Hartz - Co-Founder, CEO & Director Charles Baker - CFO Conference Call Participants Ryan Sundby - William Blair & Company Cameron Perrone - Morgan Stanley Lamont Williams - Stifel Dae Lee - JPMorgan Chase & Co. Operator Good afternoon, and thank you for standing by, and welcome to the Eventbrite First Quarter Fiscal Year 2022 Earnings Conference Call. [Operator Instructi ...
Eventbrite(EB) - 2022 Q1 - Quarterly Report
2022-04-27 16:00
PART I. FINANCIAL INFORMATION This section presents Eventbrite's unaudited condensed consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2022 [Item 1. Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents Eventbrite's unaudited condensed consolidated financial statements for the quarter ended March 31, 2022, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, revenue recognition, and specific financial line items. The company reported a net loss of $18.185 million for Q1 2022, a significant improvement from the $84.891 million net loss in Q1 2021, driven by increased revenue and reduced interest expense **Condensed Consolidated Statements of Operations (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | | :---------------------------------- | :----- | :----- | | Net revenue | $55,875 | $27,818 | | Cost of net revenue | 19,973 | 13,675 | | Gross profit | 35,902 | 14,143 | | Total operating expenses | 50,483 | 39,986 | | Loss from operations | (14,581) | (25,843) | | Interest expense | (2,798) | (7,610) | | Loss on debt extinguishment | — | (49,977) | | Net loss | $(18,185) | $(84,891) | | Net loss per share, basic and diluted | $(0.19) | $(0.91) | **Condensed Consolidated Balance Sheets (as of, in thousands):** | Asset/Liability | March 31, 2022 | December 31, 2021 | | :---------------------------------- | :------------- | :---------------- | | Total current assets | $749,349 | $673,608 | | Total assets | $972,901 | $902,976 | | Total current liabilities | $435,804 | $357,966 | | Long-term debt | 354,044 | 353,564 | | Total liabilities | $808,465 | $733,076 | | Total stockholders' equity | $164,436 | $169,900 | **Condensed Consolidated Statements of Cash Flows (Three Months Ended March 31, in thousands):** | Activity | 2022 | 2021 | | :---------------------------------- | :----- | :----- | | Net cash provided by operating activities | $76,219 | $40,169 | | Net cash used in investing activities | (831) | (118) | | Net cash (used in) provided by financing activities | (278) | 47,651 | | Net increase in cash, cash equivalents and restricted cash | $75,110 | $87,702 | | Cash, cash equivalents and restricted cash, end of period | $711,269 | $596,132 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents Eventbrite's condensed consolidated balance sheets as of March 31, 2022, and December 31, 2021, detailing assets, liabilities, and stockholders' equity [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents Eventbrite's condensed consolidated statements of operations for the three months ended March 31, 2022 and 2021, detailing revenue, expenses, and net loss [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section presents Eventbrite's condensed consolidated statements of stockholders' equity for the three months ended March 31, 2022 and 2021, detailing changes in equity balances [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents Eventbrite's condensed consolidated statements of cash flows for the three months ended March 31, 2022 and 2021, detailing operating, investing, and financing activities [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining Eventbrite's accounting policies, revenue recognition, and specific financial line items for the unaudited condensed consolidated financial statements [1. Overview and Basis of Presentation](index=8&type=section&id=1.%20Overview%20and%20Basis%20of%20Presentation) This note describes Eventbrite's business as a technology platform for live experiences, highlighting its efforts to reframe products around creators' operational needs. It also details the ongoing significant impact of the COVID-19 pandemic on the company's operations and financial estimates, particularly concerning chargebacks and refunds. The financial statements are unaudited and prepared in accordance with U.S. GAAP, with no material changes to significant accounting policies from the 2021 Form 10-K. The company operates as a single reportable segment - Eventbrite's platform enables creators to plan, promote, and produce live events, with a focus on enhancing the self-service experience and supporting ongoing operational needs[26](index=26&type=chunk) - The COVID-19 pandemic continues to significantly impact the company, leading to uncertainties in business, operations, and financial condition, particularly affecting estimates for chargebacks and refunds[27](index=27&type=chunk)[28](index=28&type=chunk) - The company operates as a single operating segment, with the CEO reviewing consolidated financial information for resource allocation and performance evaluation[36](index=36&type=chunk) [2. Revenue Recognition](index=9&type=section&id=2.%20Revenue%20Recognition) Eventbrite primarily generates revenue from ticketing and payment processing services, with a smaller portion from marketing services. Revenue is recognized when control of services is transferred, typically when a ticket is sold. The company acts as a principal for Eventbrite Payment Processing (EPP) services, recording revenue on a gross basis, and as an agent for Facilitated Payment Processing (FPP) and ticketing services, recording revenue on a net basis. Revenue is presented net of indirect taxes, refunds, chargebacks, and amortization of creator signing fees - Primary revenue sources are ticketing and payment processing, with marketing services contributing a smaller portion[37](index=37&type=chunk) - Revenue for ticketing services is recognized on a net basis when the ticket is sold, based on a fixed fee and a percentage-based fee per ticket[38](index=38&type=chunk) - For Eventbrite Payment Processing (EPP), the company is the merchant of record and recognizes revenue on a gross basis; for Facilitated Payment Processing (FPP), revenue is recognized on a net basis[39](index=39&type=chunk)[40](index=40&type=chunk) - Revenue is net of indirect taxes, customer refunds, payment chargebacks, estimated uncollectible amounts, creator royalties, and amortization of creator signing fees[41](index=41&type=chunk) [3. Cash, Cash Equivalents and Restricted Cash](index=10&type=section&id=3.%20Cash%2C%20Cash%20Equivalents%20and%20Restricted%20Cash) This note details the composition of cash, cash equivalents, and restricted cash, which includes bank deposits and money market funds. A significant portion of these balances represents unremitted ticket sales proceeds due to creators, which the company does not use for its own financing. Restricted cash is held as collateral for letters of credit related to lease and other agreements - Cash and cash equivalents include bank deposits and money market funds with original maturities of three months or less[45](index=45&type=chunk) - Creator cash balances were **$358.1 million** as of March 31, 2022, and **$268.6 million** as of December 31, 2021, and are not used for the company's financing or investing activities[46](index=46&type=chunk) **Cash, Cash Equivalents and Restricted Cash (in thousands):** | Category | March 31, 2022 | December 31, 2021 | March 31, 2021 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Cash and cash equivalents | $709,853 | $634,378 | $593,342 | | Restricted cash | 1,416 | 1,781 | 2,790 | | Total cash, cash equivalents and restricted cash | $711,269 | $636,159 | $596,132 | [4. Funds Receivable](index=10&type=section&id=4.%20Funds%20Receivable) Funds receivable represents cash in transit from third-party payment processors, typically received within five business days. These balances include the face value of tickets sold and service charges due to creators - Funds receivable are cash-in-transit from third-party payment processors, received within approximately five business days[48](index=48&type=chunk) - Funds receivable balances include ticket face value and service charges due to creators, totaling **$22.5 million** as of March 31, 2022, and **$16.7 million** as of December 31, 2021[48](index=48&type=chunk) [5. Accounts Receivable, Net](index=10&type=section&id=5.%20Accounts%20Receivable%2C%20Net) Accounts receivable, net, comprises invoiced amounts from customers using FPP and other invoiced amounts. The company maintains an allowance for credit losses based on factors like age, creditworthiness, and financial condition of customers **Accounts Receivable, Net (in thousands):** | Category | March 31, 2022 | December 31, 2021 | | :------------------------- | :------------- | :---------------- | | Accounts receivable, customers | $2,831 | $2,085 | | Allowance for credit losses | (1,079) | (975) | | Accounts receivable, net | $1,752 | $1,110 | [6. Creator Signing Fees, Net](index=10&type=section&id=6.%20Creator%20Signing%20Fees%2C%20Net) Creator signing fees are incentives paid to secure exclusive ticketing and payment processing rights with creators. These fees are amortized as a reduction of revenue over the contract life, which had a weighted-average remaining term of 3.7 years as of March 31, 2022 - Creator signing fees are incentives for exclusive ticketing and payment processing rights, amortized as a reduction of revenue[50](index=50&type=chunk) - As of March 31, 2022, the weighted-average remaining contract life for amortization was **3.7 years**[52](index=52&type=chunk) **Creator Signing Fees Activity (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | | :----------------------------------- | :----- | :----- | | Balance, beginning of period | $3,409 | $9,495 | | Amortization of creator signing fees | (412) | (879) | | Balance, end of period | $2,646 | $6,421 | [7. Creator Advances, Net](index=11&type=section&id=7.%20Creator%20Advances%2C%20Net) Creator advances are funds provided to creators in advance of an event, which are subsequently recovered from ticket sales. The balance of creator advances increased to $1.284 million as of March 31, 2022, from $862 thousand at the beginning of the period - Creator advances provide funds to creators before events, recovered from subsequent ticket sales[53](index=53&type=chunk) **Creator Advances Activity (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | | :----------------------------------- | :----- | :----- | | Balance, beginning of period | $862 | $6,651 | | Creator advances paid | 96 | — | | Creator advances recouped | (964) | (1,200) | | Balance, end of period | $1,284 | $4,355 | [8. Accounts Payable, Creators](index=11&type=section&id=8.%20Accounts%20Payable%2C%20Creators) Accounts payable, creators, represents unremitted ticket sale proceeds, net of Eventbrite fees and taxes, typically remitted within five business days post-event. The company offers an advance payout program for qualified creators, where proceeds are passed prior to the event, increasing outstanding advance payouts to $356.3 million as of March 31, 2022 - Accounts payable, creators, consists of unremitted ticket sale proceeds, net of Eventbrite service fees and applicable taxes, remitted within five business days post-event[55](index=55&type=chunk) - Advance payouts outstanding increased to approximately **$356.3 million** as of March 31, 2022, from **$319.3 million** as of December 31, 2021, including **$114.0 million** issued since Q3 2020[56](index=56&type=chunk) [9. Chargebacks and Refunds Reserve](index=12&type=section&id=9.%20Chargebacks%20and%20Refunds%20Reserve) The company records reserves for estimated advance payout losses, classified as sales, marketing, and support expenses, due to the risk of event cancellations or fraud. The chargebacks and refunds reserve was $21.0 million as of March 31, 2022, primarily for advance payout losses, with significant uncertainty remaining due to the COVID-19 pandemic - Reserves for estimated advance payout losses are recorded as an operating expense within sales, marketing and support[58](index=58&type=chunk) - The chargebacks and refunds reserve was **$21.0 million** as of March 31, 2022, primarily including **$18.3 million** for estimated advance payout losses[59](index=59&type=chunk) - Significant uncertainty exists regarding the sufficiency of reserves due to the COVID-19 pandemic's impact on event outcomes[60](index=60&type=chunk) [10. Property and Equipment, Net](index=12&type=section&id=10.%20Property%20and%20Equipment%2C%20Net) Property and equipment, net, includes capitalized internal-use software development costs, furniture, computers, leasehold improvements, and finance lease right-of-use assets. The net value decreased to $6.665 million as of March 31, 2022, from $7.162 million at December 31, 2021 **Property and Equipment, Net (in thousands):** | Category | March 31, 2022 | December 31, 2021 | | :------------------------------------------ | :------------- | :---------------- | | Capitalized internal-use software development costs | $51,935 | $51,292 | | Property and equipment, net | $6,665 | $7,162 | **Depreciation and Amortization Expense (Three Months Ended March 31, in thousands):** | Expense Type | 2022 | 2021 | | :------------------------------------------------ | :----- | :----- | | Depreciation expense | $378 | $679 | | Amortization of capitalized internal-use software development costs | 1,004 | 1,831 | [11. Leases](index=12&type=section&id=11.%20Leases) The company holds operating leases primarily for office space, with right-of-use assets and liabilities recognized at lease commencement. Sublease income from excess leased capacity is recorded as a reduction of operating expenses. As of March 31, 2022, the weighted-average remaining lease term was 3.4 years with a discount rate of 3.2% - Operating leases are primarily for office space, with right-of-use assets and liabilities recognized at lease commencement[62](index=62&type=chunk) - Sublease income from excess leased office space is recorded as a reduction of operating expenses[63](index=63&type=chunk) **Operating Lease Costs (Three Months Ended March 31, in thousands):** | Category | 2022 | 2021 | | :--------------------------- | :----- | :----- | | Operating lease costs | $839 | $1,799 | | Sublease income | (54) | (1,083) | | Total operating lease costs, net | $785 | $716 | - As of March 31, 2022, operating leases had a weighted-average remaining term of **3.4 years** and a weighted-average discount rate of **3.2%**[65](index=65&type=chunk) [12. Goodwill and Acquired Intangible Assets, Net](index=13&type=section&id=12.%20Goodwill%20and%20Acquired%20Intangible%20Assets%2C%20Net) Goodwill remained at $174.4 million as of March 31, 2022, with no impairment recorded. Acquired intangible assets, including developed technology, customer relationships, and tradenames, had a net book value of $28.735 million as of March 31, 2022, and are amortized over their useful lives - Goodwill balance was **$174.4 million** as of March 31, 2022, with no impairment recorded during the quarter[67](index=67&type=chunk) **Acquired Intangible Assets, Net (in thousands):** | Category | March 31, 2022 Net Book Value | December 31, 2021 Net Book Value | | :----------------------------------- | :---------------------------- | :----------------------------- | | Developed technology | $2,163 | $2,367 | | Customer relationships | 26,556 | 28,727 | | Tradenames | 16 | 22 | | Total acquired intangible assets, net | $28,735 | $31,116 | **Amortization Expense of Acquired Intangible Assets (Three Months Ended March 31, in thousands):** | Category | 2022 | 2021 | | :------------------------------------------- | :----- | :----- | | Total amortization of acquired intangible assets | $2,381 | $2,778 | [13. Fair Value Measurement](index=14&type=section&id=13.%20Fair%20Value%20Measurement) The company measures financial assets and liabilities at fair value using a hierarchy of observable and unobservable inputs. Cash equivalents, funds receivable, accounts receivable, accounts payable, and other current liabilities approximate their fair value and are classified as Level 1, except for debt - Financial assets and liabilities are measured at fair value using a hierarchy (Level 1, 2, 3) based on input observability[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - Most current financial assets and liabilities (cash equivalents, receivables, payables) are Level 1, approximating fair value, while debt is classified differently[73](index=73&type=chunk) [14. Debt](index=14&type=section&id=14.%20Debt) Eventbrite's long-term debt primarily consists of $150.0 million in 5.000% convertible senior notes due 2025 (2025 Notes) and $212.75 million in 0.750% convertible senior notes due 2026 (2026 Notes). Interest expense decreased by 63% year-over-year due to the repayment of term loans in Q1 2021. The company also has capped call transactions related to both note series to reduce potential stock dilution **Long-Term Debt (in thousands):** | Debt Type | March 31, 2022 | December 31, 2021 | | :----------------------------------- | :------------- | :---------------- | | 2026 Notes (principal) | $212,750 | $212,750 | | 2025 Notes (principal) | 150,000 | 150,000 | | Carrying amount, long-term debt | $354,044 | $353,564 | **Interest Expense (Three Months Ended March 31, in thousands):** | Category | 2022 | 2021 | | :----------------------------------- | :----- | :----- | | Cash interest expense | $2,253 | $2,968 | | Total interest expense | $2,733 | $7,575 | | % Change (YoY) | -63% | | - The company entered into capped call transactions for both 2025 and 2026 Notes to reduce potential dilution to Class A common stock upon conversion and/or offset cash payments[103](index=103&type=chunk)[108](index=108&type=chunk) - In March 2021, the company repaid all outstanding borrowings under the May 2020 credit agreement, resulting in a **$50.0 million** loss on debt extinguishment[111](index=111&type=chunk)[112](index=112&type=chunk) [15. Commitments and Contingencies](index=19&type=section&id=15.%20Commitments%20and%20Contingencies) Eventbrite's principal commitments include obligations under its 2025 and 2026 Notes, operating leases, and a new non-cancellable purchase commitment for payment services totaling $4.5 million over three years. The company is also involved in various litigations, including a refund policy arbitration, securities litigation (which settled for $19.3 million), and commercial contract litigation. Tax matters are under audit, with a reserve of $10.3 million for potential indirect tax liabilities as of March 31, 2022 - Principal commitments include obligations under 2025 and 2026 Notes, operating leases, and a new **$4.5 million** purchase commitment for payment services over three years[113](index=113&type=chunk)[114](index=114&type=chunk) - The company is involved in a refund policy arbitration, securities litigation (settled for **$19.3 million**), and commercial contract litigation[121](index=121&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk) - A reserve of **$10.3 million** was established for potential indirect tax matters as of March 31, 2022, including **$2.1 million** for interest and penalties[129](index=129&type=chunk) [16. Stockholders' Equity](index=22&type=section&id=16.%20Stockholders%27%20Equity) This note details Eventbrite's equity incentive plans, including the 2018 Stock Option and Incentive Plan, which allows for various equity awards and has an annual share increase mechanism. As of March 31, 2022, there were 12.2 million stock options outstanding and 7.4 million restricted stock units (RSUs) and restricted stock awards (RSAs) outstanding. Total unrecognized stock-based compensation expense was $27.1 million for stock options and $92.8 million for RSUs - The 2018 Stock Option and Incentive Plan allows for various equity awards, with shares reserved increasing annually by five percent of outstanding Class A and B common stock[134](index=134&type=chunk) **Stock Option Activity (Three Months Ended March 31, 2022, in thousands, except exercise price and term):** | Metric | Outstanding Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (years) | | :----------------------------------- | :------------------ | :------------------------------ | :------------------------------------------ | | Balance as of December 31, 2021 | 11,260,788 | $12.11 | 6.7 | | Granted | 1,149,869 | $14.18 | | | Exercised | (180,122) | $8.13 | | | Balance as of March 31, 2022 | 12,211,810 | $12.36 | 6.9 | | Unrecognized stock-based compensation expense | $27,100 | | 2.6 | | Weighted-average fair value of stock options granted | | $7.88 | | **Restricted Stock Activity (Three Months Ended March 31, 2022, in thousands, except fair value and term):** | Metric | Outstanding RSUs and RSAs | Weighted-Average Grant Date Fair Value per Share | Weighted-Average Remaining Contractual Term (years) | | :----------------------------------- | :------------------------ | :--------------------------------------------- | :------------------------------------------ | | Balance as of December 31, 2021 | 4,353,637 | $18.40 | 1.5 | | Awarded | 3,669,303 | $14.01 | | | Balance as of March 31, 2022 | 7,394,794 | $16.25 | 1.7 | | Unrecognized stock-based compensation expense | $92,800 | | 3.3 | **Stock-based Compensation Expense (Three Months Ended March 31, in thousands):** | Category | 2022 | 2021 | | :--------------------------- | :----- | :----- | | Total | $12,836 | $11,363 | [17. Net Loss Per Share](index=24&type=section&id=17.%20Net%20Loss%20Per%20Share) Basic and diluted net loss per share are calculated by dividing net loss by the weighted-average common shares outstanding. For the quarters ended March 31, 2022 and 2021, all potentially dilutive securities were anti-dilutive due to net losses. The net loss per share improved to $(0.19) in Q1 2022 from $(0.91) in Q1 2021 - All potentially issuable shares of common stock were anti-dilutive for the quarters ended March 31, 2022 and 2021 due to net losses[142](index=142&type=chunk) **Net Loss Per Share (Three Months Ended March 31, in thousands, except per share data):** | Metric | 2022 | 2021 | | :-------------------------------------------------------------------------------- | :----- | :----- | | Net loss | $(18,185) | $(84,891) | | Weighted-average shares used in computing net loss per share, basic and diluted | 97,554 | 92,879 | | Net loss per share, basic and diluted | $(0.19) | $(0.91) | [18. Income Taxes](index=24&type=section&id=18.%20Income%20Taxes) The company recorded an income tax expense of $0.2 million for the three months ended March 31, 2022, a decrease from $0.5 million in the prior year, primarily due to changes in taxable earnings mix. The tax provision differs from the U.S. federal statutory rate due to foreign taxes in profitable jurisdictions and a full valuation allowance on net deferred tax assets - Income tax expense decreased to **$0.2 million** in Q1 2022 from **$0.5 million** in Q1 2021, primarily due to changes in taxable earnings mix[144](index=144&type=chunk) - Differences from the U.S. federal statutory rate are mainly due to foreign taxes in profitable jurisdictions and a full valuation allowance on net deferred tax assets[144](index=144&type=chunk) [19. Geographic Information](index=25&type=section&id=19.%20Geographic%20Information) Eventbrite's net revenue by geography shows a significant increase in both United States and International revenue for the three months ended March 31, 2022, compared to the prior year. The United States accounted for $42.618 million of net revenue, while International revenue was $13.257 million **Total Net Revenue by Geography (Three Months Ended March 31, in thousands):** | Geography | 2022 | 2021 | | :-------------------- | :----- | :----- | | United States | $42,618 | $20,137 | | International | 13,257 | 7,681 | | Total net revenue | $55,875 | $27,818 | - No individual international country represents more than **10%** of total consolidated net revenue[147](index=147&type=chunk) - Substantially all of the company's long-lived assets are located in the United States[148](index=148&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Eventbrite's financial condition and operational results for the quarter ended March 31, 2022. It highlights the company's mission as a self-service ticketing platform, its creator-aligned business model, and ongoing platform infrastructure improvements. The discussion emphasizes the continued impact of the COVID-19 pandemic and details key business metrics, non-GAAP financial measures, and a comprehensive analysis of revenue, expenses, and cash flows - Eventbrite operates as a global self-service ticketing and experience technology platform, with a creator-aligned business model[151](index=151&type=chunk)[152](index=152&type=chunk) - The company is strengthening its platform infrastructure by shifting to a microservices architecture to improve velocity, scalability, and availability[153](index=153&type=chunk) - The COVID-19 pandemic continues to significantly impact the business, with uncertain duration and extent, affecting events and increasing cancellation losses[155](index=155&type=chunk) [Overview](index=26&type=section&id=Overview) This overview describes Eventbrite's business model as a global self-service ticketing platform and discusses the ongoing impact of the COVID-19 pandemic on its operations and financial performance [Key Business Metrics and Non-GAAP Financial Measures](index=27&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) This section presents Eventbrite's key business metrics, such as paid ticket volume, and non-GAAP financial measures, including Adjusted EBITDA, to provide insights into operational performance [Paid Ticket Volume](index=27&type=section&id=Paid%20Ticket%20Volume) Paid ticket volume, a key indicator of business health, increased significantly to 18.054 million in Q1 2022 from 10.232 million in Q1 2021, reflecting a strong recovery. International events accounted for 36% of total paid tickets in Q1 2022 **Paid Ticket Volume (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | | :------------------- | :----- | :----- | | Paid Ticket Volume | 18,054 | 10,232 | - Paid ticket volume for events outside the United States represented **36%** of total paid tickets in Q1 2022, down from **39%** in Q1 2021[158](index=158&type=chunk) [Adjusted EBITDA](index=27&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, improved significantly to $2.375 million in Q1 2022 from a loss of $(8.510) million in Q1 2021. This metric excludes depreciation, stock-based compensation, interest expense, and other non-cash or non-recurring items, providing management and investors with a clearer view of operational performance - Adjusted EBITDA is calculated by excluding depreciation and amortization, stock-based compensation expense, interest expense, loss on debt extinguishment, employer taxes related to employee equity transactions, other income (expense), net, and income tax provision (benefit) from net loss[159](index=159&type=chunk) **Adjusted EBITDA Reconciliation (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | | :------------------------------------------------- | :----- | :----- | | Net loss | $(18,185) | $(84,891) | | Add: Depreciation and amortization | 3,763 | 5,288 | | Add: Stock-based compensation | 12,836 | 11,363 | | Add: Interest expense | 2,798 | 7,610 | | Add: Loss on debt extinguishment | — | 49,977 | | Add: Employer taxes related to employee equity transactions | 357 | 682 | | Add: Other (income) expense, net | 603 | 948 | | Add: Income tax provision (benefit) | 203 | 513 | | Adjusted EBITDA | $2,375 | $(8,510) | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of Eventbrite's financial performance for the three months ended March 31, 2022, covering net revenue, cost of net revenue, operating expenses, and other income and expenses [Net Revenue](index=29&type=section&id=Net%20Revenue) Net revenue for Q1 2022 increased by 101% to $55.875 million, up from $27.818 million in Q1 2021, primarily driven by a 76% growth in paid ticket volume. Net revenue per paid ticket also improved to $3.09, reflecting growth in price per ticket and reduced refund activity **Net Revenue (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | $ Change | % Change | | :------------ | :----- | :----- | :------- | :------- | | Net revenue | $55,875 | $27,818 | $28,057 | 101% | - The increase in net revenue was primarily driven by a **76%** growth in paid ticket volume[168](index=168&type=chunk) - Net revenue per paid ticket was **$3.09** in Q1 2022, compared to **$2.72** in Q1 2021, reflecting growth in price per paid ticket and reduction in refund activity[168](index=168&type=chunk) [Cost of Net Revenue](index=29&type=section&id=Cost%20of%20Net%20Revenue) Cost of net revenue increased by 46% to $19.973 million in Q1 2022, primarily due to a $7.1 million increase in payment processing costs associated with higher revenue. However, gross margin improved from 51% to 64% due to better fixed cost absorption from increased ticket volume and revenue **Cost of Net Revenue (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | $ Change | % Change | | :-------------------------- | :----- | :----- | :------- | :------- | | Cost of net revenue | $19,973 | $13,675 | $6,298 | 46% | | Percentage of total net revenue | 36% | 49% | | | | Gross margin | 64% | 51% | | | - The increase in cost of net revenue was primarily due to a **$7.1 million** increase in payment processing costs[172](index=172&type=chunk) - Gross margin improved due to better fixed cost absorption as ticket volume and revenue increased[173](index=173&type=chunk) [Operating Expenses](index=30&type=section&id=Operating%20Expenses) Total operating expenses increased to $50.483 million in Q1 2022 from $39.986 million in Q1 2021. Product development expenses rose by 21% due to increased employee-related costs. Sales, marketing, and support expenses surged by 133% primarily due to changes in the advance payout reserve. General and administrative expenses remained relatively consistent, with a decrease in creator upfronts reserves offset by higher employee-related costs and indirect tax reserves **Operating Expenses (Three Months Ended March 31, in thousands):** | Category | 2022 | 2021 | $ Change | % Change | | :--------------------------- | :----- | :----- | :------- | :------- | | Product development | $18,518 | $15,319 | $3,199 | 21% | | Sales, marketing and support | 13,148 | 5,639 | 7,509 | 133% | | General and administrative | 18,817 | 19,028 | (211) | (1)% | | Total operating expenses | $50,483 | $39,986 | $10,497 | 26% | - Product development expenses increased due to employee-related costs and investment in platform technology[177](index=177&type=chunk) - Sales, marketing and support expenses increased primarily due to changes in the advance payout reserve; Q1 2021 included a **$5.0 million** reduction in reserve, while Q1 2022 had no such reduction[180](index=180&type=chunk) - General and administrative expenses were stable, with a **$4.5 million** decrease in creator upfronts reserves offset by a **$2.7 million** increase in employee-related costs and a **$1.0 million** increase in indirect tax reserves[183](index=183&type=chunk) [Interest Expense](index=31&type=section&id=Interest%20Expense) Interest expense decreased by 63% to $2.798 million in Q1 2022 from $7.610 million in Q1 2021. This significant reduction was primarily due to the repayment of term loans in the first quarter of 2021 **Interest Expense (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | $ Change | % Change | | :--------------- | :----- | :----- | :------- | :------- | | Interest expense | $2,798 | $7,610 | $(4,812) | (63)% | - The decrease in interest expense was primarily due to a **$5.4 million** decrease in interest on term loans repaid in Q1 2021[186](index=186&type=chunk) [Loss on Debt Extinguishment](index=32&type=section&id=Loss%20on%20Debt%20Extinguishment) Eventbrite recorded no loss on debt extinguishment in Q1 2022, a 100% decrease from the $49.977 million loss in Q1 2021. The prior year's loss was due to the full repayment of outstanding indebtedness under the May 2020 credit agreement, including a make-whole premium and the write-off of unamortized debt discount and issuance costs **Loss on Debt Extinguishment (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | $ Change | % Change | | :-------------------------- | :----- | :----- | :------- | :------- | | Loss on debt extinguishment | — | $49,977 | $(49,977) | (100)% | - The **$50.0 million** loss in Q1 2021 was primarily due to the write-off of **$31.8 million** in unamortized debt discount and issuance costs and an **$18.2 million** make-whole premium from repaying the May 2020 credit agreement[189](index=189&type=chunk) [Other Income (Expense), Net](index=32&type=section&id=Other%20Income%20%28Expense%29%2C%20Net) Other income (expense), net, improved by 36% to $(0.603) million in Q1 2022 from $(0.948) million in Q1 2021. This change was primarily driven by fluctuations in foreign currency exchange rates **Other Income (Expense), Net (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | $ Change | % Change | | :-------------------------- | :----- | :----- | :------- | :------- | | Other income (expense), net | $(603) | $(948) | $345 | (36)% | - The decrease in other expense was driven by foreign currency rate measurement fluctuations[191](index=191&type=chunk) [Income Tax Provision (Benefit)](index=32&type=section&id=Income%20Tax%20Provision%20%28Benefit%29) Income tax provision decreased by 60% to $0.203 million in Q1 2022 from $0.513 million in Q1 2021. This reduction was mainly attributable to changes in the company's year-over-year taxable earnings mix **Income Tax Provision (Three Months Ended March 31, in thousands):** | Metric | 2022 | 2021 | $ Change | % Change | | :------------------- | :----- | :----- | :------- | :------- | | Income tax provision | $203 | $513 | $(310) | (60)% | - The decrease in income tax provision was primarily attributable to changes in the year-over-year taxable earnings mix[193](index=193&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, Eventbrite had $709.9 million in cash and cash equivalents, with approximately 23% held outside the U.S. A significant portion ($380.6 million) of this cash is due to creators and not used for company financing. The company's advance payout program for creators carries risk, with $356.3 million outstanding. Cash provided by operating activities increased to $76.2 million in Q1 2022, while cash used in investing and financing activities remained low - Cash and cash equivalents totaled **$709.9 million** as of March 31, 2022, with **23%** held outside the United States[195](index=195&type=chunk) - Amounts due to creators were **$380.6 million** as of March 31, 2022, which the company does not use for its own financing or investing activities[196](index=196&type=chunk) - Advance payouts outstanding were approximately **$356.3 million** as of March 31, 2022, carrying risk of loss if events are cancelled or fraudulent[196](index=196&type=chunk)[197](index=197&type=chunk) **Cash Flows (Three Months Ended March 31, in thousands):** | Activity | 2022 | 2021 | | :------------------------------------------------- | :----- | :----- | | Net cash provided by operating activities | $76,219 | $40,169 | | Net cash used in investing activities | (831) | (118) | | Net cash (used in) provided by financing activities | (278) | 47,651 | | Net increase in cash, cash equivalents and restricted cash | $75,110 | $87,702 | [Critical Accounting Policies and Estimates](index=34&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The preparation of Eventbrite's financial statements requires significant estimates and assumptions, particularly concerning chargebacks and refunds due to the ongoing COVID-19 pandemic. While no updates to estimates or revisions of asset/liability carrying values are currently required, actual results could materially differ from these estimates - Significant estimates and assumptions are required for financial statements, especially regarding chargebacks and refunds due to the COVID-19 pandemic[209](index=209&type=chunk) - No material changes to significant accounting policies from the 2021 Form 10-K have occurred[211](index=211&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Eventbrite's market risk disclosures focus on interest rate sensitivity and foreign currency risk. The company has no financial exposure to interest rate changes due to fixed-rate convertible senior notes, though their fair value may fluctuate. Foreign currency risk arises from international revenue and expenses, primarily in British Pounds, Euros, Canadian Dollars, and Australian Dollars, but a 10% change in exchange rates is not expected to materially impact consolidated results - The company has no financial or economic exposure to changes in interest rates due to fixed annual interest charges on its 2025 and 2026 Notes[213](index=213&type=chunk) - Foreign currency risk stems from international revenue and expenses denominated in British Pounds, Euros, Canadian Dollars, and Australian Dollars[214](index=214&type=chunk) - A **10%** increase or decrease in current exchange rates is not expected to have a material impact on consolidated results of operations[214](index=214&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, concluded that Eventbrite's disclosure controls and procedures were effective as of March 31, 2022, providing reasonable assurance for timely and accurate financial reporting. There have been no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were effective as of March 31, 2022, providing reasonable assurance for timely and accurate information disclosure[215](index=215&type=chunk)[216](index=216&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2022[217](index=217&type=chunk) PART II. OTHER INFORMATION This section provides additional information beyond the financial statements, including legal proceedings, risk factors, equity security sales, and a list of exhibits [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 15, 'Commitments and Contingencies,' for details on legal proceedings. Eventbrite is involved in various litigations, including a refund policy arbitration, securities class action (which recently settled), and commercial contract disputes, with potential impacts on the company's financial position and operations - Legal proceedings are detailed in Note 15, 'Commitments and Contingencies,' covering refund policy arbitration, securities litigation, and commercial contract litigation[220](index=220&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) This section supplements the risk factors from the 2021 Form 10-K, emphasizing the heightened risk of data loss or security breaches. Such breaches, which have occurred in the past (e.g., Ticketfly in 2018), could severely harm Eventbrite's business, reputation, and financial results through litigation, remediation costs, and loss of customers. The increased reliance on internet technology and remote work due to COVID-19 may exacerbate these cybersecurity risks - Data loss or security breaches pose a significant risk, potentially harming business, reputation, and results of operations[222](index=222&type=chunk) - Past breaches, like the Ticketfly incident in 2018, resulted in costs, revenue loss, and delayed integration, highlighting the potential for future financial and reputational damage[222](index=222&type=chunk) - The COVID-19 pandemic and increased remote work may heighten cybersecurity risks, creating more opportunities for cybercriminals[222](index=222&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the three months ended March 31, 2022, that had not been previously reported - No unregistered sales of equity securities occurred during the three months ended March 31, 2022, that were not previously reported[229](index=229&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or incorporated by reference as part of this Quarterly Report on Form 10-Q, including organizational documents, stock certificates, employee stock purchase plans, certifications, and XBRL-related documents - The exhibit index includes organizational documents (Amended and Restated Certificate of Incorporation, Bylaws), stock certificates, employee stock purchase plans, certifications (Principal Executive Officer, Principal Financial Officer, CEO, CFO), and Inline XBRL documents[231](index=231&type=chunk)[232](index=232&type=chunk) [Signatures](index=41&type=section&id=Signatures) The report is duly signed on April 28, 2022, by Julia Hartz (Chief Executive Officer), Charles Baker (Chief Financial Officer), and Xiaojing Fan (Chief Accounting Officer), certifying its compliance with the Securities Exchange Act of 1934 - The report was signed on April 28, 2022, by the Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer[235](index=235&type=chunk)[236](index=236&type=chunk)
Eventbrite(EB) - 2021 Q4 - Earnings Call Transcript
2022-02-11 03:34
Eventbrite, Inc. (NYSE:EB) Q4 2021 Earnings Conference Call February 10, 2022 5:00 PM ET Company Participants Katherine Chen - Head, IR Julia Hartz - Co-Founder, CEO & Director Charles Baker - CFO Conference Call Participants Ryan Sundby - William Blair & Company Youssef Squali - Truist Securities Cameron Perrone - Morgan Stanley Dae Lee - JPMorgan Chase & Co. Operator Good afternoon, and thank you for standing by, and welcome to the Eventbrite Fourth Quarter 2021 Earnings Conference Call. [Operator Instruc ...