Eventbrite(EB) - 2024 Q3 - Quarterly Results

Third Quarter 2024 Earnings Overview Executive Summary & Key Highlights Eventbrite exceeded Q3 2024 revenue expectations, improving creator acquisition, with net loss significantly narrowed and Adjusted EBITDA positive - Q3 2024 revenue was $77.8 million, exceeding the anticipated range[1] - Consumer reach exceeded 93 million, with 19.7 million paid tickets sold[1] - Creator acquisition improved following the launch of a free plan in September[1] Key Financial Highlights for Q3 2024 | Metric | Amount/Ratio | | :--- | :--- | | Net Revenue | $77.8 Million (5% YoY decrease) | | Total Free and Paid Tickets | 65.0 Million Tickets | | Gross Margin | 68.5% (68.3% in prior year period) | | Net Loss | $(3.8) Million ($(9.9) Million in prior year period, including $5.4 Million in severance costs) | | Net Loss Margin | (4.8)% ((12.2)% in prior year period) | | Adjusted EBITDA | $5.3 Million | | Adjusted EBITDA Margin | 6.9% | CEO Commentary CEO Julia Hartz highlighted exceeding Q3 expectations, positive pricing impact on creator acquisition, and strategic initiatives for sustainable growth - Q3 performance exceeded the company's anticipated range[2] - Pricing actions taken in September have begun to benefit creator acquisition[2] - The company launched Timed Entry, is enhancing customer service and support, and expanding personalization and discoverability to attract more consumers[2] - Confidence in market strategy is strong, committed to driving sustainable long-term growth and shareholder value through execution and delivering exceptional experiences[2] Company Overview Eventbrite is a global event marketplace serving creators and attendees in nearly 180 countries, simplifying event organization and ticket sales - Eventbrite is a global event marketplace, serving creators and event attendees in nearly 180 countries[9] - The company aims to empower anyone to create and sell tickets for live experiences through its self-service platform[9] - In 2023, over 300 million tickets were distributed, and over 5 million events were hosted[9] - Recognized by the industry, including being named one of Fast Company's "50 Most Innovative Companies in the World" and a "Brand to Watch," as well as receiving the "Great Place to Work® Award" and "Inc.'s Best-Led Companies" honor[9] Financial Performance & Operating Metrics Summary of GAAP and Non-GAAP Financial Results Eventbrite's Q3 2024 net revenue decreased 5% to $77.8 million, but net loss significantly improved, with year-to-date net revenue growing 4% GAAP and Non-GAAP Financial Results (As of September 30) | Metric (Thousands of USD) | Q3 2024 | Q3 2023 | YoY Change (%) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Ticket Sales | 795,367 | 892,431 | (11)% | 2,489,364 | 2,688,794 | (7)% | | Net Revenue | 77,801 | 81,544 | (5)% | 248,604 | 238,370 | 4% | | Gross Profit | 53,258 | 55,677 | (4)% | 174,418 | 161,505 | 8% | | Gross Margin | 68% | 68% | - | 70% | 68% | - | | Net Income (Loss) | (3,768) | (9,935) | (62)% | (7,195) | (25,542) | (72)% | | Net Income (Loss) Margin | (5)% | (12)% | - | (3)% | (11)% | - | | Adjusted EBITDA (Non-GAAP) | 5,337 | 6,403 | (17)% | 28,586 | 19,858 | 44% | | Adjusted EBITDA Margin (Non-GAAP) | 7% | 8% | - | 11% | 8% | - | Key Operating Metrics Q3 2024 saw year-over-year declines in total tickets, paid tickets, events, and creators, while average ticket value increased by 3% Key Operating Metrics (Thousands) (As of September 30) | Metric (Thousands) | Q3 2024 | Q3 2023 | YoY Change (%) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Tickets | 64,986 | 77,257 | (16)% | 197,597 | 231,274 | (15)% | | Paid Tickets | 19,736 | 22,855 | (14)% | 62,195 | 69,342 | (10)% | | Total Events | 1,357 | 1,572 | (14)% | 3,655 | 3,979 | (8)% | | Paid Events | 509 | 561 | (9)% | 1,349 | 1,381 | (2)% | | Total Creators | 333 | 395 | (16)% | 640 | 716 | (11)% | | Paid Creators | 163 | 185 | (12)% | 313 | 329 | (5)% | | Average Ticket Value (ATV) | $40.30 | $39.05 | 3% | $40.03 | $38.79 | 3% | | Total Ticket Buyers | 26,604 | 31,420 | (15)% | 65,894 | 75,742 | (13)% | Condensed Consolidated Balance Sheets Total assets decreased to $817.4 million as of September 30, 2024, primarily due to reduced short-term investments and long-term debt Condensed Consolidated Balance Sheets (Thousands of USD) | Asset/Liability/Equity | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and Cash Equivalents | 530,957 | 489,200 | | Short-term Investments | 24,665 | 153,746 | | Total Current Assets | 611,284 | 711,851 | | Total Assets | 817,373 | 913,330 | | Liabilities | | | | Funds Payable to Creators | 355,074 | 303,436 | | Total Current Liabilities | 391,559 | 357,611 | | Long-term Debt | 240,395 | 357,668 | | Total Liabilities | 637,535 | 721,573 | | Stockholders' Equity | | | | Total Stockholders' Equity | 179,838 | 191,757 | Condensed Consolidated Statement of Operations Q3 2024 net revenue decreased 5% to $77.8 million, but operating loss narrowed 22% to $9.0 million, and net loss significantly improved Condensed Consolidated Statement of Operations (Thousands of USD) | Metric | Q3 2024 | Q3 2023 | YoY Change (%) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Revenue | 77,801 | 81,544 | (5)% | 248,604 | 238,370 | 4% | | Cost of Revenue | 24,543 | 25,867 | (5)% | 74,186 | 76,865 | (3)% | | Gross Profit | 53,258 | 55,677 | (4)% | 174,418 | 161,505 | 8% | | Total Operating Expenses | 62,210 | 67,241 | (7)% | 197,394 | 193,574 | 2% | | Operating Loss | (8,952) | (11,564) | (22)% | (22,976) | (32,069) | (28)% | | Interest Income | 6,056 | 7,569 | (20)% | 20,845 | 19,948 | 4% | | Interest Expense | (2,084) | (2,821) | (26)% | (7,690) | (8,359) | (8)% | | Net Loss | (3,768) | (9,935) | (62)% | (7,195) | (25,542) | (72)% | | Net Loss Per Share (Basic and Diluted) | (0.04) | (0.10) | (60)% | (0.08) | (0.26) | (69)% | Condensed Consolidated Statements of Cash Flows Net cash from operating activities decreased to $85.6 million for the nine months ended September 30, 2024, while net cash from investing activities significantly improved Condensed Consolidated Statements of Cash Flows (Thousands of USD) | Cash Flow Activities | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 85,628 | 101,800 | | Net Cash Provided by (Used in) Investing Activities | 124,644 | (68,516) | | Net Cash Used in Financing Activities | (166,129) | (3,990) | | Net Increase in Cash, Cash Equivalents, and Restricted Cash | 41,757 | 28,369 | | Cash, Cash Equivalents, and Restricted Cash at End of Period | 530,957 | 568,543 | Business Outlook & Non-GAAP Financial Measures Business Outlook Eventbrite projects Q4 2024 revenue between $74 million and $77 million, with full-year revenue expected between $322 million and $326 million, and an Adjusted EBITDA margin of approximately 10% - Expected Q4 2024 revenue range is $74 million to $77 million[6] - Expected full-year 2024 revenue range is $322 million to $326 million[6] - Expected full-year 2024 Adjusted EBITDA margin is approximately 10% (excluding the impact of severance and other non-recurring items)[6] - No outlook for GAAP net income (loss) or GAAP net income (loss) margin is provided due to complexity and variability[7] Reconciliation of Net Income (Loss) to Adjusted EBITDA This section details the adjustment of GAAP net loss to Adjusted EBITDA, showing a Q3 2024 net loss of $3.8 million adjusted to an Adjusted EBITDA of $5.3 million Reconciliation of Net Income (Loss) to Adjusted EBITDA (Thousands of USD) | Metric | Q3 2024 | Q3 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Loss | (3,768) | (9,935) | (7,195) | (25,542) | | Add: Depreciation and Amortization | 3,946 | 3,226 | 11,189 | 9,934 | | Add: Stock-based Compensation Expense | 10,246 | 14,468 | 39,484 | 41,161 | | Less: Interest Income | (6,056) | (7,569) | (20,845) | (19,948) | | Add: Interest Expense | 2,084 | 2,821 | 7,690 | 8,359 | | Add: Other (Income) Expense, Net | (1,420) | 2,357 | (3,892) | 3,230 | | Add: Provision for Income Taxes | 208 | 762 | 1,266 | 1,832 | | Adjusted EBITDA | 5,337 | 6,403 | 28,586 | 19,858 | | Net Revenue | 77,801 | 81,544 | 248,604 | 238,370 | | Adjusted EBITDA Margin | 7% | 8% | 11% | 8% | - Net loss and Adjusted EBITDA for Q3 2024 and the nine months ended September 30, 2024, both include $5.4 million in severance costs[15] About Non-GAAP Financial Measures Eventbrite utilizes Adjusted EBITDA and Adjusted EBITDA Margin as non-GAAP metrics to assess operational performance and aid management in strategic planning, despite their inherent limitations - Adjusted EBITDA and Adjusted EBITDA Margin are used by management to assess business health, operating performance, make operational decisions, strategic planning, and annual budgeting[16] - Adjusted EBITDA is calculated as net income (loss) adjusted to exclude depreciation and amortization, stock-based compensation expense, interest expense, interest income, employer taxes related to employee equity transactions, other (income) expense, net (including foreign currency exchange rate gains and losses), and provision (benefit) for income taxes[17] - Limitations of non-GAAP measures include not reflecting capital expenditures or future contractual commitments off the balance sheet, not reflecting capital expenditures, and not reflecting interest and principal payments required to service debt[18] - These measures are not prepared in accordance with GAAP and should not be considered in isolation or as a substitute for an analysis of operating results reported under GAAP[16][18][19] Additional Information Earnings Webcast Information Eventbrite's Q3 2024 earnings call was held on November 7, 2024, with a live webcast and archived recording available on the investor relations website - Event: Eventbrite Q3 2024 Earnings Call[8] - Date: Thursday, November 7, 2024[8] - Time: 2:00 PM PT (5:00 PM ET)[8] - Live Webcast Site: https://investor.eventbrite.com[8](index=8&type=chunk) - An archived webcast of the conference call is available on Eventbrite's investor relations page[8] Forward-Looking Statements & Disclaimers This press release contains forward-looking statements subject to significant risks and uncertainties, and investors are cautioned that actual results may differ materially from expectations - This press release contains forward-looking statements regarding the company's future performance, operating model, and market strategy[10] - These statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results to differ materially from expectations[10] - Investors are cautioned not to place undue reliance on these statements, and the company undertakes no obligation to update any statements unless required by law[10] - Ticket, creator, and event metrics are based on reasonable estimates and should not be considered in isolation or as a substitute for an analysis of GAAP operating results[11]