Eventbrite(EB) - 2025 Q1 - Quarterly Results

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