Eventbrite(US:EB)2025-05-08 20:08PART I. FINANCIAL INFORMATION Unaudited Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, show a decrease in net revenue and an increase in net loss compared to the same period in 2024 - The company operates a two-sided marketplace connecting event creators and consumers. It has determined it operates as a single operating segment, with performance assessed on a consolidated basis by the CEO2333 - The company revised its prior period condensed consolidated statement of cash flows for Q1 2024 to correct an error related to foreign currency exchange, which was deemed not material to previously reported periods28 Condensed Consolidated Balance Sheets As of March 31, 2025, total assets were $812.3 million, an increase from $752.3 million at year-end 2024, driven by a rise in cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $502,911 | $416,531 | | Total current assets | $615,370 | $552,496 | | Total assets | $812,283 | $752,301 | | Liabilities & Equity | | | | Accounts payable, creators | $352,445 | $300,174 | | Total current liabilities | $422,964 | $366,373 | | Total liabilities | $639,029 | $582,072 | | Total stockholders' equity | $173,254 | $170,229 | Condensed Consolidated Statements of Operations For the three months ended March 31, 2025, Eventbrite reported a net revenue of $73.8 million, a 14.4% decrease from $86.3 million in the prior-year period Q1 2025 vs. Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net revenue | $73,833 | $86,252 | | Gross profit | $49,427 | $61,220 | | Loss from operations | $(9,724) | $(7,570) | | Net loss | $(6,611) | $(4,490) | | Net loss per share, diluted | $(0.07) | $(0.05) | Condensed Consolidated Statements of Cash Flows For Q1 2025, net cash provided by operating activities was $59.4 million, a decrease from $68.6 million in Q1 2024, primarily due to changes in operating assets and liabilities Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $59,426 | $68,553 | | Net cash provided by investing activities | $24,270 | $39,347 | | Net cash used in financing activities | $(615) | $(14,622) | | Net increase in cash, cash equivalents and restricted cash | $86,380 | $90,740 | Notes to Unaudited Condensed Consolidated Financial Statements The notes detail the company's revenue recognition policies, debt structure, and equity plans - Revenue is primarily derived from ticketing fees (recorded net) and payment processing fees (recorded gross for EPP). In September 2024, the company discontinued its per-event 'Flex' plan and now offers an annual or monthly 'Pro' subscription for enhanced marketing tools363842 - The company has two outstanding convertible senior notes: 0.750% notes due 2026 with a principal of $212.8 million, and 5.000% notes due 2025 with a principal of $30.0 million70 - A share repurchase program was approved in March 2024 for up to $100.0 million. As of March 31, 2025, approximately $50.0 million remained available for future repurchases. No shares were repurchased in Q1 202585 - Stock-based compensation expense was $10.2 million in Q1 2025, a decrease from $14.0 million in Q1 202492 Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes the 14% year-over-year decline in Q1 2025 net revenue to lower paid ticket volume and a reduction in organizer fee revenue following changes to its pricing plans Key Business Metrics and Non-GAAP Financial Measures The company monitors paid ticket volume and Adjusted EBITDA as key performance indicators Paid Ticket Volume (in thousands) | Period | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Paid ticket volume | 19,585 | 21,216 | Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(6,611) | $(4,490) | | Adjustments | $11,184 | $14,903 | | Adjusted EBITDA | $4,573 | $10,413 | Results of Operations Net revenue for Q1 2025 decreased by 14% year-over-year to $73.8 million, primarily due to lower paid ticket volume and changes to organizer fee pricing - Net revenue decreased by $12.4 million (14%) YoY, primarily due to lower ticketing revenue from a decrease in paid ticket volume and a reduction in revenue from organizer fees after discontinuing the Flex plan109 - Gross margin decreased from 71% to 67% YoY, mainly because of the discontinuation of the higher-margin Flex plan and reduced pricing for the Pro plan113 - Product development expenses decreased by 22% YoY due to reduced personnel costs, including stock-based compensation116 - Sales, marketing and support expenses increased by 3% YoY, primarily due to higher personnel costs from expanding the sales organization118 - General and administrative expenses decreased by 21% YoY, driven by lower personnel costs and professional services spend120 Liquidity and Capital Resources As of March 31, 2025, the company held $502.9 million in cash and cash equivalents and $48.0 million in restricted cash - As of March 31, 2025, the company had cash and cash equivalents of $502.9 million and restricted cash of $48.0 million131 - The company has $352.4 million in 'accounts payable, creators' and assumes risk related to advance payouts, with a reserve of $10.5 million for chargebacks and refunds as of March 31, 2025132 - The company has remaining obligations for its 2025 Notes (due Dec 2025) and 2026 Notes (due Sep 2026)133 - As of March 31, 2025, $50.0 million remained available under the company's $100.0 million share repurchase program134 Quantitative and Qualitative Disclosures About Market Risk The company is exposed to market risks from changes in interest rates and foreign currency exchange rates - The company's primary market risk is interest income sensitivity on its cash and cash equivalents. The fixed-rate Convertible Notes are not exposed to interest rate risk, though their fair value may fluctuate146 - The company has significant ticket sales in foreign currencies, notably the British Pound, Euro, Canadian Dollar, and Australian Dollar, exposing it to foreign currency exchange rate risk147 Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025 - The principal executive officer and principal financial officer concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective149 - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting150 PART II. OTHER INFORMATION Legal Proceedings The company is subject to litigation and claims in the ordinary course of business - The company may be a party to litigation and claims incident to the ordinary course of business. Details are provided in Note 16 of the financial statements153 Risk Factors There have been no material changes from the risk factors disclosed in the company's Annual Report on Form 10-K for the fiscal year 2024 - No material changes have occurred from the risk factors set forth in the 2024 Form 10-K, but supplemental risk factors are provided154 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities During the three months ended March 31, 2025, the company did not have any sales of unregistered equity securities - There were no sales of unregistered equity securities during the three months ended March 31, 2025156 - There were no issuer purchases of equity securities during the three months ended March 31, 2025157 Other Information No directors or officers adopted, terminated, or modified any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the three months ended March 31, 2025 - No directors or officers adopted, terminated, or modified any written trading arrangements under Rule 10b5-1 during the first quarter of 2025159 Exhibits This section lists the exhibits filed with or incorporated by reference into the Quarterly Report on Form 10-Q, including certifications by the CEO and CFO, and Inline XBRL documents - The report includes an index of all exhibits filed, such as the Form of Performance Stock Unit Award Agreement and certifications from the Principal Executive Officer and Principal Financial Officer161162