Eventbrite(EB) - 2025 Q2 - Quarterly Report

Special Note Regarding Forward-Looking Statements This section cautions readers about forward-looking statements, which involve risks and uncertainties that may cause actual results to differ materially - This report contains forward-looking statements related to future financial or operational results, convertible notes, growth strategies, liquidity, and litigation defense, which involve substantial risks and uncertainties[10] - Readers are cautioned not to rely on forward-looking statements as predictions of future events, as actual outcomes may differ materially due to known and unknown risks, including those detailed in the 'Risk Factors' section[11] Part I. Financial Information This part presents Eventbrite's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations Item 1. Unaudited Condensed Consolidated Financial Statements This section presents Eventbrite, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes Condensed Consolidated Balance Sheets This table provides a snapshot of Eventbrite's financial position, detailing assets, liabilities, and equity at specific dates | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $490,504 | $416,531 | | Total current assets | $590,223 | $552,496 | | Total assets | $784,065 | $752,301 | | Total current liabilities | $390,279 | $366,373 | | Total liabilities | $606,868 | $582,072 | | Total stockholders' equity | $177,197 | $170,229 | Condensed Consolidated Statements of Operations This table outlines Eventbrite's financial performance over specific periods, including net revenue, gross profit, and net income or loss | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net revenue | $72,758 | $84,551 | $146,591 | $170,803 | | Gross profit | $49,107 | $59,940 | $98,534 | $121,160 | | Loss from operations | $(6,340) | $(6,454) | $(16,064) | $(14,024) | | Net income (loss) | $(2,107) | $1,063 | $(8,718) | $(3,427) | | Net income (loss) per share | $(0.02) | $0.01 | $(0.09) | $(0.04) | Condensed Consolidated Statements of Stockholders' Equity This section details changes in Eventbrite's equity accounts, reflecting contributions, distributions, and comprehensive income over time | Metric | Balance at Dec 31, 2024 (in thousands) | Balance at Jun 30, 2025 (in thousands) | | :-------------------------- | :----------------------------------- | :----------------------------------- | | Additional Paid-In Capital | $1,051,392 | $1,067,205 | | Accumulated Deficit | $(831,005) | $(839,723) | | Total Stockholders' Equity | $170,229 | $177,197 | - Total stockholders' equity increased from $170,229 thousand at December 31, 2024, to $177,197 thousand at June 30, 2025, primarily due to stock-based compensation and issuance of common stock, offset by net loss[19] Condensed Consolidated Statements of Cash Flows This table summarizes Eventbrite's cash inflows and outflows from operating, investing, and financing activities over specific periods | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by operating activities | $41,896 | $36,274 | | Net cash provided by investing activities | $23,144 | $94,596 | | Net cash used in financing activities | $(2,273) | $(41,830) | | Effect of exchange rate changes | $11,206 | $(2,741) | | Net increase in cash, cash equivalents and restricted cash | $73,973 | $86,299 | Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and additional information supporting the unaudited condensed consolidated financial statements Note 1. Overview and Basis of Presentation Eventbrite operates a two-sided marketplace connecting event creators and consumers, with financial statements prepared under U.S. GAAP - Eventbrite operates a two-sided marketplace connecting millions of creators and consumers for live experiences, offering self-service ticketing and marketing tools[28] - The company revised previously issued condensed consolidated statements of cash flows for a foreign currency exchange error, which was deemed not significant to prior periods[33] - Eventbrite operates as a single operating segment, with the CEO reviewing consolidated financial information for resource allocation and performance evaluation[38] Note 2. Revenue Recognition Revenue is primarily derived from ticketing and payment processing fees, recognized when control of services is transferred to creators - Revenue is primarily generated from ticketing and payment processing fees, with additional revenue from advertising and marketplace services[40] - For EPP, Eventbrite is the principal and records revenue gross; for FPP, it records revenue net. Revenue is presented net of indirect taxes, refunds, chargebacks, and creator royalties[43][44] - The Flex organizer plan was discontinued in September 2024, returning to a free event publishing model, while the Pro subscription plan for enhanced marketing capabilities continues[47] Note 3. Cash, Cash Equivalents and Restricted Cash This note details the composition of cash, cash equivalents, and restricted cash, including amounts held for creators and risk mitigation | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | June 30, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | :--------------------------- | | Cash and cash equivalents | $490,504 | $416,531 | $575,499 | | Restricted cash | $48,000 | $48,000 | $— | | Total cash, cash equivalents and restricted cash | $538,504 | $464,531 | $575,499 | - Restricted cash of $48.0 million was established in 2024 to manage and mitigate potential risks related to refunds and chargebacks[50] Note 4. Short-term Investments The company previously invested in short-term U.S. Treasury bills but held no short-term investments as of June 30, 2025 - As of June 30, 2025, Eventbrite does not hold any short-term investments, having previously invested in U.S. Treasury bills[51] Note 5. Funds Receivable Funds receivable represents cash-in-transit from third-party payment processors, typically received within approximately five business days from the transaction date | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :--------------- | :-------------------------- | :------------------------------ | | Funds receivable | $22.7 | $34.2 | Note 6. Accounts Receivable, Net Accounts receivable, net, comprises invoiced amounts to customers using third-party payment processors or advertising services, presented net of an allowance for credit losses | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------- | :----------------------------- | :------------------------------- | | Accounts receivable, customers | $1,715 | $3,111 | | Allowance for credit losses | $(999) | $(924) | | Accounts receivable, net | $716 | $2,187 | Note 7. Creator Signing Fees, Net Creator signing fees are incentives paid to secure exclusive ticketing and payment processing rights, amortized on a straight-line basis over a weighted-average remaining contract life of 3.3 years as of June 30, 2025 | Metric | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Balance, beginning of period | $7,760 | $7,529 | | Creator signing fees paid | $283 | $1,966 | | Amortization of creator signing fees | $(534) | $(1,006) | | Write-offs and other adjustments | $(1,000) | $(1,980) | | Balance, end of period | $6,509 | $6,509 | - Creator signing fees, net, decreased from $3,954 thousand at December 31, 2024, to $2,452 thousand at June 30, 2025 (current portion), and from $3,575 thousand to $4,057 thousand (noncurrent portion)[57] Note 8. Creator Advances, Net Creator advances are funds provided to creators in advance of events, which are subsequently recouped by withholding amounts from ticket sales. These advances are presented net of reserves | Metric | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Balance, beginning of period | $5,728 | $3,380 | | Creator advances paid | $1,806 | $4,651 | | Creator advances recouped | $(757) | $(1,221) | | Balance, end of period | $6,810 | $6,810 | Note 9. Accounts Payable, Creators Accounts payable, creators, represents unremitted ticket sale proceeds, net of company service fees and taxes, generally remitted within five business days post-event. Advance payouts to qualified creators prior to events totaled $126.6 million as of June 30, 2025 | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :-------------------------- | :-------------------------- | :------------------------------ | | Advance payouts outstanding | $126.6 | $101.2 | Note 10. Chargebacks and Refunds Reserve The company records estimates for refunds and chargebacks of its fees as contra-revenue, and reserves for estimated advance payout losses as an operating expense. The total chargebacks and refunds reserve was $10.6 million as of June 30, 2025, including $4.7 million for advance payout losses | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :-------------------------------- | :-------------------------- | :------------------------------ | | Chargebacks and refunds reserve | $10.6 | $10.3 | | Estimated advance payout losses | $4.7 | $5.2 | Note 11. Property and Equipment, Net Property and equipment, net, includes capitalized internal-use software development costs, furniture, computers, and leasehold improvements, less accumulated depreciation and amortization. The net value decreased to $10.4 million as of June 30, 2025, from $12.6 million at December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :------------------------------------------ | :----------------------------- | :------------------------------- | | Capitalized internal-use software development costs | $72,162 | $70,210 | | Property and equipment, net | $10,356 | $12,640 | | Expense | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Depreciation expense | $138 | $274 | | Amortization of capitalized internal-use software development costs | $2,212 | $4,233 | Note 12. Leases The company holds operating leases primarily for office space, recognizing right-of-use assets and liabilities based on the present value of lease payments. Sublease income reduces total operating lease costs. As of June 30, 2025, the weighted-average remaining lease term was 0.8 years | Metric | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Operating lease costs | $163 | $318 | | Sublease income | $(21) | $(63) | | Total operating lease costs, net | $142 | $255 | | Maturity Period | Operating Leases (in thousands) | | :---------------------- | :------------------------------ | | The remainder of 2025 | $1,123 | | 2026 | $400 | | Total operating lease liabilities | $1,503 | Note 13. Goodwill and Acquired Intangible Assets, Net This note details the carrying amounts of goodwill and acquired intangible assets, primarily customer relationships, and their amortization - The carrying amount of goodwill remained $174.4 million as of June 30, 2025, with no impairment recorded during the period[68] | Acquired Intangible Asset | June 30, 2025 Net Book Value (in thousands) | December 31, 2024 Net Book Value (in thousands) | | :------------------------ | :------------------------------------------ | :---------------------------------------------- | | Developed technology | $— | $— | | Customer relationships | $1,264 | $5,014 | | Tradenames | $— | $— | | Total acquired intangible assets, net | $1,264 | $5,014 | | Amortization Expense | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Cost of net revenue | $— | $— | | Sales, marketing and support | $1,885 | $3,750 | | Total amortization | $1,885 | $3,750 | Note 14. Fair Value Measurement The company measures financial assets and liabilities at fair value using a hierarchy of observable and unobservable inputs - The company uses a fair value hierarchy (Level 1, 2, 3) to measure financial assets and liabilities, maximizing observable inputs[70] - Most financial assets and liabilities approximate their fair value and are classified as Level 1, except for the 2026 and 2025 Convertible Notes, which are Level 2 instruments[72] Note 15. Long-Term Debt Long-term debt consists of 2026 and 2025 Convertible Notes, with details on repurchases and interest expense | Debt Instrument | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :---------------- | :----------------------------- | :------------------------------- | | 2026 Notes | $211,455 | $210,938 | | 2025 Notes | $29,895 | $29,781 | | Total long-term debt | $241,350 | $240,719 | | Interest Expense Type | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :-------------------- | :-------------------------------------------- | :-------------------------------------------- | | Cash interest expense | $774 | $1,544 | | Amortization of debt issuance costs | $320 | $631 | | Total interest expense | $1,094 | $2,175 | - The company repurchased $120 million aggregate principal amount of 2025 Notes in August 2024 for $120.5 million cash, resulting in a $0.3 million loss on extinguishment[77][78] Note 16. Commitments and Contingencies Principal commitments include Convertible Notes, operating leases, purchase commitments, and details on contract litigation and tax reserves - The company entered into purchase commitments totaling approximately $7.7 million over the next three years, primarily for business technology software[81] - In contract litigation in Brazil, a judge ruled against the company, awarding BRL3.8 million for breach of contract, BRL0.5 million for moral damages, and lost profits. The company plans to appeal[86] | Contingency | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------------ | :-------------------------- | :------------------------------ | | Contract litigation accrual | $0.5 | N/A | | Indirect tax reserves | $0.4 | $0.5 | Note 17. Stockholders' Equity This note details changes in stockholders' equity, including share repurchase programs, stock option activity, and stock award activity - A share repurchase program authorized up to $100.0 million of Class A common stock, with approximately $50.0 million remaining available as of June 30, 2025. No shares were repurchased in the first six months of 2025[91] | Stock Option Activity | June 30, 2025 | | :-------------------- | :------------ | | Outstanding options | 9,685,584 | | Weighted average exercise price | $12.11 | | Weighted average remaining contractual term (years) | 3.1 | | Vested and exercisable | 9,380,124 | | Stock Award Activity | June 30, 2025 | | :------------------- | :------------ | | Outstanding RSUs, RSAs and PSUs | 16,777,330 | | Weighted-average grant date fair value per share | $3.96 | | Weighted average remaining contractual term (years) | 1.4 | | Total unrecognized stock-based compensation expense | $39.7 million | | Expense Category | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Cost of net revenue | $82 | $167 | | Product development | $3,121 | $7,439 | | Sales, marketing and support | $1,013 | $2,742 | | General and administrative | $3,326 | $7,355 | | Total stock-based compensation expense | $7,542 | $17,703 | Note 18. Net Income (Loss) Per Share Basic and diluted net income (loss) per share calculations are provided. Potentially dilutive securities, including shares related to Convertible Notes, stock options, RSUs, and ESPP, were excluded from diluted EPS computation due to their anti-dilutive effect | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :------------------------------------------------- | :------------------------------- | :----------------------------- | | Net income (loss) | $(2,107) | $(8,718) | | Weighted-average shares used in computing EPS, basic | 96,114 | 95,442 | | Weighted-average shares used in computing EPS, diluted | 96,114 | 95,442 | | Net income (loss) per share, basic and diluted | $(0.02) | $(0.09) | | Potentially Dilutive Securities | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :------------------------------ | :--------------------------- | :--------------------------- | | Shares related to 2025 and 2026 Notes | 10,011 | 19,538 | | Stock options | 9,686 | 11,639 | | Restricted stock units | 16,378 | 15,557 | | ESPP | 83 | 182 | | Total | 36,158 | 46,916 | Note 19. Income Taxes Income tax expense increased for the three and six months ended June 30, 2025, primarily due to non-routine tax expenses in the prior year and changes in the mix of taxable earnings. The company is evaluating the impact of the recently enacted One Big Beautiful Bill Act (OBBBA) on its financial statements | Metric | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :------------------ | :-------------------------------------------- | :-------------------------------------------- | | Income tax expense | $845 | $1,613 | - The increase in income tax expense is primarily attributed to non-routine tax expenses in the prior year and changes in the mix of taxable earnings[100] - The company is currently evaluating the impact of the One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, which provides for significant U.S. tax law changes[102] Note 20. Geographic Information Total net revenue decreased across all reported geographies (United States, United Kingdom, and International) for both the three and six months ended June 30, 2025, compared to the same periods in 2024 | Geography | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :---------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | United States | $51,874 | $61,814 | $106,493 | $125,096 | | United Kingdom | $7,761 | $8,120 | $14,961 | $16,437 | | International | $13,123 | $14,617 | $25,137 | $29,270 | | Total net revenue | $72,758 | $84,551 | $146,591 | $170,803 | Note 21. Related Party Transaction Eventbrite entered into agreements with Decagon AI, Inc. and RegCheck, Inc. d/b/a Andera.ai for customer support and audit AI platforms, respectively. Both companies have minority stakes held by funds managed by A-Star Partners, LLC, where Kevin Hartz (co-founder and former CEO) is a managing member - On May 19, 2025, Eventbrite agreed to a one-year term with Decagon AI, Inc. for a $0.3 million fee for customer support AI[105] - On May 30, 2025, Eventbrite entered a three-year agreement with RegCheck, Inc. d/b/a Andera.ai for audit AI, with payments of approximately $0.3 million per year[106] - Both Decagon AI and Andera.ai have minority stakes held by funds managed by A-Star Partners, LLC, a venture capital firm where Kevin Hartz (co-founder, former CEO, and spouse of current CEO Julia Hartz) is a managing member[105][106] Note 22. Subsequent Events Subsequent to June 30, 2025, Eventbrite renewed a $55.0 million site hosting commitment over five years. It also entered into a new four-year, $60.0 million senior secured term loan facility and agreed to repurchase $125.0 million aggregate principal amount of 2026 Notes for approximately $117.9 million - On July 28, 2025, the company renewed a non-cancellable purchase commitment for site hosting services totaling $55.0 million over a five-year period[108] - On August 6, 2025, Eventbrite entered into a new four-year, $60.0 million senior secured term loan facility, with proceeds escrowed until certain 2025 and 2026 Notes are repaid or repurchased[109] - On August 6, 2025, the company agreed to repurchase $125.0 million aggregate principal amount of 2026 Notes for approximately $117.9 million cash, expected to settle around August 11, 2025[110] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on Eventbrite's financial condition and results of operations for the periods presented. It covers key business metrics, non-GAAP financial measures like Adjusted EBITDA, and a detailed analysis of revenue, cost of revenue, operating expenses, and other financial items, concluding with a discussion on liquidity and capital resources Overview Eventbrite's mission is to connect creators and consumers through live experiences via its two-sided marketplace - Eventbrite's mission is to connect creators and consumers through live experiences via its two-sided marketplace, offering self-service ticketing and marketing tools[113] Key Business Metrics and Non-GAAP Financial Measures This section presents key operational metrics like paid ticket volume and non-GAAP financial measures such as Adjusted EBITDA | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Paid ticket volume | 19,684 | 21,243 | 39,270 | 42,459 | - Paid ticket volume decreased by 7.3% for the three months ended June 30, 2025, and by 7.5% for the six months ended June 30, 2025, compared to the same periods in 2024[115] - The definition of Adjusted EBITDA was updated to include certain significant and non-recurring legal matters, net of insurance recoveries, applied prospectively from Q2 2025[118] | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :---------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net income (loss) | $(2,107) | $1,063 | $(8,718) | $(3,427) | | Adjusted EBITDA | $6,431 | $12,836 | $11,004 | $23,249 | Results of Operations This section provides a detailed analysis of Eventbrite's financial performance, including net revenue, cost of revenue, and operating expenses | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net revenue | $72,758 | $84,551 | $146,591 | $170,803 | | Cost of net revenue | $23,651 | $24,611 | $48,057 | $49,643 | | Gross profit | $49,107 | $59,940 | $98,534 | $121,160 | | Total operating expenses | $55,447 | $66,394 | $114,598 | $135,184 | | Loss from operations | $(6,340) | $(6,454) | $(16,064) | $(14,024) | | Net income (loss) | $(2,107) | $1,063 | $(8,718) | $(3,427) | | Metric | Three Months Ended June 30, 2025 (%) | Three Months Ended June 30, 2024 (%) | Six Months Ended June 30, 2025 (%) | Six Months Ended June 30, 2024 (%) | | :-------------------------- | :----------------------------------- | :----------------------------------- | :--------------------------------- | :--------------------------------- | | Net revenue | 100 % | 100 % | 100 % | 100 % | | Cost of net revenue | 33 % | 29 % | 33 % | 29 % | | Gross profit | 67 % | 71 % | 67 % | 71 % | | Total operating expenses | 76 % | 79 % | 78 % | 79 % | | Loss from operations | (9)% | (8)% | (11)% | (8)% | | Net income (loss) | (3)% | 1 % | (6)% | (2)% | Net Revenue Net revenue decreased by 14% for both the three and six months ended June 30, 2025, compared to the same periods in 2024. This decline was primarily driven by a lower paid ticket volume and a reduction in revenue from organizer fees due to changes effective September 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :--------------- | :-------------------------------------------- | :-------------------------------------------- | :---------------------- | :------- | | Total net revenue | $72,758 | $84,551 | $(11,793) | (14)% | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :--------------- | :------------------------------------------ | :------------------------------------------ | :---------------------- | :------- | | Total net revenue | $146,591 | $170,803 | $(24,212) | (14)% | - The decrease in net revenue was primarily due to lower paid ticket volume and a reduction in revenue from organizer fees, reflecting changes effective September 2024[124] Cost of Net Revenue Cost of net revenue decreased by 4% for the three months and 3% for the six months ended June 30, 2025, primarily due to reduced processing fees and lower personnel costs. However, gross margin decreased from 71% to 67% due to changes in organizer fees, including the discontinuation of higher-margin fees | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :---------------------- | :------- | | Cost of net revenue | $23,651 | $24,611 | $(960) | (4)% | | Percentage of total net revenue | 33 % | 29 % | | | | Gross margin | 67 % | 71 % | | | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------- | :------- | | Cost of net revenue | $48,057 | $49,643 | $(1,586) | (3)% | | Percentage of total net revenue | 33 % | 29 % | | | | Gross margin | 67 % | 71 % | | | - Gross margin decreased primarily due to changes to organizer fees in September 2024, including the discontinuation of higher-margin organizer fees[128] Operating Expenses Operating expenses, primarily personnel-related, decreased overall for the three and six months ended June 30, 2025, compared to 2024. This was driven by reduced product development and sales, marketing, and support costs, partially offset by an increase in general and administrative expenses in the three-month period Product development Product development expenses decreased by 30% for the three months and 26% for the six months ended June 30, 2025 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :---------------------- | :------- | | Product development | $18,161 | $26,057 | $(7,896) | (30)% | | Percentage of total net revenue | 25 % | 31 % | | | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------- | :------- | | Product development | $39,098 | $52,741 | $(13,643) | (26)% | | Percentage of total net revenue | 27 % | 31 % | | | - Product development expenses decreased primarily due to reduced personnel costs, including stock-based compensation[131] Sales, marketing and support Sales, marketing and support expenses decreased by 17% for the three months and 8% for the six months ended June 30, 2025 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :---------------------- | :------- | | Sales, marketing and support | $20,399 | $24,521 | $(4,122) | (17)% | | Percentage of total net revenue | 28 % | 29 % | | | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------- | :------- | | Sales, marketing and support | $41,922 | $45,390 | $(3,468) | (8)% | | Percentage of total net revenue | 29 % | 27 % | | | - Sales, marketing and support expenses decreased primarily due to a $3.2 million decrease in chargeback reserves and a $1.7 million decrease in advanced payouts reserve compared to the prior year[133] General and administrative General and administrative expenses increased in the three-month period but decreased in the six-month period | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :---------------------- | :------- | | General and administrative | $16,887 | $15,816 | $1,071 | 7 % | | Percentage of total net revenue | 23 % | 19 % | | | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------- | :------- | | General and administrative | $33,578 | $37,053 | $(3,475) | (9)% | | Percentage of total net revenue | 23 % | 22 % | | | - General and administrative expenses increased in the three-month period due to a $4.4 million creator upfront reserve release in the prior year, offset by a $3.6 million decrease in personnel costs[135] - General and administrative expenses decreased in the six-month period due to a $6.3 million decrease in personnel costs, partially offset by the $4.4 million creator upfront reserve release in the prior year[136] Interest Income Interest income decreased by 46% for the three months and 48% for the six months ended June 30, 2025, compared to the same periods in 2024. This decline was primarily due to lower interest rates and a reduced balance of short-term investments | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :--------------- | :-------------------------------------------- | :-------------------------------------------- | :---------------------- | :------- | | Interest income | $3,961 | $7,382 | $(3,421) | (46)% | | Percentage of total net revenue | 5 % | 9 % | | | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :--------------- | :------------------------------------------ | :------------------------------------------ | :---------------------- | :------- | | Interest income | $7,715 | $14,789 | $(7,074) | (48)% | | Percentage of total net revenue | 5 % | 9 % | | | - Interest income decreased primarily due to lower interest rates and a lower balance of short-term investments in U.S. Treasury bills[138] Interest Expense Interest expense decreased significantly by 61% for both the three and six months ended June 30, 2025, compared to the same periods in 2024. This reduction was primarily due to the repurchase of $120 million aggregate principal amount of the 2025 Notes in August 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :--------------- | :-------------------------------------------- | :-------------------------------------------- | :---------------------- | :------- | | Interest expense | $1,094 | $2,806 | $(1,712) | (61)% | | Percentage of total net revenue | 2 % | 3 % | | | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :--------------- | :------------------------------------------ | :------------------------------------------ | :---------------------- | :------- | | Interest expense | $2,174 | $5,606 | $(3,432) | (61)% | | Percentage of total net revenue | 1 % | 3 % | | | - Interest expense decreased due to the repurchase of $120 million aggregate principal amount of the 2025 Notes in August 2024[140] Other Income (Expense), Net Other income (expense), net, decreased by 41% for the three months ended June 30, 2025, primarily due to a $3.9 million gain from a litigation settlement in June 2024. However, it increased by 38% for the six months ended June 30, 2025, driven by foreign currency rate measurement fluctuations | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :---------------------- | :------- | | Other income (expense), net | $2,211 | $3,725 | $(1,514) | (41)% | | Percentage of total net revenue | 3 % | 4 % | | | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------- | :------- | | Other income (expense), net | $3,418 | $2,472 | $946 | 38 % | | Percentage of total net revenue | 2 % | 1 % | | | - Other income decreased in the three-month period primarily due to a $3.9 million gain from a favorable litigation settlement in June 2024, offset by foreign currency fluctuations[142] - Other income increased in the six-month period driven by foreign currency rate measurement fluctuations, offset by the $3.9 million litigation settlement gain in the prior year[143] Income Tax Provision The income tax provision increased by 8% for the three months and 52% for the six months ended June 30, 2025, compared to the same periods in 2024. This was primarily due to non-routine tax expenses recorded in the prior year and changes in the mix of taxable earnings. The company is evaluating the impact of the OBBBA on its income tax rate | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :------------------- | :-------------------------------------------- | :-------------------------------------------- | :---------------------- | :------- | | Income tax provision | $845 | $784 | $61 | 8 % | | Percentage of total net revenue | 1 % | 1 % | | | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | $ Change (in thousands) | % Change | | :------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------- | :------- | | Income tax provision | $1,613 | $1,058 | $555 | 52 % | | Percentage of total net revenue | 1 % | 1 % | | | - The increase in income tax provision was primarily attributable to non-routine tax expenses recorded in the prior year and changes in taxable earnings mix[146] - The company is evaluating the impact of the One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, on its income tax rate[146] Liquidity and Capital Resources As of June 30, 2025, Eventbrite had $490.5 million in cash and cash equivalents, with $322.0 million due to creators. The company believes existing cash and cash generated from operations will be sufficient for the next 12 months, but acknowledges risks related to advance payouts and macroeconomic conditions. A $100.0 million share repurchase program was approved in March 2024, with $50.0 million remaining | Metric | June 30, 2025 (in millions) | | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $490.5 | | Funds receivable | $25.0 | | Restricted cash | $48.0 | | Amounts due to creators | $322.0 | - The company assumes risk with advance payouts to creators, as unrecoverable amounts could arise if events are canceled, fraudulent, or creators are insolvent, potentially impacting losses beyond current estimates[148] - A $100.0 million share repurchase program was approved in March 2024, with approximately $50.0 million remaining available as of June 30, 2025[150] - Management believes existing cash and cash generated from operations will be sufficient to meet anticipated cash needs for at least the next 12 months[152] Cash Flows This section analyzes Eventbrite's cash flows from operating, investing, and financing activities, and the effect of exchange rate changes Comparison of Six Months Ended June 30, 2025 and 2024 This table compares Eventbrite's cash flow activities for the six months ended June 30, 2025, and 2024 | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :------------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by operating activities | $41,896 | $36,274 | | Net cash provided by investing activities | $23,144 | $94,596 | | Net cash used in financing activities | $(2,273) | $(41,830) | | Effect of exchange rate changes | $11,206 | $(2,741) | | Net increase in cash, cash equivalents and restricted cash | $73,973 | $86,299 | Cash Flows from Operating Activities Net cash provided by operating activities increased due to non-cash charges and favorable changes in operating assets and liabilities - Net cash provided by operating activities increased to $41.9 million for the six months ended June 30, 2025, from $36.3 million in 2024, primarily due to non-cash charges and favorable changes in operating assets and liabilities[154][155] Cash Flows from Investing Activities Net cash provided by investing activities decreased mainly due to lower maturities of short-term investments and no new purchases - Net cash provided by investing activities decreased to $23.1 million for the six months ended June 30, 2025, from $94.6 million in 2024, mainly due to lower maturities of short-term investments and no new purchases[156] Cash Flows from Financing Activities Net cash used in financing activities significantly decreased due to no common stock repurchases in 2025 - Net cash used in financing activities significantly decreased to $2.3 million for the six months ended June 30, 2025, from $41.8 million in 2024, primarily due to no common stock repurchases in 2025 compared to $36.5 million in 2024[157] Effect of exchange rate changes on cash, cash equivalents and restricted cash Exchange rate changes resulted in an increase in cash, cash equivalents, and restricted cash due to the weakening of the U.S. dollar - Exchange rate changes resulted in an $11.2 million increase in cash, cash equivalents, and restricted cash for the six months ended June 30, 2025, compared to a $2.7 million decrease in 2024, primarily due to the weakening of the U.S. dollar in 2025[159] Contractual Obligations and Commitments The company's principal commitments include obligations under Convertible Notes, operating leases for office space, and non-cancellable purchase commitments - Principal commitments consist of obligations under Convertible Notes, operating leases for office space, and non-cancellable purchase commitments[160] Off-Balance Sheet Arrangements Eventbrite does not currently have any off-balance sheet arrangements - The company does not currently have any off-balance sheet arrangements[161] Critical Accounting Policies and Estimates The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts. These estimates are evaluated on an ongoing basis, and no significant changes to accounting policies with a material impact were noted - The preparation of financial statements requires estimates and assumptions, which are based on historical experience and evaluated on an ongoing basis[162] - There have been no significant changes to the company's accounting policies that have had a material impact on the unaudited condensed consolidated financial statements[163] Item 3. Quantitative and Qualitative Disclosures About Market Risk Eventbrite is exposed to market risk from changes in interest rates on its financial instruments and foreign currency exchange rates due to international operations. However, a 10% change in either interest rates or individual currency exchange rates is not expected to have a material effect on the company's financial condition or results of operations - The company is exposed to interest rate sensitivity on cash, cash equivalents, and short-term investments, but a 10% change in market interest rates would not materially affect its financial results[165] - Eventbrite is subject to foreign currency risk due to significant ticket sales and costs denominated in foreign currencies (British Pound, Euro, Canadian Dollar, Australian Dollar), but a 10% change in individual currency exchange rates is not expected to have a material impact[166] Item 4. Controls and Procedures Management, including the principal executive and financial officers, concluded that Eventbrite's disclosure controls and procedures were effective as of June 30, 2025. There were no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance for timely and accurate reporting[168] - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[169] Part II. Other Information This part includes information on legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits Item 1. Legal Proceedings This section refers to Note 16, 'Commitments and Contingencies,' for detailed information regarding legal proceedings - For details on legal proceedings, refer to Note 16, 'Commitments and Contingencies,' in the unaudited condensed consolidated financial statements[172] Item 1A. Risk Factors While there have been no material changes to the risk factors previously disclosed in the 2024 Form 10-K, this report supplements with additional risks. These include the potential inability to generate sufficient cash flows or raise additional capital, and the adverse effects of substantial levels of indebtedness on cash flow and business operations - No material changes from the risk factors in the 2024 Form 10-K, but new factors supplement previously disclosed risks[173] - Risks include the potential inability to generate sufficient cash flows or obtain additional debt or equity financing on favorable terms, which could harm business operations[174][175] - Substantial levels of indebtedness, including Convertible Notes and a new term loan, could adversely affect cash flow, limit operational flexibility, and increase vulnerability to adverse economic conditions[180][184] Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities There were no unregistered sales of equity securities or issuer purchases of equity securities during the three months ended June 30, 2025 - There were no sales of unregistered equity securities during the three months ended June 30, 2025[186] - There were no issuer purchases of equity securities during the three months ended June 30, 2025[187] Item 3. Defaults Upon Senior Securities There were no defaults upon senior securities during the period Item 4. Mine Safety Disclosures This item is not applicable to Eventbrite, Inc Item 5. Other Information No director or officer 10b5-1 trading plans were adopted, terminated, or modified during the three months ended June 30, 2025. Details regarding the Credit Agreement are referenced in Note 22, 'Subsequent Events.' - No written trading arrangements under Rule 10b5-1 were adopted, terminated, or modified by directors or officers during the three months ended June 30, 2025[189] - Information regarding the Credit Agreement is provided in Note 22, 'Subsequent Events,' to the unaudited condensed consolidated financial statements[190] Item 6. Exhibits This section lists all exhibits filed or incorporated by reference as part of this Quarterly Report on Form 10-Q, including organizational documents, certifications, and XBRL data files - The exhibit index includes the Amended and Restated Certificate of Incorporation, Second Amended and Restated Bylaws, Form of Class A Common Stock Certificate, certifications of principal officers, and Inline XBRL documents[192] Signatures The report is duly signed by the Chief Executive Officer and Chief Financial Officer - The report is duly signed on August 7, 2025, by Julia Hartz, Chief Executive Officer (Principal Executive Officer), and Anand Gandhi, Chief Financial Officer (Principal Accounting and Financial Officer)[197]