Eventbrite(US:EB)2021-08-04 16:00Financial Position - As of June 30, 2021, cash and cash equivalents were $331.8 million, an increase from $181.1 million as of December 31, 2020[53] - Funds receivable amounted to $15.2 million as of June 30, 2021, compared to $10.0 million as of December 31, 2020[56] - As of June 30, 2021, net accounts receivable increased to $1,156,000 from $458,000 as of December 31, 2020, reflecting a significant improvement in collection capabilities[68] - The balance of creator signing fees, net decreased to $5,523,000 as of June 30, 2021, down from $16,750,000 as of June 30, 2020, indicating a reduction in exclusive ticketing and payment processing rights[70] - Creator advances, net decreased to $3,670,000 as of June 30, 2021, compared to $11,418,000 as of June 30, 2020, showing a decline in pre-event funding to creators[74] - Long-term debt as of June 30, 2021, totaled $352,552,000, consisting of $212,750,000 in convertible notes due 2026 and $150,000,000 in convertible notes due 2025[81] - The carrying amount of the Company's goodwill was $174.4 million as of June 30, 2021, with no impairment required due to COVID-19[113] Revenue and Operating Performance - Revenue is recognized when control of the promised goods or services is transferred to customers, primarily from ticketing and payment processing[45] - Total net revenue for the three months ended June 30, 2021, was $46.3 million, compared to $8.4 million for the same period in 2020, reflecting a 451.2% increase[151] - International net revenue for the three months ended June 30, 2021, was $10.1 million, up from $2.1 million in the same period of 2020, representing a 372.0% increase[151] - The net loss for the three months ended June 30, 2021, was $(20.5) million, or $(0.22) per share, compared to a net loss of $(38.6) million, or $(0.44) per share for the same period in 2020[144] - Adjusted EBITDA for the three months ended June 30, 2021, was $(341) thousand, an improvement from $(20,620) thousand in the same period of 2020[164] - Gross margin for the three months ended June 30, 2021, improved to 61% from a negative 20% in the same period of 2020[169] Expenses and Cost Management - Operating expenses for the three months ended June 30, 2021, totaled $46,487 thousand, compared to $34,446 thousand in the same period of 2020[167] - Sales, marketing and support expenses for the three months ended June 30, 2021 increased by $9.4 million or 307% compared to the same period in 2020, largely due to changes in chargebacks and refunds reserve[184] - General and administrative expenses for the three months ended June 30, 2021 increased by $1.3 million or 6% compared to the same period in 2020, primarily due to increased accruals for existing litigation[188] - The decrease in refunds reserves during the six months ended June 30, 2021, was $19.4 million, driven by a reduction in COVID-related event cancellations[173] - Product development expenses for the three months ended June 30, 2021 increased by $1.3 million or 9% compared to the same period in 2020, primarily driven by employee-related costs[181] Debt and Financing Activities - The company recorded a loss on debt extinguishment of $50.0 million during the six months ended June 30, 2021, primarily due to the write-off of unamortized debt discount and issuance costs[198] - The company issued $150.0 million aggregate principal amount of 5.000% convertible senior notes due 2025, with net proceeds of $144.3 million after deducting debt issuance costs[85] - The company issued $212.75 million aggregate principal amount of 0.750% convertible senior notes due 2026, with net proceeds of $207.0 million after deducting debt issuance costs[98] - The effective interest rate of the 2025 Notes is 5.8%, with cash interest recorded at $3.7 million during the six months ended June 30, 2021[88] - The effective interest rate of the 2026 Notes is 1.3%, with cash interest recorded at $0.5 million and amortization of debt issuance costs at $0.3 million during the six months ended June 30, 2021[104] COVID-19 Impact - The Company temporarily suspended its advanced payouts program on March 11, 2020, due to the COVID-19 pandemic[58] - The Company has made significant estimates related to chargebacks and refunds due to the COVID-19 pandemic, impacting net revenue and advanced payouts[39] - The Company continues to experience significant impacts from the COVID-19 pandemic, affecting net revenue, advanced payouts, and creator fees[38] - Uncertainties surrounding COVID-19 have led the Company to make significant estimates in its financial statements, particularly regarding chargebacks and refunds[39] Stock-Based Compensation - As of June 30, 2021, there were 13,404,431 outstanding stock options with a weighted average exercise price of $10.73[138] - The total unrecognized stock-based compensation expense related to stock options outstanding was $29.0 million, to be recognized over a weighted-average period of 2.5 years[139] - The Company’s stock options granted during the six months ended June 30, 2021, totaled 826,951[138] - As of June 30, 2021, the total unrecognized stock-based compensation expense related to RSUs outstanding was $67.3 million, to be recognized over a weighted-average period of 3.0 years[141] - For the three months ended June 30, 2021, total stock-based compensation expense was $12.3 million, compared to $9.6 million for the same period in 2020, representing a 28.2% increase[142]