Company Overview - Insight Holdings Group disclosed a new position in StubHub Holdings, acquiring approximately $57.9 million of stock, representing 3.4 million shares as of September 30 [2][3][7] - StubHub's shares were priced at $13.95, down about 40% from its September IPO price of $23.50 [4] - As of November 14, StubHub's market capitalization was $4.91 billion, with a revenue of $1.80 billion and a net income of -$54.83 million [5] Business Model - StubHub operates a global digital marketplace for secondary ticket sales across various live events, generating revenue primarily from transaction fees [9] - The company connects buyers and sellers, facilitating secure and efficient ticket resale transactions, focusing on event-goers seeking access to sold-out or high-demand entertainment [10] Financial Performance - In the third quarter, StubHub generated $2.4 billion in gross merchandise sales, an 11% year-over-year increase, with growth accelerating to 24% when excluding the impact of the Taylor Swift tour [11] - Revenue rose 8% to $468 million, while adjusted EBITDA increased by 21% to $67 million, indicating improving operating leverage as scale increases [11] - The headline GAAP loss was $1.3 billion, primarily due to a one-time $1.4 billion stock-based compensation charge related to the IPO, not reflecting a deterioration in the underlying business [12] Strategic Positioning - StubHub used IPO proceeds to reduce approximately $750 million of debt, lowering net leverage to 3.9 times trailing EBITDA, which is a positive indicator for long-term holders [12] - The new position by Insight Holdings is viewed as a measured bet on marketplace resilience, balance sheet repair, and steady margin expansion rather than a short-term trade [13]
Why a $58 Million Bet on StubHub Stock Still Makes Sense Despite a 40% Post-IPO Drop in Share Price