Core Insights - Young Americans in their twenties and thirties are increasingly engaging in retro hobbies, often referred to as "grandma hobbies," such as embroidery and journaling, as a way to disconnect from digital distractions and slow down their pace of life [1][2] Group 1: Trends in Hobbies - There has been a significant rise in interest in hands-on activities among young people, with a doubling of events related to scrapbooking and journaling from 2023 to 2024, according to Eventbrite [1] - Sales of cross-stitch patterns increased by 89% in May 2023 compared to the same month in the previous year, while sales of embroidery canvases rose by 88% [1] - A survey by Mintel revealed that 71% of 2,000 American adults participated in craft projects in 2024, with 86% of Generation Z identifying as crafters [1] Group 2: Social Aspects of Crafting - The Woobles company hosted a successful anniversary event in New York, attracting over 6,000 attendees, indicating a strong community interest in crafting [2] - Young professionals, such as a 29-year-old lawyer, are using embroidery as a means to unwind from their demanding work schedules, fostering social connections through shared crafting activities [2] - Crafting provides an opportunity for friends to engage in quiet, meaningful interactions, enhancing personal relationships [2]

Investment Rating - Industry View for Media & Entertainment, Telecom & Cable Services, and Communications Infrastructure is rated as In-Line [3][5]. Core Insights - The report provides a comprehensive analysis of trading multiples across various segments, including Diversified Media & Streaming, Mid-Cap Entertainment & Sport, Mid-Cap Advertising & Film, Telecom & Cable Services, and Communications Infrastructure [6][20]. - Historical performance metrics are included for sub-industries over different time frames, such as 1 Week, 1 Month, 3 Months, 12 Months, and 3 Years Year-to-Date [2][6]. Summary by Industry Segment Diversified Media & Streaming - Price to Earnings (P/E) for 2025E is 42.2x, decreasing to 27.3x by 2027E - Adjusted Price/FCF for 2025E is 49.1x, decreasing to 30.9x by 2027E - EV/EBITDA for 2025E is 46.1x, decreasing to 29.1x by 2027E - Dividend Yield is projected at 0.2% for 2025E, increasing to 0.3% by 2027E [6]. Mid-Cap Entertainment & Sport - P/E for 2025E is 57.3x, decreasing to 27.5x by 2027E - Adjusted Price/FCF for 2025E is 40.6x, decreasing to 22.3x by 2027E - EV/EBITDA for 2025E is 56.1x, decreasing to 33.4x by 2027E - Dividend Yield is projected at 1.2% for 2025E, increasing to 1.4% by 2027E [6]. Mid-Cap Advertising & Film - P/E for 2025E is 13.7x, decreasing to 11.7x by 2027E - Adjusted Price/FCF for 2025E is 12.3x, decreasing to 10.7x by 2027E - EV/EBITDA for 2025E is 14.1x, decreasing to 12.5x by 2027E - Dividend Yield is projected at 4.3% for 2025E, increasing to 4.8% by 2027E [6]. Telecom & Cable Services - P/E for 2025E is 14.7x, decreasing to 13.5x by 2027E - Adjusted Price/FCF for 2025E is 14.3x, decreasing to 10.9x by 2027E - EV/EBITDA for 2025E is 15.0x, increasing to 14.1x by 2027E - Dividend Yield is projected at 2.2% for 2025E, increasing to 2.4% by 2027E [6]. Communications Infrastructure - P/E for 2025E is 24.4x, decreasing to 29.0x by 2027E - Adjusted Price/FCF for 2025E is 27.8x, decreasing to 24.2x by 2027E - EV/EBITDA for 2025E is 28.4x, decreasing to 26.0x by 2027E - Dividend Yield is projected at 3.4% for 2025E, increasing to 3.6% by 2027E [6].

Eventbrite (EB) FY Conference Summary Company Overview - Eventbrite is a leading ticketing platform aiming to evolve into a marketplace for experiences, leveraging two decades of experience in cultivating relationships on both supply and demand sides [4][5][6]. Core Points and Arguments Marketplace Transformation - The transition to a marketplace is seen as a natural progression for Eventbrite, with significant upside potential due to existing strong brand recognition and traffic of 90 million unique users [4][5]. - The relaunch of the brand and app is expected to drive user engagement and demand generation, enhancing the platform's ability to serve creators [5][6][14]. Competitive Landscape - Eventbrite holds approximately 14% of the $28 billion global mid-market events gross bookings, with a fragmented competitive landscape where no single competitor dominates [16][19]. - The company is positioned as the second most trafficked site after Ticketmaster, indicating strong market presence [20]. Industry Growth - The live experiences market is expected to continue growing, driven by increasing consumer interest in human connection and live events [17][18]. - The company anticipates that the market will benefit from tailwinds, suggesting a positive outlook for growth [18]. Financial Discipline and Cost Management - Eventbrite is focused on maintaining operational discipline and controlling expenses, with a goal to return to growth without relying heavily on performance marketing [10][12][55]. - The company aims to grow revenue faster than operating expenses, with a focus on margin expansion through efficient cost management [56]. Revenue Components - Marketplace revenue, which currently makes up about 8% of total revenue, includes premium subscription services and advertising, with advertising expected to become the largest component over time [36][37]. - The take rate is expected to increase as the company grows volume and market share, although the timing and extent of this increase will be carefully managed to maintain positive relationships with creators [47][48]. Creator Engagement and Recovery - The company experienced a loss of creators due to the introduction of organizer fees, which have since been reversed. Efforts are underway to win back lost creators through product enhancements and targeted outreach [25][26][27][30]. - The sales team is expected to play a crucial role in re-engaging creators and driving growth in paid ticket volume [34][35]. Capital Allocation and Financial Position - Eventbrite has $551 million in cash, with $241 million available for liquidity after accounting for creator payables. The company is positioned to manage its debt effectively while exploring non-dilutive financing options [58][60][62]. - The focus is on balancing the cost of debt with the flexibility it provides, with potential share buybacks considered once financial stability is demonstrated [62][63]. Other Important Insights - The company is optimistic about the potential for increased awareness and interest in live experiences, particularly with competitors like Airbnb entering the space, which could benefit Eventbrite [24]. - The emphasis on community features and user engagement within the app is seen as critical for driving demand and enhancing the overall user experience [14][15]. This summary encapsulates the key points discussed during the Eventbrite FY Conference, highlighting the company's strategic direction, market positioning, and financial outlook.

Group 1 - Eventbrite reported a quarterly loss of $0.07 per share, which was better than the Zacks Consensus Estimate of a loss of $0.08, but worse than the loss of $0.05 per share a year ago, indicating an earnings surprise of 12.50% [1] - The company posted revenues of $73.83 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.90%, but down from $86.25 million in the same quarter last year [2] - Eventbrite shares have declined approximately 35.1% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] Group 2 - The earnings outlook for Eventbrite is mixed, with the current consensus EPS estimate for the coming quarter at -$0.07 on revenues of $73.39 million, and -$0.28 on revenues of $300.92 million for the current fiscal year [7] - The Zacks Industry Rank indicates that the Internet - Services sector is currently in the bottom 40% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $73.8 million, which is at the high end of the guidance range and represents a 14% year-over-year decline primarily due to the elimination of organizer fees [6][20] - Adjusted EBITDA was $4.6 million, reflecting a margin of 6.2%, marking the fifteenth consecutive quarter of positive adjusted EBITDA [6][23] - Operating expenses decreased by 14% year-over-year to $59 million, the lowest since 2022, indicating a focus on expense discipline [14][22] Business Line Data and Key Metrics Changes - Paid ticket volume was down 7.7% year-over-year, but showed improvement compared to previous quarters, which were down 10% and 13.6% [7][20] - Eventbrite Ads revenue increased by 30% year-over-year, indicating strong performance in this segment [12][20] - The Timed Entry solution continues to gain traction, contributing to the overall growth strategy [10][39] Market Data and Key Metrics Changes - Total average monthly app users increased by 13% year-over-year, with Discovery users rising by 16% [9] - The company is focusing on high-intent categories such as music, food and drink, and performing arts, which are expected to drive further growth [43] Company Strategy and Development Direction - The company aims to reintroduce Eventbrite as a platform for discovering live experiences, not just ticketing, through a new app and brand campaign [8] - There is a strong emphasis on improving user engagement and conversion rates through app enhancements and strategic partnerships, such as with TikTok [31][56] - The focus on high-quality creators and events is seen as a key driver for future growth, with a strategy to educate creators on optimizing their event listings [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery trajectory, with expectations for returning to paid ticket volume growth in the second half of the year [15][19] - The company is monitoring macroeconomic conditions but believes it has resilience due to its pricing model and the nature of its services [58] Other Important Information - The company announced changes in its executive team, with key leadership transitions that are expected to maintain operational continuity [16][18] - Liquidity remains strong, with $550 million in cash and $240 million in available liquidity, up from $230 million at year-end [15][24] Q&A Session Summary Question: Is the shift to more app-based MAUs an intentional strategy? - Management confirmed that the focus on app-based users is intentional, as app users show higher retention and engagement compared to web users [30] Question: What is the outlook for stock-based compensation? - The CFO indicated that the current stock-based compensation is a good run rate for the remainder of the year, with potential improvements [33] Question: What is driving the growth in Eventbrite Ads? - Management highlighted that Eventbrite Ads is integrated into the marketplace and is performance-driven, leading to a 30% year-over-year growth [36] Question: What is the performance of the Eventbrite app in terms of event categories? - Management noted strong growth in categories where they executed their strategy, particularly in music and performing arts [43] Question: What are the expectations for timed entry events? - Management stated that timed entry expands the addressable market, focusing on attractions and experiences that occur frequently [44] Question: How is the TikTok partnership performing? - Management mentioned that social sharing tools for creators are crucial for driving demand, with TikTok being a significant platform for this strategy [46] Question: What is the philosophy behind the app redesign? - The redesign aims to make Eventbrite the easiest place to find live experiences, enhancing user engagement and conversion to ticket sales [56]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $73.8 million, at the high end of guidance, but down 14% year over year primarily due to the elimination of organizer fees [5][19] - Adjusted EBITDA was $4.6 million, representing a margin of 6.2%, marking the fifteenth consecutive quarter of positive adjusted EBITDA [22] - Operating expenses decreased by 14% year over year to $59 million, the lowest since 2022, reflecting ongoing expense discipline [13][21] Business Line Data and Key Metrics Changes - Paid ticket volume was down 7.7% year over year, showing improvement from previous quarters where declines were 10% and 13.6% [6][19] - Eventbrite Ads revenue increased by 30% year over year, indicating strong adoption and effectiveness among creators [11][34] Market Data and Key Metrics Changes - Total average monthly app users increased by 13% year over year, with discovery users rising by 16% [8][30] - The company is focusing on improving event matching to enhance user experience and engagement across its platform [9] Company Strategy and Development Direction - The company aims to reintroduce Eventbrite as a destination for live experiences, not just ticketing, through a new app and brand campaign [7] - There is a strategic focus on high-intent users and enhancing the app experience to drive ticket sales and creator engagement [29][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to paid ticket volume growth in the second half of the year, despite ongoing challenges from last year's organizer fee reversal [6][14] - The company is monitoring macroeconomic conditions but believes it has resilience due to its pricing model and the nature of its services [57][58] Other Important Information - The company announced changes in its executive team, with key leadership transitions that are expected to maintain operational continuity [15][16] - The liquidity position remains strong with $550 million in cash and $240 million in available liquidity, up from $230 million at year-end [14][23] Q&A Session Summary Question: Is the shift to more app-based MAUs an intentional strategy? - Management confirmed that the focus on app users is intentional, as app users are more engaged and likely to purchase tickets compared to web users [28][30] Question: What is the outlook for stock-based compensation? - Management indicated that the Q1 stock-based compensation is a good run rate for the remainder of the year, with potential improvements [32] Question: What is driving the growth in Eventbrite Ads? - The growth is attributed to the ads being native to the marketplace and performance-driven, with ongoing education for creators on effective usage [34][36] Question: What is the performance of the Eventbrite app in terms of event categories? - Management noted strong growth in categories where they executed their strategy, particularly in music, food and drink, and performing arts [41] Question: What is the strategy for increasing paid creator accounts? - Management highlighted that while the overall number of paid creators is recovering slowly, there is growth in high-quality segments that are more monetizable [48][50] Question: What is the philosophy behind the app redesign? - The redesign aims to enhance user engagement and conversion to ticket sales, making Eventbrite the easiest place to find live experiences [55] Question: Is there an impact from macro conditions on the full-year outlook? - Management stated that they are not currently seeing clear impacts from macro pressures but are monitoring the situation closely [57][58]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $73.8 million, which is at the high end of the guidance range and represents a 14% year-over-year decline primarily due to the elimination of organizer fees [6][20] - Adjusted EBITDA was $4.6 million, reflecting a margin of 6.2%, marking the fifteenth consecutive quarter of positive adjusted EBITDA [6][23] - Operating expenses decreased by 14% year-over-year to $59 million, the lowest since 2022, indicating a focus on expense discipline [15][22] Business Line Data and Key Metrics Changes - Paid ticket volume was down 7.7% year-over-year, showing improvement from previous quarters where declines were 10% and 13.6% [7][20] - Eventbrite Ads revenue increased by 30% year-over-year, demonstrating strong performance and adoption among creators [13][20] Market Data and Key Metrics Changes - Total average monthly app users increased by 13% year-over-year, with discovery users rising by 16% [10][20] - The company is focusing on improving event matching within its marketplace to enhance user experience and engagement [11] Company Strategy and Development Direction - The company aims to reintroduce Eventbrite as a platform for discovering live experiences, not just ticketing, through a new app and brand campaign [8] - There is a strategic focus on enhancing the consumer app experience, which is expected to drive higher engagement and ticket sales [30][60] - The introduction of timed entry capabilities is seen as a significant opportunity for growth, expanding the addressable market [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery trajectory, reaffirming the full-year financial outlook despite macroeconomic uncertainties [19][61] - The company is monitoring market sentiment closely but believes it has resilience due to its pricing structure and the nature of its offerings [61][62] Other Important Information - The company announced changes in its executive team, with key leadership transitions that are expected to maintain operational continuity [17] - The liquidity position remains strong, with $550 million in cash and $240 million in available liquidity, up from $230 million at year-end [16][24] Q&A Session Summary Question: Is the shift to more app-based MAUs an intentional strategy? - Management confirmed that the focus on app-based users is intentional, as app users show higher engagement and conversion rates compared to web users [30] Question: What is supporting the growth in Eventbrite Ads? - The growth is attributed to the native integration of ads within the marketplace, which is performance-driven and creator-led, indicating strong product-market fit [36] Question: What is the strategy for increasing paid creator accounts? - While the overall number of paid creators is recovering slowly, there is growth in high-quality segments, particularly among large and frequent creators [52] Question: What are the goals of the app redesign? - The redesign aims to enhance user engagement and conversion to ticket sales, making Eventbrite the go-to platform for discovering live experiences [60] Question: How is the company addressing macroeconomic conditions? - Management noted that they are not currently seeing significant impacts from macro pressures and believe their business model offers resilience [61][62]

Q1 2025 Results - Paid tickets reached 19.6 million, a 7.7% year-over-year decrease, showing a 250 basis points improvement from Q4 2024's 10.2% decline[19] - Gross ticket sales totaled $775 million, down 9% year-over-year[11] - Net revenue was $73.8 million, a 14% decrease year-over-year, attributed to lower marketplace revenue (-48% Y/Y) and ticketing revenue (-9% Y/Y)[27] - Net loss amounted to $6.6 million, compared to a $4.5 million net loss in the prior year[31] - Adjusted EBITDA was $4.6 million, with an Adjusted EBITDA margin of 6.2%[34] - Operating expenses decreased by 14% year-over-year to $59.2 million[37] User Engagement - Average Monthly Active Users (MAUs) reached 87.6 million, a 3% year-over-year increase, driven by app MAUs growth after the rebrand and app refresh[23] - Average app monthly active users increased 13% year-over-year[21] Financial Position - Available liquidity stood at $241 million after repaying $120 million principal of 2025 notes[43, 42] - Total debt outstanding is $358 million[42] - Stock-based compensation decreased by 27% year-over-year[40] Business Outlook - The company anticipates Q2 2025 net revenue to be in the range of $70 million to $73 million with an Adjusted EBITDA margin in the 3% to 4% range[46] - The company expects fiscal year 2025 net revenue in the range of $295 million to $310 million with an Adjusted EBITDA margin in the mid-single digit percentage range[47]

PART I. FINANCIAL INFORMATION [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) 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 CEO[23](index=23&type=chunk)[33](index=33&type=chunk) - 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 periods[28](index=28&type=chunk) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) 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](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) 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](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) 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](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) 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 tools[36](index=36&type=chunk)[38](index=38&type=chunk)[42](index=42&type=chunk) - 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 million**[70](index=70&type=chunk) - 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 2025[85](index=85&type=chunk) - Stock-based compensation expense was **$10.2 million** in Q1 2025, a **decrease from $14.0 million** in Q1 2024[92](index=92&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) 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](index=20&type=section&id=Key%20Business%20Metrics%20and%20Non-GAAP%20Financial%20Measures) 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](index=22&type=section&id=Results%20of%20Operations) 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 plan[109](index=109&type=chunk) - 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 plan[113](index=113&type=chunk) - Product development expenses **decreased by 22% YoY** due to reduced personnel costs, including stock-based compensation[116](index=116&type=chunk) - Sales, marketing and support expenses **increased by 3% YoY**, primarily due to higher personnel costs from expanding the sales organization[118](index=118&type=chunk) - General and administrative expenses **decreased by 21% YoY**, driven by lower personnel costs and professional services spend[120](index=120&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) 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 million**[131](index=131&type=chunk) - 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, 2025[132](index=132&type=chunk) - The company has remaining obligations for its **2025 Notes (due Dec 2025)** and **2026 Notes (due Sep 2026)**[133](index=133&type=chunk) - As of March 31, 2025, **$50.0 million remained available** under the company's **$100.0 million share repurchase program**[134](index=134&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) 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 fluctuate[146](index=146&type=chunk) - 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 risk[147](index=147&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) 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 **effective**[149](index=149&type=chunk) - 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 reporting[150](index=150&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) 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 statements[153](index=153&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) 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 provided[154](index=154&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) 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, 2025[156](index=156&type=chunk) - There were **no issuer purchases of equity securities** during the three months ended March 31, 2025[157](index=157&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) 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 2025[159](index=159&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) 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 Officer[161](index=161&type=chunk)[162](index=162&type=chunk)

[First Quarter 2025 Financial Results](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) Eventbrite reported Q1 2025 results meeting guidance, with sequential improvements in key metrics despite a revenue decline due to fee elimination [Management Commentary](index=1&type=section&id=Management%20Commentary) 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](index=3&type=chunk) - 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](index=3&type=chunk) [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) 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](index=5&type=chunk) - Eventbrite Ads continued to grow rapidly, with revenue up **30% year-over-year**[5](index=5&type=chunk) - Average Monthly Active Users grew to nearly **88 million**, with app users increasing by **13% year-over-year**[2](index=2&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) 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](index=2&type=section&id=Fiscal%20Year%20and%20Second%20Quarter%202025%20Guidance) 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](index=8&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) 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](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) 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](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) 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](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) 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](index=8&type=section&id=Non-GAAP%20Financial%20Measures) 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](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) 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](index=9&type=section&id=About%20Non-GAAP%20Financial%20Measures) 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](index=18&type=chunk) - 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](index=19&type=chunk) - The company acknowledges limitations of Adjusted EBITDA, noting it does not reflect capital spending, replacement of depreciated assets, or debt service costs[20](index=20&type=chunk)