Core Insights - StubHub's gross merchandise sales (GMS) increased from $4.8 billion in 2022 to $8.7 billion in 2024, with revenues growing from approximately $1 billion to $1.8 billion during the same period [1][2] - The company is planning to raise around $850 million through an IPO, selling 34,042,553 Class A shares at an expected price range of $22 to $25 per share, which would value the company at about $9.2 billion [3] - StubHub aims to expand its business beyond secondary ticketing into primary ticket issuance, advertising, sports merchandising, and sports betting, with a valuation of its North American secondary ticketing business at approximately $17.5 billion [9][11] Financial Performance - StubHub reported a net income of $405.2 million in 2023, but net losses of $261 million in 2021 and $2.8 million in 2024 [6] - The company generated positive cash flow from operations, with net cash flow from operating activities turning positive at $261.5 million in 2024, up from a negative $47.5 million in 2022 [6] - StubHub's cash balance at the end of 2024 was about $1 billion, which is half of its long-term debt of $2.3 billion, indicating a negative working capital balance of $1.04 billion [7] Market Position and Strategy - StubHub operates the largest global secondary ticketing marketplace, facilitating ticket sales in over 90 countries and supporting 33 languages and 48 currencies [8] - The company is focusing on signing more rights holders to make its platform the primary outlet for initial ticket sales, as seen in recent agreements with the Association of Volleyball Professionals and the Outside Lands festival [10] - StubHub is also exploring new revenue channels, including advertising, sports merchandising, and potential entry into the wider market for tours and attractions [11][12] Competitive Landscape - StubHub faces significant competition from established players like Ticketmaster in secondary ticketing, and from companies like DraftKings and Fanatics in sports betting [13] - The company must navigate challenges such as dependence on high-profile events and potential reductions in discretionary spending among consumers due to economic uncertainties [14] Strategic Focus - While StubHub has a strong brand in secondary ticket sales, it should prioritize growing this core business and be cautious about diversifying into other areas to avoid overextension [15] - The company's effective working capital management and rising revenues position it as a suitable investment candidate, provided it maintains focus on its primary business [16]