Eventbrite(US:EB)2024-08-10 04:40Financial Data and Key Metrics Changes - Revenue grew 7% year-over-year to $84.6 million in Q2 2024, which was towards the lower end of the outlook range [5][17] - Adjusted EBITDA was $8.5 million, representing just over 10% of revenue, while net income was $1.1 million compared to a net loss of $3 million a year ago [5][19] - Total operating expenses were $66.4 million, up from $61 million in the same quarter last year, with adjusted EBITDA including a $4 million benefit from a legal settlement [19] Business Line Data and Key Metrics Changes - Paid tickets declined by 9% year-over-year, totaling $21.2 million, while total tickets dropped by 16% [6][17] - Organizer fees and advertising revenue grew significantly, but ticketing revenue, which constitutes the majority, was down 4% year-over-year [17] - The average ticket price increased to $3.98 from $3.39 last year, and the revenue take rate improved to 10.1% from 8.9% [18] Market Data and Key Metrics Changes - Mobile app users increased by 22% year-over-year, contributing to a total of 93 million monthly average users across web and mobile platforms [11] - Eventbrite Ads revenue reached $2.9 million, more than doubling year-over-year, with a 20% increase in advertiser count [13][44] Company Strategy and Development Direction - The company is reintroducing a free tier with no marketplace fees to attract new creators and reconnect with those who left due to pricing concerns [8][23] - A premium marketplace is being developed to offer enhanced event visibility and support for creators, with 35,000 creators currently subscribed to the Pro plan [9] - The company is focused on strengthening consumer experience and growing the network, while also managing operating costs through a reduction in team size [10][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges with the new creator pricing model impacting short-term performance but emphasized a commitment to adapt based on creator feedback [5][34] - The revised revenue outlook for 2024 anticipates third-quarter revenue between $74 million and $77 million, and full-year revenue between $318 million and $325 million [22] - Management expressed confidence in the long-term strategy to transform Eventbrite into a two-sided marketplace, despite current headwinds [16][26] Other Important Information - The company has completed $39 million in share repurchases, reducing shares outstanding by approximately 7% since the start of the year [21] - New executive appointments were announced, including Lanny Baker as Chief Operating and Financial Officer and Samantha Wu as Chief Marketing Officer [14][15] Q&A Session Summary Question: Context on revised outlook and visibility - Management indicated that the paid ticket volume is expected to continue softening in the second half of 2023, with a modest uplift anticipated from the introduction of the free tier [29][30] Question: Decision to roll back organizer fees - The decision was driven by clear data and feedback from creators, indicating that the previous fee structure was too complex and did not align with the value delivered [34] Question: Sales-driven creator growth - The sales team has seen a 60% year-over-year increase in new bookings, with a focus on acquiring strategic inventory based on consumer demand [36] Question: TikTok partnership monetization - The TikTok integration is currently a distribution partnership aimed at driving traffic to event listings, with monetization strategies to be developed as traction is gained [43] Question: Advertising revenue in the quarter - Advertising revenue for Q2 2024 was $2.9 million, reflecting strong growth and momentum in advertiser count [44]