Eventbrite(US:EB)2022-07-29 02:59Financial Data and Key Metrics Changes - Revenue increased by 43% year-over-year, reaching the highest level since Q4 2019, with a sequential growth of 18% from Q1 [26][25] - Adjusted EBITDA profitability was achieved for the fourth consecutive quarter, with adjusted EBITDA of $4.7 million and an adjusted EBITDA margin of 7% [32][36] - Gross margin improved to 65.1%, up from 61% in the same period last year [33] - Total operating expenses rose to $56 million, a 25% increase year-over-year, primarily due to investments in product and engineering teams [33][34] Business Line Data and Key Metrics Changes - The number of paid creators grew by 48% year-over-year, reaching almost 170,000, the highest level since early 2020 [27] - Total paid events increased by 7% year-over-year, totaling over 0.5 million events [29] - Paid ticket volume grew by 37% year-over-year, totaling 21.9 million tickets sold in Q2 [30] - Average ticket value remained roughly flat at $39, with a slight adverse impact from currency fluctuations [31] Market Data and Key Metrics Changes - The UK and Australia markets saw ticket sales 15% to 20% higher than pre-pandemic levels, with North America being the fastest-growing primary market [10] - Consumer demand for live events remained strong, with a 58% increase in search volume and a 37% increase in paid tickets on the platform [9] Company Strategy and Development Direction - The company is focused on enhancing its product offerings, with plans to release over 50 new features and product enhancements in the year [14] - A strong emphasis on frequent creators and self-service product models is expected to drive sustainable growth [21] - The introduction of new payment options like Google Pay aims to improve checkout conversion and enhance user experience [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the year, anticipating continued strong consumer demand for live events [19] - A cautious outlook was noted regarding potential macroeconomic impacts on creators, including inflation and labor shortages [39][88] - The company aims for long-term revenue growth of 20% per year or better, with adjusted EBITDA margins of at least 20% [41] Other Important Information - The company launched the Creator Collective and the RECONVENE Accelerator to support creators and new event professionals [15][18] - Eventbrite was certified as a Great Place to Work, reflecting a strong company culture [16] Q&A Session Summary Question: Insights on Q3 and creator environment - Management has not yet seen macroeconomic impacts on creators but remains cautious due to potential future challenges [45] Question: Updates on Boost product adoption - The company reported a 16% increase in campaign creation due to recent updates, indicating positive trends in adoption [50] Question: Demand linearity and seasonality - Historical seasonality indicates a typical rise in demand from July to September, but current conditions may lead to a more cautious outlook [59] Question: Eventbrite ads rollout - Demand from creators for Eventbrite ads is strong, with plans to expand the beta testing phase based on positive early feedback [62] Question: Creator confidence amid rising costs - Management noted that creators may face challenges due to inflation and labor shortages, but consumer demand remains strong [88]