Eventbrite(US:EB)2020-11-08 11:56Financial Data and Key Metrics Changes - Revenue for Q3 2020 was $21.9 million, a significant improvement from $8.4 million in Q2 2020, representing a 161% growth from the previous quarter [22] - Adjusted EBITDA for Q3 2020 was $4 million, including $13.4 million in accounting benefits related to COVID-19, compared to an adjusted EBITDA loss of $26 million in Q2 2020 [22][23] - Paid ticket volume was $9.2 million in Q3 2020, down 66% year-over-year but up 96% from Q2 2020 [24] Business Line Data and Key Metrics Changes - Total ticket volume exceeded $60 million in Q3 2020, nearly a 50% increase from Q2 2020 [10] - The number of events hosted on the platform reached 1.3 million, representing a 112% increase compared to Q3 2019 [9] - Paid tickets for in-person events more than tripled from Q2 to Q3, while paid tickets for virtual events increased nearly 30 times year-over-year [11] Market Data and Key Metrics Changes - The company attracted 130,000 new creators to the platform since the end of March 2020, indicating a growing market presence [19] - The advanced payout balance decreased to $220 million by November 4, 2020, down from $253 million at the end of June 2020 [31] Company Strategy and Development Direction - The company is focusing on self-service solutions and has made significant expense reductions to improve profitability [24][30] - Eventbrite aims to serve independent creators and help them grow their businesses, positioning itself to lead the recovery of the live experience economy [20][43] - The company is adapting its platform to meet the needs of creators during the pandemic, including offering solutions for online events [56][71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for live events, citing the resilience and creativity of creators [43] - The company anticipates that the recovery of in-person events will take time, with continued pressure on near-term revenue [40] - Management noted that while online events have gained traction, the percentage of ticket volume for virtual events remains higher than pre-COVID levels [66] Other Important Information - The company has implemented structural changes to reduce operating costs, with total operating expenses down 44% year-over-year [29][30] - A new advanced payout program has been piloted, extending $8 million in advance payouts against total transacted ticket proceeds of $320 million [39] Q&A Session Summary Question: How does the company view the overall recovery in the industry? - Management noted that in markets where the virus has been contained, event volume and paid ticket volume have quickly returned to pre-COVID levels, particularly for smaller events [46] Question: What is the timeline for recovery? - Management stated that it is difficult to predict a specific timeline for recovery but emphasized readiness to support creators as they pivot to online events or prepare for in-person events [49] Question: Who are the new creators added to the platform? - Management highlighted that new creators include those needing solutions for capacity management and those hosting online events, indicating a diverse range of activities [56] Question: What is the competitive dynamic in the ticketing platform landscape? - Management acknowledged increased competition in the online event space but emphasized Eventbrite's focus on small to mid-market creators and its long-standing presence in the industry [70][72]