Eventbrite(US:EB)2019-11-08 04:14Financial Data and Key Metrics Changes - Total company revenue for Q3 2019 was $82 million, representing an 11% year-over-year growth, which was better than expected [11][19] - Adjusted EBITDA loss was in line with expectations, including $3.8 million in expenses related to resource realignment [13][25] - Gross profit grew 16% year-over-year to $49 million, with gross margins rising by 2 points year-over-year [19] Business Line Data and Key Metrics Changes - The Self Sign-On channel experienced a 23% growth in paid ticket volume, contributing significantly to revenue growth [11][19] - The international markets showed strong growth, with events outside the U.S. accounting for 37% of total paid tickets and 28% of net revenue, up from 35% and 24% respectively in the prior year [12] Market Data and Key Metrics Changes - The U.K., Canada, Australia, and Brazil were highlighted as key international markets driving growth [12] - Self Sign-On in international markets saw a 30% increase in paid ticket volume, indicating strong demand and market penetration [36] Company Strategy and Development Direction - The company is focused on enhancing its platform to support event creators and is executing a realignment plan to operate more efficiently [8][15] - There is a commitment to building a platform that enables event creators to run their businesses efficiently, with new functionalities being added to attract and retain customers [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects and the opportunity to build on their leadership position in the ticketing and events mid-market [16][26] - There is caution regarding customer retention in the music category due to recent migrations, but management is focused on earning loyalty from these customers [28][30] Other Important Information - The company has nearly completed the migration of Ticketfly customers to Eventbrite Music and is focused on strengthening relationships with these new customers [15] - The balance sheet remains strong with $186 million in available liquidity and no debt [26] Q&A Session Summary Question: How did churn play out in Q3 and what are the expectations for Q4? - Management indicated that customer retention in the music category was in line with expectations, but they are cautious about retention in the near term due to recent migrations [28][29] Question: What is the outlook for potential losses in 2020? - Management is focusing on the total music landscape and is committed to helping transitioned customers find their footing on the new platform [30] Question: Can you quantify the annual revenues of Ticketfly's larger customers? - Management did not provide specific annual revenue figures but noted that the majority of migrations occurred before Q3 2019 [34][35] Question: What is driving the strong growth in Self Sign-On? - Self Sign-On is the core business, and the growth is attributed to the platform's ability to meet the needs of various creators [36][37] Question: What are the implications of the relationship with Square? - Management views Square as a valuable partner and is exploring opportunities to integrate their solutions into the Eventbrite platform [40][41] Question: How is the uptake of add-ons impacting revenue? - Management reported positive adoption of add-ons, which allow event creators to sell additional products, contributing to revenue growth [43]