Eventbrite(US:EB)2024-11-09 10:41Financial Data and Key Metrics Changes - The company reported Q3 2024 revenue of $77.8 million, exceeding the outlook range of $74 million to $77 million, but down 5% year-over-year due to ticket volume headwinds [28][29] - Ticketing revenue decreased by 11% year-over-year, partially offset by a doubling in revenue from organizer fees and Eventbrite ads [28] - Adjusted EBITDA was reported at $5.3 million, which includes $5.4 million in severance costs; excluding these costs, adjusted EBITDA would have been $10.8 million [35] - Net loss for Q3 2024 was $3.8 million, an improvement from a net loss of $9.9 million in the same period in 2023 [34] Business Line Data and Key Metrics Changes - The total number of paid creators declined by 12% year-over-year to 163,000 in Q3 2024 [29] - Events per creator increased by 3% year-over-year, while tickets per event declined by 5% [30] - The average ticket price increased by 3% year-over-year to $40.30, with revenue per ticket rising to $3.97 from $3.57 a year ago [30][31] Market Data and Key Metrics Changes - The number of consumers searching for local events grew by nearly 20% compared to the previous year [23] - Monthly active users reached 92.5 million, reflecting a 20% increase in local event searches [55] Company Strategy and Development Direction - The company aims to return to growth in its core ticketing business by attracting more creators and events to its marketplace [9] - A new free tier was introduced to enhance creator acquisition, which has begun to show positive impacts [29] - The company is focusing on becoming a consumer-centric brand targeting 21 to 35-year-olds, referred to as "Social Scouts" [21] - Strategic partnerships, such as with TikTok, are being leveraged to reach younger audiences and enhance event discovery [23][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver increasing value for creators, consumers, and shareholders, citing strong cash flow and reduced leverage [27][40] - The company expects Q4 2024 revenue to be within a range of $74 million to $77 million, with full-year revenue projected between $322 million and $326 million [38] Other Important Information - The company announced a leadership change, appointing Anand Gandhi as the new Chief Financial Officer [26] - The company has completed $39 million in share repurchases year-to-date, reducing shares outstanding by approximately 7% since the start of the year [37] Q&A Session Summary Question: Insights on paid creators who left during the fee transition - Management noted that many paid creators moved to homegrown solutions or startup competitors, but they are confident in winning them back through marketing initiatives and improved platform features [45][46] Question: Impact of the free tier on paid creator growth - Management indicated that the free tier has already brought back over 13,000 creators, and they expect continued growth in creator adoption and retention [53] Question: TikTok partnership and its impact - Management confirmed that daily impressions from TikTok remain stable and highlighted strong growth in event categories like music and food and drink [61][64]