Eventbrite(US:EB)2025-11-06 23:00Financial Data and Key Metrics Changes - In Q3, the company reported net revenue of $71.7 million, down 8% year-over-year, primarily due to lower ticketing revenue and the elimination of organizer fees, partially offset by a 38% increase in revenue from Eventbrite Ads [18][19] - Adjusted EBITDA was $8.4 million, representing a 58% year-over-year increase and an adjusted EBITDA margin of 11.7% [20] - Q3 net income was $6.4 million, a significant improvement from a net loss of $3.8 million in the previous year [20] Business Line Data and Key Metrics Changes - Paid ticket volume totaled 19.1 million, down 3% year-over-year, but showed a 400 basis points improvement from the 7% decline in Q2 [18] - Eventbrite Ads revenue grew 38% year-over-year, contributing positively to overall revenue despite the decline in ticketing revenue [18][19] Market Data and Key Metrics Changes - The company reported a nearly 4% increase in new paid creator acquisition in Q3, indicating a strengthening marketplace [8] - The average monthly users reached 92 million in Q3, with consumers and creators across 180 countries [9] Company Strategy and Development Direction - The company aims to stabilize paid ticket volumes and creator activity, with a focus on disciplined execution to support revenue growth and margin expansion in 2026 [6][10] - Strategic initiatives include enhancing creator tools, improving consumer engagement, and expanding market share globally [10][15] - The company plans to leverage AI for product innovation, focusing on premium tools for larger creators and enhancing consumer personalization [30][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational momentum, expecting to return to monthly year-over-year paid ticket volume growth within the first few months of 2026 [23][24] - The company anticipates net revenue for Q4 to be between $71.5 million and $74.5 million, with an adjusted EBITDA margin of 8-9% [23] Other Important Information - Operating expenses were $49.6 million, down 20% year-over-year, marking the lowest level in four years [19] - The company ended the quarter with $511 million in cash and cash equivalents, with total debt reduced to $175 million [21] Q&A Session Summary Question: How is the company thinking about the right level of investment to drive growth in 2026? - Management emphasized a disciplined approach to operating expenses while reallocating funds to areas that drive growth, balancing cost reduction with investment in growth initiatives [26][28] Question: How does the company view the impact of GenAI on product innovation? - The company plans to focus on premium tools for larger creators, using AI to enhance marketing performance and consumer engagement, and expanding globally [30][33] Question: What is the company's stance on the ticketing ecosystem amid recent industry discussions? - The company aims to democratize the ticketing industry, advocating for fair pricing and transparency while continuing to invest in creator tools and consumer-friendly practices [36][38] Question: Can you provide insights on the sequential gross margin improvement and its implications? - Management expects modest continued improvement in gross margin, driven by the increasing contribution of higher-margin Eventbrite Ads to overall revenue [40][43]