Eventbrite(US:EB)2023-05-10 03:18Financial Data and Key Metrics Changes - Revenue for Q1 2023 was $77.9 million, exceeding the high end of the outlook range, driven by strong consumer demand and improved monetization, representing a 39% year-over-year increase, the highest quarterly level in three years [10][93] - Adjusted EBITDA was $10 million, representing a margin of 13%, compared to breakeven in Q1 2022, marking the seventh consecutive quarter of positive adjusted EBITDA [85][111] - Gross margins reached 66%, with expectations to move into the upper 60% range as ticket volume grows [12][111] Business Line Data and Key Metrics Changes - Revenue from Boost and Ads tripled year-over-year, contributing significantly to overall revenue growth [5][100] - Total paid events reached 533,000, growing 21% year-over-year, with paid tickets per event averaging 44, up from 41 in the same quarter last year [88] - Average ticket price was just over $39, down slightly from a year ago, while gross ticket sales were $906 million, up 26% year-over-year [38][88] Market Data and Key Metrics Changes - Consumer growth in Q1 was 17%, which was 10 points higher than the average growth in 2022 [94] - Monthly active users on the mobile app reached an all-time high of 20 million, indicating strong consumer engagement [124] - Total paid ticket volume was $23.2 million, up 28% year-over-year, with growth of 24% in the United States and 36% outside the US [88] Company Strategy and Development Direction - The company is focused on enhancing its marketplace strategy and improving product experience to drive demand for live events [95][111] - A restructuring plan aims to increase efficiency in core ticketing operations and free up $13 million to $14 million in annual operating costs for reinvestment [14][111] - The competitive landscape is described as fragmented, with the company leveraging its strengths in SEO and creator confidence to capture market share [20][121] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter's performance and raised the full-year revenue outlook to a range of $317 million to $330 million, reflecting a 24% growth rate at the midpoint [15][18] - The company anticipates that the one-time costs associated with restructuring will be less than $20 million for the full year [16] - Management noted that consumer demand for live events is strong, with a positive outlook for the remainder of 2023 [47][111] Other Important Information - The company has made significant improvements to event listings, including the addition of image carousels and video, which have seen over 20% adoption among new listings [8][79] - The Social Connection Project aims to combat loneliness through live experiences, highlighting the company's commitment to social responsibility [9][97] - The company has been recognized as one of Fast Company's 50 Most Innovative Companies [97] Q&A Session Summary Question: What are the trends in Q2 and the macroeconomic backdrop? - Management noted that Q1 was strong, and they are encouraged by early Q2 trends, indicating a slightly stronger year than initially expected [18][19] Question: How does the competitive environment compare to pre-pandemic? - Management believes the competitive environment has strengthened due to improved platform capabilities and consumer demand for live events [117][120] Question: What is the long-term opportunity for Boost and Ads? - Management sees significant potential for demand generation tools, with creators spending a substantial portion of ticket value on marketing [30][34] Question: How is the restructuring progressing? - The restructuring is on track, with low attrition and expected annualized savings of $13 million to $14 million [75][80] Question: What is the outlook for adjusted EBITDA margins? - The company expects to maintain a 10% adjusted EBITDA margin for the full year, with potential for higher margins as demand generation solutions grow [89][134]