Financial Performance - The company incurred net losses of $15.6 million and $26.5 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $831.0 million as of December 31, 2024[52]. - Net revenue for the company was $325.1 million in 2024, slightly down from $326.1 million in 2023[52]. - The company expects operating expenses to increase in future periods, which may affect its ability to achieve and maintain profitability if revenue does not increase accordingly[52]. - As of December 31, 2024, outstanding advance payouts were $101.2 million, down from $115.3 million as of December 31, 2023, indicating a decrease of approximately 12.5% year-over-year[77]. - Non-recoupable payments, net, increased to $7.5 million as of December 31, 2024, compared to $1.9 million in 2023, representing a significant increase of approximately 294.7%[79]. - Creator advances, net, including noncurrent balances, rose to $3.4 million as of December 31, 2024, from $2.8 million in 2023, marking an increase of about 21.4%[80]. - Net cash provided by operating activities was $35.6 million for 2024, up from $19.0 million in 2023, showing improved cash flow[215]. - The company may face substantial tax liabilities due to audits in various jurisdictions, which could adversely affect its financial condition[206]. - Future utilization of net operating losses (NOLs) may be limited due to ownership changes, impacting the company's ability to offset taxable income[210]. Market and Competitive Landscape - The company operates in a competitive landscape with significant competition from other ticketing providers and large e-commerce companies[155]. - The company plans to increase marketing spend to drive consumer demand, responding to competitive pressures in the ticketing industry[84]. - The company’s business is directly affected by the success of events in its marketplace, with revenue impacted by the number and mix of events and ticket sales[60]. - The company relies heavily on internet search engines for traffic, and changes in algorithms could negatively impact visibility and rankings[117]. - The company’s partnerships with third-party distribution platforms, such as Meta and TikTok, are crucial for reaching consumers, but these relationships may be subject to changes that could impact business performance[113]. Operational Risks and Challenges - The company faces significant risks associated with upfront payments, as event performance may vary greatly, potentially harming financial returns[81]. - The company’s results of operations have fluctuated significantly due to various factors, including gross ticket sales levels and ticket fee pricing[71]. - The company faces challenges in maintaining and improving its platform performance due to increasing complexity and usage demands[108]. - The company relies on third-party providers for its payments system, which poses risks that could adversely affect payment processing capabilities[147]. - The company must continually integrate various payment methods, including Apple Pay and Google Pay, which may increase costs and risks[148]. - The company is subject to stringent data protection laws, including GDPR, with potential penalties up to €20 million or 4% of global turnover for breaches[125]. - The company faces risks from cybersecurity incidents, which could result in loss of creators or consumers and significant reputational damage[132]. - Cyber attacks are becoming more sophisticated, posing a higher risk to the company's operations as it expands geographically[134]. - The company’s platform is vulnerable to interruptions from third-party partners, which could lead to delays in product delivery and business strategy[102]. Regulatory and Compliance Issues - The company is subject to complex transfer pricing regulations, which could result in additional tax liabilities if tax authorities disagree with its income and expense allocations[209]. - Compliance with evolving data protection laws may significantly increase operational costs and complexity, particularly in regions like Australia, Brazil, and India[126]. - The company’s marketing communications are subject to the CAN-SPAM Act, with potential civil penalties for violations[124]. - The California Consumer Privacy Act (CCPA) requires the company to modify data processing practices, incurring compliance-related costs[121]. - The EU Digital Services Act (DSA) and the UK Online Safety Act 2023 impose significant compliance costs, with potential fines of up to 6% and 10% of total annual worldwide turnover, respectively[186]. - Noncompliance with anti-corruption laws could lead to significant penalties, including civil or criminal fines, which may harm the company's reputation and financial condition[188]. Strategic Initiatives and Future Outlook - The company plans to focus on hiring roles that will accelerate its transition to a marketplace, particularly in event acquisition and retention functions[55]. - The company has implemented a reduction in force, eliminating approximately 11% of its workforce, which may impact its employer brand and hiring capabilities[95]. - The company is investing resources to reduce the complexity of its software code, which may divert engineering talent from developing new solutions[103]. - The company faces challenges in adapting its platform to local preferences in international markets, which could hinder growth[166]. - The company’s international expansion may strain resources and may not yield desired revenue or profitability levels[165]. Financial Instruments and Stock Performance - The company repurchased $120 million of the 2025 convertible senior notes in August 2024, reducing its outstanding debt[218]. - The anticipated conversion of the Convertible Notes into shares of Class A common stock could depress the price of the company's Class A common stock[241]. - The market price of the company's Class A common stock has been volatile and may decline regardless of operating performance, influenced by macroeconomic factors and geopolitical events[232][233]. - The dual class structure of the company's common stock concentrates voting control, potentially limiting stockholder influence on corporate matters[236]. - The issuance of additional capital stock could dilute existing stockholders' ownership interests significantly[240].

Financial Performance - Net revenue for Q4 2024 was $76.5 million, down 13% year-over-year, with marketplace-related revenue from organizer fees and Eventbrite Ads accounting for 8% of total net revenue[4]. - The company reported a net loss of $8.4 million for Q4 2024, compared to a net loss of $0.9 million in the same period last year[4]. - Net revenue for Q4 2024 was $76,464,000, a decrease of 13% compared to $87,764,000 in Q4 2023[15]. - The net loss for the year ended December 31, 2024, was $15,571,000, compared to a net loss of $26,479,000 in 2023, indicating an improvement of 41%[15]. - Gross profit for the year ended December 31, 2024, was $226,563,000, an increase of 2% from $223,004,000 in 2023[15]. - Total operating expenses decreased to $257,356,000 in 2024 from $264,137,000 in 2023, reflecting a reduction of approximately 3%[15]. - Adjusted EBITDA for Q4 2024 was $6.5 million, with an Adjusted EBITDA margin of 8.5%[4]. - Adjusted EBITDA for the year ended December 31, 2024, was $35,111,000, up from $28,655,000 in 2023, representing a 23% increase[18]. - Adjusted EBITDA margin for 2024 was 11%, compared to 9% in 2023, showing an improvement in operational efficiency[18]. Revenue Projections - The company anticipates Q1 2025 net revenue to be between $71 million and $74 million, with an Adjusted EBITDA margin in the mid-single digits[6]. - Full year 2025 net revenue is expected to range from $295 million to $310 million, impacted by the elimination of organizer fees, which will create a $20 million revenue headwind compared to 2024[7][8]. Ticketing Metrics - Total ticket volume reached 72.0 million tickets, growing 2% across 1.4 million events, while paid ticket volume was 21.6 million, a decrease of 10% year-over-year[4][5]. - Average ticket value (ATV) increased by 2% year-over-year to $36.70 in Q4 2024[5]. - Eventbrite expects continued recovery in ticketing trends, with paid ticket volume projected to return to growth in the second half of 2025[7]. Asset and Liability Overview - Total current assets increased to $552,496,711 from $485,921,000, representing a growth of approximately 13.7% year-over-year[14]. - Cash and cash equivalents decreased to $416,531 from $489,200, indicating a decline of about 14.8%[14]. - Total assets reached $752,301,000, up from $913,330, representing a decrease of approximately 17.6%[14]. - Current liabilities increased to $366,373 from $357,572, reflecting a rise of about 2.2%[14]. - Total liabilities amounted to $582,072,721, compared to $573,753, indicating a slight increase of approximately 1.4%[14]. - The net accounts receivable stood at $21,872,814, showing a decrease from the previous year[14]. Creator Metrics - The total number of creators decreased by 7% year-over-year to 353, while paid creators also fell by 9% to 166[5]. - The company reported net creators signing fees of $39,546,634, which is a significant increase compared to the previous period[14]. Cash Flow and Debt Management - Cash flows from operating activities provided $35,573,000 in 2024, compared to $19,018,000 in 2023, indicating a significant increase of 87%[16]. - Principal repayment of debt obligations amounted to $120,450,000 in 2024, reflecting the company's commitment to reducing debt[16]. - The company incurred restructuring costs totaling $16.3 million in 2023, which impacted the financial results[18]. Other Financial Metrics - Gross margin for Q4 2024 was 68.2%, down from 70.1% in the same period last year[4]. - The total stockholders' equity was reported at $170,229,000, down from $191,000, representing a decrease of approximately 10.9%[14]. - The net property and equipment was recorded at $12,640,909, reflecting a growth from $3,384,000[14]. - Goodwill increased to $174,388,174 from $38,888, indicating a substantial rise[14].

Group 1: Company Overview - Eventbrite has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook for its earnings estimates [1][3] - The upgrade reflects an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4] Group 2: Earnings Estimates - For the fiscal year ending December 2024, Eventbrite is expected to earn -$0.12 per share, representing a 53.9% change from the previous year's reported number [8] - Over the past three months, the Zacks Consensus Estimate for Eventbrite has increased by 61.5% [8] Group 3: Market Implications - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Eventbrite's underlying business, which could lead to increased buying pressure and a higher stock price [5][10] - The Zacks Rank system, which categorizes stocks based on earnings estimate revisions, positions Eventbrite in the top 20% of Zacks-covered stocks, indicating potential for market-beating returns in the near term [9][10]

Core Viewpoint - Eventbrite (EB) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][3]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to stock price fluctuations based on their buying or selling activities [3]. Eventbrite's Earnings Outlook - The upgrade for Eventbrite reflects an improvement in its underlying business, with rising earnings estimates expected to drive the stock price higher [4]. - For the fiscal year ending December 2024, Eventbrite is projected to earn -$0.12 per share, representing a year-over-year change of 53.9% [7]. - Over the past three months, the Zacks Consensus Estimate for Eventbrite has increased by 89.8%, indicating a strong upward revision trend [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of Eventbrite to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Core Insights - Eventbrite (EB) shares have declined by 53.9% over the past 12 months, underperforming the Zacks Computer & Technology sector's growth of 29.4% and the Zacks Internet - Software industry's increase of 32.7% [1] - The company's financial struggles are attributed to declining user engagement, operational inefficiencies, and rising costs, compounded by increased competition in the event management and ticketing sectors [2][10] Financial Performance - The Zacks Consensus Estimate for Q1 2025 revenues is $77.19 million, reflecting a 10.5% year-over-year decline [12] - The expected loss for Q1 2025 is 5 cents per share, indicating breakeven performance compared to the previous year [12] - For the full year 2025, revenues are estimated at $339.64 million, suggesting a year-over-year growth of 4.58% [12] Growth Strategies - Eventbrite is optimistic about growth potential, focusing on expanding event inventory, with $4.5 million in new bookings in Q3 2024 [3] - The company aims to attract event creators, which is central to its growth strategy, leading to an increase in event listings and ticket sales [4] - A free-tier product was introduced to lower entry barriers for small creators, with over 10,000 creators using Eventbrite Ads monthly [7] User Engagement - In Q3 2024, Eventbrite reached 92 million active users, with 26 million making purchases, and successfully re-engaged over 750,000 former customers [8] - The platform hosted more than 1.4 million events, with 333,000 creators, including 82,000 new ones in Q3 2024 [5] - A redesigned mobile app is set to launch early next year, currently in beta testing, which is expected to enhance consumer engagement [9] Operational Challenges - The decline in paid creators indicates difficulties in retaining or attracting new ones, which may hinder consistent growth [10] - Sustaining long-term consumer engagement, especially among younger demographics, remains a challenge despite partnerships like TikTok [11]

Core Insights - Eventbrite (EB) shares have appreciated 17.5% in the past three months, outperforming the broader Zacks Computer & Technology sector's return of 11.5% due to growing adoption of the company's events platform and improved user experience [1] - However, there was a 5% year-over-year decline in net revenues to $77.8 million in Q3 2024, primarily due to a 14% drop in paid ticket volume to 19.7 million, indicating significant headwinds for the company [2] - Eventbrite's challenges have led to underperformance compared to the Zacks Internet - Services industry's growth of 18.4% during the same period [3] Company Strategy - Creator acquisition is a key strategy for Eventbrite's growth, focusing on attracting more event creators to drive increased event listings and ticket sales [4] - The launch of a free-tier product in September 2024 aims to lower entry barriers for smaller creators, facilitating user acquisition without significant initial costs [5] - Strategic pricing changes and platform enhancements have accelerated creator acquisition, with over 10,000 creators using Eventbrite Ads monthly [6] Market Expansion - Eventbrite has expanded its platform through acquisitions in over six countries, focusing on the U.S. and Argentina, with notable acquisitions including ToneDen, Picatic, and Ticketea [7] - The company is partnering with TikTok to connect with younger audiences, which has resulted in nearly 20% growth in users searching for local events [8] - Eventbrite targets 21-35 year olds, known as social scouts, who are likely to discover and attend events, creating a strong network [9] Performance Metrics - Eventbrite has over 93 million average monthly active users and 19.7 million paid ticket volumes, indicating a scaling marketplace [10] - Positive trends are observed in creator acquisition, event volume, and ticket transactions, with a returning creator base showing consistent patterns [11] Financial Outlook - For Q4 2024, Eventbrite expects net revenues between $74 million and $77 million, with a consensus estimate of $75.96 million, indicating a year-over-year decline of 13.45% [15] - The consensus estimate for Q4 2024 bottom line is a loss of 5 cents per share, indicating a wider loss compared to the previous year [16] - The Zacks Consensus Estimate for 2024 revenues is pegged at $324.20 million, implying a decline of 0.59% from the previous year [16][17]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Eventbrite (EB) as a strong candidate for value investors due to its favorable Zacks Rank and valuation metrics [1][2]. Valuation Metrics - Eventbrite has a P/B ratio of 2.12, which is significantly lower than the industry average of 5.93, indicating that it may be undervalued [3]. - The company's P/S ratio stands at 1.1, compared to the industry's average P/S of 1.97, further supporting the notion of undervaluation [4]. Investment Outlook - Given the strength of its earnings outlook and favorable valuation metrics, Eventbrite is positioned as one of the strongest value stocks in the market currently [5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Eventbrite (EB) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][3][6]. Valuation Metrics - Eventbrite has a Price-to-Book (P/B) ratio of 1.92, which is significantly lower than the industry average of 5.48, indicating that the stock may be undervalued [4]. - The stock's P/B ratio has fluctuated between a high of 4.90 and a low of 1.42 over the past 12 months, with a median of 2.77 [4]. - The Price-to-Sales (P/S) ratio for Eventbrite is 1.04, compared to the industry average of 1.48, further suggesting that the stock is undervalued [5]. Earnings Outlook - Eventbrite's strong earnings outlook, combined with its attractive valuation metrics, positions it as an impressive value stock at the moment [6].

Core Viewpoint - Eventbrite (EB) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook for its earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system highlights the importance of earnings estimate revisions in determining stock price movements, as institutional investors often base their valuations on these estimates [3][5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell accordingly, which in turn affects the stock price [3]. Eventbrite's Earnings Outlook - Eventbrite is projected to earn -$0.20 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 23.1% [7]. - Over the past three months, the Zacks Consensus Estimate for Eventbrite has risen by 17.8%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - The upgrade of Eventbrite to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

| --- | --- | --- | --- | --- | |--------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | Q3 Investor Presentation November 7, 2024 | | | | | | | | | | | Disclaimer Regarding Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncert ...