Eventbrite(US:EB)2024-08-08 20:12Financial Performance - For the three months ended June 30, 2024, the company reported a net income of $1.063 million, compared to a net loss of $2.921 million for the same period in 2023[83]. - The total net revenue for the three months ended June 30, 2024, was $84.551 million, an increase from $78.912 million in the same period of 2023, representing a growth of 3.3%[86]. - Net revenue for Q2 2024 was $84,551,000, a 7% increase from $78,912,000 in Q2 2023[102]. - Total net revenue for the six months ended June 30, 2024, was $170,803,000, an increase from $156,826,000 for the same period in 2023[86]. - Adjusted EBITDA for the three months ended June 30, 2024, was $12.836 million, compared to $11.313 million for the same period in 2023, indicating an increase of 13.4%[95]. - The company reported a net income of $1,063,000 for Q2 2024, a significant recovery from a net loss of $2,921,000 in Q2 2023[98]. Cash and Cash Equivalents - As of June 30, 2024, cash and cash equivalents were $575.5 million, up from $489.2 million as of December 31, 2023, representing a 17.7% increase[36]. - The Company’s total cash, cash equivalents, and restricted cash reached $575.5 million as of June 30, 2024, compared to $520.5 million as of June 30, 2023, marking a 10.6% increase[36]. - Cash and cash equivalents totaled $575.5 million as of June 30, 2024, with approximately 19% held outside the United States[125]. - The company recorded a $2.7 million increase in cash, cash equivalents, and restricted cash during the six months ended June 30, 2024, primarily due to the weakening of the U.S. dollar[134]. Accounts Receivable and Payable - Accounts receivable, net increased to $4.9 million as of June 30, 2024, compared to $2.8 million as of December 31, 2023, reflecting a 73.4% growth[41]. - The balance of creator advances was $6,852,000, an increase from $695,000 as of June 30, 2023[46]. - Advance payouts outstanding to creators were $152.3 million as of June 30, 2024, compared to $115.3 million as of December 31, 2023[47]. - The company had $314.7 million due to creators as of June 30, 2024, classified as accounts payable[126]. Revenue Recognition - The Company recognized ticketing revenue when tickets are sold, with a fixed fee structure that includes a flat fee and a percentage-based fee per ticket[31]. - The Company’s advertising revenue is recognized as impressions are displayed, contributing to overall revenue growth[33]. - Revenue is recognized when control of the promised goods or services is transferred to customers, reflecting the company's commitment to transparency in financial reporting[30]. Operating Expenses - Operating expenses totaled $66,394,000 in Q2 2024, compared to $60,991,000 in Q2 2023, with a total operating expense percentage of 79%[109]. - Product development expenses increased to $26,057,000 in Q2 2024, an 11% increase from $23,486,000 in Q2 2023, maintaining 31% of net revenue[111]. - Sales, marketing, and support expenses rose to $24,521,000 in Q2 2024, a 56% increase from $15,679,000 in Q2 2023, accounting for 29% of net revenue[114]. - General and administrative expenses decreased to $15.8 million for the three months ended June 30, 2024, down 28% from $21.8 million in the same period of 2023[117]. Debt and Interest - The carrying amount of long-term debt was $210,403,000 as of June 30, 2024, unchanged from December 31, 2023[62]. - Total interest expense for the six months ended June 30, 2024, was $5,605,000, compared to $5,537,000 for the same period in 2023[63]. - The Company has $212.75 million in total payments due for the 2026 Notes, with an effective interest rate of 1.3% and recorded cash interest of $0.8 million for the six months ended June 30, 2024[64]. - The 2025 Notes total $150 million, bearing an effective interest rate of 5.8%, with cash interest recorded at $3.8 million for the same period[64]. Stock-Based Compensation - The total unrecognized stock-based compensation expense related to stock options outstanding was $7.2 million, to be recognized over a weighted-average period of 1.7 years[80]. - The balance of outstanding RSUs, PSUs, and RSAs increased to 15,947,056 as of June 30, 2024, with a total unrecognized stock-based compensation expense of $83.2 million[81]. - The total outstanding stock options were 11,638,675, with a weighted average exercise price of $12.14 and an aggregate intrinsic value of $2,845,000[79]. Legal and Tax Matters - The Company recorded a gain of $3.9 million related to a legal settlement, recognized as other income as of June 30, 2024[69]. - The Company established a reserve for potential indirect tax settlements amounting to $0.8 million as of June 30, 2024[70]. - The income tax provision rose to $784,000 for the three months ended June 30, 2024, a 71% increase from $459,000 in the same period of 2023[124]. Market and Future Outlook - The company expects to incur total costs associated with a reduction in force of up to $7 million, primarily one-time employee termination costs, expected to be completed by Q3 2024[88]. - Future revenue growth is anticipated from international markets, which may lower overall payment processing costs as a percentage of total revenue[105]. - The company expects fluctuations in cost of net revenue as a percentage of net revenue due to fixed cost absorption and geographical revenue mix[105].