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  Title	Eventbrite : Third Quarter 2024 Earnings Conference Call Shareholder Letter
  ID	4013009
  External ID	7284115649
  Author	Unknown
  Published Date	Nov. 7, 2024, 7:42 p.m.
  Summary	November 07, 2024 at 08:41 pm EST Nov 7, 2024 Q3 2024 Shareholder Letter Food Karma Projects Quarterly Highlights Consumer reach totaled over 93 million average monthly active users with paid ti
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  URL	https://www.marketscreener.com/quote/stock/eventbrite-inc-46276390/news/eventbrite-third-quarter-2024-earnings-conference-call-shareholder-letter-48299243/
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• Content Details

  Content ID	2290489
  Key	48340748-bb43-45c3-8f61-bbe8410c304f
  Content	November 07, 2024 at 08:41 pm EST Nov 7, 2024 Q3 2024 Shareholder Letter Food Karma Projects Quarterly Highlights Consumer reach totaled over 93 million average monthly active users with paid ticket volume at 19.7 million in the third quarter. Includes reduction in force expenses totaling $5.4 million in the third quarter. Adjusted EBITDA is a financial measure that is not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). See the section in this letter titled "About Non-GAAP Financial Measures" for information regarding Adjusted EBITDA, including the limitations of non-GAAP measures, and see the end of this letter for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. Food Karma Project Dear Eventbrite Shareholder, We delivered third-quarter revenue results that exceeded our outlook. Perhaps more importantly, we began to see significant improvement in creator acquisition following the changes we made to our pricing and packaging in September. Returning to growth in our core ticketing business is our top priority, and we are pulling multiple levers across product, marketing, sales, and service to win creators, attract consumers, and drive ticket volume. While we anticipate that it will take time to return to our desired growth trajectory, the early results we are seeing bolster our confidence in our game plan. In the first phase of our plan, we expanded our free tier in early September, allowing all creators to publish unlimited events of any size with no upfront fees. Year-to-year comparisons in creator acquisition, new creator event volume, and ticket transactions from new creators have improved across both free and paid events and our returning creator base is now trending consistently with historical patterns. Over time, we believe that progress on creator acquisition will drive improved growth among returning creators and benefit overall ticketing performance. Likewise, the positive impact on free event activity is expected to drive consumer engagement and reach, which play an important role in the flywheel effect of our two-sided marketplace. Beyond the changes to pricing, we are purposefully pursuing the event types and categories that most energize our marketplace. Our data shows that consumers remain excited about highly-curated immersive experiences, including local tours, themed museums, and interactive playscapes. Food Karma Project After decades spent operating restaurants in New York City, Jimmy Carbone was looking for new ways to support rising chefs and connect them with members of their community. Carbone founded Food Karma Projects in 2010, organizing a series of annual culinary events and competitions - including Pig Island NYC™, Rib King NYC™, and CiderFeast™ - where chefs and restaurants serve delicious bites to attendees, accompanied by curated beverages. "Our events are primarily about grassroots community building and networking for everyone involved," Carbone explains. "They reflect our belief that strong communities are thriving communities." In the 13 years that Food Karma Projects has ticketed via Eventbrite, the production company has expanded beyond its hometown of NYC, hosting tasty events in Boston, Denver, and Portland. As Carbone's slate of events has increased, Eventbrite has helped foodies discover these community- focused feasts - in 2023, Eventbrite drove 56% of Food Karma Projects' ticket sales. "Successfully managing large events involves paying attention to a lot of moving parts," says Carbone, but allowing Eventbrite to handle ticketing means one less thing to worry about. To better serve these creators, expand our addressable market, and bring more consumers into our marketplace, we fully rolled out our new timed entry functionality last month. This enhanced capability provides creators with greater control over how they manage the flow of attendees across multiple same-day time slots and simplifies the end-to-end experience for ticketing these types of experiences. We are encouraged by the uptake of our timed entry feature among existing creators and we are securing new strategic event inventory with timed entry via both our sales and self-sign-on channels. Since the beta launch in August, this feature has already generated nearly 400,000 tickets. Nasstive Founded in 2009 by nightlife pioneer Jason Kuska, Nasstive Entertainment has transformed the bar crawl experience across the United States. Featuring guided club crawls, and self-guided holiday bar crawls, their events attract thousands of participants each year. Nasstive partnered with Eventbrite Ads, leveraging top placements to drive visibility and engagement. This initiative led to remarkable results, including a 5.6x return on advertising spend during their 2023 New Year's Eve celebrations. Jason attributes much of their success to Eventbrite's robust marketing tools, stating, "Our Eventbrite listings show up first in Google search results." With 3.5k followers on their organizer profile, Nasstive's effective use of data and strategic experimentation ensures they remain leaders in the nightlife space. As Jason continues to refine their approach, Eventbrite remains a vital partner in their journey, enhancing both ticket sales and brand recognition. New Timed Entry feature showcasing available tickets over multiple time slots within the same day Business Update While we are encouraged by trends following the introduction of the free tier in September, paid ticket volumes remained under pressure in the third quarter, down 14% year-over-year. The introduction of organizer fees last year continued to impact the event inventory available in our marketplace as well as paid ticket volume in the third quarter, and we've taken clear steps to address that dynamic. Returning to a pricing model that enables creators to publish their events on the Eventbrite marketplace for free - with revenue earned by Eventbrite when consumers purchase tickets - aligns our economics with our creators' business objectives, centering both on driving paid ticket volume. For creators seeking enhanced event marketing capabilities, we continue to offer our subscription-based Pro plan, which includes enhanced marketing tools designed to drive incremental ticket sales. Despite the paid ticket volume headwind, focused execution enabled us to deliver third-quarter Net Revenue of $77.8 million, which exceeded our outlook of $74 million to $77 million. Increases in Eventbrite Ads revenue and better- than-expected retention on the Pro plan helped partially offset an 11% year-to- year decline in ticketing revenue in the quarter. In addition to the strategic initiatives we are executing, we are operating the business with strong financial discipline, which enabled us to deliver improving bottom-line results. Our net loss of ($3.8) million in the third quarter, which includes the impact of $5.4 million in expenses related to the reduction in force we announced in August, compared to a ($9.9) million net loss a year ago. In the third quarter, we began to realize expense savings associated with the cost reductions. While Adjusted EBITDA of $5.3 million for the quarter was down 17% from a year ago, this included the above-mentioned $5.4 million in severance and related costs. Excluding the third quarter impact of reduction in force costs, our Adjusted EBITDA margin for the quarter was 13.9% and we continue to expect a 10% Adjusted EBITDA margin for the full year, excluding non-routine items and reduction in force costs. Net Revenue per Ticket and Take Rate "A "returning creator" refers to a creator who has previously used Eventbrite to host events and has come back to use the platform again. " Our strong cash position and the cash flow we are generating have enabled us to execute on our capital allocation priorities. In August, we repurchased $120 million of our 2025 Convertible Notes, further strengthening our financial position. Our focus now returns to the execution of our share repurchase authorization. As we shared in August, we expect to repurchase up to $50 million of our $100 million authorization by the end of this fiscal year, inclusive of the approximately $39 million repurchased through the end of the third quarter. We expect our continued progress to lay the foundation for future growth and strong cash generation as we work to scale and leverage our efficient expense structure. Driving the Flywheel in the Year Ahead Eventbrite's flywheel is designed to drive sustainable growth and self-reinforcing advantages for our two-sided marketplace as we bring creators and consumers together. In the year ahead, we are focused on winning creators who host popular events in major cities, as they provide a repeating supply of high-quality events and experiences that bring a consistent stream of consumers into our marketplace. Event-going consumers and those searching for live experiences are highly valued by our creators and we can accelerate the flywheel by increasing Eventbrite's reach, relevance, and connections to consumers. Manhattan Vintage For lovers of vintage fashion, Manhattan Vintage is the ultimate treasure trove for any clothes enthusiast looking to add something truly unique to their wardrobe, whilst doing their bit for sustainability in the process. Living by the belief that "vintage is the future of fashion, and our community is the future of vintage", NYC's iconic show boasts the most expansive collection of vintage clothing, jewelry, and accessories in the world, curated by over 90 dealers. It really is a true Aladdin's cave for any discerning fashionista, and where personal style and history converge. Manhattan Vintage events continue to go from strength to strength, with the number of paid tickets doubling year-on-year. And the appetite for one-of-a-kind wardrobe additions shows no sign of letting up. 2024 has been a bumper year for the team, having hosted four vintage shows - one more than last year - and that trend looks set to continue in 2025, with tickets for the next show in January already being snapped up. To drive creator acquisition… We will continue to invest in the creator experience, attract creators of all sizes, and pursue our win-back programs. With the return to a model that enables creators to publish their events for free, we have seen marked improvement in publishing activity for free events, which are an important source of Eventbrite's consumer reach and conversion of paid buyers. On the paid event side, year- to-year comparisons in new creators, their events and ticket volumes have improved steadily since we adjusted pricing in September. Over the coming year, we will continue to highlight the benefits of our free and paid offerings with campaigns and performance marketing to drive the flywheel of our two-sided marketplace. Our win-back program continues to deliver results: since early September, former Eventbrite customers we have won back have sold more than 750,000 paid tickets on our platform. We are doing this by delivering a consistent drumbeat of targeted email campaigns, paid ads, and in-product messaging that highlights Eventbrite is free, supported by unique advantages such as powerful marketing tools, demand generation, and new benefits such as timed entry and TikTok. We will build upon the learnings from our efforts as we sharpen our strategy and tactics for the year ahead. To strengthen creator retention… We are enhancing our service and support and elevating our premium offerings designed to drive incremental ticket sales. With hundreds of thousands of creators coming to our marketplace each month, we believe service and support play an important role in creator satisfaction and retention. We are leveraging technology to help support teams provide answers more efficiently, and using those gains to expand access to live support. In the third quarter, we improved support response times by 80% and expanded phone support to provide 24-hour, 7-day per-week availability for high-value creators and creators on premium plans. We have redesigned the way we onboard high-value creators and expanded the coverage of our dedicated customer success teams to better serve these important accounts throughout the event lifecycle. We will also continue to provide creators with powerful marketing and advertising tools that utilize our expansive events marketplace to help them Salmonfest Fish, fun, and music might not be three words you often hear together, but that's all part of the unique charm of Salmonfest. The annual Alaskan music festival sells out every year, with profits going towards salmon-related conservation causes. An ethereal and magical weekend about community and purpose, Salmonfest takes place amongst the spectacular nature of Ninilchik, a small Alaskan fishing village, whose name means 'peaceful settlement by the river'. Big acts (past line-ups include Brandi Carlile, Jason Mraz, and Indigo Girls) and picturesque surroundings attract attendees from far and wide. Salmonfest 2024 welcomed attendees from 47 states and 17 countries! The event is also an opportunity for Alaskans to come together to connect with each other and give back. Salmonfest has been on Eventbrite for almost a decade, with the platform driving almost 47% of ticket sales to the annual event. Salmonfest 2025 will mark the 15th anniversary of the festival, with early bird tickets already on sale. build anticipation before events, drive ticket sales, and re-engage audiences for future events. Today, one in ten of our free and paid creators subscribes to the enhanced email marketing capabilities of our Pro product, and approximately 10,000 creators per month are using Eventbrite Ads to market their events. We see a significant opportunity to expand adoption of our event marketing programs via product improvements and targeted product marketing. We believe that by having creators experience the tangible benefits of our volume-driving marketing and ad offerings, they will achieve greater success on the platform and, in turn, become more successful and loyal Eventbrite customers. To drive consumer acquisition… We continue to increase our strategic inventory by investing in our Sales channel. Sales pipeline generation and efficiency improved significantly across all geographies, leading to more than $4.5 million in new bookings in the third quarter and strong momentum going into the holiday season. The events we have won span key categories our consumers are searching for, including music, food and drink, and comedy shows. Our new Sales leadership has brought new strategic inventory, holiday events, and timed-entry experiences into our marketplace, and in the coming year, we plan to invest in the team to drive acquisition of larger events and creators. We will also continue to connect consumers with creators on our platform at scale with compelling social media experiences. Thanks in part to our social partnerships, the number of consumers coming to Eventbrite to search for local events grew by nearly 20% in the third quarter compared to last year and we see an opportunity to expand these consumer-creator connections as partnerships like our TikTok integration mature and as we explore additional channels to drive engagement. To drive consumer conversion… We are investing in a more engaging Consumer App experience, greater personalization and discoverability. We seek to build consumer loyalty that generates repeat purchases, both free and paid, and make Eventbrite the desired spot to search for and find one-of-a-kind events. We see the greatest consumer engagement and purchase frequency within the mobile app, where logged-in usage is higher, localization and personalization can be stronger, and consumer purchase frequency is twice as great as on our web surfaces. Our revamped app is designed to improve the discoverability of events on our platform and strengthen the recommendations we provide our users. We are in live user testing today and are excited about our plans to bring the improved mobile app to the market in the coming year, with the twin goals of increasing consumer engagement and more effectively showcasing creators' events. Strengthening Our Leadership As we look forward to the year ahead, we are putting in place the leadership to drive our marketplace transformation and propel Eventbrite to its next growth phase. Effective November 19, Anand Gandhi will join Eventbrite as our Chief Financial Officer. Anand comes to Eventbrite from Viator, the world's leading marketplace for travel experiences, where he was the CFO. During his tenure, he helped transform the financial performance of the business, driving to profitability while more than doubling revenue. Anand brings a valuable perspective to our Executive Leadership Team, with financial, operational, and strategic leadership experience across the consumer entertainment landscape, including at Disney, Fox, Viacom, and Time, as well as experience scaling a hyper-growth online marketplace as CFO of Skillshare. Anand's appointment will sharpen our operational focus by allowing Lanny Baker to devote his attention to his new role as our Chief Operating Officer. Lanny has been a valuable partner to Eventbrite's executive leadership team since he joined as CFO in 2019, and is already strengthening our ways of working, while ensuring we achieve operational progress as we execute our marketplace transformation. This transition will enable him to focus on revenue generation, business operations and leading our Sales and Customer Experience teams, which will be vital to our near- and long-term success. In Summary We are encouraged by the early momentum we are achieving as we begin to drive the strategic initiatives designed to deliver stronger results and position us to capture the large opportunity ahead. While the introduction of organizer fees slowed the progress of our marketplace transition, we have strong conviction in our long-term strategy, and the reintroduction of the expanded free tier has begun to attract more events and creators to Eventbrite to drive it forward. To continue the momentum of this important first step, we have outlined a series of strategic initiatives to build on the increased activity on the platform. As we look to the year ahead, we aim to execute with rigor and discipline to deliver value for our creators, consumers and shareholders, and appreciate your support through this year of transition. Sincerely, Attachments Original document Permalink Disclaimer Eventbrite Inc. published this content on November 07, 2024 , and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 08, 2024 at
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