• Revenue: $76.5 million in Q4, down 13% year-over-year.
• Ticketing Revenue: $70.4 million, declined 10% year-over-year.
• Marketplace Revenue: $6 million, declined 35% year-over-year.
• Eventbrite Ads Revenue: Increased 35% in Q4 and 83% for the full year.
• Total Ticketing Volume: $72 million in Q4, up 2% year-over-year.
• Free Ticket Volume: $50 million, up 8% year-over-year.
• Paid Ticket Volume: $21.6 million, declined 10% year-over-year.
• Gross Profit: $52 million in Q4, down 15% year-over-year.
• Gross Margin: 68.2% in Q4, down from 70.1% a year ago.
• Operating Expenses: $60 million in Q4, down from $71 million a year ago.
• Net Loss: $8.4 million in Q4, compared to a net loss of $900,000 a year ago.
• Adjusted EBITDA: $6.5 million in Q4, compared to $8.8 million a year ago.
• Cash and Cash Equivalents: $465 million at the end of Q4.
• Total Debt: $241 million at the end of Q4.
• Q1 2025 Revenue Outlook: $71 million to $74 million.
• Full Year 2025 Revenue Outlook: $295 million to $310 million.

• Warning! GuruFocus has detected 2 Warning Sign with EB.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Eventbrite Inc (NYSE:EB) reported Q4 2024 revenue of $76.5 million, reaching the upper end of their outlook range.
• The company exceeded its 10% adjusted EBITDA margin target for the fiscal year.
• Eventbrite Ads revenue grew 35% in Q4 and 83% for the full year, indicating strong adoption by creators.
• The elimination of organizer side listing fees led to improvements in creator acquisition, event volume, and ticket transactions.
• Eventbrite is launching a redesigned app and new features like It-Lists to enhance consumer engagement and event discovery.

Negative Points

• Q4 2024 revenue was down 13% year-over-year, primarily due to the decline in ticketing revenue.
• Marketplace revenue declined 35% due to the loss of organizer fees.
• Paid ticket volume in Q4 declined by 10%, although it showed improvement from the previous quarter.
• The company is guiding to a lower revenue range for 2025 due to structural revenue mix changes.
• Eventbrite's net loss in Q4 was $8.4 million, compared to a net loss of $900,000 in the same period a year ago.

Q & A Highlights

Q: Can you provide an update on the TikTok partnership and its impact on conversion rates? A: Julia Hartz, CEO, explained that the TikTok partnership remains a vital channel for event discovery, particularly among younger audiences. While the native integration helps reach new audiences, there is still work to be done on improving conversion rates. Eventbrite is collaborating with TikTok to streamline the ticket purchasing process and enhance discovery through search integration.

Q: Why is the EBITDA margin guidance for 2025 in the mid-single digits, given the revenue outlook? A: Anand Gandhi, CFO, noted that the margin compression is primarily due to the $20 million reduction in high-margin organizer fees and the inclusion of incentive bonus compensation in 2025. Despite these pressures, Eventbrite is maintaining financial discipline and expects to achieve mid-single-digit EBITDA margins through cost control and efficient resource allocation.

Q: How does free ticket activity translate into revenue growth, and what is the strategy for winning back creators? A: Julia Hartz highlighted that free ticket growth is a leading indicator for paid ticket volume, as it increases event supply and consumer engagement. Eventbrite is focused on improving event discovery and demand generation, which is expected to drive paid ticket volume recovery. The company is also actively re-engaging creators with enhanced marketing tools and a focus on high-value customers.

Q: What are the plans for capital allocation, particularly regarding share repurchases and debt maturities? A: Anand Gandhi stated that Eventbrite will take a balanced approach, focusing on managing debt maturities and executing the share buyback program. The company has repurchased $50 million in shares and plans to complete the remaining $50 million authorization, while also addressing upcoming debt maturities with a strong cash position.

Q: How is Eventbrite building consumer loyalty, and what opportunities exist for marketplace transformation? A: Julia Hartz emphasized the importance of app users in driving consumer loyalty, as they engage more frequently than web users. Eventbrite is enhancing the app experience with personalized recommendations and curated content to increase engagement. Anand Gandhi added that Eventbrite's strong brand and market leadership position provide a solid foundation for transforming into a vibrant two-sided marketplace.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.