Eventbrite EB shares have appreciated 17.5% in the past three months, outperforming the broader Zacks Computer & Technology sector’s return of 11.5%.

The rise in the share price is driven by the growing adoption of the company’s events platform, leading to higher engagement from creators. Pricing changes and platform enhancements have significantly improved the user experience.

However, a 5% year-over-year decline in net revenues to $77.8 million in the third quarter of 2024 was attributed primarily to softness in the paid ticket volume. The paid ticket volume dropped 14% to 19.7 million in the quarter. These figures highlight significant headwinds for Eventbrite, as reduced ticket sales directly impact revenue generation.

These challenges have substantially contributed to Eventbrite's underperformance compared with the Zacks Internet - Services industry’s growth of 18.4% over the same period.

Creator Acquisition to Boost EB’s Prospects

Creator acquisition has been a key strategy for Eventbrite's growth, as the company aims to expand its core ticketing business. The focus is on attracting more event creators to the platform, which helps drive increased event listings and ticket sales, thus generating higher revenues.

Eventbrite launched a free-tier product in September 2024, designed to make it easier for smaller creators to join the platform. This lowers the entry barrier for creators and helps Eventbrite attract users without significant initial costs.

Strategic pricing changes and platform enhancements have accelerated creator acquisition since September 2024. More than 10,000 creators now use Eventbrite Ads monthly, with many adopting advanced marketing tools, fostering a loyal creator base and attracting more consumers to the platform.

Eventbrite has built a strong acquisition history, expanding its platform through acquisitions in more than six countries, with a focus on the United States and Argentina. Among its key acquisitions are ToneDen, Picatic and Ticketea.

The company is expanding its reach by partnering with TikTok to connect with younger audiences seeking unique experiences to share with friends. This partnership helps bring more consumers to the platform. In the third quarter, the number of people using Eventbrite to search for local events grew nearly 20% from last year.

EB Stock to Ride on Consumer Focus

Eventbrite is focusing on becoming a consumer-centric brand, targeting 21-35 year olds, known as social scouts, who actively look for and share unique local experiences. This group is more likely to discover events on Eventbrite and attend with friends, creating a strong network.

EB's main focus is to grow its core ticketing business by attracting more creators and events. With more than 93 million average monthly active users and 19.7 million paid ticket volumes, Eventbrite is scaling its marketplace, targeting high event producer volumes. This expansion of the event catalog helps drive revenue growth and platform engagement.

Eventbrite is seeing positive trends in key metrics, with improvements in creator acquisition, event volume and ticket transactions across free and paid events. Its returning creator base is trending to more consistent patterns, and combined with win-back efforts, the marketplace is expected to strengthen over time.

Unicorn World is a family-friendly event featuring life-size animatronic unicorns and interactive experiences. The event benefits from Eventbrite's timed entry capabilities, which help manage large crowds by organizing attendees at different time slots throughout the day.

Currently, Unicorn World hosts events in 3-4 cities per month and is expanding its tour dates to reach more communities. This growth highlights the significant opportunities in the experiential events market, as creators like Unicorn World use Eventbrite’s platform to connect with new audiences.

EB’s Estimate Revision Shows Downward Trend

For the fourth quarter of 2024, Eventbrite expects net revenues between $74 million and $77 million. Revenues for 2024 are anticipated to be $322-$326 million. 

The consensus estimate for fourth-quarter 2024 revenues is pegged at $75.96 million, indicating a year-over-year decline of 13.45%.

The consensus mark for the fourth-quarter 2024 bottom line is pegged at a loss of 5 cents per share, widened by a penny over the past seven days. The projection indicates a wider loss from the year-ago quarter's reported loss of a penny.

For 2024, the Zacks Consensus Estimate for revenues is pegged at $324.20 million, implying a decline of 0.59% from the previous year’s actual.

The Zacks Consensus Estimate for 2024 is pegged at a loss of 12 cents per share, narrower than the loss of 21 cents mentioned 30 days ago. This figure also indicates an improvement from the year-ago quarter's reported loss of 26 cents.

Zacks Rank & Other Stock to Consider

EB currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now.

EB shares are currently undervalued, as suggested by a Value Score of A.

Marvell Technology MRVL, Amphenol APH and Five9 FIVN are some better-ranked stocks in the same industry. Each of these companies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rates for Marvell Technology, Amphenol and Five9 are expected to be 33.374%, 16.39 and 15.60%, respectively.

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