Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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.
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