EB - Earnings call transcript Q4 2018

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Operator

Good afternoon. My name is Chris, and I will be your conference operator today. At this time, I would like to welcome everyone to the Eventbrite, Inc. Fourth Quarter and Full Year 2018 Earnings Conference Call. [Operator Instructions] Thank you. begin may you Friedman, the conference. Stacey

Stacey Friedman

announcing Operator. quarter and you, to on call, shareholder our Good be investor.eventbrite.com. It earnings afternoon fourth the this letter our released to website welcome we financial full found Prior results. can and call. Thank our year at Eventbrite XXXX

statements and be of guidance like that could that results performance, today regarding are statements are future control. which the and financial actual Before would you on our currently of caution such during XX, forward-looking to that we XXXX. many begin, or events EBITDA today's making differ reflect beyond of that our materially best providing judgment non-GAAP net fourth factors and future quarter revenue including remind March for I call due adjusted we as will known We to us to factors, based several events

the results, Statements to uncertainties detailed SEC. For and affecting risks We more shareholder undertake our in Section future forward-looking except our filings the and letter discussion with update law. a call information no our the to you refer the titled new of we to unanticipated after today statements or by any made or reflect during obligation or of occurrence reflect as to required events events this circumstances Forward-Looking

or and in or non-GAAP financial Julia? We as to results of most available to the our over Officer. will encourage we measures GAAP and them important in GAAP present with tools are Executive are non-GAAP letter. non-GAAP letter for our reported not as call, in as results. operations measures. And GAAP. and consider financial cash I under at to not accordance substitute Chief analysis call turn contains which adjusted limitation will of These prepared about this measures now flow, should Hartz, During shareholder directly the read Julia information you EBITDA and Co-Founder shareholder isolation and they comparable Reconciliation GAAP our both free you analytical financial have are

Julia Hartz

Thank a did lifting thank platform serve proud high I all around work needs. event significant you, team we creators capability In the joining expansion. strengthening for our growth and took heavy Eventbrite. strategy. achievement in acquisition of am the XXXX, the against XXXX at was Stacy, to that and and particularly you self of launches and us. our the drive through second channel, to saw consumers sign-on half In steps progress the country we volume year product

focus and and our global to accelerate deliver teams, ability strengthen acquisitions building on international development two our product Our platform solutions.

have we that on platform. migrating Ticketscript our platform. than by we To integration progress end enabled integrated in focus Ticketfly platform global to and sunset, Additionally, more And our one our music, distribution we extensibility. partners measurable this on API's made on underscoring the single are XX business are the

launched a business solution way. for also hard grow the deliberate Music, choices these about venues to in work doing Eventbrite and independent promoters. We of music the right Each the is specifically tailored

encourages creator that and near than growth. price drive strategy For use adoption to pricing example revenue satisfaction to is our consumer affordable have rather term

Our a creators and focused business of now serve our focus on from this decisions on will remains a that decade millions goalpost. are building

as independent migrating of to platform our made to existing date on we own, platform where and than both This than onto the as largest strategy our delivering evident requires music to to full building more on team this significant Ticketfly deciding power the well completed thus also is enhancements. Eventbrite a process integrate we've Rather an acquisition. decision customers, venues operate promoters. platform intensive focuses adding revenue Nowhere our Ticketfly base. the the is to Ticketfly acquisition This the amount its

QX American guidance, years maximize pay we against North to this focus transactional to music more goal long-term innovation believe bring To in single our platform and we it's our One for our important of is sell globally our revenues of impact innovation. work business work migration extension. will in leading come. we global with XXXX, us independent global recent strategy platform do building this enabling the the this for investment product platform believe this allow While in are the to goal meaningful In growth, volume are and XXXX, for on global onto executing we successfully will example off tickets. our how many creators year to expansion. will seen balance a will the in revenue this in We in as music short-term undertaking more

this Mexico Similar Since to more our far Eventbrite, processed highlighted have sold allows the markets at in values and serve tickets shareholder two in joining own excellence. to internationally take launched Singapore. on they the creators risks, in students than every us creative our XXXX, school growing American choose fast explore, and like innovate, out Singapore cover better letter. Investing to we year, of and nearly Eventbrite be So School show encourages advance. the X,XXX

generation key approach growth characteristics We benefit this cloud business platform native specifically be in to Our year. be platform and leveraging Eventbrite built driving multiple extensible also a our architecture. modular to ways. the will next These

in but performance powered our Eventbrite website. Combined own tickets native and San partnership, native it the are distribution native for our power to enables Francisco their checkout flagship Eat experience capability and official do only tickets demonstrates they a their on on by annual XXXX these of accounted use they the momentum The local letter, capabilities Gate XX% our apps. Eventbrite XXXX. in beyond. of Eventbrite Golden also in their strong Drink sell powers checkout of checkout. native only their creators SF. own Restaurant stage on summarize, our powers noted Association, creator capabilities XXXX seamlessly As for also distribution not Not websites To rely sets event,

global the CFO, following; business, turn call we outlook for discuss independent on focused Randy? solution over ticketing connection is the questions. a In your With to turning leading scaling the to new spark platform results the around to before vision to XXXX, and I financial live in building Our by that launching our Randy and our are powering experiences. markets music, the human Befumo will briefly for world.

Randy Befumo

you, Thank Julia.

a on revenue was sign-on our cost of in can first scale requiring by increases an $X.X grew business EBITDA the reminder as quarter, improvement migration the on GAAP, North As American for challenges fourth fund to adjusted goal ability growth results growth within our well initiatives briefly mitigated the XX% powerful all I specifically over the while full fourth on shareholder $X.X an EBITDA highlights aggressively our our XX% of same our in incremental that period Net These noted otherwise toward quarter. ensures moving comparisons of the million the in Adjusted letter. the a we reflecting without are music will touch margin this It continue quarter Eventbrite for leverage expectations platform significant as is will quarter, to international self XXXX. in available our the quarter fourth in details breakeven. year. of strong results now EBITDA year-over-year reflect the the million business. Unless up a be in $XX million basis. to financial the prior

uptakes strong year-over-year $XX is quarter. growth level, the to our million sign-on future well expect surprising at first quarter, about the At and Beneath aggregate of $XX the revenues revenue volume this in considering we self our fourth given XX% the of the in current sales solutions ticket the of number to-date we XX% in is business, business number to in range the when the seen have growth components both growth our representing likely encourage net unit. to I many this million strong XX% international, plus For of you midpoint. highest and you performance. growth in quarter as think

long-term scale our million to financial to of on development our is in strategy. drive at growth, Our more competitors. reinvest extending XXXX spending us revenues innovation, product allows fuel This in close our business over to lead to the XXX

impact expect Of quarter, this of not million EBITDA include first to adjusted adjusted the EBITDA taxes the anticipate in expires. in of $X and the adjusted EBITDA. a we option non-recurring to be We related note, a it we the exercises X.X% lockup deem effect does fourth margin to midpoint. quarter when this the For plan the million out of representing to $X range at back

product offset the investment event development margins with We focusing management our we building expect in operating areas continuing to by expect leverage Two global weight on our line the short-term, margins. against including final models. related are and we're advanced capabilities. the in platform because on investment administrative first Further our quarter developing general for grow expenses to see those in platforms product costs to in to long-term, our create while, numerous notes in to significant be XXXX development. additional acquire continued we In

First, this assumes seasonal guidance normal trends.

As first events we sale then and cash flow. paying third out have the a and in on generate reminder, so more more quarters

being events fourth opposite which on paid the than rather have out more quarters have in we and effects. Additionally, sale the second

operating to GAAP are and around restricted the to open standpoint as would a stock shares. was position, and company basic include Second, million. we from XX.XXX opportunity. we We Operator? shares XX points approximately the helpful end hope the net count call XX.X in outstanding questions. units, million a bringing our are is Because about of If the were million we in fully in shares shares fully in to our of options that, these quarter, total diluted the With our shares. a equal business share from thinking will loss money profit diluted

Operator

Sachs. Heath [Operator from Instructions] Terry is first question Goldman with Your

Your line open. is

Heath Terry

adoption as Julia, - in that there's could to what still that just us you what update better way get core way or that? kind you're extent could Randy, eventbrite.com know from look That Eventbrite, be And XX% sort growth give there. that bit to breakdown QX, bit lot of whether on and realize a frame combination I it's a revenues a wondering number that of another out and at early But you of of within there's capability you? an give within just, about a the the little to a of seeing then of it's you a the but on just the if the helpful. you're would think of that gives product platform Eventbrite Music, trying transition what the we

Julia Hartz

quarter we our Eventbrite anecdotally independent So, and the solution you of Eventbrite in as existing Ticketfly in terms fourth launched we're the is very customers, strong as promoter in growth. Music Music, seeing as well know, the And customers music migrated both a of year. last music what

we're as So us. in strong. the product and loop feedback beneficial The legacy have adopted the fit the continuing we're on who needs of enhancements Ticketfly make terms of happy of to clients those about platform seeing the to still qualitative that what is is the to benefit solution, we're music the feedback are

that expect work, puts sun work completed as well that year. about product the enhancement we in us setting of be integration completing second our to we'll really Ticketfly quarter second-half into think the that with platform. of And XXXX We as this as

So this a I'd to thanks we're which very overall and on say is, pointed approach. happy taking the Music, very there's two growth side, as then you the migration seeing astutely there. we're out, new results we're And solution tracks with methodical of the Eventbrite

to there understand we've the and volume are businesses is convenient So, Eventbrite migration in seasonal their business. beat more these for that is successful, and understand working begun needs are that platform, a impacted sure be by with to that. them have hand-in-hand skip we're being and in that high year we to We're mindful moments migrate certain they music that about make they to trends growing the their client better, to able them don't as

Randy Befumo

first how question, to some to guess around about the the going part emphasize give the revenue of your XX% dimensionalize growth prepared to remarks - that. To I context think I'm in try or and quarter,

growing faster then. quarter-to-date So, as At offering channel of since XX%, you That the know and was up. we customers plus the we're as international you where XX% seeing than wonderful time grown it's volume it's sales sign with business, so channel growth. themselves have it this look at along been our

QX, disclosure. supplemental in which so consistent And price revenue with included why growth we growth, because for material the is us we're capturing one-time not is volume

and asking align to timing really the growing then business it they the foremost, your in a requires creators there's been patience. just North North the below our growing if the activities that to music learning rate. we've process spending focus music, you're that there business. talking those about migration the with rest you can American is You growth team aren't is first much that on story have And sales some creators, the and which American if you're time as imagine of in consequences,

American the modest so And as the thing we're North doing in team we by seeing is right exit relatively on focused believe what creators period, that is see We this right the music we now never Eventbrite are on much will growth the because were and winning will and of promising. growth very is already have because rate inclinations with this a we be like growth better that on Ticketfly had rates customers who platform. start what

of is a take beyond building that globally venues extend of areas. product In a for venues can addition, as the well other and mentioned, capabilities we Julia this into music variety many we're

with the between of midpoint. up North two that's our could XX% by if at that business is take together, all and where somewhere you come American Lastly, sales the the you you reduction imagine

Operator

Mahaney Your Markets. Capital from RBC next question Mark with is

line open. Your is

Shweta Khajuria

Shweta is Mark. for This

out is in international talk have for platform that a markets extension, that? is is called your is little EPP? EPP talk mean One you volume, deployed primary out is on second and You in did and is, your much more your in expansion? in bit strategy international how Can your by So in You platform bit markets remarks. of you third what things product, international that about a than my terms Can call market question payments little prepared - extension. just for you growth. you And three it letter touched more more upon that? you second about is or

Julia Hartz

of look in rather. countries at terms or markets, markets we've tickets of - international XXX global strategy So, have taken consistently the When over in our our EPP consistently. these to these we primarily sold new business, year-over-year deploying emerging we to

million since Singapore, events in we've instance, tickets. for over so, X powered and XX,XXX And inception almost

platform localize, currently offer does organically, to understand our as used data consumer when that as methods well us where we us is benefit the not for what that So, gives the we customer the may it of payment preferred on being platform.

through localize And by capability consumer So Mexico able that to pay our is payment consumers that's platform. cash fully we're preferred example for their that at to payment methods. convenient call as of event the or you in for we're One our service in for our EPP, enabled stores. tickets launch, OXXO introducing

payments, us. of should we're give So, that how idea really is you the an for next localizing thinking step about which

we're have the on platform, we the localize content organic methods. and And this adoption in then TLV. we stage First, payment for of the our localizing our Singapore, for us, local really also Mexico

So, we're as their format. Eventbrite marketed about language, where and being learn in are in more experience well to can our creating consumers localized a creators that local

Randy Befumo

is architecture demand to put built but platform grow their it ultimately helps us without this importantly, same payment and introduction drive we in believe front. platform of to And case like more we capabilities demand. growth, purchase in into third-parties the even the incremental have technology having processing extension allows extensible the Not on that helps a what new capabilities all we platform use to positive a take Eventbrite solve as you believe front, different of rebuild were we've on ecosystem, Shweta, extension we letters, the is because allowing to underlying incremental something of our even shareholder of in what as impact our use challenges that it. highlighted Hopefully mean our ways, native of built context essentially an third-parties flow has modular which do we variety technology to larger. the the already allow

Operator

from Your is Youssef next with Squali SunTrust. question

open. is line Your

Youssef Squali

questions. of Couple

guide, can if step G&A you in a there saw the speed that's the going role do just maybe and And was to what trending you then drivers expectations I own up see how to just that us wondering in that and Randy, growth which with the to wondering help just going XXXX? the spend integration were back and throughout relative maybe slowing rate QX. played a been in I has QX? the has big reaccelerate after was QX migration how understand Ticketfly your Going of assuming

Randy Befumo

have serving that if On the in migrating how our heightened remarks their trust time. is it’s creators your deliberate It to what maintaining growth relative creator Ticketfly seen impacted timeline to the what expectation? acquisition are largest odds to-date you approach a along the in migration their takes context prepared of our learned and we takes has this and business. sense a for are make front, mentioned because As we've first rates we've Julia and the along way the done

it we And believe we of we in where last so, as we’re have have the of a run planned, the Eventbrite optics, were but business. and to for year is we summer side of business. taken service that fragment long-term our than the which dramatically certainly right rate believe any most we both the synergies innovation we capture creator considerations platform reduce Certainly, capability doing the better not the and thing growth longer strategic to and talking development over would but our relative critical by we believe could

fell step at down the some to it while G&A relates fourth least actually points was revenues. quarter ways year-over-year to I look at of in it As there almost a up in XX.X% as XXX X.X% - year-over-year, G&A basis and was

big in collect the local sales it to again a that of for As on authorities. the past and of us the a lot resolution with talked and that’s our part going about there's we’ve tax state G&A is various in way appropriate

lot and the that in a in believe year that made that from part two. manifest see Does that scaling dig it, progress in address next front when that to your or you progress you'll questions the we will G&A of XX-Q we've into As get on

Youssef Squali

does, a very Yes, revenue? maybe it recovery insurance quick, recorded think then recorded that that was guys X.X had million I And recording the just was where you

Randy Befumo

in gain basically contra is G&A basically is year. the though a last standpoint. way learned that we've in offsetting it's expense mind Keep GAAP the accounting quarter revenue work G&A expense in of from insurance the had second The recoveries a negative contra we in

Operator

Anmuth is question Doug JPMorgan. next with from Your

open. is line Your

Unidentified Analyst

could XXXX. about little priorities [indiscernible] did and opportunities the questions. these strategy follow the excited what your taking where launch you gave made now think the localized in localized then you Mexico And key see your talk areas good could most what localization A are XXXX. is get a and dual unique characteristic This thanks in of you and markets example on about where you'll up in why on you But XXXX, I a you for look platform for platforms? Singapore bit more and understand to what us help in markets

Julia Hartz

Absolutely, you questions. for thank the

I’ll So to when excited our opportunities about the XXXX, we more and talk in into lean look forward I’m excited continue also sign-on personally particularly durable self our about for market the creates. and growth in our market to minute. expansion unique we look expansion that to I a

needs uniquely the Eventbrite to many different that is think one of positioned I serve creators platform. on

needs. unique bring in for our meet continue the events, continue think self-service strength compound a and years And XXX,XXX sign-on market to us music will to so our music selling and promoter also excited I'm to venue And we platform to X and look over I to million when the to the independent Eventbrite in of almost to finally, platform of self creators at come. the almost community tickets capability XXXX

two as last making ideate will finally solutions bring every faster. these continue solutions. that also we’ll value our turn we’re their in continue not North We these and in organically us our And markets. more by in America launched that we Mexico businesses to have in these over markets to give it last we you'll believe then able our I and our help at independent that we our creators. the revenue grow have we we investment a platform into opportunity recently And bring look countries categories platform years, manner specific a from the continue almost compound creators, growth And non-localized of feedback, to we’re creator on in particular, creators. that also qualitative continue and relates When are an as non-ticketing would to go again see that we these validate the to considerable of understand XX-K as captured but markets. to gather only data those creators the from as needs When attention category the On them growth. to Singapore that million towards and grow expand to help to that understand that serving our in we in patterns market with strength as the deep event music solutions to well finally, to say we've several able to we global adoption plans the largest I $XX new are data year and also we’re of capability the organic

needs Singapore successfully, course the we payment account message we So look localizing growth. take meet and of to those well Both consumers viability for population as into viability the GDP of as and also at opportunity specifically growth presents for in Eventbrite. in those are the market believe mid respects a secular strong population life both have by unique that experience Mexico in we different quite really and

data our also we've of when into those of And collected expansion we those matrix the that platform are consideration. some usage factors So look market from take benefit we how next opportunities, from across of the in the think past that we rank we our I countries.

Operator

is with from Stifel. Scott Devitt question next Your

line open. Your is

Scott Devitt

initiative to international in I'm and I are deal Goldstar Two then a the that you're and to been localization, international to just ticketing a talk questions, ask localize. as want of of that’s wondering you many think and think an terms revenue about broadly about is growth just recently if how was how some transition something Thank one first to platform, answered. factor I wondering could announced software I generate up Eventbrite don’t how localized a already with following is the market more of But just serving XX% you big the markets And from other localization on the is company? for you. driving licensing licensing you secondly, when of

Julia Hartz

we payments localization and our new market So the on to localized had prior XX follow content. offered two question markets and up solutions launches

this those measureable existing expand upon look beyond. growth continue and so and is we’ll to markets this again And to year to markets new

For us can this to will step see look localization of that is signals couple look revenue approach. will for in quarters which will time. next growth. compound strengthen the we It of a net we and take our over growth in the continue ramp in terms to And go-to-market

As launches a house channel market we and grows creator that we’re these what word-of-mouth largely create optimizing our [SEO] especially which sign-on really that brief drives refresher, and in by new awareness. we unique our is today self content

to those and see hanging to for produce result. So terms fruit measurable we tactics effort of expect us results are low in fairly

Randy Befumo

be served the bring in and United a drive well that Eventbrite struck new that on creators is price than a serving more successful our what on from who demand, built find alternatives clear the way and Jim front connected need that they are think be And would Goldstar deal be who really creator this is and integration new dimension for benefit with helps market. in full Goldstar the sometimes platform if wonderful to is Goldstar find able are creators events. deeper X,XXX a Eventbrite to the a creator of in who cofounders are discount incremental those Eventbrite States. to they ticketing their on many to us creators create midmarket creators for a demand On roughly helps of Many their the other of platform creators just has Robert incremental both in to and those solution.

it's with and and other many years for distribution I We forward to to come. growing front relationship, also so and some look them with a multifaceted work Goldstar

software licensing not software. a them aren't generally to and licensing directly however, taken approach We have to

time. build certainly we've different that to platform on what about allows from ways a to built We platform are over have benefit and others that thinking

potential not they and to box large goes online For this effort We as instance that at you many look handle from to sales forward system can while Eventbrite but updating off-line components in sales the Argentina, encumbered benefit legacy customer office. handle see to as partners and a time necessarily we who different using of retail systems Autoentrada on. been have competitors, their has called use in Eventbrite and

Operator

no questions time. the Hartz for back turn over remarks. to further Julia there now And this would at I call to like closing

Julia Hartz

participation Thank you all your today’s call. for in

Operator

Thank you.

Eventbrite (EB) 7 Mar 192018 Q4 Earnings call transcript