EB - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is [indiscernible] and I will be your conference operator today. At this time I would like to welcome everyone to the Eventbrite Inc.

Second Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks session. speakers the will question-and-answer be After [Operator Instructions]. Thank you. may you begin Finerman conference. your Stacey

Stacey Finerman

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

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

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

with isolation are prepared in accordance are encourage consider Reconciliations to them of non-GAAP results. During not of measures. operations this GAAP our in time tools results shareholder and or we read and reported important GAAP the financial These are shareholder you about analysis as will our and as and to as GAAP. comparable free We non-GAAP analytical financial which not should of letter it financial information under for present our flow substitutes letter. both most have directly adjusted available in contains measures cash you EBITDA non-GAAP limitations measures GAAP as

and the Chief Hartz, call over Executive Officer. to now Co-Founder Julia Julia? will turn I

Julia Hartz

Thank thank joining all this you and Stacy for us afternoon. you

experience a into and are bit by dive drivers we provide Eventbrite by business which become event any creators. defining through on the wanted is self-service experiences focusing self-served a content a the event color to their building By to on third-party to to of create, for and growth. major distributing and we of platform platform. producer business a with Eventbrite more Before manage has on enablement nature together the of current promote grown live world sign success. future live our and The top-line off core to results can founded products, the ticket enabler We bring platform sales characteristic I of integrating apps drive how building events creator

revenue. This to basis customers a market. Through segmentation countries. Last of creators subset year a our produced X scale active amount identified by XXX,XXX gain who a million we on in and about events platform data-driven insights global we use our has the XXX allowed deep us represent most nearly powered a our disproportionate frequent live of experiences have

by hosted great retail experiential a business a of based was example on which platform. CraftJam entrepreneur Soho. studio serial on customers sign in is crafting X,XXX and a founded Nora A CraftJam self social pioneered Eventbrite active the events has highly who Abousteit, over

across best build the product. educators we on provide To series the platform since XXX hosted a need organizes who [indiscernible] the is of experience the for over development have country. example events self-serve They to professional these Another trainings best for customers XXXX.

is of active leverage optimized ensuring we of In of An insights how needs are inform our product add-ons. growth. to needs an our to the and long-term highly the simultaneously meeting their parking creators platform of QX launch channels is strategy VIP vouchers. different for we example our upgraded data address to in premium which near-term drinks allows to feature while creators like these This in passes, buyers these customers offerings with is the ticket discussed upgrades letter upsell our

launched music take all swiftly observe moved Eventbrite month. clients this but is capabilities available new, the the add-ons. the X% make same creators functionality of for when of event initially in increase We capability Though these our to average an following we to creators revenue advantage

sign-on XX.X second Turning compared the grew XX.X% XX.X% by led to in paid our to results strong million tickets period. to grew same self quarter growth channel by quarterly which

of This a our bright on revenue business. from led came grew and currency total quarter strong Another in net both by growth by Australia. spot Spain basis. was constant second XX.X% international international In growth the

In this now powered in quarter events. more we Australia fact have crossed million we X where an than exciting milestone

Our wine continued platform Australian result the market growth who has in countries. of XXXX our events scale creators their tasting the Pinot Palooza using to six have XX cities like in across been since been internationally

hosting events classes they collective Ladies example of together creative career dance frequent Leisure to and communities are a is In wine bring events through hosted XX more like than friendship, Eventbrite. designed addition, on creators and speed-dating for newer have nights, Australian workshops, events

America focus of a of clear line North the phase migration we sight Ticketfly the beyond the integration. have Turning to to moving

sold tickets Our have is X, goal the to October all Eventbrite on XXXX. by music platform

to have and work ensure and their to yet order provide quarter ship be in We're second support success clients now and migrate. critical the their the than capabilities continues clients XXX by in team to made encouraged The platform. the Eventbrite progress both migrated fewer ongoing migrated to to product on

efforts is momentum in deeply FlyCon quarter. in second relationship our a driven instrumental independent event The of industry and business. music client annual music the driving June migration proved

owners, this team an music office provided than meaningful promoters, box talent with and Eventbrite dialogue buyers the together managers XXX greater bringing for tight-knit top more opportunity So even community. venue with

be clearly live in we progress to our and believe product done While there's music work commitment making the we're still to our showcasing significant independent industry.

a music. that Tennessee to significant has performances. We’ve new music recently venue a signed balancing with work clients built and in Eventbrite with experienced retention expanding agreements Caverns their growth the We're migration cave into since attracting concert

Francisco. for to Yerba focused Arts here to working Rock first the our venue in needs in Club our platform of on Anchor creators has strengthen Center prioritize their City The to the in feedback new business. and San I'm order team a how their Atlantic proud Eventbrite [XXX] listen Buena and and

Randy will now results address outlook before briefly we Randy? and your discuss our financial questions.

Randy Befumo

key quarter. our letter. and the our Thank a you on second financial give from will on business third for in you results highlight our more Today details Julia. Full are results available shareholder few the quarter color I expectations

growth be compared have quarter to basis. XX.X% of quarter prior cyber the Adjusting of for million increase the a comparisons year-over-year would the $XX.X incident Unless will Total XXXX. the second X.X%. all period second otherwise on a noted that revenue been was impact in revenue for

EBITDA quarter be a shareholder use million down adjusted adjusted have reconciliation was of the consistent the letter second year. adjusted GAAP to EBITDA slightly and financials. $X.X see from in our the with We generation cash for Our EBITDA found million it $X.X in to Please to prior the business manage period.

revenue. our Our second demonstrate global quarter to results ability expand

Continued strength plus sign-on of XX% paid durability. channel in volume ticket our and emphasizes its self growth

flow our of on levels well from quarter improved sales acquisitions rate cash by growth tax first Free as as execution. driven releases The positive basis modestly dissipated. and impacts turned reserve a from trailing XX-month business

representing be to midpoint. Looking $XX the range quarter of year-over-year $XX in X.X% to million forward we million at expect third the growth revenue

normal balancing are against we trend the revenue guidance the platform. our quarter consistent a challenges in sunsetting In of fiscal quarter-to-quarter the to of year Ticketfly

-X.X% related representing million loss expect a impact minus minus is of of to adjusted EBITDA The be midpoint. the this the to X in adjusted X Roxodus. to bulk We EBITDA million the margin at range of

to We those growth. continuing models. are Two the notes for to in adjusted building focused in to drive business while on positive EBITDA the term returning near long-term reinvest

The paid on guidance builds first First, trends. in more and more second sale third while and out sale. quarters in than declines the cash are paid business as are than assumes cash the seasonal fourth are events are normal as events on being out quarters typically

Second, the migration quarter quarter anticipate third sunset impact platform Ticketfly QX. with in the as impact appearing full we we in the

to Operator? call questions. the open will we that With

Operator

first Your from [Operator is Squali Youssef with Instructions] question SunTrust.

Youssef Squali

I Hi you Thank my question. -- much very taking I if could. two guys. have for

by to think the quantify platform revenue I you was that contribution business million you penalty maybe third their profit on you're and then to giving if First said creators. Randy I secondly X the the reflects maybe the quarter could that EBITDA back Eventbrite the just to guidance that adjusted their money wondering or yet for that to just potential that shift have XXX and customers X, October the

from the maybe Number one Thank a company there's EBITDA. insurance and million Can somehow just you. can deterioration how you that out help even [indiscernible] or back understand is that did still adjusted from you you there that two get the you us I your get reported? into plus insured

Randy Befumo

Yes.

Youssef.

less in general so made we pieces move work have few but to So XXX end customers we've that progress the larger towards aren't a do. the have customers to first be we offered and but to than on some we've revenue still quantifying tended the the over

will into activities the future cost expenses which largely and bulk around buckets. rest will administrative quarter building believe particularly is are quarters second really one around around two and work attendant operating greater the the of for then it is adjusted platform Bucket ability scale is we EBITDA some On Roxodus be contained we Ticketfly setting of and in quarter third be that also quarter. the basket which in bucket in sun believe a it contained to of there's The the it. general

Youssef Squali

Okay. That's you. Thank helpful.

Operator

from question Blair. William next Ryan Your Sundby with

Ryan Sundby

increase starting a like broader use add-on creators these taking my functionality? is you're increased with roll of Yes. [pad] product to category Thanks or certain to for I Hi. functionality out just to there as see in that set the want ask you question. given your more that

Julia Hartz

Ryan. the from Thanks to you. It's hear Appreciate question. Sure. great

counted It's So an that of creator allows any item that not ticketing. that this to inventory. for ticket a charge type goes beyond event type feature we're against of ancillary their is solution for offering

an category. is only requested was the a but that widely venues music of not board of festivals across This and example by music feature regardless

migration developed highly during coordination Eventbrite sell able instrumental our checkout with are it we quickly event is on business events the to so active managing item be the And to base business. their hosting while effectively process creator ability we entire it to that really to for we able of up music the an roll tight Eventbrite, and were particularly to who on their the these frequent creators growth think efforts out and in on

is selling this platform ticket on a step admission. functionality or and expanding selling So a beyond just the forward the Eventbrite

Ryan Sundby

to want then less place understand took that will than and sure it sounds was Any And it. this Randy in make churn thought. it behind shareholder then come like but there you in like why color QX kind in QX Got the just I that. letter of sounds

Randy Befumo

Yes.

I think question largely the holds answer Ryan. your

of might calling certain the we're actually the we Eventbrite activity are migration so platform. we basically talk seeing but as moved thought of day sense we think that where of for and conservativism results we with actually because of some until customer shut weighted seeing down customer is be what they've do we're the will see the not So it we leaving we guidance are we but left customer the the interest QX QX know not in who by any into until and platform to is we the didn't in we not building

Ryan Sundby

to number going Okay customers platform what they're to don't the kind way that on customers XXX know the are there guess I on then that a quantify of to that with going are do? the they of convert, is and

Randy Befumo

outcomes. Not customer easy issues, interest, build largely real needs, and and quantification, set a has have of unique so that's challenges no using every we what weighted we to range active with a of a customer Every directionally quantify, have sort a no of forecast although conversations. there's probability

Ryan Sundby

Okay. Great. Thank you guys.

Julia Hartz

Thanks Ryan.

Operator

questions no closing turn call would this to to Julia like at I over There remarks. for Hartz time. further are the

Julia Hartz

us this all Thank you afternoon. for joining

Operator

you. Thank

Eventbrite (EB) 7 Aug 192019 Q2 Earnings call transcript