EB - Earnings call transcript Q2 2020

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Operator

Good afternoon. My name is Christine, and I'll be your conference operator today. At this time, I would like to welcome everyone to the event by Second Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like Ron the Relations. Clark, now your over speaker today Head to would conference hand to I of Investor go ahead, Please sir.

Ron Clark

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

that statements on we materially many of such factors, August performance. we will call, beyond begin, during that today's financial best our control. I are Before reflect actual could several X, which and making statements would events regarding forward-looking judgment you We today, differ events like results to or caution factors to remind of future future be due as that based our

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

present as of analytical and not tools. measures. limitations adjusted we cash flow, accordance free with both in prepared During call, non-GAAP financial this principles accounting which have and will financial non-GAAP are are EBITDA These measures generally accepted

results. the results Co-Founder of are over the letter, not Chief or information operations contains consider shareholder most our analysis measures I'll to GAAP substitutes Julia our now reported and of Officer. about comparable turn to letter call we read that, our available you financial GAAP Executive non-GAAP should under and with You it them important shareholder isolation And Reconciliations and Hartz, directly in as encourage as for in GAAP. to as

Julia Hartz

for healthy Thanks, and you call on ones and your We are loved Ron. thank everyone, the us and hope safe. Hi, joining you today. that

online held solutions We event many the in on at last creators more tickets. host tickets more of increased X event prior overall nearly in well rapidly months, two creators surge work that more center activity and part the levels. events extend their for as times of last nearly few In than things: the paid reflect with I self-service events. volume I'm unique has the their the by year always second the as durability our – challenges ability founding our frequent event Building our We XX on from to As X/X platform creativity struck quarter, million on million Tickets day-to-day total face a the second to impressive our resilience large the platform meet used than and their to processed to in believe of quarter's Thanks and evolve needs. XX been activity. strategy. reach as online our to year, event creators.

In fact, last compared year. XX% to number the of

new Author audience Eventbrite relationships also to they businesses. and July. these Many to gathered of being how attendees. frequency. XX,XXX using are rely offering We success to continue The By are featured local increasing hosted nationally features, the Ibram the thoughtful Free racial with ticket and online the beyond their event our of X. creator. creators also Eventbrite is of just global was stronger one delight are contribute year-over-year as with example second on hosted justice. in actually powerful virtual expansive This quarter creators and to drive discourse reaching XX% in at Creators ago level event engage their with free of online unique their Eventbrite. events we and grew audiences – their events. and volume to creators are and audiences with In expand year the which build Market books expand globally. we discussion shareholder seeing them a helped Kendi, events letter,

second are in normal gathering. strong to we the below pleased restrictions due While with the quarter person creator volume ticket paid on in levels engagement, remained

current as channel. We throughout signs and are, improved creators quarter however, are also July, encouraging in adapting seeing event to strength the Paid environment. seeing are we in Self-Sign and the second the tickets consistently On particular

duration We will scenario. not predict prepared for recovery, are any but the of shape or we

very event this live experience position to time our continue to creators rebuilding to economy. best We and the as are for experience platform product using be the solution

market as confident critical of the and Vivek as central want choice And mission We focus, to in world enduring with Sagi experience our events serving product-driven efficiency but and to navigate I report will Time this during brings than not world, I our to that, ticket Eventbrite the for in To will as deep dedication and Their improvement only ever of to time. Eventbrite our both this pleased rights company. to it over expand unwavering Vivek hold into Technology well is leading event vision engineering critical When this are and creators. creators' us even makes that event respect committed time, starts providing globally creators teams. and has to as thrive remain welcome buyers steadfast future. directly an to the over the important. turn are help needs accelerate team we platform our XXX its around Vivek to for our critical years cement pay live more team by Officer. the accelerating progress, distributed commitment XX unique We future. features Chief I temporarily to will while and he to as as we week, next changed with most share and of creators engineers stronger worldwide. high-performing customers in and believe position us ingenuity the an millions on what me leading realize shipping solving greater features of vital our helped to other and Lanny. while our drive platform the focus continue each

Lanny Baker

Thanks, Julia.

to XXXX ago. a quarter And to quarter of shareholder was the $XX compared ago. our in breakeven loss was compared year for million revenue $X.X second year one $XX EBITDA adjusted million a reported letter, million As

resilience figures within headline immediately the in the those reveal not residing we our platform. do However, strength our see underlying creators or inherent

then July that from than in paid volume in volume layer late can XX% transacted Paid May. April grew XX% a or Going June. by XX% ticket rebounded May a April to low two grew in ticket tickets to the another deeper, share June was of more in quarter higher we After XX% picture. for was paid and from March, hitting total ticket in paid by of June. volume and

our nimbleness events a entrepreneurial only during million Eventbrite of and flexibility shift are been processed paid our very to and XXX,XXX platform. March. X to of on social improvement time by their one compared and pandemic hosted XX% For XX in down a It's focus as We volume improved creators the Not see exponential May, Tickets opportunity XX% creators late half our characteristic an quarter self-service existing our and reflected XXXX. second in online, in Eventbrite. are brand-new economic the events confidence July, to more businesses business. of reinforce Smaller, declines ago creators least our also again from customers ubiquity have just highly in thanks volume helping March. organized just down online growth acquiring this Results and and and who in the like better. franchise. Eventbrite. support within these, in were Self-Sign and free our since in challenge, creators year-to-year enormous the the in year steady XX% than Paid of was paid million during frequent have demonstrated our On were fared July. progress event the we of consistently More long-term XX% first new our total those channel their in April, XX% figures, the quarter, to market XX% we Within has of self-service in in even a and online over mainstays local, event, to nice in heartening XX% business these tickets second than we're online saw who year-to-year, at creators, about June creator the smaller, in ticket highly ticket quarter of the

in me through these results not Let financial for our line-by-line are turn in back shareholder because detail our the now letter. I'll to covered the quarter. second results go

However, I second quarter. the COVID certain do to attention related impacts want in call to

revenue. in of $X.X First, reserves million reported by the services reduced revenue fee related quarter refunds was for million to anticipated ticket $X.X and

quarter to marketing due support reflects in for total expenses quarter made get APO booked million $XX.X of Second, exposure, reversal we of to a by the recorded minute. million in and partial was reserve the we've XXXX. the reduced I'll sales, progress reducing within back operating which were first This $XX.X reversal of and APO a

ahead operating with of recorded all that annualized in have second expenses initiative. we And to $XX fees. the million a roughly would $XX.X Third, expense quarter, and of associated recorded out, XXXX. path million savings. been our other costs expense This expenses impairments we quarter or related it severance million in the over $X.X excluding in our basis, on expenses these of with XX% On $X reduction finally, operating and slightly Netting in from us creator impacts. associated COVID down $XXX million were million plan contracts puts

have $XX progress Based by $XXX declined and Since This made XX%, enabled our XX $X we've and losses early million our trends the originally by on payment by had ticket million unprecedented for period Eventbrite's that creators healthy which was to reduced advanced million start August the we've private therefore as in operations bond the quarter. reflects from outstanding our certain product, June the the balance the Eventbrite. attendees reduced advances or in $XXX less losses at creators stood million company's of in than suspended cumulative Moving during by advanced who we increase payables was liquidity, the cash as $XXX convertible and up at notes well we greater to is in million available from quarter. liquidity account cash events XX, payout out during equivalents This the of the occurring million hold cash and quarter. June the receivables proceeds is $XXX million completed at teams and $XXX what an or future to balance sheet. diligently APO and our we've been of the balance we worked back has netted offering serve placement sale cash seen, on plus progress with plus reserve ahead The industry. we at a refund X. in APO charge to of creators and program March, and payables available senior for million $XXX

to near-term ahead our pandemic Looking events. XXXX, the the the presents for by of remains uncertainty this the outlook impact live rest clouded of ongoing and

in remain and revenue levels in online below half and strength revenue on smaller While paid in paid since year. platform expect March, tickets the of events increases have we and ticket volume propelled amongst second our creators normal the to well

to Excluding $XX we $XX costs expect were which of and this and million cash million between be the fourth in year. processing quarters million quarter fees, third in the $XX second

to With of on in and loss open our future. by was on is creators to the steps their EBITDA as once, quarter our self-serve, to leaner June stronger second and strengthened million Eventbrite a everywhere. focus to industry taken operating our success $X questions. well range at to million pandemic, the benefits of for pressures and our adjusted we our line monthly sharpened ready conclusion, emerge committed inspired are those Eventbrite let's supporting reflect the the and financial We've and future. we've In in July. model the into resources. company for results external We a the ingenuity as resilience believe made $X Our operator? and position trusted today Please, the We're partner from creators, the that,

Operator

Securities. SunTrust Your comes you. from Instructions] the Youssef Thank [Operator of first line Squali, question

is line open. Your

Nate Mitchell

some hand, Mitchell you, on maybe for should trajectory I you do how great. from think This about the on And is Thanks. Youssef. here. we exposure Hi, improvement you're other like of have even to you're with think APO one just starting the Nate Lanny, think since open the and the reversing starting you sounded reserves, to rate back disclosed up. the it. program on slowed the seems hand, it But of last

So we would the color be more there should exposure? some of thinking trajectory about love on this how

Lanny Baker

resolved We're APO pleased how Sure, with we've Nate. made the progress and balance the thus far. has

APO the with balance, the features reduce significantly have creators, very which providing Creators continue out come majority the their postponements forth APO attendees with outstanding refunds, of manage more and have to proactively the rescheduling them ticket new of refund about course over process to events. ability helped the include introducing to of communicate summer. to efforts they Our reaching overwhelming like to credits the refunds, and easily

large far, a thus required funding have we seen number of backs haven't So by charge Eventbrite. that

to feel days date, and forward we time got in and has resolve balance. like $X we But take ago, or And we the look the million a million, we need. had six forward and manage pretty less as the at It five reserve refunds. been on we from of Our be look larger the weeks right we where season. than took able we situation said, things way, backs moving was continue charge determined those have we'll to date, now, some we to it's productive than effectively. originally remaining XX that as $XXX to $XXX another of we've and fairly concert experience We've been a trends to and summertime sit today outstanding festival million APO will

through little get far. we'll we look Things the balance ultimately will that, about bit how know more resolve. just so As I good a think

Nate Mitchell

can Great. the Julia, total virtual if hear opportunity Thank I you Are charge about online you on could of gaining wanted for you you these appreciated. should there the for bit or would events. market confidence for Any they events? events? monetization think a expand online how do color about that more How addressable little kinds opportunity that we with to revenue be really creators or seeing color. maybe And levels? think

Julia Hartz

opportunity online event event Sure. fund that creators Thanks, an for presents their national Nate. unprecedented boundaries. even Well, think expand or I local to beyond their our audiences

a our the can platform. most seen particularly one that have been creators the because are the global so has that Eventbrite of platform things on And we've impressive reach we

in our in So who we looking be things for growth are have other have already And frequency think creators. seeing each for I been common. connect big of over consumers embedded to ways marketplace, our has a they international We're with that and also with consumer driver behavior events. online and that to adopting to with ways to another events, formats both demand formats able live events. opportunity connect in are obviously, shifting new Creators be them for be be needing to online pent-up available with through that

So the one online ubiquity growth the the that as live on in creators is events I our as all strength the of Eventbrite a is platform both of creativity think and platform to testament and in the the well experiences. entrepreneurialism

these think events we'll – as and curve for formats up this our become mature, looking creators help opportunities more more start to to see adoption become we event I experiences. these online monetize live continue be

free free in to an tickets online event today, that that predominantly a online with opportunity there's free. gives – we lot portion events of a in think work in tickets, July – a in the The of I us our momentum. think that We regard terms year-over-year fact see big these big that. are grew

Nate Mitchell

Awesome. into back Thanks. get queue. I’ll

Julia Hartz

Thanks, Nate.

Operator

comes Blair. from Your question Sundby of the next William from line Ryan

Your line is open.

Ryan Sundby

so is for to related event. thanks million Lanny, understand taking guys, much way at start there on has APO how that Hi, my credit question. balance, just a postponed of I If that follow-up maybe questions. that future taken Yes. been to attendee help a $XXX events the we to that have look for a us is guess, to the

for understand isn't trying out maybe you what's at to really that guys? Just risk that there

Lanny Baker

me I'm event. be offering to us product new an for a future event. as taking future vast we've kind attendees. It's yet when to ticket see that make of to the cases, rescheduled. for future back And willing time. hold seen these for I'm a being has a refund the the holding though We've a through that even an all and be Attendees then with of event hold scheduled to our been attendee unusual creators the Eventbrite at requests or the that There an in where future we're take has a really a for point in when also to attendees, my a credit call north heartening very to between to is experience, there event majority that clear of this event defined XX% future stepped a ticket going money cases influx of effectively ticket. forward time. are such for been number for that a is to effectively, one highly say, us that assist willing seen time, and haven't been other some to event. clearly being ways introduced, inconsistent wait of that same Sure. money let significant to historical with credit of we of would both there's any Well, a yet to market which to first, difference for Eventbrite. forward have chargeback normal a send postponed has was are And able unusual

credit. matched things look postponements that ticket, the creators of ticket they ways, them. where likely between out events each we're both donate be be we value relationship with we they other I attendees of putting willing look as some calendar, the back all look on is think there most of – will to very those of in of the And in by to these their for healthy seeing that from communities in a communities forward, willing may the them. serving communities that APO the ultimate ask may some and for or of heartening either to to just for and refund cases. may as we out So resolution attendees are balance be they creators, about the a serve, they be eventually But is And attendees forgo communicating cases, a see the other it's been

Ryan Sundby

events Okay, the see, volume data around that's as we is paid each there helpful. for coming in any trend And would in then what globally Julia, U.S. see at are that or anything here free back? Is there the the month. or that either highly we I ticket build us. types are ticket volume you think, right and of you stand out cause geographies Or

Julia Hartz

Sure.

classes, smaller in be the seeing format top workshops, patterns. more frequent smaller, category really the whether they consistently we're of So events, at list seminars,

per increasing a more frequent to year-over-year creator able person. or events events, creators the is So it's that host XX% these online signal whether are in intimate

price. In trend, terms the a seen of to that the see places in-person like that in be COVID nothing quite now that eight recovery of events, except I fact We've remarkable. last on the over right Zealand, event major point for where the of of terms you would market recovery in New weeks,

So last almost in saw raised shelter outbreak they in order over the COVID decline the have eight they in the weeks. place that initial the

significant While back get of it's that signal we quickly the live in a on out contract, can to want out to obviously, get and how terms people it's small events.

Ryan Sundby

Yes, I the to back know. jump It’s I’ll great in hear. queue.

Julia Hartz

you. Thank

Operator

question [Operator Doug of the line from JPMorgan. Instructions] from Your next comes Anmuth

Ryder Cleary

Self-Sign Self-Sign Doug. sales. curious of are there. taking question an possible Hi, about Thanks kind are Ryder the opportunity acquired possibly But on ratio. LTV my is in sticky should used a inherently due brand its creators maybe creators sales how to of You've more that think Or XXXX this I'm about dollars you've times talked being channel questions. and just On second On creators XX-XX have word just wondering sales to better how XX recognition fact my that the an is, the then And there those beyond? through is mix mouth? product. they're if Eventbrite's implies channel between if it and about we I'm talked in to that spend marketing And to the for CAC for and

Julia Hartz

question. I'll I'll chime Lanny let in much. the first second. on take so the Thanks

and we that forward, sales as strength picture an we So different. serving We creators, platform On imagine model in recentered business particularly the opportunity continues going and is important come acquiring and sales to the Self-Sign going can part significant core the in and to ticketing of in channel, sales in terms our our think market motion be that that of be believe – serving through channel. around self-service they there's either the we've is self-serve channel our

Self-Sign important the sales growing, and bringing marketplace. On the are helping important channel faster and creators While play an is channel who in compelling the supply role inventory strategically higher-margin to does identify us

Eventbrite And adjacent high-touch of as well future have in lean high-value so to We identification as on an more much founded that services onboarding technology. service we of the of frequent to selling self-service in that. years we'll continue it's ago, know an It's addition sales, XX into about think mechanism we or platform the and ethos. creators versus great of our strength sort the as we

So we the Lanny, well. think question? the two do go second hand-in-hand take to want you quite

Lanny Baker

our And top just channel, have you're event, organic to an dynamic publishing of our of to content an in-person – at in online a looking of The footprint investments that at of we thought leadership, show acquire on list, from kind really that a breadth our that data, probably whether couple for of Sure. Eventbrite our content, very based and of That perspective, used sense in of in this us on kind when well. are we We particularly in event product acquisition lifetime really pieces bolster reach. our or really customer the that the be helps history the presence marketing paid geographical dollars creator, It's of really, event, up self-service with more and importantly, our looking built built classic for organic things. to goes are a on strong the attractive as as bio communicate measured is customers. for thoughtful to try very in return data with online. attractive those might about be this and we'll have crowd keep environment, creators to help in event to the will in-person I in or see doing things, be things we instance, marketplace And And on to investment. these that, move and to and when migrate anticipate events you an trends that how host well real-life the acquiring acquisition attractive customer some money spent or online events very anticipate and of big seen There room that drive But Eventbrite's Recently, bit creators spend continue mainstay of periods there. – I leverage payback than creators acquisition. little online is we'll to customer activity. to acquisition. organic on we've rather in on sorry, for increase online a paid a our our presence of spending cost

Ryder Cleary

Thanks. Great.

Operator

question [Operator William Instructions] from Your line of next Blair. comes Sundby from Ryan the

Your line is open.

Ryan Sundby

bigger Hi. and through we or guess, as see can audiences working you actually you we're talk Yes. and color. more Thanks where life and see and craft importance much what or I think July, how you, system volume seeing as the do about use you the volume data guess, on I free more can to for hybrid events. after broadly, of Julia that and platform? push are what your the maybe and the Lanny, can the data Thanks. you in through discovery events that categories the to tag that by driving go normal back models evolving grow How of world, a of helps events

Julia Hartz

plan. our data table as about stakes being think We of growth Thanks. element a

reach broad scale creators of new not a marketplace introduce global to and growth of because our grow events and their you the Eventbrite. consumers base to to is a about particularly as audience is us our this of also be us actually, well. broad global allow to take it advantage only to to very of the valuable able – broad, – does events of rather, when customers free consumers and online this the opportunity event the It allows talk platform audience for So

get good July, able of Eventbrite consumers in draw a consumers high sales from and X events, more million events. their seen our online to ticket and so more And And help new these sort to who those events, retention able happening is connect to when are creators of consumers over much consumers one destination, meaning even and we into tactical data publish them events improve for reminded also that or had this more four stickier We've to to. experience rate of the and use rate. more coming updates of they're are find repeat they follow event they're creators ecosystem for through real-time creates a being that

use one registrations that's the that grow. in we're the ticket collecting through way event we to that So data can order ecosystem free help whole

is second they connecting identify an front, it's and where able to channel. on spend can can be, can towards The performance be content the in-person We or on then an we're event through publish our We machine that with, online category event, case to to consumers whether want that. what marketing. want we point our studies marketing

events to incredible that needs. see – Eventbrite the serve we rate center and able on high-quality then content in and States or globally, homepage Some by of of activism our the meet really are see garnering we're the on search results newer conversion an trends theaters that to driving been put able events and we've those curated those up that have been popping up social front to recently in at really person events United being

Ryan Sundby

you. hear. great That’s to Thank

Operator

Your next Sachs. question Goldman comes Terry of from from the Heath line

line open. Your is

Heath Terry

Great. Thanks.

does normal Just into what do do dig with for to online make become beyond of we some go wanted to sort to first opportunity, Eventbrite? of from the to some little the of to XXX of take board back with Where of advantage and with tech time. CTO the kind a need look what priority that online, hybrid get do into idea a into part Hopefully, sort of part deeper this could What bit the perspective events a you new spending the time. new will fully CTO, really advantage that and to you investments role be for that. us see needs really over you online maybe but longer of a and the that with particularly want particularly take of days like on sort – it

Julia Hartz

three on different three, factors, product; Thanks, Heath. about two, Well, I one; think it and that marketing. platform;

now. front, weary So right at no on Eventbrite platform the is for the rest there

have advantage some infrastructure the We to make be to acceleration around then are the an taking and we of improvements. just upgrades through our of the time jamming lower to on platform quite to able some those for that create been wanting activity

So it's blocks. building fundamental

in continued who with customers us reliable build more also small can one us customers. our investments around models because time. or deliver and best-in-class platform and making that It integrate to pivoting business more to a this flexible our faster, new software are allows faster, allows particularly to faster value our at business important that So be launching to critically

The we experience, second and is ease-of-use customers. who that that core particularly that be completely self-serviced product a is are on product needs offer us features our is the people core use roadmap We of the of products how for can that our to there experience we nature are to a to ahead of continue of to frequent able creators. paid improve know functionality our the

help them much in marketers direction be right to doubt an our bit building how marketing. going the become the customers screen more is we'll rebuilding think successful of easily. no manage or And events data events. and businesses third we shoots this them will our ways which And they and grow. we little So emerge like things new being can efficient right There with We able talked about be are for much demand, to more start can opportunity period publish of is in incredible and out of time. the to there for But the by we then their pent-up creators. as – be pointing when and of is reporting series succeed a one

in on in healthy taking continue at things, shift transformation what we to Vivek's the That's really very with we XXX narrow range terms strategically that up know focus we've center being of to we XXXX. head of addition the and these So vectors his to all will remain in this that like his days, know is on consistent And remotely consistent Because is investment able in been to to front much of in background be to the first set getting can all feature. be stay the investment and in around face most its with financially world. and as do still next platforms Britelings our to and we important the ours where going level.

Heath Terry

Great. so Thank much. you

Operator

there questions time. And you [Operator this for and are Instructions] conference gentlemen, concludes this Ladies at today's further no call. Thank participating.

may You disconnect. now

Eventbrite (EB) 8 Aug 202020 Q2 Earnings call transcript