Earnings call transcript Q3 2022

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Katherine Chen

Good afternoon and welcome to Eventbrite's Third Quarter Fiscal Year 2022 Earnings Call. Prior to this call, we released our Shareholder Letter announcing our financial results, which can be found on our website at investor.eventbrite.com.

Before we get started, I would like to remind you that during today's call, we will be making forward-looking statements regarding future events and financial performance. We caution that such statements reflect our best judgment as of today, November 3, based on factors that are currently known to us and that actual future events or results could differ materially due to several factors many of which are beyond our control.

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

this measures adjusted adjusted analytical are Accepted in with and will not EBITDA financial measures. Accounting present are Generally have an liquidity, prepared tool. which non-GAAP we limitations Principles These call, margin, During EBITDA, available non-GAAP as and financial accordance

should our as or to it and contains analysis GAAP. our You shareholder GAAP them a as about our We non-GAAP information isolation results. important reconciliation in comparable letter. not in read results shareholder consider encourage financial letter substitute for available to GAAP measure the A reported as of most directly operations is of under you

now over Chief with the Executive And Julia and Officer. turn I'll Hartz, Co-Founder that, call to

Julia Hartz

thanks you, everyone, for and on today. us joining Thank Katherine the call

XXXX. strong We hit while And in product Revenue was line delivered mark strategy. versus, year a Our growth XX% new our quarter, and quarterly ago the activity as X% platform made since high margin on produced up team EBITDA top growth. and creator as a for and flows an powers healthy demand we paid through year-over-year. of progress our consumer investments ticket balancing volume adjusted event third

on best-performing, the for history. translated are creators, records for platform early set XXX,XXX our new all-time attract We both QX. Over into a shaping you and a signs the cohort joined headwinds second be front. ago, creators in These that year and creator told creators the That's QX our success. quarter. quarter self-sign-on in revenue which banner QX by up our in consecutive to were new of We saw to taking there responded and creators support actions coming

confidence marketing their With focusing in Looking our to addition support new ahead, increase confidence. actions on publish the specifically, areas. market three probability in messages and strong took market, also on we're sign consumer we success expanding once of around targeted signals around increase creator up creators, seeing we'll to their keep platform to events, action the to through help

to accelerated of most the we critical which we've new demand events the creators tools access checkout sell ticket of Boost-promoted active of adoption, we help highest the spoke, marketplace of the things made in on eventbrite.com. events. Boost a in hands Two, resiliency. Eventbrite most One, launched pace optimism our XX% our puts we by sales we for our way into improvements around marketing putting consumer resulting front for ads, Three, creators to additional the for time value to more faster. Last their create do audiences, expressed our tickets or searching intent also to conversion

off record the In observed XX%, drinks events and growth paid to ticket-buying and events. all-time XX presses up QX, through music Cumulative for were of steady this buyers leading behavior. hot tickets food events popularity searches terms another our we platform in in with year. in purchased and million QX, set consumer sales following year-over-year unique

ability of Our area for focus key and for stronger is platform, the a us. drive events on to the even investment demand

we're is succeed. events that more need average today them more help positioned With one number draw XXXX, to the uniquely creator holding know and in we their to than audiences

infrastructure, premium our laid use frequent improving new for drive a road in consumer in long-term for creators, to launching demand platform to assist Day, improving marketing map, vision which of strategy the discrete events. demand. At and our ways we creating businesses out Investor our growing introducing creator included product and is by investments Our their their tools tailwind technical

generation doubled than the with begins has local seek our more of our unique consumer our tools visitors Boost this the on the are growth we and strengthen here win platform. to ads inflection and are creators, that to leaning event competitor, like point, gatherings right our an out high-intent that currently are Eventbrite as we're ticketing into goers Demand impact engine. reach already Our and for closest fact Eventbrite making

way Our resonating advertising and is ticketing their paid consumer the clearly product data. healthiest efficient active with creators. and social look as marketing, most e-mail with to premium We've and Boost our They most Boost marry and base to in compared effective not many drawing holding adopted creators subscriber average nearly more have these doubled yet ticket X with double Boost. times an events, twice quarter, and creators, event generating the who as the the sales past size to

in these to the monetize of available products time XX% of is to engagement cities know-how once able ticket volume are free demand product them. to product and as creators this been leverages total we quarter, were in where additional our XX% third subscribers, the first of is This Eventbrite-driven XX our our that our look biggest deep in coming for event launch ways, we've roughly drive September. are different again there around the opportunities is and Around value generation as Eventbrite which US now And at ticket, Ads the pricing quarter. platform is quarters.

its spend early creators over We're time. campaign on by users repeat also promising Eventbrite days. many Ads more showing is become XX per average and seeing in being first users creators those and embraced growth

drive advertising much Our mission people bringing tools to in and area, our audience fast-tacking together. expansion. bring already since innovating time every engagement beginning for development, doubled life more We're have creator opportunity of giving day, ahead our base real with the to October and more the by surface global available

matters was it and to truly be purpose. I'm to and included cultural recognized Matter impact be That audiences Company's our It's our Eventbrite honor honored an are relevance and strategy our our their proud to on That Brands recently List. purpose share social and to for companies fact, brand to the among who customers. that In inspires Fast connected vision

expanding their from we're is with to connection, we offerings lives. our scale growth tools Our also economy enabling need we want and with of reach, nimble support vision at all and as creator capture as the simplifying that work stay needs, with core possible creators resonates opportunities have to that platform. people many as marketing power content directly them the reach to to the we our means to as their their which sustainable help and They Their success, our for human ahead. by unique creator success drive them long-term all as

to I'll And call the now pass Lanny. over

Lanny Baker

Thank Julia. you

quarter a with stronger pre-pandemic year-over-year Third on quarter. of the performance platform. within end generally norms ticketing quarter XX% pace of our activity revenue trends were and toward consistent was with revenue slightly grew supported we the quarter-over-quarter steady as up the Month-to-month

helped that marketing creators grew year-over-year to including of ticketing metrics while improved increase creators versus and and few Product ago. paid of also held those prior revenue number frequent infrequent of the consumer the The creators events XX% initiatives mentioned purchase XX% return non-ticketing the XXX,XXX were platform continue steady moments and with conversion year Creators the quarter. to up to year-over-year. strong our larger course ago a quarter. just also over a Most paid Julia of a

two per X.X creator XX tickets XXX,XXX events. averaged events to down its on of platform per transacting QX X.X X% by XXXX. events is of well The quarter, Paid XX grew years. the number per in This within peak. paid number paid pre-pandemic approximately XX of nearly compared from event million tickets in Total ticket were to total XXXX. of event up in highest events The XX% events XXXX volume QX of level to the grew XX% second reached as paid versus in at our and year-over-year

price US in other to quarter overall value pound in in a dollar headwind ticket relative to strengthening to and and for currencies average was particular year-over-year QX X% the the Average $XX XXXX. euro ticket up quarter. of the of The $XX the and revenue third presented was X% compared

XX was understanding that points fit to this rate revenue product a creator reflects our reaching a needs, and of our the ago an versus disciplined capture Finally year for take and record return for market new investments. basis economics strengthen customer This progress up improving quarterly ability our metric. X%,

ticket ads, subscription a contribution ago from the per above levels pre-pandemic in year from growing with a and us but of XX% $X.XX put Revenue XXXX. quarter, was helping QX fees up small

income Turning the statement. to

gross card processing credit quarter down second with and XX.X% international fees even higher the quarter was versus to Third in markets. margin slightly ago some due year a

to that to continue We move range the volumes ticket high XX% expect gross into and margins as increase. will continue revenue

a essentially just million, Total On of priority for the marketing from in for over $X generation second were up QX were engineering and operating the in up of as of support products. long-term demand XX% strategy and quarter-to-quarter talent of QX and over million year-to-year tools expenses hiring quarter our XX% were initiatives engineering such basis product expenses and million growth XXXX. critical increase flat. $XX an Product and expenses $XX sequential

of Sales XX% expenses pre-pandemic than of revenue quarter advertising and we've to and important marketing creator more note XXXX. to more that growing support and over today were around expenses sales were QX XX% campaign. are XX% versus in XXXX and remain they upped third up marketing for lower XX% spend confidence our It's base than customer equal revenue increased than the in our as

and management. were operating up extract expense our leverage and to here year-to-year reflecting determination General XX% automation administrative costs through

it the conditions. Looking heavily be will When tilted than creator headcount ahead, near-term do areas given revenue we facing plan overall to generating we carefully need. corporate hire, manage rather growth macroeconomic to

an of X% quarter. EBITDA million, EBITDA adjusted representing was $X.X margin the Adjusted for

Investor in level our target adjusted we have our we have outlined or XX% As margin achieve EBITDA Day, and ability better long-term confidence of at profitability. to our is that

in our believe drive operating against costs to upside and general we considerable particularly we as can growth. invest administrative and we in deliver margin Specifically, revenue leverage product gross

and to of and business efficiency model. time streams the advances new our can from advertising product subscription also and take Over contribute increase revenue rate

range incremental Although in the did we continue in over adjusted to EBITDA target XX% QX, adjusted XX% margins long-run. EBITDA not to margins the increase

to strategic Before update progress and provide creator for I I to share outlook little fourth on discuss XXXX, the of an want current trends. insight quarter more a business our

which update of an strategy. a is central product self-service, our pillar on First,

Over diligently key the a and the creators tenet X.X self-service to the improve creator is years, of experience delivering in we past worked efficiency that success. of ease to use belief

is it now As from higher QX than begin who creators of in more XX% their and than on own sign XXXX. was selling revenue independently tickets up XXXX,

share they format, category, Second, business ticket creators, and at winning segment volume every to We every creators events for among drive our our of value of an the LTV builds heart exist the every geography, customers. this highest their repeating popular in bedrock market on reasons; and chose and high frequent on three high the customer segment disproportionately revenue, strategy. of frequent focus successful update a

frequent of now QX segments they've needs As the count very and to outperformed close all creator creators, this we other segment. we've in product level are centered our roadmap on on our XXXX

some get this category we often. Third, about data asked as

there's single play business. Given frequent is our our and drives designed or categories. all dominates event breadth, category creator that scale to And strategy no our across

relative two today terms performing music of mid-teens strongest in on are to creator to However, where platform XXXX our we up are categories relative pre-pandemic count, the arts levels. and

a and We QX strength encouraging in professional seasonal seeing XXXX in enrollment. Year's on health to and record Halloween momentum also relative challenged early remain real-time are categories The business two with and New Eve events. most the and events holiday category

reported in our stronger anticipate for to quarter-to-quarter pattern million range revenue of million to is line quarter revenue the to business turning Now within a million. to to outlook currently of range QX in pre-pandemic. $XX.X slightly with the $XX be QX, than $XX fourth We Compared observed outlook.

labor other healthy do currently on to remain our to recognize We platform. near-term. expect demand to factors live factors lead on the may for events gather, nature renewed so based events strong and that affordable as most consumer inflation, around such live inventory to local macroeconomic in ability desire friction safely staging the the of greater and our We shortages

beyond we market. self-service what is the events Looking QX, intend live platform largest in upon to already the build

consumer compelling opportunity continue features and develop for and and leverage value our we creators reach their their add grow to audiences will to see that help traders We functionalities greater businesses. to

turn now I'll to call for of the question-and-answer the the call. portion the back operator

Operator

Thank you.

The We from first Sandler. session. will Matt now comes [Operator Farrell with proceed. Instructions] begin the Please question Piper question-and-answer

Matt Farrell

the ask two congrats results. Hi, allowing and on to me Maybe guys. me. Thanks for for question

The maybe first near-term. more one

sight move of help more guide in just quarter-to-quarter basis maybe giving historical a being stronger You us in the Obviously, bit is the on you maybe we you of all mentioned through understand aware as trends detail than patterns. of line but to those what slightly kind QX? a macro, we're the little could

Charles Baker

[Audio Gap] quarter.

that trends As a sorry, to see – exciting we started the started holiday events shows big Year's fourth fourth particularly volume typically. year we our we came of quarter. came into to the was really around light in some Halloween. are some October, we holiday October, great. see of as this factor into There's percentage These New the There mid-teens and quarter are Eve in a And ticket events. the are Halloween

We That prior was XX% actually our our year-over-year almost record was XX% saw was XX% also about value roughly in Halloween. very volume about record that XX% sales all-time from transacting total ticket strong -- such and and ticket our above There roughly demand prior versus a consumer prior creators. increase on up was up record.

gives the that event interest us consumers looking strong side as there about this to year. into are some on final some the there encouragement but talked we've a So of challenges quarter hosting be from seems very

Matt Farrell

bigger we storm, be than environment. the enter And which in all back then why to environment. step also a Thank you. macroeconomic through not better maybe a excel been have by only as us weather an walk taking uncertain a ever looks relatively Eventbrite Maybe a volatile just picture to position they today is XXXX in accounts but in

Julia Hartz

Yes.

with I I our greater into undergone the -- leverage live development. investment think, our we've only for is shift events but within think, massive in we fact own like that the headed given higher not how areas where, us also business of XXXX product see the more in year a invest a and in we'll been industry, recovery have much business even

effective for value And the them to what means events our on delivering motion customers tools demand also help about accelerating to the that customers' we for our and how of in able that be of businesses primarily those more and think driving that offering can and platform our growth become sales. in also ticket customers participate marketers more

in how where XXXX. our add into again we also and will costs back We And have been continue diligent incredibly that about OpEx.

So we're just fundamentally a stronger business.

our pure of powering that The hosting that and of XX% of unique the at average are think environment tailwind and of events. ticket that and I channel the is really and the that local say self-sign-on that creators we'll about third would any events Eventbrite economic thing our look fact the you consider type price around these feel and you of in just popular when about our come $XX consumer through We that strongly platform. the accessible on strength have resilience inventory are

Matt Farrell

Great. Thank you so much.

Operator

Thank you.

from Our with Morgan Cameron next question Perrone comes Stanley.

You may proceed.

Cameron Perrone

for XX Hi. taking a Hi. that Maybe you the momentum. in launched map Thanks color around timing question. little Eventbrite bit Eventbrite Ads the of the Thanks there the more could here expanding the about for for in beyond the Thanks road around from cities around the we Ads. XQ? terms talk color

what to success on in of terms Can Letter there onboarding changes and starts of creator the product this track new you we Shareholder promotion can in as we then for on the measure creators. And And sit. now? she does we mentioned options then platform maybe the And from from the Thanks. outside elaborate that how see where side? kind just when the using marketing you process

Julia Hartz

Absolutely.

I'll So I'll the Ads, the hand second first, I'll question and the take take third. around then

we've cities three launched online launched So we things to on really started. committed We recently. we -- just events went Eventbrite three to really we're quarter Ads plus cities from well. last -- getting doing XX And

right of audience to so community to great are the offer Eventbrite. their value on at time. right able who for on And are in of of searching our events are Being creators attendee Eventbrite creators to by to high advertise goers choosing this putting event high-intent and this events front is the that exposure the

to The second increase are is surface to those where showing. continue ads the area of

listing to third but but our our in So it's is the search we're only the consumer the back expand right opportunity first-time-ever surface now continue creators And close Eventbrite pages of through the to to really we'll results that that continue mainly messaging be not value to we creator. marketing that will to able the e-mail areas in and other app offering way cetera. use that the that to et loop include, space buy we report to in this also on recommendations, promoted

know this success planning product be on foreseeable that product our other Lanny to about we want at do. or how are we creators They ads? measure their For with the to considering conjunction future,e because will talk that the CPM-based in event considering things want do a and exposure. want you eyeballs looking more that they

Lanny Baker

Sure.

– it start should measure it's advertising internally. that the to very measure we And that lot of the I it will adoption think with that would is customer a you way I program. similar way the

As advertise, we the driving that of optimistic of elevating advertisers We're expand the the success that and our deliver our advertising promote are more tickets. or success advertisers and about product more customer than visibility having, ability we and in more to confident are markets today. really certainly to events base the their we

will The dimension what in we five X.X spend creators' the way with tremendous be as of growth I the of as ticket events rate. on advertising expansion X% of move an to come our events. wallet the you and marketing sales revenue their dollar compare stream improvement creators are you of we that you our much into as able share will revenue direction about share opportunity. of take take think have do in an marketing revenues the to we see should revenue that times take value ticketing as the money in rate Eventbrite know the their revenue will second rate they our events. on have thinking in show Ads. their to And a our Most P&L ticketing on budget be those And capture wallet marketing as And we up

Importantly, appeal Boost events is the amongst both very free have and of strong paid free as well as advertising events. product – of creators creators creators

are on observed pick start revenue as our driver so free business. currently from free And rate that's the up we the events, which for take to service another of

the one efficiency and places of business the thereby our key of model. think take is watch to I the kind really So of rate

ability the per end increasingly flow-through Revenue success day the on observe the and probably is I and and should creators the And growth as presence at think to drive becomes would recognized creator our opportunity advertising also delivering audience another place think growth, Eventbrite and to of drive I subscription known products ticket deliver creator products. that creator retention. quality be and from expanded of most to exciting these the

So it's of the implications development business. up to a and of and our pretty down of strategy important our of kind our P&L part it'll have

Julia Hartz

iterations Matt QX bring and your And constantly are onboarding improvement to on new creators creators creators around our XX% updates process, third continue the making it creators question which platform. to our With XXX,XXX how ways to Eventbrite easier imperative product think of it's in onto and new channel, those we coming we make joining we can that get for alone, our self-sign-on we about in through started.

in and the event importantly where attract go our is to thing share create beginning understand One that those attendees successfully. of to what on of grow so beautiful we're putting the journey very with they the can sell started we areas and faster. to now precisely that event place, creators most need on Ads their listing as personalize to they tickets get value how front process And we're audience second a right a to and focused of only for that Eventbrite Eventbrite to that focused can is Boost the the main do they their they at understand creators, not their audience to so onboarding of

Cameron Perrone

Great. That's both. you really Thank helpful.

Lanny Baker

Thank you.

Operator

Thank you.

final comes Please from Our question proceed. with Lamont Williams Stifel.

Lamont Williams

Thanks afternoon. good Hi, question. my for taking

of that your you're internationally? there little bit you some little seeing growth. a just about markets? the talk a but is Is The you could in timing when to point first macro It is some better one recovery, of are or timing tougher international anything is of you a looks the that what like internationally specific can bit seeing

And question. then bit secondly, just to the up previous kind little on of a follow

the As resources for are development the ad need we out Thank do from kind investment to the term? we there coming you you. products product, into into kind see roll intermediate product or grow – the the to near of the of engineers, more to have

Lanny Baker

Yes.

Let the front. question me first the on international take

business of piece of can domestic a basket the overseas Over or at roughly last than And that in markets company one little and year-to-year two our overall points our grown the the at percentage growth. have couple maybe see has US lower our you of quarters grown bit faster the rate XX-Q.

at year to this the and regional When six lockdown last or on ago the a with time whether really and they're months nine you over not. or the ago more look year – had have it do in country basis, a comparisons now was variations Australia

and huge we're of think things there's of ago. of recovery bit I year-over-year little and less like a a look a those saw in growth sequentially, we year those comparisons. kind steady see more periods sort at as to highly So we Australia starting volatile of But

Julia Hartz

are quarters. different will have product investing development. the coming we materially And Nothing in on front, continue Eventbrite been and the happen Ads to in prepared we as

creators We more on the making strengthen most for demand matter very drive to of promoters their it which and great help things I clear platform our have – become creators and help the be on adoption of think priorities focusing effective all marketers those done the that that what to help more events are job are, events. frequent tools really and to of creators successful the a

Lamont Williams

you. Okay, great. Thank

Operator

year quarter third your Eventbrite participation. call. XXXX conference Thank Thank fiscal for you. This you earnings concludes the

disconnect You may your lines. now

Eventbrite (EB) 3 Nov 222022 Q3 Earnings call transcript