Earnings call transcript Q4 2022

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Operator

Good afternoon. Thank you for attending today's Eventbrite Q4 2022 Earnings Call. My name is Tamia and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for question-and-answer at the end. [Operator Instructions]

pleasure Chin, the Head my your over now Katherine host, of is to conference pass to It Investor Relations.

proceed. may You

Katherine Chen

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

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

of future affecting discussion the the and a shareholder in to you with more results, refer titled and the our forward-looking section statements SEC. letter our detailed uncertainties risks filings we our For

obligation reflect by the during unanticipated any no information or except forward-looking occurrence undertake circumstances update to new made or required as or today events events, statements to reflect We to law. of call the after

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

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

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

Julia Hartz

strategy on billion have sold joining past driving I Thank we for year, the and our XXXX, profitable achieved our share call. in reflect We nearly significant Today, you our $X.X going growth In QX all forward. results, recap to want for milestones.

launched million over we for by our we efforts, generates sales. ticket and through ticket sales; generation revenue our demand $XXX creators; product in first creators gross XX%; grew ad helped we

have recent which we creators, revenue XXXX. results, quarter each year, our EBITDA in quarter, XXX,XXX We and number fourth highest focusing a last near-record recap generated our To supported creators. of since XX% more Importantly, adjusted on $XX the maintained was profitability. of frequent million positive we by than served paid

these to that. very will a of experiences selling events, organized We over creators on worldwide. These tickets and paid for XX valuable wide be role affordable a play accessible continue variety believe our we million strong and demand

sales ticket matching reveals interest ready life company, connection channels XX% by is. return real million pre-pandemic a $X.X rebuild. Eventbrite-driven profitable human more We're XXXX, levels. paid focused, Consumer's events, increased offer and stronger, Paid help audiences through and year-over-year. in how we events creators In creators as in live important

strategy in key long-term to been ways. Our has three designed meet this opportunity

significantly have and by new our This we support upgraded up to our modernizing up future launching First, XX%, by data technology products and load times includes growth. platform XX also page over speeding features. to

over our and the be to expect operating performance mode, continue improvements standard these we time achieve As efficiency greater ticketing product. to core from

Products creators product up nearly creators for of the year frequency this from improved event is we all events frequent event XX% our our with this especially offer helping off ticket Helping drove succeed, lifecycle launched paying Second, who year. roadmap sales is creators. these XX% creators XXXX. recurring

users industry helping better now onboarding and onboarding For simpler, understand of our twice Nearly them tour, new our new complete value. average creators, personalized. more engaging, is the

For visited active creators, the dashboard, we've event most our page. rebuilt creator

success, and satisfaction, creator increase will this expect We retention.

flashing experimenting consumers. and in We're ticket GPTX support. the One we urgency made lifting. more also growth, access that on reporting, pages events gross improved we And for creators, payout to listings, million busy is sales. $XX and which listing seeking over led with attendee to creation scheduling, signal to creators extra event enablement attractive chat to example event For of improve

is generation which increasingly automates creators products accounting using marketing our The audiences. third successful marketing, Boost, demand for XX% grow and of our to part social supports now over paid of tickets. plan creators media

space promoting homepage, our more We're strong excited XXX% cities. and creators, For events to app related we search, supported QX more fulfillment to events site Eventbrite has creators our visitors. and in users. was connect Eventbrite with also app, now opened Interest help in been ad as on XX on ad our is expand Ads pages. We've and

generation creator which XXXX, sales marketplace. Of XX% of ticket we note, holiday XX% grew from and key paid Demand consumer to QX, is a record. in influenced Eventbrite is our tickets in XX the generation. extra XX, events sales. with encouraged directed demand event listings to and targeted campaigns in future. inventory consumers ticket We new on and build which more We'll driving this

added To generation, in nearly $XX XXXX. creators boost million and Checkout improving for adding sales ticket extra consumer demand Pay we're gross Express in Apple the experience,

a growth. have Our recommendations levels ticketing, ticket offers outgrown our significantly purchases. also demand, mobile apps marketplace strategy, a improving consumer and believe path clear with We XXXX personalized to sustainable

focus sales two-sided said quarter, a to the listed accelerate for future from and demand us. events marketplace. we are asked engine events most ticket our from XX% of over benefiting with as on restructuring receiving Last half this We and Eventbrite-driven to XX% we their aim

will we've ticketing, and easy creators search, find, means costs events. an live major to more marketplace is teams, This innovation. what keeping prioritize scale and achieved want, checkout unique and attend consumers host, streamline personalization, ads, Within which and and We features.

and for long-term consumers Accelerating marketplace margin revenue us boosting events. pre-event. high means with creators value model Our our our from monetizing because goal and ads drive will This unique build know for Eventbrite to most they growth toward the best to profitable list targets.

the in trust from time in by now raised We and and years two. also Our five their to for We'll the needs earning our creators keep these three expanding pricing January first and investing simplified marketplace. provide. reflects we in investments December value pricing tiers and

to about plan. context front, company restructuring our more the share I On wanted

ongoing immediately of eliminate roles next and part and core hubs, efficiency over efforts XX% the drive As of in of development we operations XX X% relocate our business to our consolidate months. will roles

these we this to decisions and are difficult, approaching our with values are those committed supporting are in While line affected.

streamline service. that our enable actions for to changes and success, These our while with us better we and operations the position help achieve us will will also ourselves our to goals. delivering provide are of that on long-term customers our to focused highest confident continue these level value We investors remain ensuring

and we've I strategy for Bright summary, achieved our our team QX leadership to In our results significant have over for community want one of for [ph] clear strong up the for thank last transformation. profitable year, growth. showing Link a generating driving really milestones another proactively driving

to work the team trenches awe their marketplace. transforming the I'm compassion There into be in and of is appreciate with grace. Eventbrite I'm and the ahead in opportunity no and top the team's excited better about events

Lanny our XXXX Now, outlook. and discuss QX will results

Lanny Baker

Thank for you, Julia. full Starting year-over-year revenue the year with XX% QX the by grew headlines, XX% by XXXX. in and we

take ticket, rate, highs per gross full for revenue the Our and QX year. margins new and hit

in quarter ended profitability million delivered available of and as $XXX our straight defined Shareholder year we the sixth year second We in Letter. with adjusted and liquidity EBITDA our consecutive

to we they place ago and results years evolve on company put strategy the three reflect beyond. strong XXXX and a These the execution provide we foundation in consistent in continue as

XXX,XXX, highest trends, the the of quarter year-over-year fourth into paid creators grew XX% the since start to Diving pandemic.

year, year. full X.X XX% over QX events Paid last nearly creator in of events, XXX,XXX we down increase paid from the averaged a served For events XXXX. creators, three per slightly

the volumes, second creator the in in growth healthy increased year-over-year total on history. number based highest XX% in XXX,XXX to However, quarter. paid fourth company's That's events the

Growing events year of XX year, of from up XX, we for the paid increase. down hosted Paid slightly from year. our XX% a Eventbrite XX% And ago. million issued in million Paid the last volume same on the tickets, per ticket strategy. for XX.X event was XX tickets driver inventory the is quarter important a of full an averaged marketplace

in ticket refund declined a remain as Average same activity and to from the year $XX At about modestly the time, is up fourth ticket quarter, in quarter. the cancellation prices. raising ago, price fourth creators cautious close

And and X.XX revenue by advertising, last contribution a rose versus X% growing and from increased our subscriptions year-to-year ticket rate quarter. another revenue but per with fourth of small, revenue year's point incremental take

and growing of and which numbers attract and Boost still of components our about Ads who audiences. of marketing to paid equates ticket. in to fourth Eventbrite Eventbrite are revenue quarter, new our the Boost help relatively emerging Eventbrite seek $X.XX generated their business, Although combined million $X.X continue creators these products per event expanding Ads

been without as Ads high-margin from greater the availability Eventbrite expanded availability QX And service. this creators hosts XX% of of from season. we in Eventbrite were Ads would XX% particular holiday it than have Revenue was of free events. Revenue surged advertisers using new the in

and Boost and that forward we grow, amplify like model demand Eventbrite. our Eventbrite will for continue and the toward As to for we creators Ads move a generation, products importance both marketplace of believe

ticket highlight Gross have gross margin we revenue and the was high can as more XXXX. confidence and volumes XX% margins exceeded QX time. ramp. seven percentage quarter than range the points fourth higher the move than first for for That's And a XX% in into that

the year. growth of of nine of the increase in items, in million XX% year-to-year first impact quarter, totaled compared the the $XX Excluding fourth expense to non-routine an expenses XX% operating months

ago. of XX% conversion, Product into leaned We compared are marketplace consumer such fastest and checkout investment, a incremental revenue. ads, area marketing all which engineering as expenses and were of tools, to our and experience, year largest delivering the growing up capabilities

expenses drive in XXXX and primarily help Sales were spending revenue. marketing QX and up increases reflecting year-over-year, content and to XX% advertising

tied expenditures up a on by percentage Finally, gained and revenue operating points to year general directly to the were growth. leverage we and discipline of not maintaining administrative ago expenses year-to-year three X% compared

Fourth quarter benefit the non-routine adjusted removing $X.X million of items. after EBITDA was

margin expect anticipated investment step was year temporary quarter, than the be prior X% as reflects and the it percentage product lower development revenue we of to adjusted impact. ahead Our back in in EBITDA points two for this

We our XX% continue marketplace strategy and especially to have long-term the monetization. confidence pursue greater, EBITDA we adjusted targets, up margin as increased or in

This first product features this the updated initiated As you past are XXXX, we we've as even in is we've increase and our new invested aware, since pricing considerably January. performance.

improvement would or to monetization. applicable and XX% events once It of all And effect in to we flow tickets. place, see in change will take this for across fully it's one approximately more months the expect two

significant announced Another and implications with we revenue for publicly profitability the restructuring is today. also development that

in opportunity we As increase faster our profitability our and taking gen we're long-term transition, the progress Julia the targets. efficiency, with and demand in drive to marketplace, decisive actions we've toward said earlier, and achieved see ticketing accelerate

we're roles. the In of existing X% eliminating intermediate term, roughly

agreements space We longer that leased headed. no also we're office will and where exit vendor support

cost and to dynamics are timeframe roles relocating where XX% end, year slightly believe extending is longer locations we're approximately remaining to a strongest attractive. we most Over talent of

Spain in presence as development will Our grow service, and from move operations, US. customer certain the and roles we and India Argentina

will We greater marketplace. that and the leases consumer efficiencies vendors to annualized near-term in expect to of million force reduction displace $XX million $XX operating exit enable expenses, in our delivering immediate to investment and and

The compound yield benefits productivity, to geographies new structurally operating to efficiency to planned expenses cost points as revenue expected and four percent are long-term by lowering complete. relocations of new five to once a

the of end in our margin before transition XX% adjusted anticipate effects to an the target reach accelerating allow the that and we Combined, will next efficiency, marketplace better our increasing both restructuring, long-term year. us or operating of of EBITDA

and approximately of the employee timing and costs. these of lease million transition we million and charges charges costs to we execute finalizing restructuring, expect $XX charges restructuring approximately We're severance still the of $X $XX million As

into patterns more our million. Now, creator $XX to revenue the positive side, quarter first outlook, and to as continued revenue on This consumer range outlook within to price turning anticipate across $XX of effect increase sales. business the demand, events ticket goes price assumes currently our the seasonal and January we normal million -- a contribution to healthy be effect

to With and era receding, of pandemic an year outlook the revenue provide in for improved variability believe the are profitability. for we also we position a full

XXXX impact tried that we've macroeconomic to course, still results our capture within views. factors exposure could Of and

anticipates changes contributions outlook stronger the of consumer with XX% of XX% benefit growth $XXX revenue, strong $XXX ticket initiatives revenue for product XXXX fee Based fuller along XXXX. a and and million a range higher of on marketing with of million in in The Ads. Eventbrite end for current $XXX million in that business growth our information, likely and range would correspond year, from to in versus to

the transition weaker could marketplace restructuring. levels lower of that challenges Factors conditions end include and or trend toward to or the related product to and demand, macroeconomic impacting of range churn result event changes, and supply customer reaction pricing higher the

expect of our year outlook margin range. XX% we midpoint Finally, with full at our XXXX be to approximately revenue EBITDA adjusted the

with housekeeping present Today, quarter second want I These we restated of the detail on and accounts Before the greater payable. quarter touch I effect of within of XXXX. currency wrap-up, flows on translations, These item. and and XX-Qs third filed the SEC cash one for to cash the on foreign other and balances foreign holdings, impacts other. match particularly offset statement each cash the currency creator balances documents

financial want flow change statements on to that compensation revenue, adjusted the ending changes cash made We with be clear I impact net these accordance covenants. programs, And has presentation no cash income, our or any on EBITDA, in balances, GAAP.

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

Operator

you. Thank

session. question-and-answer first Instructions] Our from [Operator the begin Squali one comes now will Youssef Truist. with We

proceed. You may

Youssef Squali

guys. Hi, much. very you Thank Great.

destination? to me. more you maybe the through your on it that terms platform particularly increasing Maybe us that ultimately, of just your think reliance just just of of in SCM making expand what questions exactly marketplace transform and that. efforts help traffic, increasing marketplace mean terms a So, what of can couple would help of and and the on as marketing? consumer SCO your in One, And per Julia. maybe a In into Letter, a sales means, kind increasing from you

skews And to you can simplified think guys really where terms increase price is? your done that articulated just far the and first. you you the seen back haven't recently, maybe raise speak as This increases. and said, and push do just is But any churn> then so maybe of what on you you broadly in you've in power And pricing you speaking, pricing

as elaborate and sense the continue trying many is to you just So, get of a you. the this improve et to cetera? of product, first Thank

Julia Hartz

Youssef. for Thanks questions, the

out to about first So, really events marketplace also third can on laid Investor and three-year on one, creators how Day, as our in greater the we gain our greater year scale in start we help their the the our strategy for is exposure dynamics. reinforce

network And we the to need marketplace long-term in order effects do value to underpin our for in scale creation really creators. also the that, to the continue and

indisputably with. that transparency, that are the does need build creators well-lit that marketplace, also the tickets more mean? most to promise what we It events the truly what with gain reinforcing audience place because sell really to amount help brand them So, of reinforcing a exposure best and means bigger to help continue that liquidity. is a they means trust, It's to which

-- thing third to to needs, trusted the experience continue events user their match high find point. that that really are we their who their that price want things to people And so schedules, is we need to developing relevant discover for a place wants, that and develop quality their a do,

that new is starting The net exciting isn't this a not part about zero. effort. from this We're

nearly the and really QX third source a sales So, $X was creators help year Eventbrite-driven is on paid and ticket in for closing already. the billion ticket million gross run nearly we $XXX in rate of

So, huge that's economic impact. a

by was our that budget. of their five budget to the Eventbrite ticketing marketing are than The fact times Ads creators up greater informed introduction

that And our so, chain a going we're greater tickets. sell help really whole value unlocking and with is them economic new gain more to following customers

that And Ads per revenue And what already excited in this who in average revenue was about are marketplace is million. is good-to-NAV of an the I'm lifting early $X.X XX% of involved nearly dynamic. users by creator QX,

in pointing right investment right again, the right and front destination the back consumer of focusing we really at I'm are that So the match because and time. funding on of consumer things building strengthening in to these events

three through other services our marketplace our future. Eventbrite. think coming brand the you from I gross funding Boost, and the I revenue win own question. of And down and expanded margin which we're in the right are go I'll let Lanny, comes trust, for And Ads, really that's And here to efforts that scale to second on virtues think

Lanny Baker

Yes.

of seen prices out more it in We marketplace. we've And tested Youssef, the it in reaction markets a relatively January. couple in little to very rolled early the increase we rolled before broadly we up date,

with far. competitive over we've years, two the looked the we in other said We platforms, to And a commerce half seen at digital and years. and market pushback we the felt place just Joe the ways, gains steadily what as not we were in I prices. many last and various had three last the little think, to performance over room loaded as rates five -- really particularly product our and improvements like so so did relatively adjust we've but

the pricing before events still and the longer full operating listed prices a takes are were effect pricing we change It apply oil our as to some change announced of for events of dated. of the are under that the while sort

not tell place So, impact, seen thus we've yet we but full encouraging that the you for can it's we're at sure a where far.

power, to be we this, On and invite value the considered your core question pricing provide amongst I great functionality, our our creators we trustworthiness, sort our reliability, preferential of cost about of the on choice think side want as to marketplace. ticketing to

go generation the and we direction promotion in and demand of audience events. further As

much. are one Their selling tickets ticket I the for think that. it's prices. And that's where determine very pay an price economics to to move unit great customary a $XX, average economics that more at ability for crater and the marginal let the the where or a a a of We there's very, that great market part attractive. of XX pretty think don't market willingness of

see opportunity we use long-term. we the in can at scale audience pricing participate we the a generation big our reach on to So, to I in as you core think in compete use and there's look really what our demand long-term, the can

Youssef Squali

helpful. Thank very both. That's great. That's you,

Lanny Baker

you. Thank

Operator

Thank you.

Farrell Matt from Sandler. comes with Piper question next Our

You may proceed.

Matt Farrell

I are Where on current and confidence. to the of touch the around shape Thanks. start the perspective touch having just the and in the this still base to creator creator on that really how on just we Are state lean outlook And to maybe year? Congrats the on helping full guys. to strong for wanted Hey, at from guidance. you marketing year? topic? that's results

Julia Hartz

right. All

So, we're back seeing roared confidence to that the strengthening life. are that in categories from creators really

people on confidence and XXXXXX see to consumer now. their that live the us events are So, XX% over and drink, music, expand right food with really Creator reach. tear more to to of back continuing able new gives creators we're popular be and events growth that come a more

I in what creator had with drives properties billion consumer consumer we say XX like Eventbrite XXX -- website the is would and X million confidence On on the over engagement. to million buyers. And XXXX, visit the unique searches

reinforce really turning scale and can the our promise we're our market. to the towards going that so, in fulfill confidence in And and And I that's messaging that brand hosting the continue XXXX That's creators to beyond. our events in can consumers. we really exposure we live and to make offer think

Matt Farrell

to you about million we roll Thanks. run new how to maybe the very tools, rate out that follow-up $X the you guess mentioned as generation this should well both resonating on demand innovations be with And Boost run I thinking year. Ads? and exiting just they creators exiting to be for XXXX appear continue rate

Lanny Baker

million forward, a billion at revenue we're Matt, think, of looking you you if ticket $X as said, $X.X sales. I gross look at

of percentage about revenue, So, the from is advertisers, as just the we beginning to lower surface. about events. free bit of of scratch said, little XX% we're a the XX% craters the And coming

not the in $X.X So our even included billion total transaction that's in value marketplace.

to going are expand Eventbrite of availability continue to that cities have Ads. we So,

surfaces, ahead we're buy of And but think creators that upside what be to that It to the seems adding can things a very really on marketplace. there's to full call, within locations stay we expanding steam And going really have area. high that We average exposure in opportunity. new, appeal, we which creators. engaging for we're Eventbrite lot

or We'll as an area that XXXX make revenue In this in and clearly year's for and on beyond. terms focus you year's this progress of back it's advertising, we the of and revenue year, but update end of for come next excitement end us of

Operator

comes question Blair. next Sundby Ryan The from with William you. Thank

may You proceed.

Ryan Sundby

It questions. months. to looks you XX for cities Hey, like this guys. Thanks for get added ads quarter XX to within six another the the

kind that's expect less So a pay of sitting quarter Is Or you should as of start faster forward? you kind going launch. that do we rollout a to the from see maybe move team to like here?

Julia Hartz

let Lanny and if start I'll follow-up miss Ryan. Thanks, I anything. Yes.

pace expect win able QX. figuring really being our cities, works the this out to accelerate we're in great access team to only what rate city and get expanded a We XXX% was for

put buyers. to of in want eager events customers Our their front

We're event looking for to rates. on do things

So, the the able we're it's proposition better needs out And right value how on getting right to them for and be consumer obvious their at and at better figuring pretty to events put a them. and serve the time. right

and that I expect will we'll So, XXXX. continue expand rate accelerate to throughout

Lanny Baker

I'd there most we're vectors ones for really have great and Year's are of know what we'll around creators holiday I for and mean, that events consumers on us. had here that and get Yes, looking use of to creators that with the enabled the push advertising say, on could I does opportunity those Eve kind pushing multiple in But we meet success greatest kind and events the events. holidays experiences the tailoring New the

also format having the next ago, like XX dynamic. looking cities. that at a looking felt the the opportunity we're ad We're I like season in Not pricing a moment things bigger than at mentioned

can a there's efforts and There across based we CPM you can the our our product can things that working exposure that model are other push for Today, drive. imagine and that to to notifications. ways that email it's increase we're like the and on evolve and charge price reach

according multi a all in them for to for us are these lots working what's push sequence growth. it's cities, creators will for what looking So, about them. asking of really not just not avenues kind pursue. and to And things, for it's what single are factor we There -- a and of it's take

Ryan Sundby

Got it. That sense. makes

were ads for free said I of think you events. XX%

that. I if but Sorry, around question wrong, that bigger got

like boost starting into you and free over well? adapt traders paid see things see them you to ads, start to event being as As transition are creators

Lanny Baker

I think might much not No, as you guess from the distance. as

We you baseline In paid of think we me are tickets. XX -- and had numbers. I had million we tickets total XX give a million quarter, couple let the

So, I What of that in advertisers moment XX three million tickets the there of events. ago advertisers, fourth the said the advertisers delta events. XX% is were the creators to of quarter, was of a the the free counts those

behind ticket all And it's resource membership maybe really economics as clear dollars the behind or and those the organizers things and are the events. that both those are to the really has awareness are for event one food putting whether in three its a there dedicating be it's that free together ticketing for material to them that's a those attracting event. gate. or of That And and supplies then incentives their sells events reason, driving drink sales but a for advertising

So, this paid on true. event true is well the It's as side.

along paid I with the carriers, other business the the and of in think billion the of again, $X.X our kinds those sometimes that people mistake there's things some going ticket merchandise total is there's and economics on sales. of event. for food beverage there's make that all -- thinking of But and

And the ticket. face ultimately, not value events advertising dollars from just marketing those of drawn the is and behind

of do events five the these promoting bugs. starting long-term, said, as in that on the between their ticketing we're as sense on service. and greater And and capture and see to with times so, marketing, more And as they more much two spend advertising, Jay

Ryan Sundby

open Last get they to just for to wallet, Yes, -- have you if question would need ahead. taking me. Go it's them making if it. Got the sure saw. so to

Lanny Baker

events say, been big free events. also just are about, people plenty another that well. for advertisers don't do is which paid we who And talk events there of would I kinds creators who there's they've of do as category and and us both

Ryan Sundby

Okay.

Pay like Okay. by been really question me. two it's quarters last for driven Last ticket the strongly growth international. looks

between you of as think international mix we and at next year? wondering how do guide, the domestic XXXX look Just about kind

Lanny Baker

categories. is or those domestic in as the said not categories we creators also what categories as think there delivering those in creators. as are us those provide growth that kind the looking It's into that other that are XXXX, exactly those categories those And generation as which elevate we categories optimistic quickly perform And overseas have and in the we will look that of been demand recovered we're events, as as products Well, capabilities and better Julia we improve are confidence particular events for part, post for can which the gives that stimulate really to visibility think of them we stronger for. we

knocking ticket in like you So, looking we're seen, strong of craters think markets -- I But the coming domestically days, for bench of growth particular, bit for out last sales. consumers XX the in a coming we've really a rebound six five in we've the even top growth our world, the or said, on in overseas door, rest beyond are to a

Ryan Sundby

all for Thanks the color today. you. Thank

Operator

Thank you.

Justin Patterson with from question next comes KeyBanc. Our

is open. line Your

Justin Patterson

afternoon. you Julia, to ad to good go the business. just back and Thank I wanted Great.

progress model the consumer So just helping not reach the such balance past toward is you nice really lot also creators got optimizing marketable You've think to with and engagement about conversion? way overburdening many made loads? you've counterproductive a a of as of marketplace you this too How move ad do year. as page while the ads that

for that happens And is Lanny, in more Is of or prepared a something then bit Could year? think you more color just of XXXX. line I I that the earlier wanted remarks. exit XX% us comments in give rate back go said you little an Thank to a little believe that timing? just sight you of on your to margin one you.

Julia Hartz

our to net be So, for goals That's relevant really and when experience, discovery consumer long-term the we goal as about the specific think at our developing experience. possible.

continue first what wondering that think improve and they a on someone's And generally recommendations doing, browse things Because so, should become I multiyear destination to thought to journey when personalized really we to speaking you'll improved November. see be have the us experience do. search

work. that going. really our so We do put front And ambition the And of I where bunch really piece. for want the content future important to personal us think is part, the don't make and search consumers in is of of that's don't a a relevant them

load So, on that it's not really we're ad with ads consumer piece the sponsored and important listings. the overbearing

on I a lot learn of think that marketplaces. we optimize how lessons from to established great can and experience scaled

important are as for consumer being that the considering we very most us. And much experience experience

balancing move the creation we the That's promotion we creator really years have on here. management forward that spent experience. As

very we're our behind a So, our this leaving because the into chapter is creators, doing side for we while of really us this right, as exciting delve marketplace other them. next for not

loads for you'll back how to engaging and experience most see growth really consumers. as user balanced I unfolds, relevant it ad that long-term the and experience comes So, it with think

Lanny Baker

Justin the next XX% the the year better target, year before at be expect be profitability to that And make factors in on and would it or would of be we that earlier end subscription good advertising more and stronger, no that margin of pricing conditions. to more strong successful on resistance economic faster, the the actions we've continued marketplace, transition had high and revenue, and uptake

kind side, or flip the or macroeconomic might challenges it relocation any the in of the growth associated the On disruptions the year either slower our later push teams. and transition way things of in in toward the be with marketplace to

consolidating pools of well. lot and be available the excitement helping cost the those be that places margins a the in the efficiencies of and depth and we'll as talent are We operating that confidence have about toward will the

as year commitment this you of factors we'll our timing. specific there next on there and be apprised we'll are end So, keep before is the

Justin Patterson

Very Thank helpful. both. you

Operator

with The Stanley. Cameron comes following Perrone you. Morgan question Thank from

proceed. may You

Cameron Perrone

guidance? think terms year? Investor Lanny, question. Are laid growth Thank to we context taking provide is it about are helpful. I Thanks this you've that of more revenue be color If your for that those I revenue that Day. at you outsized XXXX of think factors the the In of evenly among Any you there out how the driving some should for the would them? if color factor in emphasized Two for model Can the factors there across drivers kind multi back you. distributed or the can.

Thanks. planning? the and base for then OpEx the that color relocations changes provide on the restructuring headcount reductions focused within some And on you're you the those can where both are plans,

Lanny Baker

Sure.

recap on thought number with take our each have they targets on they Just frequency one attendees a our laid growth. real craters, the events, those which of rate. And as quickly, that business the and modest out for of events relatively ticket of to platform the put attract we've average of function being the we price model

not targeted like We XX% across each rate a on those long-term argue we to have of revenue compound would model. over as long-term that our that but every growth period of quarter, They time. longer

there are things important. are look we I think XXXX, As couple a that at of

the in as Number and acquisition with Julia one, be to greater said, the consistent. confidence strong marketplace continues

in that expect the we've the We be ranges that out long-term. in to laid

obviously other the On made growth spectrum, well in dollars move the take -- is advertising hand rate January. the the of side the pricing by of is that we the influenced take revenue rate as as

in the up audience events. show events two those growth are increased those where big, of will to per of attendance think frequency into over the get it which typically I So, first event. in going, is drive as middle generation biggest And probably audience drivers. spill then is that, ultimately an demand and the two But the and tends to growth, the Kim, we're

how we that's it for the So coming year. have shaped

where and are In the of restructuring reductions the of located. kind terms

First that of in $X not annualized work multi-year utilized savings, a are couple have leases that million say leases annual range. in in the And all, those locations that $X million are we being to we let's have the way today.

people P&L, throughout kind of those everywhere. that's So across -- we a that kind are will bit be costs the so little of of allocate where

changes lot support a the ticketing on winding platform and from then been infrastructure we're where that A And said, Julia with are associated the of side. making, down as reduction we've perspective.

in go the direction. can marketing place faster we So

teams, reductions So product be are will teams, side. that teams, in some support of development the that on

from in And are we're sales continuing States moving Spain. our India our to our as a to marketing and the the relocation portion and teams, which line outside customers and United perspective, well support a hubs operations as of teams development in in move

the G&A the the first heavily reductions, across and in I’d it's product to bit drive G&A marketplace, making a of marketing because line on sales in true that's where to the say we're terms development little and side. two, greater also then detail the we're comparable be while in that's lines. not investing whereas reductions the reduction and So going

Cameron Perrone

Great. Super Thanks. helpful.

Operator

following you. Williams question Thank Stifel. The comes with from Lamont

proceed. You may

Lamont Williams

number flow expect that just percent buckets. through that give of the pricing pricing in through a XX% creators when do or you you little and ever the P&L? of Have the Could you And how bit to kind improvement disclosed you of around Lanny, more do flow of the creators to previously have monetization. piece Hi. detail you kind said believe you expect the prior I that, in

Lanny Baker

Sure.

on as keep of of is we all the detail be through the we light we to in base pricing disclosed of. than pricing ran down monetization, fully kind be We effective When that three that light from of it I what XX% a pricing determine know two, the that's various different to would benefit bucket super probably go to ticket about track informative want the and said more going haven't to that's the don't improvement change buckets. kind a portion we And applied.

Customers under not that. some we've immediately, longer-term been pricing have with our of who larger customers associated contracts, because got are commitments affected

are are on customers lot a customers more Newer and customers who our self-sign customers, of immediately long-term affected. to into be therefore going not

that is event on the And days event think goes and to typically, event I time the the occurrence the in XX between and average. XX an live, somewhere

cycle current through to the amount the that run are events event under the of takes for time pricing. it so all of before And

the expect maybe that think XXs affected impacted to by by change moving the through we of today week-over-week. inventory, XX% in of we're pricing, I be the the in events --

get be time of the coverage. out by complete it first we So, quarter, the pretty should

margins. contribution would on associated that be processing the But be pricing benefit contribution high pretty perspective, perspective, margin P&L expect to a from should a help we basis. From margin margin from some gross the a with. There'll costs that change contribution

Lamont Williams

Okay. Thank you.

Lanny Baker

you. Thank

Operator

Thank you.

Dae final JPMorgan. Lee Our comes from question with

proceed. may You

Dae Lee

for Thanks ask taking Great. I'll question. two. the

one for Julia. first the So,

marketplace. Another consumer the one on

marketplaces there, I guess they capabilities. look out if their going And they're use typically take to common at you So, P&L rate, to drive NAV.

think longer as move to you that the become important had hear about to curious market the that be NAV place becomes you're thinking what and get [Indiscernible] more would more to if how make you I continue So, the and as expand? price term generation? when hedged, not, you'll

-- I XXXX bit of revenue an And second sloping the revenue year the when full upward is guide, Lanny, feels guide it to grow XQ check for anything for and like should year there through is shape out consumer a the we or when is primarily to that about change thinking that of marketing? terms pricing else in moving the and due just comes year revenue there

Julia Hartz

Yes. Sure.

So, I'll on take consumer the is Dae, which first marketplace, the question, really bad.

which here, our embedded path is advantage advantage we that forward have have. We some least of of FEO advantages not top funnel the in

marketing that our consume I We is also that conservative, actually event creators And say. would consumer themselves the advantage pretty drive flywheel. our or have to marketing event own

did demand not We help we that while some the marketing can investment the about revenue, growth related some having really when think in $XX,XXX and generation, during XX% on we drove tests induce ways of holidays there. to I testament hike a spent the holiday in we consumer to which which is

is attuned a own. to more And in that platform, more their of various this the And trying where and it the can that creators they're be fact them. can not demand is they they in on boost to us machine in really generation, for these the really for take we adopt places demand about it's only Eventbrite a exposure able They rate to do of order if social marketing talked participate generation getting to all ticketing Boost event part than that effective that more paid about. for that adopt can their ads is far

for lines margin to ticketing. Another XX% gross XX% margin revenue gross as compared

that have in that we incremental getting products demand efforts So generation about our Eventbrite, to the these in thinking we're all plus the signals doing. we're as using those we're funnel of things consumer on marketing further as way adoption smaller combined, margin of the top I well which would already some the say like the help and gross of tests tailwind in

be sets those good think year. a place up I in this to

And a again, this journey. is multiyear

investments step, really helping that is transaction to keeping continue that return. an first creators very point sequence around find So our we're thoughtfully hitting long-term the which shareholder eye demand and and profitability on will of

Lanny Baker

seeing. marketing we first the growth of at the pricing quarter first does that on, are of curve it you’re across As that bigger increase have progress growth the the the we look to working contribute that and in the Dae, beyond seasonality, this impact implementation that year. than experience, quarter on year of to those course will a the right of tools of consumer The improvements conversion ads, all and you're checkout the year made we've things

Dae Lee

Got it. Thank you.

Operator

This Thank so much. participation. your you you conference call. today's Thank concludes for

You disconnect may your now lines.

Eventbrite (EB) 28 Feb 232022 Q4 Earnings call transcript