Earnings call transcript Q2 2023

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Operator

Good afternoon and thank you for standing by, welcome to Eventbrite Second Quarter Fiscal Year 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Katherine Chen, Head of Investor Relations. ahead. go Please

Katherine Chen

our welcome Prior and Letter Second XXXX found Quarter our Good this to call, call. on be can to results, Shareholder at we earnings investor.eventbrite.com. financial afternoon which Eventbrite website released announcing our

would get forward-looking you making that to we future regarding events call, Before performance. like will today's we remind I started, be statements during and financial

and Xrd, currently reflect factors, We best beyond judgment due us August such known today, are that statements materially our control. actual our or based that many events factors caution of on differ are future results that to as of could which several to

our the results, with filings Letter SEC. For a to and titled you the of uncertainties in affecting section risks we discussion Shareholder refer our future more our the detailed Statements and Forward-Looking

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

this During are present measures. EBITDA adjusted financial non-GAAP liquidity, EBITDA, and adjusted available margin which we call, will

are prepared financial measures analytical Accepted limitations as not and non-GAAP in an tool. Generally accordance Accounting These Principles with have

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

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

Julia Hartz

proud another year quarter, sales Eventbrite. transacted capacity drive to I'm for while all then grow In the $XXX ticketing towards million, more in $XX an Thank ticket our share event important in thank grown how joining for currency a you, on constant you and and the revenue XX% gross nearly to basis. Record of details quarter today. million. excited investing strong help core of business rate we up efficiently, year-over-year our of marketplace. net second us Katherine I'm we've take to our demand

This in which was the have three top bottom year line, discipline for a ago. profitability produced the to mid-teens line XXXX. priority times the substantially From half uniquely EBITDA we in business first adjusted our QX, our Eventbrite's products more succeed the most margin nearly grown of and is of consumer urgent tickets the selling positioned of them The to scale, are faster. brand help creators and

improving and and experience strong marketplace. we into focus we momentum on the results as of Our as both ticket head creator XXXX provide second buyer the half our in

We great know seeking food Nearly a Eventbrite new million all-time categories air levels. vast shows from and the festivals, live on tickets registered bought second or surpassing which Eventbrite on music users record, reptile for the audiences found the during drink XX to diverse and and pre-COVID even to summertime quarter, expose. are is

continued record to monthly app The grew demand three XX% focused the in boost in in with marketplace. And on volume geographies, QX. accelerate US of five in areas top growing tickets to setting our the ticket Total team transacted. Eventbrite the users a QX new average each year-over-year core quarter per the year-over-year mobile on

awareness and traffic discovery third, partnerships for listings, First, broader increasing boosting second to consumer content events. to seasonal SCO event gain launching relevance and

and our traffic event by in the pages Creators to XX%. to recently increase better a things those launched and views consumers. to relevance showcase a SCO in To do for deliver event To and recommendations learning pages, event XX% give more drive on feature to more use this Discovery traffic we're machine to consumer improving ability to listings. you using to listings personalization creators video their event increase to feature listings, we who saw dynamically

joint audience, new discovery wider people media collection which partnership month. in a reaches XX highly spring brand city and brand A plan the time a dining million curated we've boost many reach others We each restaurant the partnerships with ever. York focused audiences To link bring most of Eater, on digital of launched Eater new Eventbrite to with events. viewed events became to traffic do to our one collections New food and more City and consumer best

$XXX million our over notification, through increased ticket tickets channels. X in more which drove million tickets equates and sales gross initiatives category drive sales paid music the million free ticket and in Eventbrite the and alone. We drove another discovery to These X ability million browse in tickets, XX to quarter.

a even for build is beverage, unlock event and Listing incremental each for opportunity powerful sparks on represents merchandise through because flywheel and creators more event demand value generation into a key sale success to growth food Eventbrite This ticket other we're revenue related transactions. investing and features.

in were targeted drive Some investments product focused on demand. QX of our the Ads to

our First, and Canada fourth markets third Eventbrite and Ads largest internationally to launched Australia, expanding in

events, for promoted single Ads manage creators recurring can the meaning available multiple Second, with now easily listings campaign. are

click expand quickly the creators return generative make publishing the them may Third, AI quarter, now minute. to continue cost will to focus time And more it's past, to and better for expect motions end-to-end on creating takes reducing And spending. to to less marketing giving dynamic we're Ads deploying our for coming the one time have on transparency them listings content. for pricing than to taken which on that progress us, excel model something aim per drive and AI in creation, ad we support we more event we helps hours event to it in

Boost Eventbrite creators demand on quarter-over-quarter of launch. value the appeal time anniversary strong one-year Non-ticketing We and believe that exceeding and first marketing signal a capabilities Ads a growing the the revenue advertising for of Eventbrite that revenue $X Ads million engine. its with marketplace our is grew XX% as from and

of to entrepreneurial more spend side of on independent success and fully creators. we our the we time remain As effort demand the marketplace, committed

of the second has in straight for base creator quarter, includes record nine number XX% about creators representing a total creators. grown Our year-over-year of frequent that quarters,

Finally, and through marketing an accessibility tools. to value and move better more for they give order strength Eventbrite's position social advertising second tools. as update you come appreciate drive the wanted to I ticket more Today on of premium Eventbrite sales creators marketing of ticketing the then we're to to one paid boost a making email and

creators features. As all value we've product to that we're to great it's have delivering paid we we're fee. access events tools offers to that at creators to packaging the new for important customers free part marketing gotten better of onboarding core realize through a introducing as this these of product. and a of a these our in Eventbrite feature framework set changing for QX, event experience, Therefore, Beginning include the comprehensive to

boost much to bring wider We're be set you and as rollout this will to access creators opening of excited to continues. updates a up

Manchon, have leader our We're our Before and a of forward Dr. Senior join and this and to Board for Pilar today. of delighted is groundbreaking Google leading build Lanny discusses team Engineering, as product look the her Director field. experiences joining to to in financial innovative we Directors is AI results, customers. Pilar Eventbrite who excited guidance welcome strategic and I vision her want the at research

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

Lanny Baker

the margins step to moves second us range, Thank high to to up increase long-term new services of XX%, of that at and basis. higher you, on another XX% year-over-year and financial a Julia. constant up ticket our outlook currency had rose a in record Gross revenue over We fixed volume XX% costs. thanks and quarter end closer a was Revenue $XX targets. strong our at million control

margin $XX for EBITDA XX% advancing toward Adjusted higher. and operating non-routine was to million basis, quarter other adjusted the an target on or equates costs, our margin points up QX two XX% excluding that EBITDA long-term from restructuring a of and

with in increased the by ended quarter sheet. million a we as $X balance the shareholder liquidity million, quarter second our described to strong Finally, during $XXX Available letter.

for year-over-year in results QX, live of a quarter full-year. second Including and year-over-year up Paid Eventbrite grew XXX,XXX. XX% during a events events then all-time three new X% the on averaged on Total those issued paid and XXXX. free quarter. including QX events QX the million events, outlook per X.X of reached detail from tickets XX% down to in total experiences more XXX,XXX QX. to creators events, provide record. exceeded free discuss creators, hosting XXX,XXX creator Total Paid our I'll

Paid slightly second was ticket down volume X% tickets Average in price was the volume and $XX.X of Canada flat X% event quarter the were quarter, year $XXX compared QX for ticket in quarter. paid from Total XX, and XX a gross grew to above ticket paid the ticket averaged million in year. per year million the sales in $XX United year-to-year were same ago versus States. U.K. roughly of up essentially and last strongest The ago.

per new versus second quarter, the ago Finally, was up higher was ticket revenue a XX% $X.XX, another four rate in Revenue year ago. year and than X.X% take a point record. a

we've flow early investment from revenue undertaken price the monetization changes Ads Boost in core and Eventbrite in from made product, improvements XXXX. These in and increasing

to opportunity marketplace the even our see into grow further and to continue add value, we Eventbrite's we monetization expand emphasize to As attendance, ability help their and future. differentiate creators more strengthen

while Revenue from a to Eventbrite year. Ads made our progress the small advertising from total we're first XX% contributor At to than remains advertiser revenue, an we've QX key is by QX encouraged Eventbrite ranges in more and end is we during grew Ads already high that and Day, at validating our producing outlined the in assumptions investment that support strategic Ads. rate revenue level, Investor uplift the account take of the by

Ads. ad cost per steps for Eventbrite of are our important ahead, the and algorithms and search growth Looking next introducing pricing fine-tuning click

letter, year business to call in Investor in at and may we helpful how a targets put be Turning look the is forth against ago our relative performing model at results line-by-line our Day June. I since shareholder on detailed our the and P&L, last to to particular, think we this quarter's ranges more the it

we have unit economics, paid marketing in via of balanced meeting. per months our revenue pricing overall average per the $X.XX in showed We've achieved $X.XX, thoughtful to a Eventbrite's First, been investment was and features new promotion compared in that introduction prices six core that product, even of the and improvement investor terms steady first our ticket XXXX as actions. the XX% ticket at ticket of

to the to take As there believe of point percentage Investor plenty excluding a in margin further rate levers charges. Day We've the is same gains restructuring significant non-routine present take on and these result, by expense and we an and our has operating economics items for targets, which progress opportunity also long-term we revenue in improved a since future. deliver rate made our unit and ratio basis,

I'll this expense talent and base on initiated made cost year track million that we expect to into reinvestment annual restructuring to from for in roughly available $XX earlier is our product. $XX operating note million the freed here and be and partial

less be full $XX to We restructuring million for than the expect associated the costs with the year.

the of XX% basis a gross At of on Day, target was the trailing to margin XX% long-term Investor revenue. laid gross XX% out a time we of XX-month and margin

already services the revenue to first of that and to of the we half of volume the XXXX, ticket range and we're in target scale as middle range As to top the expect continue grow. of

and move to that into development June and stated Product consistent revenue range years. investment driving we expenses, revenue revenue and XXXX the at of XX% XX% of were can management with XX% of over expenses coming that we

we've of costs of revenue, range. and already are this first development XXXX, target of at ratio shaved the As our XX% off four and within half points product

profitable sustainable, growth India for centers development to Spain in new games continue make should these Our as in future. build and the we

revenue, XX% were than expenses support and support costs. our XX% and a at of set these Investor XXXX, we XX% sales, and to In marketing revenue marketing target revenue slightly first were of for half expenses of Day of multi-year the of higher Sales, model. long-term XX% the

centers support are We achieve States expect starting outside teams we from into this and XXXX. savings in leverage United and reorganizing lower-cost to the

of repositioning XX% spending strategy outlined. to marketplace and expect as of provide that General Additionally, we've the unfolds, the model. approaching of and the of we and in first of leverage long-term expenses is revenue to up to XX% marketing marketing as were enhanced stepped equal range XX% G&A at our to expect we revenue revenue revenue the Day and Investor above previously XXXX, sales administrative XX% and rapidly half the accelerate

non-cash manage of And the one issuance and to compensation. amortization most final steps notably note, we've also taken stock-based expenses,

ago than of of and better end were of continue judiciously. we communicated and XXXX, That's to year including percentage As range revenue. depreciation SBC points expenses, of first the amortization these two manage low the plan XX% cost to the half we a

to goal Day the Putting and we than solidly the on as track adjusted EBITDA first adjusted drive together, in of we of we Investor margin better. was or before the progress our to XX% end pieces XXXX revenue half XXXX, toward long-term. plans, XX% to on growth EBITDA XX% XX%, in reach will margins our continue Based and of Xx at of our the were or even where greater more expect invest long-term

with Now wrapping normal our QX. within revenue million a outlook. that from quarter pattern fairly QX midpoint We million. correspond seasonal $XX be to The to business would to range currently revenue up a anticipate of third of with $XX range

Looking full million our to business to XXXX be anticipate a range of the updated we've revenue now outlook year, to and $XXX $XXX total million. within

we're first We that of the now profitability and strong will with view. I points the of performance raising better revenue would and also outlook of year, our our prior revenue the the quarter year margins slightly Based the be EBITDA the outlook margin and second of earlier year. midpoint adjusted progress updating for XX% anticipate range, be or annual long-term higher range for two the XX% At initial than and growth than that the described consistent growth. in our XX% XX%, and expense adjusted in on to for three our higher model half, to in EBITDA profitability

the At roughly adjusted million remainder we to expect XXXX the across impact revenue our well the marketplace of to excluding results year-to-date evolution operational we our outlook we into EBITDA the midpoint of In our and financial with be non-routine other positioned next restructuring and and believe $XX and summary, costs drive year. range items, pleased we're are and year. of for

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

Operator

The Thank first Instructions] Patterson [Operator from KeyBanc. you. question Justin comes of

Justin Patterson

for You discovery improving clearly talk and Julia, in progress second could priorities transformation lot your you about a half? of with the some made the of Ads marketplace Boost experience.

just get of realizing the about benefit the XX% And there? and these thinking more Ads structure lot hear with initiatives, deeper hear next savings Lanny, you cost into to to this about obviously, the love would economics year from what's some you're that potentially curious for bit I of a flowing of get little of in versus how a cost So earlier? pace then progress as reinvestment unit

Julia Hartz

marketplace of year-over-year, evidenced grow great. the a proud made unique really I'm to the targeted as that's around which and a focus We're results demand we've and event side making releasing been from building results, this on that menus our close momentum and with achievements achieving to on great QX some call I our the disciplined through the of investments XX record million particularly XX% move, so buyers talked in about in having bit.

I'll used more in by making last since the call, increase seen now the features see that listing talked like events about market this the for so XX but on an have XX% then -- increase we've a events. video event storefront views page their we to really of the video, buyers essence and some are dynamic So that event, adding itself highlight can

Additionally, some that strongest to are to of consumer have increase some a backbones last with do we in in great has And relevant recent views how in a XX%. through our content the our audiences personalization in things follows our to really also work discovery optimizations where from the of resulted of more put page work we've SEO quarter the front pages come. of XX% led increase design been then tweaking of

year and with with I once So come, content our and everywhere through just with leaning partnerships think combined more content to also influencers at talked that all into partnerships social content with Eater we the about that work through right being really of to opportunity buyer a to more strength where saw because place through really second event last we the That events groundswell have the seasonal we the media. a great comes drive the right the year. of for half to

for our that there So channels -- know research through things do. are we various our to discovering

And word things the mouth X most we survey to common fact respondents find that out In a way of do. than of way. in that is more consumer to recent one use know XX said they

and off to looking bring Eventbrite we're on for make to of marketplace really for do be friends. things on forward to discovery it what in to personalization, So is and strengthen to incentivized to focused people improving the looking continue easier their

influencer to strongest sales season in and ticket and partnerships into will early QX, continue really the scale We'll we content QX. lean later

Lanny Baker

economics And a through of be that economics, tools pricing investment position Justin, and and on think of that your improving management, we growth recently in just realize question unit at about repackaging Julia in start changes expense the product, to cost and that that unit as us able marketing core the the it's XXXX, advertising. the savings, talked way we put of we've it is invested to about our be the about made our

marketplace to those of generating unfold, growing our As about. things improved our stronger the at in the we're work things partnerships behind investment the funding those each economics unit partnership growing Julian And talked those and that support looking experience, fund do is we reach, consumer has our economics. like consumer

the of provides invest -- to consumer unit So to of and provides the continue marketplace on the side frankly business. the monetization that's economics improving margin resources

the As path path at XX% target we year. achieving value end real a the before long-term that clear look our we XXXX, into of see to margin

gross locations And more we advertising. see volume. be leverage contribution take duplicated We'll support ticket beyond temporarily pricing We'll teams there we to about. rate of We'll that benefits payment benefit will cost on move and margin there. from the services our -- talked and more see from that continue relocate margin we lower cost like higher continue as to some today, from revenue upside have and especially to higher-margin

and done very, will operating tightly. we've costs as continue we'll very the And to manage then finally, do,

not to and see targets long-term we far it's away. those path So too very a clear

Operator

from Piper Sandler. Matt of comes next The Farrell question

Matt Farrell

really execution. strong the impressive results on and Congrats the

midpoint You the speaks changed as a behavior really raised the the from have consumer the half. confidence perspective last your From has perspective, few you to which a for full the months? of anything you enter creator or year, guidance over second the behavior

Julia Hartz

about -- I and with demand a the I'll Lenny talk for our the more start can experiences think then bit about guide.

So finger media, drink, demand like we're and film visual of performing in on and board, we strong life, for signals particularly trends the the our music, night and polls food across categories seeing consumer arts. have

another, Independent and out you're but to up And tripled. as people an are seeing surprised I'm are XX% events hosted have singer-songwriter really in year-over-year. events the XX% one and we're this, up anecdote marketplace, and get with connect dating want by not singles AI-related sure events

So seeing surging demand I growth with think we're confidence demand, categories side of side. just really when you across strong is our the flywheel event geographies, see about And strengthening see that the business, and on the creator really growth marketplace. you of it's the

So that able more in we're creators more and tickets. their that able category sell have because confidence seeing to more more be they'll they events host be to

for can the through and in at second them strengthen time, we're at that of of point terms putting all paid we strong point a tools, boost so I And marketing with front so social demand marketing them half live meeting right and continue both advertising, take the talked year changes of that in right externally to And right we're a to experiences. together about internally that things e-mail flywheel. interesting today, our think they that buyer doing signs really

you would anything there is Lanny, add?

Lanny Baker

could perhaps stronger seasonality outlook see popular at bit, all seasonality, historically. they're healthy assumptions fall more of seasonal leads full live always than our nature quarter today, stronger little look events. that a are points by bit continued holiday year, the of a the a think demand fourth we half Fairly nature the that As normal for we little which a business second seen I for the becoming we've toward probably and to bit little events, our

of our that as we may end range. with to it are expect And the plays out tend of the kind that -- those correlate higher things

packaging continued Ads. little our of organizer Eventbrite and a the We marketing revenue Julia from the for course -- more the year, we fees benefit expect growth noticeable also about. And tools see talked bit of over the

Matt Farrell

product. potential a follow-up, including process as way the be the the is to into just about hear of there And we a bit little love decision-making these any maybe model financial I'd tools about the the core And logic changes? behind and thinking impact demand should more that generation

Julia Hartz

let I'll talk Lanny start and about with the model. the line then I'll

on mission are of been our to Our tools larger nine central marketing really past proposition make live creators and audiences worked creators has generation and to months exceptionally highly seeking our events to valued by demand marketing the this clearly, and well. tools push is over performing platform is the are to our all value who something we've

creation a AI-assisted those on our in flow re-achieving creating XX% are Xx. instance, of return faster XX% spend campaigns and to improvement ad as social And many copy Ad For is a media launching Xx Xx results and seeing campaigns. subscribers

we are strong So of signal Ads. marketplace it who using in through point knew this at are was the this Boost that and saw we and who advertising customers in success efficacy Eventbrite the

this value to and benefit by bringing We Eventbrite, by platform. will of it the value for all front better creators the of door growth and and growth greater think faster enablement

to generation embedded experience tools in think the So perspective, right from demand creators the the now timing the we opportunity product is gives fully from core that this ready benefit and the was all product. that

Lanny Baker

provided way the Eventbrite. are that their the as with creators introducing we're by success events, and of Now fees scales and value in structured that both that that the size is as the organizer a with well

use of events, we free majority events and as tools much able both we'll free. of could for be The be XX% publish our paid to and events events, expect as and our

more relevant, scale structure per creators fee As to and success events with tools fee the and important we become value the event more our modest matched that to have of them their value and creators. to becomes our larger, marketplace a

Boost rolling also across the more across are much most packages We'll the fully third unlimited we the frequent marketplace and during it's days. quarter successful and really quarter. that -- For an event early creators, this like the be basis available on out have subscription a

back which update are go and a provide. report on $XX as $XX to more. done research for based on very from we we the done, we've that range as you We'll research per-event and we'll The extensive capacity, that on depending event we've affordable basis fees we reasonable we on believe value that learn per

Operator

Mansson-Perrone Morgan question Stanley. next of Cameron from comes The

Cameron Mansson-Perrone

to increase through, color in are And roll on sequential tick like kind nice you I'd price in in what then -- XQ. to to Would creators rates from after we're willing hear there. terms were? Lanny, that at some any update would you but gradually kind to of -- there's terms paid color really was the room growth And it meaningfully that not just provide already that love kind up to a love love love quarter-over-quarter any improvement down that for seeing early you're drivers the of take higher? seems in hear to of in of the rollout X%. from whether of or you move I'd think get still a tailwinds the little of think

Lanny Baker

by On the that the about about it pricing year-over-year XX% consumer-related an it now to at raise start that of applied take the pricing right of driver rate, change the and is fees this ticket really our XX%. transaction the of largely fees volumes are year. we And on probably introduced effective the was biggest

pleased the what a to ticket. seen gone But the event that demand economics overall well, and as said of modest improvement faster value to helps It's earlier, I uptake reaction price value we've market of the and and we've strongly and the amount the in us generation of been the more consumer in side on the with change go of has that fairly relative to business. unit the

from also Boost a our dime has over last meaningful paid combined per The it's ticket. year from getting been between tools probably Ads We're and to close the Ads. and uplift marketing and

and from little them from of a help those of Ads revenues XX% and mixed to are our ability events. coming events that's XX% who of to promote really about calculation Boost free because a creators market Now value those bit

million revenue that important But quarter million product, overall, $X did days early in on little the it's ticket the about an over was $X said, of marketplace sale really transactions. driver. nearly a We're of bit as it $X Julia revenue, in billion of Ads

So these be value to customers as we that we're there and we capture for of demand our deliver rate turns take a opportunity that we tools, marketing bit value -- continuing to is is drive delivering quite to are there believe around that and Eventbrite. push generation value

Julia Hartz

then back on we confidence. And targeted To fruits bit, on labor our sequential growth through creator creators. the sales see our our XX% in creators, coming in really marketing quarter around campaigns of paid this and of in a terms self-sign the is of step

and that are So strong because through through there. right discovering events, Eventbrite word to the about growth really buying gross paid they're are creators margins where tickets great channel discovering marketing. SEO this the that's or mouth, they're of That's driving bulk of majority

really Canada quite categories and out geographies, community And are well. in cultural back communities seeking of we're general, as professional coming events visual quickly, business terms as record together geographies, we great. in high In people. arts ways grew hit is which to think QX, meet tickets year-over-year. seeing and XX% of new grow performing in the U.S., together and XX% And a total Outside grew U.K. the and be then U.S. new year-over-year

So come is which some non-U.S. promising. markets, we're strength back in seeing

focus of through points demand a to I generation myriad We proof front putting creators the our audiences So want on message team coming on be of give to here. based delivering methods and bigger to credit event Eventbrite a all that in reach seems to different really to really well. told, that's working

Operator

lines. thank for you your conclude that for and your today. the We please you conference disconnect and Ladies participation call this gentlemen, does ask

Eventbrite (EB) 3 Aug 232023 Q2 Earnings call transcript