EB - Earnings call 3 2023 | Eventbrite, Inc.

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Katherine Chen

Good afternoon, and welcome to Eventbrite's Third Quarter 2023 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 1, 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. We undertake no obligation to update any forward-looking statements made during the call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law.

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

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

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

Julia Hartz

growth pleased Thank report were third that in you profitability our noticeable results revenue year-over-year. joining for and today. We're to quarter with us strong

have X-sided more to excited momentum by to our demand marketing Additionally, rolled our which the a us the reached have adjusted sales year-over-year. $X QX. rate Year-to-date Take creators. marketplace, X% out will million I'm nearly and create transformation doubled than all XXXX, creators. now in we almost over value generation our successfully in into for year-to-date we comparing revenue is grew long Eventbrite billion When term. Gross towards we're and EBITDA transactions XX% margin. building more tools enable our totaled $XXX ticket

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our customers a strive committed and experience demand we're solutions. capability. to experience our value product will allow and seamless combining our This marketing with a communicating Secondly, customers create with to core generation enterprise a And to better exchange and we provide by ticketing better and to creators finally, cohesive our ticketing fair between creating new us consumers.

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for XX%, release quarter, is Eventbrite indicating During increased supply total new ad market feature over each by demand that on improving fit. the third product

As towards Eventbrite adoption. provide clarity model leading the to spending Ads, return even we we expect move click to more cost wider per on creators, ad on for for

that Eventbrite noting from revenue During in subscriptions. that witnessed diverse worth this days. revenue the total has third increase so represents still early seen far, It's fees although and profile quarter, a the organizer company most it's XX%

and long-term the continues Eventbrite closer improve As targets. grow our take to we'll rate move to continue overall financial its to achieving business, higher-margin non-ticketing

our our of Eventbrite's consumers. of XX attendees. quarter, needs catering Now a In focus we're the take and at reach side let's shift third almost marketplace million to to expanded to look the the how demand

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occurred unique experiences. consumer on of local a the and XXX result Eventbrite continued live sessions have as over Year-to-date, million demand for

invest with TikTok unique discovery the continue process to in up marketplace, in Tyler targeted Bachelor the marketing ourselves critical we to might this has Eventbrite. incremental ticket a drive Using data fall trends Cameron is consumer example do ideas we One popular is and viral events our GTFO and no -- to to better one September and Instagram. expect, event what will than where embed on want campaign, Those to dating insights you content us predicted area. point thoughtfully teamed spotlight sales. and Date help building As consumers our and and consumers drive to

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recommission in conversion. and personalization we're and are of Our models, benefit number increasing models touch engagement and consumer that updated, points increased continuously which ML-based from these the results

Lanny, I before are call in team to recognized even and named our organization development to the tech so deeply by our in newest turn that equality being to most I commitment congratulate inclusive I'm Lastly, our values for our already India they're proud for the women rooted want that in culture in hub.

Lanny Now outlook. and our QX will discuss QX results

Charles Baker

restructuring our delivered in revenue long-term Thank volume, rose end fixed control was ticket third at thanks to improved year-over-year. Gross continued you, progress Julia. outlook XX% and targets. excluding our increasing up of high quarter financial $XX margin support range, Revenue to in We marketplace-related of the million the over of costs, XX%, costs.

margin basis. was nonroutine margin and points for same operating Adjusted excluding $X adjusted on X% million, period XX% the year and last other an quarter, EBITDA to from an That yielded bringing X year-to-date up EBITDA the adjusted restructuring our EBITDA costs.

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

events overall more XXX,XXX. in paid creators, outlook of tickets QX, hosting and now the paid I'll XXX,XXX including paid million detail creators quarter creator reached third quarter, $XXX,XXX Paid event X% and QX. which on XXXX. Total our experiences QX provide year-over-year grew free from and issuing those events during on averaged results then year. to and for free XX% year-over-year. per exceeded X.X full in QX events the X% X growth events, live up similarly This Total Eventbrite down supported to pace discuss

tickets ticket same paid States of volume year third of per in was XX% up were last ago, X% the rest year. over and grew $XXX million and from the X% event averaged Total ago. versus in the a in quarter. the year-to-year tickets Paid Paid price world. United just quarter Average gross XX% up year-to-year X% ticket in down was for year $XX million from slightly $XX.X a the of the quarter, ticket sales

rate in Finally, one the is was which QX third Revenue another X.X% per quarter, XX% more record higher full ticket than XXXX. year $X.XX, and than was higher revenue ago. than a point take

of year-to-year product pricing in in the per better approximately increase revenue ticket. XX% the support core Investments explain that

the While in and in per accounts ad of QX. the organizer about improvement revenue strong fees, XX% of growth revenue for ticket

Eventbrite's attendance, market monetization. opportunity see continue we additional to that we creators ability grow build help to and to events strengthen As

we help monetization further and unit economics. rate The of plan Better in year, into P&L. are combined Turning with new event unit to including resources the our improved in and thoughtfully encouraged higher the We're transformation. we significantly we have pursue Eventbrite, earlier economics monetization events, fund continue advertising greater future. that actions invest growth-driving and as this financial gross to activity and the by advances in our financial marketing twofold: to made on model product overall early to total We the marketplace took these structurally as the features paid the expect pricing free of investments. core favorable to take margins improve benefits we

Demand ticketing as beyond areas. to focus We're generation these net and market-base continued expect related the revenue profile this to exceeded we accelerating and quarter. of pleased revenue during of X% diversification revenue our make progress see on

plans And million Newly Eventbrite, be in quarter, revenue QX. QX and more of Boost will $X the XX% during million, contributed the revenue in balance tools from subscribers from ads introduced non-ticketing levels. organizer to on $X.X QX. contributed Eventbrite up organizer subscription Boost fees associated nearly in than was listing migrated marketing events with revenue and

I'll basis, to charges. nonroutine and which on turn we restructuring excluding Now items operating our profitability, will present continue expenses and an to

and $XX be to expectations, of initial Regarding million the base, the restructuring, from we're tracking to operating to product. portion for costs anticipate roughly million which to total less in with of annual restructuring $XX we our a expense expect year. in Consistent our and reinvest costs we intend million than talent free $XX plan

remained X period our to year improvement the same and XX%. is the toward strong for higher of XX% to end last more target performance range margin XX% at compared of than QX. points climb long-term This to continues Gross of

a total revenue in growth of while more the compared expenses Our quarter XX%. ago, operating XX% $XX up to year were third of than supporting million

efficient and during successfully an manner. to revenue. and meaningful teams provided growth and And product, administrative increasingly of Product Product development operating and gives development in engineering and quarter. grew to expenses that Spain XX% our margin X% development flexibility India. the We've expenses, of proportion year-over-year, general us and a both invest representing leverage shifted

XX% profitable to within to road product and on We an map XX% eye on our sustainable these expect with manage as we of revenue execute expenses growth. achieving

are administrative that up were here Included transitory and XX% costs duplicative expenses in our and General anticipated year-over-year. plan. restructuring some we

the coming model. long-term year, abate range XX% the administrative to As that to of general XX% in we expect to costs our closer revenue those and costs outlined in drive we've

to in this And holiday and support demand and drive the and of up and stepped awareness what we Results the marketplace delivering and our believe for we're QX ran parts our accelerate are we for blitz seasonal ahead restructuring, period. our these learned to investment marketing looking We initiatives. leverage, in the Creator encouraging, elevate With timing consumer, company we've to occurring sales, in repositioning. just campaigns operating tandem of strong particularly adapting generation. brand future from consumer marketing

We rate international also lower-cost into on marketing longer made team grow progress expenses to teams support our sales steady and intend do at our relocating QX, not XX% that so and regions. year-over-year expanded we in Sales, term. grew customer support

in final revenue business be quarterly a revenue. current would in a be the growth we information, of million of Based and for currently range, for between the million. all-time fourth will the quarter and to new anticipate $XX to on full lead our At XXXX. outlook quarter XX% and range fourth it revenue that record midpoint quarter the year to $XX Turning

growing contribution ticket organizer comparisons modest anticipates outlook ads paid volume. revenue a QX Eventbrite and Our in with fees from year-to-year

the full million For XXXX. $XXX we tightening currently $XXX XX% growth or to outlook in XXXX range revenue at the million midpoint range, revenue the our we're and to anticipate compared of year,

especially disruption tend a the model. ticket as tend towards range the of or more results we've factors and fees well our indicated previously, organizer for end macroeconomic product volume that of shift from outlook shift range outlook as new events arising demand to stronger include would end As it business and paid would platform and toward of Eventbrite the marketing on include relates move factors, results fees marketplace upper to introduction to Factors reduced successful as that ads. the lower our activity, toward the

X% at expect in of be full margin goal we restructuring year for on impact from Based XXXX. excluding improved the adjustments margins, EBITDA charges, outlook with described, point to just the reserve in revenue XX% adjusted XXXX reaching track and significantly XXXX, adjusted in range a nonroutine other the our of items, EBITDA a and the XX% of of XX% to on

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

Operator

the from [Operator Patterson Instructions] of from Justin line Your first question comes KeyBanc.

Justin Patterson

Two If I can.

sounds like geopolitical and more quarters that on products ticket influencing risk beyond. once you're concerted should over we First, demand it do How macro push generation in volumes things we a into and have making more coming risk the about think play. like QX

question we fee operating EBITDA So assuming a about that's -- to of the you margin certain course year. as of I to containment? more is adjusted And factors or margin would benefits? just Or the two, level just during get the organize Is that revisit ticket one. question the XXXX, to love your that think cost XX% growth, for

Julia Hartz

question. the Appreciate Justin. Thanks,

can really consumer are the on the are where right consumer around growth. thinking making we of making they much are them side, how bigger event into front demand, The the push demand at right focusing and time. investments through really the in we're put that On meet a we product-led

that team is we're what needs that our clear ensuring the and really We Eventbrite. So are we to can also that that marketplace And really that the to meet the of data do. our inventory who that the have of demand in focus we And the data consumers foremost value demand acquiring and on inventory best marketing localized brought coming proposition side a ensuring front we want crystal experience. focused use to why That's in genesis our see. on tools believe train that to the markets we consumer lot the have those of strategic Eventbrite to supply to on our the around get door meet generation, creators we of demands. first

think the of discover as being the And X.X then personalization, and that's about consumer sites put rooted partner vast wherever opportunity quarter events ability in experience event one needs search the the on side, of at big to ticketed to we and Eventbrite in is out syndicate one to go-forward think platform. we consumer the able that that one's consumer events the time, in our are. the and any helps they of on the right meets front events million-plus distribution a and strategy right those part right

looking ticket of driving world about But a the that the lens. high through of we be reinforcing that what the just long-term volume we growth where So we we're to consistently, of that's in will our level goals. should think towards what consumer thinking in terms and double-digit and ticket marketplace that's volume at think contribute really is range

Charles Baker

volume overall end EBITDA And growth EBITDA factors conviction. is Justin, growth. the that lead is communicated that XXXX ticket and address us expect volume your this we paid margins before ticket is about to surpass Lanny. Number adjusted and we've multiple What can are question XX% adjusted I of one to there XXXX, margins. that

to ticket of as the cost and margins manage our as within the years upward over move last revenue volume fixed leverage there. As gross costs couple grows, you've it seen get we of tends

margin fees, about little I'm actions operating on marketplace. revenues work this the has our and XXXX. non-ticketing to said absolute that margin we percentage stronger in non-ticketing talking gross as higher Secondly, revenue that to that done diversifying are a bit into revenue significantly we expect go came revenues quarter, the the X% revenues, tend revenue we sources, the from advertising we've take is in us Those organize mix pricing be and grow of as dollars, allowed as and product the to for of revenues a us. in benefit

as revenue scaling year dramatically also well. consumer markets side important that team undertaken of are to in a the the organization now from payment the We've relocation than our improving . We'll us heart All very Spain the lower-cost of as well that about development lower-cost support as relocated those brand-new growing creator ago. this resources allow a sort unit of product customer got of also moment to base hub. our to members benefit XXX in that Julia and teams will the our very operations economics. our in more of talked we've engineering we're quickly And markets. things our and We've India, marketplace serve

marketing operating or forth that we better the to costs, G&A, have set we've that's and gross product confidence turn sales So to path adjusted when over both our that back against EBITDA the years that the targets getting margin. leverage ago, we'll XX% and we margins, long-term lot development to continue of X.X and to a gain

Operator

line next of question Morgan from your Mansson-Perrone Stanley. comes And Cameron the Instructions] [Operator from

Cameron Mansson-Perrone

the One, benefits think to of me lot of I wrong, this impact price about ticket back driving that as appears and ARPU growth I'd value-add XX% the combined dovetail like growth. half from think expectation to really growth X hear correct mostly on and year take model, year, rolling you you mostly has seen to really improvement. question get if rate about trying been see, volume can mentioned the next increase some think the you on the curious you've tools, but through kind year, that Justin's factor I'm I of the the what XX% a -- be your we and whether but be

every hear bit driving X sequentially. year in those not just the seasonality factors probably So down we drove how you're terms Secondly, year, terms up were to how in that those what out the change of in how they that I'd may of you that you you see keep given should in year? it price And this I creators be mind. in think ticked versus growth what there's growth terms driving might going anything about change little 'XX? increase if year-over-year, nicely of And to timing or curious can, if general call then a next growth but

Charles Baker

growth question your address I'll revenue the Cameron, Sure. formula. about

than to a to know, which single-digit this creator. a our our laid double-digit out for as little growth creators, the in marketplace equation will we We you in formula XX-plus quarter, per dynamics growth become core model. But evolve were events low is become we've are get digits this percent low we there where is to mid-single-digit audience. growth digit We in were growth of As X-sided revenue fully platform. mid-single the a a creators find more and rate take we high us. tickets which single-digit to That per down single price in bit the high ultimately long underlying rather dynamic. to by single per year-over-year growth. digits creators low that's mid-single sorry, more is low ticket, single mid-single-digit help Paid . in And quarter. think term, as think growing a the Tickets to digit to we digit growth event -- then really the set

So inflection absolutely the fit functionality year market the that, the we've right. took price really January been the creators. is this product needs up happy gone work well. predicated has tighten and this to big that to on for And of in most upon done I'm earlier pricing year, take product to you're that effected very XXXX, We of that very, a say the The us. step our has rate a increase valuable really

has organizer the become We behind now Boost, introduction ads out and the everybody Eventbrite which to fees. have available of then rolled

and product as we've response those -- tandem is know done to they much feedback really that in tools change. value a core even are events. recently, And that the from creators what our is from service proposition. that value baked that absolutely is with them helping to a provider as from marketing grow them seeking it's in we us as we've in this So And -- into -- it

So for this look formula creators double-digit growth the the XXXX, in growth does in year, like in and take double-digit rate.

then our focusing we've positions us And perspective, growth most, to which talking through extremely do on search want content, to marketplace compelling hyper-relevant, from is in-person, all to where consumers market way present through attractive, platform. personalization, a the talked think Julia the in an about. distribution, that on that the about, and on I that local, through going and forward been means inventory that the secondly, obtaining content engaging as bring consumers discovery things

have more the I flex So volume, of bit the gears growth that. will consumer as not the you'll drives revenue, ticket as from that year of rate. be of volume. ad paid paid going our see coming really and we forward, forward year likely on next the year-over-year take go growth think the and great and a to shift you're model sort a key little ticket right, with from But continue is We'll which

Cameron Mansson-Perrone

the on keep -- Got it. sequential to just And the that we growth creator could mind create then anything in

Charles Baker

No, -- total guess quarter, creators, I seen to creators we've sequentially, think the XX% plus numbers. in free we little pattern and creators bit second the grew a third I of the And grew in seasonal year-over-year coming creator off quarter that paid paid total in the the quarter. and creators

of all So with growth in performance the saw, difficult the of we we're changes that we're year. making this and in at light pretty other time happy particularly the marketplace, that

Operator

over we no this for further comments. closing I Executive at Julia Chief will As now call time, to turn Co-Founder have Hartz, and the questions Officer,

Julia Hartz

our been Eventbrite event organize year of million of the recently, want listed we've made the discussions in principle community moderating comply call. on We all final vast available to emphasize the make policies terms to content. regarding on founded service I for have that there our note we to on the providing on wanted our website. last in with is close event. of before one events the X And platform our platform majority guidelines that a

review each is consideration. with careful we thorough case rare a However, needed, where in the instances more handle

respectful constructive or common a people express support is in by bringing person mission foster together belief. to their cause conversations Our to and

community appropriate or welcoming prompt policies, moderation any at policies safe action events activities ensure violate using align these of maintain in take our community prohibit or our those If space we and threat a language, incitement and to events. for all. and with consider We strongly to our we they value. However, content harm carefully

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you. Thank

Operator

conclude Thank does you. conference. and the Ladies gentlemen, that

Eventbrite (EB) 1 Nov 232023 Q3 Earnings call transcript