EB - Earnings call transcript Q3 2024

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Operator

Good day, everyone, and welcome to the Eventbrite, Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Katie Pickett, Investor Relations at Eventbrite, Inc. Ma'am, the floor is yours.

Katie Pickett

Good afternoon, and welcome to Eventbrite's Third Quarter 2024 Earnings Call. Pickett, Katie is name Investor Relations. My today Executive Officer; us Financial are Chief Julia Chief and Officer. Co-Founder our and and Hartz, Operating With Lanny our Baker,

be is reminder, financial website Relations results, announcing prior to Please our released recorded conference find a to investor.eventbrite.com. replay to call which refer Relations As and Eventbrite's was this at will the our Investor available also Investor our for on letter being call. website shareholder

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

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

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

with letter. to important Julia. I'll shareholder We to of our that, shareholder financial reported directly operations which in And isolation now to and comparable is GAAP or read GAAP You a our under the should contains our non-GAAP the turn over for you reconciliation as results. as in call available them information of not analysis most substitute about letter, results measure GAAP. A consider encourage

Julia Hartz

delivered we million, our third welcome, In exceeding and everyone. Katie, revenue you, outlook of range. the quarter, Thank $XX.X

Importantly, our results. driving are strategic actions clear

changes. acquisition creator New pricing September our is accelerating following

campaign while flowing updated success and in win-back year is our continuing progress offerings our revenue seeing quarter through early upside our are financial outlook. third our I'd position both creators and is the product into enhanced Our to invest like to consumers. and growth, full key We've strengthened X attracting priorities. frame

returning our top and this First, ticketing creators is with events our begins attracting in to growth our to business core and marketplace. more priority,

stabilization. our observing to Following pricing signs of we're early changes September, model in

fees impact. improving creators seeing Our expanded acquisition, which Paid Creator upfront begun to unlimited paid of and across ticket year-over-year in metrics. free launch. both transactions without growth are tier, free events show key trends allows in and returned events has volume month positive events. to We're to event publish the

historical improvements, base over time. patterns, with more creator with strengthen win-back returning will initiatives consistently combined we trending these believe is our Our and our marketplace

of Incredible Places, people in events our like an even into They've understanding tap founder and caves, Let life the innovative new creators of consistently they high-value the e-mail Reed, what advertising scale markets. active Nathan our cadence hosting how by won across museums, Events with example want bring leadership tier, important early pursuing cultural capabilities. scale have Under do a partner to compelling With Discos paid about success, and and communicating tickets compelling them features strategy steady become effectively like support in we largest continue trends growing to than strengthen We on validates multiple EMEA, encouraging Mega they've to fourth new on audiences only Events strategic but to and particularly our airfields winning. also this an to sales win-back features product Mega concept paid our we creator This support. happen enhanced expanded creators a into of massive more about capability investing innovative platform, also platform, sold attracts with plan significant marketplace not but and generation customers type serve drives it markets. marketing, both flywheel. campaign Building What's Eventbrite The making rapidly called can on not Mega support see one and as unexpected type in-product free our ahead. strengthening an quarter who we ticket and to of success only volume, of former in results. scale. type targeted inventory across the the creative on in our significant partners of this demand of aim of creator me we're focused about and the these exemplifies of million Silent campaigns is messaging, pioneered we September, we're entrepreneurship capabilities venues Events, offerings. motion, opportunity have Since back a our concrete we're X.XX cathedrals.

expanded yielded XX% support a achieved success times an rates transforming improvements of growth food customer leadership Through in Complementing driving music, with second With momentum our in improvements our Year's by and and team creators. with response encouraged have place, Our Eve We're redesigned drink million are premium larger marketplace bookings XX/X particularly our support in model. adding technology $X.X renewal among significant shows. strategic is which in consumer we're support and These reduction quarter New closed this pipeline across through sales we and creators. coverage for expansion. engagement. sales new inventory events, key to center, combined onboarding holiday new enhancements, drivers strong phone expanded efforts, our we've and and comedy creator

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strong have timed generated our Since new vision me already focused sophisticated adventure already complete entry tickets, segments events. into live ticketing innovative needs. of who family-friendly interactive creators creator become exactly and key to strategic initial categories with from immersive, type third In entry launching per of by bring the and events growth. benefits and significant executing beta they Patrick dates how drive we've X These to life-sized more for and Mines, such our offers term. They're our large to me experiential broader seasonal over the more World, timed the among experience strategy pillars This and value the as animatronic marketplace. in Unicorn bring new crowds slots X success events XXX,XXX life leads new marketplace vision is creators, who our experiences uptake this manage timed particularly unicorns drink this product Let Eventbrite, event of Lauren see we driving validating creators market. frequent throughout food total, functionality nearly to August, and indispensable creating our an tour their Currently created larger and experiences. are the as music, seen communities. Unicorn days. like continually in that World demonstrates entry expanding have their multiple of the month adopted the transformation their cities hosting priority, The to they're capabilities on expanding our will early time on innovations opportunity reflect market and with successes creators to across event in longer in

share XX- with particular and network XX-year-olds friends, discover powerful to to This demographic local and as consumer-centric effects. Eventbrite twice brand focus likely to attend through First, the we're social seek scouts, evolving events more creating a likely on out who actively experiences. unique is a significantly with into

and that World consumers, aim matches high-quality managed means a building at with type local innovative, of target supply experiences marketplace that audience. bring also we're Unicorn but The success of the the ensuring scalable This level. Second, connecting and in exemplifies just communities. inventory events to creators resonates more we to demand mega our not

where Third, unique revenue frequency are. friends. we're are with our consumers consumer Notably, see how and the where capabilities. seeking is monthly, platform our actively and a pillars logged-in stronger focusing TikTok consumer discovery great engagement. younger marketing of comes experiences be number consumer events to creators surfaces. purchase of distribution coming In they we're extending the quarter, frequency clear. It's of the our to localization we flywheel. cities, growth. in. is and strategic and prime now can meet marketing enhance consumers to reach example our partnership and and drive where mobile using share we're show purchase personalization, creators audiences third nearly our These reach local live expanding year. for to retention. This our XX% launch X as as will designed tools this and early our web mobile app twice subscribe Eventbrite testing, higher greatest Eventbrite XX% year building and higher, results in personalization ads app Creators next experience, than engagement strengthen usage popular last marketplace our compared who to in reimagined app, major within on enhanced More to to about By by further beta market. use to XX a host our is grew to excited in a events new XX,XXX plans the cycle to stronger self-reinforcing on The consumer is we Currently are search To introduce

succeed, more they platform. become our creators who to consumers draw more creators As high-quality turn in attracting more loyal,

Fox, look will high-growth Operating doubling focus Anand of from phase platforms XXXX, support generation to customer on leadership including to and CFO consumer experience marketplace since our helped Disney, operational valued brings join driving our where while financial sales role as and Anand's Gandhi Time, Skillshare. we strength announcing next leverages his Lanny new been transition Financial us as an as Viacom entertainment and valuable Anand teams. our As welcome important in he'll has where joining more well performance execute revenue. Anand lead appointment CFO of as I'm than across Officer. scaling on excellence. transformation, XX. Chief this November We to from also in experience Lanny and the Anand a to the welcoming he growth. forward transform as we're update revenue perspectives excited landscape, Viator, enables his partner designed Officer, Chief our drive as

with forward. close path clear our me Let

and our deliver results Lanny? drive outlook hard our thank to walk confident for that, strategic We're platform remain increasing capture the to would in Our tangible opportunity to discipline. through campaigns. well quarter like successful our third Brightlings I'll it value We to dedication growth. I And for initiatives we and with turn set over creation our the partnerships deliver results as with shareholders. through and consumers this accelerating positioned quarter. work for and you fourth stage on strategy are financial to ability long-term our year distribution and their win-back the Lanny and event capabilities, to strong ahead delivering creators, profitable enhanced

Charles Baker

combined revenues The and of The Non-ticketing a ago XX% represented pricing declined Julia. headwinds XXX,XXX packaging was third you, reported quarter. called $XX million the out down fees Thank of to ticketing changes basis. a paid from we've Ticketing to previously. year a ago quarter. organizer revenue the our in for offset revenue $XX we doubling continued quarter. million, of in last impact a that XX% by revenue ads million year quarter above ticket XX% We versus to range, and third third due outlook Eventbrite total year number but creators was in on $XX.X which partially from X% revenue year-to-year, growth lower the introduced volume to

begun $XX.XX, rate year-over-year, and ticket per take our quarter, while has Julia increased tickets average September The as quarter, XX.X acquisition volume quarter, as and the earlier, a million event creator creator X% we XX% In XX down was points in to free benefit increased X% per tier by year-to-year higher described price X.X% than year the declined ago. issued in However, revenue tickets year-to-year. X% to paid the in basis ticket events the comparisons. launched

containment of X% down ticket debt As increase ago a ticket and modest compared quarter year million which the the gross revenue a Net The third from this reduction loss the loss offset chargebacks $X.X a million we loss year a period to costs incentive as administrative $XX.X of million in the development were the and $X.X quarter loss of fees. year-over-year expenses support revenue. as within third the $X.X the million due to expenses ago, in Net growth force third and revenues year of quarter for third Total savings included net third quarter cost as XXXX with in the adjustments quarter costs, in was quarter $XX.X well year $XX.X well associated revenue reduced $X.XX Product compared General compared quarter reduction quarter. cost in $X.XX a to announced of per year a $XX ago. compared slightly of note a marketing severance Adjusted were $XX.X XX.X% increase gross by the with reduction by which Gross period. same August. and expenses focus our in million costs margin ads profit Eventbrite million in $X.X $XXX,XXX was expenses I quarter. were to the we XX.X% million million that headcount remediation the for as and as during with an the to in force expenses, the a year in XXXX. in XXXX same result, expenses reflects million coming compared included higher for quarter million quarter, third in in cost the expenses with a Operating on as per should $X.X compensation a down lower $X.X in compared compared million million and that million $XX.X expense. million expenses was million third third to the million were on $XX.X quarter million the marketplace in margin to figure to $X.X in undertook fraud other reported organizer in in to that in related operating includes rate in $X.X and lower as our in million marketing increase partially extinguishment. compared year offset ago. ago, Sales, $XX.X team the the third ago in EBITDA associated was totaled $XX.X full we force were in $X.X size. in take were

would adjusted the costs, for $XX.X million. EBITDA those Excluding been quarter have

was $XXX the up end cash were liquidity, flow Long-term $XXX X focus share of to quarter, at available the as the million million of million million a of months notes. million $XXX year. quarter ago. end since quarter, repurchase In back share this completed $XX letter, $XXX to program. committed in equivalents from of in at $XXX million totaled quarter the in convertible at million Turning notes, to operations third the the second $XX of the buying first third XXXX to shares year-to-date, the balance $XXX of Eventbrite's under of $XXX start remain retiring million. cash end now this outstanding Cash our million approximately $XX After in the reducing year, the $XXX from our our was of second sheet. down and debt defined million year already repurchases our at X% returns by repurchase end We've stock the We to reflecting authorization. compared million the from the million $XXX reduced shareholder our quarter. convertible to

At million nonroutine outlook to $XXX XX%. costs full be EBITDA excluding the midpoint the be Turning XXXX and XXXX The within of to be a items, fourth to we our outlook. company revenue full impact $XX adjusted range, range $XXX of million. revenue expect within range $XX million, approximately year to other to margin, of year million and severance of to revenue our quarter expects a

financial it's outlook. As look we early a to to bit provide a next year, specific

questions. clearly delivering providing are we're discipline bringing creators trends. we're driving channel, marketplace. sales has inventory back of are call operator However, expanding creators year. cash support, new free introducing our retention. also that, our communicating win-back inventory while creators our By our we're event And improved there care to we've new By of market planning generating acquisition the I'll returning factors and and flow, customer over the tier, consumers. and take solid to encouragement operating we're to our through which shareholders. platform. our creator strategic with features, for adding on value And a the and our By growing number your enabled with cash customer our to with satisfaction of to as we're through leverage and opportunity flywheel valuable we By campaigns, the focused and serving offerings reduce the and strengthening and engaging By turn us

Operator

question Instructions] Cameron is from first coming Your [Operator Stanley. from Mansson-Perrone Morgan

Cameron Mansson-Perrone

them Any during they First, I paid if more transition. wondering the organizer the -- fee provide platform. worked any And terms And rate? on where color was back you paid color that some have platform? on creators you back? the on them commentary well bring left to went the guys of most when about initiatives in that back what's effective could platform of just you the the of far accelerate in win think to left those who creators proven so initiatives talked for additional kind winning some Any new to

Julia Hartz

to specific to and seeing. tier of to Cameron. Thanks, out impact be September we're business. sort Yes. about on We expected rolled free see this I we X, the waves of what want

our a The pricing we bigger for concern creators events. are change being think the was first those hosting free free who who

are The changes. whether through then sales customers creator self-sign-on we're that second pricing returning through barrier and funnel. retain acquire paid a we and to and contracts acquisition the sales The being we of customers the are independent creators. converting new third to our them creator that was And self-sign-on contracts acquiring or sales being channel, net potential service new the new

top competitors regularly. of and track we're we a homegrown that they start-up where seeing different a of major the or competitors. to went, went We're So, customers seeing our variety winning that we're solutions of back thinking not ton when market about paid self-sign-on

is and it we through these activations. win marketing of back can creators, channel we're that a we're doing feel doing we series confident how So, that very

a with to are with make to to them We the we platform create giving to Eventbrite, incentivizing update on marketplace and platform come them have in also we're this using the to the the year things a pricing creators chance stronger last interaction to reconnect for that the but change, rolled back out all better them.

So, These able to for already things social have. out to and event to more-efficient their the that that premium ability in and now support of incentivize to integration And it's rolled early We it's to just that are whether native to very since sleeker phone to we've enhanced started. back platform and the million entry TikTok use we won the ability feel integrate or use Eventbrite much with our support XX/X getting back. we current TikTok, We videos, the types service X.XX time link to just or about we're customers end-to-end from that's results. saw customers and customers tickets come come experience. September, our strongly we're events

Operator

KeyBanc Your Capital next coming from question Markets. from Patterson is Justin

Miles Jakubiak

is Jakubiak just for another This on Miles Maybe creators. one Justin. on

the anything think rate, at we would incrementally new quarter step be side paid we XQ? specifically rebase seeing that that kind see in down quarter, a in back for creator on we a on should this helpful. take but the of tier as that expect from XQ, a color financial and to Assuming growth mind impacting free in Any about level then most of full And keep XQ? how should side, the creators of bit little the should come a of into just you're free we quicker the on reintroduction

Julia Hartz

Absolutely.

be trajectory and path first clear about question, our growth your in I'll forward the creators. So confident why let we're around and me take

concrete we're want guidance growth share drivers. While providing XXXX today, key that seeing specific our we're the across I not evidence to

midst that the is talked really expanded the the So, of free is I first early transformation tier. about are our showing in marketplace success. we

paid don't just but platform the over at X and strong that over I months -- And go win-back brought staying this I campaigns back in $X. have back to just need over is ticket creators XX,XXX is our of shy mention work. of our didn't that, so, Revenue to already, per again about

of continue our We'll focus way them to about Eventbrite happy lock marketplace. of to show is in customers great the that. we're and which driving on a ads, So, benefit the adoption

starting the new talked and consumer sales bookings on inventory but the important strategic also that tip $X.X be is reach. that I fully-ramped, consumer on as Our the feature, I was with timed the is to happy team of to focusing repeat really and so entry about just hit million spear loyalty driving in They're over wanted this I the purchasing. to quarter.

continue in and So consumer is that local better today. active driving adoption XX% demonstrate see going users of that's And mobile continues and expand. enhanced searches out will XX,XXX because We're retention. to pure like think not discovery marketing our users, matters tools our we up events. as revenue almost ads, were we we driving marketing grow and year-over-year. as increase almost strength only our getting to reimagined creator value-added we We only XX.X continue million saw half tickets And to that And already, will is of continue Eventbrite our and monthly app here, that creators' our users creator the why services to a capabilities app. continue experience also to to XX% we roll grow our event where demand but

transition is the take underlying do that think to noisy. our marketplace but know want So of our second? impacts has you near-term again, strong metrics, been health we the improving. there Lanny, the We are to and

Charles Baker

see may the not function we business. you'll is And what ticketing think may the is is about core And the we talk et fees the I one take can do, you're that cetera. of rate stability the take really our activity, take are I that of quarter. fourth the rate looking get rate. into Number question on There Sure. refund or on a ticketing components there. as discounting that X

take of XX% X% sorry, year between our -- are activity, X% neighborhood participating year where driver a basis it's And in to or today ads, is X% of or And a per turn the ago, advertising see fees of or the creator the On had our on of second growth X% we Eventbrite we a per of of XX% on see GTS and Eventbrite we GTS participating we our ads. or in rate marketplace ago. when Today, in or gross revenue the ads our customers product. XX%. about typically ticket a of lift XX% was event

third continuing ads the to a creator for with product big really per because Eventbrite from creators success difference event expect that take and in -- between to quarter. were basis. second be So, rate is biggest fourth to quarter, in quarter. and in down important we drive a the the and as driver organizer quarter uptake fees said the and on fourth and we a quarter be the Organizer penetration then third of And long-term the were in the the our it's before, $X in be million step-up finally, will take per where or them the they additional rate $X fees, million which will

the basis on But provide a should quarter-to-quarter So on in an bit take little very continue and dynamics remain the of be rate. will unwind that other place to strong. a fully

Looking we further is future, the there opportunity premium services. believe for into

up and quarter. But will additional specifically Our about question an subscriber is be Pro holding that the base fourth longer-term plan your was driver. well,

that's hopefully, helpful. So

Operator

from Khan from Securities. next B. Naved question Your Riley coming is

Unknown Analyst

It's for Ryan on Naved.

there trends million in you difference an was it there daily ask a changed category between? quarter, has guidance TikTok. that wanted specifically event some I XXX And you benefiting to saw about that understand So, I to also if was if that impressions. or at was wanted And all. gave then last

Julia Hartz

Absolutely.

them we felt to They to them which person TikTok of Scouts. work of And be. as is right several allow creators So they're out consumer and with partners the time more around the consumer, event the wherever and right we've in natural social our we to Social that put of at searching share are the one market front really XX-year-olds, of seen, may partnership XX- of platforms. they take eyeballs. more events distribution to that target it for is was most benefit right call on searching We

to are Post. so, on allow to and embed And we listing creators allow or native to video, a with an to TikTok integrated TikTok on for for embed link anyone event actually

We're be that encouraged for other for up we live remained experiences do. really daily to organic to so, the event search fair gain stable. work we looking advertising how by to on both served the the we're and And how places, a relatively organically on and and amount seeing. TikTok leverage to perhaps new impressions ways things continuing quarter have with audience people listings our a And events. can that last TikTok community paid can we're reported remain are doing other confident able education through really And to what TikTok, and of they community be also their and reach for creator traction in

that they're would really that see on getting to to of be consumer. terms you categories categories lion's of it that In really Eventbrite our see we share know we the the think for attention popular TikTok, core it's -- on surprising don't I

among growth our events. food seen community marketplace. through being in this relatively and So, culture popular remain categories music the chief them, strong categories Those drink have and events, and period most

Operator

This everyone. today's you, event. Thank concludes

a have disconnect and for may you wonderful participation. time, your day. at this Thank You

Eventbrite (EB) 7 Nov 242024 Q3 Earnings call transcript