Eventbrite, Inc. Q3 FY2024 earnings call

• Core ticketing business: Focus on attracting more creators and events. Pricing changes in September showed early signs of stabilization, with the expanded free tier showing impact. Paid events returned to year-over-year growth in the launch month. Creator acquisition, event volume, and ticket transactions are improving. • Product capabilities: Introduced timed entry, which has seen strong initial uptake among larger and more frequent creators. • Leadership update: Announced Anand Gandhi as new Chief Financial Officer, enabling Lanny to focus on COO role. • Consumer-centric brand: Focus on social scouts, building a managed marketplace, and expanding distribution, including TikTok partnership. Reimagined mobile app in live beta testing. • Sales and support: Sales team closed $4.5 million in new bookings, and support model transformed with 80% reduction in response times and 24/7 phone support for premium creators.

In the third quarter, Eventbrite reported revenue of $77.8 million. Ticketing revenue was 11% lower year-to-year. However, organizer fees and Eventbrite ads combined doubled in revenue. Non-ticketing revenues represented 12% of the quarter's total revenue. The total number of paid creators declined 12% year-over-year to 163,000, but events per creator increased 3% year-over-year, and the average ticket price increased 3% year-to-year to $40.30. Gross profit was $53.3 million, with a gross margin of 68.5%.

• Fourth quarter 2024 revenue expected to be within $74 million to $77 million. • Full year 2024 revenue expected to be within $322 million to $326 million. • Midpoint of full year revenue outlook range expects adjusted EBITDA margin, excluding severance costs and other non-routine items, to be approximately 10%. • Early planning for next year with factors like improved creator acquisition, new features, win-back campaigns, strategic inventory growth, and customer care enhancements providing encouragement.

Q: Could you provide more color on paid creators who left the platform during organizer fee transition, where they went, and effective initiatives to win them back?

A: Paid creators who left went to various homegrown solutions or start-up competitors. Winning them back is done through marketing channel activations, incentivizing reconnection with Eventbrite, and highlighting platform improvements like social integration with TikTok, enhanced service/support, and better end-to-end experience.

Q: How does the return of free tier impact paid creator growth into 4Q and take rate?

A: The free tier is showing early success in creator acquisition. On take rate, core ticketing take rate is stable, Eventbrite ads growth drives lift, and organizer fees will unwind quarter-to-quarter but other dynamics remain strong.

Q: About TikTok, any change in daily impressions and event categories benefiting?

A: Daily impressions reported last quarter remain relatively stable. Categories like music, food and drink, community and culture events have seen strong growth through TikTok integration.