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Julia noted that in Q3, revenue was in line with the outlook. There was a solid sequential improvement in paid tickets, and Eventbrite Ads revenue grew significantly. The adjusted EBITDA margin was well above the guidance due to structural cost actions. The company has been investing in areas like creator acquisition, event discovery, etc. For Q4, the outlook reflects steady operational progress but has some near-term factors tempering top-line growth. This year, Eventbrite has strengthened reliability, reporting, and foundational systems, improved user experience, launched a refreshed consumer app and brand, advanced trust and safety. In 2026, the product roadmap includes integrating AI-powered recommendations throughout the event creation journey for creators, expanding offerings for larger creators, enhancing consumer experience with more personalized recommendations, and expanding globally with more payment options and expanded creator tools.

For Q4, Eventbrite expects net revenue to be between $71.5 million and $74.5 million and an adjusted EBITDA margin of 8% to 9%. For fiscal year 2025, the company anticipates net revenue between $290 million and $293 million and an adjusted EBITDA margin of 8% to 9%. It is expected to return to monthly year-over-year paid ticket volume growth within the first few months of 2026 and to return to quarterly year-over-year growth for paid tickets, ticketing revenue, and total net revenue by Q2 of 2026.

In Q3, Eventbrite achieved a net revenue of $71.7 million. Eventbrite Ads revenue saw a year-over-year growth of 38%. Paid ticket volume totaled $19.1 million, which was down 3% year-over-year but showed a sequential improvement compared to the 7% decline in the previous quarter. Gross margin was 67.9%, a decrease of 60 basis points year-over-year but a 40 basis points sequential improvement from Q2 due to the growth of high-margin Eventbrite Ads. Operating expenses were $49.6 million, down 20% year-over-year, with Q3 operating expenses being the lowest in 4 years. Adjusted EBITDA was $8.4 million, up 58% year-over-year, with an adjusted EBITDA margin of 11.7%.

Q: You've made some really nice progress this year with stabilizing creators and improving the cost structure. As you look ahead, how are you thinking about the right level of investment to build upon that and drive that return to growth you just outlined in 2026?

A: Anand Gandhi responded that they are focused on balancing cost reduction in a disciplined way and reallocating funds to areas that can drive growth, like performance marketing and product features, aiming to keep operating expenses in line while funding growth.

Q: Justin Patterson asked about how GenAI influences the pace of product innovation for both creators and consumers. Julia Hartz replied that investments in 2026 are in four areas: premium tools for larger creators, using AI to drive creator success, enhancing consumer engagement and personalization, and global and monetization expansion.

Q: Cameron Mansson-Perrone asked about Eventbrite fitting into the ticketing industry conversation and balancing monetization and consumer-friendliness. Julia Hartz stated that Eventbrite's principle is to democratize ticketing, focusing on fair prices, transparency, and helping creators.

Q: Cameron Mansson-Perrone also asked about the sequential gross margin improvement and EBITDA guidance. Anand Gandhi responded that they expect modest continued improvement in gross margin as ads revenue increases, with the trend continuing as ad revenue contributes more to total revenue.