EB - Eventbrite: Rocky Times For This Online Ticket Vendor

2024-07-07 08:47:29 ET

Summary

• Eventbrite increased pricing through new creator fees, resulting in higher net revenue per ticket but declining creator counts and paid ticket volumes.
• Eventbrite's valuation is compelling at <3x adjusted EBITDA, but churn risks are elevated as paid creators continue to decline.
• The stock is down ~40% year to date, but despite the compelling valuation I'd prefer to remain on the sidelines.

Amid more challenging macro straits this year, many companies have adopted a tried and true playbook to drive revenue growth: increasing pricing by a variety of means. For Eventbrite ( EB ), the online ticketing company that competes with the likes of StubHub and Ticketmaster, this meant introducing new creator fees, wherein event organizers now have to pay Eventbrite a fee for hosting an event and accessing its audience reach....

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