2024-04-18 21:56:08 ET
Summary
- Eventbrite has implemented new fees for event organizers, driving double-digit revenue growth in the short term but potentially leading to more churn in the long run.
- Paid ticket volumes on the platform are declining, reflecting fewer events, creators, and buyers.
- Eventbrite faces competition from other online ticketing platforms. Though trading at a cheap valuation, there are many risks at play.
Amid softer macro trends across the globe, many companies have taken to one overarching strategy for solving top-line pressures: increased pricing. I’m generally wary of this strategy as a lever to chase long-term revenue growth, as price increases are more of a one-time driver that fades from a y/y growth perspective as soon as the price increase is lapped....
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Eventbrite: New Fees Could Spell Risk (Rating Downgrade)