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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Eventbrite: Rocky Times For This Online Ticket Vendor