Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Eventbrite Inc (NYSE:EB) delivered $73.8 million in revenue for Q1 2025, reaching the high end of their guidance.

• Paid ticket trends improved for the third consecutive quarter, showing a reduction in the year-over-year decline.

• Eventbrite ads revenue increased by 30% year over year, indicating strong adoption and effectiveness.

• The new Eventbrite app and brand campaign launched in Q1 received a strong consumer response, with app installs and paid tickets from the app increasing.

• Operating expenses were reduced by 14% year over year, reflecting financial discipline and cost management.

Negative Points

• Net revenue was down 14% year over year, primarily due to the elimination of organizer fees.

• Gross margin decreased to 67% from 71% a year ago, attributed to the removal of higher margin organizer fees.

• Net loss for Q1 was $6.6 million, compared to a loss of $4.5 million a year ago.

• Paid ticket volume was still down 7.7% year over year, despite improvements.

• The company is facing challenges in recovering the overall number of paid creators, although there is growth in specific segments.

Q & A Highlights

• Warning! GuruFocus has detected 1 Warning Sign with EB.

Q: Is the shift to more app-based Monthly Active Users (MAUs) an intentional strategy, and how does user behavior differ between creators and attendees using the app versus the web? A: Julia Hartz, CEO: Yes, the focus on app-based MAUs is intentional. App users are more retentive and engaging, being three times more likely to buy a ticket than web users. The redesigned app emphasizes simplification, discoverability, personalization, and social event discovery. Creators are being educated on optimizing their event listings in the app to enhance conversion rates.

Q: Is the current stock-based compensation (SBC) a good run rate for the remainder of the year? A: Anand Gandhi, CFO: Yes, the current SBC is a good run rate for the year. There might be some improvements, but this is likely the high end of the quarterly SBC for the year.

Q: What is driving the 30% year-over-year growth in Eventbrite Ads, and how does it compare to the core ticketing business? A: Julia Hartz, CEO: Eventbrite Ads are native to the marketplace, performance-driven, and creator-led, which helps in selling more tickets. The focus is on expanding high-intent placements, providing better ROI tools, and improving ad relevance. Ads are growing because they help creators sell more tickets, aligning with our strategy to scale marketplace monetization.