Eventbrite percentage fee6/4/2023 That strategy forces it to compete with well-entrenched, powerful companies like Ticketmaster (LYV) and StubHub (EBAY). For Eventbrite’s up-selling strategy to be successful, revenue growth needs to be significantly positive, not negative.Įventbrite’s other growth strategy is to move upmarket and sign up larger creators. In 2017, the revenue from existing creators declined by 3% year over year. Just 71 million (35%) of the 203 million tickets issued through Eventbrite in 2017 generate revenue.Įventbrite claims it will generate significant profit growth by (a) converting its existing free creators to paid, and (b) growing the revenue from its existing paid creators, but it has yet to do so. The majority of its creators host small events, many of which are free. Similar to Dropbox, Eventbrite has built a customer base that is large but not particularly profitable. However, that 95% of creators accounts for just 54% of revenue, which means that the remaining 5% of creators that Eventbrite signs up through direct sales efforts account for 46% of its revenue. Unprofitable Customers Are A Long-Term ProblemĮventbrite has successfully attracted creators through word of mouth, as 95% of its creators signed themselves up for the platform directly. With only two years of history, it’s difficult to draw any firm conclusions about the trend in the business, but our adjustments show that the company moved significantly closer to profitability in 2017. $2.7 million (1% of revenue) in impairmentsĪfter these adjustments, I removed net $26.6 million in non-operating expenses in 2017, which resulted in economic losses being 49% lower than GAAP losses.$7.3 million (4% of revenue) in acquisition related costs. $21.9 million (11% of revenue) in charges related to tax reform.In 2017, Robo-Analyst uncovered non-operating items, such as: Adjusting to remove these non-operating items reveals the company’s narrowing losses. Non-operating items overstated Eventbrite’s GAAP losses in 2017, which masked the fundamental improvement in the business.
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