Eventbrite, Inc. Q3 FY2023 earnings call

Julia Hartz noted strong Q3 results with revenue and profitability growth, successful rollout of marketing tools. The new pricing model for creators was implemented, contributing $1.5 million in Q3 revenue. Lanny Baker discussed revenue of $82 million (up 21% year-over-year), gross margin at 69%, adjusted EBITDA $7 million, and strong balance sheet. They highlighted diversification of revenue profile, progress on restructuring (tracking to plan with total costs <$20M), and investment in product and marketing to improve unit economics.

Gross ticket sales reached nearly $900 million in Q3. Year-to-date transactions for creators totaled almost $3 billion. Revenue grew 21% year-over-year, with take rate over 9%. Demand generation and market-base related revenue exceeded 5% of net revenue. Total creators (including free event hosts) exceeded 395,000 in the quarter, paid creators grew 10% year-over-year to 185,000. Total paid events reached 561,000 in Q3, up 8% year-over-year. Revenue from Eventbrite ads was nearly $2 million, up over 40% from Q2 levels.

Lanny Baker stated Q4 revenue is expected to be in the range of $86 million to $90 million. Full-year 2023 revenue is anticipated to be between $324 million and $328 million. Adjusted EBITDA margins for 2023 are projected to be in the range of 12% to 13%, with a goal of reaching 20% adjusted EBITDA margin in 2024.

Factors that could shift results to the lower end of the outlook range include macroeconomic factors, reduced demand for events on the platform, and disruption from new fees and marketplace shift.

Q: Two If I can. First, it sounds like you're making a more concerted push on demand generation products into Q4 and beyond. How should we think about that influencing ticket volumes over the coming quarters once we do have more things like macro risk and geopolitical risk in play. And question two, just -- as we think about 2024, I would love for you to just revisit the factors to get to 20% operating margin or adjusted EBITDA margin during the course of the year...

A: Julia Hartz responded on demand generation push focusing on consumer demand and product-led growth, while Lanny Baker discussed factors like paid ticket volume growth, revenue mix diversification, and cost-effective relocations as key to reaching 20% margin...

Q: The kind of dovetail on Justin's question about the 20% growth expectation next year, the back half year, a lot of what appears to be driving the growth has really been the benefits that you've seen from some of your value-add tools, but I think mostly -- and you can correct me if I'm wrong, but I think mostly the price increase this year rolling through and really that combined impact on take rate and ARPU improvement...

A: Lanny Baker discussed the growth formula involving creator growth, events per creator, ticket per event, price per ticket, and take rate, noting next year's growth will shift focus to paid ticket volume and consumer growth