Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Eventbrite Inc (EB, Financial) reported a 7% year-over-year revenue growth to $84.6 million in Q2 2024.
- The company is rolling out new pricing packaging and streamlined event creation flows, which are showing promise in improving creator engagement.
- Eventbrite's recent win-back campaign brought over 140,000 paid tickets back to the platform in Q2.
- The company is introducing a free tier with no marketplace fees to attract new creators and reconnect with those who left due to pricing concerns.
- Eventbrite Ads revenue more than doubled year-over-year, reaching $2.9 million in Q2, with a 20% increase in advertisers from Q1.
Negative Points
- Eventbrite Inc (EB) experienced a 9% decline in paid tickets and a 16% drop in total tickets in Q2 2024.
- The new creator pricing model introduced last year has led to a reduction in creator count and ticket volume.
- The company is facing challenges with its revised revenue outlook, leading to a decision to reduce team size, impacting employee morale.
- Paid creators were down 7% compared to a year ago, affecting ticket performance.
- Eventbrite's implementation of organizer fees has disrupted creator acquisition and retention, leading to a downward revision of the business outlook for 2024.
Q & A Highlights
Q: How should we frame the revised outlook and what visibility do you have regarding the impact of recent changes?
A: Lanny Baker, Chief Financial Officer, explained that the prior outlook anticipated a recovery in paid ticket volume, but current expectations suggest a continued decline. The revised outlook includes a modest uplift from the introduction of a free tier, expected to be implemented within a month. Organizer fees will be reduced significantly by the fourth quarter, with a focus on a premium subscription tier offering enhanced marketplace visibility and support.
Q: What drove the decision to roll back organizer fees and simplify the fee structure?
A: Julia Hartz, CEO, stated that the decision was based on clear data and feedback from creators. The current structure was too complex and didn't align with the value delivered to creators, leading to churn and reduced ticket volume. The new structure aims to remove barriers and offer value through marketplace visibility and demand generation tools.
Q: Can you elaborate on the sales-driven creator growth and its impact on ticket growth?
A: Lanny Baker highlighted that the sales team targets strategic inventory based on consumer demand insights. New bookings through sales were up 60% year-over-year, with a focus on acquiring inventory in high-demand categories. The sales force has grown, and improvements in customer satisfaction and sales rep productivity have been noted.
Q: How are you planning to monetize the TikTok partnership?
A: Julia Hartz explained that the TikTok integration is a distribution partnership aimed at driving traffic to event listings. While not directly monetized currently, it enhances visibility and could be part of a premium tier in the future. The focus is on increasing ticket sales through enhanced exposure.
Q: What are the plans for the mobile app refresh and its expected impact?
A: Julia Hartz mentioned that the mobile app refresh is planned for the fall, focusing on simplicity, accessibility, and expanding creator event branding. The update aims to enhance consumer engagement and provide a better storefront for creators, leveraging increased consumer traffic and distribution partnerships.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
