Can Eventbrite Stock Recover?

Eventbrite, Inc. (NYSE:EB) was one of many companies that adapted to survive the pandemic. Now that the world has found its post-pandemic normal, Eventbrite has transformed again.

It has adjusted its business model to seize the opportunity presented by live events’ revival. Today, this efficient event management system is a critical partner for event planners in search of easier ways to organize, advertise, and manage physical and virtual events. The platform hosted more than five million events in almost 180 countries last year.

Eventbrite isn’t just for event planning – it also offers advanced marketing tools and resources. Many clients turn to Eventbrite because of its ability to use data for the optimization of marketing and ticket sales.

The social media marketing, email campaign, and real-time analytics features available on the Eventbrite platform enables organizers to broaden their hosting reach – and that has increased Eventbrite’s top line results. 

Since the elimination of COVID-19 constraints, many events have charged higher ticket prices that reflect the increased demand for live shows. Eventbrite has seen average ticket prices rise by 11% from 2021 to 2022. Fortunately, patrons have been willing to pay for the opportunity to enjoy a live experience, and Eventbrite has been rewarded with growth in revenues. 

In addition, Eventbrite has updated the platform to make it possible for organizers to host online and hybrid events, expanding their opportunity to attract new clients. The platform connects effortlessly with key streaming services to make the organization of virtual functions as simple as managing live events. 

The upgrades made to the Eventbrite system consider current social and entertainment trends to deliver the resources consumers want. In short, the platform’s versatility makes it highly effective in its mission to “bring the world together through live experiences.”

So what does all that mean for the stock and will it bounce back?

Accelerated Strides Toward Profitability

Eventbrite’s reinvigorated strategy and disciplined cost management measures, as well as consumers’ renewed interest in live events, have put the company on the right path for achieving solid profitability. In the first quarter of 2024, Eventbrite’s net revenue increased by 11% year over year to $86.3 million. 

Another significant demonstration of Eventbrite’s improving position is its adjusted EBITDA, which has gone up from $2.1 million in Q1 2023 to $10.4 million in Q1 2024. This metric identifies core earnings potential and fundamental profitability. It is also worth noting that the company’s net loss narrowed to $4.5 million, a dramatic improvement over the net loss of $12.7 million for the same period in 2023.

Eventbrite has made it a point to diversify its revenue sources so as to better protect the company from risk. Marketplace-related revenue from organizer fees and Eventbrite Ads grew to over 13% of total net revenue. This approach means decreased reliance on ticket sales alone, which improves the organization’s financial stability.

Eventbrite’s gross margin was notably higher in the first quarter of 2024. It came in at an impressive 71% as compared to 66.1% a year ago. This improvement resulted from a decrease in the cost of net revenue, which went from $26.4 million to $25 million.

The combination of financial advances, restored consumer desire to attend live events, and sound operational tactics suggest that Eventbrite is poised to achieve lasting profitability. These advantages are strengthened by the company’s thoughtful strategic shift and diversification of services. 

Eventbrite expects second-quarter 2024 revenue to come in between $84 million and $87 million. Full-year 2024 revenue is projected to fall into a range of $360 million to $371 million, and the adjusted EBITDA margin is expected to be in the low- to mid-teens for the year.

What Is Eventbrite’s Growth Plan?

Eventbrite is a leader in the global market when it comes to live events, and its popularity as a virtual event organization platform is growing. The company’s goal is to offer a wide selection of local events customized to users’ interests and to make managing those events as easy as possible for hosts. 

In short, the Eventbrite strategy is to develop a best-in-class live events space as measured by these key factors:

First, the company is committed to expanding on its existing strengths in creating, building, and sustaining a trusted brand by providing a valued, reliable, two-way marketplace for creators and consumers.

Management has indicated that it aims to reinforce brand trust by offering continued access to popular events and performers and convenient ticketing processes, in addition to maintaining a long-term relationship with creators and customers.

Eventbrite intends to inspire trust throughout the consumer journey with personalized event recommendations, enhanced customer support, and protection from fraudulent events. It will also seek the trust of creators by providing them with a premium-level experience in terms of product use, demand for events, and the assurance of timely and accurate payments.

Second, the company is placing more emphasis on tools to assist consumers in searching for and discovering live events.

The platform will present users with personalized live event suggestions to drive sales and increase consumer satisfaction. To that end, Eventbrite uses artificial intelligence, machine learning, and human curation to match events with interested audiences and improve the chances of users finding events they would like to attend.

Finally, the goal is to grow its geographical network and increase the number and variety of events offered. It is working to introduce new customers and producers to the Eventbrite market while simultaneously driving value for existing patrons. 

Building on top of advanced technologies to improve event management ties in with Eventbrite’s vision for the future. Specifically, the company aims to enhance its events portfolio, focus on key service categories, expand existing event offerings, and add events with broad appeal in big cities and countries around the world.

Eventbrite has proven that its strategy has merit. In 2023, the company issued more than 300 million tickets in its global marketplace, which generated more than $3.5 billion in gross ticket sales for the year.

Can Eventbrite Stock Recover?

Eventbrite can recover and soar to $8.74 per share according to the seven analysts covering the marketplace firm.

Eventbrite’s strategy to grow its operations and enlarge its catalog of events is likely to attract new consumers and producers to the platform, propelling overall growth.

The stock has experienced downward pressure, as reflected in the more than 57% drop in share price over the past twelve months. This has been attributed to investor concerns regarding bottom-line losses.

Eventbrite stock is currently trading at just 1.4x trailing twelve month sales, a low revenue valuation multiple. With a little improvement on the bottom line, the future may well look bright for investors at this time, certainly analysts believe so.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.