Ticketing and event management company Eventbrite is anticipating strong growth in the fourth quarter after posting double-digit increases in key financial metrics in its first trading update since floating on the New York Stock Exchange.
Eventbrite reported a net loss of $35.6m for the three months through to the end of September, nearly half of which was credited to anticipated stock-based compensation. Sales, marketing, product development and administrative costs related to going public also increased.
However, gross profit rocketed by 42% year-on-year to $42.2m on the back of a 45% increase in revenue to $73.6m, while paid ticket sales surged by 32.2% to $23.9m. Adjusted earnings before interest and deductions improved from $1m to $11.2m.
Net revenue of between $72m and $74m is anticipated for the final quarter of the year, representing a 16.4% rise year-on-year, according to chief financial officer Randy Befumo.
The net loss of $1.24 per share was below analysts’ expectations of 47 cents per share, according to CNBC. Even though Eventbrite’s share price fell sharply following the publication of the results, it had recovered to $30.90 by Friday afternoon – significantly higher than the IPO price of $23.
On top of the cost of acquiring customers, the company is also still being weighed down by the costs of its major acquisitions, such as its $200m purchase of Ticketfly from Pandora last year.
It should also be noted the company only went public 10 days before the end of the period.
Eventbrite announced last week that it has rebranded Ticketfly as Eventbrite Music to better capitalise on the visibility of its brands.
Image: 3844328 (Pixabay)
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