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Eventbrite Inc. reported its second-quarter 2025 earnings, revealing a narrower-than-expected loss, but the company’s revenue fell short of forecasts. The company posted an earnings per share (EPS) of -$0.02, outperforming the anticipated -$0.09, marking a significant 77.78% positive surprise. Despite this, revenue came in at $72.8 million, slightly below the forecast of $73.49 million, representing a 1.01% miss. Following the earnings release, Eventbrite’s stock fell 10.16% to $2.21 in after-hours trading, reflecting investor concerns over revenue shortfalls and market conditions. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation, though the company’s overall financial health score remains "FAIR" at 2.33 out of 5.
Key Takeaways
- Eventbrite’s EPS beat expectations by 77.78%, narrowing the loss to -$0.02.
- Revenue fell short by 1.01%, with a 14% year-over-year decline.
- Stock dropped 10.16% in after-hours trading despite the EPS beat.
- The company reduced operating expenses by 16% year-over-year.
- Eventbrite launched new products and expanded its market presence.
Company Performance
Eventbrite’s performance in Q2 2025 demonstrated both strengths and challenges. The company managed to exceed EPS expectations, showing improved efficiency and cost management. However, the 14% year-over-year decline in net revenue and a 7% drop in paid ticket volume indicate challenges in revenue growth. The company continues to position itself as a leading player in the live experience market, leveraging its innovative tools and marketplace.
Financial Highlights
- Revenue: $72.8 million, down 14% year-over-year.
- Earnings per share: -$0.02, better than the forecast of -$0.09.
- Gross Margin: 67.5%, a 60 basis points improvement from Q1.
- Adjusted EBITDA: $6.4 million, representing an 8.8% margin.
- Cash and Equivalents: $538.5 million.
Earnings vs. Forecast
Eventbrite’s EPS of -$0.02 significantly outperformed the forecast of -$0.09, representing a 77.78% surprise. This marks a positive deviation from previous quarters, highlighting the company’s ability to manage costs effectively. However, the revenue miss of 1.01% compared to the forecast of $73.49 million raises concerns about growth trajectory.
Market Reaction
Despite the positive EPS surprise, Eventbrite’s stock fell 10.16% to $2.21 in after-hours trading. The decline reflects investor apprehension about the company’s revenue performance and broader market conditions. The stock’s movement places it closer to its 52-week low of $1.81, indicating bearish sentiment.
Outlook & Guidance
Looking ahead, Eventbrite projects Q3 2025 net revenue between $70 million and $73 million. For the full year, the company expects revenue to range from $290 million to $296 million. The company has raised its full-year adjusted EBITDA margin outlook to approximately 7%, signaling confidence in its operational efficiency.
Executive Commentary
Julia Hartz, CEO, remarked, "We’re exiting 2025 with real momentum," emphasizing the company’s strategic positioning and market opportunities. Anand Gandhi, CFO, highlighted, "Our continued progress in reducing operating expenses is driving structural improvements to our cost base."
Risks and Challenges
- Revenue growth challenges amid a 14% YoY decline.
- Market volatility affecting stock performance.
- Competition in the live events market.
- Dependence on recovery of live events industry.
- Potential macroeconomic pressures impacting consumer spending.
Q&A
During the earnings call, analyst Clay Li inquired about July performance and creator trends. Management noted near-flat paid creator and ticket volume in July, while discussing strategies to attract larger creators and enhance platform capabilities.
Full transcript - Eventbrite Inc Class A (EB) Q2 2025:
Conference Operator: Greetings, and welcome to Eventbrite’s Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are on a listen only mode and a question and answer session will follow the formal presentation. And please note, this conference is being recorded. I will now turn the conference over to your host, Megan Manister, Investor Relations. Ma’am, the floor is yours.
Megan Manister, Investor Relations, Eventbrite: Good afternoon, and welcome to Eventbrite’s Second Quarter twenty twenty five Earnings Call. My name is Megan Manister, Investor Relations. With us today are Julia Hartz, our Co Founder and Chief Executive Officer and Anand Gandhi, our Chief Financial Officer. As a reminder, this conference call is being recorded and will be available for replay on Eventbrite’s Investor Relations website at investor.eventbrite.com. Please also refer to our Investor Relations website to find our press release announcing our financial results, which was released prior to the started, I would like to remind you that during today’s call, we’ll be making forward looking statements regarding future events and financial performance.
We caution that such statements reflect our best judgment as of today, August 7, based on the factors that are currently known to us and that actual future events or results could differ materially due to several factors, many of which are beyond our control. For a more detailed discussion of the risks and uncertainties affecting our future results, we refer you to the section titled Forward Looking Statements in our press release and our filings with the SEC. We undertake no obligation to update any forward looking statements made during the call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law. During this call, we’ll present adjusted EBITDA and adjusted EBITDA margin, which are non GAAP financial measures. These non GAAP financial measures are not prepared in accordance with generally accepted accounting principles and have limitations as an analytical tool.
You should not consider them in isolation or as a substitute for analysis of our results of operations as reported under GAAP. A reconciliation to the most directly comparable GAAP financial measure is available in our investor presentation, which is available on our Investor Relations website. We encourage you to read our investor presentation, which contains important information about GAAP and non GAAP results. And with that, I’ll now turn the call over to Julia.
Julia Hartz, Co-Founder and Chief Executive Officer, Eventbrite: Thanks, Megan, and good afternoon, everyone. We delivered a strong second quarter, outperforming on the bottom line and continuing to improve our core ticketing trends. Net revenue came in at $72,800,000 which was at the high end of our outlook. Eventbrite ads had another standout quarter accelerating from Q1 and our paid ticket volume trends continued to improve. At the same time we kept a sharp focus on costs and delivered on an adjusted EBITDA margin of 8.8%, which was well above our expectations.
Together, these results show that our strategy is working and that we’re making meaningful progress toward returning to growth. We started the year focused on stabilizing our core ticketing business, and in q two, we made measurable progress. Year over year declines in paid creators, paid events, and paid ticket volume all improved compared to q one, which is evidence that the recovery is gaining momentum. The positive trends we saw in q two gained significant momentum as we entered q three. While we’ll provide a more detailed update in our next call, we’re encouraged by the initial signals we saw in July.
As a proof point of our stabilization, paid creators and paid ticket volume were very close to flat year over year in July. This is a powerful signal that our recovery is taking hold, and it reinforces our confidence that we’re on a clear path to resume paid ticket growth as we exit the year. While paid transacting creator volume is improving in line with expectations, the average number of paid tickets sold per creator is lower than we anticipated. We view this as a short term mix issue. We’re addressing this with product and go to market support to lift productivity and drive higher ticket volumes in the back half of the year.
Anand will cover in more detail how this impacts full year revenue expectations. In addition to growing ticketing revenue to strengthen our business and sharpening our operating discipline to increase productivity, we’re advancing the long term strategy that will power durable momentum on both sides of our marketplace and accelerate the flywheel between creators and consumers. Starting with the creator side of our marketplace, we’re continuing to deliver powerful tools that drive measurable value for the supply side, helping creators reach more fans, sell more tickets, and grow their businesses on Eventbrite. In late June, we launched Lineup, a new tool built for music organizers and venues to better showcase their events and attract fans across top discovery platforms. Creators can now add rich artist profiles to their listings and automatically publish them in places like Spotify, fans in town, and Google, making it easier for fans to find and connect with the events they love.
We’re also seeing strong momentum with the Bemprite ads. Since launching in 2022, this product has become a key growth lever, not just for us, but also for our creators. It’s now a meaningful driver of high margin revenue and a clear signal of the platform’s ability to grow audiences for both paid and free events. Over the past year, we’ve dramatically reduced the cost of high intent ad clicks and expanded the product beyond The US to The UK, Canada, and Australia. Adoption continues to grow as more creators see great results.
One example is Ramen Music Events, a Caribbean based organizer with events in New York and Miami. They’ve used Eventbrite Ads to build brand awareness, break into new markets, and drive real ticket sales. By shifting more of their marketing budget to Eventbrite ads, they saw a 19 x return on ad spend. That impact led them to double their investment and expand their campaigns, making ads a core part of their growth strategy. On the consumer side of our business, we’re raising the bar on discovery, especially through our newly relaunched app.
Our goal is simple. Connect people to great live experiences in a way that feels intuitive, inspiring, and fun. Since the relaunch, the app’s home feed has quickly become one of our most active discovery surfaces, second only to web search, and that engagement is translating into results. App conversion rates are up year over year, giving us a strong foundation to build on. We’ll continue investing in smarter event matching and deeper personalization to keep improving the consumer experience.
We’re also focused on attracting more consumers platform by expanding our inventory of large scale high impact event series, particularly immersive experiences. This type of serial format attracts big audiences and sets Eventbrite apart as the best place to discover what’s next in live entertainment. One standout example is Haunted Tavern, an interactive cocktail experience where guests are guided through ghost stories and spirits literally. Over the past year, they’ve sold more than a 150,000 tickets through Eventbrite and expanded to 380 cities. That’s the kind of magnetic experience that brings people back and we see a massive opportunity to grow this category.
As we advance our strategy with initiatives like these we’ve also sharpened our focus on financial discipline and that focus is driving results. In Q2 adjusted EBITDA margin improved by two sixty basis points from Q1 reflecting sustained cost control and more efficient execution. We’ve reduced overhead across the business and are directing spending for the areas with the greatest leverage. These actions are creating lasting operating efficiencies and positioning us to expand margins as we return to growth. That same discipline extends to how we manage capital.
This quarter we secured a new term loan that strengthens our liquidity and allows us to retire a significant portion of our outstanding convertible notes with cash. Together these steps materially improve our balance sheet and increase our flexibility for the road ahead. Anand will share more details in just a moment. I’ll end here by reinforcing that we’re exiting the 2025 with real momentum. The execution of our strategy is translating into stronger results.
Our disciplined approach is driving margin improvements and structural cost savings and we’re making progress that we believe will lead to sustained growth, stronger cash flow, and improved profitability. I want to thank our entire team for their focus, resilience, and commitment to delivering on our goals. And to our shareholders, thank you for your continued support as we build lasting value. And with that, I’ll turn it over to Anand.
Anand Gandhi, Chief Financial Officer, Eventbrite: Thanks, Julia. We delivered on our outlook for Q2 with net revenue at the top end of our guidance range and adjusted EBITDA margins significantly above expectations. We also made important progress against our goals, including further reducing expenses to drive margin expansion and also strengthening our balance sheet. Now I’ll go through our financials in more detail. Please note that all comparisons are year over year, unless indicated otherwise.
Net revenue declined 14% to 72,800,000.0 which was at the high end of our outlook range. The decrease is due to both a 10% decline in ticketing revenue and significantly reduced Marketplace revenue, primarily due to the elimination of organizer fees. This was partially offset by a strong performance from Eventbrite ads, which grew an impressive 50%. Paid ticket volume was $19,700,000 for the quarter, a decline of 7%, reflecting an improvement of 40 basis points compared to Q1. Importantly, as Julia mentioned, in July, we saw trending improvement accelerate significantly, with paid ticket volume down only 1% year over year.
We’re encouraged by this early signal and look forward to providing a complete update on the full quarter when we report Q3 earnings. We’ve seen consistent sequential improvement in year over year trends in paid creators, paid events and paid tickets since eliminating organizer fees in September 2024. This positive momentum has been partially offset by a shift in our marketplace. We’re seeing a faster return of small scale creators and events than with our larger, higher volume creators. This has led to fewer tickets sold per creator than we had initially anticipated.
I’ll provide more context on how these trends impact our outlook in a moment. Gross margin of 67.5% improved by 60 basis points from Q1. This was driven by the strong performance of our high margin ads revenue. This was lower than last year’s 70.9%, which had benefited from high margin organizer fees that have since been eliminated. For this quarter, our gross profit was a solid 49,100,000.0 Now turning to operating expenses.
We continue to focus on efficiency, with OpEx declining 16% year over year to $55,400,000 Q2 OpEx reduced even further by 22% when excluding a one time $4,400,000 litigation settlement benefit in the prior year on a non GAAP basis. This marks our sixth consecutive quarter of operating expense reductions. We sharpened our focus on the bottom line by pursuing structural improvements to our cost base, and we expect these actions will deliver sustainable benefits for the company. Looking more specifically at our OpEx buckets, Product development was down 30 from $26,100,000 to $18,200,000 Sales, marketing and support was down 17% from $24,500,000 to 20,400,000.0 G and A of $16,900,000 was up 7% due to a one time $4,400,000 litigation settlement benefit in the prior year. G and A decreased 16% when excluding this prior year one time benefit.
Within our overall OpEx, we also achieved a 51% reduction in stock based compensation from $15,300,000 to $7,500,000 through deliberate and careful equity management. Q2 net loss of $2,100,000 compares to a net income of $1,100,000 in the prior year, primarily due to a one time $8,300,000 litigation settlement gain recognized in Q2 twenty twenty four. Excluding this gain, Q2 net loss improved year over year. Adjusted EBITDA was $6,400,000 in Q2, representing an 8.8% adjusted EBITDA margin, well ahead of our outlook. This included a modest benefit from an adjustment to annual incentive compensation expense.
Now turning to the balance sheet. We ended the quarter with cash, cash equivalents and restricted cash of $538,500,000 Our available liquidity stood at $248,000,000 an increase of $7,000,000 from the end of Q1. We’re also pleased to share two significant developments that further strengthen our financial position. First, we’ve secured a new $60,000,000 term loan to proactively bolster our balance sheet and provide additional liquidity in preparation for fully retiring our convertible notes outstanding in September 2026. This term loan provides us with greater financial flexibility and security for the next four years and an attractive cost of capital of SOFR plus two fifty basis points.
Second, we’ve reached agreements to repurchase $125,000,000 of our total $213,000,000 September 2026 converts, below par at $0.94 on the dollar. We also plan to retire the remaining $30,000,000 outstanding of our twenty twenty five converts this December, after which the remaining $88,000,000 of our 2022s the new $60,000,000 term loan will represent our only debt outstanding. Now I’ll provide some context on how we’re thinking about outlook. As Julia mentioned, we have seen consistent sequential trending improvement in paid creators and paid tickets, which has accelerated significantly in July. Our paid creator volume is now recovering in line with our expectations.
However, average tickets sold per creator has been slower to recover. This shift towards smaller events and lower volume creators returning ahead of larger ones has created a gap to our initial revenue outlook for the year. Despite this, our recovery continues to build momentum, and we view this as a short term mix issue that we’re proactively addressing. Let me walk you through how we’re executing here. First, on the marketing front, we’re prioritizing high value self sign on creators.
We’re driving quality traffic to the most compelling events, boosting visibility where we know demand is greatest. Second, in sales, we’re targeting large creators in key verticals and helping them scale by upselling ads. This allows us to unlock incremental demand and monetize it more effectively. Third, our product team is helping creators better leverage our marketplace. We’re empowering our creators with smarter tools to grow their audience and revenue, things like demand generation, marketing automation, and insights that help increase ticket sales.
We’re also focused on increasing adoption to help more creators leverage these tools to drive growth. Specifically, we’re investing in three high impact product areas. First, consumer discovery tools. Second, ads and premium email campaigns and third, paid social advertising to extend reach beyond Eventbrite. Together, these actions reinforce the unique value we drive for our creators through the flywheel of our two sided marketplace.
Now with this context, I’ll share more details on our outlook. For Q3, we expect net revenue between 70,000,000 and $73,000,000 and an adjusted EBITDA margin of approximately 7%, excluding non routine items. Looking at the full year, we expect to achieve monthly year over year growth in paid ticket volume by the end of the year, driven primarily by the strength we’re seeing in paid creators. Due to the mix shift we described earlier, we’re updating our full year revenue outlook to a range of $290,000,000 to $296,000,000 And importantly, as a result of our significant OpEx reductions, we’re raising our outlook for full year adjusted EBITDA margin to approximately 7%, excluding non routine items. Summing things up, our results demonstrate solid execution, delivering accelerated trending improvements in paid creators and paid events, along with greater operational efficiency.
Our continued progress in reducing operating expenses is driving structural improvements to our cost base and substantial margin expansion, positioning us to generate greater cash flow as we return to growth. This disciplined execution, combined with our strengthened balance sheet, provide us with a solid foundation for sustained profitable growth long term. Now we’ll open it up to your questions.
Conference Operator: Thank you. At this time, we will be conducting our question and answer And you may press star two if you would like to remove your question from the queue. One moment please while we poll for questions. Our first question is coming from Clay Li with JPMorgan. Your line is live.
Clay Li, Analyst, JPMorgan: Great. Thanks for taking the questions. I have two. The first one, you mentioned strong acceleration in paid creators and paid ticket growth in July. I’m just curious to hear what drove that and any reasons why that momentum cannot continue into the back half.
And then secondly, on the mix impact that you’re talking about from creators, are there any changes in the competitive or overall event landscape that might be affecting this as well outside of your focus on higher margin self sign on creators.
Julia Hartz, Co-Founder and Chief Executive Officer, Eventbrite: Great. Thanks, Dave. And thanks so much. I appreciate you joining the call and for your question here. So what we’re seeing in the business is in line with what we want to see in terms of recovery.
We’re watching the July as we wanted to give confidence in inflecting you know, in the monthly year over year growth later in the year is in that it’s being supported by the behavior of creators and consumers on the platform, not just the volume. So we are, you know, seeing the trends moving in the right direction. As you noted and as we shared on our call, paid creators return are about flat in July, and paid ticket volume was down just 1% year over year, which is a sharp improvement from the q two run rate. And that’s just not a projection. That’s actual performance.
So it tells us the recovery is progressing and the inflection point is approaching. Second is that we’re controlling what we can to drive that growth. So we’ve put focused effort behind acquiring larger, higher volume creators through paid marketing, through brand development, and an expanded sales team that’s now more targeted and more productive. They’re focused on vertical format and metro. So we’re we’re seeing that increase the near term performance of paid creators and we expect to see the lagging indicator pick up toward the back half of the year in paid ticket volume.
We’re also seeing success with more consistent upselling motion that’s driving greater adoption of Eventbrite ads, and that matters because it’s helping creators sell more tickets while also increasing our monetization. And the final thing I’ll say is that our product investments are designed to drive exactly this kind of growth starting with the creator and helping them expand their business. So we’re improving consumer demand through better discovery and personalization. We’re expanding marketing tools that help creators grow their audience, and we’re delivering insights that help them optimize the performance of their marketing and promotion as well as as giving them insights into how their events are selling, especially for our repeat customers who are able to compare year over year. So these improvements that I just mentioned are already live, and the adoption is building.
I think while there’s still work ahead, the combination of this real time improvement that we’re signaling for July and, you know, the and the proactive execution gives us the confidence that we’ll reach that inflection, and we’re on a solid path to sustain it. Where we in the course of Q2 saw some divergence in these main metrics is The recovery of tickets per creator is lagging slightly behind the recovery of creators. And that’s what I think is driving a bit of that delayed improvement than what we had originally anticipated. And you also asked if there was a change in the overall landscape. We don’t see a massive shift in the landscape.
We think that, you know, Eventbrite is well positioned within the mid market, and we are the number two largest trafficked live experience and ticketing destination out there. We think that we’re able to compete against many smaller players as well as larger platforms with our product, focusing on helping creators build their businesses on Eventbrite and sell more tickets. Our marketplace, helping to drive nearly 40% of the ticket volume through our targeted consumer efforts. And third, through our our brand affinity and the ubiquity that Eventbrite has with live experiences. We see some really interesting secular tailwinds in live events as people are wanting to get out more and be in real life together and we see the clear connection and opportunity and we have a proven track record of using new technology and the adoption of technology to actually drive those trends of getting together in real life and connecting through experiences.
Clay Li, Analyst, JPMorgan: Got it. Thank you.
Conference Operator: Thank you. As we currently have no further questions on the lines at this time, this will conclude today’s call. You may disconnect your lines at this time, and have a wonderful day. And we thank you for your participation.
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