Eventbrite (EB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 7% year-over-year to $84.6 million, driven by marketplace revenue growth and improved take rate, but paid tickets declined 9% to 21.2 million due to pricing model changes and a shift to a two-sided marketplace.

• Net income reached $1.1 million, reversing a prior year loss, aided by an $8.2 million legal settlement and improved gross margin.

• Adjusted EBITDA was $12.8 million, including a $4.4 million legal settlement benefit and $0.1 million in restructuring costs.

• Announced a workforce reduction of about 100 positions (~11%), expected to save $30 million in annualized operating expenses by Q3 2024.

• New pricing, packaging, and event creation flows introduced, including a free tier and premium marketplace offering to address diverse creator needs.

Financial highlights

• Q2 2024 net revenue: $84.6 million, up 7% year-over-year; gross profit: $59.9 million, up 10%.

• Gross margin improved to 71% from 69% a year ago.

• Adjusted EBITDA: $12.8 million, margin at 15%, up from 14% last year.

• Net income: $1.1 million; net income margin: 1% vs. -4% last year.

• Cash and cash equivalents: $575.5 million as of June 30, 2024; long-term debt: $358 million.

Outlook and guidance

• FY 2024 revenue expected between $318 million and $325 million, revised due to lower paid ticket volume and pricing changes.

• Q3 2024 revenue expected between $74 million and $77 million.

• Full-year Adjusted EBITDA margin expected at 10%, excluding restructuring costs.

• Up to $7 million in Q3 restructuring expenses anticipated.

• Paid ticket volume expected to remain soft, with only modest uplift anticipated from the new free tier.