StubHub (STUB) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Business overview and industry trends

• Operates the largest global secondary ticketing marketplace, with over 53 million tickets sold last year and $10 billion in gross merchandise sales expected this year.

• The ticketing industry has evolved, with consumers now focused on accessing live events regardless of primary or secondary channels.

• Live events remain resilient and in high demand, even as technology advances.

• North American live events and secondary ticketing have shown consistent double-digit growth, except during COVID.

• The company manages for long-term cash flow per share and prioritizes product and consumer experience.

Regulatory and pricing environment

• All-in pricing, showing total costs upfront, was implemented in May last year, causing a one-time 10% conversion hit but expected to benefit consumers and the business long-term.

• The impact of all-in pricing is expected to be fully lapped by Q3/Q4 this year.

• Regulatory efforts to cap resale prices are seen as ineffective, often leading to black markets and increased fraud.

• High-end concert tickets affected by potential price caps represent about 10% of gross merchandise sales.

Growth, market share, and financial outlook

• Holds close to 50% market share, having invested heavily to regain leadership after reacquiring the company from eBay.

• Now focused on harvesting gains, growing while expanding margins, leveraging network effects and scale.

• Guidance for 2024 is 8%-10% GMS growth and $400M-$420M EBITDA, with confidence in margin expansion due to operating leverage and take rate normalization.

• The World Cup is a strong event, factored into guidance, but not expected to be an outlier like Taylor Swift concerts.