Eventbrite Needs To Find Acquisitions

According to an IBIS World report, the online event ticket sales in the US market are expected to grow 6% to $10.3 billion this year. San Francisco-based, Eventbrite (NYSE:EB) recently reported its third quarter performance that delivered mixed results.

Eventbrite’s Financials

Revenues for the third quarter grew 11% over the year to $82.1 million, ahead of the market’s estimated $77 million. GAAP net loss was $30.2 million, or $0.36 per share, compared with $35.5 million, or $1.24 a share a year ago. On an adjusted basis, loss was $0.34 per share, significantly worse than the Street’s estimated loss of $0.26 per share.

Among key metrics, Paid ticket volume grew 13% to 26.9 million driven by growth in their Self Sign-On channel which reported a 23% improvement over the year.

Eventbrite forecast revenues of $75-$79 million for the fourth quarter and revenues of $319-$329 million for the year. The company does not anticipate to turn profitable in the current year. The Street was looking for revenues of $76.28 million with a loss of $0.20 per share for the quarter and revenues of $315.26 million and a loss of $0.77 per share for the year.

Eventbrite’s Growth Focus

Eventbrite is looking to drive market expansion by improving functionality for the venues. To help cater to the needs of the large market of high-value creators who operate venues and host frequent events, it recently introduced improvements to its reserved seating functionality. The changes have made it easier for creators to build custom floorplans and for attendees to select specific seats on the web or from their mobile devices. These improvements have helped accelerate the platform speed as well. Eventbrite believes that these capabilities will help it attract venue-based and high-frequency creators to its platform.

Eventbrite is leveraging data analytics and machine learning capabilities to improve pricing for its creators. By providing creators with access to real-time data on ticketing and attendance, creators can take decisions that impact their event pricing. Recently, it allowed creators using their Essentials and Professionals packages in the United States, Canada, Australia and the United Kingdom to get access to personalized pricing insights that help them price events more intelligently to maximize ticket sales and revenue.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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