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Eventbrite’s Revenue Growth Expected To Soar Amid Analyst Upgrade

Analyst predicts significant margin expansion and 20% annual revenue growth for Eventbrite

Eventbrite is an American event management and ticketing website. The service allows users to browse, create, and promote local events. The service charges a fee to event organizers in exchange for online ticketing services, unless the event is free. Launched in 2006 and headquartered in San Francisco, Eventbrite opened their first international office in the United Kingdom in 2012. The company has local offices in Nashville, London, Cork, Amsterdam, Dublin, Berlin, Melbourne, Mendoza, Madrid, and São Paulo. The company went public on the New York Stock Exchange on September 20, 2018, under the ticker symbol EB as reported on Wikipedia.

In 2022, the firm experienced significant losses. By June 2022, the firm’s hedge fund and its long-only fund had respectively declined 52% and 62% in value since the beginning of the year. The Wall Street Journal and Financial Times reported that these losses eliminated some two-thirds of the value accrued by the hedge fund and the long-only fund over the duration of their existences, while New York cited research indicating the losses could account for three-fourths of lifetime gains. The Wall Street Journal has referred to the hedge fund’s loss as “one of the largest-ever”, and an anonymous hedge fund manager quoted by New York referred to the losses as “[…] the biggest in the history of hedge funds”.

In June, the firm’s venture capital losses were reported to be less severe than those of the firm’s funds. A letter to investors from Tiger summarizing the performance of its venture funds in the first quarter of 2022 revealed that losses associated with the funds stood at around 9%.

On August 23, 2018, the company filed for a $200 million IPO. The company’s biggest shareholder is Tiger Global Management with Sequoia Capital and the Hartzs also owning significant shares.

“Shares of Eventbrite Inc (NYSE: EB) spiked in early trading on Thursday, ahead of the release of the company’s quarterly report next week. With operational improvements, the company is heading toward a margin inflection,” said KeyBanc Capital Markets.

Eventbrite logo. The scaling of demand generation products “creates a flywheel” that supports more than 20% of the company’s annual revenue growth through 2025. GOOGLE. 

The Eventbrite Analyst Justin Patterson upgraded the rating for Eventbrite from Sector Weight to Overweight, while keeping the price target unchanged at $14.

The scaling of demand generation products “creates a flywheel” that supports more than 20% of the company’s annual revenue growth through 2025 and “meaningful margin expansion,” Patterson said in the upgrade note.

“In mid-June, Eventbrite disclosed its Boost and Ad products had reached an $11M annualized revenue run rate, up from $8M in 1Q23 and $6M in 4Q22, and as this product scales, it will benefit the company’s ticket volumes, take rate, and margins,” the analyst wrote. 

“Given the scarcity of SMID-cap Internet businesses with product catalysts, 20%+ growth, a path to 20% margins, and no major competitive threats, we find risk/reward attractive,” said Patterson.

EB Price Action: Shares of Eventbrite had risen by 8.26% to $10.62 at the time of publication Thursday.

Produced in association with Benzinga

Edited by Eunice Anyango Oyule and Judy J. Rotich

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