Please ensure Javascript is enabled for purposes of website accessibility

Why Eventbrite Stock Jumped Today

By Evan Niu, CFA - Nov 8, 2019 at 1:21PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The event booking platform reported third-quarter results and announced a reorganization.

What happened

Shares of Eventbrite (EB 2.26%) have jumped today, up by 20% as of 12:40 p.m. EST, after the company reported third-quarter earnings. The event tech specialist beat top-line expectations but missed on the bottom line.

So what

Revenue in the third quarter jumped 11% to $82.1 million, which translated into a net loss of $30.2 million, or $0.36 per share. Analysts had expected the company to generate $77 million in sales and post a loss of $0.26 per share. Eventbrite's own revenue guidance for the third quarter had topped out at $78 million. The company said paid ticket volumes increased 13% to 26.9 million, thanks in part to Eventbrite's new self sign-on channel.

An event on Eventbrite

Image source: Eventbrite.

Eventbrite has nearly completed the migration of Ticketfly to its own platform while retiring outstanding debt related to the acquisition. The company had acquired Ticketfly in 2017 from Pandora, which lost hundreds of millions of dollars on the deal.

Now what

Eventbrite says it will start to cut costs and reallocate resources in the fourth quarter in an effort to bolster long-term growth and profitability. The initiative should result in $2 million to $3 million in severance and reorganization expenses.

The company is forecasting net revenue of $75 million to $79 million in the fourth quarter, which should bring full-year sales to $319 million to $323 million. Adjusted EBITDA next quarter should be negative $4 million to breakeven.

"We are centralizing our European teams to improve operating effectiveness, and we are reducing staffing in administrative areas and higher-cost locations to increase financial efficiency," Eventbrite wrote in its shareholder letter. "We plan to shift more of our resources to our most attractive locations and increase investment in strategic areas such as product and engineering."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Eventbrite Stock Quote
Eventbrite
EB
$12.21 (2.26%) $0.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
331%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.