We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Hold on to Eventbrite Stock Despite Its 54% Dip in a Year?
Read MoreHide Full Article
Eventbrite (EB - Free Report) shares saw a sharp decline of 53.9% in the trailing 12 months, significantly underperforming the broader Zacks Computer & Technology sector’s appreciation of 29.4% and the Zacks Internet - Software industry’s 32.7% jump.
This underperformance has resulted from weakening financial performance and operational challenges. The company has struggled with declining engagement from its user base, making it difficult to sustain growth in ticket sales and event creation.
Operating inefficiencies and rising costs have added to its financial pressures. Increasing competition in the event management and ticketing industries has intensified, putting additional pressure on the company’s market share.
Despite challenges, Eventbrite is optimistic about its growth potential. The company is focusing on expanding its event inventory to attract more creators and engage consumers, with $4.5 million in new bookings in the third quarter of 2024. Significant pipeline improvements across music, food and drink, and comedy shows are expected to drive top-line growth in the long term.
Creator acquisition is a cornerstone of Eventbrite's growth strategy, driving an increase in event listings, ticket sales and overall revenues. By focusing on attracting event creators, the company strengthens its core ticketing business and broadens its appeal to a wider audience.
EB focuses on attracting creators of large, popular events in major cities, driving consumer engagement. The platform hosted more than 1.4 million events, with more than 333,000 creators, including 82,000 new ones in the third quarter of 2024.
Eventbrite has introduced the latest features, including timed entry, which is designed to give creators greater control over managing attendee flow, and 24/7 phone support for premium creators, along with overall customer support improvements, to enhance the platform's functionality and user experience.
In September 2024, Eventbrite introduced a free-tier product to attract small creators by removing entry barriers to entry. This move aligns with the company’s goal to foster growth by catering to creators of all sizes. Notably, more than 10,000 creators now use Eventbrite Ads monthly, using advanced tools to promote events and attract a larger consumer base.
Large Consumer Base Aids EB’s Performance
Consumers are important for Eventbrite’s growth and play a vital role in the marketplace. In the third quarter of 2024, EB reached 92 million active users, with 26 million of them making purchases.
Eventbrite's efforts to re-engage former customers proved successful, with more than 750,000 paid tickets sold since September. The company expects this momentum to continue as it strengthens sales strategies, products and support to drive growth.
The company is set to launch a redesigned mobile app early next year, which is currently in beta testing. The mobile app drives the highest consumer engagement and purchase frequency, with logged-in users benefiting from better personalization and localization while buying twice as often as on the website.
EB Struggles With Operational Efficiency
The decline in paid creators suggests difficulties in retaining or attracting new ones. This struggle could impact the platform's ability to drive consistent growth and engagement.
The introduction of a free tier has helped attract users, but converting them into paying customers remains a long-term challenge.
Sustaining long-term consumer engagement, particularly among younger demographics, remains a challenge despite partnerships like TikTok.
EB’s Sales & Earnings Estimates Show Mixed Trend
The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $77.19 million, indicating a 10.5% year-over-year decline.
The Zacks Consensus Estimate for first-quarter 2025 bottom line is pegged at a loss of 5 cents per share, unchanged over the past 30 days and indicating breakeven performance on a year-over-year basis.
The Zacks Consensus Estimate for 2025 revenues is pegged at $339.64 million, implying year-over-year growth of 4.58%.
The consensus mark for 2025 is pegged at a loss of 1 cent per share, unchanged over the past 30 days, marking a sharp year-over-year rise of 93.75%.
EB has a long history of reporting strong quarterly performances, with earnings surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 70.64%.
Image: Shutterstock
Should You Hold on to Eventbrite Stock Despite Its 54% Dip in a Year?
Eventbrite (EB - Free Report) shares saw a sharp decline of 53.9% in the trailing 12 months, significantly underperforming the broader Zacks Computer & Technology sector’s appreciation of 29.4% and the Zacks Internet - Software industry’s 32.7% jump.
This underperformance has resulted from weakening financial performance and operational challenges. The company has struggled with declining engagement from its user base, making it difficult to sustain growth in ticket sales and event creation.
Operating inefficiencies and rising costs have added to its financial pressures. Increasing competition in the event management and ticketing industries has intensified, putting additional pressure on the company’s market share.
Despite challenges, Eventbrite is optimistic about its growth potential. The company is focusing on expanding its event inventory to attract more creators and engage consumers, with $4.5 million in new bookings in the third quarter of 2024. Significant pipeline improvements across music, food and drink, and comedy shows are expected to drive top-line growth in the long term.
Eventbrite, Inc. Price and Consensus
Eventbrite, Inc. price-consensus-chart | Eventbrite, Inc. Quote
Enhanced Platform & New Creators Drive EB Growth
Creator acquisition is a cornerstone of Eventbrite's growth strategy, driving an increase in event listings, ticket sales and overall revenues. By focusing on attracting event creators, the company strengthens its core ticketing business and broadens its appeal to a wider audience.
EB focuses on attracting creators of large, popular events in major cities, driving consumer engagement. The platform hosted more than 1.4 million events, with more than 333,000 creators, including 82,000 new ones in the third quarter of 2024.
Eventbrite has introduced the latest features, including timed entry, which is designed to give creators greater control over managing attendee flow, and 24/7 phone support for premium creators, along with overall customer support improvements, to enhance the platform's functionality and user experience.
In September 2024, Eventbrite introduced a free-tier product to attract small creators by removing entry barriers to entry. This move aligns with the company’s goal to foster growth by catering to creators of all sizes. Notably, more than 10,000 creators now use Eventbrite Ads monthly, using advanced tools to promote events and attract a larger consumer base.
Large Consumer Base Aids EB’s Performance
Consumers are important for Eventbrite’s growth and play a vital role in the marketplace. In the third quarter of 2024, EB reached 92 million active users, with 26 million of them making purchases.
Eventbrite's efforts to re-engage former customers proved successful, with more than 750,000 paid tickets sold since September. The company expects this momentum to continue as it strengthens sales strategies, products and support to drive growth.
The company is set to launch a redesigned mobile app early next year, which is currently in beta testing. The mobile app drives the highest consumer engagement and purchase frequency, with logged-in users benefiting from better personalization and localization while buying twice as often as on the website.
EB Struggles With Operational Efficiency
The decline in paid creators suggests difficulties in retaining or attracting new ones. This struggle could impact the platform's ability to drive consistent growth and engagement.
The introduction of a free tier has helped attract users, but converting them into paying customers remains a long-term challenge.
Sustaining long-term consumer engagement, particularly among younger demographics, remains a challenge despite partnerships like TikTok.
EB’s Sales & Earnings Estimates Show Mixed Trend
The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $77.19 million, indicating a 10.5% year-over-year decline.
The Zacks Consensus Estimate for first-quarter 2025 bottom line is pegged at a loss of 5 cents per share, unchanged over the past 30 days and indicating breakeven performance on a year-over-year basis.
The Zacks Consensus Estimate for 2025 revenues is pegged at $339.64 million, implying year-over-year growth of 4.58%.
The consensus mark for 2025 is pegged at a loss of 1 cent per share, unchanged over the past 30 days, marking a sharp year-over-year rise of 93.75%.
EB has a long history of reporting strong quarterly performances, with earnings surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 70.64%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Zacks Rank & Better Stock to Consider
EB currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock.
Shopify (SHOP - Free Report) , nCino (NCNO - Free Report) and Teradyne (TER - Free Report) are some better-ranked stocks in the broader tech sector. Each of the stocks currently sports a Zacks Rank #1 (Strong-Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rates for Shopify, nCino and Teradyne Technology are pegged at 42.58%, 22.61% and 14.60%, respectively.