Eventbrite is shining after its third quarter (Q3) earnings report. The event planning site just went public months ago and the initial public offering (IPO) has paid off. Even though profits are up, the stock dipped after the initial release of the revenue report.
Eventbrite’s unicorn IPO
Eventbrite was founded in San Francisco by husband-and-wife team Kevin and Julia Hartz. The event listings site disrupted the ticketing industry by focusing on local, affordable experiences. The company’s profits grew after combining a flat fee for promoters with a percentage fee of every ticket sold.
The site has sold millions of experiences that connected people over the globe. The corporation is especially popular with millennials who spend large amounts of money on entertainment. Because of its success, when Eventbrite went public in the fall of 2018, it was estimated to be worth $1 billion. That made the ticketing platform a ‘unicorn’ company, a rare corporation that’s valued at the astronomical amount.
Eventbrite’s revenue report
Eventbrite’s earnings increased with $73.6 million in sales from $50.7 million in 2017, a jump of 45%. Paid tickets to events also helped raise profits, with 23.9 million sold. Even though the online platform had gains, the company had a loss of $35.6 million because of stock compensation for investors.
Eventbrite already has helped raise the profits of Square. The online payment company made a $25 million investment in the site and doubled its return. The ticketing platform has added $61 million to Square’s bottom line. Now Eventbrite can claim success for itself in its earnings report.
The event planning site wants to expand its reach with its Eventbrite Music division. The company will focus on selling tickets to events from independent artists and festivals. Eventbrite hopes to cut into Ticketmaster and Live Nation’s dominance in the live entertainment industry. Andrew Dreskin, president of Eventbrite Music, said that he is eager to partner with local music promoters.
‘We’re excited to put this solution into the hands of independent promoters around the world and help to continue to fuel a thriving independent music ecosystem’, said Dreskin.