Eventbrite Off to Fragile Start as Public Company With Revenue Concerns
Skift Take
Is the bottom falling out for Eventbrite? Not really, but it needs to turn a corner soon to make investors more confident in its future. It takes time and money to build a global platform, and it looks like Eventbrite could be running out of time.
No one said the events business was easy, and Eventbrite is feeling pressure after its second quarter as a public company yielded concerns about its future success.
Eventbrite stock fell more than 25 percent in aftermarket trading following the release of its quarterly earnings report on Thursday, the result of weak revenue guidance for the first quarter of 2019 and a loss per share that widened to 17 cents from an expected 14 cents.
Eventbrite's stock has been in steady decline since going public, and it seems like the acquisition heavy approach it took before its IPO is dragging it down.
While Eventbrite beat expectations on fourth-quarter revenue by $2.7 million, it seems the prospect of various integrations weighing down the future profitability of the company has troubled investors. Eventbrite's strategy expansion has been fueled by acquisitions in global markets, and integrating the various systems while retaining clients seems to have been harder than expected.
The bigger problem is that the company's losses have increased even as it drives more revenue.
Eventbrite Losses/Revenues (in millions)
2018
2017
2016
Net Losses
$64.1
