Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| But on the other side of that, there was the long-term benefit of extracting value for the investments we've made, significant investments in the performance of the product and the strength of the brand, the trust and safety of our marketplace, and really most importantly, the demand generation that we bring to events on the platform |
| Our adjusted EBITDA margin also improved |
| The way that we will get there is by resuming stronger core ticketing growth |
| We'll control corporate overhead, and we'll utilize the lower-cost locations that we've built into our system around the world to continue to drive long-term margin expansion |
| So I have a lot of confidence in us being able to increase paid ticket sell-through on Eventbrite by doing two things really well, creating better opportunity for this highly popular event content to sell out; and second, being able to increase our retention and engagement of consumers |
| We can remain disciplined and close profitable sales deals because we have the benefit of this demand generation capability, because we have the scale and because we can show these customers that we can help them sell more tickets |
| Our strong 25% top line growth for the year reflects our ability to serve ticketing, marketing and event discovery needs |
| So, there's some good momentum |
| We're seeing 5x to 6x ROA on the product already and much stronger adoption now that we are offering it across the board |
| So, we think that there is some considerable upside in helping creators become better marketers and look to Eventbrite to help them spend their marketing budget, which is typically 40% to 50% of the face value of their ticket |
| It's a superior experience |
| We're also making strides in our demand generation messaging to our customers |
| That potential lies in doing more for creators than ticketing and payment processing, and it centers on leveraging our unmatched scale, our brand recognition and technical capabilities to attract consumers and drive demand for creators' events |
| That will continue to have a very favorable effect on gross margins |
| In response to feedback from our creators, we have introduced new ways to tailor event listings, resulting in better ads efficacy and accelerated sign-up rates |
| We see the strengthening of our own gross margins in offering features like Eventbrite Ads |
| That's also going to boost the adoption of Eventbrite Ads, which is a much stronger gross profit product for us |
| In 2023, we better positioned our team to deliver that outcome for our customers by repurposing investment resources toward growth enablement |
| In summary, we had a solid 2023, in which we achieved our overall financial objectives as we made significant strides in our marketplace strategy |
| Now most importantly, we will rebuild the strength of the paid ticket volume, and we'll get paid ticket volume back to growth through the things that we talked about |
| We've already witnessed the advantages of this strategy in our financial performance |
| Revenue per ticket, gross profit per ticket is stronger today than it's ever been and then blending in more of the high-margin non-ticketing revenue from organizer fees and advertising and the like |
| We aim to continue these gains this year and strive to achieve even better results |
| Combined, these actions are expected to improve paid ticket volume growth as the year unfolds |
| We've made strong progress on our product road map to support our marketplace repositioning over the past year |
| As we layer in more of the non-ticketing revenue from advertising and organizer fees, those have a really favorable effect on gross margins |
| We think combined with our marketplace value proposition and ability to drive demand, we are the superior solution |
| And I'm really excited about some of our wins |
| These are our immediate priorities as we address paid ticket growth and ensure each lever of our business positively reinforces our growth model |
| And that momentum remains strong in early 2024 |
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| There are a number of assumptions reflected in our quarterly and full year revenue outlook, including the following: paid ticket volume is expected to be lower year-to-year in the first half and down slightly to up modestly for the full year |
| In terms of the ticket volume trends that we're seeing and any changes in the competitive landscape, no major changes have occurred other than us observing that some of the mid-market sales-driven companies continue to slow down and be challenged because the unprofitable nature of the deals they're closing are starting to wear their balance sheets |
| Paid ticket volume is expected to be lower year-over-year in the first quarter of 2024 as well, and this has been factored into our business outlook for the quarter and the full year |
| On the 2024 guidance, the revenue growth on the guidance implies some deceleration there |
| I think you'll see paid ticket volume be down in the probably high single digits in the first quarter of this year from where it was down about 4% in the prior quarter, and we'll begin recovery from that point |
| So maybe if you could provide more color there and what gives you confidence and then on the follow-up on the lower ticket volumes, slower growth from the organized fees? Just wondering how that has played out versus your expectations |
| And the impact in the short term has been some churn of creators who, for the first time, have faced fees to list their events on Eventbrite |
| It's impacted our self sign-on acquisition funnel |
| With the implementation of AI-powered event and marketing flows, we drastically decreased the time it takes to create an event listing and marketing campaign |
| These are indicative of the customers that we'll continue to engage, and we're going to be fierce competition for especially entertainment, nightlife and music in the metros we really care about |
| First, you haven't mentioned it, so I'm assuming that the answer is no to this, but I'm curious if consumer demand, if you're seeing any softness there reflected in the paid ticket growth |
| Growth in paid creators that was up 3%, but paid tickets was down 4% |
| One is, why is product development costs still rising if you've gone to lower cost markets as far as development goes? And the second is, on the last earnings call, you had made comments about churn -- not seeing churn or churn not being elevated and then this the theme of this call is that there was churn as far as organizers are concerned |
| And is that the metric that's being affected? What -- is it just new creator sign-ups that is more affected because of the increase in take rate? And the other is, is a related question |
| There had been some impact |
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