Want in on Eventbrite's initial public offering? It'll likely cost you at least $19 per share, according to the ticketer's latest SEC filings
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Confirming recent speculation, the self-service ticketing platform will land on the NYSE later this year
By Molly Long on 24 Aug 2018
Online ticketing platform Eventbrite has filed for an IPO on the New York Stock Exchange, confirming recent speculation. The San Francisco startup, founded in 2006 by husband and wife team Kevin and Julia Hartz, plans to raise $200 million.
While the company is presently unprofitable, revenues continue to grow, with net losses declining. Financial results from 2017 show sales increasing by 51%, from $135.5 million in 2016 to $201.6 million. Net losses decreased 4.7% from $40.4 million in 2016 to $38.5 million over that period.
Since 2006, Eventbrite has raised $332.3 million over nine funding rounds including a debt funding round for $1.5 million in 2008. The lead underwriter for the IPO will be Goldman Sachs, although a share price has not yet been set.
Last year the company processed 1.8 billion free event tickets, compared to 1.1 billion paid-for tickets.
Eventbrite’s self-service platform is popular with small events. In 2017, 97% of ‘creators’ stayed with the company, but revenues from service fees tend to be lower. However, the company estimates its market opportunity “to be 1.1 billion tickets generating $3.2bn in gross ticket fees, along with an additional 1.9 billion free tickets”.
In the last 12 months alone, Eventbrite purchased Ticketscript in the Netherlands, US-based Ticketfly, Ticketea in Spain and most recently Picatic in Canada. One industry expert IQ spoke to points to the acquisitions of these traditional ticketing agencies as a means to sell higher value tickets and increase revenues.
Top of the risk factors listed in the S-1 filing is its reliance on third-party partnerships. “These third-party partners may terminate their relationship with us, limit certain integration functionality, change their treatment of our services or restrict access to their platform by creators at any time.”
When it lands on the NYSE later this year, Eventbrite will join other ticketing companies to have previously floated including Ticketmaster, CTS Eventim, StubHub, Vivendi Village and BookMyShow.
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