Eventbrite’s Q3 earnings report had company leaders speaking optimistically about the expected return of live events, but reflected continued struggles for the company amid the halt on live events due to the coronavirus pandemic. Revenue was down by 75 percent compared to Q3 2019 according to the company, though the $21.8 million figure for the recent quarter was nearly triple the Q2 figure of $8.4 million as both in-person and virtual events ramped up.
“Eight months into a pandemic that has swept the world and upended the live events industry, we stand in awe of the fortitude and resourcefulness of our creator community,” the shareholder letter published by the company begins. “Eventbrite creators have adapted quickly and creatively to an extremely challenging operating environment. Many have completely reinvented how they host events and attract audiences… Their entrepreneurial spirit has helped unite people safely, at a time when we need connection most.”
In its report, the company touted the growth of active creators on its platform by 30 percent compared to Q2 2020, with 1.3 million events hosted on the platform from August-October. Paid ticket volume trended upward in each month of the quarter, with hopes that the continued evolution of the response to the coronavirus will keep that trend going in future months.
While revenue remains down, the earnings report detailed substantial reduction in expenses as it rides out the pandemic, with operating expenses reduced by $30 million (44 percent) compared to the same quarter a year ago.
“Putting it all together, we remain confident in the positive long-term outlook for live events,” says CFO Lanny Baker. “We are inspired by the resilient ingenuity and growth orientation that we see displayed by creators in our market every day.
“We’re excited about the ways in which we are focusing and strengthening Eventbrite in advance of the full recovery that is to come.”
Eventbrite stock (NYSE:EB) stayed flat following the report, closing at $10.12 Friday afternoon. After a precipitous drop in mid-February, the stock has hovered between $6-12 per share for much of the pandemic.
A transcript of the earnings call is available at Seeking Alpha. (Registration required). The shareholder letter is available at Eventbrite’s website (PDF).