Q2 2024 Eventbrite Inc Earnings Call

Operator: It is now my pleasure to turn the floor over to your host, Katie Pickett. Ma'am, the floor is yours.

Operator: It is not my pleasure to turn the floor over to your host, Katie Pickett.

It is now my pleasure to turn the floor over to your host Katie ticket ma'am the floor is yours.

Operator: Ma'am, the floor is yours.

Katie Pickett: Good afternoon, and welcome to Eventbrite's second quarter 2024 earnings call. My name is Katie Pickett, Investor Relations. With us today are Julia Hartz, our co-founder and chief executive officer, and Lani Baker, our chief operating and financial officer.

Katie Pickett: Good afternoon and welcome to Eventbrite's second quarter, 2024 earnings call. My name is Katie Pickett, Investor Relations. With us today, are Julia Hartz, our co-founder and chief executive officer, and Lanny Baker, our chief operating and financial officer.

Katie Pickett: Good afternoon, and welcome to Eventbrite second quarter 2024 earnings call. My name is Katie Pickett Investor Relations with US today are Julia Hartz, our co founder and Chief Executive Officer, Atlanta, Baker, our chief operating and financial Officer.

Katie Pickett: As a reminder, this conference call is being recorded and will be available for replay on Eventbrite's Investor Relations website at investor.eventbrite.com. Please also refer to our Investor Relations website to find our shareholder letter announcing our financial results, which was released prior to the call.

Katie Pickett: As a reminder, this conference call is being recorded and will be available for replay on Eventbrite's Investor Relations website at investor.eventbrite.com. Please also refer to our investor relations website to find our shareholder letter announcing our financial results, which was released prior to the call. Before we get started, I would like to remind you that during today's call, we'll be making forward-looking statements regarding future events and financial performance. We caution that such statements reflect our best judgment as of today, August 8th, based on the factors that are currently known to us and that actual future events or results could differ materially due to several factors, many of which are beyond our control.

Speaker Change: As a reminder, this conference call is being recorded and will be available for replay on Eventbrite Investor Relations website at Investor Dot Eventbrite Dot com.

Please also refer to our Investor relations website to find our shareholder letter announcing our financial results, which was released prior to the call.

Katie Pickett: Before we get started, I would like to remind you that during today's call, we'll be making forward-looking statements regarding future events and financial performance. We caution that such statements reflect our best judgment as of today, August 8th, based on the factors that are currently known to us and that actual future events or results could differ materially due to several factors, many of which are beyond our control. For a more detailed discussion of the risks and uncertainties affecting our future results, we refer you to this section titled "Forward-looking Statements" in our Shareholder Letter and our filings with the SEC.

Katie Pickett: For a more detailed discussion of the risks and uncertainties affecting our future results, we refer you to this section titled Forward-Looking Statements in our Shareholder Letter and our filings with the SEC. We undertake no obligation to update any forward-looking statements made during the call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law. During this call, we'll present Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures.

Before we get started I would like to remind you that during today's call, we'll be making forward looking statements regarding future events and financial performance.

Speaker Change: We caution that such statements reflect our best judgment as of today August eight based on the factors that are currently known to us and that actual future events or results could differ materially due to several factors many of which are beyond our control.

Speaker Change: For a more detailed discussion of the risks and uncertainties affecting our future results. We refer you to this section titled forward looking statements in our shareholder letter and our filings with the SEC.

Katie Pickett: We undertake no obligation to update any forward-looking statements made during the call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law.

Speaker Change: We undertake no obligation to update any forward looking statements made during the call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law.

Katie Pickett: During this call, we'll present Adjusted Evita and Adjusted Evita Margin, which are non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and have limitations as an analytical tool. You should not consider them in isolation or as a substitute for analysis of our results of operations as reported under GAAP. A reconciliation to the most directly comparable GAAP financial measure is available in our Shareholder Letter. We encourage you to read our shareholder letter, which contains important information about GAP and non-GAP results.

Speaker Change: During this call will present, adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and have limitations as an analytical tool.

Katie Pickett: These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and have limitations as an analytical tool. You should not consider them in isolation or as a substitute for analysis of our results of operations as reported under GAAP. A reconciliation to the most directly comparable GAAP financial measure is available in our shareholder letter. We encourage you to read our shareholder letter, which contains important information about GAAP and non-GAAP results. And with that, I'll now turn the call over to Julia.

Speaker Change: You should not consider them in isolation or as a substitute for analysis of our results of operations as reported under GAAP a.

Speaker Change: A reconciliation to the most directly comparable GAAP financial measure is available in our shareholder letter. We encourage you to read our shareholder letter, which contains important information about GAAP and non-GAAP results and with that I'll now turn the call over to Julia.

Julia Hartz: And with that, I'll now turn the call over to Julia. Thank you, Katie, and welcome everyone to our call. In the second quarter, we delivered results that were in line with our outlook. Revenue grew 7% year-over-year to $84.6 million. Excluding non-RT items, adjusted Evita was 8.5 million dollars representing just over 10% of revenue. While we've made good progress toward our consumer growth strategy, we've encountered some challenges with our new creator pricing model that are impacting our short-term performance. In Q2, we saw a 9% decline in paid tickets and the 16% drop in total tickets. Digging deeper into these challenges, we've identified that the pricing model and organizer fees introduced last year are the primary factors affecting our paid ticket performance.

Julia Hartz: Thank you, Katie, and welcome everyone to our call. In the second quarter, we delivered results that were in line with our outlook. Revenue grew 7% year-over-year to $84.6 million. Excluding non-routine items, Adjusted EBITDA was $8.5 million, representing just over 10% of revenue.

Julia: Thank you Katie and welcome everyone to our call in the second quarter. We delivered results that were in line with our outlook revenue grew 7% year over year to $84 $6 million.

Julia: Excluding non routine items adjusted EBITDA was eight and a half million dollars, representing just over 10% of revenue.

Julia Hartz: While we've made good progress toward our consumer growth strategy, we've encountered some challenges with our new creator pricing model that are impacting our short-term performance. In Q2, we saw a 9% decline in paid tickets and a 16% drop in total tickets. Digging deeper into these challenges, we've identified that the pricing model and organizer fees introduced last year are the primary factors affecting our paid ticket performance. Specifically, these changes have led to a reduction in creator count and ticket volume.

Speaker Change: Well, we've made good progress toward our consumer growth strategy, we've encountered some challenges with our new creator pricing model that are impacting our short term performance.

Speaker Change: In Q2, we saw a 9% decline in paid tickets and a 16% drop in total tickets.

Speaker Change: Digging deeper into these challenges we've identified that the pricing model and organize their fees introduced last year. Other primary factors affecting our paid ticket performance.

Julia Hartz: Specifically, these changes have led to a reduction in creator count and ticket volume. While our initial approach was based on thorough research, the real-world results have provided valuable insights that are now shaping our response. We've learned that our creators are more willing to pay when they see a clear connection between our pricing and their event success on Eventbrite. In response, we're in the midst of refining our approach. This month, we're rolling out new pricing packaging and streamlined event creation flows that directly address the insights we've gathered. The latter of these improvements is already showing promise.

Speaker Change: Specifically these changes have led to a reduction in creator count and ticket volume.

Julia Hartz: While our initial approach was based on thorough research, the real-world results have provided valuable insights that are now shaping our response. We've learned that our creators are more willing to pay when they see a clear connection between our pricing and their event success on Eventbrite. In response, we're in the midst of refining our approach.

Speaker Change: While our initial approach was based on thorough research the real World results have provided valuable insights that are now shaping our response.

Speaker Change: We've learned that our creators are more willing to pay when they see a clear connection between our pricing and their event success on Eventbrite in response, we're in the midst of a refining our approach.

Julia Hartz: This month, we're rolling out new pricing, packaging, and streamlined event creation flows that directly address the insights we've gathered. The latter of these improvements is already showing promise. Our new, more intuitive event creation process is making it easier for creators to get started on Eventbrite. Additionally, our recent Win Back campaign demonstrates the effectiveness of our renewed focus on creator needs, bringing over 140,000 paid tickets back to the platform in Q2 alone. Looking ahead, we're taking a two-pronged approach to address our creators' diverse needs. Next month, we're reintroducing a free tier with no marketplace fees.

Speaker Change: This month, we're rolling out new pricing packaging and streamlined event creation flows that directly address the insights we gathered the latter of these improvements is already showing promise.

Julia Hartz: Our new, more intuitive event creation process is making it easier for creators to get started on Eventbrite. Additionally, our recent win-back campaign demonstrates the effectiveness of our renewed focus on creator needs, bringing over 140,000 paid tickets back to the platform in Q2 alone. Looking ahead, we're taking a two-pronged approach to address our creator's diverse needs. Next month, we're reintroducing a free tier with no marketplace fees. We believe this change will help us attract new creators and reconnect with those who have less due to pricing concerns. While we anticipate these improvements will help stabilize our paid ticket volume, we recognize that this is just one step in our broader strategy.

Speaker Change: Our new more intuitive event creation process is making it easier for creators to get started on eventbrite.

Speaker Change: Additionally, our recent win back campaign demonstrates the effectiveness of our renewed focus on creator needs springing over 140000 paid tickets back to the platform in Q2 alone.

Speaker Change: Looking ahead, we're taking a two pronged approach to address our creators diverse needs next month, we're reintroducing a free tier with no marketplace fees.

Julia Hartz: We believe this change will help us attract new creators and reconnect with those who have left due to pricing concerns. While we anticipate these improvements will help stabilize our paid ticket volume, we recognize that this is just one step in our broader strategy. In parallel, we're developing a premium marketplace tier that will offer enhanced event visibility, incentives, and support tailored to driving growth for creators. With 35,000 creators currently subscribed to our pro plan, we've identified a solid base of customers who value and are willing to pay for our premium features. We plan to reward these creators with increased visibility in our marketplace and demand generation tools. This data-driven adjustment aligns more closely with what our creators want and need.

Speaker Change: We believe this change will help us attract new creators and reconnect with those who have left due to pricing concerns. While we anticipate these improvements will help stabilize our paid ticket volume. We recognize that this is just one step in our broader strategy.

Julia Hartz: In parallel, we're developing a premium marketplace tier that will offer enhanced event visibility incentives and support tailored to driving growth for creators. With 35,000 creators currently subscribed to our Pro plan, we've identified a solid base of customers who value and are willing to pay for premium features. We plan to reward these creators with increased visibility in our marketplace and demand generation tools. This data-driven adjustment aligns more closely with what our creators want and need, and we're making these changes with the goal of regaining momentum and ticket sales, improving creator retention, and driving sustainable growth. While we realize the impact of these changes will take time to materialize, we remain committed to continuously learning and adapting our approach to best serve our creator community.

Speaker Change: In parallel we're developing a premium marketplace here that will offer enhanced event visibility incentives and support tailored to driving growth for creators with 35000 creators currently subscribe to our pro plan, we've identified a solid base of customers, who value and are willing to pay for premium features.

Operator: It is not my pleasure to turn the floor over to your host, Katie Pickett. Ma'am, the floor is yours.

Katie Pickett: Good After in and welcome to Eventbrite's second quarter, 2024 earnings call. My name is Katie Pickett, Investor Relations. With us today, our Julia Hartz, our co-founder and chief executive officer, and Lanny Baker, our chief operating and financial officer. As a reminder, this conference call is being recorded and will be available for replay on Eventbrite's Investor Relations website at investor.eventbrite.com. Please also refer to our Investor Relations website to find our shareholder letter announcing our financial results, which was released prior to the call.

Speaker Change: We plan to reward these creators with increased visibility in our marketplace and demand generation tools.

Speaker Change: This data driven adjustment aligns more closely with what our creators want and need and we're making these changes with the goal of regaining momentum and ticket sales improving creator attention and driving sustainable growth.

Julia Hartz: And we're making these changes with the goal of regaining momentum in ticket sales, improving creator retention, and driving sustainable growth. While we realize the impact of these changes will take time to materialize, we remain committed to continuously learning and adapting our approach to best serve our creator community. By listening to our users and adapting quickly, we're positioning Eventbrite for long-term success in our dynamic market. The revised revenue outlook for the year has led us to make a difficult but necessary decision to reduce our team size.

Speaker Change: While we realize the impact of these changes will take time to materialize, we remain committed to continuously learning and adapting our approach to best serve our creator community by.

Julia Hartz: By listening to our users and adapting quickly, we're positioning Event Right for long-term success in our dynamic market.

Speaker Change: By listening to our users and adapting quickly we're positioning eventbrite for long term success and our dynamic market.

Katie Pickett: Before we get started, I would like to remind you that during today's call, we'll be making forward-looking statements regarding future events and financial performance. We caution that such statements reflect our best judgment as of today, August 8th, based on the factors that are currently known to us and that actual future events or results could differ materially due to several factors, many of which are beyond our control. For a more detailed discussion of the risks and uncertainties affecting our future results, we refer you to this section titled Forward-looking Statements in our Shareholder Letter and our filings with the SEC. We undertake no obligation to update any forward-looking statements made during the call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events except is required by law.

Julia Hartz: The revised revenue outlook for the year has led us to make a difficult but necessary decision to reduce our team size. We expect that this restructuring will result in annualized operating expense savings of $30 million by the end of the third quarter. While this decision was not taken lightly, it's a crucial step to maintain our profitability and position event right for agility as we work to revitalize ticket volume and revenue growth. We fully recognize the impact this has on our team members, and we deeply appreciate their dedication, especially during the phase of our transition. While recognizing these hurdles, we're also focused on the future.

Speaker Change: The revised revenue outlook for the year has led us to make and difficult, but necessary decision to reduce our team size.

Julia Hartz: We expect that this restructuring will result in annualized operating expense savings of $30 million by the end of the third quarter. While this decision was not taken lightly, it's a crucial step to maintain our profitability and position Eventbrite for agility as we work to revitalize ticket volume and revenue growth. We fully recognize the impact this has on our team members, and we deeply appreciate their dedication, especially during this phase of our transition. However, while recognizing these hurdles, we're also focused on the future.

Speaker Change: We expect that this restructuring will result in annualized operating expense savings of $30 million by the end of the third quarter.

Speaker Change: While this decision was not taken lightly it is a crucial step to maintain our profitability and position eventbrite for agility as we work to revitalize ticket volume and revenue growth.

Speaker Change: We fully recognize the impact this has on our team members and we deeply appreciate their dedication, especially during this phase of our transition.

Speaker Change: Well recognizing these hurdles we're also focused on the future.

Julia Hartz: Our commitment to our long-term vision remains strong, allowing us to continue making progress on our core strategic priorities. Strengthening the consumer experience and growing the network, attracting and promoting events that drive audience engagement, and offering monetizable tools to our creators to help them grow their businesses. On the consumer front, we've seen strong growth and engagement. Our mobile app users increased by 22% year-over-year, contributing to a total of 93 million monthly average users across web and mobile platforms. Improved personalization led to a 17% increase in search and discovery usage, engaging 10 million more consumers in Q2.

Julia Hartz: Our commitment to our long-term vision remains strong, allowing us to continue making progress on our core strategic priorities, such as strengthening the consumer experience and growing the network. Attracting and promoting events that drive audience engagement, and offering monetizable tools to our creators to help them grow their businesses. On the consumer front, we've seen strong growth and engagement. Our mobile app users increased by 22% year over year, contributing to a total of 93 million monthly average users across web and mobile platforms.

Speaker Change: Our commitment to our long term vision remains strong, allowing us to continue making progress on our core strategic priorities.

Katie Pickett: During this call, we'll present Adjusted Evita and Adjusted Evita Margin, which are non-GAP financial measures. These non-GAP financial measures are not prepared in accordance with generally accepted accounting principles and have limitations as an analytical tool. You should not consider them in isolation or as a substitute for analysis of our results of operations as reported under GAP. A reconciliation to the most directly comparable GAP financial measure is available in our Shareholder Letter. We encourage you to read our Shareholder Letter, which contains important information about GAP and non-GAP results.

Speaker Change: Strengthening the consumer experience and growing the network, attracting and promoting events that drive audience engagement and offering monetize volt tools to our creators to help them grow their businesses.

Julia Hartz: Improved personalization led to a 17% increase in search and discovery usage, engaging 10 million more consumers in Q2. Additionally, our new TikTok partnership is already generating over 100 million daily impressions, expanding our reach beyond Eventbrite's own platform. These consumer gains reinforce our strategy and validate our investments as they directly benefit our creators and strengthen our marketplace ecosystem. To bring more compelling event inventory into our marketplace, our sales team is focused on acquiring the right customers who attract bigger audiences, and our product team is driving innovation to expand the types of creators we can serve.

Speaker Change: On the consumer front, we've seen strong growth and engagement, our mobile app users increased by 22% year over year contributing to a total of 93 million monthly average users across web and mobile platforms.

Katie Pickett: And with that, I'll now turn the call over to Julia.

Speaker Change: Improved personalization led to a 17% increase in search and discovery usage engaging 10 million more consumers in Q2.

Julia Hartz: Thank you, Katie, and welcome everyone to our call. In the second quarter, we delivered results that were in line with our outlook. Revenue grew 7% year-over-year to $84.6 million. Excluding non-RT items, Adjusted Evita was 8.5 million dollars representing just over 10% of revenue. While we've made good progress toward our consumer growth strategy, we've encountered some challenges with our new creator pricing model that are impacting our short-term performance. In Q2, we saw a 9% decline in paid tickets and the 16% drop in total tickets.

Julia Hartz: Our new TikTok partnership is already generating over 100 million daily impressions, expanding our reach beyond Eventbrite's own platforms. These consumer-side gains reinforce our strategy and validate our investments as they directly benefit our creators and strengthen our marketplace ecosystem. To bring more compelling event inventory into our marketplace, our sales team is focused on acquiring the right customers who attract bigger audiences, and our product team is driving innovation to expand the types of creators we can serve. Bookings of new large creators such as MAKA Events and Unicorn World continue to pace well ahead of 2023, with nearly 60% growth in sales bookings in Q2.

Speaker Change: Our new tick Tock partnership is already generating over 100 million daily impressions, expanding our reach beyond Eventbrite some platforms.

Speaker Change: Consumer side gains reinforce our strategy and validate our investments as they directly benefit our creators and strengthen our marketplace ecosystem.

Julia Hartz: Digging deeper into these challenges, we've identified that the pricing model and organizer fees introduced last year are the primary factors affecting our paid ticket performance. Specifically, these changes have led to a reduction in creator count and ticket volume. While our initial approach was based on thorough research, the real-world results have provided valuable insights that are now shaping our response. We've learned that our creators are more willing to pay when they see a clear connection between our pricing and their event success on Eventbrite.

Speaker Change: To bring more compelling event inventory into our marketplace. Our sales team is focused on acquiring the right customers, who attract bigger audiences and our product team is driving innovation and to expand the types of creators we conserve.

Julia Hartz: Bookings of new large creators, such as Make It Events and Unicorn World, continue to pace well ahead of 2023, with nearly 60% growth in sales bookings in Q2. During the third quarter, we plan to move our timed entry tools out of beta and to a wide release, allowing creators of experiences with timed ticketing, such as tours and museums, to participate in our marketplace and open up considerable new market opportunities.

Speaker Change: Bookings of new large creators such as major events and Unicorn World continue to pace well ahead of 2023 with nearly 60% growth in sales bookings in Q2.

Julia Hartz: During the third quarter, we plan to move our timed entry tools out of beta and to wide release, allowing creators of experiences with time-sought ticketing, such as tourism museums, to participate in our marketplace and open up considerable new market opportunities. To drive audience growth and improve event discovery, we plan to introduce and improve mobile app experience this fall. The mobile app is proven to be the best tool to develop a relationship with Eventbrite consumer audiences as it offers a much more engaging experience. We successfully diversified our revenue through Eventbrite ads, which enables creators to expand their audience reach.

Speaker Change: During the third quarter, we plan to move our timed entry tools out of beta into wide release, allowing creators of experiences with timeslot ticketing, such as tourism museums to participate in our marketplace and open up considerable new market opportunities.

Julia Hartz: To drive audience growth and improve event discovery, we plan to introduce an improved mobile app experience this fall. The mobile app has proven to be the best tool to develop a relationship with Eventbrite consumer audiences as it offers a much more engaging experience. We've successfully diversified our revenue through Eventbrite ads, which enabled creators to expand their audience reach. In Q2, Eventbrite ads revenue reached $2.9 million, more than doubling year over year.

Speaker Change: To drive audience growth and improve event discovery, we plan to introduce an improved mobile app experience. This fall the mobile App has proven to be the best tool to develop a relationship with eventbrite consumer audiences as it offers a much more engaging experience.

Julia Hartz: In response, we're in the midst of refining our approach. This month, we're rolling out new pricing packaging and streamlined event creation flows that directly address the insights we've gathered. The latter of these improvements is already showing promise. Our new more intuitive event creation process is making it easier for creators to get started on Eventbrite. Additionally, our recent win-back campaign demonstrates the effectiveness of our renewed focus on creator needs, bringing over 140,000 paid tickets back to the platform and Q2 alone.

Speaker Change: We've successfully diversified our revenue through about bright ads, which enables creators to expand their audience reach.

Julia Hartz: In Q2, Eventbrite ads revenue reached $2.9 million, more than doubling year-over-year. The service attracted over 19,500 advertisers, a 20% increase from Q1, marking record growth. Ads are proving valuable beyond direct revenue; about 25% of ads promote free events, which improves overall monetization. Creators using ads show 27% higher revenue per creator. And ads users demonstrate 10% to 20% higher retention rates and increased engagement. Given these positive trends, we see Eventbrite ads as a promising area for continued growth and enhancement of creator value.

Speaker Change: In Q2, Eventbrite ads revenue reached $2 $9 million more than doubling year over year.

Julia Hartz: The service attracted over 19,500 advertisers, a 20% increase from Q1, marking record growth. Ads are proving valuable beyond direct revenue. About 25% of ads promote free events, which improves overall monetization. Creators using ads show 27% higher revenue per creator.

Speaker Change: The service attracted over 19500 advertisers, a 20% increase from Q1, marking record growth.

Julia Hartz: Looking ahead, we're taking a two-pronged approach to address our creator's diverse needs. Next month, we're reintroducing a free tier with no marketplace fees. We believe this change will help us attract new creators and reconnect with those who have less due to pricing concerns. While we anticipate these improvements will help stabilize our paid ticket volume, we recognize that this is just one step in our broader strategy. In parallel, we're developing a premium marketplace tier that will offer enhanced event visibility incentives and support tailored to driving growth for creators.

Speaker Change: Ads are proving valuable beyond direct revenue about 25% of ads promote free events, which improves overall monetization creators using ads show, 27% higher revenue per creator.

Julia Hartz: And ads users demonstrate 10 to 20% higher retention rates and increased engagement. Given these positive trends, we see Eventbrite ads as a promising area for continued growth and enhancement of creator value. We're also announcing two key executive appointments to continue to drive our transformation. Lanny Baker, who has served as Eventbrite's Chief Financial Officer since 2019, will take on the expanded role of Chief Operating and Financial Officer. Lanny will oversee Eventbrite's global sales, success, and support, as well as the operations teams, which are fundamental to the vibrance of our marketplace and the long-term growth of our business.

Speaker Change: And adds users demonstrate 10% to 20% higher retention rates and increased engagement.

Speaker Change: Given these positive trends, we see eventbrite ads as a promising area for continued growth and enhancement of creator value.

Julia Hartz: We're also announcing two key executive appointments to continue to drive our transformation. Lanny Baker, who has served as Eventbrite's Chief Financial Officer since 2019, will take on the expanded role of Chief Operating and Financial Officer. Lanny will oversee Eventbrite's global sales, success, and support, as well as the operations teams, which are fundamental to the vibrance of our marketplace and the long-term growth of our business. Lanny will continue to lead the company's global finance function, where he's helped build a highly capable and talented team. Also, I'm pleased to welcome Samantha Wu, who will join Eventbrite as our Chief Marketing Officer starting in early September.

Julia Hartz: Lanny will continue to lead the company's global finance function, where he's helped build a highly capable and talented team. Also, I'm pleased to welcome Samantha Wu, who will join Eventbrite as our Chief Marketing Officer starting in early September. Samantha most recently served as Chief Marketing Officer of Braintrust and previously held marketing leadership roles at Facebook, Visa, and American Express. She brings more than two decades of award-winning full-stack marketing experience to Eventbrite and a fresh new perspective as we embark upon the next chapter of growth for the company. Finally, I want to thank our outgoing CMO, Tamara Mendelson, for her exceptional contributions over the past 15 years.

Speaker Change: We're also announcing two key executive appointments to continue to drive our transformation.

Julia Hartz: With 35,000 creators currently subscribed to our pro plan, we've identified a solid base of customers who value and are willing to pay for premium features. We plan to reward these creators with increased visibility in our marketplace and demand generation tools. This data-driven adjustment aligns more closely with what our creators want and need, and we're making these changes with the goal of regaining momentum and ticket sales, improving creator retention, and driving sustainable growth.

Lanny Baker: Lanny Baker, who has served as <unk> Chief Financial Officer since 2019 will take on the expanded role of Chief operating and financial Officer.

Speaker Change: Lanny will oversee eventbrite as global sales success and support as well as the operations teams, which are fundamental to the vibrancy of our marketplace and the long term growth of our business.

Speaker Change: He will continue to lead the company's global finance function, where he has helped build a highly capable and talented team.

Speaker Change: Also I'm pleased to welcome Samantha will who will join Eventbrite as our chief marketing officers starting in early September.

Julia Hartz: While we realize the impact of these changes will take time to materialize, we remain committed to continuously learning and adapting our approach to best serve our creator community. By listening to our users and adapting quickly, we're positioning event right for long-term success in our dynamic market.

Julia Hartz: Samantha, most recently served as Chief Marketing Officer of Brain Trust, and previously held marketing leadership roles at Facebook, Visa, and American Express. She brings more than two decades of award-winning full-stack marketing experience to Eventbrite, and a fresh new perspective as we embark upon the next chapter of growth for the company. Finally, I want to thank our outgoing CMO, Tamara Mendelson, for her exceptional contributions over the past 15 years. Tamara's leadership has been instrumental in shaping Eventbrite's brand and fostering a vibrant company culture. Tamara's impact on Eventbrite's success and dedication to empowering customers all over the world will leave a lasting legacy.

Speaker Change: Samantha most recently served as Chief Marketing Officer Brain Trust and previously held marketing leadership roles at Facebook Visa and American Express.

Speaker Change: She brings more than two decades of award winning full stack marketing experience to Eventbrite and a fresh new perspective, as we embark upon the next chapter of growth for the company.

Julia Hartz: The revised revenue outlook for the year has led us to make a difficult but necessary decision to reduce our team size. We expect that this restructuring will result in annualized operating expense savings of $30 million by the end of the third quarter. While this decision was not taken lightly, it's a crucial step to maintain our profitability and position event right for agility as we work to revitalize ticket volume and revenue growth.

Speaker Change: Finally, I want to thank our outgoing CMO tomorrow mendelson for her exceptional contributions over the past 15 years.

Julia Hartz: Tamara's leadership has been instrumental in shaping Eventbrite's brand and fostering a vibrant company culture. Her impact on Eventbrite's success and dedication to empowering customers all over the world will leave a lasting legacy. As we transition to Lani's remarks, I want to reaffirm our commitment to our core strategy and our confidence in Eventbrite's future. We operate in a large, growing market with high intent, frequent users, and our platform delivers significant value to hundreds of thousands of creators.

Speaker Change: His leadership has been instrumental in shaping Eventbrite brand and fostering a vibrant company culture Tomorrow is impact on Eventbrite success and dedication to empowering customers all over the world will leave a lasting legacy.

Julia Hartz: We fully recognize the impact this has on our team members, and we deeply appreciate their dedication, especially during the phase of our transition. While recognizing these hurdles, we're also focused on the future. Our commitment to our long-term vision remains strong, allowing us to continue making progress on our core strategic priorities. Strengthening the consumer experience and growing the network, attracting and promoting events that drive audience engagement, and offering monetizable tools to our creators to help them grow their businesses.

Julia Hartz: As we transition to land user marks, I want to read from our commitment to our core strategy and our confidence in Eventbrite's future. We operate in a large growing market with high intent, frequent users, and our platform delivers significant value to hundreds of thousands of creators. We believe our strategy is sound and adaptable to market dynamics. We've a talented dedicated team driving our initiatives forward, and our recent adjustments demonstrate our ability to listen, learn, and evolve. By focusing on creator success, consumer engagement, and continuous innovation, we're striving to position Eventbrite to capture the substantial opportunities in our market.

Speaker Change: As we transition <unk> remarks, I want to reaffirm our commitment to our core strategy and our confidence in event bright future. We operate in a large growing market with high intent frequent users and our platform delivers significant value to hundreds of thousands of creators.

Julia Hartz: We believe our strategy is sound and adaptable to market dynamics. We have a talented, dedicated team driving our initiatives forward, and our recent adjustments demonstrate our ability to listen, learn, and evolve. By focusing on creator success, consumer engagement, and continuous innovation, we're striving to position Eventbrite to capture the substantial opportunities in our market. We're not just navigating current headwinds. We believe we're building a stronger, more resilient company for the long term.

Speaker Change: We believe our strategy is sound and adaptable to market dynamics, we have a talented dedicated team driving our initiatives forward and our recent adjustments demonstrate our ability to listen learn and evolve.

Speaker Change: By focusing on creator success consumer engagement and continuous innovation, we're striving to position eventbrite to capture the substantial opportunities in our market. We're not just navigating current headwinds. We believe we're building a stronger more resilient company for the long term, we're energized by the opportunities before us and ready to realize.

Julia Hartz: On the consumer front, we've seen strong growth and engagement. Our mobile app users increased by 22% year-over-year, contributing to a total of 93 million monthly average users across web and mobile platforms. Improved personalization led to a 17% increase in search and discovery usage, engaging 10 million more consumers in Q2. Our new TikTok partnership is already generating over 100 million daily impressions, expanding our reach beyond Eventbrite's own platforms. These consumer side gains reinforce our strategy and validate our investments as they directly benefit our creators and strengthen our marketplace ecosystem.

Julia Hartz: We're not just navigating current headwinds. We believe we're building a stronger, more resilient company for the long term. We're energized by the opportunities before us and ready to realize Eventbrite's full potential.

Julia Hartz: We're energized by the opportunities before us and ready to realize Eventbrite's full potential. With that, I'll turn it over to Lani to walk you through our second quarter results in more detail and our outlook for the year. Thank you.

Speaker Change: <unk> full potential.

Lanny Baker: With that, I'll turn it over to Lanny to walk you through our second quarter results in more detail and our outlook for the year.

Speaker Change: With that I'll turn it over to Lanny to walk you through our second quarter results in more detail and our outlook for the year Lenny.

Lanny Baker: Lanny? Thank you, Julia. Second quarter revenue of 84.6 million was towards the lower end of our outlook range. Organizer fees and advertising revenue grew significantly in the quarter. However, ticketing revenue, which constitutes the majority of our revenue, was softer than we anticipated, down 4% year to year. A contraction in our creator count related to the implementation of organizer fees is weighing on ticket performance. Paid creators were down 7% compared to a year ago, 177,000 versus 189,000. Events per creator edged up slightly year over year, and paid tickets per event averaged 40 this quarter compared to 41 a year ago.

Lani Baker: Thank you, Julia. Second quarter revenue of $84.6 million was toward the lower end of our outlook range. Organizer fees and advertising revenue grew significantly in the quarter. However, ticketing revenue, which constitutes the majority of our revenue, was softer than we anticipated, down 4% year over year. A contraction in our creator count related to the implementation of organizer fees is weighing on ticket performance. Paid creators were down 7% compared to a year ago, 177,000 versus 189,000.

Lanny: Thank you Julia second quarter revenue of $84 6 million was towards the lower end of our outlook range.

Lanny Baker: Organiser B's and advertising revenue grew significantly in the quarter, However, ticketing revenue, which constitutes the majority of our revenue was softer than we anticipated down 4% year to year.

Julia Hartz: To bring more compelling event inventory into our marketplace, our sales team is focused on acquiring the right customers who attract bigger audiences, and our product team is driving innovation to expand the types of creators we can serve. Bookings of new large creators such as MAKA events and Unicorn World continue to pace well ahead of 2023, with nearly 60% growth in sales bookings in Q2. During the third quarter, we plan to move our timed entry tools out of beta and to wide release allowing creators of experiences with time-sought ticketing, such as tourism museums to participate in our marketplace and open up considerable new market opportunities.

Lenny: Our construction and our creator count related to the implementation of organizer piece is weighing on ticket performance.

Lanny: Paid creators were down 7% compared to a year ago 177000 versus 189000.

Lani Baker: Events per creator edged up slightly year over year, and paid tickets per event averaged 40 this quarter compared to 41 a year ago. That reflects a slight mix shift to smaller events. All of that put paid tickets at $21.2 million for the quarter, down 9% year-to-year and below the trajectory we had anticipated going into the second half. Tying back to ticketing revenue, the paid ticket volume decline was partially offset by a higher average ticket price and higher take rate in the quarter. Overall revenue per ticket was $3.98, compared to $3.39 last year. The revenue take rate was 10.1%, compared to 8.9% in the year-ago period.

Lanny: Events per creator edged up slightly year over year.

Lanny: Tickets urban averaged 40, this quarter compared to 41 a year ago.

Lanny Baker: That reflects a slight mix shift to smaller events. All of that put paid tickets at 21.2 million for the quarter, down 9% year to year and below the trajectory we had anticipated going into the second half. Time back to ticketing revenue, the paid ticket volume decline was partially offset by a higher average ticket price and higher take rate in the quarter. Overall revenue, particular was $3.98 compared to $3.39 last year. Revenue take rate was 10.1% compared to 8.9% in a year ago period. The increased contribution from marketplace revenue improved unit economics and monetization, leading to a 71% gross margin in the quarter.

Lanny: That reflects a slight mix shift to smaller events.

Lanny: All about put paid tickets are $21 2 million for the quarter.

Julia Hartz: To drive audience growth and improve event discovery, we plan to introduce and improve mobile app experience this fall. The mobile app is proven to be the best tool to develop a relationship with Eventbrite consumer audiences as it offers a much more engaging experience. We successfully diversified our revenue through Eventbrite ads, which enables creators to expand their audience reach. In Q2, Eventbrite ads revenue reached $2.9 million, more than doubling year-over-year. The service attracted over 19,500 advertisers, a 20% increase from Q1, marking record growth.

Lanny: Down 9% year to year.

Lanny: And below the trajectory, we had anticipated going into the second half.

Lanny: Turning back to ticketing revenue.

Lanny: Ticket volume decline was partially offset by a higher average ticket price and higher take rate in the quarter.

Lanny: Overall revenue per ticket was $3.98.

Lanny: The $3.39 last year.

Lanny: Revenue take rate was 10, 1% compared to eight 9% in a year ago period.

Lani Baker: The increased contribution from marketplace revenue improved unit economics and monetization, leading to a 71% gross margin in the quarter. Total operating expenses were $66.4 million in the second quarter, compared to 61 million in the second quarter a year ago. Current quarter operating expenses included a $4.4 million benefit from a legal settlement that was recorded in general and administrative costs. Excluding that, total operating expenses were $70.7 million in Q2.

Lanny: The increased contribution from marketplace revenue improved unit economics, and monetization leading to a 71% gross margin in the quarter.

Julia Hartz: Ads are proving valuable beyond direct revenue, about 25% of ads promote free events, which improves overall monetization. Creators using ads show 27% higher revenue per creator. And ads users demonstrate 10% to 20% higher retention rates and increased engagement. Given these positive trends, we see Eventbrite ads as a promising area for continued growth and enhancement of creator value.

Lanny Baker: Total operating expenses were 66.4 million in the second quarter compared to 61 million in the second quarter a year ago. Current quarter operating expenses included a $4.4 million benefit from a legal settlement that was recorded in general and administrative costs. Excluding that, total operating expenses were $70.7 million in Q2. Product development and general and administrative costs were down slightly from Q1 to Q2, excluding the legal item just noted. Sales, Marketing, and Support Expenses were $24.5 million in Q2, up from $21 million in Q1, reflecting higher chargeback expenses and investments in our sales team. As reported, adjusted EBITDA was $12.8 million for the quarter; however, that result includes the $4 million benefit from legal settlement.

Lanny: Total operating expenses were $66 4 million in the second quarter compared to 61 million in the second quarter a year ago.

Lanny: Current quarter operating expenses included a $4 4 million dollar benefit from a legal settlement that was recorded in general and administrative costs.

Lanny: Excluding that total operating expenses were $77 million in Q2.

Julia Hartz: We're also announcing two key executive appointments to continue to drive our transformation. Lanny Baker, who has served as Eventbrite's Chief Financial Officer since 2019, will take on the expanded role of Chief Operating and Financial Officer. Lanny will oversee Eventbrite's global sales, success, and support, as well as the operations teams, which are fundamental to the vibrance of our marketplace and the long-term growth of our business. Lanny will continue to lead the company's global finance function, where he's helped build a highly capable and talented team.

Lani Baker: Product development and general and administrative costs were down slightly from Q1 to Q2, excluding the legal item just mentioned. Sales, marketing, and support expenses were $24.5 million in Q2, up from $21 million in Q1, reflecting higher chargeback expenses and investments in our sales. As reported, adjusted EBITDA was $12.8 million for the quarter. However, that result includes the $4 million benefit from the legal settlement.

Lanny: Product development and general and administrative costs were down slightly from Q1 to Q2 excluding.

Lanny: Excluding the legal item just noted.

Lanny: Sales marketing and support expenses were $24 5 million in Q2.

Lanny: Up from $21 million in Q1, reflecting higher chargeback expenses and investments in our sales team.

Lanny: As reported adjusted EBITDA was $12 8 million for the quarter. However that result includes the $4 million benefit from legal settlement.

Julia Hartz: Also, I'm pleased to welcome Samantha Wu, who will join Eventbrite as our Chief Marketing Officer starting in early September. Samantha, most recently served as Chief Marketing Officer of Brain Trust, and previously held marketing leadership roles at Facebook, Visa, and American Express. She brings more than two decades of award-winning full-stack marketing experience to Eventbrite, and a fresh new perspective as we embark upon the next chapter of growth for the company.

Lanny Baker: Excluding that benefit, adjusted EBITDA was $8.5 million for the second quarter, representing a 10% margin on an operating basis. Net income was $1.1 million for the quarter, compared to a $3 million net loss one year ago. Turning to the balance sheet, cash and cash equivalents were $576 million at the end of Q2, down slightly from $580 million in the prior quarter. Eventbrite's available liquidity, as defined in our shareholder letter, was $353 million at June, and long-term debt was $358 million. In the first six months of the year, cash flow from operations totaled $31 million, and we plan to continue to manage our financial position carefully for the business and shareholders.

Lanny: Excluding that benefit adjusted EBITDA was $8 5 million for the second quarter, representing a 10% margin on an operating basis.

Lanny: Net income was $1 $1 million for the quarter compared to a $3 million net loss one year ago.

Lani Baker: Excluding that benefit, adjusted EBITDA was $8.5 million for the second quarter, representing a 10% margin on an operating basis. Net income was $1.1 million for the quarter compared to a $3 million net loss one year ago. Turning to the balance sheet, cash and cash equivalents were $576 million at the end of Q2, down slightly from $580 million in the prior quarter. Eventbrite's available liquidity, as defined in our shareholder letter, was $353 million in June, and long-term debt was $358 million.

Lanny: Turning to the balance sheet cash.

Lanny: Cash and cash equivalents were $576 million at the end of Q2.

Julia Hartz: Finally, I want to thank our outgoing CMO, Tamara Mendelson, for her exceptional contributions over the past 15 years. Tamara's leadership has been instrumental in shaping Eventbrite's brand and fostering a vibrant company culture. Tamara's impact on Eventbrite success and dedication to empowering customers all over the world will leave a lasting legacy.

Lanny: Down slightly from $580 million in the prior quarter.

Lanny: Eventbrite available liquidity as defined in our shareholder letter.

Lanny: $353 million at June.

Lanny: Long term debt was $358 million.

Julia Hartz: As we transition to land user marks, I want to read from our commitment to our core strategy and our confidence in Eventbrite's future. We operate in a large growing market with high intent, frequent users, and our platform delivers significant value to hundreds of thousands of creators. We believe our strategy is sound and adaptable to market dynamics. We've a talented dedicated team driving our initiatives forward, and our recent adjustments demonstrate our ability to listen, learn, and evolve.

Lani Baker: In the first six months of the year, cash flow from operations totaled $31 million, and we plan to continue to manage our financial position carefully for the business and shareholders. As of July, we have completed $39 million in share repurchases, reducing shares outstanding by approximately 7% since the start of the year. We anticipate total share purchases of up to $50 million this year under the $100 million authorization approved in March.

Lanny: In the first six months of the year cash flow from operations totaled $31 million.

Lanny: And we plan to continue to manage our financial position carefully for the business and shareholders.

Lanny Baker: As of July, we have completed $39 million in share repurchases, reducing shares outstanding by approximately 7% since the start of the year. We anticipate total share repurchases of up to $50 million this year under the $100 million authorization approved in March. As the results reported today indicate, the implementation of organizer fees has disrupted creator acquisition and retention for longer and to a larger degree than we anticipated. Actions we've taken to simplify options, adjust prices, refine marketing, and streamline sign-up have yielded improvements to both acquisition and retention, but have not delivered sufficient lift to alter a weakening trend in creator count and paid tickets.

Lanny: As of July we have completed $39 million and share repurchases, reducing shares outstanding by approximately 7% since the start of the year.

Lanny: We anticipate total share repurchases of up to $50 million this year under the $100 million authorization approved in March.

Julia Hartz: By focusing on creator success, consumer engagement, and continuous innovation, we're striving to position Eventbrite to capture the substantial opportunities in our market. We're not just navigating current headwinds. We believe we're building a stronger, more resilient company for the long term. We're energized by the opportunities before us and ready to realize Eventbrite's full potential.

Lani Baker: As the results reported today indicate, the implementation of organizer fees has disrupted creator acquisition and retention for longer and to a larger degree than we anticipated. Actions we've taken to simplify options, adjust prices, refine marketing, and streamline signups have yielded improvements to both acquisition and retention, but have not delivered sufficient lift to alter a weakening trend in creator count and paid tickets. Accordingly, we are lowering our business outlook for 2024, and we've taken the steps that Julia described to reduce operating costs in light of near-term headwinds.

Lanny: As the results reported today indicate.

Speaker Change: The implementation of organizer fees has disrupted creator acquisition and retention for longer and to a larger degree than we anticipated.

Speaker Change: Actions, we've taken to simplify options.

Lanny: Just prices refined marketing and streamline sign up.

Lanny Baker: With that, I'll turn it over to Lanny to walk you through our second quarter results in more detail and our outlook for the year. Lanny? Thank you, Julia. Second quarter revenue of 84.6 million was towards the lower end of our outlook range. Organizer fees and advertising revenue grew significantly in the quarter. However, ticketing revenue, which constitutes the majority of our revenue, was softer than we anticipated, down 4% year to year. A contraction in our creator count related to the implementation of organizer fees is weighing on ticket performance.

Lanny: Have yielded improvements to both acquisition and retention.

Lanny: But have not delivered sufficient lift two ultra a weakening trend in creator count and paid tickets.

Lanny Baker: Accordingly, we are lowering our business outlook for 2024, and we've taken the steps that Julia described to reduce operating costs in light of near-term headwinds. Based on current information, we anticipate third quarter revenue will be within a range of $74 to $77 million. And full year 2024 revenue will be within a range of $318 to $325 million. At the midpoint of our revenue outlook, we expect adjusted EBITDA margins, excluding the impact of severance costs and other non-routine items, to be approximately 10% for the year. The bottom line is that, as appealing as organizer fees may be from a revenue model and profitability standpoint, this change, as currently implemented, has had an unacceptable and outsized impact on marketplace inventory, creator loyalty, and ticket volume.

Lanny: Accordingly, we are lowering our business outlook for 2024.

Lanny: And we've taken the steps that Julian described to reduce operating costs in light of near term headwinds.

Lani Baker: Based on current information, we anticipate third-quarter revenue will be within a range of $74 to $77 million, and full-year 2024 revenue will be within a range of $318 to $325 million. At the midpoint of our revenue outlook, we expect adjusted EBITDA margins, excluding the impact of severance costs and other non-routine items, to be approximately 10% for the year.

Julian: Based on current information, we anticipate third quarter revenue will be within a range of $74 million to $77 million.

Speaker Change: And full year 2024 revenue will be within a range of $318 million to $325 million.

Lanny Baker: Paid creators were down 7% compared to a year ago, 177,000 versus 189,000. Events per creator edged up slightly year over year and paid tickets per event averaged 40 this quarter compared to 41 a year ago. That reflects a slight mix shift to smaller events. All of that put paid tickets at 21.2 million for the quarter down 9% year to year and below the trajectory we had anticipated going into the second half.

Julian: At the midpoint of our revenue outlook, we expect adjusted EBITDA margins, excluding the impact of severance costs and other non routine items to be approximately 10% for the year.

Lani Baker: The bottom line is that, as appealing as organizer fees may be from a revenue model and profitability standpoint, this change, as currently implemented, has had an unacceptable and outsized impact on marketplace inventory, creator loyalty, and ticket volume. Accordingly, as Julia stated, we're taking immediate steps to relieve the pressure imposed by organizer fees while holding firm to our strategic objective of building a two-sided marketplace that delivers value to event creators, consumers, and shareholders.

Speaker Change: The bottom line is that as appealing as Organiser B's, maybe from a revenue model and profitability standpoint.

Speaker Change: This change as currently implemented has had an unacceptable an outsized impact on marketplace inventory greater loyalty and ticket volume occur.

Lanny Baker: Accordingly, as Julia stated, we're taking immediate steps to relieve the pressure imposed by organizer fees, while holding firm to our strategic objective of building a two-sided marketplace that delivers value to event creators, consumers, and shareholders.

Julia: Accordingly, as Julia stated, we're taking immediate steps to relieve the pressure imposed by organizer fees, while holding firm George strategic objective of building a two sided marketplace that delivers value to event creators consumers and shareholders.

Lanny Baker: Time back to ticketing revenue, the paid ticket volume decline was partially offset by a higher average ticket price and higher take rate in the quarter. Overall revenue, particular was $3.98 compared to $3.39 last year. Revenue take rate was 10.1% compared to 8.9% in a year ago period. The increased contribution from marketplace revenue improved unit economics and monetization leading to a 71% gross margin in the quarter. Total operating expenses were 66.4 million in the second quarter compared to 61 million in the second quarter a year ago.

Lanny Baker: Scholars. The reintroduction of a free tier that allows craters to publish events into our marketplace without charge will reduce organizer fees starting in September. We will maintain our Pro subscription program for organizers seeking enhanced marketing capabilities. And we expect organizer fees to be less than $1 million per month in the fourth quarter compared to nearly $3 million per month in the second quarter. We anticipate that the new free tier will re-accelerate creator growth and paid ticket volume. However, we currently have limited visibility into how quickly and by how much these trends will improve in the near term.

Lani Baker: The reintroduction of a free tier that allows creators to publish events in our marketplace without charge will reduce organizer fees starting in September. We will maintain our pro-subscription program for organizers seeking enhanced marketing capabilities. And we expect organizer fees to be less than $1 million per month in the fourth quarter compared to nearly $3 million per month in the second quarter. We anticipate that the new free tier will re-accelerate creator growth and paid ticket volume. However, we currently have limited visibility into how quickly and by how much these trends will improve in the near term.

Julia: The reintroduction of a free tier that allows creators to publish events into our marketplace without charge.

Julian: Reduced organize their fees starting in September.

Julian: We will maintain our pro subscription program for organizers seeking enhanced marketing capabilities.

Julian: We expect organizer fees to be less than $1 million per month in the fourth quarter compared to nearly $3 million per month in the second quarter.

Julian: We anticipate that the new free tier will reaccelerate greater growth and paid ticket volume.

Lanny Baker: Current quarter operating expenses included a $4.4 million benefit from a legal settlement that was recorded in general and administrative costs. Excluding that, total operating expenses were $70.7 million in Q2. Product development and general and administrative costs were down slightly from Q1 to Q2 excluding the legal item just noted. Sales, Marketing, and Support Expenses were $24.5 million in Q2, up from $21 million in Q1, reflecting higher chargeback expenses and investments in our sales team.

Julian: However, we currently have limited visibility into how quickly and by how much these trends will improve in the near term.

Lani Baker: Our revised outlook contemplates the reduction in organizer fees that I just described and assumes for now a modest associated uplift in paid ticket volume. Beyond these changes, we're focused on several other levers that we believe will help improve creator trust and paid ticket volume. Product performance and site stability are critical to creators relying on Eventbrite during on-sales and at showtime, and we are investing in our infrastructure. Event quality is vital to our marketplace, and we have implemented detection and deterrence capabilities that lower risks for creators and consumers and reduce costs for Eventbrite.

Lanny Baker: Our revised outlook contemplates the reduction in organizer fees that I just described and assumes for now a modest associated uplift in paid ticket volume. Beyond these changes, we're focused on several other levers that we believe will help improve creator trust and paid ticket volume. Product performance and site stability are critical to creators relying on Eventbrite during on-sales and at showtime. And we are investing in our infrastructure. Event quality is vital to our marketplace, and we have implemented detection and deterrence capabilities that lower risks for creators and consumers and reduce costs for Eventbrite. Account service and customer support are essential to creator satisfaction, and we've added capacity, redundancy, training, and technology to ensure that we are reachable and responsive when creators or their attendees encounter problems. On the expense side, we've reviewed our product roadmap, organizational structure, and staffing with a focus on continuing support for our strategic transformation, increasing operating efficiency, and lowering costs.

Julian: Our revised outlook contemplates the reduction and organize their fees that I just described.

Julian: And assumes for now.

Julian: Modest associated uplift in paid ticket volume.

Julian: Beyond these changes were focused on several other levers that we believe will help improve greater trust and paid ticket volume.

Julian: Product performance and stability are critical to creators relying on eventbrite during on sales and at Showtime.

Julian: We are investing in our infrastructure.

Lanny Baker: As reported, Adjusted EBITDA was $12.8 million for the quarter, however that result includes the $4 million benefit from legal settlement. Excluding that benefit, Adjusted EBITDA was $8.5 million for the second quarter, representing a 10% margin on an operating basis. Net income was $1.1 million for the quarter, compared to a $3 million net loss one year ago. Turning to the balance sheet, cash and cash equivalents were $576 million at the end of Q2, down slightly from $580 million in the prior quarter.

Julian: Event quality is vital to our marketplace and we have implemented detection and deterrence capabilities that lower risks for creators and consumers and reduce costs for eventbrite.

Lani Baker: Account service and customer support are essential to creator satisfaction, and we've added capacity, redundancy, training, and technology to ensure that we are reachable and responsive when creators or their attendees encounter problems. On the expense side, we've reviewed our product roadmap, organizational structure, and staffing, with a focus on continuing support for our strategic transformation, increasing operating efficiency, and lowering costs. As we announced today, we've eliminated roughly 100 positions and initiated plans to reduce other non-personnel costs immediately.

Julian: Account service and customer support are essential to greater satisfaction, and we've added capacity redundancy training and technology to ensure that we are reachable unresponsive when creators or their attendees encounter problems.

Julian: On the expense side, we have reviewed our product roadmap organizational structure and stuffing with a focus on continuing support for our strategic transformation, increasing operating efficiency and lowering costs.

Lanny Baker: Eventbrite's available liquidity, as defined in our shareholder letter, was $353 million at June, and long-term debt was $358 million. In the first six months of the year, cash flow from operations totaled $31 million, and we plan to continue to manage our financial position carefully for the business and shareholders. As of July, we have completed $39 million in share repurchases, reducing shares outstanding by approximately 7% since the start of the year. We anticipate total share repurchases of up to $50 million this year under the $100 million authorization approved in March.

Lanny Baker: As we announced today, we've eliminated roughly 100 positions and initiated plans to reduce other non-personnel costs immediately. We anticipate incurring up to $7 million in expenses related to severance and cost reduction actions during the third quarter. And we expect that these actions will reduce the company's total annualized operating costs by $30 million, providing greater operating leverage.

Julian: As we announced today, we've eliminated roughly 100 positions.

Julian: And initiated plans to reduce other non personnel costs immediately.

Lani Baker: We anticipate incurring up to $7 million in expenses related to severance and cost reduction actions during the third quarter, and we expect that these actions will reduce the company's total annualized operating costs by $30 million, providing greater operating leverage.

Julian: We anticipate incurring up to $7 million in expenses related to severance and cost reduction actions during the third quarter.

Julian: And we expect that these actions will reduce the companys total annualized operating costs by $30 million, providing greater operating leverage.

Lanny Baker: I'll conclude by reiterating three points that Julia made earlier. First, we have conviction about our strategy to transform Eventbrite from platform to two-sided marketplace. As our progress on ads and consumer engagement indicate, we believe that we are steadily building the assets, expertise, and market position to differentiate Eventbrite as a demand generation partner for creators and a trusted source of great experiences for consumers. Second, we've been candid and clear-eyed about how the recent implementation of organizer fees has impacted the health and growth of our marketplace. And we're taking strong near-term action to adjust our approach based on data and feedback from creators.

Lani Baker: I'll conclude by reiterating three points that Julia made earlier. First, we have conviction about our strategy to transform Eventbrite from a platform to a two-sided marketplace. As our progress on ads and consumer engagement indicates, we believe that we are steadily building the assets, expertise, and market position to differentiate Eventbrite as a demand generation partner for creators and a trusted source of great experiences for consumers.

Julia: I'll conclude by reiterating three points of Julia made on earlier first we have conviction about our strategy to transform eventbrite from platform to two sided marketplace as our progress on ads and consumer engagement indicate we believe that we are steadily building the assets expertise and market position.

Lanny Baker: As the results reported today indicate, the implementation of organizer fees has disrupted creator acquisition and retention for longer and to a larger degree than we anticipated. Actions we've taken to simplify options, adjust prices, refine marketing and streamline sign-up have yielded improvements to both acquisition and retention, but have not delivered sufficient lift to alter a weakening trend in creator count and paid tickets. Accordingly, we are lowering our business outlook for 2024, and we've taken the steps that Julia described to reduce operating costs in light of near-term headwinds.

Julia: To differentiate eventbrite as a demand generation partner for creators and a trusted source of great experiences for consumers.

Julia: Second.

Lani Baker: We've been candid and clear-eyed about how the recent implementation of organizer fees has impacted the health and growth of our marketplace. And we're taking strong, near-term action to adjust our approach based on data and feedback from creators. Simultaneously, we have established that we can compete effectively for high-value, high-volume strategic inventory, and we know how much this matters to the vibrancy of our market. Finally, as we've done when we've faced challenges in the past, Eventbrite is acting promptly to address obstacles and manage the business and expenses efficiently. I'll now turn the call over to your questions.

Julia: We've been candid and clear eyed about how the recent implementation of organizer piece has impacted the health and growth of our marketplace.

Julia: And we're taking strong near term action to adjust our approach based on data and feedback from creators.

Lanny Baker: Simultaneously, we have established that we can compete effectively for high-value, high-volume strategic inventory. and we know how much this matters to the vibrance of our marketplace. Finally, as we've done when we face challenges in the past, Eventbrite is acting promptly to address obstacles and manage the business and expenses efficiently.

Julia: Simultaneously, we have established that we can compete effectively for high value high volume strategic inventory.

Julia: And we know how much this matters to the vibrancy of our marketplace.

Lanny Baker: Based on current information, we anticipate third quarter revenue will be within a range of $74 to $77 million. And full year 2024 revenue will be within a range of $318 to $325 million. At the midpoint of our revenue outlook, we expect adjusted EBITDA margins, excluding the impact of severance costs and other non-routine items to be approximately 10% for the year. The bottom line is that as appealing as organizer fees may be from a revenue model and profitability standpoint, this change, as currently implemented, has had an unacceptable and outsized impact on marketplace inventory, creator loyalty and ticket volume.

Julia: Finally, as we've done when we faced challenges in the past Eventbrite is acting promptly to address obstacles and manage the business and expenses efficiently.

Operator: I'll now turn the call over for your questions. We do ask that while posing your question, please pick up your handset if you're listening on speaker phone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone.

Speaker Change: I'll now turn the call over for your questions.

Operator: Certainly. Everyone at this time will be conducting a question and answer session. If you have any questions or comments, please press star 1 on your phone at this time. We do ask that while you are posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star 1 on your phone. Your first question is coming from Cameron Manson Perrone from Morgan Stanley. Your line is live.

Speaker Change: Certainly everyone. At this time will be conducting a question and answer session. If you have any questions or comments. Please press star one on your phone at this time.

Speaker Change: We do ask about posing your question. Please pick up your handset if you're listening on speaker phone to provide optimal sound quality.

Speaker Change: Once again, if you have any questions or comments. Please press star one on your phone.

Cameron Manson: Your first question is coming from Cameron Manson Perone from Morgan Stanley. Your line is live. Thank you. Thanks for taking the questions. I guess first one on the out on the revised outlook. How should we, how should we frame this? You know, it would be helpful to have some context on kind of the visibility you feel like you have in terms of the impact from these most recent changes, you know, and just kind of how you characterize the competence interval around the new outlook ranges. Should we view this as, you know, these are some pretty meaningful changes.

Speaker Change: Your first question is coming from Cameron Madsen Perone from Morgan Stanley. Your line is live.

Cameron Manson Perrone: Thank you. Thanks for taking the questions. I guess the first one on the revised outlook: how should we frame this? You know, it would be helpful to have some context on kind of the visibility you feel like you have in terms of the impact of these most recent changes and just kind of how you'd characterize the confidence interval around the new outlook ranges. Should we view this as, you know, these are some pretty meaningful changes; you have limited visibility, but you've kind of factored in some conservatism to capture that? Or do you have, you know, a higher level of conviction, and we should think about it as, you know, maybe a tighter range of potential outcomes?

Lanny Baker: Accordingly, as Julia stated, we're taking immediate steps to relieve the pressure imposed by organizer fees, while holding firm to our strategic objective of building a two-sided marketplace that delivers value to event creators, consumers and shareholders. Scholars. The reintroduction of a free tier that allows craters to publish events into our marketplace without charge will reduce organizer fees starting in September. We will maintain our Pro subscription program for organizers seeking enhanced marketing capabilities.

Speaker Change: Thank you thanks for taking the questions.

Speaker Change: First one on the on our revised outlook.

Cameron Manson Perrone: So just a little helpful context around kind of how much visibility you feel like you have into these new outlook ranges. And then second, Lenny, you gave some helpful color on how the mechanics of this are going to flow through here. But maybe I can guess a clarifying question, and then I'll ask you for some elaboration. The clarifying question is, I think you said organizer fees that you would stop charging by the end of September, less than $1 million in 4Q. I just wanted to confirm that.

Speaker Change: How should we how should we frame that.

Speaker Change: It would be helpful to have some context on kind of the visibility you feel like you have in terms of the impact from these most recent changes and just kind of how you would characterize the confidence interval around the new.

Lanny Baker: And we expect organizer fees to be less than $1 million per month in the fourth quarter compared to nearly $3 million per month in the second quarter. We anticipate that the new free tier will re-accelerate creator growth and paid ticket volume. However, we currently have limited visibility into how quickly and by how much these trends will improve in the near term. Our revised outlook contemplates the reduction in organizer fees that I just described and assumes for now a modest associated uplift in paid ticket volume.

Speaker Change: Outlook ranges should we view. This is is there some pretty meaningful changes you have limited visibility, but you've kind of factored in some conservatism to capture that or do you have.

Cameron Manson: You have limited visibility, but you've kind of factored in some conservatism to capture that, or do you have, you know, a higher level of conviction and we should think about it as, you know, maybe a tighter range of potential outcomes.

Speaker Change: Higher level of conviction and we should think about it as you know.

Speaker Change: Yes.

Speaker Change: Maybe a tighter range of potential outcomes.

Cameron Manson: I just a little helper context around kind of how much visibility you feel like you have into these new outlook ranges. And then secondly, you get some, some helpful color on how the mechanics of this are going to flow through here. But, but maybe I guess a clarifying question, and then I'll ask you for some elaboration. The clarifying question is, I think you said organizer fees, you will stop charging by the end of September, less than 1 million and 4Q. I just wanted to confirm that. And then, you know, as we think about this in a post organizer fee era, should we, you have a pro plan, I guess, how does that compare to boost in terms of what we should think about that business.

Speaker Change: It's a little helper context around kind of how much visibility you feel like you have into these new outlook ranges and then.

Speaker Change: Secondly, I know you gave some some helpful.

Speaker Change: Color on that.

Speaker Change: The mechanics of this are going to flow through here.

Speaker Change: But maybe I.

Speaker Change: I guess, a clarifying question and then I'll ask you for some elaboration.

Speaker Change: The clarifying question is I think you said organize their fees you will stop charging by the end of September less than $1 million in <unk>.

Lanny Baker: Beyond these changes, we're focused on several other levers that we believe will help improve creator trust and paid ticket volume. Product performance and site stability are critical to creators relying on Eventbrite during on sales and at showtime. And we are investing in our infrastructure. Event quality is vital to our marketplace and we have implemented detection and deterrence capabilities that lower risks for creators and consumers and reduce costs for Eventbrite. Account service and customer support are essential to creator satisfaction and we've added capacity, redundancy, training and technology to ensure that we are reachable and responsive when creators or their attendees encounter problems.

Speaker Change: Wanted to confirm that and then as we.

Cameron Manson Perrone: And then, you know, as we think about this in a post-organizer fee era, um... Should we have a Pro plan? I guess, how does that compare to Boost in terms of what we should think about that business or subscription revenue? Maybe just in terms of revenue build, how you see these changes kind of rolling through geographically, a little bit more detail in terms of how we should think about the mechanics here over the next couple of quarters would be helpful. Thanks, guys. Sorry, I know that was a lot.

Speaker Change: As we think about this in a post organize their fee.

Speaker Change: Uh huh.

Speaker Change:

Speaker Change: Should we use.

Speaker Change: You have a pro plan I guess, how does that compare to boost in terms of what we should think about that business or a subscription generating.

Cameron Manson: Or subscription generating. And maybe just in terms of the revenue bills, how you see these changes kind of rolling through geographically. A little bit more detail in terms of how we should think about the mechanics here over the next couple of quarters will be helpful. Thanks, guys. Sorry, I know there was a lot.

Speaker Change: And.

Speaker Change: Maybe just in terms of the revenue build how you see these changes kind of rolling through geographically.

Lanny Baker: On the expense side, we've reviewed our product roadmap, organizational structure and staffing with a focus on continuing support for our strategic transformation, increasing operating efficiency and lowering costs. As we announced today, we've eliminated roughly 100 positions and initiated plans to reduce other non-personnel costs immediately. We anticipate incurring up to $7 million in expenses related to severance and cost reduction actions during the third quarter. And we expect that these actions will reduce the company's total annualized operating costs by $30 million, providing greater operating leverage.

Speaker Change: Bit more detail in terms of how we should think about the mechanics here over the next couple of quarters would be helpful. Thanks, guys side I know there was a lot.

Lanny Baker: Thank you for Cameron. Sorry, our, our prior outlook had, as we've expressed, anticipated that paid ticket volume would recover in the second half and be about even for the full year with where we were in 2023. Based on current expectations, we're anticipating that paid ticket volume will continue to soften in the second half of 2023 and will be down in the low double-digit percentages for the full year of 2020.

Lani Baker: Thanks, Cameron. Our prior outlook had, as we've expressed, anticipated that paid ticket volume would recover in the second half and be about even for the full year with where we were in 2023. Based on current expectations, we're anticipating that paycheck volume will continue to soften in the second half of 2023 and will be down in the low double-digit percentages for the full year of 2024. Within that is the current trend that we are seeing in our paid ticket volume and our creator count, the creator count that we have today, the inventory that we have on the site, and looking into our funnel, what we anticipate for the coming months.

Kim: Thanks Kim.

Speaker Change: For Cameron sorry, a R.

Speaker Change: Our prior outlook had as we've expressed anticipated the paid ticket volume would recover in the second half and be about even for the full year with where we were in 2023.

Speaker Change: Based on current expectations, we're anticipating that paid ticket volume will continue to soften in the second half of 2023 and will be down in the low double digit percentages for the full year of 2024.

Lanny Baker: for. Within that is the current trends that we are seeing in our pay ticket volume and our creator count. The creator count that we have today, the inventory that we have on the site, and looking into our funnel, what we anticipate for coming months. Note that as we move through the year, the year-earlier comparisons get a little bit easier in the fourth quarter, given the introduction a year ago of the organizer fees. And within the outlook we've provided, we've anticipated a very modest initial uplift in paid ticket volume related to the introduction of the free tier.

Speaker Change: Within that is the current trends that we're seeing in our paid ticket volume and our creator count the greater count that we have today the inventory that we have on the site.

Lanny Baker: I'll conclude by reiterating three points that Julia made earlier. First, we have conviction about our strategy to transform Eventbrite from platform to two-sided marketplace. As our progress on ads and consumer engagement indicate, we believe that we are steadily building the assets, expertise and market position to differentiate Eventbrite as a demand generation partner for creators and a trusted source of great experiences for consumers. Second, we've been candid and clear-eyed about how the recent implementation of organizer fees has impacted the health and growth of our marketplace.

Speaker Change: And looking into our funnel, what we anticipate for coming months.

Lani Baker: Note that as we move through the year, the year-earlier comparisons get a little bit easier in the fourth quarter, given the introduction a year ago of the organizer piece. And within the outlook that we've provided, we've anticipated a very modest initial uplift in paid ticket volume related to the introduction of the free tier. That free tier will be introduced within a month. And let me talk, you asked about it, about the outlook we have for organizer fees and how that will play out.

Speaker Change: Note that as we move through the year.

Speaker Change: A year earlier comparisons get a little bit easier in the fourth quarter, given the introduction a year ago of the organizer fees.

Speaker Change: And within the outlook, we've provided we've anticipated a very modest initial uplift in paid ticket volume related to the introduction of the free tier that free tier will be introduced within a month.

Lanny Baker: That free tier will be introduced within a month. And let me talk. You asked about it, about the outlook we have for organizer fees and how that will play out. There is a free tier today for smaller events. There will be shortly a free tier for events of any size. We anticipate that those who are paying on a per event basis today will move into the free tier. And we may see, and we anticipate seeing some migration of current subscribers into the free tier as well. So the organizer fees, which were approaching $3 million per month in the third quarter, more than $8 million revenue for the quarter, we anticipate that those will be in the neighborhood of $1 million a month by the fourth quarter and two to $3 million of organizer fee revenue by the time we get to the fourth quarter.

Speaker Change: And let me talk you asked about it about the outlook, we have for organizer fees and how that will play out.

Lanny Baker: And we're taking strong near-term action to adjust our approach based on data and feedback from creators. Simultaneously, we have established that we can compete effectively for high-value, high-volume strategic inventory, and we know how much this matters to the vibrance of our marketplace. Finally, as we've done when we face challenges in the past, Eventbrite is acting promptly to address obstacles and manage the business and expenses efficiently.

Lani Baker: There is a free tier today for smaller events, and there will be a free tier for events of any size shortly. We anticipate that those who are paying on a per event basis today will move into the free tier. And we may see, and we anticipate seeing some migration of current subscribers into the free tier as well. So the organizer fees, which were approaching $3 million per month in the third quarter, accounted for more than $8 million of revenue for the quarter.

Speaker Change: There is a free tier today for smaller events, there will be shortly a free tier four events of any size.

Speaker Change: We anticipate that those who are paying on a per event basis today will move into the free tier and we may see and we anticipate seeing some migration of current subscribers into the free tier as well so the organizer fees which were.

Operator: I'll now turn the call over for your questions. We do ask that while posing your question, please pick up your handset if you're listening out speaker phone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone.

Speaker Change: Approaching $3 million per month in the third quarter more than $8 million revenue for the quarter, we anticipate that those will be in the neighborhood of $1 million a month.

Lani Baker: We anticipate that those will be in the neighborhood of $1 million a month by the fourth quarter and $2 to $3 million of organizer fee revenue by the time we get to the fourth quarter. Coming from creators on the subscription plan, on our premium plan, staying with that plan, it provides enhanced marketing support. Looking longer term, we will introduce a market visibility premium tier. I'll let Julia talk about that.

Speaker Change: By the fourth quarter and $2 million to $3 million of organizer fee revenue by the time, we get to the fourth quarter coming from creators on the.

Julia Hartz: Coming from creators on the subscription plan on our premium plan, staying with that plan, it has enhanced marketing support. Looking longer term, we will introduce a market visibility premium tier.

Speaker Change: Subscription plan on our premium plan.

Cameron Mansson: Your first question is coming from Cameron Manson Perone from Morgan Stanley. Your line is live. Thank you. Thanks for taking the questions. I guess first one on the out on the revised outlook. How should we, how should we frame this? You know, it would be helpful to have some context on kind of the visibility you feel like you have in terms of the impact from these most recent changes, you know, and just kind of how you characterize the competence interval around the new outlook ranges.

Speaker Change: With that plan it has enhanced marketing support.

Speaker Change: Looking longer longer term, we will introduce a.

Speaker Change: Market visibility premium tier I'll, let Julia talk about that yeah sure. So we talked about the two tier approach that will be taking the free tier that removes the barriers to entry, allowing theaters to list their events without fees, which we think is really important especially for our self sign on business and the second is a premium subscription tier that will offer enhanced <unk>.

Julia Hartz: I'll let Julia talk about that.

Julia Hartz: Yeah, sure. So we talked about the two-tier approach that we'll be taking. The free tier that removes the barriers to entry, allowing creators to list their events without fees, which we think is really important, especially for our self-sign-on business. And the second is a premium subscription tier that will offer enhanced marketplace visibility, demand generation tools, and targeted support. And I point out the differences between this tier and Boost as directly tying into our marketplace dynamics.

Julia Hartz: Yeah, sure. So we talked about the two-tier approach that we'll be taking. The free tier that removes barriers to entry, allowing creators to list their events without fees, which we think is really important, especially for our self-sign on business. And the second is a premium subscription tier that will offer enhanced marketplace visibility, demand generation tools, and targeted support.

Speaker Change: <unk> placed visibility demand generation tools and targeted support they point out the differences from this year to boost is directly tying into our marketplace dynamics. We've developed a different type of exposure that creators can access by being in the marketplace. We've also strength.

Cameron Mansson: Should we view this as, you know, these are some pretty meaningful changes. You have limited visibility, but you've kind of factored in some conservatism to capture that or do you have, you know, a higher level of conviction and we should think about it as, you know, as maybe a tighter range of potential outcomes. I just a little helper context around kind of how much visibility you feel like you have into these new outlook ranges.

Julia Hartz: Nice point out; the difference is from this tier to boost, as directly tying into our marketplace dynamics. We've developed a different type of exposure that creators can access by being in the marketplace. We've also strengthened the demand generation, with discovery usage being up 17 percent, our overall growth of users at 93 million across web and mobile, our consumer app users being up 22 percent. So we're leveraging the exposure that events will have in the marketplace, combining it with the strength of Eventbrite ads. And driving the value proposition of, not only can you gain greater visibility by subscribing to the premium tier in the future, you also get more tailored support to help you lean into that growth.

Julia Hartz: We've developed a different type of exposure that creators can access by being in the marketplace. We've also strengthened demand generation with discovery usage being up 17%, our overall growth of users at 93 million across web and mobile, and our consumer app users being up 22%. We're leveraging the exposure that events will have in the marketplace, combining it with the strength of Eventbrite ads, and driving the value proposition of not only can you gain greater visibility by subscribing to the premium tier in the future, but you also get more tailored support to help you lean into that growth.

Speaker Change: And the demand generation with discovery usage being up 17%, our overall growth of our of users at $93 million across web and mobile our consumer app users being up 22%. So we're leveraging leveraging the exposure that events will have in the marketplace combining it with the strength.

Cameron Mansson: And then secondly, you get some, some helpful color on how the mechanics of this are going to flow through here. But, but maybe I guess a clarifying question and then I'll ask you for some elaboration. The clarifying question is, I think you said organizer fees, you will stop charging by the end of September, less than 1 million and 4Q. I just wanted to confirm that. And then, you know, as we, as we think about this in a post organizer fee era, should we, you have a pro plan, I guess, how does that compare to boost in terms of what we should think about that business. Or subscription generating. And maybe just in terms of the revenue bills, how you see these changes kind of rolling through geographically.

Speaker Change: <unk> Eventbrite ads and driving the value proposition of not only can you gain greater visibility by subscribing to the premium tier in the future, but you also get more tailored support to help you lean into that growth, we've been able to segment our creators over the last year as we observe.

Julia Hartz: We've been able to segment our creators over the last year as we observed their behavior, and we know that there is a very strong willingness to pay for demand generation, greater visibility, and also an appreciation of the tools that we give to run better marketing campaigns.

Julia Hartz: We've been able to segment our creators over the last year as we observe their behavior, and we know that there is a very strong willingness to pay for demand generation, greater visibility, and also an appreciation of the tools that we give to run better marketing campaigns.

Speaker Change: Their behavior and we know that there is a very strong willingness to pay for demand generation and greater visibility and also an appreciation of the tools that we give to run better marketing campaigns.

Operator: James. How awful.

Operator: Helpful. Thank you both.

Operator: Thank you both.

Speaker Change: Helpful. Thank you both.

Operator: Thank you.

Justin Patterson: Thank you. Your next question is coming from Justin Patterson from KeyBank Capital. Your line is live.

Speaker Change: Thank you. Your next question is coming from Justin Patterson from Keybanc capital. Your line is live.

Justin Patterson: Your next question is coming from Justin Patterson, from KeyBank Capital. Your line is live. Great. Thank you.

Justin Patterson: Great, thank you. First, maybe just touching on the new organizer or the new fee structure in general. I'm just curious, you know, maybe diving a little bit more into what drove the decision to roll back those organizer fees and simplify the fee structure. What was really the tipping point in making that decision?

Justin Patterson: Great. Thank you.

Lanny Baker: A little bit more detail in terms of how we should think about the mechanics here over the next couple quarters will be helpful. Thanks guys. Sorry, I know there was a lot. Thank you for Cameron. Sorry, our, our prior outlook had as we've expressed anticipated that paid ticket volume would recover in the second half and be about even for the full year with where we were in 2023. Based on current expectations, we're anticipating that paid ticket volume will continue to soften in the second half of 2023 and will be down in the low double digit percentages for the full year of 2020, for.

Justin Patterson: First, maybe just touching on the new organizer or the new fee structure in general. Just curious, you know, maybe diving in a little bit more into what drove the decision to roll back those organizer fees and simplify the fee structure. What was really the tipping point in making that decision, and then maybe just updated thoughts on monetization overall.

Justin Patterson: First maybe just touching on the new organizer.

Speaker Change: The new fee structure in general.

Justin Patterson: Just curious maybe diving a little bit more to what drove the decision to rollback those.

Justin Patterson: <unk>.

Speaker Change: Rollback, those organizer fees and simplified the fee structure, what was really the tipping point in making that decision and then maybe just updated thoughts on monetization overall.

Julia Hartz: And then maybe just updated thoughts on monetization overall. And then second... Just touching on maybe some of the sales-driven creator growth. We'd love to hear more about the success of that, you know, kind of as we're inching a quarter along in building up the sales force. It seems like, you know, you've done pretty well getting large creators. I think they're up 60% year over year in 2Q. So how should we expect that to impact creator growth and ticket growth and any investments we should be mindful of associated with that? Thanks.

Justin Patterson: And then second, just touching on maybe some of the sales-driven creator growth. We'd love to hear more about the success of that, you know, kind of as we're inching a quarter in building up the sales force. It seems like you know you've done pretty well getting large creators. I think they're up 60% year-year into Q. So how should we expect that to impact creator growth and ticket growth and any investments we should be mindful of associated with that. Thanks.

Justin Patterson: And then second.

Speaker Change: Just touching on maybe some of the sales driven.

Speaker Change: Create a growth.

Speaker Change: Hmm.

Speaker Change: I'd love to hear more about the success of that kind of as we entered the quarter in building out the sales force.

Speaker Change: Seems like you've done pretty well.

Lanny Baker: Within that is the current trends that we are seeing in our pay ticket volume and our creator count. The creator count that we have today, the inventory that we have on the site and looking into our funnel, what we anticipate for coming months. Note that as we move through the year, the year earlier comparisons get a little bit easier in the fourth quarter, given the introduction a year ago of the organizer fees.

Speaker Change: The large creators I think they're up 60% year over year in <unk>.

Speaker Change: So how we should expect that to impact to create a growth in ticket growth.

Speaker Change: And any investments, we should be mindful of associated with that.

Julia Hartz: Thanks, Justin. So the decision to roll forward with a new structure and reintroduce a free tier was really driven by the clear data and feedback from our creators as we've implemented this new structure. While, you know, we based our initial structure on thorough research, as I said, the real world results have provided these valuable insights, and we're taking action based on what we see in our creator responses to this structure.

Julia Hartz: Thanks, Justin. So the decision to roll forward with a new structure and reintroduce a free tier was really driven by clear data and feedback from our creators as we implemented this new structure. While we based our initial structure on thorough research, as I said, the real world results have provided these valuable insights, and we're taking action based on what we see in our creator responses to this structure. I think, in plain speak, the event capacity gate in the current structure is too complex and doesn't align with the value that we deliver for creators.

Speaker Change: Thanks, Justin so the decision to roll forward with a new structure and reintroduce a free tier was really driven by the clear data and feedback from our creators.

Speaker Change: As we've implemented this new structure.

Lanny Baker: And within the outlook we've provided, we've anticipated a very modest initial uplift in paid ticket volume related to the introduction of the free tier. That free tier will be introduced within a month. And let me talk, you asked about it, about the outlook we have for organizer fees and how that will play out. There is a free tier today for smaller events. There will be shortly a free tier for events of any size.

Speaker Change: Well you know we based our initial structure on thorough research as I said the real World results have provided these valuable insights and we're taking action based on on what we see in our creator responses to this structure I think like in claims because the event capacity gate in the current structure.

Julia Hartz: I think like just in plain speak, the event capacity gate in the current structure is, it's too complex and doesn't align with the value that we deliver for creators. And we have seen that in the creator turn and the paid ticket volume depression, you know, as we've moved through these changes and we've settled into this new structure. So what we've done is offered different release valves that give us the confidence that a free tier will take up the creators who are more price sensitive, but we've also understood the value that our creators will put in the demand that we can drive and the value of the marketplace visibility.

Speaker Change: Is it.

Speaker Change: It's too complex and doesn't align with the value that we deliver for creators and we have seen that in the creator churn in the P ticket volume Depression, and you know as we've as we've moved through these changes and leads and we settled into.

Julia Hartz: And we have seen that in the creator churn and the paid ticket volume depression as we've moved through these changes and we've and we've settled into this new structure. So what we've done is offered different release valves that give us the confidence that a free tier will pick up creators who are more price sensitive. But we've also understood the value that our creators will put on the demand that we can drive and the value of marketplace visibility.

Lanny Baker: We anticipate that those who are paying on a per event basis today will move into the free tier. And we may see and we anticipate seeing some migration of current subscribers into the free tier as well. So the organizer fees which were approaching $3 million per month in the third quarter, more than $8 million revenue for the quarter, we anticipate that those will be in the neighborhood of $1 million a month by the fourth quarter and two to $3 million of organizer fee revenue by the time we get to the fourth quarter.

Speaker Change: This new structure. So what we've done is offered different relief valves that give us the confidence that a free tier will pick up the creators who are more price sensitive, but we've also and we have also understood the value that our creators will pull.

Speaker Change: But in the demand that we can drive in the value of the marketplace visibility. So we've learned that they have a willingness to pay for for value, but they need to see that clear connection between the pricing and their event success on Eventbrite, which we don't feel the current structure serves well and so as a two sided marketplace I think the hell.

Julia Hartz: So we've learned that they have a willingness to pay for value, but they need to see that clear connection between the pricing and their event success on Eventbrite, which we don't feel the current structure serves well. And so, as a two-sided marketplace, I think the health of our creator ecosystem is absolutely crucial. And we know that the fundamental unit of a ticket and the consumer is the most important place for us to lean into. And we just didn't feel that the event capacity structure, you know, ultimately led us to that right place.

Julia Hartz: So we've learned that they have a willingness to pay for value, but they need to see that clear connection between the pricing and their event success on Eventbrite, which we don't feel the current structure serves well.

Lanny Baker: Coming from creators on the subscription plan on our premium plan, staying with that plan, it has enhanced marketing support. Looking longer term, we will introduce a market visibility premium tier. I'll let Julia talk about that. Yeah, sure. So we talked about the two tier approach that we'll be taking. The free tier that removes barriers to entry, allowing creators to list their events without fees, which we think is really important, especially for our self-sign on business.

Julia Hartz: And so, as a two-sided marketplace, I think the health of our creator ecosystem is absolutely crucial, and we know that the, you know, fundamental unit of a ticket and the consumer is the most important place for us to lean into, and we just didn't feel that the event capacity structure, you know, in the end, let us to that right place. So we're changing tax, and we're going to be leaning into the creator of royalty that we have, as well as showing creators that we can help them sell more tickets and really providing that value over time.

Lanny Baker: And the second is a premium subscription tier that will offer enhanced marketplace visibility, demand generation tools, and targeted support. Nice point out, the difference is from this tier to boost as directly tying into our marketplace dynamics. We've developed a different type of exposure that creators can access by being in the marketplace. We've also strengthened the demand generation with discovery usage being up 17 percent our overall growth of users at 93 million across web and mobile, our consumer app users being up 22 percent.

Speaker Change: Our creator ecosystem is absolutely crucial and we know that the fundamental unit of a ticket and the consumer is the most important place for ethylene into and we just didn't feel that the event capacity structure. You know in the end a letter led us to that right place. So we're.

Lani Baker: So we're changing tactics, and we're going to be leaning into the creator loyalty that we have, as well as showing creators that we can help them sell more tickets and really providing that value over time. The final thing I'll say is that, even though we're going through this pretty rough transition, I think we hold a very strong position of where we can provide value for creators.

Speaker Change: <unk> tax and we're going to be leaning into the creator of loyalty that we have as well as showing creators that we can help them sell more tickets and really providing that value over time.

Julia Hartz: The final thing I'll say is that, you know, I think that we, even though we're going through this pretty rough transition, I think we pulled a very strong command of where we can provide value for creators. And again, it's much more toward building that demand and visibility and helping them achieve greater growth by virtue of being on the marketplace and the validity that our brand affords them.

Speaker Change: The final thing I'll say is that you know I think that we even though we're going through this pretty rough transition I think we hold a very strong.

Speaker Change: Command of where we can provide value for creators and again its much more toward building that demand and visibility and helping them achieve greater growth by virtue of being on the marketplace and the validity that our brand affords them and less so.

Lani Baker: And again, it's much more toward building that demand and visibility and helping them achieve greater growth by virtue of being in the marketplace and the validity that our brand affords them. And less so, you know, having a more brute force structure of an imposed fee just to use Eventbrite in general. So I think we've appreciated that through this experience, and it'll be reflected in our evolved structure going forward. Lenny, do you want to talk about sales-driven creator growth? Sure. And then, yeah, anything else around organizer fees? I think you covered up on organizer fees, but we can take more.

Julia Hartz: And less so, you know, sort of playing a more having a more brute for our structure of imposed the just-to-use eventbred in general. So I think we've appreciated that through this experience, and it'll be reflected in our evolved structure going forward.

Lanny Baker: So we're leveraging the exposure that events will have in the marketplace, combining it with the strength of Eventbrite ads. And driving the value proposition of, not only can you gain greater visibility by subscribing to the premium tier in the future, you also get more tailored support to help you lean into that growth. We've been able to segment our creators over the last year as we observe their behavior and we know that there is a very strong willingness to pay for demand generation greater visibility and also an appreciation of the tools that we give to run better marketing campaigns. James. How awful. Thank you both. Thank you.

Speaker Change: <unk>.

Speaker Change: It's sort of playing.

Speaker Change: I am more having a more brute force structure of our imposed the just to use eventbrite in general. So I think we've appreciated that through this experience and it'll be reflected in our our evolve structure going forward.

Lanny Baker: Lenny, do you want to talk about the sales-driven creator growth? Sure.

Lenny: Lenny do you want to talk about the sales driven creator growth sure and then yeah anything else around organizing fees.

Lanny Baker: And then, yeah, anything else around organized. I think you covered up on the organizer piece, but we can take more questions if there are there on the sales side of our business, which really is going after the strategic inventory. We look closely at consumer demand across our surfaces by metro and by category, and then send our outbound sales team out to try to acquire inventory in those categories, where we have the strongest demand. And having that window into consumer demand has proven to be a very effective tool for us as we compete in the marketplace, spring craters, into Eventbrite.

Lani Baker: I think you covered up on the organizer piece, but we can take more questions if there are any. On the sales side of our business, which really is going after the strategic inventory, we look closely at consumer demand across our surfaces by metro and by category and then send our outbound sales team out to try to acquire inventory in those categories where we have the strongest demand. And having that window into consumer demand has proven to be a very effective tool for us as we compete in the marketplace to bring creators into Eventbrite.

Lenny: Covered off on the organizer piece, but we can take more questions. If there are there on the sales side of our business, which really is going after the strategic inventory, we look closely at consumer demand across our surfaces by metro and by category and then send our outbound sales team out to try to acquire.

Speaker Change: Inventory in those categories, where we have the strongest demand and having that window into consumer demand has proven to be a very effective tool for us as we compete in the marketplace to bring creators into eventbrite.

Justin Patterson: Your next question is coming from Justin Patterson, from Keybank Capital. Your line is live. Great. Thank you. First, maybe just touching on the new organizer or the new fee structure in general. Just curious, you know, maybe diving in a little bit more into what drove the decision to roll back those, roll back those organizer fees and simplify the fee structure, what was really the tipping point in making that decision, and then maybe just updated thoughts on monetization overall.

Lani Baker: The sales organization is under new leadership as of about three months ago and building some strong momentum. We are getting stronger in coordination between sales, onboarding, support, and service. And in time, we're starting to see improvements in customer satisfaction as a result. Our new bookings during the quarter through our sales team were up about 60% year on year. And when we look at new bookings, they're only a portion, sort of a mid-teens percent portion of our tickets come from brand new bookings through the sales channel. Those sales relationships tend to be three- and four-year agreements in most cases.

Lanny Baker: The sales organizations under new leadership as of about three months ago and building some strong momentum. We are getting stronger on coordination between sales, onboarding support, and service. And in time, we're starting to see improvements in customer satisfaction as a result. Our new bookings during the quarter through our sales team were up about 60% year on year. And when we look at new bookings, there, there are only a portion, sort of a mid-teens per portion of our tickets come from brand new bookings through the sales channel. Those sales relationships tend to be three and four year agreements in most cases, but it's encouraging to have that momentum. About a quarter of those new bookings this year.

Speaker Change: The sales organizations under new leadership as of about three months ago and building. Some strong momentum we are getting stronger on coordination between sales onboarding support and service.

Speaker Change: And in time, we are starting to see improvements in customer satisfaction as a result, our new bookings during the quarter through our sales team, we're up about 60% year on year.

Justin Patterson: And then second, just touching on maybe some of the sales driven creator growth. We'd love to hear more about the success of that, you know, kind of as we're inching a quarter in building up the sales force. It seems like, you know, you've done pretty well getting large creators. I think they're up 60% year-year into Q. So how we should expect that to impact creator growth and ticket growth and any investments we should be mindful of associated with that. Thanks. Thanks, Justin.

Speaker Change: When we look at our new bookings there are only a portion.

Speaker Change: Sort of a mid teens per portion of our tickets come from brand new bookings through the sales channel those sales relationships tend to be three and four your agreements in most cases, but it's encouraging to have that momentum.

Lani Baker: But it's encouraging to have that momentum. About a quarter of those new bookings this year are customers who have previously left the Eventbrite platform coming back now to be part of our marketplace. And that progress has meant that, for instance, in the second quarter, year-over-year comparisons improved by about six percentage points in terms of ticket volume through our sales channel. So we're encouraged by the progress that we have there. We think we have a strong go-to-market strategy.

Speaker Change: About a quarter of those new bookings this year, our customers who had previously left the eventbrite platform coming back now to be part of our marketplace and that progress has meant that.

Lanny Baker: Our customers who had previously left the Eventbrite platform, coming back now to be part of our marketplace. And that progress has meant that, you know, for instance, in the second quarter, the year-over-year comparisons improved by about six percentage points in terms of ticket volume through our sales channel. So we're encouraged by the progress that we have there.

Julia Hartz: So the decision to roll forward with a new structure and reintroduce a free tier was really driven by the clear data and feedback from our creators as we've implemented this new structure. While, you know, we based our initial structure on thorough research, as I said, the real world results have provided these valuable insights and we're taking action based on what we see in our creator responses to this structure. I think like just in plain speak, the event capacity gate in the current structure is, it's too complex and doesn't align with the value that we deliver for creators.

Speaker Change: For instance, in the second quarter the.

Speaker Change: Year over year comparisons.

Speaker Change: <unk> by about six percentage points in terms of ticket volume through our sales channel. So.

Speaker Change: We're encouraged by the progress that we have there. We think we have a strong go to market strategy and in terms of investments they tend to be fairly.

Julia Hartz: And we have seen that in the creator turn and the paid ticket volume depression, you know, as we've moved through these changes and we've settled into this new structure. So what we've done is offered different release valves that give us the confidence that a free tier will take up the creators who are more price sensitive, but we've also, we've also understood the value that our creators will put in the demand that we can drive and the value of the marketplace visibility.

Lanny Baker: We think we have a strong go to market strategy. And in terms of investments, they tend to be fairly manageable and lower-risk investments in bringing on additional sales people where we see market opportunity. We've grown the sales force over the last year, though most of that growth occurred at the 12 months ago rather more recently. And as we look at results that we continue with continued strengthen those numbers, we may add a bit to our sales force, but not in a way that'll be problematic. The payback on that is pretty strong. We've also seen very good sales rep productivity gains year over year.

Lani Baker: And in terms of investments, they tend to be fairly manageable and lower-risk investments in bringing on additional salespeople where we see market opportunity. We've grown the sales force over the last year, though most of that growth occurred 12 months ago rather than more recently. And as we look at results, we continue to strengthen those numbers. We may add a bit to our sales force, but not in a way that'll be problematic. The payback on that is pretty strong. We've also seen very good sales rep productivity gains year-over-year.

Speaker Change: Manageable and lower risk investments in bringing on additional salespeople, where we see market opportunity we've got.

Julia Hartz: So we've learned that they have a willingness to pay for value, but they need to see that clear connection between the pricing and their event success on event right, which we don't feel the current structure serves well. And so as a two-sided marketplace, I think the health of our creator ecosystem is absolutely crucial and we know that the, you know, fundamental unit of a ticket and the consumer is the most important place for us to lean into and we just didn't feel that the event capacity structure, you know, in the end, let us to that right place.

Speaker Change: Growing the sales force over the last year, though most of that growth occurred at the 12 months ago, rather more recently.

Speaker Change: And as we look at results that we can do with consumers continue to strengthen those numbers, we may add a bit to our sales force, but not in a way that'll be.

Speaker Change: The payback on that is pretty strong. We've also seen very good sales rep productivity gains year over year.

Operator: Great.

Speaker Change: Great. Thank you.

Operator: Thank you. Once again, everyone, if you have any questions or comments, please press star, then 1 on your phone. Your next question is coming from Hamed Khorsand from BWS Financial. Your line is live. Hi, so the first question...

Hamed Khorsand: Once again, everyone, if you have any questions or comments, please press star, then one on your phone. Your next question is coming from Hobbit Corsand from BWS Financial. Your line is live. Hi, so the first question I had was just given the trajectory of what you're seeing in the ticket volume.

Speaker Change: Thank you once again, everyone. If you have any questions or comments. Please press star then one on your phone.

Javier <unk>: Your next question is coming from Javier <unk> from Bwl financial your line is live.

Hamed Khorsand: Hi, so the first question I had was, just given the trajectory of what you're seeing with the ticket volume, why took it so long to actually recognize that you had to revert back to a free model? Why a whole year?

Javier <unk>: Hi, So first question I had was.

Javier: Just given the trajectory of what Youre seeing in the ticket volume.

Hamed Khorsand: What took it so long to actually recognize this had to, you had to revert back to a free model. Why, why a whole year?

Javier <unk>: What took so long to actually recognize this had to you have to revert back to a free model y Y a whole year.

Lanny Baker: Thanks. We saw, as we said earlier this year, we expected some disruption to our pay ticket volume when we introduced the organ uncertainties, and more recently, the impact on creator acquisition and retention has been greater than we anticipated. And frankly, that impact has gone on longer than we anticipated. Over the last six months, nine months, we have fielded an array of changes to our organizer fee model, including changing pricing levels, simplifying packages, streamlining onboard, each of which has had a positive impact on acquisition and, in some of the cases, retention as well.

Lani Baker: Thanks. We saw, as we said earlier this year, we expected some disruption to our paid ticket volume when we introduced organizer fees. And more recently, the impact on crater acquisition and retention has been greater than we anticipated, and frankly, that impact has gone on longer than we anticipated. Over the last six months, nine months, we have fielded an array of changes to our organizer fee model, including changing pricing levels, simplifying packages, streamlining onboarding, each of which has had a positive impact on acquisition and, in some cases, retention as well.

Speaker Change: Thanks.

Speaker Change: We saw.

Speaker Change: As we said earlier this year, we expected some disruption to our paid ticket volume when we introduced the organizer fees and more.

Speaker Change: More recently the impact on greater acquisition and retention has been greater than we anticipated and frankly that impact has gone on longer than we anticipated over the last six months nine months, we have fielded an array of changes to our organized repeat model, including.

Julia Hartz: So we're changing tax and we're going to be leaning into the creator of royalty that we have as well as showing creators that we can help them sell more tickets and really providing that value over time. The final thing I'll say is that, you know, I think that we, even though we're going through this pretty rough transition, I think we pulled a very strong command of where we can provide value for creators.

Speaker Change: Changing pricing levels simplifying packages streamlining onboard each of which has had a positive impact on acquisition.

Speaker Change: Some cases retention as well, but in aggregate they have not been sufficient to turn a trend that has continued to soften and.

Lanny Baker: But in aggregate, they have not been sufficient to turn a trend that has continued to soften, and as we've looked at it over the last few weeks, month, it's become clear that larger, more significant, bolder action is appropriate, and we are, we're excited to introduce, we're looking forward to introducing a free tier across all event capacity levels.

Julia Hartz: And again, it's much more toward building that demand and visibility and helping them achieve greater growth by virtue of being on the marketplace and the validity that our brand affords them. And less so, you know, sort of playing a more having a more brute for our structure of imposed the just-to-use eventbred in general.

Lani Baker: But in aggregate, they have not been sufficient to reverse a trend that has continued to soften. And as we've looked at it over the last few weeks, months, it's become clear that larger, more significant, bolder action is appropriate. And we are, you know, we're excited to introduce, we're looking forward to introducing a free tier across all event capacity levels.

Speaker Change: As we've looked at it over the last few weeks months.

Speaker Change: It's become clear that larger more significant bolder action as appropriate.

Speaker Change: And we are we're excited to introduce we're looking forward to introducing a free tier across all of that capacity level.

Lanny Baker: So I think we've appreciated that through this experience and it'll be reflected in our evolved structure going forward.

Julia Hartz: And my other question was, do you have a go-to-market kind of strategy here as to telling all the creators, say that this is, we've done our pricing tiers? We sure do. We have been executing different marketing campaigns and windback strategies with creators to a degree of success that tells us we have the ability to attract back creators who decided to leave Eventbrite over pricing concerns. We've seen hundreds of thousands of paid tickets come back to the platform through our current extended free trial communication. And we also have new functionality that we're rolling out directed at these creators who have decided to leave the platform when we know they have beyond pricing concerns, but also feature desires and wants from us.

Hamed Khorsand: And my other question was, do you have a go-to-market kind of strategy here as to telling all the creators that this is, we've done our pricing tiers?

Speaker Change: And then my other question was do you have a go to market kind of strategy here is to telling all the creators that this as we've done our pricing tiers.

Lanny Baker: Lenny, do you want to talk about the sales driven creator growth? Sure. And then, yeah, anything else around organized. I think you covered up on the organizer piece, but we can take more questions if there are there on the sales side of our business, which really is going after the strategic inventory. We look closely at consumer demand across our surfaces by metro and by category, and then send our outbound sales team out to try to acquire inventory in those categories, where we have the strongest demand.

Speaker Change: Yes.

Julia Hartz: We sure do. We have been executing different marketing campaigns and win-back strategies with creators to a degree of success that tells us we have the ability to attract back creators who decided to leave Eventbrite over pricing concerns. We've seen hundreds of thousands of paid tickets come back to the platform through our current extended free trial communication, and we also have new functionality that we're rolling out directed at these creators who have decided to leave the platform.

Speaker Change: We sure do we have been.

Speaker Change: Executing different marketing campaigns and and win back strategy is with our creators to a degree of success that tells US we have the ability to.

Speaker Change: Attract back creators, who decided to leave a brighter for pricing concerns we've seen hundreds of thousands of paid tickets come back to the platform through our current extended free trial communication and we also have new functionality that we're rolling out directed at these creators who have decided to.

Lanny Baker: And having that window into consumer demand has proven to be a very effective tool for us as we compete in the marketplace, spring craters, into Eventbrite. The sales organizations under new leadership as of about three months ago and building some strong momentum. We are getting stronger on coordination between sales, onboarding support and service. And in time, we're starting to see improvements in customer satisfaction as a result. Our new bookings during the quarter through our sales team were up about 60% year on year.

Speaker Change: Leave the platform when we know they have beyond pricing concerns, but also feature.

Julia Hartz: And we know they have, you know, beyond pricing concerns, but also desires and wants from us. So we have a high degree of confidence that we can win back and capture a portion of the market that has moved away from Eventbrite during this time, as well as build into new creator markets, specifically around timed entry and time slot ticketing, which opens up a new high volume market for us, which is exciting.

Speaker Change: Desires and wants from us. So we have a high degree of confidence that we can win back and capture a portion of the market that has moved away from Eventbrite. During this time as well as build into new create our markets specifically around timed entry.

Julia Hartz: So we have a high degree of confidence that we can wind back and capture a portion of the market that has moved away from Eventbrite during this time, as well as build into new creator markets specifically around time dentry, time slot ticketing that opens up a new high volume market for us, which is exciting. And then finally, as we continue to lean into the consumer engagement and the growth of consumers on the platform, this opens up a new go-to-market strategy for us. We're not only able to announce that Eventbrite is free to use, but also show the real value of being in the marketplace backed up by data and vastly improved consumer experience.

Lanny Baker: And when we look at new bookings, there, there are only a portion, sort of a mid teens per portion of our tickets come from brand new bookings through the sales channel. Those sales relationships tend to be three and four year agreements in most cases, but it's, it's encouraging to have that momentum about a quarter of those new bookings this year. Our customers who had previously left the Eventbrite platform coming back now to be part of our marketplace.

Speaker Change: Time slot ticketing that opens up a new high volume market for us, which is exciting and then finally as we continue to lean into the consumer engagement and the growth of consumers on the platform. This opens up a new go to market strategy for us where not only are we able to announce that eventbrite is free to use but also.

Julia Hartz: And then finally, as we continue to lean into consumer engagement and the growth of consumers on the platform, this opens up a new go-to-market strategy for us, where not only are we able to announce that Eventbrite is free to use, but we also show the real value of being in the marketplace backed up by data and, you know, a vastly improved consumer experience.

Speaker Change: <unk> show the real value of being in the marketplace backed up by data and.

Lanny Baker: And that progress has meant that, you know, for instance, in the second quarter, the year over year comparisons improved by about six percentage points in terms of ticket volume through our sales channel. So we're encouraged by the progress that we have there. We think we have a strong go to market strategy. And in terms of investments, they tend to be fairly manageable and lower risk investments in bringing on additional sales people where we see market opportunity.

Speaker Change: Vastly improved consumer experience.

Operator: Okay, thank you. Thank you.

Speaker Change: Okay. Thank you.

Speaker Change: Yeah.

Operator: Thank you. Your next question is coming from Naved Khan from B Riley Securities. Your line is live.

Naved Khan: Your next question is coming from Navi DeCon, from Be Rally Securities. Your line is live. Yeah, thanks a lot.

<unk> Khan: Thank you. Your next question is coming from <unk> Khan from B Riley Securities. Your line is live.

Naved Khan: Yeah, thanks a lot. I joined a little late, so I don't know if this has been covered, but on TikTok... Partnership, how are you planning to monetize the integration of the partnership? Would the creators be paying an extra, see on the ticket sale, or would they get would they have to pay to get promoted on TikTok? How would that work? And then maybe just any kind of commentary in terms of economics would you be sharing and adding sales or sales of tickets?

Khan: Yes, Thanks a lot.

Naved Khan: I joined a little late, so I don't know if this has been covered, but on TikTok partnership, how are you planning to monetize the integration of the partnership? Would the creators be paying an extra fee on a ticket sale, or would they have to pay us to get promoted on TikTok? How would that work? And then maybe just any kind of commentary in terms of economics, would you be sharing and ad shares or shares of tickets?

Speaker Change: I joined a little late so I don't know if this has been covered but.

Speaker Change: On the tick tock.

Khan: Partnership how are you planning to monetize the integration of the partnership.

Speaker Change: Well the creators be paying an extra.

Lanny Baker: We've grown the sales force over the last year, though most of that growth occurred at the 12 months ago rather more recently. And as we look at results that we continue with continued strengthen those numbers, we may add a bit to our sales force, but not in a way that'll be problematic the payback on that is is pretty strong. We've also seen very good sales rep productivity gains year over year.

Speaker Change: T on the on a ticket sale would that would they have to pay us to get from Wonder don't take talk how would that work.

Operator: Great. Thank you.

Speaker Change: And then maybe just any kind of commentary in terms of economics would you be sharing in I'd sales are.

Speaker Change: Sales of tickets.

Speaker Change: Sure. Thank you.

Julia Hartz: On the TikTok integration, it's early day, so it's a distribution partnership wherein anyone, not just an Eventbrite creator, but any creator on TikTok and any user of Eventbrite can anchor a ticket listing in TikTok content videos predominantly. What we see interesting here is the order of magnitude exposure that our events are getting in the traffic that it's driving, based on the fact that, you know, any creator, a micro-influencer to a very popular TikTok creator, wants to be able to promote content. And so I think that the core of this distribution strategy is top of funnel growth, how we drive more traffic back to event listings, and how we help anyone understand that they can be a creator of live experiences, which is content in itself.

Julia Hartz: On the TikTok integration, it's early days. So it's a distribution Partnership wherein anyone, not just an Eventbrite creator but any creator on TikTok and any user of Eventbrite can anchor a ticket listing in TikTok content videos. What we see interesting here is the order of magnitude exposure that our events are getting and the traffic that it's driving based on the fact that any creator, a micro-influencer to a very popular TikTok creator, wants to be able to promote content.

Speaker Change: On the tick Tock integration. It's early days, so it's a distribution partnership wherein I E. Anyone not just in Eventbrite creator, but any created around tick tock and any user of Eventbrite can anchor a ticket listing in a tick tock and kicked.

Operator: Once again, everyone, if you have any questions or comments, please press star, then one on your phone.

Hobbit Corsand: Your next question is coming from Hobbit Corsand from BWS Financial. Your line is live. Hi, so the first question I had was just given the trajectory of what you're seeing in the ticket volume.

Speaker Change: Kicked off content video is predominantly what we see are interesting here is the order of magnitude exposure that our events are getting and the traffic that it's driving based on the fact that you know.

Julia Hartz: What took it so long to actually recognize this had to, you had to revert back to a free model. Why, why a whole year? Thanks. We saw, as we said earlier this year, we expected some disruption to our pay ticket volume when we introduced the organ uncertainties and more recently, the impact on creator acquisition and retention has been greater than we anticipated. And frankly, that impact has gone on longer than we anticipated.

Speaker Change: Any creator and micro influencer to two.

Speaker Change: To our very popular kicked our creator.

Speaker Change: Wants to.

Speaker Change: Be able to promote content and so I think that the the core of this distribution strategy is top of funnel growth, how we drive more traffic back to event listings and how we help anyone understand that they can be a curator of live experiences, which is content and itself and so.

Julia Hartz: And so I think that the core of this distribution strategy is top of the funnel growth, how we drive more traffic back to event listings, and how we help anyone understand that they can be a curator of live experiences, which is content in itself. And so we'll continue to work with TikTok.

Julia Hartz: They've been an excellent partner in building out different ways that we can expose real-life events. They're hungry for this content and the ability to allow their creators to promote it. In terms of monetization, how I would think about it is, as this distribution Partnership shows real traction for driving tickets to events, it will be considered increased visibility for anyone using Eventbrite. And so I can imagine a world where as we continue to develop more distribution partnerships like this one, with meeting platforms where people are looking for content and looking to share content and searching for things to do, we would consider elevating that into the premium tier. Today, we're not directly monetizing it. We're using it to drive increased ticket sales, but we are adding an additional monetization tactic on top of it while we develop out the winning strategy.

Julia Hartz: And so we'll continue to work with TikTok; they've been an excellent partner in building out different ways that we can expose real-life events. They're hungry for this content and the ability to allow their creators to promote them. In terms of monetization, how I would think about it is as this distribution partnership shows real traction for driving tickets to events. It will be considered increased visibility for anyone using Eventbrite.

Speaker Change: We'll continue to work with Tic Toc, they've been an excellent partner in building out different ways that we can expose real life events, they're hungry for this content and the ability to allow their creators to promote them.

Julia Hartz: Over the last six months, nine months, we have fielded an array of changes to our organizer fee model, including changing pricing levels, simplifying packages, streamlining onboard each of which has had a positive impact on acquisition and some of the cases retention as well.

Speaker Change: In terms of monetization, how I would think about it is as this distribution partnership shows real traction for driving.

Speaker Change: It gets to event it will be considered increased visibility for anyone using eventbrite and so I can imagine a world where as we continue to develop to develop out more distribution partnerships. Like this one with leading platforms are people are looking for content are looking to share content and searching for things to do that.

Julia Hartz: But in aggregate, they have not been sufficient to turn a trend that has continued to soften and as we've looked at it over the last few weeks, month, it's become clear that larger, more significant, bolder action is appropriate and we are, we're excited to introduce, we're looking forward to introducing a free tier across all event capacity levels. And my other question was, do you have a go-to market kind of strategy here as to telling all the creators, say that this is, we've done our pricing tiers?

Lanny Baker: And so I can imagine a world where, as we continue to develop about more distribution partnerships like this one, with meeting platforms where people are looking for content and looking to share content and searching for things to do, that we would consider, you know, elevating that into the premiums here. Today, we're not directly monetizing it; we're using it to drive increased ticket sales, but we aren't adding an additional monetization tactic on top of it while we develop out the winning strategy.

Speaker Change: We would consider.

Speaker Change: Elevating that into the premium tier today, we're not directly monetizing it we're using it to drive increased ticket sales, but we aren't adding an additional.

Speaker Change: Monetization tactic on top of that while we develop out the winning strategy.

Naved Khan: And then on advertising sales, did you share a number of how much advertising revenue was in the quarter?

Lanny Baker: Understood. And then on the advertising sales, did you share a number of how much advertising revenue was in the quarter? Yes.

Speaker Change: Understood.

Speaker Change: And then on.

Speaker Change: On the advertising.

Julia Hartz: We sure do. We have been executing different marketing campaigns and windback strategies with creators to a degree of success that tells us we have the ability to attract back creators who decided to leave Eventbrite Over pricing concerns. We've seen hundreds of thousands of paid tickets come back to the platform through our current extended free trial communication. And we also have new functionality that we're rolling out directed at these creators who have decided to leave the platform when we know they have beyond pricing concerns but also feature desires and wants from us.

Speaker Change: <unk> sales did share a number how.

Speaker Change: How much.

Speaker Change: They're testing revenue was in the quarter.

Speaker Change: Yeah.

Lani Baker: Yes, advertising revenue in the second quarter of 2024 was $2.9 million, as we reported. That's about 125% from where it was a year earlier and reflects a very strong quarter and strong continued momentum on advertiser count. In fact, quarter over quarter, this was the best growth we've seen in advertiser count for that product.

Speaker Change: Yes.

Lanny Baker: Advertising revenue in the second quarter of 2024 was $2.99 million that's reported. That's about 125% from where it was a year earlier, and reflects a very strong quarter and continued momentum on advertiser count. In fact, quarter of a quarter, this was the best growth we've seen in advertiser count for that product.

Speaker Change: Advertising revenue in the second quarter of.

Speaker Change: <unk> 2024 was $2 9 million.

Speaker Change: Got it.

Speaker Change: That's up about 125% from where it was a year earlier.

Speaker Change: And reflects <unk>.

Speaker Change: Very strong quarter and strong continued momentum on advertiser accounts in fact quarter over quarter. This was the best growth we've seen in advertiser count for that product.

Lanny Baker: Got it. And anything in terms of the mobile refresh in terms of timeline, and we can expect to see that as well. So we will be relaunching or releasing rather the next version of our mobile app for consumers in the fall timeline, and we're really focusing on three things there.

Naved Khan: Got it. And anything in terms of the mobile refresh? In terms of timeline and when we can expect to see the results of that.

Speaker Change: Got it.

Julia Hartz: So we have a high degree of confidence that we can windback and capture a portion of the market that has moved away from Eventbrite during this time, as well as build into new creator markets specifically around time dentry, time slot ticketing that opens up a new high volume market for us, which is exciting.

Speaker Change: Any anything in terms of the mobile refresh.

Speaker Change: Okay.

Speaker Change: In terms of timeline and when we can expect to see the evidence of that.

Julia Hartz: Yes, so we will be relaunching or releasing, rather, the next version of our mobile app for consumers in the fall timeline, and we're really focusing on three things there. The first is simplicity, and elevating the quality of the consumer experience. It's been quite a while since we updated the, you know, core experience in our mobile app.

Speaker Change: Yes, so we will be launch relaunching, our releasing rather the next version of our mobile app for consumers and the fall timeline and we're really focusing on three things. There. The first is simplicity elevating the quality of the consumer experience. It is.

Julia Hartz: And then finally, as we continue to lean into the consumer engagement and the growth of consumers on the platform, this opens up a new go-to-market strategy for us. We're not only are we able to announce that Eventbrite is free to use but also show the real value of being in the marketplace backed up by data and vastly improved consumer experience. Okay, thank you. Thank you.

Lanny Baker: The first is simplicity, elevating the quality of the consumer experience. It's been quite a while since we've updated the core experience in our mobile app, and this is where we see the highest engagement and growth with consumers today. So we believe by simplifying the design and increasing the quality of the experience, overall we'll be investing in a high return surface area for consumer engagement.

Speaker Change: Been quite a while since we've updated the core.

Speaker Change: Poor experience in our mobile App and this is where we see the highest engagement and growth with consumers today. So we believe by simplifying the design and increasing the quality of the experience overall, we'll be investing in our high return surface area for consumer engagement. The second thing is excessive.

Julia Hartz: And this is where we see the highest engagement and growth with consumers today. So we believe by simplifying the design and increasing the quality of the experience, overall, we'll be investing in a high-return surface area for consumer engagement. The second thing is accessibility. We want everyone to be able to use the mobile app, not only to find great things to do, but also to understand within their social graph where people are going and drive curated discovery through things like, you know, social guides and, again, tapping into the influencer market, really helping people curate and share events based on their local interests and local markets.

Lanny Baker: The second thing is accessibility. We want everyone to be able to use the mobile app not only to find great things to do, but also to understand within their social graph where people are going and drive curated discoveries through things like social guides and, again, team off of the influencer market, really helping people carry and share events in their interests and local markets. And the third thing is being able to expand and extend the creator's own event brand through the consumer app and bring that to life in a way that's both interactive, media rich, but, you know, signifies a much more elevated storefront for our creators and gives them that connection to the broader audience that we've been able to open up through distribution partnerships.

Navi DeCon: Your next question is coming from Navi DeCon, from Be Rally Securities. Your line is live. Yeah, thanks a lot.

Speaker Change: <unk>, we want everyone to be able to use the mobile app not only to find great things to do but also to understand within their social graph, where people are going and drive curated discoveries are things like you know.

Julia Hartz: I joined a little late, so I don't know if this has been covered but on TikTok partnership, how are you planning to monetize the integration of the partnership? Would the creators be paying an extra fee on a ticket sale or would they have to pay us to get promoted on TikTok, how would that work? And then maybe just any kind of commentary in terms of economics, would you be sharing and ad shares or shares of tickets?

Speaker Change: Social guides and and.

Speaker Change: Again teeing off of the Influencer market.

Speaker Change: Market really helping people curate and share events in their local interest in local markets and the third thing is being able to expand and extend the creators one event brand through the consumer app and bring that to life in a way that is both interactive media rich, but cigna.

Julia Hartz: And the third thing is being able to expand and extend the creator's own event brand through the consumer app and bring that to life in a way that's both interactive and media-rich, but, you know, signifies a much more elevated storefront for our creators and gives them that connection to the broader audience that we've been able to open up through distribution partnerships, so TikTok that drives back to the app, etc. So overall, it's a refresh, it's an elevated design, a better experience, and it's a high return surface for us to invest in the consumer engagement strategy.

Speaker Change: <unk> is a much more elevated storefront for our creators and give them that connection to the broader audience that we've been able to open up through distribution partnerships. So tick tock that drives back to the App et cetera. So overall, it's a it's a you know a refresh its an elevated design and better experience.

Julia Hartz: On the TikTok integration, it's early day, so it's a distribution partnership wherein anyone, not just an Eventbrite creator, but any creator on TikTok and any user of Eventbrite can anchor a ticket listing in TikTok content videos predominantly. What we see interesting here is the order of magnitude exposure that our events are getting in the traffic that it's driving, based on the fact that, you know, any creator, a micro-influencer to a very popular TikTok creator, wants to be able to promote content.

Lanny Baker: So TikTok that drives back to the app, et cetera. So overall, it's a, you know, a refresh, it's an elevated design, a better experience, and it's a high return surface for us to invest in the consumer engagement strategy.

Speaker Change: And it's a high return surface for us to invest in the consumer engagement strategy.

Naved Khan: Got it. Last question, if I may. So just coming back to TikTok, are you baking, what are you baking in terms of contribution to your guidance?

Lanny Baker: Carter. Last question, SMA. So, just coming back to TikTok, what are you making in terms of contribution in your guidance? Naved, it's a new partnership that has just launched, and we, on that basis, are not incorporating large near-term impact from the integration with TikTok in terms of paid ticket volume. As Joie said, it's an important extension of the visibility that being part of our marketplace provides. And in the intermediate and long term, we have confidence we can convert that to being a driver of paid tickets, but we're literally in just the first weeks and it's too early for us to really have a bead on the paid ticket volume, and on that basis, we're not including anything in our outlook for that at the moment.

Speaker Change: Got it and last question if I may so just coming back to it ticked up.

Speaker Change: What are you baking in terms of.

Speaker Change: Contribution.

Speaker Change: In your in your guidance.

Lani Baker: Naved, it's a new partnership that has just launched, and on that basis, we are not incorporating a large near-term impact from the integration with TikTok in terms of paid ticket volume. As Julia said, it's an important extension of the visibility that being part of our marketplace provides, and in the intermediate and long-term, we have confidence we can convert that to being a driver of paid tickets. But we're literally in just the first weeks, and it's too early for us to really have a bead on the paid ticket volume. And on that basis, we're not including anything in our outlook for that at the moment.

Speaker Change: Maybe it's a new partnership that has just launched.

Naved Khan: understood. Thank you.

Julia Hartz: And so I think that the core of this distribution strategy is top of funnel growth, how we drive more traffic back to event listings, and how we help anyone understand that they can be a creator of live experiences, which is content in itself. And so we'll continue to work with TikTok, they've been an excellent partner in building out different ways that we can expose real life events. They're hungry for this content and the ability to allow their creators to promote them.

Speaker Change: And on that basis, we are not incorporating large near term.

Speaker Change: Packed from the integration with Tic Toc in terms of paid ticket volume as Joe said.

Joe: An important extension of the visibility of that being part of our marketplace provides.

Speaker Change: In the intermediate and long term, we have confidence we can convert that to being a driver pay tickets, but we're literally in just the first weeks of its too early for us to really have a beat on the paid ticket volume and on that basis, we're not including.

Julia Hartz: In terms of monetization, how I would think about it is as this distribution partnership shows real traction for driving tickets to events. It will be considered increased visibility for anyone using Eventbrite. And so I can imagine a world where, as we continue to develop about more distribution partnerships like this one, with meeting platforms where people are looking for content and looking to share content and searching for things to do, that we would consider, you know, elevating that into the premiums here. Today, we're not directly monetizing it, we're using it to drive increased ticket sales, but we aren't adding an additional monetization tactic on top of it, while we develop out the winning strategy. Understood.

Speaker Change: Anything in our outlook for that at the moment.

Operator: I'm just joking; thank you.

Speaker Change: Understood. Thank you.

Operator: Thank you; that completes our Q&A session.

Operator: Thank you. That concludes our Q&A session. Everyone, this concludes today's event. You may disconnect at this time. Have a wonderful day. Thank you for your participation.

Speaker Change: Thank you that completes our Q&A session everyone. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.

Operator: Everyone that concludes today's event, you may disconnect at this time and have a wonderful day. Thank you for your participation.

Lanny Baker: And then on the advertising sales, did you share a number of how much advertising revenue was in the quarter? Yes. Advertising revenue in the second quarter of 2024 was $2.99 million that's reported. That's about 125% from where it was a year earlier, and reflects a very strong quarter and continue momentum on advertiser count. In fact, quarter of a quarter, this was the best growth we've seen in advertiser count for that product. Got it.

Julia Hartz: And anything in terms of the mobile refresh in terms of timeline, and we can expect to see that as well. So we will be relaunching or releasing rather the next version of our mobile app for consumers in the fall timeline, and we're really focusing on three things there. The first is simplicity, elevating the quality of the consumer experience. It's been quite a while since we've updated the core experience in our mobile app, and this is where we see the highest engagement and growth with consumers today.

Julia Hartz: So we believe by simplifying the design and increasing the quality of the experience, overall we'll be investing in a high return surface area for consumer engagement. The second thing is accessibility. We want everyone to be able to use the mobile app not only to find great things to do, but also to understand within their social graph where people are going and drive curated discoveries through things like social guides and, again, team off of the influencer market, really helping people carry and share events in their interests and local markets.

Julia Hartz: And the third thing is being able to expand and extend the creator's own event brand through the consumer app and bring that to life in a way that's both interactive, media rich, but, you know, signifies a much more elevated storefront for our creators and gives them that connection to the broader audience that we've been able to open up through distribution partnerships. So TikTok that drives back to the app, et cetera. So overall, it's a, you know, a refresh, it's an elevated design, a better experience, and it's a high return surface for us to invest in the consumer engagement strategy.

Lanny Baker: Carter. Last question, SMA. So, just coming back to TikTok, what are you making in terms of contribution in your guidance? Naved, it's a new partnership that is just launched and we, on that basis, we are not incorporating large near-term impact from the integration with TikTok in terms of paid ticket volume. As Joie said, it's an important extension of the visibility that being part of our marketplace provides. And in the intermediate and long term, we have confidence we can convert that to being a driver of paid tickets, but we're literally in just the first weeks and it's too early for us to really have a bead on the paid ticket volume and on that basis, we're not including anything in our outlook for that at the moment. I'm just joking, thank you.

Operator: Thank you, that completes our Q&A session.

Operator: Everyone that concludes today's event, you may disconnect at this time and have a wonderful day.

Operator: Thank you for your participation.