In other words, Eventbrite was unprofitable, and losses were growing, before the pandemic.
Meanwhile, Eventbrite’s stock price has tripled from its March 2020 lows and trades near its pre-pandemic levels.ĭespite impressive YoY growth, Eventbrite’s revenue over the trailing twelve months (TTM) remains 53% below 2019 revenue. Core Earnings, at -$79 million over the TTM, are worse now than in 2019, when they were a company best -$59 million. Furthermore, the event industry is likely forever changed by COVID-19, with so many events going permanently virtual for ease of access and cost savings.
Stock Price Recovered Faster Than the Business. Investing in Eventbrite as a “reopening play” ignores that the company has yet to return pre-pandemic levels across key metrics despite many economies reopening around the globe. Below, I highlight some of the key challenges Eventbrite faces that make it unlikely to achieve the expectations baked into its stock price.
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