SAN FRANCISCO - Eventbrite (NYSE:EB), the global events marketplace, has announced a partnership with TikTok, aiming to enhance event discovery and ticket sales for event creators. Through this collaboration, Eventbrite creators can now integrate ticketing links into their TikTok videos, allowing users to seamlessly learn about events and purchase tickets without leaving the platform.
This integration taps into TikTok's diverse user communities, such as #BookTok, #NewMusic, and #FoodTok, by enabling event creators to connect with audiences who have shown interest in these areas. The partnership is positioned to expand event visibility and reach, particularly for local and independent creators, by leveraging TikTok's vast and engaged user base.
Ted Dworkin, Chief Product Officer at Eventbrite, expressed enthusiasm about the partnership, highlighting the opportunity for creators to engage with trending topics and bring online communities together through live events. Similarly, Isaac Bess, Global Head of Distribution Partnerships at TikTok, emphasized the mutual goal of both platforms to connect communities through shared passions and experiences.
The partnership offers several advantages for Eventbrite creators, including the ability to add multiple event links to TikTok videos, with the platform displaying the most relevant event based on the user's location. Additionally, the in-app browser on TikTok enables quick ticket purchases, potentially accelerating sales.
The new feature is accessible in all countries where both TikTok and Eventbrite operate. To be eligible, events must be in-person, publicly-listed on Eventbrite, offer paid tickets, and occur within the next 90 days, or 180 days for music events.
Eventbrite, co-founded by Julia Hartz, Kevin Hartz, and Renaud Visage, has played a significant role in the experience economy, with over 300 million tickets distributed for more than 5 million events in 2023. The company has received industry recognition, including inclusion in Fast Company's The World's 50 Most Innovative Companies and Brands That Matter lists, the Great Place to Work® Award in the U.S., and Inc.'s Best-Led Companies honor.
The announcement is based on a press release statement from Eventbrite.
In other recent news, Eventbrite, Inc. reported notable Q1 2024 results, indicating considerable growth in its marketplace. The company reported revenues of $86.3 million, with marketplace revenue now constituting 13% of the total, up from 3% the previous year.
Despite an 8% decline in paid ticket volume to $21.2 million, the company anticipates improvement in the upcoming quarter. Eventbrite also reported a record gross margin of 71% and a take rate that grew to 10.1%.
The company's adjusted EBITDA stood at $10.4 million, with a cash reserve of $580 million, part of which was utilized to repurchase $15 million of its stock. Eventbrite also projects full-year revenue between $360 million and $371 million, with adjusted EBITDA margins in the low-to-mid teens.
In terms of future developments, the company anticipates a 12% revenue growth over 2023 and plans to continue investing in its mobile app and AI to enhance the event creation and discovery process. Despite a decrease in paid ticket volume, Eventbrite's robust cash position and strategic investments signal a commitment to long-term profitability and market leadership.
InvestingPro Insights
As Eventbrite (NYSE:EB) forges a strategic partnership with TikTok, the financial metrics from InvestingPro offer a glimpse into the company's current valuation and performance. Eventbrite's market capitalization stands at $554.53 million, reflecting the market's aggregate valuation of the company.
Despite a challenging year with the stock price experiencing significant volatility, as indicated by a one-year total price return of -56.72%, Eventbrite maintains a solid financial position with a gross profit margin of 70.18% over the last twelve months as of Q1 2024. This high margin demonstrates the company's ability to retain a substantial portion of its sales revenue as gross profit.
Moreover, Eventbrite's collaboration with TikTok could tap into new revenue streams and user engagement, potentially impacting future metrics. Currently, the company is trading at a low revenue valuation multiple, which might appeal to investors looking for growth opportunities in the tech sector.
Eventbrite's strong liquidity position is further underscored by an InvestingPro Tip that highlights the company's ample liquid assets, which exceed its short-term obligations. This indicates a robust ability to cover immediate liabilities, an essential factor for investors considering the company's financial health.
For readers interested in a deeper dive into Eventbrite's financial outlook, additional InvestingPro Tips are available, offering comprehensive analysis and insights. There are currently 9 more tips listed on InvestingPro, accessible at https://www.investing.com/pro/EB. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which can provide valuable guidance in navigating the volatile tech market.
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