William Blair & Company initiated research coverage of Eventbrite, Inc. (EB $16.02), a leading ticketing and event planning technology platform for the middle-market live event industry.
Analyst Ryan Sundby projects Eventbrite to increase revenue at a double-digit rate over the medium term, estimating the company will generate revenue of $315 million in 2019, $355 million in 2020, and $398 million in 2021.
"Eventbrite enables creators to plan, promote, and produce a variety of live events, irrespective of size, geography, frequency, or category," Sundby said. "This flexibility is supported by its modular technology platform, which has been designed to scale with creator needs and can integrate with third parties to help amplify reach and add functionality to the toolbox. Eventbrite's scale as one of the largest and fastest-growing ticketing platforms, now almost half the size of Ticketmaster, allows it to organically attract creators—the majority of whom learned of Eventbrite either through word of mouth or by attending an event—and invest in product development to improve the attendee and creator experience. Eventbrite has an efficient go-to-market strategy in which over 95% of the creators on-board themselves. Eventbrite is also developing a range of complementary solutions to help expand and improve how it serves creators."
Sundby continued, "Growth in the near term is being affected by the migration of Ticketfly creators onto Eventbrite's platform. This process is expected to result in continued and potentially meaningful migration loss as the company moves to shut down the Ticketfly platform in the second half of the year. Still, we understand that integration efforts including improvements to core functionality around reporting, payouts, and settlements for high-frequency, multiple-venue creators have begun to accelerate. And once Eventbrite sunsets the Ticketfly platform, its commitment to a single platform strategy will allow these investments in functionality to flow through to benefit all creators."
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