0001475115-20-000122.txt : 20200826 0001475115-20-000122.hdr.sgml : 20200826 20200807204513 ACCESSION NUMBER: 0001475115-20-000122 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 89 CONFORMED PERIOD OF REPORT: 20200630 FILED AS OF DATE: 20200807 DATE AS OF CHANGE: 20200807 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Eventbrite, Inc. CENTRAL INDEX KEY: 0001475115 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 141888467 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-38658 FILM NUMBER: 201086600 BUSINESS ADDRESS: STREET 1: 155 5TH STREET, 7TH FLOOR CITY: SAN FRANCISCO STATE: CA ZIP: 94103 BUSINESS PHONE: (888) 414-5119 MAIL ADDRESS: STREET 1: 155 5TH STREET, 7TH FLOOR CITY: SAN FRANCISCO STATE: CA ZIP: 94103 10-Q 1 eb-20200630.htm 10-Q eb-20200630
Q2FALSE2020--12-310001475115
(1) Includes stock-based compensation as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Cost of net revenue207  325  630  569  
Product development3,366  2,187  7,055  4,225  
Sales, marketing and support901  1,246  2,332  2,469  
General and administrative5,137  4,948  10,416  9,570  
10.0793903
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________
FORM 10-Q
__________________________________________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File Number: 001-38658
_______________________________________________________________________________
EVENTBRITE, INC.
(Exact name of registrant as specified in its charter)
________________________________________________________________________________
Delaware14-1888467
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
155 5th Street, 7th Floor
San Francisco, CA 94103
(Address of principal executive offices) (Zip Code)

(415) 692-7779
(Registrant's telephone number, including area code)

Not applicable
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Class A common stock, $0.00001 par valueEBNew York Stock Exchange LLC
_________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒  
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   
1

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒
As of July 15, 2020, 67,466,394 shares of Registrant's Class A common stock and 23,383,917 shares of Registrant's Class B common stock were outstanding.
2

EVENTBRITE, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE PERIOD ENDED
JUNE 30, 2020
TABLE OF CONTENTS


Page
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
PART I. FINANCIAL INFORMATION
Item 1.Unaudited Interim Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019
Condensed Consolidated Statements of Operations for the Three Months and Six Months Ended June 30, 2020 and 2019
Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2020 and 2019
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019
Notes to Unaudited Interim Condensed Consolidated Financial Statements
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
PART II. OTHER INFORMATION
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.Exhibits

3

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "appears," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements related to the impacts of the COVID-19 global health pandemic, including its impact on us, our operations, or our future financial or operational results; our expectations regarding restructuring charges with respect to the workforce reduction implemented in response to the COVID-19 global health pandemic; statements regarding our credit agreement and our convertible senior notes, including the intended use of the net proceeds; statements about our future financial performance, including our revenue, costs of revenue and operating expenses; our anticipated growth and growth strategies and our ability to effectively manage that growth; our ability to achieve and grow profitability; the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; our ability to maintain the security and availability of our platform; our predictions about industry and market trends; our ability to attract and retain creators; our ability to successfully operate internationally; our ability to maintain, protect and enhance our intellectual property; our ability to attract and retain qualified employees and key personnel; our ability to comply with modified or new laws and regulations applying to our business; and our ability to successfully defend litigation brought against us.

The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors, including those described in the section titled "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q. We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q. You should not rely upon forward-looking statements as predictions of future events.

All forward-looking statements are based on information and estimates available to the Company at the time of this Quarterly Report on Form 10-Q and are not guarantees of future performance. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.




PART 1. FINANCIAL INFORMATION

Item 1. Unaudited Interim Condensed Consolidated Financial Statements

4

EVENTBRITE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)


June 30,
2020
December 31,
2019
Assets
Current assets
          Cash and cash equivalents$546,863  $420,712  
          Funds receivable5,659  54,896  
          Accounts receivable, net829  2,932  
          Creator signing fees, net1,511  9,597  
          Creator advances, net10,532  22,282  
          Prepaid expenses and other current assets11,702  14,157  
                    Total current assets577,096  524,576  
Property, plant and equipment, net15,083  19,735  
Operating lease right-of-use assets18,342  22,160  
Goodwill170,560  170,560  
Acquired intangible assets, net43,948  49,158  
Restricted cash2,230  2,228  
Creator signing fees, noncurrent15,239  16,710  
Creator advances, noncurrent886  922  
Other assets12,291  1,966  
                    Total assets$855,675  $808,015  
Liabilities and Stockholders’ Equity
Current liabilities
          Accounts payable, creators$203,222  $307,871  
          Accounts payable, trade4,144  1,870  
Chargebacks and refunds reserve65,907  2,699  
          Accrued compensation and benefits7,068  6,347  
          Accrued taxes1,489  5,409  
          Operating lease liabilities7,538  9,115  
          Other accrued liabilities13,110  16,997  
                    Total current liabilities302,478  350,308  
Accrued taxes, noncurrent14,444  15,173  
Operating lease liabilities, noncurrent12,998  16,162  
Long-term debt196,581    
Other liabilities155  557  
                    Total liabilities526,656  382,200  
Commitments and contingencies (Note 11)
Stockholders’ equity
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, no shares issued or outstanding as of June 30, 2020 and December 31, 2019
    
Common stock, $0.00001 par value; 1,100,000,000 shares authorized; 90,811,061 shares issued and outstanding as of June 30, 2020; 85,718,860 shares issued and outstanding as of December 31, 2019
1  1  
Additional paid-in capital886,904  798,640  
Accumulated deficit(557,886) (372,826) 
                    Total stockholders’ equity329,019  425,815  
                    Total liabilities and stockholders’ equity$855,675  $808,015  
(See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements)
5


EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Net revenue$8,394  $80,758  $57,480  $162,084  
Cost of net revenue(1)
10,094  31,119  38,099  61,684  
                    Gross profit(1,700) 49,639  19,381  100,400  
Operating expenses(1)
          Product development 15,047  16,628  31,218  31,225  
          Sales, marketing and support(3,073) 26,053  96,842  47,778  
          General and administrative22,472  22,287  64,581  47,667  
                    Total operating expenses34,446  64,968  192,641  126,670  
                    Loss from operations(36,146) (15,329) (173,260) (26,270) 
Interest expense(3,625) (1,033) (3,637) (2,125) 
Other income (expense), net1,186  375  (8,099) 2,555  
                    Loss before income taxes(38,585) (15,987) (184,996) (25,840) 
Income tax provision (benefit)(1) (1,193) 64  (1,093) 
Net loss$(38,584) $(14,794) $(185,060) $(24,747) 
Net loss per share, basic and diluted$(0.44) $(0.18) $(2.12) $(0.31) 
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted88,410  81,369  87,174  80,049  
(1) Includes stock-based compensation as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Cost of net revenue$207  $325  $630  $569  
Product development3,366  2,187  7,055  4,225  
Sales, marketing and support901  1,246  2,332  2,469  
General and administrative5,137  4,948  10,416  9,570  

(See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements)
6

EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands, except share data)
(Unaudited)
Common Stock-Class ACommon Stock-Class BAdditional
Paid-In
Capital
Accumulated
Deficit
Total Stockholders’ Equity
SharesAmountSharesAmount
Balance at January 1, 202061,863,617  $1  23,855,243  $  $798,640  $(372,826) $425,815  
Issuance of common stock upon exercise of stock options738,410  —  —  —  4,654  —  4,654  
Issuance of restricted stock awards480  —  —  —  —  —    
Issuance of common stock for settlement of RSUs304,600  —  —  —  —  —    
Shares withheld related to net share settlement(110,411) —  —  —  (1,713) —  (1,713) 
Conversion of common stock from Class B to Class A262,483  —  (262,483) —  —  —    
Vesting of early exercised stock options—  —  —  —  61  —  61  
Stock-based compensation—  —  —  —  11,201  —  11,201  
Net loss—  —  —  —  —  (146,476) (146,476) 
Balance at March 31, 202063,059,179  1  23,592,760  $  812,843  (519,302) 293,542  
Issuance of common stock upon exercise of stock options1,290,333  —  13,004  —  6,837  —  6,837  
Issuance of restricted stock awards  —  —  —  —  —    
Issuance of common stock for settlement of RSUs228,233  —  —  —  —  —    
Shares withheld related to net share settlement(70,098) —  —  —  (616) —  (616) 
Conversion of common stock from Class B to Class A221,847  —  (221,847) —  —  —    
Vesting of early exercised stock options—  —  —  —  180  —  180  
Equity component of convertible notes, net of issuance costs—  —  —  —  45,452  —  45,452  
Purchase of convertible senior notes capped calls—  —  —  —  (15,600) —  (15,600) 
Issuance of common stock for ESPP Purchase98,476  —  —  —  721  —  721  
Shares issued in connection with term loans stock purchase agreement2,599,174  —  —  —  27,369  —  27,369  
Stock-based compensation—  —  —  —  9,718  —  9,718  
Net loss—  —  —  —  —  (38,584) (38,584) 
Balance at June 30, 202067,427,144  $1  23,383,917  $  $886,904  $(557,886) $329,019  

(See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements)





7

EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands, except share data)
(Unaudited)
Common Stock-Class ACommon Stock-Class BTreasury StockAdditional
Paid-In
Capital
Accumulated
Deficit
Total Stockholders’ Equity
SharesAmountSharesAmountSharesAmount
Balance at January 1, 201911,502,993  $  66,855,401  $  (188,480) $(488) $718,405  $(302,695) $415,222  
Issuance of common stock upon exercise of stock options1,785,106  —  249,207  —  —  —  12,427  —  12,427  
Issuance of restricted stock awards4,402  —  —  —  —  —  —  —    
Issuance of common stock for settlement of RSUs62,263  —  —  —  —  —  —  —    
Shares withheld related to net share settlement(24,249) —  —  —  —  —  (560) —  (560) 
Conversion of common stock from Class B to Class A21,095,075  —  (21,095,075) —  —  —  —  —    
Retirement of treasury shares—  —  —  —  188,480  488  (488) —    
Vesting of early exercised stock options—  —  —  —  —  —  92  —  92  
Stock-based compensation—  —  —  —  —  —  8,330  —  8,330  
Cumulative effect adjustment upon adoption of ASU
2014-09
—  —  —  —  —  —  —  (600) (600) 
Cumulative effect adjustment upon adoption of ASU 2016-02—  —  —  —  —  —  —  (771) (771) 
Net loss—  —  —  —  —  —  —  (9,953) (9,953) 
Balance at March 31, 201934,425,590    46,009,533        738,206  (314,019) 424,187  
Issuance of common stock upon exercise of stock options1,785,361  —  —  —  —  —  10,526  —  10,526  
Issuance of restricted stock awards21,016  —  —  —  —  —  —  —    
Issuance of common stock for settlement of RSUs52,204  —  —  —  —  —  —  —    
Issuance of common stock for ESPP Purchase167,706  —  —  —  —  —  2,234  —  2,234  
Shares withheld related to net share settlement(11,858) —  —  —  —  —  (253) —  (253) 
Conversion of common stock from Class B to Class A11,491,455  —  (11,491,455) —  —  —  —  —    
Vesting of early exercised stock options—  —  —  —  —  —  92  —  92  
Stock-based compensation—  —  —  —  —  —  9,154  —  9,154  
Net loss—  —  —  —  —  —  —  (14,794) (14,794) 
Balance at June 30, 201947,931,474  $  34,518,078  $    $  $759,959  $(328,813) $431,146  


(See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements)
8


EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Six Months Ended June 30,
20202019
Cash flows from operating activities
Net loss$(185,060) $(24,747) 
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
          Depreciation and amortization11,909  11,969  
          Amortization of creator signing fees5,301  4,915  
          Noncash operating lease expense3,894  3,933  
          Accretion of debt discounts and issuance costs2,688  223  
          Stock-based compensation20,433  16,833  
Provision for chargebacks and refunds84,533  9,951  
          Impairment charges8,227  1,899  
          Provision for bad debt and creator advances16,224  2,380  
          Loss on disposal of assets2,159  58  
          Deferred income taxes(82) (745) 
          Changes in operating assets and liabilities:
                    Accounts receivable(1,001) (1,061) 
                    Funds receivable49,237  12,115  
                    Creator signing fees, net(3,901) (9,251) 
                    Creator advances, net(913) (8,513) 
                    Prepaid expenses and other current assets1,964  1,783  
                    Other assets259  (2) 
                    Accounts payable, creators(104,649) 50,769  
                    Accounts payable, trade1,440  956  
                    Chargebacks and refunds reserve(21,325) (9,590) 
                    Accrued compensation and benefits721  (308) 
                    Accrued taxes(3,920) (3,525) 
                    Operating lease liabilities(4,876) (4,105) 
                    Other accrued liabilities(9,338) 3,702  
                    Accrued taxes, noncurrent(647) (1,334) 
                    Other liabilities8  (974) 
                         Net cash provided by (used in) operating activities(126,715) 57,331  
Cash flows from investing activities
Purchases of property and equipment(1,230) (3,566) 
Capitalized internal-use software development costs(2,538) (4,271) 
                         Net cash used in investing activities(3,768) (7,837) 
9

EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Six Months Ended June 30,
20202019
Cash flows from financing activities
Proceeds from issuance of common stock under ESPP721  2,234  
Proceeds from exercise of stock options11,491  22,954  
Taxes paid related to net share settlement of equity awards(453) (706) 
Principal payments on debt obligations  (11,406) 
Proceeds from issuance of debt and common stock, net of issuance costs paid260,777  (457) 
Purchase of convertible notes capped calls(15,600)   
Payments on finance lease obligations(300) (138) 
Payments of deferred offering costs  (413) 
                         Net cash provided by financing activities256,636  12,068  
                         Net increase in cash, cash equivalents and restricted cash126,153  61,562  
Cash, cash equivalents and restricted cash
Beginning of period422,940  439,400  
End of period$549,093  $500,962  
Supplemental cash flow data
          Interest paid$613  $1,876  
          Income taxes paid, net of refunds475  367  
Noncash investing and financing activities
Vesting of early exercised stock options$241  $184  
Purchases of property and equipment, accrued but unpaid226  338  

(See accompanying Notes to Unaudited Interim Condensed Consolidated Financial Statements)
10


EVENTBRITE, INC.
Notes to Unaudited Interim Condensed Consolidated Financial Statements
1. Overview and Basis of Presentation
Description of Business
Eventbrite, Inc. (Eventbrite or the Company) has built a powerful, broad technology platform to enable creators to solve the challenges associated with creating live and online experiences. The Company’s platform integrates components needed to seamlessly plan, promote and produce live events, thereby allowing creators to reduce friction and costs, increase reach and drive ticket sales.
Basis of Presentation
The accompanying i