10-Q

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 September 30, 2023

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)

________________________________________________________________________________

Delaware	14-1888467
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
95 Third Street, 2nd 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 class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock, $0.00001 par value	EB	New 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.   ☐

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 October 25, 2023, 84,960,526 shares of Registrant's Class A common stock and 15,662,672 shares of Registrant's Class B common stock were outstanding.

EVENTBRITE, INC.

TABLE OF CONTENTS

		Page
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS		1
PART I. FINANCIAL INFORMATION
Item 1.	Unaudited Condensed Consolidated Financial Statements	2
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Operations	3
	Condensed Consolidated Statements of Stockholders' Equity	4
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	36
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	42
Signatures		43

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 geopolitical and macroeconomic events, including their impact on us, our operations, or our future financial or operational results; our convertible senior notes, including the intended use of the net proceeds; 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; changes in our business model; our corporate strategy and expectations with respect to our restructuring plan; our advance payout program; the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; our predictions about industry and market trends; our ability to attract and retain creators and drive consumer demand; our ability to successfully operate internationally; our ability to attract and retain employees; 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 and the potential effect of any current litigation on our business, financial position, results of operations or liquidity.

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 our Annual Report on Form 10-K for the year ended December 31, 2022 and 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 I. FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements

EVENTBRITE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value amounts and share data) (Unaudited)
	September 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	567,646	$	539,299
Funds receivable	32,787		43,525
Short-term investments, at amortized cost	152,378		84,224
Accounts receivable, net	2,827		2,266
Creator signing fees, net	913		645
Creator advances, net	1,664		721
Prepaid expenses and other current assets	9,880		12,479
Total current assets	768,095		683,159
Restricted cash	897		875
Creator signing fees, net noncurrent	1,397		1,103
Property and equipment, net	9,422		6,348
Operating lease right-of-use assets	212		5,179
Goodwill	174,388		174,388
Acquired intangible assets, net	15,428		21,907
Other assets	2,119		2,420
Total assets	$	971,958	$	895,379
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable, creators	$	373,825	$	309,313
Accounts payable, trade	1,297		1,032
Chargebacks and refunds reserve	10,004		13,136
Accrued compensation and benefits	15,833		11,635
Accrued taxes	6,686		12,515
Operating lease liabilities	1,538		2,810
Other accrued liabilities	16,258		10,538
Total current liabilities	425,441		360,979
Accrued taxes, noncurrent	7,871		8,820
Operating lease liabilities, noncurrent	2,175		3,345
Long-term debt	357,137		355,580
Other liabilities	—		100
Total liabilities	792,624		728,824
Commitments and contingencies (Note 17)
Stockholders’ equity
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, no shares issued or outstanding as of September 30, 2023 and December 31, 2022	—		—
Common stock, $0.00001 par value; 1,100,000,000 shares authorized; 100,621,010 shares issued and outstanding as of September 30, 2023; 99,169,432 shares issued and outstanding as of December 31, 2022	1		1
Additional paid-in capital	993,830		955,509
Accumulated deficit	(814,497)		(788,955)
Total stockholders’ equity	179,334		166,555
Total liabilities and stockholders’ equity	$	971,958	$	895,379
(See accompanying Notes to Unaudited Condensed Consolidated Financial Statements)

2

EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net revenue	$	81,544	$	67,472	$	238,370	$	189,388
Cost of net revenue	25,867		23,450		76,865		66,465
Gross profit	55,677		44,022		161,505		122,923
Operating expenses
Product development	23,041		22,249		73,091		63,308
Sales, marketing and support	21,063		14,455		53,802		41,866
General and administrative	23,137		20,596		66,681		58,908
Total operating expenses	67,241		57,300		193,574		164,082
Loss from operations	(11,564)		(13,278)		(32,069)		(41,159)
Interest income	7,569		1,950		19,948		2,407
Interest expense	(2,821)		(2,826)		(8,359)		(8,461)
Other income (expense), net	(2,357)		(7,050)		(3,230)		(12,225)
Loss before income taxes	(9,173)		(21,204)		(23,710)		(59,438)
Income tax provision (benefit)	762		(80)		1,832		(41)
Net loss	$	(9,935)	$	(21,124)	$	(25,542)	$	(59,397)
Net loss per share, basic and diluted	$	(0.10)	$	(0.21)	$	(0.26)	$	(0.61)
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted	100,540		98,543		100,030		98,069

(See accompanying Notes to Unaudited Condensed Consolidated Financial Statements)

3

EVENTBRITE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(in thousands, except share data)

(Unaudited)

	Common Stock-Class A			Common Stock-Class B			Additional Paid-In Capital		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2022	81,529,265	$	1	17,640,167	$	—	$	955,509	$	(788,955)	$	166,555
Issuance of common stock upon exercise of stock options	77,378	—		—	—		463		—		463
Issuance of restricted stock awards	10,375	—		—	—		—		—		—
Issuance of common stock for settlement of RSUs	551,060	—		—	—		—		—		—
Shares withheld related to net share settlement	(193,445)	—		—	—		(1,822)		—		(1,822)
Stock-based compensation	—	—		—	—		12,365		—		12,365
Net loss	—	—		—	—		—		(12,686)		(12,686)
Balance at March 31, 2023	81,974,633	$	1	17,640,167	$	—	$	966,515	$	(801,641)	$	164,875
Issuance of common stock upon exercise of stock options	46,035	—		—	—		285		—		285
Issuance of restricted stock awards	1,964	—		—	—		—		—		—
Issuance of common stock for settlement of RSUs	609,839	—		—	—		—		—		—
Shares withheld related to net share settlement	(199,245)	—		—	—		(1,379)		—		(1,379)
Issuance of common stock for ESPP purchase	91,827	—		—	—		567		—		567
Stock-based compensation	—	—		—	—		14,987		—		14,987
Net loss	—	—		—	—		—		(2,921)		(2,921)
Balance at June 30, 2023	82,525,053	$	1	17,640,167	$	—	$	980,975	$	(804,562)	$	176,414
Issuance of common stock upon exercise of stock options	25,296	—		—	—		182		—		182
Issuance of restricted stock awards	13,261	—		—	—		—		—		—
Issuance of common stock for settlement of RSUs	623,096	—		—	—		—		—		—
Shares withheld related to net share settlement	(205,863)	—		—	—		(2,285)		—		(2,285)
Conversion of common stock from Class B to Class A	1,977,495	—		(1,977,495)	—		—		—		—
Stock-based compensation	—	—		—	—		14,958		—		14,958
Net loss	—	—		—	—		—		(9,935)		(9,935)
Balance at September 30, 2023	84,958,338	$	1	15,662,672	$	—	$	993,830	$	(814,497)	$	179,334

4

	Common Stock-Class A			Common Stock-Class B			Additional Paid-In Capital		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2021	79,524,112	$	1	17,722,353	$	—	$	903,470	$	(733,571)	$	169,900
Issuance of common stock upon exercise of stock options	207,361	—		—	—		1,464		—		1,464
Issuance of restricted stock awards	2,515	—		—	—		—		—		—
Issuance of common stock for settlement of RSUs	341,723	—		—	—		—		—		—
Shares withheld related to net share settlement	(117,374)	—		—	—		(1,711)		—		(1,711)
Conversion of common stock from Class B to Class A	3,266	—		(3,266)	—		—		—		—
Stock-based compensation	—	—		—	—		12,968		—		12,968
Net loss	—	—		—	—		—		(18,185)		(18,185)
Balance at March 31, 2022	79,961,603	$	1	17,719,087	$	—	$	916,191	$	(751,756)	$	164,436
Issuance of common stock upon exercise of stock options	156,014	—		—	—		1,405		—		1,405
Issuance of restricted stock awards	39,795	—		—	—		—		—		—
Issuance of common stock for settlement of RSUs	559,321	—		—	—		—		—		—
Shares withheld related to net share settlement	(195,195)	—		—	—		(2,084)		—		(2,084)
Conversion of common stock from Class B to Class A	1,218	—		(1,218)	—		—		—		—
Issuance of common stock for ESPP purchase	79,282	—		—	—		790		—		790
Stock-based compensation	—	—		—	—		14,356		—		14,356
Net loss	—	—		—	—		—		(20,088)		(20,088)
Balance at June 30, 2022	80,602,038	$	1	17,717,869	$	—	$	930,658	$	(771,844)	$	158,815
Issuance of common stock upon exercise of stock options	28,708	—		—	—		158		—		158
Issuance of restricted stock awards	7,185	—		—	—		—		—		—
Issuance of common stock for settlement of RSUs	506,715	—		—	—		—		—		—
Shares withheld related to net share settlement	(183,126)	—		—	—		(1,543)		—		(1,543)
Conversion of common stock from Class B to Class A	77,702	—		(77,702)	—		—		—		—
Stock-based compensation	—	—		—	—		13,810		—		13,810
Net loss	—	—		—	—		—		(21,124)		(21,124)
Balance at September 30, 2022	81,039,222	$	1	17,640,167	$	—	$	943,083	$	(792,968)	$	150,116
(See accompanying Notes to Unaudited Condensed Consolidated Financial Statements)

5

EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
	Nine Months Ended September 30,
	2023		2022
Cash flows from operating activities
Net loss	$	(25,542)	$	(59,397)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	9,934		11,059
Stock-based compensation expense	41,161		40,618
Amortization of debt discount and issuance costs	1,557		1,503
Unrealized (gain) loss on foreign currency exchange	(103)		12,644
Accretion on short-term investments	(5,477)		—
Non-cash operating lease expenses	5,088		2,361
Amortization of creator signing fees	742		955
Adjustments related to creator advances, creator signing fees, and allowance for credit losses	(1,671)		(1,792)
Provision for chargebacks and refunds	9,549		10,909
Other	1,464		618
Changes in operating assets and liabilities:
Accounts receivable	(1,181)		(1,728)
Funds receivable	10,917		(9,077)
Creator signing fees and creator advances	44		2,930
Prepaid expenses and other assets	2,900		8,424
Accounts payable, creators	64,711		82,971
Accounts payable	328		(363)
Chargebacks and refunds reserve	(12,681)		(11,907)
Accrued compensation and benefits	4,198		387
Accrued taxes	(7,846)		(6,048)
Operating lease liabilities	(2,563)		(3,260)
Other accrued liabilities	6,271		(9,340)
Net cash provided by operating activities	101,800		72,467
Cash flows from investing activities
Purchase of short-term investments	(273,677)		—
Maturities of short-term investments	211,000		—
Purchases of property and equipment	(991)		(1,254)
Capitalized internal-use software development costs	(4,848)		(2,305)
Cash paid for acquisitions	—		(1,125)
Net cash used in investing activities	(68,516)		(4,684)
Cash flows from financing activities
Proceeds from exercise of stock options	930		3,027
Taxes paid related to net share settlement of equity awards	(5,486)		(5,338)
Proceeds from issuance of common stock under ESPP	567		790
Principal payments on finance lease obligations	(1)		(64)
Net cash used in financing activities	(3,990)		(1,585)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(925)		(25,196)
Net increase in cash, cash equivalents and restricted cash	28,369		41,002
Cash, cash equivalents and restricted cash
Beginning of period	540,174		636,159
End of period	$	568,543	$	677,161

6

EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
	Nine Months Ended September 30,
	2023		2022
Supplemental cash flow data
Interest paid	$	5,336	$	5,486
Income taxes paid, net of refunds	517		234
Non-cash investing and financing activities
Reduction of right of use asset due to modification or exit	$	3,917	$	2,163
(See accompanying Notes to Unaudited Condensed Consolidated Financial Statements)

7

EVENTBRITE, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

1. Overview and Basis of Presentation

Description of Business

Eventbrite, Inc. (Eventbrite or the Company) connects event creators - the people who bring others together to share their passions, artistry and causes through live experiences - with their audiences. Through the Company’s highly-scalable self-service platform, Eventbrite enables event creators to plan, promote and sell tickets to their events. Eventbrite’s consumer-facing experiences enable event seekers to find experiences they love and serve as a demand generating engine for event creators. Eventbrite is focused on delivering products that enable creators to grow their audience reach and generate demand for their events, and is investing in an enhanced event discovery experience for consumers. As more creators and consumers view Eventbrite as a trusted place for live events, the Company believes it can drive more ticket sales and enhance its market position as a leading live events marketplace.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and the applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal and recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations and cash flows for the interim periods. The condensed consolidated balance sheet at December 31, 2022 has been derived from audited consolidated financial statements as of that date. All intercompany transactions and balances have been eliminated. The interim results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any other future annual or interim period.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Form 10-K).

Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements

The Company identified an error within the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2022 primarily related to cash balances held on behalf of creators that are denominated in currencies other than the functional currency. The effect of exchange rate changes on these cash balances were not disclosed as a separate item in the reconciliation of beginning and ending balances of cash. Additionally, the unrealized foreign currency transaction gains and losses were not disclosed as a reconciliation item in the cash flow from operating activities. The unaudited condensed consolidated financial statements for the nine months ended September 30, 2022 have been amended and restated to correct for such errors. This restatement had no impact on the Company's previously reported consolidated net income, financial position, net change in cash, cash equivalents, and restricted cash, or total cash, cash equivalents, and restricted cash as reported on the Company's consolidated statements of cash flows.

The following table summarizes the impact of the adjustments for the period presented:

	Nine Months Ended September 30, 2022
	As Reported		Adjustments		As Restated
Net cash provided by operating activities	$	47,271	$	25,196	$	72,467
Net cash used in investing activities	(4,684)		—		(4,684)
Net cash used in financing activities	(1,585)		—		(1,585)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—		(25,196)		(25,196)
Change in cash and cash equivalents	$	41,002	$	—	$	41,002

8

Reclassifications

The Company reclassified interest income to a separate financial statement line item within the consolidated statements of operations from Other income (expense), net. The prior period interest income presentations in the Company's condensed consolidated statements of operations have been changed to conform to the current period presentation. These disaggregated presentations had no impact on previously reported total loss before income taxes.

Significant Accounting Policies

There have been no changes to the Company's significant accounting policies described in the 2022 Form 10-K that have had a material impact on the Company's unaudited condensed consolidated financial statements and related notes.

Use of Estimates

In order to conform with U.S. GAAP, the Company is required to make certain estimates, judgments and assumptions when preparing its consolidated financial statements. These estimates, judgments and assumptions affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods. These estimates include, but are not limited to, the recoverability of creator signing fees and creator advances, chargebacks and refunds reserve, certain assumptions used in the valuation of equity awards, assumptions used in determining the fair value of business combinations, the allowance for credit losses, and indirect tax reserves. The Company evaluates these estimates on an ongoing basis. Actual results could differ from those estimates and such differences could be material to the Company’s consolidated financial statements.

Comprehensive Loss

For all periods presented, comprehensive loss equaled net loss. Therefore, the condensed consolidated statements of comprehensive loss have been omitted from the unaudited condensed consolidated financial statements.

Segment Information

The Company’s Chief Executive Officer (CEO) is the chief operating decision maker. The Company's CEO reviews discrete financial information presented on a consolidated basis for purposes of allocating resources and evaluating the Company’s financial performance. Accordingly, the Company has determined that it operates as a single operating segment and has one reportable segment.

2. Restructuring

On February 27, 2023, the Board of Directors of the Company approved a restructuring plan (the Plan) that is designed to reduce operating costs, drive efficiencies by consolidating development and support talent into regional hubs, and enable investment for potential long-term growth. The actions associated with the Plan are expected to substantially complete by the end of 2023 and the Company expects to incur total estimated costs of up to $20 million.

The Company primarily incurred employee severance and other termination benefits costs, as well as lease abandonment costs in connection with the Plan. Severance benefits provided to employees were generally recognized on the communication date. Certain severance benefits and retention bonuses are contingent on continued service until the applicable termination date to support the transition of certain roles to different locations, and are recognized ratably over the requisite service period. The Company closed certain offices as part of the Plan and the amortization of the remaining right-of-use assets was accelerated related to the lease abandonment.

The recognition of restructuring related costs requires the Company to make certain judgments and estimates regarding the nature, timing and amount of costs associated with the Plan. To the extent the Company’s actual results differ from its estimates and assumptions, the Company may be required to revise the estimates of future accrued restructuring liabilities. At the end of each reporting period, the Company evaluates the remaining accrued restructuring balances to ensure that the accruals continue to reflect the best estimate in accordance with the execution of the Plan.

The Company incurred costs of $0.8 million in connection with the Plan during the three months ended September 30, 2023, which consisted of costs related to severance and other employee termination benefits.

The Company incurred costs of $15.1 million in connection with the Plan during the nine months ended September 30, 2023, which consisted of $10.8 million in costs related to severance and other employee termination benefits, and $4.3 million primarily related to lease abandonment costs.

9

A summary of the restructuring related costs by activity type is as follows (in thousands):

	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	Severance and other termination benefits		Lease abandonment and related charges		Total		Severance and other termination benefits		Lease abandonment and related charges		Total
Cost of net revenue	$	237	$	—	$	237	$	1,259	$	426	$	1,685
Product development	140		—		140		5,385		1,346		6,731
Sales, marketing and support	94		—		94		1,406		1,041		2,447
General and administrative	279		4		283		2,778		1,491		4,269
Total	$	750	$	4	$	754	$	10,828	$	4,304	$	15,132

The following table is a summary of the changes in the restructuring related liabilities, included within accrued compensation and benefits and other accrued liabilities on the consolidated balance sheets, associated with the Plan (in thousands):

Balance as of January 1, 2023	$	—
Restructuring related costs accrued	15,132
Cash payment	(8,101)
Non-cash items applied	(4,304)
Balance as of September 30, 2023	$	2,727

The Company expects the remaining liabilities as of September 30, 2023 to be substantially paid out in cash by the end of 2023.

3. Revenue Recognition

The Company derives its revenues from a mix of marketplace activities. Revenue is primarily derived from ticketing fees and payment processing fees. The Company also derives a portion of revenues from organizer fees and advertising services. The Company's customers are event creators who use the Company's platform to sell tickets and market events to attendees. Revenue is recognized when or as control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.

Ticketing Revenue

For ticketing services, the Company's service provides a platform to the event creator and attendee to transact. The Company's performance obligation is to facilitate and process that transaction and issue the ticket, and other than as described below under "Organized Fee Revenue," revenue is recognized by the Company when the ticket is sold. The amount that the Company earns for its services is fixed which typically consists of a flat fee and a percentage based fee per ticket. As a result, the Company records revenue on a net basis related to its ticketing service fees.

For payment processing services, the Company's service provides the event creator with the choice of whether to use Eventbrite Payment Processing (EPP) or to use a third-party payment processor, referred to as Facilitated Payment Processing (FPP).

Under the EPP option, the Company is the merchant of record and is responsible for processing the transaction and collecting the face value of the ticket and all associated fees at the time the ticket is sold. The Company is also responsible for remitting these amounts collected, less the Company's fees, to the event creator. For EPP services, the Company determined that it is the principal in providing the service as the Company is responsible for fulfilling the promise to process the payment and has discretion in establishing the price of its service. As a result, the Company records revenue on a gross basis related to its EPP service fees. Costs incurred for processing the ticketing transactions are included in cost of net revenues in the consolidated statements of operations. Under the FPP option, the Company is not responsible for processing the transaction or collecting the face value of the ticket and associated fees. In this case, the Company records revenue on a net basis related to its FPP service fees.

Revenue is presented net of indirect taxes, customer refunds, payment chargebacks, estimated uncollectible amounts, creator royalties, and amortization of creator signing fees. Previously, the Company offered upfront payments to creators

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entering into new or renewed ticketing arrangements. However, the Company is shifting from upfront payment incentives to performance based incentives on a limited basis.

If an event is canceled by a creator, then any obligations to provide refunds to event attendees are the responsibility of that creator. If a creator is unwilling or unable to fulfill their refund obligations, the Company may, at its discretion, provide attendee refunds.

Advertising Revenue

In the third quarter of 2022, the Company introduced advertising services. Advertising services enable creators to promote featured content on the Eventbrite platform or mobile application. The Company considers that it satisfies its performance obligation as it provides the services to customers and recognizes revenue as advertising impressions are displayed to the consumers.

Organizer Fee Revenue

In the second quarter of 2023, the Company expanded access to its comprehensive suite of event marketing tools to all creators and introduced new pricing plans and subscription packages to creators when publishing events on the Eventbrite marketplace. Under the new pricing plans, the Company charges an organizer fee under two plan options.

The Flex plan is charged per event. The Company considers that it satisfies its performance obligation as it provides services to creators to publish their event on the Eventbrite marketplace based on the ticket capacity and recognizes revenue at this point-in-time. The Pro plan is a monthly subscription to publish unlimited events. The Company considers that it satisfies its performance obligation as it provides the subscribed services under the plan and recognizes revenue ratably over the subscription period.

4. Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid financial instruments, including bank deposits, money market funds and U.S. Treasury securities with an original maturity of three months or less at the date of purchase, to be cash equivalents. Due to the short-term nature of the instruments, the carrying amounts reported in the consolidated balance sheets approximate their fair value.

Cash and cash equivalents balances include the face value of tickets sold on behalf of creators and their share of service charges, which are to be remitted to the creators. Such balances were $344.0 million and $269.4 million as of September 30, 2023 and December 31, 2022, respectively. These ticketing proceeds are legally unrestricted, and the Company invests a portion of ticketing proceeds in U.S. Treasury bills. These amounts due to creators are included in accounts payable, creators on the consolidated balance sheets.

The Company has issued letters of credit relating to contracts entered into with other parties under lease agreements and other agreements which have been collateralized with cash. This cash is classified as noncurrent restricted cash on the consolidated balance sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows (in thousands):

	September 30, 2023		December 31, 2022		September 30, 2022
Cash and cash equivalents	$	567,646	$	539,299	$	675,817
Restricted cash	897		875		1,344
Total cash, cash equivalents and restricted cash	$	568,543	$	540,174	$	677,161

5. Short-term Investments

The Company invests certain of its excess cash in short-term debt instruments which consist of U.S. Treasury bills with original maturities greater than three months and less than one year. All short-term investments are classified as held-to-maturity and are recorded and held at amortized cost. Investments are considered to be impaired when a decline in fair value is deemed to be other-than-temporary. Once a decline in fair value is determined to be other-than-temporary, the carrying value of an instrument is adjusted to its fair value on a non-recurring basis. No such fair value impairment was recognized during the nine months ended September 30, 2023 and year ended December 31, 2022.

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The following tables summarize the Company's financial instruments that were measured at fair value on a non-recurring basis (in thousands):

		September 30, 2023
Description	Classification	Amortized cost		Gross unrecognized holding gains		Gross unrecognized holdings losses		Aggregate fair value
Savings deposits	Cash equivalents	$	50,128	$	—	$	—	$	50,128
US Treasury securities	Short-term investments	152,378		4		(14)		152,368
		$	202,506	$	4	$	(14)	$	202,496

		December 31, 2022
Description	Classification	Amortized cost		Gross unrecognized holding gains		Gross unrecognized holdings losses		Aggregate fair value
Savings deposits	Cash equivalents	$	31,288	$	—	$	—	$	31,288
US Treasury securities	Cash equivalents	85,201		17		—		85,218
US Treasury securities	Short-term investments	84,224		10		(5)		84,229
		$	200,713	$	27	$	(5)	$	200,735

6. Funds Receivable

Funds receivable represents cash-in-transit from third-party payment processors that is received by the Company within approximately five business days from the date of the underlying ticketing transaction. For periods ending on a weekend or a bank holiday, the funds receivable balance will typically be higher than for periods ending on a weekday, as the Company settles payment processing activity on business days. The funds receivable balance includes the face value of tickets sold on behalf of creators and their share of service charges, which amounts are to be remitted to the creators. Such amounts were $29.8 million and $39.9 million as of September 30, 2023 and December 31, 2022, respectively.

7. Accounts Receivable, Net

Accounts receivable, net is comprised of invoiced amounts to customers who use FPP for payment processing as well as other invoiced amounts. In evaluating the Company’s ability to collect outstanding receivable balances, the Company considers various factors including the age of the balance, the creditworthiness of the customer and the customer’s current financial condition. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The following table summarizes the Company’s accounts receivable balance (in thousands):

	September 30, 2023		December 31, 2022
Accounts receivable, customers	$	3,604	$	2,967
Allowance for credit losses	(777)		(701)
Accounts receivable, net	$	2,827	$	2,266

8. Creator Signing Fees, Net

Creator signing fees, net are incentives that are offered and paid by the Company to secure exclusive ticketing and payment processing rights with certain creators. The benefit the Company receives by securing exclusive ticketing and payment processing rights with certain creators from creator signing fees is inseparable from the customer relationship with the creators and accordingly the amortization of these fees is recorded as a reduction of revenue in the consolidated statements of operations.

As of September 30, 2023, the balance of creator signing fees, net is being amortized over a weighted-average remaining contract life of 2.3 years on a straight-line basis. The following table summarizes the activity in creator signing fees for the periods indicated (in thousands):

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance, beginning of period	$	2,569	$	2,538	$	1,748	$	3,409
Creator signing fees paid	—		—		30		5
Amortization of creator signing fees	(275)		(281)		(742)		(955)
Write-offs and other adjustments	16		(75)		1,274		(277)
Balance, end of period	$	2,310	$	2,182	$	2,310	$	2,182

Creator signing fees are classified as follows on the condensed consolidated balance sheet as of the dates indicated (in thousands):

	September 30, 2023		December 31, 2022		September 30, 2022
Creator signing fees, net	$	913	$	645	$	929
Creator signing fees, net noncurrent	1,397		1,103		1,253
Total creator signing fees	$	2,310	$	1,748	$	2,182

9. Creator Advances, Net

Creator advances are incentives that are offered by the Company which provide the creator with funds in advance of the event. These are subsequently recovered by withholding amounts due to the Company from the sale of tickets for the event until the creator payment has been fully recovered.

The following table summarizes the activity in creator advances for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance, beginning of period	$	695	$	1,150	$	721	$	862
Creator advances paid	722		—		822		335
Creator advances recouped	(110)		(325)		(528)		(2,247)
Write-offs and other adjustments	357		—		649		1,875
Balance, end of period	$	1,664	$	825	$	1,664	$	825

10. Accounts Payable, Creators

Accounts payable, creators consists of unremitted ticket sale proceeds, net of Eventbrite service fees and applicable taxes. Amounts are remitted to creators within five business days subsequent to the completion of the related event. Creators may apply to receive a portion of these proceeds prior to completion of their events.

For qualified creators, the Company passes ticket sales proceeds to the creator prior to the event, subject to certain limitations. Internally, the Company refers to these payments as advance payouts. When an advance payout is made, the Company reduces its cash and cash equivalents with a corresponding decrease to its accounts payable, creators. As of September 30, 2023 and December 31, 2022, advance payouts outstanding was $142.3 million and $193.1 million, respectively.

11. Chargebacks and Refunds Reserve

The terms of the Company's standard merchant agreement obligate creators to reimburse attendees who are entitled to refunds. The Company records estimates for refunds and chargebacks of its fees as contra-revenue. When the Company provides advance payouts, it assumes risk that the event may be canceled, fraudulent, or materially not as described, resulting in significant chargebacks and refund requests. See Note 10, “Accounts Payable, Creators”. If the creator is insolvent, has spent the proceeds of the ticket sales for event-related costs, has canceled the event, or has engaged in fraudulent activity, the Company may not be able to recover its losses from these events, and such unrecoverable amounts could equal the value of the transaction or transactions settled to the creator prior to the event that is disputed, plus any associated chargeback fees not assumed by the creator. The Company records reserves for estimated advance payout losses as an operating expense classified

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within sales, marketing and support.

Reserves are recorded based on the Company's assessment of various factors, including the amounts paid and outstanding to creators in conjunction with the advance payout program, macroeconomic conditions, and actual chargeback and refund activity trends. The chargebacks and refunds reserve was $10.0 million and $13.1 million which primarily includes reserve balances for estimated advance payout losses of $7.9 million and $11.2 million as of September 30, 2023 and December 31, 2022, respectively.

The Company will adjust reserves in the future to reflect best estimates of future outcomes. The Company cannot predict the outcome of or estimate the possible recovery or range of recovery from these matters. It is possible that the reserve amount will not be sufficient and the Company's actual losses could be materially different from its current estimates.

12. Property and Equipment, Net

Property and equipment, net consisted of the following as of the dates indicated (in thousands):

	September 30, 2023		December 31, 2022
Capitalized internal-use software development costs	$	61,006	$	55,009
Furniture and fixtures	193		869
Computers and computer equipment	3,849		6,854
Leasehold improvements	984		4,243
Finance lease right-of-use assets	—		597
Property and equipment	66,032		67,572
Less: Accumulated depreciation and amortization	(56,610)		(61,224)
Property and equipment, net	$	9,422	$	6,348

The Company recorded the following amounts related to depreciation of fixed assets and capitalized internal-use software development costs during the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Depreciation expense	$	241	$	704	$	962	$	1,475
Amortization of capitalized internal-use software development costs	870		822		2,493		2,657

13. Leases

Operating Leases

The Company has operating leases primarily for office space. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Right-of-use assets also include adjustments related to prepaid or deferred lease payments and lease incentives. In calculating the present value of the lease payments, the Company utilizes its incremental borrowing rate, as the rates implicit in the leases were not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

As part of the restructuring plan described in Note 2, the Company closed certain offices in April 2023 to reflect the geographic distribution of the Company’s employees and $3.9 million for the amortization of the right-of-use assets was accelerated in the nine months ended September 30, 2023.

The components of operating lease costs were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease costs	$	86	$	798	$	5,088	$	2,361
Sublease income	—		(48)		(104)		(154)
Total operating lease costs, net	$	86	$	750	$	4,984	$	2,207

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As of September 30, 2023, the Company's operating leases had a weighted-average remaining lease term of 2.4 years and a weighted-average discount rate of 3.9%.

As of September 30, 2023, maturities of operating lease liabilities were as follows (in thousands):

	Operating Leases
The remainder of 2023	$	433
2024	1,633
2025	1,672
2026 and thereafter	141
Total future operating lease payments	3,879
Less: Imputed interest	(166)
Total operating lease liabilities	$	3,713
Operating lease liabilities, current	$	1,538
Operating lease liabilities, noncurrent	2,175
Total operating lease liabilities	$	3,713

14. Goodwill and Acquired Intangible Assets, Net

The carrying amounts of the Company's goodwill was $174.4 million as of September 30, 2023 and December 31, 2022. The Company tests goodwill for impairment at least annually, in the fourth quarter, or whenever events or changes in circumstances would more likely than not reduce the fair value of its single reporting unit below its carrying value. The Company did not record any goodwill impairment during the nine months ended September 30, 2023.

Acquired intangible assets consisted of the following (in thousands):

	September 30, 2023						December 31, 2022
	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
Developed technology	$	22,396	$	(21,471)	$	925	$	22,396	$	(20,854)	$	1,542
Customer relationships	74,884		(60,381)		14,503		74,884		(54,519)		20,365
Tradenames	1,650		(1,650)		—		1,650		(1,650)		—
Acquired intangible assets, net	$	98,930	$	(83,502)	$	15,428	$	98,930	$	(77,023)	$	21,907

The following tables set forth the amortization expense recorded related to acquired intangible assets during the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of net revenue	$	208	$	208	$	617	$	617
Sales, marketing and support	1,906		2,071		5,862		6,291
General and administrative	—		6		—		19
Total amortization of acquired intangible assets	$	2,114	$	2,285	$	6,479	$	6,927

As of September 30, 2023, the total expected future amortization expense of acquired intangible assets by year is as follows (in thousands):

The remainder of 2023	$	2,114
2024	8,300
2025	5,014
Total expected future amortization expense	$	15,428

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15. Fair Value Measurement

The Company measures its financial assets and liabilities at fair value at each reporting date using a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – Other inputs that are directly or indirectly observable in the marketplace.

Level 3 – Unobservable inputs that are supported by little or no market activity.

The Company’s cash equivalents, funds receivable, accounts receivable, accounts payable and other current liabilities approximate their fair value. All of these financial assets and liabilities are Level 1, except for debt. See Note 16, “Debt”, for details regarding the fair value of the Company's convertible senior notes.

16. Debt

As of September 30, 2023 and December 31, 2022, long-term debt consisted of the following (in thousands):

	September 30, 2023						December 31, 2022
	2026 Notes		2025 Notes		Total		2026 Notes		2025 Notes		Total
Outstanding principal balance	$	212,750	$	150,000	$	362,750	$	212,750	$	150,000	$	362,750
Less: Debt issuance costs	(3,129)		(2,484)		(5,613)		(3,896)		(3,274)		(7,170)
Carrying amount, long-term debt	$	209,621	$	147,516	$	357,137	$	208,854	$	146,726	$	355,580

The following tables set forth the total interest expense recognized related to the term loans and the convertible notes for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cash interest expense	$	2,274	$	2,274	$	6,801	$	6,801
Amortization of debt issuance costs	548		529		1,557		1,504
Total interest expense	$	2,822	$	2,803	$	8,358	$	8,305

The following table summarizes the Company's contractual obligation to settle commitments related to the 2026 Notes and 2025 Notes as of September 30, 2023 (in thousands):

	Payments due by Year
	Total		2023		2024		2025		2026		2027 and thereafter
Convertible Senior Notes Due 2026	$	212,750	$	—	$	—	$	—	$	212,750	$	—
Interest obligations on 2026 Notes (1)	4,788		—		1,596		1,596		1,596		—
Convertible Senior Notes Due 2025	150,000		—		—		150,000		—		—
Interest obligations on 2025 Notes (1)	18,750		3,750		7,500		7,500		—		—

(1) The 2026 Notes and 2025 Notes bear interest at a fixed rate of 0.750% and 5.000% per year, respectively.

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Senior Notes

2025 Notes

In June 2020, the Company issued $150.0 million aggregate principal amount of 5.000% convertible senior notes due 2025 (the 2025 Notes), in a private offering to qualified institutional buyers. Interest is payable in cash semi-annually in arrears on June 1 and December 1 of each year. The 2025 Notes mature on December 1, 2025, unless earlier repurchased, redeemed or converted. The total net proceeds from the 2025 Notes, after deducting the debt issuance costs of $5.7 million, was $144.3 million.

Prior to the adoption of Accounting Standards Update (ASU) 2020-06, the Company separated the conversion option of the 2025 Notes from the debt instrument and classified the conversion option in equity. The Company early adopted ASU 2020-06 on January 1, 2021 using the modified retrospective transition method. Adoption of ASU 2020-06 resulted in a decrease to additional paid-in capital of $45.5 million, an increase to retained earnings of $3.1 million, and a net increase to long-term debt of $42.4 million.

The effective interest rate of the 2025 Notes is 5.8%. The Company recorded cash interest of $5.6 million, and amortization of debt issuance costs of $0.8 million during the nine months ended September 30, 2023 and September 30, 2022.

The 2025 Notes are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the 2025 Notes; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries.

The terms of the 2025 Notes are governed by an Indenture by and between the Company and Wilmington Trust, National Association, as Trustee (the Indenture). The Company may irrevocably elect a settlement in cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock.

The 2025 Notes are convertible at an initial conversion rate of 79.3903 shares of Class A common stock per $1,000 principal amount of 2025 Notes, which is equal to an initial conversion price of approximately $12.60 per share of Class A common stock. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture. Holders of the 2025 Notes may convert all or a portion of their 2025 Notes only in multiples of $1,000 principal amount, under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price per share of Class A common stock exceeds 130% of the conversion price of the 2025 Notes for each of the at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter;

•during the five consecutive business days immediately after any 10 consecutive trading day period in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of that 10 consecutive trading day period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate on such trading day;

•upon the occurrence of certain corporate events or distributions on the Company's Class A common stock, as described in the Indenture;

•if the Company calls the 2025 Notes for redemption; or

•at any time from, and including, June 2, 2025 until the close of business on the second scheduled trading day immediately before the maturity date.

Holders of the 2025 Notes who convert their 2025 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the Indenture) are, under certain circumstances, entitled to an increase in the conversion rate.

No sinking fund is provided for the 2025 Notes. The 2025 Notes are redeemable, in whole or in part, at the Company's option at any time and from time to time, on or after June 1, 2023 and on or before the 40th scheduled trading day immediately prior to the maturity date, at a cash redemption price equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of Class A common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during

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the 30 consecutive trading dates ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (2) the trading day immediately before the date the Company sends such notice. Additionally, calling any of the 2025 Notes for redemption will constitute a make-whole fundamental change with respect to that portion of the 2025 Notes, in which case the conversion rate applicable to the conversion of those 2025 Notes will be increased in certain circumstances (as described in the Indenture) if it is converted after it is called for redemption.

If certain corporate events that constitute a “Fundamental Change” (as defined in the Indenture) occur, then, subject to a limited exception for certain cash mergers, note holders may require the Company to repurchase their 2025 Notes at a cash repurchase price equal to the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the Fundamental Change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to the Company’s Class A common stock.

The 2025 Notes have customary provisions relating to the occurrence of “Events of Default” (as defined in the Indenture), which include the following: (i) certain payment defaults on the 2025 Notes; (ii) the Company’s failure to send certain notices under the Indenture within specified periods of time; (iii) the Company’s failure to comply with certain covenants in the Indenture relating to the Company’s ability to consolidate with or merge with or into, or sell, lease or otherwise transfer, in one transaction or a series of transactions, all or substantially all of the assets of the Company and its subsidiaries, taken as a whole, to another person; (iv) a default by the Company in its other obligations or agreements under the Indenture or the 2025 Notes if such default is not cured or waived within 60 days after notice is given in accordance with the Indenture; (v) the rendering of certain judgments against the Company or any of its subsidiaries for the payment of at least $10,000,000, where such judgments are not discharged or stayed within 45 days after the date on which the right to appeal has expired or on which all rights to appeal have been extinguished; (vi) certain defaults by the Company or any of its significant subsidiaries with respect to indebtedness for borrowed money of at least $10,000,000; and (vii) certain events of bankruptcy, insolvency and reorganization involving the Company or any of the Company’s significant subsidiaries.

If an Event of Default involving bankruptcy, insolvency or reorganization events with respect to the Company (and not solely with respect to a significant subsidiary of the Company) occurs, then the principal amount of, and all accrued and unpaid interest on, all of the 2025 Notes then outstanding will immediately become due and payable without any further action or notice by any person. If any other Event of Default occurs and is continuing, then, the Trustee, by notice to the Company, or noteholders of at least 25% of the aggregate principal amount of 2025 Notes then outstanding, by notice to the Company and the Trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the 2025 Notes then outstanding to become due and payable immediately. However, notwithstanding the foregoing, the Company may elect, at its option, that the sole remedy for an Event of Default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture consists exclusively of the right of the noteholders to receive special interest on the 2025 Notes for up to 180 days at a specified rate per annum not exceeding 0.50% on the principal amount of the 2025 Notes.

The fair value of the 2025 Notes, which the Company has classified as a Level 2 instrument, was $167.8 million as of September 30, 2023. The fair value of the 2025 Notes is determined using observable market prices on the last business day of the period.

2026 Notes

In March 2021, the Company issued $212.75 million aggregate principal amount of 0.750% convertible senior notes due 2026 (the 2026 Notes) in a private offering to qualified institutional buyers, inclusive of the initial purchaser's exercise in full of its option to purchase additional notes. The 2026 Notes bear interest at a fixed rate of 0.750% per year. Interest is payable in cash semi-annually in arrears on March 15 and September 15 of each year. The 2026 Notes mature on September 15, 2026 unless earlier repurchased, redeemed or converted. The total net proceeds from the 2026 Notes, after deducting debt issuance costs of $5.7 million, was $207.0 million.

The 2026 Notes are the Company’s senior, unsecured obligations and are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the 2026 Notes and effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iii) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries.

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Before March 15, 2026, noteholders will have the right to convert their 2026 Notes under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price per share of Class A common stock exceeds 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter;

•during the five consecutive business days immediately after any 10 consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of Class A common stock on such trading day and the conversion rate on such trading day;

•upon the occurrence of certain corporate events or distributions on Class A common stock, as described in the Indenture and

•if the Company call such notes for redemption;

From and after March 15, 2026, noteholders may convert their 2026 Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the 2026 Notes may be settled in cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock, at the Company's election. The Company may irrevocably elect a settlement in cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock.

The 2026 Notes are convertible at an initial conversion rate of 35.8616 shares of Class A common stock per $1,000 principal amount of 2026 Notes, which is equal to an initial conversion price of approximately $27.89 per share of Class A common stock. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.

No sinking fund is provided for the 2026 Notes. The 2026 Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after March 15, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s Class A common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (2) the trading day immediately before the date the Company sends such notice. In addition, calling any 2026 Note for redemption will constitute a Make-Whole Fundamental Change with respect to that Note, in which case the conversion rate applicable to the conversion of that 2026 Note will be increased in certain circumstances if it is converted after it is called for redemption.

If certain corporate events that constitute a “Fundamental Change” (as defined in the Indenture) occur, then, subject to a limited exception for certain cash mergers, noteholders may require the Company to repurchase their 2026 Notes at a cash repurchase price equal to the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid interest, if any. The definition of Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to the Company’s Class A common stock.

The 2026 Notes have customary provisions relating to the occurrence of “Events of Default” (as defined in the Indenture), which include the following: (i) certain payment defaults on the Notes (which, in the case of a default in the payment of interest on the Notes, will be subject to a 30-day cure period); (ii) the Company’s failure to send certain notices under the Indenture within specified periods of time; (iii) the Company’s failure to comply with certain covenants in the Indenture relating to the Company’s ability to consolidate with or merge with or into, or sell, lease or otherwise transfer, in one transaction or a series of transactions, all or substantially all of the assets of the Company and its subsidiaries, taken as a whole, to another person; (iv) a default by the Company in its other obligations or agreements under the Indenture or the Notes if such default is not cured or waived within 60 days after notice is given in accordance with the Indenture; (v) certain defaults by the Company or any of its significant subsidiaries with respect to indebtedness for borrowed money of at least $10,000,000; and (vi) certain events of bankruptcy, insolvency and reorganization involving the Company or any of the Company’s significant subsidiaries.

If an Event of Default involving bankruptcy, insolvency or reorganization events with respect to the Company (and not solely with respect to a significant subsidiary of the Company) occurs, then the principal amount of, and all accrued and unpaid interest on, all of the 2026 Notes then outstanding will immediately become due and payable without any further action or notice by any person. If any other Event of Default occurs and is continuing, then the Trustee, by notice to the Company, or noteholders of at least 25% of the aggregate principal amount of Notes then outstanding, by notice to the Company and the

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Trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the 2026 Notes then outstanding to become due and payable immediately. However, notwithstanding the foregoing, the Company may elect, at its option, that the sole remedy for an Event of Default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture consists exclusively of the right of the noteholders to receive special interest on the 2026 Notes for up to 180 days at a specified rate per annum not exceeding 0.50% on the principal amount of the 2026 Notes.

In accounting for the issuance of the 2026 Notes, total issuance costs of $5.7 million related to the 2026 Notes are being amortized to interest expense over the term of the 2026 Notes using the effective interest rate method.

The effective interest rate of the 2026 Notes is 1.3%. The Company recorded cash interest of $1.2 million, and amortization of debt issuance costs of $0.8 million during the nine months ended September 30, 2023 and September 30, 2022.

The fair value of the 2026 Notes, which the Company has classified as a Level 2 instrument, was $176.4 million as of September 30, 2023. The fair value of the 2026 Notes is determined using observable market prices on the last business day of the period.

Capped Call Transactions

In March 2021, in connection with the offering of the 2026 Notes, the Company entered into privately negotiated capped call transactions (2026 Capped Calls) with certain financial institutions (2026 Option Counterparties). The 2026 Capped Calls cover, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the 2026 Notes, the number of shares of Class A common stock initially underlying the 2026 Notes. The 2026 Capped Calls are expected generally to reduce potential dilution to the Class A common stock upon any conversion of 2026 Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of such converted 2026 Notes, as the case may be, with such reduction and/or offset subject to a cap. The cap price of the 2026 Capped Calls will initially be $37.5375 per share of Class A common stock, and is subject to certain customary adjustments under the terms of the 2026 Capped Calls. The 2026 Capped Calls will expire in September 2026, if not exercised earlier.

The 2026 Capped Calls are separate transactions entered into by the Company with each 2026 Option Counterparty, and are not part of the terms of the 2026 Notes and will not affect any noteholder’s rights under the 2026 Notes. Noteholders will not have any rights with respect to the 2026 Capped Calls.

The 2026 Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the company, including merger events, tender offers and announcement events. In addition, the 2026 Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the 2026 Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions.

The 2026 Capped Call Transactions do not meet the criteria for separate accounting as a derivative. The aggregate premium paid for the purchase of the 2026 Capped Calls of $18.5 million was recorded as a reduction to additional paid-in capital on the consolidated balance sheets in March 2021.

In June 2020, in connection with the offering of the 2025 Notes, the Company entered privately negotiated capped call transactions with certain financial institutions (2025 Capped Calls). The 2025 Capped Calls have an initial strike price of approximately $12.60 per share, which corresponds to the initial conversion price of the 2025 Notes. The 2025 Capped Calls cover, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the 2025 Notes, the number of shares of Class A common stock initially underlying the 2025 Notes. The 2025 Capped Calls are expected generally to reduce potential dilution to the Company’s Class A common stock upon any conversion of the 2025 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2025 Notes, as the case may be, with such reduction and/or offset subject to a cap, initially equal to $17.1520, and is subject to certain adjustments under the terms of the 2025 Capped Call transactions. The 2025 Capped Calls will expire in December 2025, if not exercised earlier.

The 2025 Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the company, including merger events, tender offers and announcement events. In addition, the 2025 Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the 2025 Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the 2025 Capped Calls are separate transactions, and not part of the terms of the Notes.

The 2025 Capped Call Transactions do not meet the criteria for separate accounting as a derivative. The aggregate premium paid for the purchase of the 2025 Capped Calls of $15.6 million was recorded as a reduction to additional paid-in capital on the consolidated balance sheets in June 2020.

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17. Commitments and Contingencies

The Company's principal commitments consist of obligations under the 2025 Notes and 2026 Notes (including principal and coupon interest), operating leases for office space, as well as non-cancellable purchase commitments. See Note 16, "Debt" for contractual obligations to settle commitments relating to the 2025 Notes, 2026 Notes and Note 13 "Leases" for operating leases for office space.

Other than as described above, there were no material changes outside the Company's normal course of business in its commitments under contractual obligations from those disclosed in the 2022 Form 10-K.

Litigation and Loss Contingencies

In addition to the litigation discussed below, from time to time, the Company may become a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, breach of contract claims, tax and other matters. Future litigation may be necessary to defend the Company or its creators.

The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

The Company accrues estimates for resolution of legal and other contingencies when losses are probable and reasonably estimable. The Company's assessment of losses is re-evaluated each accounting period and is based on all available information, including impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to each case. Nevertheless, it is possible that additional future legal costs including settlements, judgments, legal fees and other related defense costs could have a material adverse effect on the Company’s business, consolidated financial position, results of operations or liquidity.

The matter discussed below summarizes the Company’s current significant ongoing pending litigation.

Commercial Contract Litigation

On June 18, 2020, the Company filed a Complaint in the United States District Court for the Northern District of California against M.R.G. Concerts Ltd. (MRG) and Matthew Gibbons (Gibbons), asserting claims for breach of contract, breach of the implied covenant of good faith and fair dealing, declaratory judgment, unfair competition, and common counts under California law, arising out of MRG and Gibbons' termination of certain contracts with the Company and their refusal to make various payments to the Company required by those contracts. MRG asserted counterclaims against the Company for breach of one of the contracts in issue, as well as for breach of the implied covenant of good faith and fair dealing, unfair competition, and declaratory judgment. A jury trial commenced on May 16, 2022. On May 23, 2022, the jury issued a verdict in Eventbrite’s favor and awarded the Company $11.0 million in damages. Defendants filed a motion seeking to reduce the verdict or hold a new trial, and the Company filed a motion for pre-judgment and post-judgment interest as well as to recover its attorneys’ fees and costs of suit per the parties’ contracts. On November 1, 2022, the Court denied Defendants' motion, granted the Company’s motion, and entered an Amended Final Judgment in the Company’s favor in the amount of $14.9 million. Defendants’ Opening Brief on appeal was filed April 13, 2023. All briefing is complete and the oral argument is scheduled for December 11, 2023. The Company cannot predict the likelihood of success on Defendants’ appeal or the Company’s conditional cross-appeal. The Company has not recorded any gain in relation to this verdict as of September 30, 2023.

Tax Matters

The Company is currently under audit in certain jurisdictions with regard to indirect tax matters. The Company establishes reserves for indirect tax matters when it determines that the likelihood of a loss is probable, and the loss is reasonably estimable. Accordingly, the Company has established a reserve for the potential settlement of issues related to sales and other indirect taxes in the amount of $4.0 million and $6.0 million as of September 30, 2023 and December 31, 2022, respectively. These amounts, which represent management’s best estimates of its potential liability, include potential interest and penalties of $0.6 million and $0.9 million as of September 30, 2023 and December 31, 2022, respectively.

The Company does not believe that any ultimate liability resulting from any of these matters will have a material adverse effect on its business, consolidated financial position, results of operations or liquidity. However, the outcome of these matters is inherently uncertain. Therefore, if one or more of these matters were resolved against the Company for amounts in excess of management’s expectations, the Company’s financial statements, including in a particular reporting period in which any such outcome becomes probable and estimable, could be materially adversely affected.

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Indemnification

In the ordinary course of business, the Company enters into contractual arrangements under which the Company agrees to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from the Company’s online ticketing platform or the Company’s acts or omissions. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments. In addition, the Company has indemnification agreements with its directors and executive officers that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations vary.

18. Stockholders' Equity

Equity Incentive Plans

In August 2018, the 2018 Stock Option and Incentive Plan (2018 Plan) was adopted by the Board of Directors and approved by the stockholders and became effective in connection with the IPO. The 2018 Plan replaced the 2010 Stock Plan (2010 Plan) as the Board of Directors determined not to make additional awards under the 2010 Plan. The 2010 Plan will continue to govern outstanding equity awards granted thereunder.

The 2018 Plan allows for the granting of options, stock appreciation rights, restricted stock, restricted stock units (RSUs), unrestricted stock awards, performance-based restricted stock units (PSUs), dividend equivalent rights and cash-based awards. Every January 1, the number of shares of stock reserved and available for issuance under the 2018 Plan will cumulatively increase by five percent of the number of shares of Class A and Class B common stock outstanding on the immediately preceding December 31, or a lesser number of shares as approved by the Board of Directors.

As of September 30, 2023, there were 5,625,464 and 6,820,097 options issued and outstanding under the 2010 Plan and 2018 Plan, respectively (collectively, the Plans). As of September 30, 2023, 5,572,087 shares of Class A common stock were available for grant under the 2018 Plan.

Stock options granted typically vest over a four-year period from the date of grant. Options awarded under the Plans are exercisable for up to ten years.

Stock Option Activity

Stock option activity for the nine months ended September 30, 2023 is presented below:

	Outstanding options	Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Balance as of December 31, 2022	12,558,158	$	12.30	6.4	$	93
Granted	787,022	8.30
Exercised	(148,709)	6.26
Canceled	(750,910)	12.80
Balance as of September 30, 2023	12,445,561	12.09		5.6	9,827
Vested and exercisable as of September 30, 2023	10,164,516	12.19		4.9	7,733
Vested and expected to vest as of September 30, 2023	12,324,445	12.10		5.5	9,701

The aggregate intrinsic value in the table above represents the difference between the fair value of Class A common stock and the exercise price of outstanding, in-the-money stock options at September 30, 2023.

As of September 30, 2023, the total unrecognized stock-based compensation expense related to stock options outstanding was $13.1 million, which will be recognized over a weighted-average period of 2.1 years. The weighted-average fair value of stock options granted was $4.98 for the nine months ended September 30, 2023.

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Stock Award Activity

Stock award activity, which includes RSUs, PSUs, and restricted stock awards (RSAs), for the nine months ended September 30, 2023 is presented below:

	Outstanding RSUs, RSAs and PSUs	Weighted-average grant date fair value per share		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Balance as of December 31, 2022	10,764,197	$	11.46	1.7	$	63,059
Awarded	6,475,375	8.33
Released	(1,809,595)	14.43
Canceled	(2,720,984)	10.98
Balance as of September 30, 2023	12,708,993	9.55		1.4	125,311
Vested and expected to vest as of September 30, 2023	11,426,075	9.56		1.3	112,661

As of September 30, 2023, the total unrecognized stock-based compensation expense related to stock awards, was $88.3 million, which will be recognized over a weighted-average period of 2.3 years.

Stock-based Compensation Expense

Stock-based compensation expense recognized in connection with stock options, RSUs, RSAs, PSUs and the Employee Stock Purchase Plan (ESPP) during each of the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of net revenue	$	213	$	179	$	637	$	625
Product development	5,635		5,456		15,143		15,240
Sales, marketing and support	2,018		2,226		7,037		6,065
General and administrative	6,602		5,669		18,344		18,688
Total	$	14,468	$	13,530	$	41,161	$	40,618

The Company capitalized $0.5 million and $1.1 million of stock-based compensation expense related to capitalized software costs during the three and nine months ended September 30, 2023, compared to $0.3 million and $0.5 million during the three and nine months ended September 30, 2022, respectively.

19. Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period. As the Company had net losses for the three and nine months ended September 30, 2023 and 2022, all potentially issuable shares of Class A common stock were determined to be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
Net loss	$	(9,935)	$	(21,124)		$	(25,542)	$	(59,397)
Weighted-average shares used in computing net loss per share, basic and diluted	100,540		98,543			100,030		98,069
Net loss per share, basic and diluted	$	(0.10)	$	(0.21)		$	(0.26)	$	(0.61)

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The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect (in thousands):

	September 30, 2023	September 30, 2022
Shares related to convertible senior notes	19,538	19,538
Stock-options to purchase common stock	12,446	12,643
Restricted stock units	12,610	9,730
ESPP	136	102
Total shares of potentially dilutive securities	44,730	42,013

For the 2025 Notes and 2026 Notes, the conversion spread of 11.9 million shares and 7.6 million shares, respectively, will have a dilutive impact on diluted net income per share of Class A common stock when the average market price of the Company’s Class A common stock for a given period exceeds the conversion price of $12.60 per share for the 2025 Notes and $27.89 per share for the 2026 Notes.

20. Income Taxes

The Company recorded an income tax expense of $0.8 million and $1.8 million for the three and nine months ended September 30, 2023, compared to a benefit of $0.1 million and immaterial benefit for the three and nine months ended September 30, 2022, respectively. The increase was primarily attributable to year-over-year business growth and changes in taxable earnings mix.

The differences in the tax provision for the periods presented and the U.S. federal statutory rate is primarily due to foreign taxes in profitable jurisdictions and the recording of a full valuation allowance on the Company's net deferred tax assets.

The computation of the provision for income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date earnings from recurring operations and adjusting for discrete tax items recorded in the period.

21. Geographic Information

The following table presents the Company's total net revenue by geography based on the currency of the underlying transaction (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
United States	$	59,963	$	49,959		$	175,836	$	141,303
International	21,581		17,513			62,534		48,085
Total net revenue	$	81,544	$	67,472		$	238,370	$	189,388

No individual country included in international net revenue represents more than 10% of the total consolidated net revenue for any of the periods presented.

Substantially all of the Company's long-lived assets are located in the United States.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and with the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (2022 Form 10-K) filed with the United States Securities and Exchange Commission (SEC) on February 28, 2023. In addition to historical condensed consolidated financial information, the following discussion and analysis contains forward-looking statements that are based upon current plans, expectations and beliefs that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Risk Factors” in our 2022 Form 10-K. References herein to "Eventbrite," the "Company," "we," "us" or "our" refer to Eventbrite, Inc. and its subsidiaries, unless the context requires otherwise.

Overview

Our mission is to bring the world together through live experiences. Since inception, we have been at the center of the experience economy, helping to transform the way people organize and attend events.

Eventbrite connects event creators - the people who bring others together to share their passions, artistry and causes through live experiences - with their audiences. Through our highly-scalable self-service platform, we enable event creators to plan, promote and sell tickets to their events. Our consumer-facing experiences enable event seekers to find experiences they love and serve as a demand generating engine for event creators. In 2022, nearly 800,000 creators held over five million free and paid events using Eventbrite, issuing nearly 285 million tickets to consumers on our global marketplace.

Our event creators are entrepreneurs who express their passions and skills through live events. To meet creators’ most pressing needs, we are focused on delivering products that add efficiency to their operations, grow their audience reach and generate demand for their events. We are also investing in an enhanced event discovery experience for consumers. As more creators and consumers view Eventbrite as a trusted place for live events, we believe we can drive more ticket sales and enhance our market position as a leading live events marketplace.

Eventbrite empowers creators of free and paid events. Historically, creators of free events have used our ticketing features for free, and we charged creators of paid events on a per-ticket basis, which could be passed on to the attendee, when an attendee purchased a ticket for an event. Beginning in June 2023, we introduced new pricing plans, creating a new fee type and new subscription packages, to expand access to our comprehensive suite of event marketing tools and complement our existing ticketing fees. We believe this strategic shift supports our aspiration to be the indispensable live events marketplace by helping event creators reach new audiences and sell more tickets with Eventbrite.

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Key Business Metrics and Non-GAAP Financial Measures

We monitor key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to revenue, net loss, and other results under generally accepted accounting principles (GAAP), the following tables set forth key business metrics and non-GAAP financial measures we use to evaluate our business. We believe these metrics and measures are useful to facilitate period-to-period comparisons of our business performance. We believe that the use of Adjusted EBITDA is helpful to our investors as this metric is used by management in assessing the health of our business and our operating performance, making operating decisions, evaluating performance and performing strategic planning and annual budgeting. This measure is not prepared in accordance with GAAP and has limitations as an analytical tool, and you should not consider this in isolation or as substitutes for analysis of our results of operations as reported under GAAP. You are encouraged to evaluate the adjustments and the reasons we consider them appropriate.

Paid Ticket Volume

Our success in serving creators is measured in large part by the number of tickets sold on our platform that generate ticket fees, referred to as paid ticket volume. We consider paid ticket volume an important indicator of the underlying health of the business. The table below sets forth the paid ticket volume for the periods indicated:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
	(in thousands)
Paid ticket volume	22,855	22,028	69,342	61,946

Our paid ticket volume for events outside of the United States represented 40% and 39% of our total paid tickets in the three and nine months ended September 30, 2023, respectively, compared to 40% and 39% in the three and nine months ended September 30, 2022, respectively.

Adjusted EBITDA

We calculate Adjusted EBITDA as net loss adjusted to exclude depreciation and amortization, stock-based compensation expense, interest income, interest expense, loss on debt extinguishment, employer taxes related to employee equity transactions, other income (expense), net, and income tax provision (benefit). Adjusted EBITDA should not be considered as an alternative to net loss or any other measure of financial performance calculated and presented in accordance with GAAP.

The following table presents our Adjusted EBITDA for the periods indicated and a reconciliation of our Adjusted EBITDA to the most comparable GAAP measure, net loss, for each of the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Net loss (1)	$	(9,935)	$	(21,124)	$	(25,542)	$	(59,397)
Add:
Depreciation and amortization	3,226		3,810		9,934		11,059
Stock-based compensation	14,468		13,529		41,161		40,618
Interest income	(7,569)		(1,950)		(19,948)		(2,407)
Interest expense	2,821		2,826		8,359		8,461
Employer taxes related to employee equity transactions	273		167		832		734
Other (income) expense, net	2,357		7,050		3,230		12,225
Income tax provision (benefit)	762		(80)		1,832		(41)
Adjusted EBITDA	$	6,403	$	4,228	$	19,858	$	11,252

(1) Restructuring related costs are included in Net Loss and Adjusted EBITDA. For further information, refer to Note 2 - Restructuring included in Part I, Item 1, "Notes to Unaudited Condensed Consolidated Financial Statements," of this Quarterly Report on Form 10-Q.

Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital spending that occurs off of the income statement or account for future contractual commitments, (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these

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capital expenditures and (iii) Adjusted EBITDA does not reflect the interest and principal required to service our indebtedness. Our Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner as we calculate the measure, limiting its usefulness as a comparative measure. In evaluating Adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. When evaluating our performance, you should consider Adjusted EBITDA alongside other financial performance measures, including our net loss and other GAAP results.

Results of Operations

The following tables set forth our condensed consolidated results of operations data and such data as a percentage of net revenue for the periods presented (in thousands):

Condensed consolidated Statements of Operations	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net revenue	$	81,544	$	67,472	$	238,370	$	189,388
Cost of net revenue	25,867		23,450		76,865		66,465
Gross profit	55,677		44,022		161,505		122,923
Operating expenses:
Product development	23,041		22,249		73,091		63,308
Sales, marketing and support	21,063		14,455		53,802		41,866
General and administrative	23,137		20,596		66,681		58,908
Total operating expenses	67,241		57,300		193,574		164,082
Loss from operations	(11,564)		(13,278)		(32,069)		(41,159)
Interest income	7,569		1,950		19,948		2,407
Interest expense	(2,821)		(2,826)		(8,359)		(8,461)
Other income (expense), net	(2,357)		(7,050)		(3,230)		(12,225)
Loss before income taxes	(9,173)		(21,204)		(23,710)		(59,438)
Income tax provision (benefit)	762		(80)		1,832		(41)
Net loss	$	(9,935)	$	(21,124)	$	(25,542)	$	(59,397)

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Condensed consolidated Statements of Operations, as a percentage of net revenue	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net revenue	100	%	100	%	100	%	100	%
Cost of net revenue	32	%	35	%	32	%	35	%
Gross profit	68	%	65	%	68	%	65	%
Operating expenses:
Product development	28	%	33	%	31	%	33	%
Sales, marketing and support	26	%	21	%	23	%	22	%
General and administrative	28	%	31	%	28	%	31	%
Total operating expenses	82	%	85	%	82	%	86	%
Loss from operations	(14)	%	(20)	%	(14)	%	(21)	%
Interest income	9	%	3	%	8	%	1	%
Interest expense	(3)	%	(4)	%	(4)	%	(4)	%
Other income (expense), net	(3)	%	(10)	%	(1)	%	(6)	%
Loss before income taxes	(11)	%	(31)	%	(11)	%	(30)	%
Income tax provision (benefit)	1	%	—	%	1	%	—	%
Net loss	(12)	%	(31)	%	(12)	%	(30)	%

Net Revenue

We currently generate revenues primarily from service fees and payment processing fees from the sale of paid tickets on our platform. Our ticketing fee structure typically consists of a flat fee and a percentage of the price of each ticket sold by a creator. Revenue is recognized when control of promised goods or services is transferred to the creator, which is when the ticket is sold for service fees and payment processing fees. We also derive a portion of revenues from fees associated with advertising and other marketplace services for creators to publish and promote events. In the second quarter of 2023, we launched new pricing plans and subscription packages, which may include an organizer fee to creators in order to publish an event on the Eventbrite marketplace. Net revenue excludes sales taxes and value-added taxes (VAT) and is presented net of estimated customer refunds, chargebacks and amortization of creator signing fees.

	Three Months Ended September 30,								Nine Months Ended September 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
	(in thousands except percentages)
Net revenue	$	81,544	$	67,472	$	14,072	21	%	$	238,370	$	189,388	$	48,982	26	%

The increase in net revenue during the three and nine months ended September 30, 2023, compared to the three and nine months ended September 30, 2022, was primarily driven by an increase in service fees and payment processing fees attributed to growth in our paid ticket volume, and related pricing increases implemented since January 2023 to reflect enhanced product features.

Additionally, there was a $1.7 million and $3.8 million increase in revenue from advertising services during the three and nine months ended September 30, 2023, respectively, compared to the three and nine months ended September 30, 2022. Revenue also increased due to the launch of organizer fees in June 2023, with further expansion to existing Eventbrite creators continuing throughout the three months ended September 30, 2023.

Cost of Net Revenue

Cost of net revenue consists of variable costs related to payment processing fees and fixed costs related to making our platform generally available. Our fixed costs consist primarily of expenses associated with the operation and maintenance of our platform, including website hosting fees and platform infrastructure costs, amortization of capitalized software development costs, on-site operations costs and customer support costs. Cost of net revenue also includes the amortization expense related to our acquired developed technology assets, which may be incurred in future periods related to future acquisitions.

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Generally, we expect cost of net revenue to fluctuate as a percentage of net revenue in the near- to mid-term primarily driven by the fixed costs absorption relative to total net revenue and our geographical revenue mix. Our payment processing costs for credit and debit card payments are generally lower outside of the United States due to a number of factors, including lower card network fees and lower cost alternative payment networks. Consequently, if we generate more revenue internationally, we expect that our overall payment processing costs will decline as a percentage of total revenue. As our total net revenue increases or decreases and our fixed costs are unaffected, our cost of net revenue as a percentage of net revenue will similarly fluctuate.

	Three Months Ended September 30,										Nine Months Ended September 30,
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
	(in thousands except percentages)
Cost of net revenue	$	25,867		$	23,450		$	2,417	10	%	$	76,865		$	66,465		$	10,400	16	%
Percentage of total net revenue	32		%	35		%					32		%	35		%
Gross margin	68		%	65		%					68		%	65		%

The increase in cost of net revenue during the three and nine months ended September 30, 2023 compared to the three and nine months ended September 30, 2022, was primarily due to an increase in payment processing costs associated with the increase in ticket sales volume.

Additionally, during the nine months ended September 30, 2023 we incurred $1.7 million in restructuring related costs. This consisted of $1.3 million in severance and other employee termination benefits and $0.4 million in lease abandonment and related costs. For information on the costs associated with the restructuring, see Note 2. "Restructuring" in the notes to the unaudited condensed consolidated financial statements.

Our gross margin improved during the three and nine months ended September 30, 2023, compared to the three and nine months ended September 30, 2022, primarily due to better fixed cost absorption as ticket volume and revenue increased.

Operating Expenses

Operating expenses consist of product development, sales, marketing and support and general and administrative expenses. Direct and indirect personnel costs, including stock-based compensation expense, are the most significant recurring component of operating expenses.

As our total net revenue increases or decreases and to the extent our operating expenses are not equally affected, our operating expenses as a percentage of net revenue will similarly fluctuate.

Product development

Product development expenses consist primarily of employee-related costs including salaries, bonuses, benefits, and stock-based compensation, and third-party infrastructure expenses incurred in developing our platform including software subscription costs. Generally, we expect our product development expenses to increase in absolute dollars as we focus on enhancing and expanding the capabilities of our platform. Our product development expenses decreased year-over-year as a percentage of net revenue. We expect our revenue to grow at a faster pace compared to product development expenses as we continue to expand our development staff in lower cost markets.

	Three Months Ended September 30,										Nine Months Ended September 30,
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
	(in thousands except percentages)
Product development	$	23,041		$	22,249		$	792	4	%	$	73,091		$	63,308		$	9,783	15	%
Percentage of total net revenue	28		%	33		%					31		%	33		%

The increase in product development expenses during the three months ended September 30, 2023, compared to the three months ended September 30, 2022, was primarily driven by employee compensation related expenses including stock-based compensation.

The increase in product development expenses during the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, was primarily driven by restructuring related costs of $6.7 million, consisting of $5.4

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million in severance and other employee termination benefits and $1.3 million in lease abandonment costs. For information on the costs associated with the restructuring, see Note 2. "Restructuring" in the notes to the unaudited condensed consolidated financial statements. Additionally, there was an increase in employee compensation related expenses, including stock-based compensation.

Sales, marketing and support

Sales, marketing and support expenses consist primarily of costs associated with our employees involved in selling and marketing our products and in public relations and communication activities, in addition to marketing programs spend. For our sales teams, this also includes commissions. Sales, marketing and support expenses are driven by investments to grow and retain creators and attendees on our platform, and improve the customer experience. Additionally, we classify certain creator-related expenses, such as refunds of the ticket price paid by us on behalf of a creator and reserves for estimated advance payout losses, as sales, marketing and support expenses.

	Three Months Ended September 30,										Nine Months Ended September 30,
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
	(in thousands except percentages)
Sales, marketing and support	$	21,063		$	14,455		$	6,608	46	%	$	53,802		$	41,866		$	11,936	29	%
Percentage of total net revenue	26		%	21		%					23		%	22		%

The increase in sales, marketing and support expenses during the three months ended September 30, 2023, compared to the three months ended September 30, 2022, was primarily driven by a $4.6 million increase in marketing spend associated with our consumer marketing campaigns, search engine marketing, and advertising. Additionally, there was a $1.1 million increase in employee compensation related expenses, including stock-based compensation, due to headcount growth.

The increase in sales, marketing and support expenses during the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, was primarily driven by a $7.0 million increase in marketing spend associated with our consumer marketing campaigns, search engine marketing, and advertising. Additionally, there was a $2.4 million in restructuring related costs, consisting of $1.4 million in severance and other employee termination benefits and $1.0 million in lease abandonment and related costs. For information on the costs associated with the restructuring, see Note 2. "Restructuring" in the notes to the unaudited condensed consolidated financial statements. Additionally, there was an increase in employee compensation related expenses, including stock-based compensation. This was offset by a release to our chargebacks and refunds reserve of $3.0 million for the nine months ended September 30, 2023 due to the continued resolution of our advanced payout exposure.

 General and administrative

General and administrative expenses consist of personnel costs, including stock-based compensation, and professional fees for finance, accounting, legal, risk, human resources and other corporate functions. Our general and administrative expenses also include accruals for sales and business taxes, as well as reserves and impairment charges related to creator upfront payments. Over the long-term, we anticipate general and administrative expenses to decline as a percentage of net revenue as we expect to grow our net revenues and scale our business.

	Three Months Ended September 30,										Nine Months Ended September 30,
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
	(in thousands except percentages)
General and administrative	$	23,137		$	20,596		$	2,541	12	%	$	66,681		$	58,908		$	7,773	13	%
Percentage of total net revenue	28		%	31		%					28		%	31		%

The increase in general and administrative expenses during the three months ended September 30, 2023, compared to the three months ended September 30, 2022, was primarily driven by a $1.7 million increase in employee compensation related expenses, including stock-based compensation.

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The increase in general and administrative expenses during the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, was primarily driven by restructuring related costs of $4.3 million, consisting of $2.8 million in severance and other employee termination benefits and $1.5 million in lease abandonment and related costs. For information on the costs associated with the restructuring, see Note 2. "Restructuring" in the notes to the unaudited condensed consolidated financial statements.

Additional increases were driven primarily by a $2.4 million increase in employee compensation related expenses, including stock-based compensation, and a $1.4 million increase in taxes associated with business growth.

Interest Income

Interest income consists primarily of interest earned on our cash, cash equivalents, marketable securities and amounts held on behalf of customers.

	Three Months Ended September 30,										Nine Months Ended September 30,
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
	(in thousands except percentages)
Interest income	$	7,569		$	1,950		$	5,619	288	%	$	19,948		$	2,407		$	17,541	729	%
Percentage of total net revenue	9		%	3		%					8		%	1		%

The increase of $5.6 million and $17.5 million during the three and nine months ended September 30, 2023, respectively, compared to the three and nine months ended September 30, 2022, was primarily due to due to higher cash and investment balances and higher interest rates.

Interest Expense

In March 2021, we issued the 2026 Notes, which consisted of $212.75 million aggregate principal amount of 0.750% convertible senior notes due 2026. In June 2020, we issued the 2025 Notes, which consisted of $150.0 million aggregate principal amount of 5.000% convertible senior notes due 2025.

Interest expense consists primarily of cash interest expense, amortization of debt discount, and issuance costs on our 2025 Notes and 2026 Notes.

	Three Months Ended September 30,										Nine Months Ended September 30,
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
	(in thousands except percentages)
Interest expense	$	2,821		$	2,826		$	(5)	—	%	$	8,359		$	8,461		$	(102)	(1)	%
Percentage of total net revenue	3		%	4		%					4		%	4		%

Interest expense remained relatively consistent for the three and nine months ended September 30, 2023 compared to the three and nine months ended September 30, 2022.

Other Income (Expense), Net

Other income (expense), net consists primarily of foreign exchange rate remeasurement gains and losses recorded from consolidating our subsidiaries each period-end. The primary driver of our other income (expense), net is fluctuation in the value of the U.S. dollar against the local currencies of our foreign subsidiaries.

	Three Months Ended September 30,										Nine Months Ended September 30,
	2023			2022			$ Change		% Change		2023			2022			$ Change		% Change
	(in thousands except percentages)
Other income (expense), net	$	(2,357)		$	(7,050)		$	(4,693)	(67)	%	$	(3,230)		$	(12,225)		$	(8,995)	(74)	%
Percentage of total net revenue	(3)		%	(10)		%					(1)		%	(6)		%

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The decrease in other expense during the three and nine months ended September 30, 2023, compared to the three and nine months ended September 30, 2022, was driven by foreign currency rate measurement fluctuations. We recognized lower foreign currency rate measurement losses during the three and nine months ended September 30, 2023 compared to the three and nine months ended September 30, 2022.

Income Tax Provision

Income tax provision consists primarily of U.S. federal and state income taxes and income taxes in certain foreign jurisdictions in which we conduct business. The differences in the tax provision for the periods presented and the U.S. federal statutory rate is primarily due to foreign taxes in profitable jurisdictions and the recording of a full valuation allowance on our deferred tax assets in certain jurisdictions including the United States. The computation of the provision for income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date earnings from recurring operations and adjusting for discrete tax items recorded in the period.

	Three Months Ended September 30,									Nine Months Ended September 30,
	2023			2022			$ Change		% Change	2023			2022			$ Change		% Change
	(in thousands except percentages)
Income tax provision (benefit)	$	762		$	(80)		$	842	*	$	1,832		$	(41)		$	1,873	*
Percentage of total net revenue	1		%	—		%				1		%	—		%

* Not meaningful

The increase in provision for income taxes for the three and nine months ended September 30, 2023, compared to the three and nine months ended September 30, 2022, was primarily attributable to our year over year business growth and changes in taxable earnings mix.

Liquidity and Capital Resources

As of September 30, 2023, we had cash and cash equivalents of $567.6 million, short-term investments of $152.4 million and funds receivable of $32.8 million. Our cash and cash equivalents include bank deposits, U.S. Treasury bills, and money market funds held by financial institutions. Our short-term investment portfolio, which consists of U.S. Treasury bills, is designed to preserve principal and provide liquidity. Our funds receivable represents cash-in-transit from credit card processors that is received to our bank accounts within five business days of the underlying ticket transaction. As of September 30, 2023, approximately 20% of our cash was held outside of the United States. We do not expect to incur significant taxes related to these amounts. The cash was held primarily to fund our foreign operations and on behalf of, and to be remitted to, creators. Collectively, our cash and cash equivalents balances represent a mix of cash that belongs to us and cash that is due to creators.

The amounts due to creators, which were $373.8 million as of September 30, 2023, are captioned on our condensed consolidated balance sheets as accounts payable, creators. These ticketing proceeds are legally unrestricted, and beginning in the fourth quarter of 2022 we invested a portion of creator cash in U.S. Treasury bills. For qualified creators, we pass ticket sales proceeds to the creator prior to the event, subject to certain limitations. Internally, we refer to these payments as advance payouts. When we provide advance payouts, we assume risk that the event may be canceled, fraudulent or materially not as described, resulting in significant chargebacks and refund requests. The terms of our standard merchant agreement obligate creators to repay us for ticket sales advanced under such circumstances. If the creator is insolvent, has spent the proceeds of the ticket sales for event-related costs, has canceled the event, or has engaged in fraudulent activity, we may not be able to recover our advance payout losses from these events. Such unrecoverable amounts could equal up to the value of the ticket sales or amounts settled to the creator prior to the event that has been postponed or canceled or is otherwise disputed. We record estimates for losses related to chargebacks and refunds based on various factors, including the amounts paid and outstanding to creators in conjunction with the advance payout program, macroeconomic conditions, and actual chargeback and refund activity trends. Due to the nature of macroeconomic events, including but not limited to shifts in consumer behavior, inflation, increased labor costs, and rising interest rates, there is a high degree of uncertainty around these reserves and our actual losses could be materially different from our current estimates. We will adjust our recorded reserves in the future to reflect our best estimates of future outcomes, and we may pay in cash a portion of, all of, or a greater amount than the $10.0 million provision recorded as of September 30, 2023.

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In June 2020, we issued the 2025 Notes, and in March 2021, we issued the 2026 Notes. The 2025 Notes mature on December 1, 2025 and the 2026 Notes mature on September 15, 2026. Under certain circumstances, holders may surrender their notes of a series for conversion prior to the applicable maturity date. Upon conversion, the notes may be settled in cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock, at our election.

We believe that our existing cash, together with cash generated from operations, will be sufficient to meet our anticipated cash needs for at least the next 12 months. However, our liquidity assumptions may prove to be incorrect, and we could exhaust our available financial resources sooner than we currently expect.

Cash Flows

Our cash flow activities were as follows for the periods presented:

	Nine Months Ended September 30,
	2023		2022
	(in thousands)
Net cash provided by (used in):
Operating activities	$	101,800	$	72,467
Investing activities	(68,516)		(4,684)
Financing activities	(3,990)		(1,585)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(925)		(25,196)
Net increase in cash, cash equivalents and restricted cash	$	28,369	$	41,002

Comparison of Nine Months Ended September 30, 2023 and 2022

Cash Flows from Operating Activities

The net cash provided by operating activities of $101.8 million for the nine months ended September 30, 2023 was primarily due to our net loss of $25.5 million, adjusted for non-cash charges of $62.2 million primarily driven by stock-based compensation expense and changes in our operating assets and liabilities that provided $65.1 million in cash, primarily driven by timing of funds receivable.

The net cash provided by operating activities of $72.5 million for the nine months ended September 30, 2022, was primarily due to our net loss of $59.4 million, adjusted for non-cash charges of $78.9 million primarily driven by stock-based compensation expense and changes to our operating assets and liabilities that provided $53.0 million in cash, primarily driven by timing of accounts payable to creators.

Cash Flows from Investing Activities

Net cash used in investing activities of $68.5 million for the nine months ended September 30, 2023 primarily consisted of $273.7 million in purchases of short-term investments, offset by a $211.0 million increase in maturity of short-term investments.

Net cash used in investing activities of $4.7 million for the nine months ended September 30, 2022 primarily consisted of $2.3 million in capitalized software development costs and a $1.1 million holdback consideration associated with the ToneDen acquisition.

Cash Flows from Financing Activities

Net cash used in financing activities of $4.0 million during the nine months ended September 30, 2023 was primarily due to $5.5 million in taxes paid related to net share settlement of equity awards, offset by $0.9 million in proceeds from the exercise of stock options and $0.6 million in proceeds from issuance of Class A common stock under our Employee Stock Purchase Plan.

Net cash used in financing activities of $1.6 million during the nine months ended September 30, 2022 was primarily due to $5.3 million in taxes paid related to net share settlement of equity awards, offset by $3.0 million in proceeds from the exercise of stock options.

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Effect of exchange rate changes on cash, cash equivalents and restricted cash

The effect of exchange rate changes on cash, cash equivalents, and restricted cash on our consolidated statements of cash flows relates to certain of our assets, primarily cash balances held on behalf of creators that are denominated in currencies other than the functional currency. These cash assets held for creators are directly offset by a corresponding liability to creators. During the nine months ended September 30, 2023 and September 30, 2022 we recorded a $0.9 million and $25.2 million decrease in cash, cash equivalents, and restricted cash, respectively, primarily due to the strengthening of the U.S. dollar. The impact of the effect of exchange rate changes are primarily attributed to creator cash balances, which can serve as a natural hedge for the effect of exchange rates on accounts payable, creators presented within operating activities.

Contractual Obligations and Commitments

Our principal commitments consist of obligations under the 2025 Notes and 2026 Notes (including principal and coupon interest), operating leases for office space, as well as non-cancellable purchase commitments. See Note 17, "Commitments and Contingencies" to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information.

Off-Balance Sheet Arrangements

We do not currently have any off-balance sheet arrangements and did not have any such arrangements as of September 30, 2023.

Critical Accounting Policies and Estimates

Our unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances, and we evaluate our estimates and assumptions on an ongoing basis. We are not aware of any specific event or circumstance that would require an update to our estimates or assumptions or a revision of the carrying value of assets or liabilities as of the date of filing of this Quarterly Report on Form 10-Q. These estimates and assumptions may change in the future, however, as new events occur and additional information is obtained. Our actual results could differ from these estimates.

Our significant accounting policies are discussed in the "Notes to Consolidated Financial Statements, Note 2 "Significant Accounting Policies" in the 2022 Form 10-K. There have been no significant changes to these policies that have had a material impact on our unaudited condensed consolidated financial statements and related notes.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Sensitivity

We are exposed to market risk for changes in interest rates related primarily to balances of our financial instruments including cash and cash equivalents and short-term investments. As of September 30, 2023, we had cash and cash equivalents of $567.6 million and short-term investments of $152.4 million, which consisted primarily of money market funds and U.S. Treasury bills. The primary objective of our investment approach is to preserve capital principal and provide liquidity. Our primary exposure to market risk is interest income sensitivity, which is affected by changes in the general level of interest rates in the United States. A 10% change in the level of market interest rates would not have a material effect on our business, financial conditions or results of operations. In addition, our 2025 Notes and 2026 Notes (collectively referred to as "Notes") are subject to fixed annual interest charges. These Notes therefore are not exposed to financial or economic risk associated with changes in interest rates. However, the fair value of these Notes may fluctuate when interest rates change or can be affected when the market price of our Class A common stock fluctuates. We carry the convertible senior notes at face value less unamortized issuance cost on our balance sheet, and we present the fair value for required disclosure purposes only.

Foreign Currency Risk

Many creators live or operate outside the United States, and therefore, we have significant ticket sales denominated in foreign currencies, most notably the British Pound, Euro, Canadian Dollar and Australian Dollar. Our international revenue, as well as costs and expenses denominated in foreign currencies, expose us to the risk of fluctuations in foreign currency exchange rates against the U.S. dollar. Accordingly, we are subject to foreign currency risk, which may adversely impact our financial results. The functional currency of our international subsidiaries is the U.S. dollar. Movements in foreign exchange rates are recorded in other income (expense), net in our consolidated statements of operations. We have experienced and will continue to experience fluctuations in foreign exchange gains and losses related to changes in exchange rates. If our foreign-currency denominated assets, liabilities, revenues, or expenses increase, our results of operations may be more significantly impacted by fluctuations in the exchange rates of the currencies in which we do business. A 10% increase or decrease in individual currency exchange rates would not have a material impact on our consolidated results of operations.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the principal executive officer and principal financial officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report.

Based on that evaluation, our principal executive officer and principal financial officer concluded that, as of September 30, 2023, our disclosure controls and procedures were effective to provide reasonable assurance that the information required for disclosure in reports filed or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to Company management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures.

Remediation of Previously Reported Material Weakness

As disclosed in our Quarterly Report on Form 10-Q/A for the quarterly period ended June 30, 2022, we previously identified a material weakness in our internal control over financial reporting, related to the lack of an effectively designed control activity over the presentation of unrealized foreign currency transaction gains and losses and effects of exchange rate changes on cash, cash equivalents and restricted cash within the consolidated statements of cash flows. The material weakness resulted in a restatement of the Company’s previously filed consolidated financial statements as of and for each of the quarterly periods ended June 30, 2022 and September 30, 2022 and a revision to the consolidated financial statements as of and for the year ended December 31, 2021, including the quarterly periods therein, as of and for the year ended December 31, 2020 and for the quarterly period ended March 31, 2022. The error had no effect on the consolidated statements of operations or consolidated balance sheet in the aforementioned periods.

Due to the actions taken by the Company to enhance existing controls and procedures, management has concluded that this material weakness has been remediated as of September 30, 2023. The remediation steps to address the material weakness and to improve our internal control over financial reporting included enhanced review procedures of our consolidated statements of cash flows to ensure changes in our business, including foreign currency gains and losses due to increased volatility in foreign exchange rates, are appropriately presented in the statement of cash flows. We concluded that the enhanced control and procedures implemented directly address the risk of misstatement due to changes in our business environment.

Changes in Internal Control Over Financial Reporting

Other than the remediation actions described above, there have been no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during the quarter ended September 30, 2023 which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Disclosure Controls and Procedures

In designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See Note 17, "Commitments and Contingencies" to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

There have been no material changes from the risk factors set forth in Part I, Item 1A, of our 2022 Form 10-K, except for the following risk factors which supplement the risk factors previously disclosed and should be considered in conjunction with the risk factors set forth in the 2022 Form 10-K. You should carefully consider the risks and uncertainties described in the 2022 Form 10-K, together with all of the other information in the Annual Report and this Quarterly Report on Form 10-Q, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our unaudited condensed consolidated financial statements and related notes, and other documents that we file with the U.S. Securities and Exchange Commission. The risks and uncertainties described in the 2022 10-K and this Quarterly Report on Form 10-Q may not be the only ones we face. If any of the risks actually occur, our business, results of operations, financial condition and prospects could be harmed. In that event, the market price of our Class A common stock could decline, and you could lose part or all of your investment.

We are incorporating generative artificial intelligence, or AI, into some of our products. This technology is new and developing and may present operational and reputational risks.

We have incorporated a number of third-party generative AI features into our products. This technology, which is a new and emerging technology that is in its early stages of commercial use, presents a number of risks inherent in its use. AI algorithms are based on machine learning and predictive analytics, which can create accuracy issues, unintended biases and discriminatory outcomes. We have implemented measures, such as in-product disclosures, which inform creators when content is created for them by generative AI and that they are responsible for the accuracy and editorial review of their content. There is a risk that third-party generative AI algorithms could produce inaccurate or misleading content or other discriminatory or unexpected results or behaviors (e.g., AI hallucinatory behavior that can generate irrelevant, nonsensical or factually incorrect results) that could harm our reputation, business or customers. In addition, the use of AI involves significant technical complexity and requires specialized expertise. Any disruption or failure in our AI systems or infrastructure could result in delays or errors in our operations, which could harm our business and financial results.

We pay recoupable advances, non-recoupable payments and/or advance payouts to certain creators. If these arrangements do not perform as we expect or the scheduled events are cancelled, our business, results of operations and financial condition may be harmed.

We pay recoupable advances and/or non-recoupable payments to certain creators when entering into exclusive ticketing or services agreements or when we are otherwise contractually obligated to do so. We also make advance payouts to certain creators. We pay recoupable advances (also referred to as creator advances) and non-recoupable payments (also referred to as creator signing fees) to certain creators in order to incentivize them to organize certain events on our platform or obtain exclusive rights to ticket their events. Non-recoupable payments and recoupable advances (together, upfront payments) involve provision of Eventbrite’s own capital from our operating accounts. In contrast, advanced payouts involve an advance payment to creators of attendees’ funds from our trust accounts prior to the completion of the events to which such attendees purchased tickets.

Upfront payments are common practice in certain segments of the ticketing industry and are typically made to a creator upon entering into or renewing a multi-year exclusive ticketing or services contract with us, or upon meeting annual contractual requirements. A creator who has received a non-recoupable payment keeps the entire upfront payment, so long as the creator complies with the terms of the creator’s contract with us, including but not limited to performance of an event and achievement of certain ticket sale minimums. For recoupable advances we are entitled to recoup the entire advance by withholding all or a portion of the ticket sales sold by the creator to whom the advance was previously paid until we have fully recouped the advance. A creator is generally obligated to repay all or a portion of the upfront payment to us if such creator does not comply with the terms of the contract or perform an event, although there is no guarantee that we will be able to collect such repayment. When we provide advance payouts, we assume risk that the event may be canceled, fraudulent or materially not as described, resulting in significant chargebacks and refund requests. If the creator is insolvent, has spent the proceeds of the ticket sales for event-related costs, has canceled the event, or has engaged in fraudulent activity, we may not be able to recover our losses from these events.

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We are continuing to evaluate our practices on upfront payments, and have started making upfront payments available to qualifying creators who accept our standard or negotiated terms and conditions. We believe that upfront payments are an important financing option for creators, and that failure to make upfront payments available to all creators may put us at a competitive disadvantage to ticketing solutions that offer cash incentives more broadly to newly acquired or renewing creators.

Creator signing fees, net, including noncurrent balances, were $2.3 million and $2.2 million as of September 30, 2023 and September 30, 2022, respectively, and, as of September 30, 2023, these payments were being amortized over a weighted-average remaining life of 2.3 years on a straight-line basis.

Creator advances, net, including noncurrent balances, were $1.7 million and $0.8 million as of September 30, 2023 and September 30, 2022, respectively. We pay these advances based on the expectations of future ticket sales on our platform by such creators. We make the decision to make these payments based on our assessment of the past success of the creator, past event data, future events the creator is producing and other financial information. However, event performance may vary greatly from year-to-year and from event to event. If our assumptions and expectations with respect to event performance prove wrong or if a counterparty defaults or an event is not successful or is canceled, our return on these advances will not be realized and our business, results of operations and financial condition could be harmed.

The pricing and composition of our pricing packages may affect our ability to attract or retain creators.

Our event creators can select from different pricing packages based on the features required, service level desired and budget. We assess the pricing and composition of our pricing packages based on prior experience, feedback from creators and data insights, and we periodically adjust the pricing and composition of our packages. Creators’ price sensitivity may vary by location, and as we seek to expand into different countries, our pricing packages may not enable us to compete effectively in these countries. In June 2023, we introduced a new pricing model which introduces new plans, fee types and subscription packages for event organizers. Our business will depend, in part, on existing creators selecting and renewing subscription plans with us as well as new creators opting into our subscription packages. Further, creators who opt into our subscription programs have no obligation to renew their subscriptions, and it is difficult to accurately predict long-term customer retention. Such changes to our pricing model and package composition, or our inability to effectively or competitively price our packages and solutions, could harm our business, results of operations and financial condition and impact our ability to predict our future performance.

We are subject to risks related to our environmental, social and governance activities and disclosures.

Our strategy on environmental, social and governance activities (Impact strategy) focuses on Eventbrite’s mission to bring the world together through live experiences. We have announced a number of initiatives in our Corporate Responsibility Report which provides metrics on a number of environmental and social factors which we monitor (corporate responsibility metrics) and include some references to such Corporate Responsibility Report in our Proxy Statement for our 2023 Annual Meeting of Stockholders. As a result, our business may face heightened scrutiny for the activities related to the corporate responsibility metrics. Our selected corporate responsibility metrics are reviewed by our senior leadership and key internal stakeholders but do not receive independent third-party assurance. Reasonable assurance sought in connection with a financial statement audit is not provided for the corporate responsibility metrics and therefore the review process for the corporate responsibility metrics may not identify all material statements, omissions or any errors made in reporting the corporate responsibility metrics. As a result, we may not be protected from potential liability under the securities laws for our corporate responsibility metrics and related statements. In addition, for some of the corporate responsibility metrics we report, the methodology of computation and/or the scope of our assessed value chain continues to evolve from year to year. As a result, period over period comparisons may not be meaningful.

The implementation of our Impact strategy requires considerable investments. If we do not demonstrate progress against our Impact strategy or if our Impact strategy is not perceived to be adequate or appropriate, our reputation could be harmed. We could also damage our reputation and the value of our brand if we or our vendors fail to act responsibly in the areas in which we report, or we fail to demonstrate that our commitment to our Impact strategy enhances our overall financial performance.

Further, we purchase carbon removal credits, carbon avoidance credits and energy attribute certificates (EACs) to help balance our carbon and energy footprints. If the cost of carbon removal credits, carbon avoidance credits and EACs were to materially increase or we were required to purchase a significant number of additional credits or EACs, our cost to obtain these offsets and/or credits could increase materially which could impact our ability to meet our internal environmental objectives or our financial performance. Additionally, we could experience complaints related to our purchase of such offsets as they relate to our statements regarding carbon neutrality which we cannot predict or protect against.

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Additionally, there can be no assurance that our current programs, reporting frameworks, or principles will be in compliance with any new environmental and social laws and regulations that may be promulgated in the United States and elsewhere, and the costs of changing any of our current practices to comply with any new legal and regulatory requirements in the United States and elsewhere may be substantial. Furthermore, industry and market practices may further develop to become even more robust than what is required under any new laws and regulations, and we may have to expend significant efforts and resources to keep up with market trends and stay competitive among our peers. For example, California has recently passed a number of bills that may require us to report on certain information related to carbon neutrality claims and use of carbon removal credits and carbon avoidance credits, our direct and indirect greenhouse gas emissions and climate-related financial risks. These and other changes in stakeholder expectations may also lead to increased costs and scrutiny that could heighten all of the risks identified in this risk factor.

Any harm to our reputation resulting from setting these corporate responsibility metrics or our failure or perceived failure to meet such corporate responsibility metrics could impact employee engagement and retention, the willingness of our creators and consumers and our partners and vendors to do business with us, or investors’ willingness to purchase or hold shares of our Class A common stock, any of which could adversely affect our business, results of operations and financial condition.

Our marketing efforts to help grow our business may not be effective.

Maintaining and promoting awareness of our marketplace and services is important to our ability to attract and retain creators and consumers. One of the key parts of our strategy is to build a consumer brand that brings consumers to Eventbrite and create more habitual consumers by positioning ourselves as the destination to help people disrupt their old routine and make life more eventful. We continue to iterate on and invest in our marketing strategy, which may not succeed for a variety of reasons, including our inability to execute and implement our plans.

We have used performance marketing products offered by search engines and social media platforms to distribute paid advertisements that drive traffic to our platform. However, much of our traffic comes through direct or unpaid channels, which include brand marketing and search engine optimization (SEO). Prominently displaying listings in response to key search terms is a critical factor for attracting creators and consumers to our platform. The success of live events and our brand presence have led to increased costs for relevant keywords, including our brand name, due to competitive bidding. We plan to prioritize product-led growth and brand marketing to attract more consumers organically. However, we may not be successful at our efforts to drive cost-effective traffic growth. If we are not able to effectively increase our traffic growth without increases in spend on performance marketing, we may need to increase our performance marketing spend in the future, including in response to increased spend on performance marketing from our competitors, and our business, results of operations, and financial condition could be materially adversely affected.

Additionally, we have started to diversify our investment in brand and performance advertising through various channels, including search engine optimization, search engine marketing, affiliate marketing, display marketing, as well as social media, email marketing and digital video advertising. If we do not produce effective content or purchase effective placement for that content, it could fail to deliver a return on our investment, and damage our brand and/or business. Further, we also engage with celebrities and influencers and partner with aligned brands as part of our marketing efforts, and our perceived affiliation with these individuals and brands could cause us brand or reputational damage in the event they undertake actions inconsistent with our brand and values.

We obtain a significant number of visits via search engines such as Google. Search engines frequently change the algorithms that determine the ranking and display of results of a user’s search, alter analytics or search engine optimization data available to us or make other changes to the way results are displayed, which can negatively affect the placement of links to our platform and reduce the number of visits or otherwise negatively impact our marketing efforts. See the risk factor titled “Changes in Internet search engine algorithms and dynamics, our search engine visibility and rankings, search engine disintermediation, changes in marketplace rules or changes in privacy and consumer data access could have a negative impact on traffic for our sites or functionality of our product and ultimately, our business and results of operations” in our 2022 Form 10-K for additional information.

We also obtain a significant number of visits from social media platforms such as Facebook and Instagram. Search engines, social networks, and other third parties typically require compliance with their policies and procedures, which may be subject to change or new interpretation with limited ability to negotiate, which could negatively impact our marketing capabilities (including marketing services for creators), marketing spend, and revenue. The growing use of online ad-blocking software and technological changes to browsers and mobile operating systems that, for example, limit access to usage information for platforms like Eventbrite, impact the effectiveness of, or our visibility and insights into, our marketing efforts. As a result, we may fail to bring more consumers, or fail to increase frequency of visits to our platform. In addition, ongoing legal and regulatory changes in the data privacy sphere in U.S. states and countries throughout the world – and the

39

interpretation of these laws by major search, social, and operating system providers – may impact the scope and effectiveness of marketing and advertising services generally, including those used on our platforms.

We also obtain a significant number of visits through email marketing. If we are unable to successfully deliver emails to our creators and consumers, if our email subscription tools do not function correctly, or if our creators and consumers do not open our emails, whether by choice, because those emails are marked as low priority or spam, or for other reasons, our business could be adversely affected. As search and social networking, as well as related regulatory regimes, evolve, we must continue to evolve our marketing tactics and technology accordingly and, if we are unable to do so, our business, results of operations and financial condition could be harmed.

Some providers of consumer devices, mobile or desktop operating systems and web browsers have implemented, or have announced plans to implement, ways to block tracking technologies which, if widely adopted, could also result in online tracking methods becoming significantly less effective. Similarly, our vendors, particularly those providing advertising and analytics products and services have, and may continue to, modify their products and services based on legal and technical changes relating to privacy in ways that could reduce the efficiency of our marketing efforts and our access to data about use of our platforms. Any reduction in our ability to make effective use of such technologies could harm our ability to personalize the experience of consumers, increase our costs, and limit our ability to attract and retain creators and consumers on cost-effective terms. As a result, our business and results of operations could be adversely affected.

Enforcement of our community guidelines and platform integrity policies may negatively impact our brand, reputation, and/or our financial performance.

We bring together a diverse and vibrant community of millions of people to create and discover live experiences that fuel their passions. The integrity of our marketplace is of primary importance to our business. We maintain policies that outline expectations for users while they engage with our services, whether as creators, consumers, or third-parties. For example, we prohibit a range of content on our platform, including (but not limited to): sexually explicit content; illegal content or illegal activities; hateful, dangerous or violent content or events; content that contains, endorses, or perpetuates potentially harmful misinformation; and events that sell, distribute or transfer weapons and firearms.

Furthermore, creators use our platform for events that represent a variety of views, activities and interests, some of which many other creators or attendees do not agree with or find offensive, or are illegal or are perceived as such. For example, in the past, creators have used or attempted to use our platform for events related to illegal activity and extremist groups. These events may cause negative publicity and harm our reputation and brand and our financial performance may be impacted. Some creators may not have, or are perceived not to have, legal and ethical business practices.

We seek to enforce these community guidelines and platform integrity policies in order to uphold the safety and integrity of our marketplace, engender trust in the use of our services, and encourage positive connections among members of our communities. We strive to enforce these policies in a consistent and principled manner that is transparent and explicable to stakeholders. However, even with a principled and objective approach, policy enforcement is a combination of human and technological review. As a result, there could be errors, policy enforcement could be subject to different, inconsistent, or conflicting regional consensus or regulatory standards in different jurisdictions, or it could be perceived to be arbitrary, unclear, or inconsistent. Shortcomings and errors in our ability to enforce our policies across our marketplace could lead to negative public perception, distrust from our creators and consumers, or lack of confidence in the use of our services, and could negatively impact our reputation and our brand and our financial performance may be impacted.

In addition, certain creators or consumers may not agree with our decision to restrict certain creators from using our platform, the removal of certain events or the promotion of certain events on our platform. If our platform is associated with illegal or offensive activity or creators and consumers disagree with our decision to restrict certain creators or events, our reputation and brand may be harmed, our ability to attract and retain creators and consumers may be adversely impacted and our financial performance may be impacted.

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Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Unregistered Sales of Equity Securities

There were no sales of unregistered equity securities during the three months ended September 30, 2023.

Issuer Purchases of Equity Securities

There were no issuer purchases of equity securities during the three months ended September 30, 2023.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information

Director and Officer 10b5-1 Trading Plans (10b5-1 Plans)

The following table describes the written trading arrangements under Rule 10b5-1 that were adopted, terminated or modified by our directors or officers during the three months ended September 30, 2023. These plans are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c)(1).

Name and Title	Action	Date of Action	Expiration Date of the 10b5-1 Plan	Maximum Aggregate Number of Securities to be Sold under the 10b5-1 Plan
Vivek Sagi Chief Technology Officer	Adoption	August 10, 2023	August 9, 2024	232,644 1
Charles C Baker Chief Financial Officer	Adoption	September 15, 2023	December 31, 2024	100,000

1 Represents shares subject to outstanding equity awards held by Mr. Sagi. The actual number of shares that may be sold under the 10b5-1 Plan will be net of the number of shares withheld to satisfy tax withholding obligations arising from the settlement of such awards and is not yet determinable.

There were no "non-Rule 10b5-1 trading arrangements," as defined in item 408(c) of Regulation S-K, adopted, terminated or modified by our directors or officers during the three months ended September 30, 2023.

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Item 6. Exhibits

The exhibits listed on the accompanying Exhibit Index are filed or incorporated by reference as part of this Quarterly Report on Form 10-Q.

Exhibit Index

	Description of Exhibits	Incorporated by Reference
Exhibit Number		Form	Exhibit Number	Date Filed
3.2	Amended and Restated Certificate of Incorporation.	S-1/A	3.2	August 28, 2018
3.4	Second Amended and Restated Bylaws.	8-K	3.1	December 21, 2022
4.1	Form of Class A Common Stock Certificate.	S-1/A	4.1	September 7, 2018
31.1	Certification of the Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.			Filed herewith
31.2	Certification of the Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.			Filed herewith
32.1*	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.			Filed herewith
101.INS	Inline XBRL Instance Document			Filed herewith
101.SCH	Inline XBRL Taxonomy Extension Schema Document			Filed herewith
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document			Filed herewith
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document			Filed herewith
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document			Filed herewith
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document			Filed herewith
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)			Filed herewith

# Indicates compensatory plan

*The certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Eventbrite, Inc.
November 1, 2023	By:	/s/ Julia Hartz
		Julia Hartz
		Chief Executive Officer
		(Principal Executive Officer)
November 1, 2023	By:	/s/ Charles Baker
		Charles Baker
		Chief Financial Officer
		(Principal Financial Officer)
November 1, 2023	By:	/s/ Xiaojing Fan
		Xiaojing Fan
		Chief Accounting Officer
		(Principal Accounting Officer)

43

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a),

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Julia Hartz, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Eventbrite, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 1, 2023

/s/ Julia Hartz

Julia Hartz

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a),

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Charles Baker, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Eventbrite, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 1, 2023

/s/ Charles Baker

Charles Baker

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certifications of Chief Executive Officer and Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350), Julia Hartz, Chief Executive Officer of Eventbrite, Inc. (the “Company”), and Charles Baker, Chief Financial Officer of the Company, each hereby certifies that, to the best of his or her knowledge:

1.The Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023, to which this Certification is attached as Exhibit 32.1 (the “Periodic Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and

2. The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 1, 2023

/s/ Julia Hartz

Julia Hartz

Chief Executive Officer

(Principal Executive Officer)

/s/ Charles Baker

Charles Baker

Chief Financial Officer

(Principal Financial Officer)

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Oct. 25, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-38658
Entity Registrant Name	EVENTBRITE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	14-1888467
Entity Address, Address Line One	95 Third Street,
Entity Address, Address Line Two	2nd Floor,
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94103
City Area Code	415
Local Phone Number	692-7779
Title of 12(b) Security	Class A common stock, $0.00001 par value
Trading Symbol	EB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001475115
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		84,960,526
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		15,662,672

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 567,646	$ 539,299
Funds receivable	32,787	43,525
Short-term investments, at amortized cost	152,378	84,224
Accounts receivable, net	2,827	2,266
Creator signing fees, net	913	645
Creator advances, net	1,664	721
Prepaid expenses and other current assets	9,880	12,479
Total current assets	768,095	683,159
Restricted cash	897	875
Creator signing fees, net noncurrent	1,397	1,103
Property and equipment, net	9,422	6,348
Operating lease right-of-use assets	212	5,179
Goodwill	174,388	174,388
Acquired intangible assets, net	15,428	21,907
Other assets	2,119	2,420
Total assets	971,958	895,379
Current liabilities
Accounts payable, creators	373,825	309,313
Accounts payable, trade	1,297	1,032
Chargebacks and refunds reserve	10,004	13,136
Accrued compensation and benefits	15,833	11,635
Accrued taxes	6,686	12,515
Operating lease liabilities	1,538	2,810
Other accrued liabilities	16,258	10,538
Total current liabilities	425,441	360,979
Accrued taxes, noncurrent	7,871	8,820
Operating lease liabilities, noncurrent	2,175	3,345
Long-term debt	357,137	355,580
Other liabilities	0	100
Total liabilities	792,624	728,824
Commitments and contingencies (Note 17)
Stockholders’ equity
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, no shares issued or outstanding as of September 30, 2023 and December 31, 2022	0	0
Common stock, $0.00001 par value; 1,100,000,000 shares authorized; 100,621,010 shares issued and outstanding as of September 30, 2023; 99,169,432 shares issued and outstanding as of December 31, 2022	1	1
Additional paid-in capital	993,830	955,509
Accumulated deficit	(814,497)	(788,955)
Total stockholders’ equity	179,334	166,555
Total liabilities and stockholders’ equity	$ 971,958	$ 895,379

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	1,100,000,000	1,100,000,000
Common stock, shares issued (in shares)	100,621,010	99,169,432
Common stock, shares outstanding (in shares)	100,621,010	99,169,432

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net revenue	$ 81,544	$ 67,472	$ 238,370	$ 189,388
Cost of net revenue	25,867	23,450	76,865	66,465
Gross profit	55,677	44,022	161,505	122,923
Operating expenses
Product development	23,041	22,249	73,091	63,308
Sales, marketing and support	21,063	14,455	53,802	41,866
General and administrative	23,137	20,596	66,681	58,908
Total operating expenses	67,241	57,300	193,574	164,082
Loss from operations	(11,564)	(13,278)	(32,069)	(41,159)
Interest income	7,569	1,950	19,948	2,407
Interest expense	(2,821)	(2,826)	(8,359)	(8,461)
Other income (expense), net	(2,357)	(7,050)	(3,230)	(12,225)
Loss before income taxes	(9,173)	(21,204)	(23,710)	(59,438)
Income tax provision (benefit)	762	(80)	1,832	(41)
Net loss	$ (9,935)	$ (21,124)	$ (25,542)	$ (59,397)
Net loss per share, basic (in dollars per share)	$ (0.10)	$ (0.21)	$ (0.26)	$ (0.61)
Net loss per share, diluted (in dollars per share)	$ (0.10)	$ (0.21)	$ (0.26)	$ (0.61)
Weighted-average number of shares outstanding used to compute net loss per share, basic (in shares)	100,540	98,543	100,030	98,069
Weighted-average number of shares outstanding used to compute net loss per share, diluted (in shares)	100,540	98,543	100,030	98,069

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock Common Stock-Class A	Common Stock Common Stock-Class B	Additional Paid-In Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		79,524,112	17,722,353
Balance at Dec. 31, 2021	$ 169,900	$ 1	$ 0	$ 903,470	$ (733,571)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		207,361
Issuance of common stock upon exercise of stock options	1,464			1,464
Issuance of restricted stock awards (in shares)		2,515
Issuance of common stock for settlement of RSUs (in shares)		341,723
Shares withheld related to net share settlement (in shares)		(117,374)
Shares withheld related to net share settlement	(1,711)			(1,711)
Conversion of common stock from Class B to Class A (in shares)		3,266	(3,266)
Stock-based compensation	12,968			12,968
Net loss	(18,185)				(18,185)
Ending balance (in shares) at Mar. 31, 2022		79,961,603	17,719,087
Balance at Mar. 31, 2022	164,436	$ 1	$ 0	916,191	(751,756)
Beginning balance (in shares) at Dec. 31, 2021		79,524,112	17,722,353
Balance at Dec. 31, 2021	169,900	$ 1	$ 0	903,470	(733,571)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(59,397)
Ending balance (in shares) at Sep. 30, 2022		81,039,222	17,640,167
Balance at Sep. 30, 2022	150,116	$ 1	$ 0	943,083	(792,968)
Beginning balance (in shares) at Mar. 31, 2022		79,961,603	17,719,087
Balance at Mar. 31, 2022	164,436	$ 1	$ 0	916,191	(751,756)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		156,014
Issuance of common stock upon exercise of stock options	1,405			1,405
Issuance of restricted stock awards (in shares)		39,795
Issuance of common stock for settlement of RSUs (in shares)		559,321
Shares withheld related to net share settlement (in shares)		(195,195)
Shares withheld related to net share settlement	(2,084)			(2,084)
Conversion of common stock from Class B to Class A (in shares)		1,218	(1,218)
Issuance of common stock for ESPP purchase (in shares)		79,282
Issuance of common stock for ESPP purchase	790			790
Stock-based compensation	14,356			14,356
Net loss	(20,088)				(20,088)
Ending balance (in shares) at Jun. 30, 2022		80,602,038	17,717,869
Balance at Jun. 30, 2022	158,815	$ 1	$ 0	930,658	(771,844)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		28,708
Issuance of common stock upon exercise of stock options	158			158
Issuance of restricted stock awards (in shares)		7,185
Issuance of common stock for settlement of RSUs (in shares)		506,715
Shares withheld related to net share settlement (in shares)		(183,126)
Shares withheld related to net share settlement	(1,543)			(1,543)
Conversion of common stock from Class B to Class A (in shares)		77,702	(77,702)
Stock-based compensation	13,810			13,810
Net loss	(21,124)				(21,124)
Ending balance (in shares) at Sep. 30, 2022		81,039,222	17,640,167
Balance at Sep. 30, 2022	$ 150,116	$ 1	$ 0	943,083	(792,968)
Beginning balance (in shares) at Dec. 31, 2022	99,169,432	81,529,265	17,640,167
Balance at Dec. 31, 2022	$ 166,555	$ 1	$ 0	955,509	(788,955)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		77,378
Issuance of common stock upon exercise of stock options	463			463
Issuance of restricted stock awards (in shares)		10,375
Issuance of common stock for settlement of RSUs (in shares)		551,060
Shares withheld related to net share settlement (in shares)		(193,445)
Shares withheld related to net share settlement	(1,822)			(1,822)
Stock-based compensation	12,365			12,365
Net loss	(12,686)				(12,686)
Ending balance (in shares) at Mar. 31, 2023		81,974,633	17,640,167
Balance at Mar. 31, 2023	$ 164,875	$ 1	$ 0	966,515	(801,641)
Beginning balance (in shares) at Dec. 31, 2022	99,169,432	81,529,265	17,640,167
Balance at Dec. 31, 2022	$ 166,555	$ 1	$ 0	955,509	(788,955)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	148,709
Net loss	$ (25,542)
Ending balance (in shares) at Sep. 30, 2023	100,621,010	84,958,338	15,662,672
Balance at Sep. 30, 2023	$ 179,334	$ 1	$ 0	993,830	(814,497)
Beginning balance (in shares) at Mar. 31, 2023		81,974,633	17,640,167
Balance at Mar. 31, 2023	164,875	$ 1	$ 0	966,515	(801,641)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		46,035
Issuance of common stock upon exercise of stock options	285			285
Issuance of restricted stock awards (in shares)		1,964
Issuance of common stock for settlement of RSUs (in shares)		609,839
Shares withheld related to net share settlement (in shares)		(199,245)
Shares withheld related to net share settlement	(1,379)			(1,379)
Issuance of common stock for ESPP purchase (in shares)		91,827
Issuance of common stock for ESPP purchase	567			567
Stock-based compensation	14,987			14,987
Net loss	(2,921)				(2,921)
Ending balance (in shares) at Jun. 30, 2023		82,525,053	17,640,167
Balance at Jun. 30, 2023	176,414	$ 1	$ 0	980,975	(804,562)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		25,296
Issuance of common stock upon exercise of stock options	182			182
Issuance of restricted stock awards (in shares)		13,261
Issuance of common stock for settlement of RSUs (in shares)		623,096
Shares withheld related to net share settlement (in shares)		(205,863)
Shares withheld related to net share settlement	(2,285)			(2,285)
Conversion of common stock from Class B to Class A (in shares)		1,977,495	(1,977,495)
Stock-based compensation	14,958			14,958
Net loss	$ (9,935)				(9,935)
Ending balance (in shares) at Sep. 30, 2023	100,621,010	84,958,338	15,662,672
Balance at Sep. 30, 2023	$ 179,334	$ 1	$ 0	$ 993,830	$ (814,497)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net loss	$ (25,542)	$ (59,397)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	9,934	11,059
Stock-based compensation expense	41,161	40,618
Amortization of debt discount and issuance costs	1,557	1,503
Unrealized (gain) loss on foreign currency exchange	(103)	12,644
Accretion on short-term investments	(5,477)	0
Non-cash operating lease expenses	5,088	2,361
Amortization of creator signing fees	742	955
Adjustments related to creator advances, creator signing fees, and allowance for credit losses	(1,671)	(1,792)
Provision for chargebacks and refunds	9,549	10,909
Other	1,464	618
Changes in operating assets and liabilities:
Accounts receivable	(1,181)	(1,728)
Funds receivable	10,917	(9,077)
Creator signing fees and creator advances	44	2,930
Prepaid expenses and other assets	2,900	8,424
Accounts payable, creators	64,711	82,971
Accounts payable	328	(363)
Chargebacks and refunds reserve	(12,681)	(11,907)
Accrued compensation and benefits	4,198	387
Accrued taxes	(7,846)	(6,048)
Operating lease liabilities	(2,563)	(3,260)
Other accrued liabilities	6,271	(9,340)
Net cash provided by operating activities	101,800	72,467
Cash flows from investing activities
Purchase of short-term investments	(273,677)	0
Maturities of short-term investments	211,000	0
Purchases of property and equipment	(991)	(1,254)
Capitalized internal-use software development costs	(4,848)	(2,305)
Cash paid for acquisitions	0	(1,125)
Net cash used in investing activities	(68,516)	(4,684)
Cash flows from financing activities
Proceeds from exercise of stock options	930	3,027
Taxes paid related to net share settlement of equity awards	(5,486)	(5,338)
Proceeds from issuance of common stock under ESPP	567	790
Principal payments on finance lease obligations	(1)	(64)
Net cash used in financing activities	(3,990)	(1,585)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(925)	(25,196)
Net increase in cash, cash equivalents and restricted cash	28,369	41,002
Cash, cash equivalents and restricted cash
Beginning of period	540,174	636,159
End of period	568,543	677,161
Supplemental cash flow data
Interest paid	5,336	5,486
Income taxes paid, net of refunds	517	234
Non-cash investing and financing activities
Reduction of right of use asset due to modification or exit	$ 3,917	$ 2,163

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Overview and Basis of Presentation

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Overview and Basis of Presentation

Overview and Basis of Presentation

Description of Business

Eventbrite, Inc. (Eventbrite or the Company) connects event creators - the people who bring others together to share their passions, artistry and causes through live experiences - with their audiences. Through the Company’s highly-scalable self-service platform, Eventbrite enables event creators to plan, promote and sell tickets to their events. Eventbrite’s consumer-facing experiences enable event seekers to find experiences they love and serve as a demand generating engine for event creators. Eventbrite is focused on delivering products that enable creators to grow their audience reach and generate demand for their events, and is investing in an enhanced event discovery experience for consumers. As more creators and consumers view Eventbrite as a trusted place for live events, the Company believes it can drive more ticket sales and enhance its market position as a leading live events marketplace.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and the applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal and recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations and cash flows for the interim periods. The condensed consolidated balance sheet at December 31, 2022 has been derived from audited consolidated financial statements as of that date. All intercompany transactions and balances have been eliminated. The interim results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any other future annual or interim period.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Form 10-K).

Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements

The Company identified an error within the unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2022 primarily related to cash balances held on behalf of creators that are denominated in currencies other than the functional currency. The effect of exchange rate changes on these cash balances were not disclosed as a separate item in the reconciliation of beginning and ending balances of cash. Additionally, the unrealized foreign currency transaction gains and losses were not disclosed as a reconciliation item in the cash flow from operating activities. The unaudited condensed consolidated financial statements for the nine months ended September 30, 2022 have been amended and restated to correct for such errors. This restatement had no impact on the Company's previously reported consolidated net income, financial position, net change in cash, cash equivalents, and restricted cash, or total cash, cash equivalents, and restricted cash as reported on the Company's consolidated statements of cash flows.

The following table summarizes the impact of the adjustments for the period presented:

	Nine Months Ended September 30, 2022
	As Reported		Adjustments		As Restated
Net cash provided by operating activities	$	47,271	$	25,196	$	72,467
Net cash used in investing activities	(4,684)		—		(4,684)
Net cash used in financing activities	(1,585)		—		(1,585)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—		(25,196)		(25,196)
Change in cash and cash equivalents	$	41,002	$	—	$	41,002

Reclassifications

The Company reclassified interest income to a separate financial statement line item within the consolidated statements of operations from Other income (expense), net. The prior period interest income presentations in the Company's condensed consolidated statements of operations have been changed to conform to the current period presentation. These disaggregated presentations had no impact on previously reported total loss before income taxes.

Significant Accounting Policies

There have been no changes to the Company's significant accounting policies described in the 2022 Form 10-K that have had a material impact on the Company's unaudited condensed consolidated financial statements and related notes.

Use of Estimates

In order to conform with U.S. GAAP, the Company is required to make certain estimates, judgments and assumptions when preparing its consolidated financial statements. These estimates, judgments and assumptions affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods. These estimates include, but are not limited to, the recoverability of creator signing fees and creator advances, chargebacks and refunds reserve, certain assumptions used in the valuation of equity awards, assumptions used in determining the fair value of business combinations, the allowance for credit losses, and indirect tax reserves. The Company evaluates these estimates on an ongoing basis. Actual results could differ from those estimates and such differences could be material to the Company’s consolidated financial statements.

Comprehensive Loss

For all periods presented, comprehensive loss equaled net loss. Therefore, the condensed consolidated statements of comprehensive loss have been omitted from the unaudited condensed consolidated financial statements.

Segment Information

The Company’s Chief Executive Officer (CEO) is the chief operating decision maker. The Company's CEO reviews discrete financial information presented on a consolidated basis for purposes of allocating resources and evaluating the Company’s financial performance. Accordingly, the Company has determined that it operates as a single operating segment and has one reportable segment.

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Restructuring

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

On February 27, 2023, the Board of Directors of the Company approved a restructuring plan (the Plan) that is designed to reduce operating costs, drive efficiencies by consolidating development and support talent into regional hubs, and enable investment for potential long-term growth. The actions associated with the Plan are expected to substantially complete by the end of 2023 and the Company expects to incur total estimated costs of up to $20 million.

The Company primarily incurred employee severance and other termination benefits costs, as well as lease abandonment costs in connection with the Plan. Severance benefits provided to employees were generally recognized on the communication date. Certain severance benefits and retention bonuses are contingent on continued service until the applicable termination date to support the transition of certain roles to different locations, and are recognized ratably over the requisite service period. The Company closed certain offices as part of the Plan and the amortization of the remaining right-of-use assets was accelerated related to the lease abandonment.

The recognition of restructuring related costs requires the Company to make certain judgments and estimates regarding the nature, timing and amount of costs associated with the Plan. To the extent the Company’s actual results differ from its estimates and assumptions, the Company may be required to revise the estimates of future accrued restructuring liabilities. At the end of each reporting period, the Company evaluates the remaining accrued restructuring balances to ensure that the accruals continue to reflect the best estimate in accordance with the execution of the Plan.

The Company incurred costs of $0.8 million in connection with the Plan during the three months ended September 30, 2023, which consisted of costs related to severance and other employee termination benefits.

The Company incurred costs of $15.1 million in connection with the Plan during the nine months ended September 30, 2023, which consisted of $10.8 million in costs related to severance and other employee termination benefits, and $4.3 million primarily related to lease abandonment costs.

A summary of the restructuring related costs by activity type is as follows (in thousands):

	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	Severance and other termination benefits		Lease abandonment and related charges		Total		Severance and other termination benefits		Lease abandonment and related charges		Total
Cost of net revenue	$	237	$	—	$	237	$	1,259	$	426	$	1,685
Product development	140		—		140		5,385		1,346		6,731
Sales, marketing and support	94		—		94		1,406		1,041		2,447
General and administrative	279		4		283		2,778		1,491		4,269
Total	$	750	$	4	$	754	$	10,828	$	4,304	$	15,132

The following table is a summary of the changes in the restructuring related liabilities, included within accrued compensation and benefits and other accrued liabilities on the consolidated balance sheets, associated with the Plan (in thousands):

Balance as of January 1, 2023	$	—
Restructuring related costs accrued	15,132
Cash payment	(8,101)
Non-cash items applied	(4,304)
Balance as of September 30, 2023	$	2,727

The Company expects the remaining liabilities as of September 30, 2023 to be substantially paid out in cash by the end of 2023.

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Revenue Recognition

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The Company derives its revenues from a mix of marketplace activities. Revenue is primarily derived from ticketing fees and payment processing fees. The Company also derives a portion of revenues from organizer fees and advertising services. The Company's customers are event creators who use the Company's platform to sell tickets and market events to attendees. Revenue is recognized when or as control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.

Ticketing Revenue

For ticketing services, the Company's service provides a platform to the event creator and attendee to transact. The Company's performance obligation is to facilitate and process that transaction and issue the ticket, and other than as described below under "Organized Fee Revenue," revenue is recognized by the Company when the ticket is sold. The amount that the Company earns for its services is fixed which typically consists of a flat fee and a percentage based fee per ticket. As a result, the Company records revenue on a net basis related to its ticketing service fees.

For payment processing services, the Company's service provides the event creator with the choice of whether to use Eventbrite Payment Processing (EPP) or to use a third-party payment processor, referred to as Facilitated Payment Processing (FPP).

Under the EPP option, the Company is the merchant of record and is responsible for processing the transaction and collecting the face value of the ticket and all associated fees at the time the ticket is sold. The Company is also responsible for remitting these amounts collected, less the Company's fees, to the event creator. For EPP services, the Company determined that it is the principal in providing the service as the Company is responsible for fulfilling the promise to process the payment and has discretion in establishing the price of its service. As a result, the Company records revenue on a gross basis related to its EPP service fees. Costs incurred for processing the ticketing transactions are included in cost of net revenues in the consolidated statements of operations. Under the FPP option, the Company is not responsible for processing the transaction or collecting the face value of the ticket and associated fees. In this case, the Company records revenue on a net basis related to its FPP service fees.

Revenue is presented net of indirect taxes, customer refunds, payment chargebacks, estimated uncollectible amounts, creator royalties, and amortization of creator signing fees. Previously, the Company offered upfront payments to creators

entering into new or renewed ticketing arrangements. However, the Company is shifting from upfront payment incentives to performance based incentives on a limited basis.

If an event is canceled by a creator, then any obligations to provide refunds to event attendees are the responsibility of that creator. If a creator is unwilling or unable to fulfill their refund obligations, the Company may, at its discretion, provide attendee refunds.

Advertising Revenue

In the third quarter of 2022, the Company introduced advertising services. Advertising services enable creators to promote featured content on the Eventbrite platform or mobile application. The Company considers that it satisfies its performance obligation as it provides the services to customers and recognizes revenue as advertising impressions are displayed to the consumers.

Organizer Fee Revenue

In the second quarter of 2023, the Company expanded access to its comprehensive suite of event marketing tools to all creators and introduced new pricing plans and subscription packages to creators when publishing events on the Eventbrite marketplace. Under the new pricing plans, the Company charges an organizer fee under two plan options.

The Flex plan is charged per event. The Company considers that it satisfies its performance obligation as it provides services to creators to publish their event on the Eventbrite marketplace based on the ticket capacity and recognizes revenue at this point-in-time. The Pro plan is a monthly subscription to publish unlimited events. The Company considers that it satisfies its performance obligation as it provides the subscribed services under the plan and recognizes revenue ratably over the subscription period.

Creator Signing Fees, Net

Creator signing fees, net are incentives that are offered and paid by the Company to secure exclusive ticketing and payment processing rights with certain creators. The benefit the Company receives by securing exclusive ticketing and payment processing rights with certain creators from creator signing fees is inseparable from the customer relationship with the creators and accordingly the amortization of these fees is recorded as a reduction of revenue in the consolidated statements of operations.

As of September 30, 2023, the balance of creator signing fees, net is being amortized over a weighted-average remaining contract life of 2.3 years on a straight-line basis. The following table summarizes the activity in creator signing fees for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance, beginning of period	$	2,569	$	2,538	$	1,748	$	3,409
Creator signing fees paid	—		—		30		5
Amortization of creator signing fees	(275)		(281)		(742)		(955)
Write-offs and other adjustments	16		(75)		1,274		(277)
Balance, end of period	$	2,310	$	2,182	$	2,310	$	2,182

Creator signing fees are classified as follows on the condensed consolidated balance sheet as of the dates indicated (in thousands):

	September 30, 2023		December 31, 2022		September 30, 2022
Creator signing fees, net	$	913	$	645	$	929
Creator signing fees, net noncurrent	1,397		1,103		1,253
Total creator signing fees	$	2,310	$	1,748	$	2,182

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Cash, Cash Equivalents and Restricted Cash

9 Months Ended

Sep. 30, 2023

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid financial instruments, including bank deposits, money market funds and U.S. Treasury securities with an original maturity of three months or less at the date of purchase, to be cash equivalents. Due to the short-term nature of the instruments, the carrying amounts reported in the consolidated balance sheets approximate their fair value.

Cash and cash equivalents balances include the face value of tickets sold on behalf of creators and their share of service charges, which are to be remitted to the creators. Such balances were $344.0 million and $269.4 million as of September 30, 2023 and December 31, 2022, respectively. These ticketing proceeds are legally unrestricted, and the Company invests a portion of ticketing proceeds in U.S. Treasury bills. These amounts due to creators are included in accounts payable, creators on the consolidated balance sheets.

The Company has issued letters of credit relating to contracts entered into with other parties under lease agreements and other agreements which have been collateralized with cash. This cash is classified as noncurrent restricted cash on the consolidated balance sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows (in thousands):

	September 30, 2023		December 31, 2022		September 30, 2022
Cash and cash equivalents	$	567,646	$	539,299	$	675,817
Restricted cash	897		875		1,344
Total cash, cash equivalents and restricted cash	$	568,543	$	540,174	$	677,161

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Short-term Investments

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Short-term Investments

Short-term Investments The Company invests certain of its excess cash in short-term debt instruments which consist of U.S. Treasury bills with original maturities greater than three months and less than one year. All short-term investments are classified as held-to-maturity and are recorded and held at amortized cost. Investments are considered to be impaired when a decline in fair value is deemed to be other-than-temporary. Once a decline in fair value is determined to be other-than-temporary, the carrying value of an instrument is adjusted to its fair value on a non-recurring basis. No such fair value impairment was recognized during the nine months ended September 30, 2023 and year ended December 31, 2022.

The following tables summarize the Company's financial instruments that were measured at fair value on a non-recurring basis (in thousands):

		September 30, 2023
Description	Classification	Amortized cost		Gross unrecognized holding gains		Gross unrecognized holdings losses		Aggregate fair value
Savings deposits	Cash equivalents	$	50,128	$	—	$	—	$	50,128
US Treasury securities	Short-term investments	152,378		4		(14)		152,368
		$	202,506	$	4	$	(14)	$	202,496

		December 31, 2022
Description	Classification	Amortized cost		Gross unrecognized holding gains		Gross unrecognized holdings losses		Aggregate fair value
Savings deposits	Cash equivalents	$	31,288	$	—	$	—	$	31,288
US Treasury securities	Cash equivalents	85,201		17		—		85,218
US Treasury securities	Short-term investments	84,224		10		(5)		84,229
		$	200,713	$	27	$	(5)	$	200,735

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Funds Receivable	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Funds Receivable	Funds ReceivableFunds receivable represents cash-in-transit from third-party payment processors that is received by the Company within approximately five business days from the date of the underlying ticketing transaction. For periods ending on a weekend or a bank holiday, the funds receivable balance will typically be higher than for periods ending on a weekday, as the Company settles payment processing activity on business days. The funds receivable balance includes the face value of tickets sold on behalf of creators and their share of service charges, which amounts are to be remitted to the creators. Such amounts were $29.8 million and $39.9 million as of September 30, 2023 and December 31, 2022, respectively.

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Accounts Receivable, Net

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Accounts Receivable, Net

Accounts Receivable, Net

Accounts receivable, net is comprised of invoiced amounts to customers who use FPP for payment processing as well as other invoiced amounts. In evaluating the Company’s ability to collect outstanding receivable balances, the Company considers various factors including the age of the balance, the creditworthiness of the customer and the customer’s current financial condition. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The following table summarizes the Company’s accounts receivable balance (in thousands):

	September 30, 2023		December 31, 2022
Accounts receivable, customers	$	3,604	$	2,967
Allowance for credit losses	(777)		(701)
Accounts receivable, net	$	2,827	$	2,266

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Creator Signing Fees, Net

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Creator Signing Fees, Net

Revenue Recognition

The Company derives its revenues from a mix of marketplace activities. Revenue is primarily derived from ticketing fees and payment processing fees. The Company also derives a portion of revenues from organizer fees and advertising services. The Company's customers are event creators who use the Company's platform to sell tickets and market events to attendees. Revenue is recognized when or as control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.

Ticketing Revenue

For ticketing services, the Company's service provides a platform to the event creator and attendee to transact. The Company's performance obligation is to facilitate and process that transaction and issue the ticket, and other than as described below under "Organized Fee Revenue," revenue is recognized by the Company when the ticket is sold. The amount that the Company earns for its services is fixed which typically consists of a flat fee and a percentage based fee per ticket. As a result, the Company records revenue on a net basis related to its ticketing service fees.

For payment processing services, the Company's service provides the event creator with the choice of whether to use Eventbrite Payment Processing (EPP) or to use a third-party payment processor, referred to as Facilitated Payment Processing (FPP).

Under the EPP option, the Company is the merchant of record and is responsible for processing the transaction and collecting the face value of the ticket and all associated fees at the time the ticket is sold. The Company is also responsible for remitting these amounts collected, less the Company's fees, to the event creator. For EPP services, the Company determined that it is the principal in providing the service as the Company is responsible for fulfilling the promise to process the payment and has discretion in establishing the price of its service. As a result, the Company records revenue on a gross basis related to its EPP service fees. Costs incurred for processing the ticketing transactions are included in cost of net revenues in the consolidated statements of operations. Under the FPP option, the Company is not responsible for processing the transaction or collecting the face value of the ticket and associated fees. In this case, the Company records revenue on a net basis related to its FPP service fees.

Revenue is presented net of indirect taxes, customer refunds, payment chargebacks, estimated uncollectible amounts, creator royalties, and amortization of creator signing fees. Previously, the Company offered upfront payments to creators

entering into new or renewed ticketing arrangements. However, the Company is shifting from upfront payment incentives to performance based incentives on a limited basis.

If an event is canceled by a creator, then any obligations to provide refunds to event attendees are the responsibility of that creator. If a creator is unwilling or unable to fulfill their refund obligations, the Company may, at its discretion, provide attendee refunds.

Advertising Revenue

In the third quarter of 2022, the Company introduced advertising services. Advertising services enable creators to promote featured content on the Eventbrite platform or mobile application. The Company considers that it satisfies its performance obligation as it provides the services to customers and recognizes revenue as advertising impressions are displayed to the consumers.

Organizer Fee Revenue

In the second quarter of 2023, the Company expanded access to its comprehensive suite of event marketing tools to all creators and introduced new pricing plans and subscription packages to creators when publishing events on the Eventbrite marketplace. Under the new pricing plans, the Company charges an organizer fee under two plan options.

The Flex plan is charged per event. The Company considers that it satisfies its performance obligation as it provides services to creators to publish their event on the Eventbrite marketplace based on the ticket capacity and recognizes revenue at this point-in-time. The Pro plan is a monthly subscription to publish unlimited events. The Company considers that it satisfies its performance obligation as it provides the subscribed services under the plan and recognizes revenue ratably over the subscription period.

Creator Signing Fees, Net

Creator signing fees, net are incentives that are offered and paid by the Company to secure exclusive ticketing and payment processing rights with certain creators. The benefit the Company receives by securing exclusive ticketing and payment processing rights with certain creators from creator signing fees is inseparable from the customer relationship with the creators and accordingly the amortization of these fees is recorded as a reduction of revenue in the consolidated statements of operations.

As of September 30, 2023, the balance of creator signing fees, net is being amortized over a weighted-average remaining contract life of 2.3 years on a straight-line basis. The following table summarizes the activity in creator signing fees for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance, beginning of period	$	2,569	$	2,538	$	1,748	$	3,409
Creator signing fees paid	—		—		30		5
Amortization of creator signing fees	(275)		(281)		(742)		(955)
Write-offs and other adjustments	16		(75)		1,274		(277)
Balance, end of period	$	2,310	$	2,182	$	2,310	$	2,182

Creator signing fees are classified as follows on the condensed consolidated balance sheet as of the dates indicated (in thousands):

	September 30, 2023		December 31, 2022		September 30, 2022
Creator signing fees, net	$	913	$	645	$	929
Creator signing fees, net noncurrent	1,397		1,103		1,253
Total creator signing fees	$	2,310	$	1,748	$	2,182

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Creator Advances, Net

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Creator Advances, Net

Creator Advances, Net

Creator advances are incentives that are offered by the Company which provide the creator with funds in advance of the event. These are subsequently recovered by withholding amounts due to the Company from the sale of tickets for the event until the creator payment has been fully recovered.

The following table summarizes the activity in creator advances for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance, beginning of period	$	695	$	1,150	$	721	$	862
Creator advances paid	722		—		822		335
Creator advances recouped	(110)		(325)		(528)		(2,247)
Write-offs and other adjustments	357		—		649		1,875
Balance, end of period	$	1,664	$	825	$	1,664	$	825

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Accounts Payable, Creators

9 Months Ended

Sep. 30, 2023

Payables and Accruals [Abstract]

Accounts Payable, Creators

Accounts Payable, Creators

Accounts payable, creators consists of unremitted ticket sale proceeds, net of Eventbrite service fees and applicable taxes. Amounts are remitted to creators within five business days subsequent to the completion of the related event. Creators may apply to receive a portion of these proceeds prior to completion of their events.

For qualified creators, the Company passes ticket sales proceeds to the creator prior to the event, subject to certain limitations. Internally, the Company refers to these payments as advance payouts. When an advance payout is made, the Company reduces its cash and cash equivalents with a corresponding decrease to its accounts payable, creators. As of September 30, 2023 and December 31, 2022, advance payouts outstanding was $142.3 million and $193.1 million, respectively.

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Chargebacks and Refunds Reserve

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Chargebacks and Refunds Reserve

Chargebacks and Refunds ReserveThe terms of the Company's standard merchant agreement obligate creators to reimburse attendees who are entitled to refunds. The Company records estimates for refunds and chargebacks of its fees as contra-revenue. When the Company provides advance payouts, it assumes risk that the event may be canceled, fraudulent, or materially not as described, resulting in significant chargebacks and refund requests. See Note 10, “Accounts Payable, Creators”. If the creator is insolvent, has spent the proceeds of the ticket sales for event-related costs, has canceled the event, or has engaged in fraudulent activity, the Company may not be able to recover its losses from these events, and such unrecoverable amounts could equal the value of the transaction or transactions settled to the creator prior to the event that is disputed, plus any associated chargeback fees not assumed by the creator. The Company records reserves for estimated advance payout losses as an operating expense classified

within sales, marketing and support.

Reserves are recorded based on the Company's assessment of various factors, including the amounts paid and outstanding to creators in conjunction with the advance payout program, macroeconomic conditions, and actual chargeback and refund activity trends. The chargebacks and refunds reserve was $10.0 million and $13.1 million which primarily includes reserve balances for estimated advance payout losses of $7.9 million and $11.2 million as of September 30, 2023 and December 31, 2022, respectively.

The Company will adjust reserves in the future to reflect best estimates of future outcomes. The Company cannot predict the outcome of or estimate the possible recovery or range of recovery from these matters. It is possible that the reserve amount will not be sufficient and the Company's actual losses could be materially different from its current estimates.

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Property and Equipment, Net

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and Equipment, Net

Property and equipment, net consisted of the following as of the dates indicated (in thousands):

	September 30, 2023		December 31, 2022
Capitalized internal-use software development costs	$	61,006	$	55,009
Furniture and fixtures	193		869
Computers and computer equipment	3,849		6,854
Leasehold improvements	984		4,243
Finance lease right-of-use assets	—		597
Property and equipment	66,032		67,572
Less: Accumulated depreciation and amortization	(56,610)		(61,224)
Property and equipment, net	$	9,422	$	6,348

The Company recorded the following amounts related to depreciation of fixed assets and capitalized internal-use software development costs during the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Depreciation expense	$	241	$	704	$	962	$	1,475
Amortization of capitalized internal-use software development costs	870		822		2,493		2,657

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Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

Operating Leases

The Company has operating leases primarily for office space. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Right-of-use assets also include adjustments related to prepaid or deferred lease payments and lease incentives. In calculating the present value of the lease payments, the Company utilizes its incremental borrowing rate, as the rates implicit in the leases were not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

As part of the restructuring plan described in Note 2, the Company closed certain offices in April 2023 to reflect the geographic distribution of the Company’s employees and $3.9 million for the amortization of the right-of-use assets was accelerated in the nine months ended September 30, 2023.

The components of operating lease costs were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease costs	$	86	$	798	$	5,088	$	2,361
Sublease income	—		(48)		(104)		(154)
Total operating lease costs, net	$	86	$	750	$	4,984	$	2,207

As of September 30, 2023, the Company's operating leases had a weighted-average remaining lease term of 2.4 years and a weighted-average discount rate of 3.9%.

As of September 30, 2023, maturities of operating lease liabilities were as follows (in thousands):

	Operating Leases
The remainder of 2023	$	433
2024	1,633
2025	1,672
2026 and thereafter	141
Total future operating lease payments	3,879
Less: Imputed interest	(166)
Total operating lease liabilities	$	3,713
Operating lease liabilities, current	$	1,538
Operating lease liabilities, noncurrent	2,175
Total operating lease liabilities	$	3,713

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Goodwill and Acquired Intangible Assets, Net

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets, Net

Goodwill and Acquired Intangible Assets, Net

The carrying amounts of the Company's goodwill was $174.4 million as of September 30, 2023 and December 31, 2022. The Company tests goodwill for impairment at least annually, in the fourth quarter, or whenever events or changes in circumstances would more likely than not reduce the fair value of its single reporting unit below its carrying value. The Company did not record any goodwill impairment during the nine months ended September 30, 2023.

Acquired intangible assets consisted of the following (in thousands):

	September 30, 2023						December 31, 2022
	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
Developed technology	$	22,396	$	(21,471)	$	925	$	22,396	$	(20,854)	$	1,542
Customer relationships	74,884		(60,381)		14,503		74,884		(54,519)		20,365
Tradenames	1,650		(1,650)		—		1,650		(1,650)		—
Acquired intangible assets, net	$	98,930	$	(83,502)	$	15,428	$	98,930	$	(77,023)	$	21,907

The following tables set forth the amortization expense recorded related to acquired intangible assets during the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of net revenue	$	208	$	208	$	617	$	617
Sales, marketing and support	1,906		2,071		5,862		6,291
General and administrative	—		6		—		19
Total amortization of acquired intangible assets	$	2,114	$	2,285	$	6,479	$	6,927

As of September 30, 2023, the total expected future amortization expense of acquired intangible assets by year is as follows (in thousands):

The remainder of 2023	$	2,114
2024	8,300
2025	5,014
Total expected future amortization expense	$	15,428

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Fair Value Measurement

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

The Company measures its financial assets and liabilities at fair value at each reporting date using a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – Other inputs that are directly or indirectly observable in the marketplace.

Level 3 – Unobservable inputs that are supported by little or no market activity.

The Company’s cash equivalents, funds receivable, accounts receivable, accounts payable and other current liabilities approximate their fair value. All of these financial assets and liabilities are Level 1, except for debt. See Note 16, “Debt”, for details regarding the fair value of the Company's convertible senior notes.

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Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

As of September 30, 2023 and December 31, 2022, long-term debt consisted of the following (in thousands):

	September 30, 2023						December 31, 2022
	2026 Notes		2025 Notes		Total		2026 Notes		2025 Notes		Total
Outstanding principal balance	$	212,750	$	150,000	$	362,750	$	212,750	$	150,000	$	362,750
Less: Debt issuance costs	(3,129)		(2,484)		(5,613)		(3,896)		(3,274)		(7,170)
Carrying amount, long-term debt	$	209,621	$	147,516	$	357,137	$	208,854	$	146,726	$	355,580

The following tables set forth the total interest expense recognized related to the term loans and the convertible notes for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cash interest expense	$	2,274	$	2,274	$	6,801	$	6,801
Amortization of debt issuance costs	548		529		1,557		1,504
Total interest expense	$	2,822	$	2,803	$	8,358	$	8,305

The following table summarizes the Company's contractual obligation to settle commitments related to the 2026 Notes and 2025 Notes as of September 30, 2023 (in thousands):

	Payments due by Year
	Total		2023		2024		2025		2026		2027 and thereafter
Convertible Senior Notes Due 2026	$	212,750	$	—	$	—	$	—	$	212,750	$	—
Interest obligations on 2026 Notes (1)	4,788		—		1,596		1,596		1,596		—
Convertible Senior Notes Due 2025	150,000		—		—		150,000		—		—
Interest obligations on 2025 Notes (1)	18,750		3,750		7,500		7,500		—		—

(1) The 2026 Notes and 2025 Notes bear interest at a fixed rate of 0.750% and 5.000% per year, respectively.

Senior Notes

2025 Notes

In June 2020, the Company issued $150.0 million aggregate principal amount of 5.000% convertible senior notes due 2025 (the 2025 Notes), in a private offering to qualified institutional buyers. Interest is payable in cash semi-annually in arrears on June 1 and December 1 of each year. The 2025 Notes mature on December 1, 2025, unless earlier repurchased, redeemed or converted. The total net proceeds from the 2025 Notes, after deducting the debt issuance costs of $5.7 million, was $144.3 million.

Prior to the adoption of Accounting Standards Update (ASU) 2020-06, the Company separated the conversion option of the 2025 Notes from the debt instrument and classified the conversion option in equity. The Company early adopted ASU 2020-06 on January 1, 2021 using the modified retrospective transition method. Adoption of ASU 2020-06 resulted in a decrease to additional paid-in capital of $45.5 million, an increase to retained earnings of $3.1 million, and a net increase to long-term debt of $42.4 million.

The effective interest rate of the 2025 Notes is 5.8%. The Company recorded cash interest of $5.6 million, and amortization of debt issuance costs of $0.8 million during the nine months ended September 30, 2023 and September 30, 2022.

The 2025 Notes are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the 2025 Notes; (iii) effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries.

The terms of the 2025 Notes are governed by an Indenture by and between the Company and Wilmington Trust, National Association, as Trustee (the Indenture). The Company may irrevocably elect a settlement in cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock.

The 2025 Notes are convertible at an initial conversion rate of 79.3903 shares of Class A common stock per $1,000 principal amount of 2025 Notes, which is equal to an initial conversion price of approximately $12.60 per share of Class A common stock. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture. Holders of the 2025 Notes may convert all or a portion of their 2025 Notes only in multiples of $1,000 principal amount, under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price per share of Class A common stock exceeds 130% of the conversion price of the 2025 Notes for each of the at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter;

•during the five consecutive business days immediately after any 10 consecutive trading day period in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of that 10 consecutive trading day period was less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate on such trading day;

•upon the occurrence of certain corporate events or distributions on the Company's Class A common stock, as described in the Indenture;

•if the Company calls the 2025 Notes for redemption; or

•at any time from, and including, June 2, 2025 until the close of business on the second scheduled trading day immediately before the maturity date.

Holders of the 2025 Notes who convert their 2025 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the Indenture) are, under certain circumstances, entitled to an increase in the conversion rate.

No sinking fund is provided for the 2025 Notes. The 2025 Notes are redeemable, in whole or in part, at the Company's option at any time and from time to time, on or after June 1, 2023 and on or before the 40th scheduled trading day immediately prior to the maturity date, at a cash redemption price equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of Class A common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during

the 30 consecutive trading dates ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (2) the trading day immediately before the date the Company sends such notice. Additionally, calling any of the 2025 Notes for redemption will constitute a make-whole fundamental change with respect to that portion of the 2025 Notes, in which case the conversion rate applicable to the conversion of those 2025 Notes will be increased in certain circumstances (as described in the Indenture) if it is converted after it is called for redemption.

If certain corporate events that constitute a “Fundamental Change” (as defined in the Indenture) occur, then, subject to a limited exception for certain cash mergers, note holders may require the Company to repurchase their 2025 Notes at a cash repurchase price equal to the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the Fundamental Change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to the Company’s Class A common stock.

The 2025 Notes have customary provisions relating to the occurrence of “Events of Default” (as defined in the Indenture), which include the following: (i) certain payment defaults on the 2025 Notes; (ii) the Company’s failure to send certain notices under the Indenture within specified periods of time; (iii) the Company’s failure to comply with certain covenants in the Indenture relating to the Company’s ability to consolidate with or merge with or into, or sell, lease or otherwise transfer, in one transaction or a series of transactions, all or substantially all of the assets of the Company and its subsidiaries, taken as a whole, to another person; (iv) a default by the Company in its other obligations or agreements under the Indenture or the 2025 Notes if such default is not cured or waived within 60 days after notice is given in accordance with the Indenture; (v) the rendering of certain judgments against the Company or any of its subsidiaries for the payment of at least $10,000,000, where such judgments are not discharged or stayed within 45 days after the date on which the right to appeal has expired or on which all rights to appeal have been extinguished; (vi) certain defaults by the Company or any of its significant subsidiaries with respect to indebtedness for borrowed money of at least $10,000,000; and (vii) certain events of bankruptcy, insolvency and reorganization involving the Company or any of the Company’s significant subsidiaries.

If an Event of Default involving bankruptcy, insolvency or reorganization events with respect to the Company (and not solely with respect to a significant subsidiary of the Company) occurs, then the principal amount of, and all accrued and unpaid interest on, all of the 2025 Notes then outstanding will immediately become due and payable without any further action or notice by any person. If any other Event of Default occurs and is continuing, then, the Trustee, by notice to the Company, or noteholders of at least 25% of the aggregate principal amount of 2025 Notes then outstanding, by notice to the Company and the Trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the 2025 Notes then outstanding to become due and payable immediately. However, notwithstanding the foregoing, the Company may elect, at its option, that the sole remedy for an Event of Default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture consists exclusively of the right of the noteholders to receive special interest on the 2025 Notes for up to 180 days at a specified rate per annum not exceeding 0.50% on the principal amount of the 2025 Notes.

The fair value of the 2025 Notes, which the Company has classified as a Level 2 instrument, was $167.8 million as of September 30, 2023. The fair value of the 2025 Notes is determined using observable market prices on the last business day of the period.

2026 Notes

In March 2021, the Company issued $212.75 million aggregate principal amount of 0.750% convertible senior notes due 2026 (the 2026 Notes) in a private offering to qualified institutional buyers, inclusive of the initial purchaser's exercise in full of its option to purchase additional notes. The 2026 Notes bear interest at a fixed rate of 0.750% per year. Interest is payable in cash semi-annually in arrears on March 15 and September 15 of each year. The 2026 Notes mature on September 15, 2026 unless earlier repurchased, redeemed or converted. The total net proceeds from the 2026 Notes, after deducting debt issuance costs of $5.7 million, was $207.0 million.

The 2026 Notes are the Company’s senior, unsecured obligations and are (i) equal in right of payment with the Company’s existing and future senior, unsecured indebtedness; (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the 2026 Notes and effectively subordinated to the Company’s existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iii) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company is not a holder thereof) preferred equity, if any, of the Company’s subsidiaries.

Before March 15, 2026, noteholders will have the right to convert their 2026 Notes under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price per share of Class A common stock exceeds 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter;

•during the five consecutive business days immediately after any 10 consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of Class A common stock on such trading day and the conversion rate on such trading day;

•upon the occurrence of certain corporate events or distributions on Class A common stock, as described in the Indenture and

•if the Company call such notes for redemption;

From and after March 15, 2026, noteholders may convert their 2026 Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the 2026 Notes may be settled in cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock, at the Company's election. The Company may irrevocably elect a settlement in cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock.

The 2026 Notes are convertible at an initial conversion rate of 35.8616 shares of Class A common stock per $1,000 principal amount of 2026 Notes, which is equal to an initial conversion price of approximately $27.89 per share of Class A common stock. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.

No sinking fund is provided for the 2026 Notes. The 2026 Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after March 15, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s Class A common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (2) the trading day immediately before the date the Company sends such notice. In addition, calling any 2026 Note for redemption will constitute a Make-Whole Fundamental Change with respect to that Note, in which case the conversion rate applicable to the conversion of that 2026 Note will be increased in certain circumstances if it is converted after it is called for redemption.

If certain corporate events that constitute a “Fundamental Change” (as defined in the Indenture) occur, then, subject to a limited exception for certain cash mergers, noteholders may require the Company to repurchase their 2026 Notes at a cash repurchase price equal to the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid interest, if any. The definition of Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to the Company’s Class A common stock.

The 2026 Notes have customary provisions relating to the occurrence of “Events of Default” (as defined in the Indenture), which include the following: (i) certain payment defaults on the Notes (which, in the case of a default in the payment of interest on the Notes, will be subject to a 30-day cure period); (ii) the Company’s failure to send certain notices under the Indenture within specified periods of time; (iii) the Company’s failure to comply with certain covenants in the Indenture relating to the Company’s ability to consolidate with or merge with or into, or sell, lease or otherwise transfer, in one transaction or a series of transactions, all or substantially all of the assets of the Company and its subsidiaries, taken as a whole, to another person; (iv) a default by the Company in its other obligations or agreements under the Indenture or the Notes if such default is not cured or waived within 60 days after notice is given in accordance with the Indenture; (v) certain defaults by the Company or any of its significant subsidiaries with respect to indebtedness for borrowed money of at least $10,000,000; and (vi) certain events of bankruptcy, insolvency and reorganization involving the Company or any of the Company’s significant subsidiaries.

If an Event of Default involving bankruptcy, insolvency or reorganization events with respect to the Company (and not solely with respect to a significant subsidiary of the Company) occurs, then the principal amount of, and all accrued and unpaid interest on, all of the 2026 Notes then outstanding will immediately become due and payable without any further action or notice by any person. If any other Event of Default occurs and is continuing, then the Trustee, by notice to the Company, or noteholders of at least 25% of the aggregate principal amount of Notes then outstanding, by notice to the Company and the

Trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the 2026 Notes then outstanding to become due and payable immediately. However, notwithstanding the foregoing, the Company may elect, at its option, that the sole remedy for an Event of Default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture consists exclusively of the right of the noteholders to receive special interest on the 2026 Notes for up to 180 days at a specified rate per annum not exceeding 0.50% on the principal amount of the 2026 Notes.

In accounting for the issuance of the 2026 Notes, total issuance costs of $5.7 million related to the 2026 Notes are being amortized to interest expense over the term of the 2026 Notes using the effective interest rate method.

The effective interest rate of the 2026 Notes is 1.3%. The Company recorded cash interest of $1.2 million, and amortization of debt issuance costs of $0.8 million during the nine months ended September 30, 2023 and September 30, 2022.

The fair value of the 2026 Notes, which the Company has classified as a Level 2 instrument, was $176.4 million as of September 30, 2023. The fair value of the 2026 Notes is determined using observable market prices on the last business day of the period.

Capped Call Transactions

In March 2021, in connection with the offering of the 2026 Notes, the Company entered into privately negotiated capped call transactions (2026 Capped Calls) with certain financial institutions (2026 Option Counterparties). The 2026 Capped Calls cover, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the 2026 Notes, the number of shares of Class A common stock initially underlying the 2026 Notes. The 2026 Capped Calls are expected generally to reduce potential dilution to the Class A common stock upon any conversion of 2026 Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of such converted 2026 Notes, as the case may be, with such reduction and/or offset subject to a cap. The cap price of the 2026 Capped Calls will initially be $37.5375 per share of Class A common stock, and is subject to certain customary adjustments under the terms of the 2026 Capped Calls. The 2026 Capped Calls will expire in September 2026, if not exercised earlier.

The 2026 Capped Calls are separate transactions entered into by the Company with each 2026 Option Counterparty, and are not part of the terms of the 2026 Notes and will not affect any noteholder’s rights under the 2026 Notes. Noteholders will not have any rights with respect to the 2026 Capped Calls.

The 2026 Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the company, including merger events, tender offers and announcement events. In addition, the 2026 Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the 2026 Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions.

The 2026 Capped Call Transactions do not meet the criteria for separate accounting as a derivative. The aggregate premium paid for the purchase of the 2026 Capped Calls of $18.5 million was recorded as a reduction to additional paid-in capital on the consolidated balance sheets in March 2021.

In June 2020, in connection with the offering of the 2025 Notes, the Company entered privately negotiated capped call transactions with certain financial institutions (2025 Capped Calls). The 2025 Capped Calls have an initial strike price of approximately $12.60 per share, which corresponds to the initial conversion price of the 2025 Notes. The 2025 Capped Calls cover, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the 2025 Notes, the number of shares of Class A common stock initially underlying the 2025 Notes. The 2025 Capped Calls are expected generally to reduce potential dilution to the Company’s Class A common stock upon any conversion of the 2025 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2025 Notes, as the case may be, with such reduction and/or offset subject to a cap, initially equal to $17.1520, and is subject to certain adjustments under the terms of the 2025 Capped Call transactions. The 2025 Capped Calls will expire in December 2025, if not exercised earlier.

The 2025 Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the company, including merger events, tender offers and announcement events. In addition, the 2025 Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the 2025 Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the 2025 Capped Calls are separate transactions, and not part of the terms of the Notes.

The 2025 Capped Call Transactions do not meet the criteria for separate accounting as a derivative. The aggregate premium paid for the purchase of the 2025 Capped Calls of $15.6 million was recorded as a reduction to additional paid-in capital on the consolidated balance sheets in June 2020.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company's principal commitments consist of obligations under the 2025 Notes and 2026 Notes (including principal and coupon interest), operating leases for office space, as well as non-cancellable purchase commitments. See Note 16, "Debt" for contractual obligations to settle commitments relating to the 2025 Notes, 2026 Notes and Note 13 "Leases" for operating leases for office space.

Other than as described above, there were no material changes outside the Company's normal course of business in its commitments under contractual obligations from those disclosed in the 2022 Form 10-K.

Litigation and Loss Contingencies

In addition to the litigation discussed below, from time to time, the Company may become a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, breach of contract claims, tax and other matters. Future litigation may be necessary to defend the Company or its creators.

The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

The Company accrues estimates for resolution of legal and other contingencies when losses are probable and reasonably estimable. The Company's assessment of losses is re-evaluated each accounting period and is based on all available information, including impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to each case. Nevertheless, it is possible that additional future legal costs including settlements, judgments, legal fees and other related defense costs could have a material adverse effect on the Company’s business, consolidated financial position, results of operations or liquidity.

The matter discussed below summarizes the Company’s current significant ongoing pending litigation.

Commercial Contract Litigation

On June 18, 2020, the Company filed a Complaint in the United States District Court for the Northern District of California against M.R.G. Concerts Ltd. (MRG) and Matthew Gibbons (Gibbons), asserting claims for breach of contract, breach of the implied covenant of good faith and fair dealing, declaratory judgment, unfair competition, and common counts under California law, arising out of MRG and Gibbons' termination of certain contracts with the Company and their refusal to make various payments to the Company required by those contracts. MRG asserted counterclaims against the Company for breach of one of the contracts in issue, as well as for breach of the implied covenant of good faith and fair dealing, unfair competition, and declaratory judgment. A jury trial commenced on May 16, 2022. On May 23, 2022, the jury issued a verdict in Eventbrite’s favor and awarded the Company $11.0 million in damages. Defendants filed a motion seeking to reduce the verdict or hold a new trial, and the Company filed a motion for pre-judgment and post-judgment interest as well as to recover its attorneys’ fees and costs of suit per the parties’ contracts. On November 1, 2022, the Court denied Defendants' motion, granted the Company’s motion, and entered an Amended Final Judgment in the Company’s favor in the amount of $14.9 million. Defendants’ Opening Brief on appeal was filed April 13, 2023. All briefing is complete and the oral argument is scheduled for December 11, 2023. The Company cannot predict the likelihood of success on Defendants’ appeal or the Company’s conditional cross-appeal. The Company has not recorded any gain in relation to this verdict as of September 30, 2023.

Tax Matters

The Company is currently under audit in certain jurisdictions with regard to indirect tax matters. The Company establishes reserves for indirect tax matters when it determines that the likelihood of a loss is probable, and the loss is reasonably estimable. Accordingly, the Company has established a reserve for the potential settlement of issues related to sales and other indirect taxes in the amount of $4.0 million and $6.0 million as of September 30, 2023 and December 31, 2022, respectively. These amounts, which represent management’s best estimates of its potential liability, include potential interest and penalties of $0.6 million and $0.9 million as of September 30, 2023 and December 31, 2022, respectively.

The Company does not believe that any ultimate liability resulting from any of these matters will have a material adverse effect on its business, consolidated financial position, results of operations or liquidity. However, the outcome of these matters is inherently uncertain. Therefore, if one or more of these matters were resolved against the Company for amounts in excess of management’s expectations, the Company’s financial statements, including in a particular reporting period in which any such outcome becomes probable and estimable, could be materially adversely affected.

Indemnification In the ordinary course of business, the Company enters into contractual arrangements under which the Company agrees to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from the Company’s online ticketing platform or the Company’s acts or omissions. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments. In addition, the Company has indemnification agreements with its directors and executive officers that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations vary.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

Equity Incentive Plans

In August 2018, the 2018 Stock Option and Incentive Plan (2018 Plan) was adopted by the Board of Directors and approved by the stockholders and became effective in connection with the IPO. The 2018 Plan replaced the 2010 Stock Plan (2010 Plan) as the Board of Directors determined not to make additional awards under the 2010 Plan. The 2010 Plan will continue to govern outstanding equity awards granted thereunder.

The 2018 Plan allows for the granting of options, stock appreciation rights, restricted stock, restricted stock units (RSUs), unrestricted stock awards, performance-based restricted stock units (PSUs), dividend equivalent rights and cash-based awards. Every January 1, the number of shares of stock reserved and available for issuance under the 2018 Plan will cumulatively increase by five percent of the number of shares of Class A and Class B common stock outstanding on the immediately preceding December 31, or a lesser number of shares as approved by the Board of Directors.

As of September 30, 2023, there were 5,625,464 and 6,820,097 options issued and outstanding under the 2010 Plan and 2018 Plan, respectively (collectively, the Plans). As of September 30, 2023, 5,572,087 shares of Class A common stock were available for grant under the 2018 Plan.

Stock options granted typically vest over a four-year period from the date of grant. Options awarded under the Plans are exercisable for up to ten years.

Stock Option Activity

Stock option activity for the nine months ended September 30, 2023 is presented below:

	Outstanding options	Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Balance as of December 31, 2022	12,558,158	$	12.30	6.4	$	93
Granted	787,022	8.30
Exercised	(148,709)	6.26
Canceled	(750,910)	12.80
Balance as of September 30, 2023	12,445,561	12.09		5.6	9,827
Vested and exercisable as of September 30, 2023	10,164,516	12.19		4.9	7,733
Vested and expected to vest as of September 30, 2023	12,324,445	12.10		5.5	9,701

The aggregate intrinsic value in the table above represents the difference between the fair value of Class A common stock and the exercise price of outstanding, in-the-money stock options at September 30, 2023.

As of September 30, 2023, the total unrecognized stock-based compensation expense related to stock options outstanding was $13.1 million, which will be recognized over a weighted-average period of 2.1 years. The weighted-average fair value of stock options granted was $4.98 for the nine months ended September 30, 2023.

Stock Award Activity

Stock award activity, which includes RSUs, PSUs, and restricted stock awards (RSAs), for the nine months ended September 30, 2023 is presented below:

	Outstanding RSUs, RSAs and PSUs	Weighted-average grant date fair value per share		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Balance as of December 31, 2022	10,764,197	$	11.46	1.7	$	63,059
Awarded	6,475,375	8.33
Released	(1,809,595)	14.43
Canceled	(2,720,984)	10.98
Balance as of September 30, 2023	12,708,993	9.55		1.4	125,311
Vested and expected to vest as of September 30, 2023	11,426,075	9.56		1.3	112,661

As of September 30, 2023, the total unrecognized stock-based compensation expense related to stock awards, was $88.3 million, which will be recognized over a weighted-average period of 2.3 years.

Stock-based Compensation Expense

Stock-based compensation expense recognized in connection with stock options, RSUs, RSAs, PSUs and the Employee Stock Purchase Plan (ESPP) during each of the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of net revenue	$	213	$	179	$	637	$	625
Product development	5,635		5,456		15,143		15,240
Sales, marketing and support	2,018		2,226		7,037		6,065
General and administrative	6,602		5,669		18,344		18,688
Total	$	14,468	$	13,530	$	41,161	$	40,618

The Company capitalized $0.5 million and $1.1 million of stock-based compensation expense related to capitalized software costs during the three and nine months ended September 30, 2023, compared to $0.3 million and $0.5 million during the three and nine months ended September 30, 2022, respectively.

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Net Loss Per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period. As the Company had net losses for the three and nine months ended September 30, 2023 and 2022, all potentially issuable shares of Class A common stock were determined to be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
Net loss	$	(9,935)	$	(21,124)		$	(25,542)	$	(59,397)
Weighted-average shares used in computing net loss per share, basic and diluted	100,540		98,543			100,030		98,069
Net loss per share, basic and diluted	$	(0.10)	$	(0.21)		$	(0.26)	$	(0.61)

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect (in thousands):

	September 30, 2023	September 30, 2022
Shares related to convertible senior notes	19,538	19,538
Stock-options to purchase common stock	12,446	12,643
Restricted stock units	12,610	9,730
ESPP	136	102
Total shares of potentially dilutive securities	44,730	42,013

For the 2025 Notes and 2026 Notes, the conversion spread of 11.9 million shares and 7.6 million shares, respectively, will have a dilutive impact on diluted net income per share of Class A common stock when the average market price of the Company’s Class A common stock for a given period exceeds the conversion price of $12.60 per share for the 2025 Notes and $27.89 per share for the 2026 Notes.

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Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recorded an income tax expense of $0.8 million and $1.8 million for the three and nine months ended September 30, 2023, compared to a benefit of $0.1 million and immaterial benefit for the three and nine months ended September 30, 2022, respectively. The increase was primarily attributable to year-over-year business growth and changes in taxable earnings mix.

The differences in the tax provision for the periods presented and the U.S. federal statutory rate is primarily due to foreign taxes in profitable jurisdictions and the recording of a full valuation allowance on the Company's net deferred tax assets.

The computation of the provision for income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date earnings from recurring operations and adjusting for discrete tax items recorded in the period.

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Geographic Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Geographic Information

Geographic Information

The following table presents the Company's total net revenue by geography based on the currency of the underlying transaction (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
United States	$	59,963	$	49,959		$	175,836	$	141,303
International	21,581		17,513			62,534		48,085
Total net revenue	$	81,544	$	67,472		$	238,370	$	189,388

No individual country included in international net revenue represents more than 10% of the total consolidated net revenue for any of the periods presented.

Substantially all of the Company's long-lived assets are located in the United States.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (9,935)	$ (2,921)	$ (12,686)	$ (21,124)	$ (20,088)	$ (18,185)	$ (25,542)	$ (59,397)

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Insider Trading Arrangements

3 Months Ended

9 Months Ended

Sep. 30, 2023

shares

Sep. 30, 2023

shares

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

The following table describes the written trading arrangements under Rule 10b5-1 that were adopted, terminated or modified by our directors or officers during the three months ended September 30, 2023. These plans are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c)(1).

Name and Title	Action	Date of Action	Expiration Date of the 10b5-1 Plan	Maximum Aggregate Number of Securities to be Sold under the 10b5-1 Plan
Vivek Sagi Chief Technology Officer	Adoption	August 10, 2023	August 9, 2024	232,644 1
Charles C Baker Chief Financial Officer	Adoption	September 15, 2023	December 31, 2024	100,000

1 Represents shares subject to outstanding equity awards held by Mr. Sagi. The actual number of shares that may be sold under the 10b5-1 Plan will be net of the number of shares withheld to satisfy tax withholding obligations arising from the settlement of such awards and is not yet determinable.

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Vivek Sagi [Member]

Trading Arrangements, by Individual

Name

Vivek Sagi

Title

Chief Technology Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

August 10, 2023

Arrangement Duration

365 days

Aggregate Available

232,644

232,644

Charles C Baker [Member]

Trading Arrangements, by Individual

Name

Charles C Baker

Title

Chief Financial Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

September 15, 2023

Arrangement Duration

473 days

Aggregate Available

100,000

100,000

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Overview and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and the applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal and recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations and cash flows for the interim periods. The condensed consolidated balance sheet at December 31, 2022 has been derived from audited consolidated financial statements as of that date. All intercompany transactions and balances have been eliminated. The interim results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any other future annual or interim period.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Form 10-K).

Reclassifications

The Company reclassified interest income to a separate financial statement line item within the consolidated statements of operations from Other income (expense), net. The prior period interest income presentations in the Company's condensed consolidated statements of operations have been changed to conform to the current period presentation. These disaggregated presentations had no impact on previously reported total loss before income taxes.

Use of Estimates

In order to conform with U.S. GAAP, the Company is required to make certain estimates, judgments and assumptions when preparing its consolidated financial statements. These estimates, judgments and assumptions affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods. These estimates include, but are not limited to, the recoverability of creator signing fees and creator advances, chargebacks and refunds reserve, certain assumptions used in the valuation of equity awards, assumptions used in determining the fair value of business combinations, the allowance for credit losses, and indirect tax reserves. The Company evaluates these estimates on an ongoing basis. Actual results could differ from those estimates and such differences could be material to the Company’s consolidated financial statements.

Comprehensive Loss

For all periods presented, comprehensive loss equaled net loss. Therefore, the condensed consolidated statements of comprehensive loss have been omitted from the unaudited condensed consolidated financial statements.

Segment Information

The Company’s Chief Executive Officer (CEO) is the chief operating decision maker. The Company's CEO reviews discrete financial information presented on a consolidated basis for purposes of allocating resources and evaluating the Company’s financial performance. Accordingly, the Company has determined that it operates as a single operating segment and has one reportable segment

Revenue Recognition

The Company derives its revenues from a mix of marketplace activities. Revenue is primarily derived from ticketing fees and payment processing fees. The Company also derives a portion of revenues from organizer fees and advertising services. The Company's customers are event creators who use the Company's platform to sell tickets and market events to attendees. Revenue is recognized when or as control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.

Ticketing Revenue

For ticketing services, the Company's service provides a platform to the event creator and attendee to transact. The Company's performance obligation is to facilitate and process that transaction and issue the ticket, and other than as described below under "Organized Fee Revenue," revenue is recognized by the Company when the ticket is sold. The amount that the Company earns for its services is fixed which typically consists of a flat fee and a percentage based fee per ticket. As a result, the Company records revenue on a net basis related to its ticketing service fees.

For payment processing services, the Company's service provides the event creator with the choice of whether to use Eventbrite Payment Processing (EPP) or to use a third-party payment processor, referred to as Facilitated Payment Processing (FPP).

Under the EPP option, the Company is the merchant of record and is responsible for processing the transaction and collecting the face value of the ticket and all associated fees at the time the ticket is sold. The Company is also responsible for remitting these amounts collected, less the Company's fees, to the event creator. For EPP services, the Company determined that it is the principal in providing the service as the Company is responsible for fulfilling the promise to process the payment and has discretion in establishing the price of its service. As a result, the Company records revenue on a gross basis related to its EPP service fees. Costs incurred for processing the ticketing transactions are included in cost of net revenues in the consolidated statements of operations. Under the FPP option, the Company is not responsible for processing the transaction or collecting the face value of the ticket and associated fees. In this case, the Company records revenue on a net basis related to its FPP service fees.

Revenue is presented net of indirect taxes, customer refunds, payment chargebacks, estimated uncollectible amounts, creator royalties, and amortization of creator signing fees. Previously, the Company offered upfront payments to creators

entering into new or renewed ticketing arrangements. However, the Company is shifting from upfront payment incentives to performance based incentives on a limited basis.

If an event is canceled by a creator, then any obligations to provide refunds to event attendees are the responsibility of that creator. If a creator is unwilling or unable to fulfill their refund obligations, the Company may, at its discretion, provide attendee refunds.

Advertising Revenue

In the third quarter of 2022, the Company introduced advertising services. Advertising services enable creators to promote featured content on the Eventbrite platform or mobile application. The Company considers that it satisfies its performance obligation as it provides the services to customers and recognizes revenue as advertising impressions are displayed to the consumers.

Organizer Fee Revenue

In the second quarter of 2023, the Company expanded access to its comprehensive suite of event marketing tools to all creators and introduced new pricing plans and subscription packages to creators when publishing events on the Eventbrite marketplace. Under the new pricing plans, the Company charges an organizer fee under two plan options.

The Flex plan is charged per event. The Company considers that it satisfies its performance obligation as it provides services to creators to publish their event on the Eventbrite marketplace based on the ticket capacity and recognizes revenue at this point-in-time. The Pro plan is a monthly subscription to publish unlimited events. The Company considers that it satisfies its performance obligation as it provides the subscribed services under the plan and recognizes revenue ratably over the subscription period.

Fair Value Measurement

The Company measures its financial assets and liabilities at fair value at each reporting date using a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – Other inputs that are directly or indirectly observable in the marketplace.

Level 3 – Unobservable inputs that are supported by little or no market activity.

The Company’s cash equivalents, funds receivable, accounts receivable, accounts payable and other current liabilities approximate their fair value. All of these financial assets and liabilities are Level 1, except for debt. See Note 16, “Debt”, for details regarding the fair value of the Company's convertible senior notes.

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Overview and Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following table summarizes the impact of the adjustments for the period presented:

	Nine Months Ended September 30, 2022
	As Reported		Adjustments		As Restated
Net cash provided by operating activities	$	47,271	$	25,196	$	72,467
Net cash used in investing activities	(4,684)		—		(4,684)
Net cash used in financing activities	(1,585)		—		(1,585)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—		(25,196)		(25,196)
Change in cash and cash equivalents	$	41,002	$	—	$	41,002

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Restructuring (Tables)

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Summary of Restructuring and Other Charges

A summary of the restructuring related costs by activity type is as follows (in thousands):

	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	Severance and other termination benefits		Lease abandonment and related charges		Total		Severance and other termination benefits		Lease abandonment and related charges		Total
Cost of net revenue	$	237	$	—	$	237	$	1,259	$	426	$	1,685
Product development	140		—		140		5,385		1,346		6,731
Sales, marketing and support	94		—		94		1,406		1,041		2,447
General and administrative	279		4		283		2,778		1,491		4,269
Total	$	750	$	4	$	754	$	10,828	$	4,304	$	15,132

The following table is a summary of the changes in the restructuring related liabilities, included within accrued compensation and benefits and other accrued liabilities on the consolidated balance sheets, associated with the Plan (in thousands):

Balance as of January 1, 2023	$	—
Restructuring related costs accrued	15,132
Cash payment	(8,101)
Non-cash items applied	(4,304)
Balance as of September 30, 2023	$	2,727

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Cash, Cash Equivalents and Restricted Cash (Tables)

9 Months Ended

Sep. 30, 2023

Cash and Cash Equivalents [Abstract]

Summary of Reconciliation of Cash and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows (in thousands):

	September 30, 2023		December 31, 2022		September 30, 2022
Cash and cash equivalents	$	567,646	$	539,299	$	675,817
Restricted cash	897		875		1,344
Total cash, cash equivalents and restricted cash	$	568,543	$	540,174	$	677,161

Summary of Reconciliation of Cash and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows (in thousands):

	September 30, 2023		December 31, 2022		September 30, 2022
Cash and cash equivalents	$	567,646	$	539,299	$	675,817
Restricted cash	897		875		1,344
Total cash, cash equivalents and restricted cash	$	568,543	$	540,174	$	677,161

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Short-term Investments (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities, Held-to-Maturity

The following tables summarize the Company's financial instruments that were measured at fair value on a non-recurring basis (in thousands):

		September 30, 2023
Description	Classification	Amortized cost		Gross unrecognized holding gains		Gross unrecognized holdings losses		Aggregate fair value
Savings deposits	Cash equivalents	$	50,128	$	—	$	—	$	50,128
US Treasury securities	Short-term investments	152,378		4		(14)		152,368
		$	202,506	$	4	$	(14)	$	202,496

		December 31, 2022
Description	Classification	Amortized cost		Gross unrecognized holding gains		Gross unrecognized holdings losses		Aggregate fair value
Savings deposits	Cash equivalents	$	31,288	$	—	$	—	$	31,288
US Treasury securities	Cash equivalents	85,201		17		—		85,218
US Treasury securities	Short-term investments	84,224		10		(5)		84,229
		$	200,713	$	27	$	(5)	$	200,735

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Accounts Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Summary of Accounts Receivable

The following table summarizes the Company’s accounts receivable balance (in thousands):

	September 30, 2023		December 31, 2022
Accounts receivable, customers	$	3,604	$	2,967
Allowance for credit losses	(777)		(701)
Accounts receivable, net	$	2,827	$	2,266

The following table summarizes the activity in creator advances for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance, beginning of period	$	695	$	1,150	$	721	$	862
Creator advances paid	722		—		822		335
Creator advances recouped	(110)		(325)		(528)		(2,247)
Write-offs and other adjustments	357		—		649		1,875
Balance, end of period	$	1,664	$	825	$	1,664	$	825

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Creator Signing Fees, Net (Tables)

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Summary of the Activity in Creator Signing Fees and the Classification of Creator Signing Fees on the Condensed Consolidated Balance Sheet

The following table summarizes the activity in creator signing fees for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance, beginning of period	$	2,569	$	2,538	$	1,748	$	3,409
Creator signing fees paid	—		—		30		5
Amortization of creator signing fees	(275)		(281)		(742)		(955)
Write-offs and other adjustments	16		(75)		1,274		(277)
Balance, end of period	$	2,310	$	2,182	$	2,310	$	2,182

Creator signing fees are classified as follows on the condensed consolidated balance sheet as of the dates indicated (in thousands):

	September 30, 2023		December 31, 2022		September 30, 2022
Creator signing fees, net	$	913	$	645	$	929
Creator signing fees, net noncurrent	1,397		1,103		1,253
Total creator signing fees	$	2,310	$	1,748	$	2,182

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Creator Advances, Net (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Summary of Activity in Creator Advances and the Classification of Creator Advances on the Condensed Consolidated Balance Sheet

The following table summarizes the Company’s accounts receivable balance (in thousands):

	September 30, 2023		December 31, 2022
Accounts receivable, customers	$	3,604	$	2,967
Allowance for credit losses	(777)		(701)
Accounts receivable, net	$	2,827	$	2,266

The following table summarizes the activity in creator advances for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Balance, beginning of period	$	695	$	1,150	$	721	$	862
Creator advances paid	722		—		822		335
Creator advances recouped	(110)		(325)		(528)		(2,247)
Write-offs and other adjustments	357		—		649		1,875
Balance, end of period	$	1,664	$	825	$	1,664	$	825

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Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Summary of Composition of Property and Equipment, Net

Property and equipment, net consisted of the following as of the dates indicated (in thousands):

	September 30, 2023		December 31, 2022
Capitalized internal-use software development costs	$	61,006	$	55,009
Furniture and fixtures	193		869
Computers and computer equipment	3,849		6,854
Leasehold improvements	984		4,243
Finance lease right-of-use assets	—		597
Property and equipment	66,032		67,572
Less: Accumulated depreciation and amortization	(56,610)		(61,224)
Property and equipment, net	$	9,422	$	6,348

Summary of Capitalized Internal-Use Software Development Costs

The Company recorded the following amounts related to depreciation of fixed assets and capitalized internal-use software development costs during the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Depreciation expense	$	241	$	704	$	962	$	1,475
Amortization of capitalized internal-use software development costs	870		822		2,493		2,657

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Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Summary of Components of Operating Lease Cost

The components of operating lease costs were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Operating lease costs	$	86	$	798	$	5,088	$	2,361
Sublease income	—		(48)		(104)		(154)
Total operating lease costs, net	$	86	$	750	$	4,984	$	2,207

Summary of Maturities of Operating Lease Liabilities

As of September 30, 2023, maturities of operating lease liabilities were as follows (in thousands):

	Operating Leases
The remainder of 2023	$	433
2024	1,633
2025	1,672
2026 and thereafter	141
Total future operating lease payments	3,879
Less: Imputed interest	(166)
Total operating lease liabilities	$	3,713
Operating lease liabilities, current	$	1,538
Operating lease liabilities, noncurrent	2,175
Total operating lease liabilities	$	3,713

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Goodwill and Acquired Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Acquired Intangible Assets

Acquired intangible assets consisted of the following (in thousands):

	September 30, 2023						December 31, 2022
	Cost		Accumulated Amortization		Net Book Value		Cost		Accumulated Amortization		Net Book Value
Developed technology	$	22,396	$	(21,471)	$	925	$	22,396	$	(20,854)	$	1,542
Customer relationships	74,884		(60,381)		14,503		74,884		(54,519)		20,365
Tradenames	1,650		(1,650)		—		1,650		(1,650)		—
Acquired intangible assets, net	$	98,930	$	(83,502)	$	15,428	$	98,930	$	(77,023)	$	21,907

Summary of Amortization Expense Related to Acquired Intangible Assets

The following tables set forth the amortization expense recorded related to acquired intangible assets during the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of net revenue	$	208	$	208	$	617	$	617
Sales, marketing and support	1,906		2,071		5,862		6,291
General and administrative	—		6		—		19
Total amortization of acquired intangible assets	$	2,114	$	2,285	$	6,479	$	6,927

Summary of Total Expected Future Amortization Expense for Acquired Intangible Assets

As of September 30, 2023, the total expected future amortization expense of acquired intangible assets by year is as follows (in thousands):

The remainder of 2023	$	2,114
2024	8,300
2025	5,014
Total expected future amortization expense	$	15,428

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Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Summary of Long-Term Debt

As of September 30, 2023 and December 31, 2022, long-term debt consisted of the following (in thousands):

	September 30, 2023						December 31, 2022
	2026 Notes		2025 Notes		Total		2026 Notes		2025 Notes		Total
Outstanding principal balance	$	212,750	$	150,000	$	362,750	$	212,750	$	150,000	$	362,750
Less: Debt issuance costs	(3,129)		(2,484)		(5,613)		(3,896)		(3,274)		(7,170)
Carrying amount, long-term debt	$	209,621	$	147,516	$	357,137	$	208,854	$	146,726	$	355,580

Summary of Total Interest Expense

The following tables set forth the total interest expense recognized related to the term loans and the convertible notes for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cash interest expense	$	2,274	$	2,274	$	6,801	$	6,801
Amortization of debt issuance costs	548		529		1,557		1,504
Total interest expense	$	2,822	$	2,803	$	8,358	$	8,305

Summary of Contractual Cash Obligations and Rights

The following table summarizes the Company's contractual obligation to settle commitments related to the 2026 Notes and 2025 Notes as of September 30, 2023 (in thousands):

	Payments due by Year
	Total		2023		2024		2025		2026		2027 and thereafter
Convertible Senior Notes Due 2026	$	212,750	$	—	$	—	$	—	$	212,750	$	—
Interest obligations on 2026 Notes (1)	4,788		—		1,596		1,596		1,596		—
Convertible Senior Notes Due 2025	150,000		—		—		150,000		—		—
Interest obligations on 2025 Notes (1)	18,750		3,750		7,500		7,500		—		—

(1) The 2026 Notes and 2025 Notes bear interest at a fixed rate of 0.750% and 5.000% per year, respectively.

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Summary of Stock Option Activity

Stock option activity for the nine months ended September 30, 2023 is presented below:

	Outstanding options	Weighted average exercise price		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Balance as of December 31, 2022	12,558,158	$	12.30	6.4	$	93
Granted	787,022	8.30
Exercised	(148,709)	6.26
Canceled	(750,910)	12.80
Balance as of September 30, 2023	12,445,561	12.09		5.6	9,827
Vested and exercisable as of September 30, 2023	10,164,516	12.19		4.9	7,733
Vested and expected to vest as of September 30, 2023	12,324,445	12.10		5.5	9,701

Summary of Restricted Stock Activity

Stock award activity, which includes RSUs, PSUs, and restricted stock awards (RSAs), for the nine months ended September 30, 2023 is presented below:

	Outstanding RSUs, RSAs and PSUs	Weighted-average grant date fair value per share		Weighted average remaining contractual term (years)	Aggregate intrinsic value (thousands)
Balance as of December 31, 2022	10,764,197	$	11.46	1.7	$	63,059
Awarded	6,475,375	8.33
Released	(1,809,595)	14.43
Canceled	(2,720,984)	10.98
Balance as of September 30, 2023	12,708,993	9.55		1.4	125,311
Vested and expected to vest as of September 30, 2023	11,426,075	9.56		1.3	112,661

Summary of Stock-Based Compensation Expense

Stock-based compensation expense recognized in connection with stock options, RSUs, RSAs, PSUs and the Employee Stock Purchase Plan (ESPP) during each of the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Cost of net revenue	$	213	$	179	$	637	$	625
Product development	5,635		5,456		15,143		15,240
Sales, marketing and support	2,018		2,226		7,037		6,065
General and administrative	6,602		5,669		18,344		18,688
Total	$	14,468	$	13,530	$	41,161	$	40,618

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Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Summary of Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
Net loss	$	(9,935)	$	(21,124)		$	(25,542)	$	(59,397)
Weighted-average shares used in computing net loss per share, basic and diluted	100,540		98,543			100,030		98,069
Net loss per share, basic and diluted	$	(0.10)	$	(0.21)		$	(0.26)	$	(0.61)

Summary of Potentially Dilutive Securities Excluded from the Computation of Diluted Net Loss Per Share

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect (in thousands):

	September 30, 2023	September 30, 2022
Shares related to convertible senior notes	19,538	19,538
Stock-options to purchase common stock	12,446	12,643
Restricted stock units	12,610	9,730
ESPP	136	102
Total shares of potentially dilutive securities	44,730	42,013

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Geographic Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Summary of Net Revenue By Geography

The following table presents the Company's total net revenue by geography based on the currency of the underlying transaction (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022			2023		2022
United States	$	59,963	$	49,959		$	175,836	$	141,303
International	21,581		17,513			62,534		48,085
Total net revenue	$	81,544	$	67,472		$	238,370	$	189,388

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Overview and Basis of Presentation - Adjustments to Cash Flow (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net cash provided by operating activities	$ 101,800	$ 72,467
Net cash used in investing activities	(68,516)	(4,684)
Net cash used in financing activities	(3,990)	(1,585)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(925)	(25,196)
Net increase in cash, cash equivalents and restricted cash	$ 28,369	41,002
As Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net cash provided by operating activities		47,271
Net cash used in investing activities		(4,684)
Net cash used in financing activities		(1,585)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		0
Net increase in cash, cash equivalents and restricted cash		41,002
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net cash provided by operating activities		25,196
Net cash used in investing activities		0
Net cash used in financing activities		0
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(25,196)
Net increase in cash, cash equivalents and restricted cash		$ 0

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Overview and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1
Number of reportable segments	1

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Restructuring - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Feb. 27, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 754	$ 15,132
Severance and other termination benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges	750	10,828
Lease abandonment and related charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 4	$ 4,304
Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges			$ 20,000

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Restructuring - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 754	$ 15,132
Cost of net revenue
Restructuring Cost and Reserve [Line Items]
Restructuring charges	237	1,685
Product development
Restructuring Cost and Reserve [Line Items]
Restructuring charges	140	6,731
Sales, marketing and support
Restructuring Cost and Reserve [Line Items]
Restructuring charges	94	2,447
General and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring charges	283	4,269
Severance and other termination benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges	750	10,828
Severance and other termination benefits | Cost of net revenue
Restructuring Cost and Reserve [Line Items]
Restructuring charges	237	1,259
Severance and other termination benefits | Product development
Restructuring Cost and Reserve [Line Items]
Restructuring charges	140	5,385
Severance and other termination benefits | Sales, marketing and support
Restructuring Cost and Reserve [Line Items]
Restructuring charges	94	1,406
Severance and other termination benefits | General and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring charges	279	2,778
Lease abandonment and related charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4	4,304
Lease abandonment and related charges | Cost of net revenue
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	426
Lease abandonment and related charges | Product development
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	1,346
Lease abandonment and related charges | Sales, marketing and support
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	1,041
Lease abandonment and related charges | General and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 4	$ 1,491

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Restructuring - Reserve Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring reserve, balance at beginning of period	$ 0
Restructuring related costs accrued	15,132
Cash payment	(8,101)
Non-cash items applied	(4,304)
Restructuring reserve, balance at end of period	$ 2,727

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Cash, Cash Equivalents and Restricted Cash - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 567,646	$ 539,299	$ 675,817
Creator Cash
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 344,000	$ 269,400

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Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 567,646	$ 539,299	$ 675,817
Restricted cash	897	875	1,344
Total cash, cash equivalents and restricted cash	$ 568,543	$ 540,174	$ 677,161	$ 636,159

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Short-term Investments (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Short term investment impairment	$ 0	$ 0
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost	202,506,000	200,713,000
Gross unrecognized holding gains	4,000	27,000
Gross unrecognized holdings losses	(14,000)	(5,000)
Aggregate fair value	202,496,000	200,735,000
Cash equivalents | Savings deposits
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost	50,128,000	31,288,000
Gross unrecognized holding gains	0	0
Gross unrecognized holdings losses	0	0
Aggregate fair value	50,128,000	31,288,000
Cash equivalents | US Treasury securities
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost		85,201,000
Gross unrecognized holding gains		17,000
Gross unrecognized holdings losses		0
Aggregate fair value		85,218,000
Short-term investments | US Treasury securities
Schedule of Held-to-Maturity Securities [Line Items]
Amortized cost	152,378,000	84,224,000
Gross unrecognized holding gains	4,000	10,000
Gross unrecognized holdings losses	(14,000)	(5,000)
Aggregate fair value	$ 152,368,000	$ 84,229,000

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Funds Receivable (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Funds receivable, underlying ticketing transaction	5 days
Funds receivable	$ 32,787	$ 43,525
Tickets Sold on Behalf of Creators
Accounts, Notes, Loans and Financing Receivable [Line Items]
Funds receivable	$ 29,800	$ 39,900

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Accounts Receivable, Net - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable, customers	$ 3,604	$ 2,967
Allowance for credit losses	(777)	(701)
Accounts receivable, net	$ 2,827	$ 2,266

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Creator Signing Fees, Net - Narrative (Details)	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Creator signing fees, amortization period	2 years 3 months 18 days

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Creator Signing Fees, Net - Summary of the Activity in Creator Signing Fees (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Activity in creator signing fees:
Balance, beginning of period	$ 2,569	$ 2,538	$ 1,748	$ 3,409
Creator signing fees paid	0	0	30	5
Amortization of creator signing fees	(275)	(281)	(742)	(955)
Write-offs and other adjustments	16	(75)	1,274	(277)
Balance, end of period	$ 2,310	$ 2,182	$ 2,310	$ 2,182

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Creator Signing Fees, Net - Classification of Creator Signing Fees on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Creator signing fees, net	$ 913		$ 645	$ 929
Creator signing fees, net noncurrent	1,397		1,103	1,253
Total creator signing fees	$ 2,310	$ 2,569	$ 1,748	$ 2,182	$ 2,538	$ 3,409

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Creator Advances, Net - Summary of Activity in Creator Advances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Activity In Notes, Loans And Financing Receivable [Roll Forward]
Balance, beginning of period	$ 695	$ 1,150	$ 721	$ 862
Creator advances paid	722	0	822	335
Creator advances recouped	(110)	(325)	(528)	(2,247)
Write-offs and other adjustments	357	0	649	1,875
Balance, end of period	$ 1,664	$ 825	$ 1,664	$ 825

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Accounts Payable, Creators (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accounts payable, unremitted ticket sale proceeds, net of fees and taxes	5 days
Advance payouts outstanding	$ 142.3	$ 193.1

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Chargebacks and Refunds Reserve (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Chargebacks and refunds reserve	$ 10,004	$ 13,136
Loss contingency, estimate of possible loss	$ 7,900	$ 11,200

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Property and Equipment, Net - Composition of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Finance lease right-of-use assets	$ 0	$ 597
Property and equipment	66,032	67,572
Less: Accumulated depreciation and amortization	(56,610)	(61,224)
Property and equipment, net	9,422	6,348
Capitalized internal-use software development costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	61,006	55,009
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	193	869
Computers and computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	3,849	6,854
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 984	$ 4,243

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Property and Equipment, Net - Capitalized Internal-Use Software Development Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 241	$ 704	$ 962	$ 1,475
Amortization of capitalized internal-use software development costs	$ 870	$ 822	$ 2,493	$ 2,657

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Leases - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Leases [Abstract]
Right-of-use asset, amortization expense	$ 3.9
Weighted-average remaining operating lease term	2 years 4 months 24 days
Weighted-average discount rate on operating leases	3.90%

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Leases - Components of Operating Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease costs	$ 86	$ 798	$ 5,088	$ 2,361
Sublease income	0	(48)	(104)	(154)
Total operating lease costs, net	$ 86	$ 750	$ 4,984	$ 2,207

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Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Operating Leases
The remainder of 2023	$ 433
2024	1,633
2025	1,672
2026 and thereafter	141
Total future operating lease payments	3,879
Less: Imputed interest	(166)
Total operating lease liabilities	3,713
Operating lease liabilities, current	1,538	$ 2,810
Operating lease liabilities, noncurrent	$ 2,175	$ 3,345

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Goodwill and Acquired Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 174,388	$ 174,388

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Goodwill and Acquired Intangible Assets, Net - Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Acquired intangible assets, net:
Cost	$ 98,930	$ 98,930
Accumulated Amortization	(83,502)	(77,023)
Total expected future amortization expense	15,428	21,907
Developed technology
Acquired intangible assets, net:
Cost	22,396	22,396
Accumulated Amortization	(21,471)	(20,854)
Total expected future amortization expense	925	1,542
Customer relationships
Acquired intangible assets, net:
Cost	74,884	74,884
Accumulated Amortization	(60,381)	(54,519)
Total expected future amortization expense	14,503	20,365
Tradenames
Acquired intangible assets, net:
Cost	1,650	1,650
Accumulated Amortization	(1,650)	(1,650)
Total expected future amortization expense	$ 0	$ 0

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Goodwill and Acquired Intangible Assets, Net - Amortization Expense Related to Acquired Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 2,114	$ 2,285	$ 6,479	$ 6,927
Cost of net revenue
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	208	208	617	617
Sales, marketing and support
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	1,906	2,071	5,862	6,291
General and administrative
Finite-Lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 0	$ 6	$ 0	$ 19

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Goodwill and Acquired Intangible Assets, Net - Total Expected Future Amortization Expense for Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
The remainder of 2023	$ 2,114
2024	8,300
2025	5,014
Total expected future amortization expense	$ 15,428	$ 21,907

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Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Outstanding principal balance	$ 362,750	$ 362,750
Less: Debt issuance costs	(5,613)	(7,170)
Carrying amount, long-term debt	357,137	355,580
Convertible Senior Notes | 2026 Notes
Debt Instrument [Line Items]
Outstanding principal balance	212,750	212,750
Less: Debt issuance costs	(3,129)	(3,896)
Carrying amount, long-term debt	209,621	208,854
Convertible Senior Notes | 2025 Notes
Debt Instrument [Line Items]
Outstanding principal balance	150,000	150,000
Less: Debt issuance costs	(2,484)	(3,274)
Carrying amount, long-term debt	$ 147,516	$ 146,726

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Debt - Summary of Total Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Disclosure [Abstract]
Cash interest expense	$ 2,274	$ 2,274	$ 6,801	$ 6,801
Amortization of debt issuance costs	548	529	1,557	1,504
Total interest expense	$ 2,822	$ 2,803	$ 8,358	$ 8,305

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Debt - Summary of Contractual Cash Obligations and Rights (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Mar. 31, 2021	Jun. 30, 2020
Long-term Debt
Total	$ 362,750	$ 362,750
2026 Notes | Convertible Senior Notes
Long-term Debt
Total	212,750	212,750
2023	0
2024	0
2025	0
2026	212,750
2027 and thereafter	0
Interest obligations
Total	4,788
2023	0
2024	1,596
2025	1,596
2026	1,596
2027 and thereafter	0
Stated interest rate			0.75%
2025 Notes | Convertible Senior Notes
Long-term Debt
Total	150,000	$ 150,000
2023	0
2024	0
2025	150,000
2026	0
2027 and thereafter	0
Interest obligations
Total	18,750
2023	3,750
2024	7,500
2025	7,500
2026	0
2027 and thereafter	$ 0
Stated interest rate				5.00%

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Debt - Senior Notes (Details)	1 Months Ended		3 Months Ended		9 Months Ended
	Mar. 31, 2021 USD ($) day	Jun. 30, 2020 USD ($) day $ / shares	Sep. 30, 2023 USD ($) $ / shares	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) $ / shares	Sep. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Stockholders' equity			$ 179,334,000	$ 150,116,000	$ 179,334,000	$ 150,116,000	$ 176,414,000	$ 164,875,000	$ 166,555,000	$ 158,815,000	$ 164,436,000	$ 169,900,000
Long-term debt			357,137,000		357,137,000				355,580,000
Cash interest expense			2,821,000	2,826,000	8,359,000	8,461,000
Amortization of debt issuance costs			548,000	529,000	1,557,000	1,504,000
Additional Paid-In Capital
Debt Instrument [Line Items]
Stockholders' equity			993,830,000	943,083,000	993,830,000	943,083,000	980,975,000	966,515,000	955,509,000	930,658,000	916,191,000	903,470,000
Accumulated Deficit
Debt Instrument [Line Items]
Stockholders' equity			(814,497,000)	$ (792,968,000)	(814,497,000)	(792,968,000)	$ (804,562,000)	$ (801,641,000)	(788,955,000)	$ (771,844,000)	$ (751,756,000)	$ (733,571,000)
Cumulative effect adjustment | Accounting Standards Update 2020-06
Debt Instrument [Line Items]
Long-term debt													$ 42,400,000
Cumulative effect adjustment | Accounting Standards Update 2020-06 | Additional Paid-In Capital
Debt Instrument [Line Items]
Stockholders' equity													(45,500,000)
Cumulative effect adjustment | Accounting Standards Update 2020-06 | Accumulated Deficit
Debt Instrument [Line Items]
Stockholders' equity													$ 3,100,000
Convertible Senior Notes | 2025 Notes
Debt Instrument [Line Items]
Aggregate principal amount		$ 150,000,000
Stated interest rate		5.00%
Total issuance costs		$ 5,700,000
Proceeds from issuance of debt, net of discounts and debt issuance costs		$ 144,300,000
Long-term debt			$ 147,516,000		$ 147,516,000				146,726,000
Effective interest rate			5.80%		5.80%
Cash interest expense					$ 5,600,000	5,600,000
Amortization of debt discount and issuance costs					$ 800,000	$ 800,000
Conversion rate		0.0793903
Conversion price (in dollars per share) | $ / shares		$ 12.60	$ 12.60		$ 12.60
Threshold percentage of stock price trigger for redemption		130.00%
Period over which default must be cured or waived after notice is given		60 days
Amount of judgment payments rendered that classify as an event of default		$ 10,000,000
Discharge or stay period for judgment		45 days
Percent of the aggregate principal amount due upon event of default		25.00%
Special interest rate period		180 days
Special interest rate		0.50%
Convertible Senior Notes | 2025 Notes | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Estimated fair value of long-term debt			$ 167,800,000		$ 167,800,000
Convertible Senior Notes | 2025 Notes | Conversion Condition 1
Debt Instrument [Line Items]
Threshold percentage of stock price trigger for conversion		130.00%
Threshold trading days for conversion | day		20
Threshold consecutive trading days for conversion | day		30
Convertible Senior Notes | 2025 Notes | Conversion Condition 2
Debt Instrument [Line Items]
Threshold percentage of stock price trigger for conversion		98.00%
Threshold consecutive trading days for conversion | day		10
Threshold consecutive business days for conversion | day		5
Convertible Senior Notes | 2026 Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 212,750,000
Stated interest rate	0.75%
Long-term debt			$ 209,621,000		$ 209,621,000				$ 208,854,000
Effective interest rate			1.30%	1.30%	1.30%	1.30%
Cash interest expense					$ 1,200,000	$ 1,200,000
Conversion rate	0.0358616
Conversion price (in dollars per share) | $ / shares			$ 27.89		$ 27.89
Threshold percentage of stock price trigger for redemption	130.00%
Period over which default must be cured or waived after notice is given	60 days
Percent of the aggregate principal amount due upon event of default	25.00%
Special interest rate period	180 days
Special interest rate	0.50%
Estimated fair value of long-term debt			$ 176,400,000		$ 176,400,000
Debt issuance costs and discount	$ 5,700,000
Proceeds from the issuance of debt	$ 207,000,000
Threshold trading days for redemption | day	20
Threshold consecutive trading days for redemption | day	30
Cure period	30 days
Default on debt by the Company or subsidiary that classifies as an Event of Default	$ 10,000,000
Amortization of debt issuance costs					$ 800,000	$ 800,000
Convertible Senior Notes | 2026 Notes | Conversion Condition 1
Debt Instrument [Line Items]
Threshold percentage of stock price trigger for conversion	130.00%
Threshold trading days for conversion | day	20
Threshold consecutive trading days for conversion | day	30
Convertible Senior Notes | 2026 Notes | Conversion Condition 2
Debt Instrument [Line Items]
Threshold percentage of stock price trigger for conversion	98.00%
Threshold consecutive trading days for conversion | day	10
Threshold consecutive business days for conversion | day	5

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Debt - Capped Call Transactions (Details) - Convertible Senior Notes - Capped Calls - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
2026 Notes
Debt Instrument [Line Items]
Cap price (in dollars per share)	$ 37.5375
Taxes paid related to net share settlement of equity awards	$ 18.5
2025 Notes
Debt Instrument [Line Items]
Cap price (in dollars per share)		$ 17.1520
Taxes paid related to net share settlement of equity awards		$ 15.6
Strike price (in dollars per share)		$ 12.60

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Commitments and Contingencies (Details) - USD ($) $ in Millions	Nov. 01, 2022	May 23, 2022	Sep. 30, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Loss contingency accrual			$ 4.0	$ 6.0
Estimate of possible loss attributable to potential interest and penalties			$ 0.6	$ 0.9
M.R.G. Concerts Ltd. (MRG) and Matthew Gibbons (Gibbons)
Loss Contingencies [Line Items]
Damages awarded	$ 14.9	$ 11.0

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Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2018	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Class of Stock [Line Items]
Options outstanding (in shares)		12,445,561		12,445,561		12,558,158
Capitalized stock-based compensation expense		$ 0.5	$ 0.3	$ 1.1	$ 0.5
Stock Options
Class of Stock [Line Items]
Compensation expense not yet recognized		13.1		$ 13.1
Weighted-average recognition period for unrecognized stock-based compensation				2 years 1 month 6 days
Weighted-average fair value of stock options granted (in dollars per share)				$ 4.98
RSUs, RSAs and PSUs
Class of Stock [Line Items]
Weighted-average recognition period for unrecognized stock-based compensation				2 years 3 months 18 days
Total unrecognized stock-based compensation		$ 88.3		$ 88.3
2004 Plan, 2010 Plan and 2018 Plan | Stock Options
Class of Stock [Line Items]
Vesting period				4 years
Expiration period				10 years
2018 Stock Option and Incentive Plan
Class of Stock [Line Items]
Annual cumulative increase in the number of shares reserved and available for issuance	5.00%
Options issued (in shares)		6,820,097		6,820,097
Options outstanding (in shares)		6,820,097		6,820,097
2018 Stock Option and Incentive Plan | Class A Common Stock
Class of Stock [Line Items]
Common stock reserved for future issuance (in shares)		5,572,087		5,572,087
2010 Stock Option Plan
Class of Stock [Line Items]
Options issued (in shares)		5,625,464		5,625,464
Options outstanding (in shares)		5,625,464		5,625,464

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Stockholders' Equity - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Outstanding options
Balance (in shares) | shares	12,558,158
Granted (in shares) | shares	787,022
Exercised (in shares) | shares	(148,709)
Canceled (in shares) | shares	(750,910)
Balance (in shares) | shares	12,445,561	12,558,158
Vested and exercisable (in shares) | shares	10,164,516
Vested and expected to vest (in shares) | shares	12,324,445
Weighted average exercise price
Balance (in dollars per share) | $ / shares	$ 12.30
Granted (in dollars per share) | $ / shares	8.30
Exercised (in dollars per share) | $ / shares	6.26
Canceled (in dollars per share) | $ / shares	12.80
Balance (in dollars per share) | $ / shares	12.09	$ 12.30
Vested and exercisable (in dollars per share) | $ / shares	12.19
Vested and expected to vest (in dollars per share) | $ / shares	$ 12.10
Weighted average remaining contractual term (years)
Outstanding	5 years 7 months 6 days	6 years 4 months 24 days
Vested and exercisable	4 years 10 months 24 days
Vested and expected to vest	5 years 6 months
Aggregate intrinsic value (thousands)
Outstanding | $	$ 9,827	$ 93
Vested and exercisable | $	7,733
Vested and expected to vest | $	$ 9,701

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Stockholders' Equity - Restricted Stock Units and Restricted Stock Activity (Details) - RSUs, RSAs and PSUs - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Outstanding RSUs, RSAs and PSUs
Balance (in shares)	10,764,197
Awarded (in shares)	6,475,375
Released (in shares)	(1,809,595)
Canceled (in shares)	(2,720,984)
Balance (in shares)	12,708,993	10,764,197
Vested and and expected to vest (in shares)	11,426,075
Weighted-average grant date fair value per share
Balance (in dollars per share)	$ 11.46
Awarded (in dollars per share)	8.33
Released (in dollars per share)	14.43
Canceled (in dollars per share)	10.98
Balance (in dollars per share)	9.55	$ 11.46
Vested and expected to vest (in dollars per share)	$ 9.56
Weighted average remaining contractual term (years)
Balance	1 year 4 months 24 days	1 year 8 months 12 days
Vested and expected to vest	1 year 3 months 18 days
Aggregate intrinsic value (thousands)
Balance	$ 125,311	$ 63,059
Vested and expected to vest	$ 112,661

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Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 14,468	$ 13,530	$ 41,161	$ 40,618
Cost of net revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	213	179	637	625
Product development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	5,635	5,456	15,143	15,240
Sales, marketing and support
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,018	2,226	7,037	6,065
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 6,602	$ 5,669	$ 18,344	$ 18,688

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Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net loss	$ (9,935)	$ (2,921)	$ (12,686)	$ (21,124)	$ (20,088)	$ (18,185)	$ (25,542)	$ (59,397)
Weighted-average shares used in computing net loss per share, basic (in shares)	100,540			98,543			100,030	98,069
Weighted-average shares used in computing net loss per share, diluted (in shares)	100,540			98,543			100,030	98,069
Net loss per share, basic (in dollars per share)	$ (0.10)			$ (0.21)			$ (0.26)	$ (0.61)
Net loss per share, diluted (in dollars per share)	$ (0.10)			$ (0.21)			$ (0.26)	$ (0.61)

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Net Loss Per Share - Potentially Dilutive Securities Excluded from the Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares)	44,730	42,013
Shares related to convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares)	19,538	19,538
Stock-options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares)	12,446	12,643
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares)	12,610	9,730
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares)	136	102

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Net Loss Per Share - Narrative (Details) - $ / shares shares in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares)	44,730	42,013
2025 Notes | Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Conversion price (in dollars per share)	$ 12.60		$ 12.60
2026 Notes | Convertible Senior Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Conversion price (in dollars per share)	$ 27.89
Shares related to convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares)	19,538	19,538
Shares related to convertible senior notes | 2025 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares)	11,900
Shares related to convertible senior notes | 2026 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of diluted net loss per share (in shares)	7,600

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 762	$ (80)	$ 1,832	$ (41)

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Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue, Major Customer [Line Items]
Total net revenue	$ 81,544	$ 67,472	$ 238,370	$ 189,388
United States
Revenue, Major Customer [Line Items]
Total net revenue	59,963	49,959	175,836	141,303
International
Revenue, Major Customer [Line Items]
Total net revenue	$ 21,581	$ 17,513	$ 62,534	$ 48,085