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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________
FORM 10-Q
____________________________________________________________________________
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File Number: 001-38658
_______________________________________________________________________________
EVENTBRITE, INC.
(Exact name of registrant as specified in its charter)
________________________________________________________________________________
Delaware14-1888467
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
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 classTrading symbol(s)Name of each exchange on which registered
Class A common stock, $0.00001 par valueEBNew York Stock Exchange LLC
_________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒  
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐
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 August 1, 2024, 80,452,711 shares of Registrant's Class A common stock and 15,648,429 shares of Registrant's Class B common stock were outstanding.

EVENTBRITE, INC.
TABLE OF CONTENTS

Page
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
PART I. FINANCIAL INFORMATION
PART II. OTHER INFORMATION
Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities


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 our future financial or operational results; our Convertible Notes (as defined below); our future financial performance, including our revenue, costs of revenue and operating expenses; our anticipated growth and growth strategies; our advance payout program; the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; 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, 2023 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)
June 30, 2024December 31, 2023
Assets
Current assets
          Cash and cash equivalents$575,499 $489,200 
          Funds receivable28,869 48,773 
Short-term investments, at amortized cost56,698 153,746 
          Accounts receivable, net4,856 2,814 
          Creator signing fees, net3,601 634 
          Creator advances, net6,852 2,804 
          Prepaid expenses and other current assets12,147 13,880 
                    Total current assets688,522 711,851 
Creator signing fees, net noncurrent1,553 1,303 
Property and equipment, net12,643 9,384 
Operating lease right-of-use assets1,000 177 
Goodwill174,388 174,388 
Acquired intangible assets, net9,132 13,314 
Other assets7,282 2,913 
                    Total assets$894,520 $913,330 
Liabilities and Stockholders’ Equity
Current liabilities
          Accounts payable, creators$314,718 $303,436 
          Accounts payable, trade1,467 1,821 
          Chargebacks and refunds reserve8,213 8,088 
          Accrued compensation and benefits8,534 17,522 
          Accrued taxes5,712 8,796 
          Operating lease liabilities1,973 1,523 
          Other accrued liabilities13,062 16,425 
                    Total current liabilities353,679 357,611 
Accrued taxes, noncurrent4,532 4,526 
Operating lease liabilities, noncurrent1,423 1,768 
Long-term debt358,725 357,668 
                    Total liabilities718,359 721,573 
Commitments and contingencies (Note 16)
Stockholders’ equity
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, no shares issued or outstanding as of June 30, 2024 and December 31, 2023
— — 
Common stock, $0.00001 par value; 1,100,000,000 shares authorized; 96,430,627 shares issued and outstanding as of June 30, 2024; 101,276,416 shares issued and outstanding as of December 31, 2023
1 1 
Additional paid-in capital1,032,205 1,007,190 
Treasury stock, at cost; 6,787,969 shares of common stock as of June 30, 2024 and no shares as of December 31, 2023
(37,184)— 
Accumulated deficit(818,861)(815,434)
                    Total stockholders’ equity176,161 191,757 
                    Total liabilities and stockholders’ equity$894,520 $913,330 
(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 June 30,Six Months Ended June 30,
2024202320242023
Net revenue$84,551 $78,912 $170,803 $156,826 
Cost of net revenue24,611 24,603 49,643 50,998 
                    Gross profit59,940 54,309 121,160 105,828 
Operating expenses
          Product development 26,057 23,486 52,741 50,050 
          Sales, marketing and support24,521 15,679 45,390 32,739 
          General and administrative15,816 21,826 37,053 43,544 
                    Total operating expenses66,394 60,991 135,184 126,333 
                    Loss from operations(6,454)(6,682)(14,024)(20,505)
Interest income7,382 6,926 14,789 12,379 
Interest expense(2,806)(2,786)(5,606)(5,538)
Other income (expense), net3,725 80 2,472 (873)
                    Income (loss) before income taxes1,847 (2,462)(2,369)(14,537)
Income tax provision784 459 1,058 1,070 
Net income (loss)$1,063 $(2,921)$(3,427)$(15,607)
Net income (loss) per share
Basic$0.01 $(0.03)$(0.04)$(0.16)
Diluted$0.01 $(0.03)$(0.04)$(0.16)
Weighted-average number of shares outstanding used to compute net income (loss) per share
Basic96,142 99,995 95,557 99,748 
Diluted96,290 99,995 95,557 99,748 
(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 ACommon Stock-Class BTreasury StockAdditional Paid-In CapitalAccumulated DeficitTotal Stockholders’ Equity
SharesAmountSharesAmountSharesAmount
Balance at December 31, 202385,614,983 $1 15,661,433 $— — $— $1,007,190 $(815,434)$191,757 
Issuance of restricted stock awards9,665 — — — — — — — — 
Issuance of common stock for settlement of RSUs887,751 — — — — — — — 
Shares withheld related to net share settlement(305,537)— — — — — (2,612)— (2,612)
Repurchase of common stock(2,652,174)— — — 2,652,174 (15,055)— — (15,055)
Stock-based compensation— — — — — — 14,523 — 14,523 
Net loss— — — — — — — (4,490)(4,490)
Balance at March 31, 202483,554,688 $1 15,661,433 $— 2,652,174 $(15,055)$1,019,101 $(819,924)$184,123 
Issuance of restricted stock awards11,754 — — — — — — — — 
Issuance of common stock for settlement of RSUs1,836,278 — — — — — — — — 
Shares withheld related to net share settlement(604,997)— — — — — (3,164)— (3,164)
Issuance of common stock for 2018 Employee Stock Purchase Plan (ESPP) Purchase107,266 — — — — — 454 — 454 
Repurchase of common stock(4,135,795)— — — 4,135,795 (22,129)— — (22,129)
Stock-based compensation— — — — — — 15,814 — 15,814 
Net income— — — — — — — 1,063 1,063 
Balance at June 30, 202480,769,194 $1 15,661,433 $— 6,787,969 $(37,184)$1,032,205 $(818,861)$176,161 


4
Common Stock-Class ACommon Stock-Class BTreasury StockAdditional Paid-In CapitalAccumulated DeficitTotal Stockholders’ Equity
SharesAmountSharesAmountSharesAmount
Balance at December 31, 202281,529,265 $1 17,640,167 $— — $— $955,509 $(788,955)$166,555 
Issuance of common stock upon exercise of stock options77,378 — — — — — 463 — 463 
Issuance of restricted stock awards10,375 — — — — — — — — 
Issuance of common stock for settlement of RSUs551,060 — — — — — — — — 
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, 202381,974,633 $1 17,640,167 $— — $— $966,515 $(801,641)$164,875 
Issuance of common stock upon exercise of stock options46,035 — — — — — 285 — 285 
Issuance of restricted stock awards1,964 — — — — — — — — 
Issuance of common stock for settlement of RSUs609,839 — — — — — — — — 
Shares withheld related to net share settlement(199,245)— — — — — (1,379)— (1,379)
Issuance of common stock for 2018 Employee Stock Purchase Plan (ESPP) Purchase91,827 — — — — — 567 — 567 
Stock-based compensation— — — — — — 14,987 — 14,987 
Net loss— — — — — — — (2,921)(2,921)
Balance at June 30, 202382,525,053 $1 17,640,167 $— $— $— $980,975 $(804,562)$176,414 
(See accompanying Notes to Unaudited Condensed Consolidated Financial Statements)
5

EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, Unaudited)
Six Months Ended June 30,
20242023
Cash flows from operating activities
Net loss$(3,427)$(15,607)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization7,242 6,709 
Stock-based compensation expense29,239 26,693 
Amortization of debt discount and issuance costs1,057 1,010 
Unrealized gain on foreign currency exchange(1,326)(1,674)
Accretion on short-term investments(2,769)(3,585)
Non-cash operating lease expenses273 5,002 
Amortization of creator signing fees401 468 
Changes related to creator advances, creator signing fees, and allowance for credit losses(2,920)(1,496)
Provision for chargebacks and refunds14,559 5,755 
Gain on litigation settlement(3,927)— 
Other623 908 
Changes in operating assets and liabilities
Accounts receivable(2,866)(763)
Funds receivable20,155 24,136 
Creator signing fees and creator advances(3,922)655 
Prepaid expenses and other assets1,291 1,061 
Accounts payable, creators9,712 15,789 
Accounts payable(366)(487)
Chargebacks and refunds reserve(14,415)(8,350)
Accrued compensation and benefits(8,988)985 
Accrued taxes(3,840)(8,596)
Operating lease liabilities(991)(1,933)
Other accrued liabilities(4,003)1,480 
Net cash provided by operating activities30,792 48,160 
Cash flows from investing activities
Purchases of short-term investments(112,185)(150,565)
Maturities of short-term investments212,002 85,500 
Purchases of property and equipment(403)(521)
Capitalized internal-use software development costs(4,818)(3,161)
Net cash provided by (used in) investing activities94,596 (68,747)
Cash flows from financing activities
Repurchase of common stock(36,508)— 
Proceeds from exercise of stock options— 748 
Taxes paid related to net share settlement of equity awards(5,776)(3,201)
Proceeds from issuance of common stock under ESPP454 567 
Principal payments on finance lease obligations— (1)
Net cash used in financing activities(41,830)(1,887)
Effect of exchange rate changes on cash, cash equivalents and restricted cash2,741 2,787 
Net increase in cash, cash equivalents and restricted cash86,299 (19,687)
Cash, cash equivalents and restricted cash
Beginning of period489,200 540,174 
End of period$575,499 $520,487 
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EVENTBRITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, Unaudited)
Six Months Ended June 30,
20242023
Supplemental cash flow data
Interest paid$4,548 $4,549 
Income taxes paid, net of refunds994 323 
Non-cash investing and financing activities
Operating lease right-of-use assets obtained in exchange for operating lease liabilities$1,011 — 
Reduction of right-of-use assets due to modification or exit$— $3,917 
Other accrued liability recorded for common stock repurchases$536 — 
(See accompanying Notes to Unaudited Condensed Consolidated Financial Statements)
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EVENTBRITE, INC.
Notes to Unaudited Condensed Consolidated Financial Statements
1. Overview and Basis of Presentation
Description of Business
Eventbrite, Inc. (Eventbrite or the Company) operates a two-sided marketplace that connects millions of creators and consumers every month to share their passions, artistry and causes through live experiences. Creators use the Company's highly-scalable self-service ticketing and marketing tools to plan, promote and sell tickets to their events and event seekers use the Company's website and mobile application to discover and purchase tickets to experiences they love.
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, 2023 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 six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 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, 2023 (2023 Form 10-K).
Reclassifications
Certain reclassifications may have been made to the Company's prior year’s condensed consolidated financial statements to conform to the Company's current year presentation. These reclassifications had no effect on the Company's previously reported loss before income taxes.
Significant Accounting Policies
There have been no changes to the Company's significant accounting policies described in the 2023 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 condensed 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 condensed consolidated financial statements.
Comprehensive Income (Loss)
For all periods presented, comprehensive income (loss) equaled net income (loss). Therefore, the condensed consolidated statements of comprehensive income (loss) have been omitted from the unaudited condensed consolidated financial statements.
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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. 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 consumers. 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 consumer to transact. The Company's performance obligation is to facilitate and process that transaction and issue the ticket, and ticketing revenue is recognized by the Company when the ticket is sold. The amount that the Company earns for its ticketing services is fixed which typically consists of a flat fee and a percentage-based fee per ticket. As a result, the Company records ticketing revenue on a net basis related to its ticketing service fees.
For payment processing services, the Company 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 condensed 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. As part of its commercial agreements, the Company offers upfront payments to qualifying creators entering into new or renewed ticketing arrangements in order to incentivize them to organize certain events on the Company's platform or obtain exclusive rights to ticket their events.
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
Advertising revenue represents services that 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 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 and recognizes revenue, based on the ticket capacity selected, at that point-in-time. The Pro plan is a monthly or annual 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. Organizer fees are nonrefundable.
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3. 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 condensed 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 $288.5 million and $259.2 million as of June 30, 2024 and December 31, 2023, respectively. These ticketing proceeds are legally unrestricted, and the Company invests a portion of ticketing proceeds in U.S. Treasury bills with original maturities less than one year. These amounts due to creators are included in accounts payable, creators on the condensed consolidated balance sheets.
During 2023, the Company issued letters of credit relating to contracts entered into with other parties under lease agreements and other agreements which were collateralized with cash. This cash was classified as noncurrent restricted cash on the condensed consolidated balance sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows (in thousands):
June 30, 2024December 31, 2023June 30, 2023
Cash and cash equivalents$575,499 $489,200 $519,598 
Restricted cash — — 889 
Total cash, cash equivalents and restricted cash $575,499 $489,200 $520,487 
4. 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 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 six months ended June 30, 2024 or year ended December 31, 2023.
The following tables summarize the Company's financial instruments that were measured at fair value on a non-recurring basis (in thousands):
June 30, 2024
DescriptionClassificationAmortized costGross unrecognized holding gainsGross unrecognized holdings lossesAggregate fair value
Savings depositsCash equivalents$125,697 $— $— $125,697 
US Treasury securitiesCash equivalents28,315 — (1)$28,314 
US Treasury securitiesShort-term investments56,698 — (3)56,695 
$210,710 $— $(4)$210,706 
December 31, 2023
DescriptionClassificationAmortized costGross unrecognized holding gainsGross unrecognized holdings lossesAggregate fair value
Savings depositsCash equivalents$51,487 $— $— $51,487 
US Treasury securitiesShort-term investments153,746 17 (12)153,751 
$205,233 $17 $(12)$205,238 
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5. 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 $26.2 million and $44.2 million as of June 30, 2024 and December 31, 2023, respectively.
6. Accounts Receivable, Net
Accounts receivable, net is comprised of invoiced amounts to customers who use a third-party facilitated payment processor (FPP) or our advertising services. 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. Bad debt expense was immaterial in all of the periods presented in the condensed consolidated financial statements. The following table summarizes the Company’s accounts receivable balance (in thousands):
June 30, 2024December 31, 2023
Accounts receivable, customers$6,018 $3,524 
Allowance for credit losses(1,162)(710)
Accounts receivable, net$4,856 $2,814 
7. Creator Signing Fees, Net
Creator signing fees are incentives that are offered and paid by the Company to secure exclusive ticketing and payment processing rights with certain creators. Creator signing fees are presented net of reserves on the condensed consolidated balance sheet. 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 condensed consolidated statements of operations.
As of June 30, 2024, the balance of creator signing fees, net is being amortized over a weighted-average remaining contract life of 2.6 years on a straight-line basis. The write-offs and other adjustments for the three and six months ended June 30, 2024 include a reserve release to reflect losses recovered from a litigation settlement in June 2024. The following table summarizes the activity in creator signing fees for the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Balance, beginning of period $1,933 $1,948 $1,937 $1,748 
Creator signing fees paid 630 30 851 30 
Amortization of creator signing fees (207)(258)(401)(468)
Write-offs and other adjustments 2,798 849 2,767 1,259 
Balance, end of period $5,154 $2,569 $5,154 $2,569 
Creator signing fees are classified as follows on the condensed consolidated balance sheet as of the dates indicated (in thousands):
June 30, 2024December 31, 2023June 30, 2023
Creator signing fees, net$3,601 $634 $989 
Creator signing fees, net noncurrent1,553 1,303 1,580 
Total creator signing fees$5,154 $1,937 $2,569 

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8. Creator Advances, Net
Creator advances are incentives that are offered by the Company which provide the creator with funds in advance of the event. Creator advances are presented net of reserves on the condensed consolidated balance sheet. 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 June 30,Six Months Ended June 30,
2024202320242023
Balance, beginning of period$5,626 $584 $2,804 $721 
Creator advances paid687 100 3,674 100 
Creator advances recouped(432)(115)(605)(418)
Write-offs and other adjustments971 126 979 292 
Balance, end of period
$6,852 $695 $6,852 $695 
9. 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 June 30, 2024 and December 31, 2023, advance payouts outstanding was $152.3 million and $115.3 million, respectively.
10. 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 9, “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 $8.2 million and $8.1 million, which primarily includes reserve balances for estimated advance payout losses of $6.0 million and $6.0 million, as of June 30, 2024 and December 31, 2023, 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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11. Property and Equipment, Net
Property and equipment, net consisted of the following as of the dates indicated (in thousands):
June 30, 2024December 31, 2023
Capitalized internal-use software development costs $68,531 $62,615 
Furniture and fixtures 179 179 
Computers and computer equipment 3,996 3,617 
Leasehold improvements 924 924 
Property and equipment73,630 67,335 
Less: Accumulated depreciation and amortization (60,987)(57,951)
Property and equipment, net $12,643 $9,384 
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 June 30,Six Months Ended June 30,
2024202320242023
Depreciation expense$189 $257 $395 $721 
Amortization of capitalized internal-use software development costs1,369 801 2,665 1,623 
12. 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.
The components of operating lease costs were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Operating lease costs$140 $3,127 $273 $5,002 
Sublease income— (52)— (104)
Total operating lease costs, net$140 $3,075 $273 $4,898 
As part of the 2023 Restructuring Plan, the Company closed certain offices in April 2023 to align with the geographic distribution of its employees, resulting in the acceleration of $3.9 million in amortization of right-of-use assets for the six months ended June 30, 2023.
As of June 30, 2024, the Company's operating leases had a weighted-average remaining lease term of 1.8 years and a weighted-average discount rate of 4.6%.
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As of June 30, 2024, maturities of operating lease liabilities were as follows (in thousands):
Operating Leases
The remainder of 2024$1,036 
20252,117 
2026372 
Total future operating lease payments3,525 
Less: Imputed interest(129)
Total operating lease liabilities$3,396 
Operating lease liabilities, current$1,973 
Operating lease liabilities, noncurrent1,423 
Total operating lease liabilities$3,396 
13. Goodwill and Acquired Intangible Assets, Net
The carrying amount of the Company's goodwill was $174.4 million as of June 30, 2024 and December 31, 2023. 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 three or six months ended June 30, 2024 and 2023.
Acquired intangible assets consisted of the following (in thousands):
June 30, 2024December 31, 2023
CostAccumulated AmortizationNet Book ValueCostAccumulated AmortizationNet Book Value
Developed technology $22,396 $(22,091)$305 $22,396 $(21,679)$717 
Customer relationships 74,884 (66,057)8,827 74,884 (62,287)12,597 
Tradenames1,350 (1,350)— 1,350 (1,350)— 
Acquired intangible assets, net $98,630 $(89,498)$9,132 $98,630 $(85,316)$13,314 
The following table set forth the amortization expense recorded related to acquired intangible assets during the periods indicated (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Cost of net revenue $206 $206 $411 $409 
Sales, marketing and support1,885 1,929 3,771 3,956 
Total amortization of acquired intangible assets $2,091 $2,135 $4,182 $4,365 
As of June 30, 2024, the total expected future amortization expense of acquired intangible assets by year is as follows (in thousands):
The remainder of 2024$4,118 
20255,014 
    Total expected future amortization expense$9,132 
14. 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
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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 the Company's financial assets and liabilities are Level 1, except for debt. See Note 15, “Debt,” for details regarding the fair value of the Company's Convertible Notes.
15. Debt
As of June 30, 2024 and December 31, 2023, long-term debt consisted of the following (in thousands):
June 30, 2024December 31, 2023
2026 Notes2025 NotesTotal2026 Notes2025 NotesTotal
Outstanding principal balance$212,750 $150,000 $362,750 $212,750 $150,000 $362,750 
Less: Debt issuance costs(2,347)(1,678)(4,025)(2,864)(2,218)(5,082)
Carrying amount, long-term debt$210,403 $148,322 $358,725 $209,886 $147,782 $357,668 
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 June 30,Six Months Ended June 30,
2024202320242023
Cash interest expense$2,274 $2,274 $4,548 $4,527 
Amortization of debt issuance costs531 512 1,057 1,010 
Total interest expense$2,805 $2,786 $5,605 $5,537 

The following table summarizes the Company's contractual obligation to settle commitments related to the Convertible Notes as of June 30, 2024 (in thousands):
Payments due by Year
Total202420252026
2026 Notes$212,750 $— $— $212,750 
Interest obligations on 2026 Notes (1)
3,990 798 1,596 1,596 
2025 Notes150,000 — 150,000 — 
Interest obligations on 2025 Notes (1)
11,250 3,750 7,500 — 
(1) The 2026 Notes and 2025 Notes bear interest at a fixed rate of 0.750% and 5.000% per year, respectively.
The effective interest rate of the 2026 Notes is 1.3%. The Company recorded cash interest of $0.8 million and amortization of debt issuance costs of $0.5 million related to the 2026 Notes during the six months ended June 30, 2024 and June 30, 2023, respectively.
The effective interest rate of the 2025 Notes is 5.8%. The Company recorded cash interest of $3.8 million and amortization of debt issuance costs of $0.5 million related to the 2025 Notes during the six months ended June 30, 2024 and June 30, 2023, respectively.
The fair value of the 2026 Notes and 2025 Notes, which the Company has classified as Level 2 instruments, was $184.5 million and $148.5 million respectively, as of June 30, 2024. The fair value of the Convertible Notes is determined using observable market prices on the last business day of the period.
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16. Commitments and Contingencies
The Company's principal commitments consist of obligations under the Convertible Notes (including principal and coupon interest); and operating leases for office space, as well as non-cancellable purchase commitments. See Note 15, "Debt" for contractual obligations to settle commitments relating to the Convertible Notes and Note 12, "Leases" for operating leases for office space.
Other than as described in Note 12 and Note 15, there were no material changes to the Company's contractual obligations from those disclosed in the 2023 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 District 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. MRG appealed in April 2023. On December 26, 2023, the Ninth Circuit Court of Appeals found in MRG’s favor, vacating the judgment as to damages, reversing the District Court’s decision denying remittitur, and remanding the case back to the District Court to enter an amended final judgment reducing damages by $6.3 million and accompanying prejudgment interest. On April 16, 2024, the District Court entered the Amended Final Judgment in favor of Eventbrite in the amount of approximately $7.6 million, with additional interest accruing per day. On June 28, 2024, MRG and Eventbrite executed an agreement for MRG to pay Eventbrite the settlement amount of $8.3 million. The Company determined that the gain was realizable and recognized a loss recovery of $4.4 million as a credit to general and administrative expenses and a gain of $3.9 million to other income in relation to this verdict as of June 30, 2024.
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 $0.8 million and $1.1 million as of June 30, 2024 and December 31, 2023, respectively. These amounts, which represent management’s best estimates of its potential liability, include potential interest and penalties of $0.2 million and $0.2 million as of June 30, 2024 and December 31, 2023, respectively.
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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.
17. Stockholders' Equity
Common Stock Repurchase
On March 14, 2024, the Company announced that its Board of Directors approved a share repurchase program with authorization to purchase up to $100.0 million of the Company’s Class A common stock, which does not have an expiration date. During the six months ended June 30, 2024, the Company repurchased 6,787,969 shares of its Class A common stock for an aggregate amount of $37.2 million, which includes amounts accrued for the 1% excise tax as a result of the Inflation Reduction Act of 2022. As of June 30, 2024, approximately $63.0 million remained available and authorized for future repurchases.
The volume and timing of any repurchases is subject to general market conditions, as well as management of capital, general business conditions, other investment opportunities and other factors. Shares may be repurchased through open market purchases, block trades, privately negotiated transactions, accelerated share repurchase transactions or by any combination of such methods, and any repurchases may be made pursuant to Rule 10b5-1 plans. The share repurchase program does not obligate the Company to repurchase any specific number of shares, has no time limit and may be modified, suspended or discontinued at any time at the Company’s discretion.
Subsequent to June 30, 2024 and through August 8, 2024, the Company repurchased 455,314 shares of its Class A common stock at an average price per share of $4.94 for a total purchase price of $2.3 million. As of August 8, 2024, approximately $60.7 million remained available and authorized for future repurchases.
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 June 30, 2024, there were 5,310,131 and 6,328,544 options issued and outstanding under the 2010 Plan and 2018 Plan, respectively (collectively, the Plans). As of June 30, 2024, 5,549,171 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.
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Stock Option Activity
Stock option activity for the six months ended June 30, 2024 is presented below:
Outstanding optionsWeighted average exercise priceWeighted average remaining contractual term (years)Aggregate intrinsic value (thousands)
Balance as of December 31, 202312,318,335 $12.06 5.4$2,845 
Canceled(679,660)10.73 
Balance as of June 30, 202411,638,675 12.14 5.015 
Vested and exercisable as of June 30, 202410,420,075 12.19 4.615 
Vested and expected to vest as of June 30, 202411,577,687 $12.15 4.9$15 
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 June 30, 2024.
As of June 30, 2024, the total unrecognized stock-based compensation expense related to stock options outstanding was $7.2 million, which will be recognized over a weighted-average period of 1.7 years. There were no options granted during the six months ended June 30, 2024.
Stock Award Activity
Stock award activity, which includes RSUs, PSUs and restricted stock awards (RSAs), for the six months ended June 30, 2024 is presented below:
Outstanding RSUs, RSAs and PSUsWeighted-average grant date fair value per shareWeighted average remaining contractual term (years)Aggregate intrinsic value (thousands)
Balance as of December 31, 202312,478,798 $9.40 1.2$104,315 
Awarded7,115,594 5.38 
Released(2,745,448)9.69 
Canceled(901,888)9.33 
Balance as of June 30, 202415,947,056 7.57 1.277,184
Vested and expected to vest as of June 30, 202414,735,803 $7.58 1.2$71,321 
As of June 30, 2024, the total unrecognized stock-based compensation expense related to stock awards, was $83.2 million, which will be recognized over a weighted-average period of 1.8 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 six months ended June 30, 2024 and 2023 was as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,

2024202320242023
Cost of net revenue$128 $226 $279 $423 
Product development7,060 5,184 13,034 9,508 
Sales, marketing and support1,850 2,792 4,284 5,020 
General and administrative6,238 6,397 11,641 11,742 
      Total$15,276 $14,599 $29,238 $26,693 
The Company capitalized $0.5 million and $1.1 million of stock-based compensation expense related to capitalized software costs during the three and six months ended June 30, 2024, respectively, compared to $0.4 million and $0.7 million during the three and six months ended June 30, 2023, respectively.
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18. Earnings Per Share
Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive securities outstanding for the period.
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net income (loss) $1,063 $(2,921)$(3,427)$(15,607)
Weighted-average shares used in computing earnings per share, basic96,142 99,995 95,557 99,748 
Weighted-average shares used in computing earnings per share, diluted96,290 99,995 95,557 99,748 
Net income (loss) per share, basic and diluted$0.01 $(0.03)$(0.04)$(0.16)
The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net income (loss) per share because including them would have had an anti-dilutive effect (in thousands):
June 30, 2024June 30, 2023
Shares related to Convertible Notes19,538 19,538 
Stock options to purchase common stock11,639 12,675 
Restricted stock units 15,557 13,566 
ESPP182 136 
Total shares of potentially dilutive securities46,916 45,915 
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.
19. Income Taxes
The Company recorded an income tax expense of $0.8 million and $1.1 million for the three and six months ended June 30, 2024, respectively, compared to $0.5 million and $1.1 million for the three and six months ended June 30, 2023, respectively. The increase was primarily attributable to insignificant non-routine tax expenses recorded during the prior year 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.
20. 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 June 30,Six Months Ended June 30,
2024202320242023
United States$61,814 $57,476 $125,096 $115,873 
International22,737 21,436 45,707 40,953 
Total net revenue$84,551 $78,912 $170,803 $156,826 
No individual country included in international net revenue represents more than 10% of the total consolidated net revenue for any of the periods presented.
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Substantially all of the Company's long-lived assets are located in the United States.
21. Subsequent Events
The Company has evaluated events from June 30, 2024 through August 8, 2024, the date these financial statements were issued.
On August 7, 2024, the Board of Directors of the Company approved a reduction in force that is designed to reduce operating costs and results in the termination of approximately 11% of the Company’s workforce, or approximately 100 employees. The Company expects the reduction in force to be substantially complete by the third quarter of 2024.
The Company expects to incur total costs associated with the reduction in force of up to $7 million, pre-tax, primarily one-time employee termination and related costs in cash. The Company expects the majority of the employee termination costs to be incurred in the third quarter of 2024.

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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, 2023 (2023 Form 10-K) filed with the United States Securities and Exchange Commission (SEC) on February 27, 2024. 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 2023 Form 10-K and this Quarterly Report on Form 10-Q. References herein to "Eventbrite," the "Company," "we," "us" or "our" refer to Eventbrite, Inc. and its subsidiaries, unless the context requires otherwise.
Overview
Eventbrite’s mission is to bring the world together through live experiences. Since inception, we have been at the center of the experience economy, helping transform the way people discover and organize events. Our two-sided marketplace connects millions of creators and consumers every month to share their passions, artistry and causes through live experiences. Creators use our highly-scalable self-service ticketing and marketing tools to plan, promote and sell tickets to their events and event seekers use our website and mobile application to discover and purchase tickets to experiences they love.
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 income (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
Paid ticket volume is measured 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 June 30,Six Months Ended June 30,
2024202320242023
(in thousands)
Paid ticket volume21,243 23,309 42,459 46,487 
Our paid ticket volume for events in the United States and outside of the United States was 60% and 40%, respectively, in the three and six months ended June 30, 2024, compared to 60% and 40%, respectively, in the three months and 61% and 39%, respectively, in six months ended June 30, 2023.
Adjusted EBITDA
Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes and in evaluating acquisition opportunities. We calculate Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization, stock-based compensation expense, interest income, interest expense, employer taxes related to employee equity transactions, other (income) expense, net, and income tax provision. Adjusted EBITDA should not be considered as an alternative to net income (loss) or any other measure of financial performance calculated and presented in accordance with GAAP.
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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 income (loss), for each of the periods indicated:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands)
Net income (loss) (1)
$1,063 $(2,921)$(3,427)$(15,607)
Add:
Depreciation and amortization3,649 3,193 7,243 6,708 
Stock-based compensation15,276 14,599 29,238 26,693 
Interest income(7,382)(6,926)(14,789)(12,379)
Interest expense2,806 2,786 5,606 5,538 
Employer taxes related to employee equity transactions365 203 792 559 
Other (income) expense, net(3,725)(80)(2,472)873 
Income tax provision784 459 1,058 1,070 
Adjusted EBITDA$12,836 $11,313 $23,249 $13,455 
(1) Restructuring related costs are included in Net Income (Loss) and Adjusted EBITDA.
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 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 income (loss) and other GAAP results.
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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 June 30,Six Months Ended June 30,
2024202320242023
Net revenue $84,551 $78,912 $170,803 $156,826 
Cost of net revenue 24,611 24,603 49,643 50,998 
Gross profit59,940 54,309 121,160 105,828 
Operating expenses:
Product development 26,057 23,486 52,741 50,050 
Sales, marketing and support 24,521 15,679 45,390 32,739 
General and administrative 15,816 21,826 37,053 43,544 
Total operating expenses 66,394 60,991 135,184 126,333 
Loss from operations (6,454)(6,682)(14,024)(20,505)
Interest income7,382 6,926 14,789 12,379 
Interest expense (2,806)(2,786)(5,606)(5,538)
Other income (expense), net 3,725 80 2,472 (873)
Income (loss) before income taxes1,847 (2,462)(2,369)(14,537)
Income tax provision 784 459 1,058 1,070 
Net income (loss)$1,063 $(2,921)$(3,427)$(15,607)
Condensed Consolidated Statements of Operations, as a percentage of net revenue