Eventbrite, Inc. (NYSE: EB)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001475115
Market Cap 434.85 Mn
P/B 2.30
P/E -40.55
P/S 1.48
ROIC (Qtr) -6.44
Div Yield % 0.00
Rev 1y % (Qtr) -7.79
Total Debt (Qtr) 175.83 Mn
Debt/Equity (Qtr) 0.93

About

Eventbrite, Inc., often recognized by its stock symbol of EB, is a leading global live events marketplace that connects event creators with consumers. The company's mission is to bring the world together through live experiences, and it has been a significant player in the experience economy since its inception. With a highly scalable self-service platform, Eventbrite empowers event creators to plan, promote, and sell tickets to their events, while also helping to connect their events to interested audiences. Eventbrite's primary business activities...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 510.68M provide 4.24x coverage of short-term debt 120.58M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 570.20M provides 3.24x coverage of total debt 175.82M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 24.81M exceeds capital expenditure of 3.69M by 6.73x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 570.20M provides 9.96x coverage of working capital 57.25M, indicating strong operational backing.
  • Tangible assets of 570.20M provide robust 16.42x coverage of other current liabilities 34.73M, indicating strong asset backing.

Bear case

  • Investment activities of 21.31M provide weak support for R&D spending of 75.70M, which is 0.28x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 28.50M shows concerning coverage of stock compensation expenses of 33.80M, with a 0.84 ratio indicating potential earnings quality issues.
  • Operating earnings of (3.45M) show weak coverage of depreciation charges of 16.16M, with a -0.21 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 24.81M represents just -0.40x of debt issuance (61.38M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 16.16M relative to operating cash flow of 28.50M, which is 0.57x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.19 1.10
EV to Cash from Ops. EV/CFO 4.89 -3.08
EV to Debt EV to Debt 0.79 28.98
EV to EBIT EV/EBIT -40.38 -26.54
EV to EBITDA EV/EBITDA -16.14 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 5.61 -67.01
EV to Market Cap EV to Market Cap 0.32 0.90
EV to Revenue EV/Rev 0.47 61.25
Price to Book Value [P/B] P/B 2.30 1.56
Price to Earnings [P/E] P/E -40.55 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -0.70 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 58.49 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -3.82 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -195.97 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 27.46 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -190.50 32.66
EBT Growth (1y) % EBT 1y % (Qtr) -24.36 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) -37.50 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) 329.59 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -15.48 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.40 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.03 1.54
Current Ratio Curr Ratio (Qtr) 1.12 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.93 -0.39
Interest Cover Ratio Int Coverage (Qtr) -0.70 -202.56
Times Interest Earned Times Interest Earned (Qtr) -0.70 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.30 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -1.17 -4,786.62
EBT Margin % EBT Margin % (Qtr) -2.83 -5,002.12
Gross Margin % Gross Margin % (Qtr) 67.60 58.65
Net Profit Margin % Net Margin % (Qtr) -3.60 -5,003.08