The Eventbrite IPO comes in the wake of hefty 2018 first-half losses.
An online ticketing platform, the service allows users to browse, create, and promote local events. Eventbrite(EB) charges a fee to event organizers in exchange for online ticketing services, unless the event is free.
The online ticketing platform had its IPO on Thursday, September 20th
It was thought the initial offering price would be around $23 per share, with a raise of up to $230 million, implying a valuation above $1.76 billion.
The company now 12 years old, reported a $15.6 million loss for the first half of the year. Eventbrite’s GAAP losses stayed consistent over the past two years, in 2016 $40 million and in 2017 $39 million.
However, the true cash flows of the business improved significantly. The company’s economic losses declined from $38 million in 2016 to -$20 million in 2017.
Even with these numbers, the Eventbrite IPO ended the day relatively well
In its market debut in the IPO world, Eventbrite gained a nearly immediate 60%. It is clear that the historically disappointing financials are not a discourager to the tech investment base.
Eventbrite IPO is one of the largest opening days in recent months.
CEO Julia Hartz said of the Eventbrite IPO, “We really are focused on investing in the future, and so whether that’s expanding into more categories or countries, that’s really where we’re focused. I think that we’ve proven that we can be great stewards of capital, so we’re going to keep doing that.”
Last year more than 203 million tickets were issued through the service
The company shares thus far are distributed with Tiger Global owning 21, Sequoia Capital owns 20 percent, and the Hartzs owns a combined 17 percent.
Sonia Rina Davies is a passionate entrepreneur, speaker, author, and personal development coach. She is an outspoken advocate of the free market economy and has helped countless clients identify their core values, envision and realize goals that resonate with those values. She oversees several businesses both online and offline.