Analysts Expect Breakeven For Eventbrite, Inc. (NYSE:EB) Before Long

Eventbrite, Inc. (NYSE:EB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Eventbrite, Inc. operates a self-service ticketing and experience technology platform that serves event creators in the United States and internationally. With the latest financial year loss of US$55m and a trailing-twelve-month loss of US$33m, the US$934m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Eventbrite will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Eventbrite

According to the 5 industry analysts covering Eventbrite, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$11m in 2025. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 63%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Eventbrite's upcoming projects, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Eventbrite currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Eventbrite which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Eventbrite, take a look at Eventbrite's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Valuation: What is Eventbrite worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Eventbrite is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Eventbrite’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.