Eventbrite, Inc.'s (NYSE:EB) Path To Profitability

We feel now is a pretty good time to analyse Eventbrite, Inc.'s (NYSE:EB) business as it appears the company may be on the cusp of a considerable accomplishment. 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$22m, the US$798m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Eventbrite's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Eventbrite

Eventbrite is bordering on breakeven, according to the 7 American Interactive Media and Services analysts. They expect the company to post a final loss in 2025, before turning a profit of US$59m in 2026. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 59% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Eventbrite's growth isn’t the focus of this broad overview, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Eventbrite is its debt-to-equity ratio of 199%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Eventbrite, so if you are interested in understanding the company at a deeper level, take a look at Eventbrite's company page on Simply Wall St. We've also put together a list of essential 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.