SAN FRANCISCO (CelebrityAccess) — Self-service ticketing and event platform Eventbrite revealed the financial details of a brutal first fiscal quarter for 2020, with revenue slashed by almost 35 percent.
For the quarter, Eventbrite reported net revenue of 49 million, down from 81.3 million in the same quarter in 2019.
During the same time period, net losses at the ticketer ballooned to 146.47 million from just 9.9 million in Q1 2019. EBITDA was equally dire, shifting from $4 million in the black for Eventbrite in Q1 2019 to $119,600,000 in the red for Q1 2020.
The losses were driven primarily by ticket refunds for canceled events to the tune of $150 million in March alone, and a decline in ticket sales due to the pandemic.
“COVID-19 and social-distancing have severely impacted Eventbrite’s business, reducing paid ticket volumes and increasing event cancellations and postponements. The company’s swift response includes: 1) implementing a plan we expect will reduce annual expenses by at least $100 million; 2) accessing up to $225 million in term loans to strengthen the company’s financial position; and 3) focusing the strategy to deliver a self-service creator experience with strong unit economics,” Eventbrite’s co-founder and Chief Executive Officers Julia Hartz said in the company’s financial release.
“Ticket sales trends have shown improvement from the mid-March low-point, driven by online events and small gatherings; however, restrictions on live events and adherence to social-distancing guidelines are expected to constrain ticket sales for several quarters,” Hartz added.
One bright spot for Eventbrite during the pandemic has been the rapid expansion of online events. Eventbrite announced that it has seen almost 20,000 online events published daily on its platform, representing a 2000% year-over-year increase in online events in April.
“While this devastating public health crisis brought on by COVID-19 has ground the live experiences economy to a halt, we’re encouraged by the increase in demand for online experiences as it shows our timeless need for human connection remains as strong as ever,” Chief Executive Julia Hartz said in a release.