One of the largest stock drops in today’s trading session came from a tech company on the NYSE. Eventbrite (NYSE: EB) saw it’s share prices drop over 23 percent in after-hours trading as the markets reacted to poor financial results from the company. Overall, investors had expected the company to suffer financial losses during the quarter. However, they were surprised when the company reported larger-than-expected losses, despite beating revenue expectations.
Eventbrite’s first-quarter revenues were reported at around the $80 million figure, significantly below the $91 million that analysts had forecast, according to CNBC. Overall, the company saw losses per share in the 17-cent range, above the 14 cents per share loss expected. The only positive metric reported by the company was its revenue, which grew slightly to $75.9 million, above the $73.2 million expected by Wall Street.
The company reported weaker than expected financial results last year as well, losing 79 cents per share on the company’s $62.7 million in revenue. Overall, the company’s shares were still up 16 percent from last year before today’s financial results were revealed. However, today’s drastic drop in stock price has eradicated all of these gains.
Just yesterday, Eventbrite announced that they were going to launch tier own localized platform in Mexico to better serve event creators in that market. “Mexico is a country where bringing people together is deeply woven into the cultural fabric,” said Deb Sharkey, Chief Commercial Officer at Eventbrite. “We see a diverse range of events from networking gatherings to performing arts to helping tourists gain easy access to an authentic local experience. We’re pleased to enable a localized offering that will help Mexican event creators be even more successful and offer consumers more options to access great live experiences.”
Prior to this, Eventbrite was seen by Wall Street as a company with strong growth potential. On the day the company first went public on the markets, it’s shares soared over 60 percent with it’s IPO raising $230 million., it’s clear that by today’s drop-in stock price there are However, one thing that has bothered some investors was the company’s choice to expand aggressively at the expense of profits. While the company used to have a large financial cushion and other investors don’t find the lack of short-term profits botheringdefinitely some investors who are rattled.
Eventbrite Company Profile
Eventbrite is a global ticketing and event technology platform that provides creators of events of all shapes and sizes with tools and resources to seamlessly plan, promote, and produce live experiences around the world.
Eventbrite’s powerful platform, which can be accessed online or via mobile apps, scales from basic registration and ticketing to a fully featured event management platform. Customers include Newport Folk and Jazz Festivals, Pitchfork Music Festival, and Wanderlust, in addition to top venues and promoters that include Bowery Ballroom, the Brooklyn Bowl, and The Troubadour.
Eventbrite was founded by Julia Hartz, Kevin Hartz, and Renaud Visage and launched operations in 2006. The company has more than 1,000 employees in 14 offices around the world. – Eventbrite