In a report released today, Cameron Mansson-Perrone from Morgan Stanley maintained a Hold rating on Eventbrite (EB – Research Report), with a price target of $9.00.
Cameron Mansson-Perrone has given his Hold rating due to a combination of factors impacting Eventbrite’s near-term growth and profitability prospects. The company’s pivot to a two-sided marketplace and demand-generation platform is not progressing as smoothly as anticipated, leading to a significant slowdown in revenue growth forecasts for the year 2024. This deceleration, from a robust 25% year-over-year growth in 2023 to a projected 10-14% in 2024, has been attributed to a negative reception from event creators towards the newly implemented organizer fees for all listings, including free events. The analyst notes that while the company has the potential to reaccelerate growth, the responsibility is on Eventbrite to demonstrate effective execution of its new business model.
Moreover, Mansson-Perrone highlights the risks associated with Eventbrite’s strategy, particularly if the value proposition fails to resonate with a larger portion of creators than initially expected. A significant reluctance to pay for listings and use Eventbrite’s marketing tools could undermine the company’s competitive edge and marketable addressable market, possibly stunting long-term revenue growth. The report also points out that while there is opportunity for share value increase if Eventbrite can return to over 20% growth and leverage its high-margin business model, the current uncertainties and the balance of risk and reward necessitate a cautious approach, warranting a Hold rating.
According to TipRanks, Mansson-Perrone is a 2-star analyst with an average return of -0.6% and a 50.00% success rate.
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Eventbrite (EB) Company Description:
Eventbrite, Inc. provides event management services encompassing online ticketing, event hosting, organization, promotion and advertising. The company was founded by Alan Michael Braverman, Renaud Visage, Kevin E. Hartz and Julia Hartz in 2006 and is headquartered in San Francisco, CA.
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