SAN FRANCISCO - Eventbrite (NYSE: NYSE:EB), a leading global event marketplace, announced the appointment of Anand Gandhi as Chief Financial Officer, effective November 19, 2024. The company stated that this change is part of a strategic move to propel Eventbrite into its next phase of growth and marketplace transformation.
Gandhi brings over two decades of experience in financial leadership, having worked with large public companies and high-growth marketplaces. His most recent role as CFO at Viator, a travel experience marketplace, saw him drive significant revenue growth and profitability. His tenure at Skillshare as CFO also witnessed record revenue increases. Gandhi's background includes roles at notable companies such as The Walt Disney Company (NYSE:DIS), 21st Century Fox, Viacom, and Time Inc., and he started his career in investment banking at Morgan Stanley (NYSE:MS).
Julia Hartz, Eventbrite Co-Founder and CEO, expressed confidence in Gandhi's ability to help unlock the potential of Eventbrite's two-sided marketplace and drive profitable, long-term growth. Gandhi also commented on the opportunity to contribute to Eventbrite's journey and vision during a transformative phase for the company.
Lanny Baker, who has served as CFO since 2019 and took on additional responsibilities as COO in August 2024, will now fully dedicate his efforts to the Chief Operating Officer role. Baker's focus will be on operational optimization, revenue generation, and the execution of the company's marketplace strategy.
Hartz praised Baker's leadership and deep understanding of the business, which she believes will be instrumental in his role as COO.
Eventbrite has been a significant player in the experience economy, enabling event creators to connect with audiences and facilitating community building through live events. The company has distributed over 300 million tickets for more than 5 million events in 2023 and operates in nearly 180 countries. It has also received recognitions for its workplace environment and innovation.
This leadership restructuring is expected to enhance value for Eventbrite's creators, customers, and shareholders, as it embarks on a new chapter of expansion. The information for this article is based on a press release statement.
In other recent news, Eventbrite has initiated repurchases of its 5.000% Convertible Senior Notes due in 2025, aiming to buy back $120 million worth of these notes. This development will leave approximately $30 million in principal amount of the 2025 Notes remaining. In a financial twist, the company's second-quarter 2024 earnings did not meet expectations, prompting Truist Securities to downgrade Eventbrite's stock rating from Buy to Hold. This was further influenced by the company's decision to implement organizer fees, which has contributed to the challenges facing paid ticket growth.
In addition, Eventbrite's third-quarter and full-year 2024 guidance fell significantly short of consensus, leading to Piper Sandler downgrading the stock from Overweight to Neutral. This decision was based on the company's announced strategy shift and expected stagnation in its 2024 revenue growth. Despite these challenges, Eventbrite has announced a workforce reduction of approximately 11% as a strategic move to safeguard profitability and margins while repositioning for future growth. These are some of the recent developments in the company's financial landscape.
InvestingPro Insights
As Eventbrite (NYSE: EB) prepares for its next phase of growth with the appointment of Anand Gandhi as CFO, InvestingPro data provides additional context to the company's financial landscape. Despite the strategic move, Eventbrite's market capitalization stands at $326.74 million, reflecting the challenges faced by the event industry in recent times.
The company's revenue for the last twelve months as of Q2 2024 was $340.11 million, with a growth rate of 14.97%. This growth, albeit modest, aligns with Eventbrite's focus on driving revenue and profitability under new leadership. The gross profit margin of 70.65% indicates a strong core business model, which could be leveraged for future growth.
InvestingPro Tips highlight that Eventbrite holds more cash than debt on its balance sheet, suggesting financial stability as it navigates this transition period. This solid financial footing could provide the new CFO with flexibility to implement strategic initiatives.
Another InvestingPro Tip notes that the stock price has fallen significantly over the last year, with a one-year price total return of -58.5%. This decline may present an opportunity for the new leadership team to demonstrate value creation and potentially reverse the trend.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips that could provide deeper insights into Eventbrite's financial health and market position.
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