Yahoo Movies When Will Eventbrite, Inc. (NYSE:EB) Turn A Profit?
Eventbrite, Inc. (NYSE:EB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Eventbrite, Inc. operates a self-service ticketing and experience technology platform that serves event creators in the United States and internationally. The US$847m market-cap company’s loss lessened since it announced a US$139m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$76m, as it approaches breakeven. Many investors are wondering about the rate at which Eventbrite will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Eventbrite
Consensus from 7 of the American Interactive Media and Services analysts is that Eventbrite is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$15m in 2025. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 54% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Eventbrite given that this is a high-level summary, but, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Eventbrite is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Eventbrite which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Eventbrite, take a look at Eventbrite's company page on Simply Wall St. We've also put together a list of essential factors you should look at:
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.
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.
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.
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