SAN FRANCISCO - Eventbrite, Inc. (NYSE:EB), a global events marketplace, disclosed Thursday that it has initiated a stock repurchase program, authorizing up to $100 million in buybacks of its Class A common stock. The repurchase strategy may include open market purchases, block trades, privately negotiated transactions, and other methods, all under prevailing securities regulations.
The decision to repurchase stocks and the timing thereof will hinge on market conditions, capital management, business considerations, and alternative investment prospects, among other factors. Eventbrite made it clear that the program does not compel the company to buy a set number of shares and can be amended, paused, or terminated at any time at the discretion of the company.
Eventbrite anticipates financing the share repurchase with its existing cash balance and potential future cash flows. As of the end of last year, Eventbrite reported having liquidity of approximately $391.1 million. The company's latest share count, as of February 29, 2024, stood at roughly 86.2 million shares of Class A common stock and 15.7 million shares of Class B common stock.
Eventbrite, founded by Julia Hartz, Kevin Hartz, and Renaud Visage, operates a self-service platform that has distributed over 300 million tickets for more than 5 million events in 2023. The company is recognized for its innovation and workplace culture, having received accolades from Fast Company and Great Place to Work®, among others.
This news article is based on a press release statement.
InvestingPro Insights
As Eventbrite, Inc. (NYSE:EB) embarks on its stock repurchase program, several metrics and InvestingPro Tips can provide investors with a deeper understanding of the company's financial health and market performance. With a market capitalization of $582.69 million and a significant gross profit margin of 68.98% for the last twelve months as of Q4 2023, Eventbrite demonstrates a strong ability to generate revenue over its cost of goods sold.
Despite not being profitable over the last twelve months, as indicated by a negative P/E ratio of -19.36 and an adjusted P/E ratio of -41.76 for the same period, Eventbrite's revenue growth has been robust, with an increase of 24.99% during the last twelve months as of Q4 2023. This suggests that the company is growing its top line effectively.
Investors should note two key InvestingPro Tips: Eventbrite holds more cash than debt on its balance sheet and is expected to see net income growth this year. This financial stability and the prospect of profitability are essential considerations for shareholders, especially in light of the recent decision to authorize a stock repurchase program.
For those seeking further analysis and additional InvestingPro Tips, there are 11 more tips available on InvestingPro, which can be accessed at: https://www.investing.com/pro/EB. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive look at Eventbrite's financials and market position.
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