Eventbrite, Inc.

Good afternoon. Thank you for standing by and welcome to the Eventbrite second quarter fiscal year 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. If you would like to ask a question today, please press star followed by one on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Ms. Catherine Chen, Head of Investor Relations, please go ahead.

Good afternoon and welcome to Eventbrite's second quarter fiscal year 2022 earnings call. Prior to this call, we released our shareholder letter announcing our financial results, which can be found on our website at investors.eventbrite.com. Before we get started, I would like to remind you that during today's call, we will be making forward-looking statements regarding future events and financial performance. We caution that such statements reflect our best judgment as of today, July 28, based on factors that are currently known to us, and that actual future events or results could differ materially due to several factors, many of which are beyond our control. For a more detailed discussion of the risks and uncertainties affecting our future results, we refer you to the section titled Forward Looking Statements in our Shareholder Letter and our Filings with the SEC. We undertake no obligation to update any forward looking statements made during the call, to reflect events or circumstances after today, or to reflect new information or the occurrence of unanticipated events, except as required by law. During this call, we will present adjusted EBITDA, adjusted EBITDA margins, and available liquidity, which are non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and have limitations as an analytical tool. You should not consider them in isolation or as a substitute for analysis of our results of operations as reported under GAAP. A reconciliation for the most directly comparable GAAP financial measure is available in our shareholder letter. We encourage you to read our shareholder letter as it contains important information about GAAP and non-GAAP results. And with that, I'll now turn the call over to Julie Hart, co-founder and chief executive officer.

Thank you, Catherine, and thank you to everyone joining us today. We saw many of you about a month ago at Eventbrite's first Investor Day. It was great to be back in person and to share the team's vision and strategy for the company. We've made considerable progress against that long-term plan, and we're on course for more improvements in the second half. So let's talk about the quarter. Product momentum was strong, and our platform was used by a quickly growing creator base. Revenue was up 43% year-over-year in the quarter, which is at the high end of the outlook range that we raised in June, and is also a post-COVID peak. We achieved our fourth consecutive quarter of adjusted EBITDA profitability. I'm excited about the surging consumer demand for unique and local events, which drove a 58% increase in search volume and a 37% increase in paid tickets on our platforms. Over 10 million unique buyers attended paid events through Eventbrite in Q2. That is the highest level of consumer activity on our platform in two years. Events in music, performing arts, and food and drink are particularly popular right now, and ticket sales in the United Kingdom and Australia are now 15% to 20% higher than they were pre-pandemic, while North America was once again our fastest-growing primary market in Q2. We brought on over 100,000 new creators during the quarter, and this year's new creators of paid events are outselling the levels we saw in 2019. Total paid creators on our platform grew 48% year over year and are closing the gap to 2019 levels. Since we last saw you in June, we shipped 10 major product releases to our creators. I'm really proud of that effort. In the second quarter, our focus was on consumer conversion, frequent creator efficiency, and Eventbrite Boost. We added Google Pay as a payment option to improve checkout conversion. We introduced a new dashboard for creators which built on earlier work we've done to overhaul the navigation experience and makes it easier to manage many events. And Boost received its 12th update since we launched it a year ago. With each update, Boost becomes easier to use and more robust for creators. We reduced the steps required to launch a social ad campaign from eight down to four which resulted in a 16% increase in campaign creation. And we launched a closed beta release of Eventbrite ads, which will give creators the ability to advertise to the high-intent audience searching for events on our platform. The team is on track to release more than 50 new features and product enhancements in the year, and that includes major launches for all four technical and product pillars we shared at Investor Day. These improvements will better align our capabilities with our creator needs, which we think is key to driving sustainable and profitable growth in the long run. Now I want to touch on some of the other important work we're doing to serve our creators, our employees, and our community. On the creator front, we announced the Creator Collective, which is a group of highly experienced and successful creators who will serve as a customer council to us. And we also launched the Reconvene Accelerator, a grant and mentorship program that will help launch new event professionals. On the team front, Eventbrite was certified as a great place to work in May, with 93% of our Brightlings nominating the company for the designation. That's an incredible level of support and speaks to our people-first culture. And just last week, we announced that John Adtox will be joining the team as our new Chief People Officer. We're thrilled to have him here for the next League of Growth. On the ESG front, we launched the Social Connection Project, which is our initiative to understand and reduce social isolation, especially amongst youth. We're tackling this challenge with leading partners like researchers at University of Georgia and Brigham Young University, also in partnership with Lady Gaga's Born This Way Foundation and the Coalition to End Social Isolation and Loneliness. As we look to the second half of the year, we're optimistic and confident that our collective work will continue to compound in strength. The consistent recovery and paid tickets since the Omicron-related slowdown at the start of the year has been especially encouraging. Our third quarter business outlook calls for 25% year-over-year revenue growth at the midpoint of the range as we anticipate this trend to continue. Based on recent performance, we believe our strategy and our execution have well-positioned Eventbrite to build strength even through harsh environments. First, our focus on frequent creators means that our product investments prioritize the broadest and most active customers on our platform and in our market. Second, our self-service product model continues to get stronger with our self-sign-on channel now outpacing pre-COVID era results. And this is important for both revenue and also the profit we generate from the core ticketing business. Third, our emerging marketing and demand generation products will be even more valuable in an environment of increased competition for consumer dollars. And finally, our financial position remains strong with ample available liquidity and another quarter of adjusted EBITDA profitability. We've proven ability to operate successfully through very challenging headwinds, and I believe we can continue to do so even as we keep an eye on macroeconomic and pandemic-related development. As Lainey will talk about, we're balancing our near-term view with some caution regarding external factors that may impact our business. But more importantly, we remain fully committed to the strategy and business model that has consistently yielded growth and margin expansion over the last two years. So we'll continue to invest responsibly in the technology and products that matter to our customers and deepen our long-term differentiation. But in this environment, that also means being clear-eyed about priorities and execution and being ready to adapt if conditions do change. This is how our team will tackle any challenges ahead, and I'm confident that we're firmly in the driver's seat for long-term success. And now I'll pass the call over to Lanny.