Ticket salesman Eventbrite went to the fair yesterday, and with success. The company raised $230 million and initially sold shares for $23 each. In the meantime, they rose 65% in value to 38 dollars and now the price has fallen to 36.50 dollars per share.
This means that the IPO of Eventbrite can be called successful. The company sold ten million shares, after investors valued the company at $1.76 billion. Originally it was the intention to ask between 19 and 21 dollars per share, but due to the positive reactions, that amount was increased.
Paying off debts
Last month Eventbrite submitted the papers to make the IPO official. It read that the company will invest part of the profit it has now made in paying off outstanding debts. The company has a total debt of 66 million dollars and has not yet made a profit. This is because it has recently given priority to growth and considers turnover to be more important than profit.
Last year, Eventbrite saw its sales grow by 51 percent to around 201.6 million dollars. But at the same time it also had to write a loss of 38.6 million dollars in the books. Eventbrite’s money is earned by selling tickets through his platform. Last year, it issued 201 million tickets to 3 million events. 46.7 million of those tickets were actually sold.
Not only does Eventbrite process payments for the organization of various events, it also provides marketing tools and other important resources for organizers. Eventbrite also focuses on smaller events, where competitor Ticketmaster has focused on large music festivals and other large-scale events. Eventbrite also competes with several very focused startups.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.