Lanny Baker: Now that organizer fees that we’re introducing are structured in a way that scales with both the success and the size of the creators and their events, as well as with the value that is provided by Eventbrite. The majority of events and we expect could be as much as 60% of events, both free and paid events, we’ll be able to publish our events and use our tools for free. As creators have success and their events become larger, the value of our marketplace and our tools becomes more relevant, more important to them and we matched the fee structure to that value with a modest scale per event fee to creators. For the most frequent and successful creators, we also have an unlimited event packages that are available on a subscription basis much like Boost and it’s really early days.
We’ll be rolling this out more fully across the quarter — across the marketplace during the third quarter. We’ll update you as we go on and we’ll report back as we learn more. The fees on a per-event basis range from $10 to $50 per event depending on capacity, which based on research that we’ve done, extensive research that we’ve done we believe are very affordable and reasonable for the value that we provide.
Operator: The next question comes from Cameron Mansson-Perrone of Morgan Stanley.
Cameron Mansson-Perrone: I’d love to hear — take rates are already up at 9%. Lanny, I’d love to just get some color from you on whether or not you think there’s room for that to move meaningfully higher? And it seems like we’re still a little early in the kind of rollout in terms of seeing the tailwinds from the price increase kind of gradually roll through, but would love to — any kind of update that you’re willing to provide there. And then really nice sequential growth in paid creators quarter-over-quarter after that was down a tick in 1Q. Would love to hear any color in terms of what you think the drivers of that improvement were?
Lanny Baker: On the take rate, the biggest driver right now year-over-year really is the pricing change on the transaction fees that largely are consumer-related fees that we introduced at the start of this year. And it applied to probably about 70% of our ticket volumes and it was an effective raise of the pricing by about 10%. It’s a fairly modest amount of price change relative to the overall value of the event and to the value of the ticket. But that has gone well, we’ve been pleased with what we’ve seen in the market reaction to the uptake and as I said earlier, that improvement in unit economics helps us go faster and more strongly on the consumer and demand generation side of the business. The uplift from Ads and from our marketing tools has also been meaningful over the last year and it’s probably combined between Boost and Ads.
We’re getting close to a dime per paid ticket. Now that’s a little bit of a mixed calculation because about 20% to 25% of those revenues from Boost and Ads are coming from creators of free events who really value our ability to help them market and promote those events. But overall, it’s an important driver. We’re really early days on the Ads product, as Julia said, it was about $1 million of revenue, little bit over $1 million of revenue in the quarter in a marketplace that did nearly $1 billion of ticket sale transactions. So we believe that there is — as we are continuing our push to drive these marketing demand generation tools, there is quite a bit of value that we’re delivering to customers and that value we deliver turns around to be take rate opportunity and value capture for Eventbrite.
Julia Hartz: And then on the sequential growth in paid creators, we see the fruits of our labor really coming through in this quarter in terms of our targeted marketing and sales campaigns around creator confidence. To step back a bit, self-sign on is 99% of our creators. So that channel where creators are discovering about right through word of mouth, they’re buying tickets to events, they’re discovering Eventbrite through SEO or paid marketing. That’s driving the bulk majority of this growth and that’s great because the gross margins are really strong there. In terms of categories and geographies, we’re seeing business professional grow quite quickly, performing in visual arts as well. And in general, community cultural events as we think communities are coming back out together and really seeking new ways to be together and meet new people.
And then geographies, U.S. total tickets hit a record high in Q2, which is great. Outside of the U.S., Canada grew 25% year-over-year and the U.K. grew 10% year-over-year. So we’re seeing some strength come back in non-U.S. markets, which is promising. So all told, I really want to give credit to the team here. We focus on delivering a message that’s based on event demand generation coming to Eventbrite to reach bigger audiences and really putting proof points in front of our creators through a myriad of different methods that seems to be working well.
Operator: Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.
