Eventbrite, Inc. (NYSE:EB) Q4 2023 Earnings Call Transcript

Hamed Khorsand: Just a couple for me. One is, why is product development costs still rising if you’ve gone to lower cost markets as far as development goes? And the second is, on the last earnings call, you had made comments about churn — not seeing churn or churn not being elevated and then this the theme of this call is that there was churn as far as organizers are concerned. And I’m just wondering how far along are you from the learning curve as to why those organizers left and how you’re going about to get them back and the competitive nature of the landscape as far as these prices go, these costs are concerned so that this doesn’t happen when you go into your peak moment of the year.

Lanny Baker: Sure. On product development costs, we’re continuing to invest in the consumer side of our product experience, particularly our mobile app, the personalization, search, discovery, leveraging the data to bring to life a consumer experience that’s really rich. Our mobile app users today are a little bit more than 10% of the total monthly usage. And we think there’s a lot of room to drive that up, and we’re excited to do that because the users of the mobile app typically purchase 30% to 35% more tickets in the period. It’s a superior experience. It’s the way — it’s where Gen Z and Millennials and Gen X are and we’re driving folks in that direction with our product investment. So, we are investing more on the consumer product experience, and we’ll continue to do that because we think it drives repeat purchase volume.

It drives consumer loyalty. It drives demand generation. And ultimately, those are the things that creators most want when they’re looking for a partner like we want to be for them. As we look at the impact of the organizer fees, as we come in to the — into the start of this year, recently, we’ve seen more impact from the organizer fees. And that’s been included and reflected in our outlook. I think you’ll see paid ticket volume be down in the probably high single digits in the first quarter of this year from where it was down about 4% in the prior quarter, and we’ll begin recovery from that point. So, I think we have a pretty good sense of understanding what the issues have been. You can imagine that we’re doing surveys and focus groups and research on that and have a pretty good beat on the things that we need to do to adjust.

I described some of them earlier, and we’ll be executing on those.

Operator: There are no further questions at this time. Ladies and gentlemen, this concludes today’s conference call. Thank you for joining. You may now disconnect.