Last week, the 12 year old company based in San Francisco announced that they are planning to go public. Not only that, they are planning to sell $200 million work of shares at the NYSE.
Since 2016, however, they’ve been losing money, posting $40.4 million in losses that same year, $38.5 million in 2017, and $15.6 million so far in 2018. To try and make that up, the company has arranged a new pricing scheme. People who use the “Essentials” package they offer will see reduced prices, as payment processing fees are going to drop from 3 percent to 2.5 percent. The fees for the tickets are falling as well from .99 cents to .70 cents. Before, they charged 1% of every ticket price as their service fee, but now they will take 2%. The $19.99 fee they used to charge for service will also be removed.
One Eventbrite spokesperson said that the announced changes will translate into lower ticket fees, which will in turn improve the experience for the people that attend the events.
For some time, Eventbrite has been facing a lot of competition, so it is not surprising to see them making these changes. Businesses like Paperless Post and bigger names like Ticketmaster (owner of Live Nation), and social networks like Facebook and Twitter, are amongst the platform’s biggest competitors.
Last July Eventrbrite filed for an IPO. In part through acquisitions, Eventbrite’s revenue has increased from $133 million in 2016 to $201 million last year. They also acquired Ticketfly, which had sold to Pandora in 2015, and Eventbrite was able to buy for a reduced cost.
The company has also acquired International companies as well, like Ticketea, a Spanish ticket company. They also acquired Ticketscript in January of 2017, a company based in Amsterdam. There have been around 6 other deals as well.
According to Crunchbase, the ticketing giant has been able to raise around $330 million from investors, with their biggest shareholders being Tiger Global Management, Sequoia Capital, and T. Rowe Price. These three together own about half of the company’s pre-IPO shares.