Eventbrite Files for IPO, Taking on Live Nation

August 24, 2018

By Bridgette Webb

Online ticketing service Eventbrite has filed to go public in a plan to raise $200 million through its IPO. And for Wall Street Journal reporter Katie Roof, now is the time for other companies to follow suit.

Roof said Friday in an interview on Cheddar the bull market is drawing companies to market. "I think for any company interested in going public, right now would be a good time," she said.

Founded 12 years ago by married couple Julia and Kevin Hartz, Eventbrite offers ticketing services and personalized event invitations.

With its IPO, the company will join a group of tech names that took to the markets this year, including Spotify, Dropbox, and DocuSign.

But it's not necessarily all uphill from here.

Eventbrite faces imposing competition from large ticketing companies like Ticketmaster owner Live Nation and personal invitation platforms like Evite and Paperless Post.

And, of course, there's always a chance that tech heavyweights like Facebook and Google will enter Eventbrite's lane.

Adding to the complexity, Facebook is a key distribution partner for Eventbrite. That actually creates risk, since Facebook has the power to change features that Eventbrite may need for its success. For example, the social media platform recently removed a feature that allowed creators to include multiple hosts on a single event. The decision was a poor one for Eventbrite; fewer hosts means fewer guest invites, limiting the potential revenue that could be brought in.

The company hasn't been profitable yet, but Roof said it's not a deterrent for some investors.

"The revenue is growing, they are on track to hit over $200 million in revenue this year," she said.

"Sometimes Wall Street investors are not so concerned with profitability as long as they see top-line growth."

For full interview click here.