© 2013 Karthik Ethirajan, all rights reserved

Events Market Opportunity Karthik Ethirajan October 2013

© 2013 Karthik Ethirajan, all rights reserved 2

Events space has 4 addressable segments with a total

TAM of $4.9B, some growing faster than others

Mainstream Events

Local Events

Secondary Market

Lead Generation

Events Market

Segments

Description

TAM*

Business Model

Value Proposition

Market Players

Includes mainly music concerts & sporting events

TAM $3.4B CAGR ~10% Ave ticket price $63

Ticket sales commission (typically ~20%), online ads, promo at venues

Ticketing, Event marketing, Social integration

Includes local events, conventions & conferences

TAM $0.5B CAGR ~20-30% Ave ticket price $17

Ticket sales commission (typically ~10%), online ads

Ticketing, Event management, Social integration

Marketplace for peer to peer ticket sales

TAM $1B CAGR ~15% Ave ticket price $39

Ticket buyer/seller fees (typically ~27%), online ads

Re-ticketing, Social integration

Direct marketing & lead generation services

TAM <$0.1B

Marketing fees based on reach, online ads

Event aggregator (redirects traffic to source websites)

* Detailed TAM calculations can be found in Appendix

© 2013 Karthik Ethirajan, all rights reserved 3

Among the Events market sub-segments, Local Events

presents the best opportunity for near term engagement

Mainstream Events

Local Events

Secondary Market

Lead Generation

Events Market

Segments

Pros

Cons

Lucrative market with high margins

One partnership (say, with the top player) can cover most of the market

High growth space (dubbed as “social commerce”) with many new niches

Lead players have established distribution models

One or two partnerships can cover significant portion of the market

Drives user engagement

Top players may not be interested in outside distribution

App requires highly customized features such as interactive seat map and fan review integration

Not as lucrative as the mainstream events

With dynamic data, server performance may be a factor

Requires many of the custom features noted for a mainstream events app

Poor monetization potential

© 2013 Karthik Ethirajan, all rights reserved 4

A lead player in the fast growing local events

market with an established model for distribution

partnerships

Sprint Impact

• A distribution partnership can help bolster Eureka Events app to be able to provide local events

listings nationwide

Contact

Value Proposition

• Provides events sponsors with ticketing and event management capabilities

• Caters to local events as well as professional events such as conferences & conventions

Company & Products

• Active M&A. Acquired Lanyrd (provider of social directory of conferences & professional events)

and Eventioz (LatAm ticketing service)

• Products help with event creation, promotion, invitation, attendance reports, ticket sales, event

organization and social integration

Business Model

• No charge for free events to use Evenbrite services

• Revenue from ticketing fee (Per ticket: $0.99 + 2.5% + 3% for credit card processing). For

example, a $100 ticket bought online will incur $6.50 in ticketing fee.

• Has more than a dozen distribution partners listed on its website

Technology

• Provides an app to manage check-ins, ticket sales at-the-door, etc. during the event

• Event sponsors have a self-serve portal to create and manage events

• Developer APIs published online

Interest

Level

Key Stats

Founded 2007

211 employees

San Francisco HQ

$54M in 2012 revenue

Series E funded (Total $140M)

Ave. ticket price $16.67

Ave. ticketing fee ~9%

136M tickets sold since start

generating $2B in gross ticket

sales

36M tickets sold in 2012

generated $600M in gross ticket

sales

20% of 2011 revenue is

international

HIGH

Events

Type Local

Source: Eventbrite website, Wiki, Eventbrite blogs, Pinsight analysis

APPENDIX

© 2013 Karthik Ethirajan, all rights reserved 5

• Ticketmaster had $8.9B revenue in 2008, 83% market share and sold 141M tickets

• Ticket fee averaged ~20%

• Assume CAGR ~10%

• Average ticket price = $8.9B / 141M = $63

• TAM = ($8.9B / 83%) x 20% x (1+10%)^5 years = $3.4B in 2013

• Source: Wiki, http://www.mtv.com/news/articles/1630487/live-nation-ticketmaster-merger-gets-

approval.jhtml

• Eventbrite sold 36M tickets in 2012 generating $600M in gross ticket sales

• Average ticket price = $600M / 36M = $16.67

• 2012 revenue = ($0.99 + $16.67 x 2.5%) x 36M = $54M

• Assume 10% market share

• TAM = $54M / 10% = $540M

• Source: Eventbrite website, Wiki, Eventbrite blogs, Forbes

• Stubhub processes 1 ticket every second which equates to 31M tickets in a year

• Stubhub had $325M revenue in 2010

• Assume CAGR ~ 15%

• Ticket fee for buyers is 15% and sellers is 12%

• Assume 50% market share

• Average ticket price = [$325 / (15%+12%)] / 31M = $39

• TAM = ($325 / 50%) x (1+ 15%)^3 years = $988M

• Source: Wiki, Stubhub website, Forbes

TAM Calculations

Secondary Market TAM

Local Events TAM

Mainstream Events TAM

APPENDIX