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eventbrite | Confidential & Proprietary Investor Presentation December 2018 investor.eventbrite.com [email protected]

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Page 1: Investor Presentations22.q4cdn.com/238770421/files/doc_presentations/... · 97% 2017 RETENTION RATE(1) 100% SELF-SERVICE PLATFORM $278M TTM NET REVENUE AS OF 9/30/18 ... get selling

eventbrite | Confidential & Proprietary

Investor Presentation

December 2018

[email protected]

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eventbrite | Confidential & Proprietary 2

Legal Disclaimer Regarding Forward Looking Statements

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding the future performance of Eventbrite, Inc. and its consolidated subsidiaries (the “Company”); the Company’s expected financial results for future periods; future growth and growth strategies in the Company’s businesses and products; the expected impact of the Company’s recent acquisitions; expectations regarding the Company’s ability to migrate customers from acquired platforms; the Company’s expectations regarding scale, profitability, market trends, and the demand for or benefits from its products, product features, and services in the U.S. and in international markets; expectations regarding the amortization of the Ticketfly platform; and statements related to business strategy, plans, and objectives for future operations. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “appears,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause the Company’s actual results, performance, or achievements to differ materially from results expressed or implied in this presentation. Investors are cautioned not to place undue reliance on these statements. Actual results could differ materially from those expressed or implied, and reported results should not be considered as an indication of future performance.

The forward-looking statements contained in this presentation are also subject to additional risks, uncertainties and factors, including those more fully described in the Company’s filings with the Securities and Exchange Commission, including the Company’s final prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on September 20, 2018. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that the Company makes with the Securities and Exchange Commission from time to time, including the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018. All forward-looking statements are based on information and estimates available to the Company at the time of this presentation and are not guarantees of future performance. Except as required by law, the Company assumes no obligation to update any of the statements in this presentation.

This presentation includes certain non-GAAP financial measures not based on generally accepted accounting principles. The Company presents non-GAAP financial measures when it believes that the additional information is useful and meaningful to investors. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures used by the Company may differ from the non-GAAP measures used by other companies. See the appendix to this presentation for the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures. This presentation also contains estimates and other information concerning our industry that are based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information.

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eventbrite | Confidential & Proprietary

1. We operate in a large global market that we believe has been historically underserved.

2. We offer a powerful enablement platform to serve our creators' needs.

3. We do this with an efficient business model that has resulted in revenue growth while delivering cash flow.

4. We believe there are many potential levers to drive future growth.

3

Key InvestmentHighlights

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eventbrite | Confidential & Proprietary 4

700K+CREATORS SERVED IN 2017

~203MPAID & FREE TICKETS IN 2017

~3MEVENTS IN 2017

95%+OF CREATORS SELF SIGN-UP

IN 2017

97%2017 RETENTION

RATE(1)

100%SELF-SERVICE

PLATFORM

$278MTTM NET REVENUE AS

OF 9/30/18

($6M)TTM FREE CASH FLOW

AS OF 9/30/18(2)

61%YOY NET REVENUE

GROWTH

SIGNIFICANT GLOBAL SCALE

HIGHLY EFFICIENT GO-TO-MARKET

STRONG GROWTH AND CASH FLOW

(1) To obtain our retention rate, we determine (i) the gross ticket fees generated by all creators in the year prior to the year of measurement (Prior Year Gross Ticket Fees) and (ii) the gross ticket fees those creators generated in the applicable year of measurement (Measurement Year Gross Ticket Fees). We calculate our retention rate for a measurement period by dividing the Measurement Year Gross Ticket Fees by the Prior Year Gross Ticket Fees.(2) Calculated as cash flow from operating activities less purchases of property and equipment and capitalized internal-use software development costs, over a trailing twelve-month period.See appendix for reconciliation of Non-GAAP free cash flow to GAAP equivalents.

Scale Drives Efficient, Strong Financial Results

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eventbrite | Confidential & Proprietary 5

We Serve Mid-Market Creators

STADIUM SCALEEVENTS

PROFESSIONALSPORTS

BLOCKBUSTERCONCERTS

BABY SHOWERS SMALL PERSONALGATHERINGS

BIRTHDAY PARTIES

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eventbrite | Confidential & Proprietary

$14BMARKET

OPPORTUNITY(2)

(1) Based on market data prepared in conjunction with a third party.(2) Calculated by multiplying estimated paid tickets in served markets and categories and other potential markets in 2018 pursuant to footnote 1 by Eventbrite’s net revenue per paid ticket during the 6 month period ended June 30, 2018.

This Is a Large Global Opportunity That We Believe Is Underserved

Served Categories = Festivals, Music, Registration and EnduranceGrowth Categories = Tours & Attractions, Movie Theaters, Performing Arts and Spectator SportsMarkets = United States, Canada, United Kingdom, Ireland, Australia, New Zealand, Netherlands, Germany, Spain, Brazil, Argentina and Mexico

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eventbrite | Confidential & Proprietary 7

These Creators Manage Multiple Work Streams to Run Their Business

CHAD COLLINSFounder @ Open

World Events

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eventbrite | Confidential & Proprietary

The Platform For Any Creator

ACCESS

SERVICE LAYER

Organizer App Consumer App Eventbrite.com Creator Websites

Event Discovery

Email Marketing

Advertising & Promotion

Custom Apps& Operations

Onsite Tools Reporting CRM& Analysis

Orders Events Payments

CORE FEATURES

Security

● Our platform scales with creator needs

● Easy-to-use platform with robust capabilities allowing creators to get selling tickets within minutes

● A broad array of tools to solve creators’ business problems

● Built on a service-oriented architecture that supports secure, native transactions

● 99.99% uptime over the last six years

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eventbrite | Confidential & Proprietary 9

End-to-End Product Solution for Creators

Create Event Event Listing Creator Websites Check In AnalyzeDistribution

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eventbrite | Confidential & Proprietary 10

Consumer Experience

Discover on Eventbrite

Discover on Distribution

Ticket Purchase Post Event EmailFollow Creator

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eventbrite | Confidential & Proprietary 11

Eventbrite’s Core Platform Flexes to Meet Creator Needs

EVENT CREATE & MANAGE

DISCOVERY CHECKOUT REPORTING ONSITE TOOLS

100+ Additional Features

CORE PLATFORM FEATURES

EMAIL MARKETING ADVERTISING & PROMO

CRM & ANALYSIS CUSTOM APPS & OPERATIONS

Modularity

● Core capabilities built as independent components and solutions to allow efficient modifications.

● New capabilities easily added without disturbing the functionality of the existing platform.

● Fuels rapid product development

Extensible

● Our platform extends to integrate third parties, enabling creators to seamlessly access to best-in-class partners.

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eventbrite | Confidential & Proprietary 12

Our Product Is Enhanced by Our Partner Ecosystem Called Spectrum

Advertising & Promotion

CRM & Finance

Distribution Email Marketing

Fundraising Marketing Tools

Mobile Apps & Event Ops

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eventbrite | Confidential & Proprietary

Global Footprint in 170+ Countries in 2017

● Platform enhancements helped drive our revenue from outside of the United States, which grew from 18% to 30% from 2012 to 2017

● Eventbrite is fully localized in 17 countries

● We support 19 payment methods globally

1313eventbrite | Confidential & Proprietary

Eventbrite office locations

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eventbrite | Confidential & Proprietary

Eventbrite Music Exemplifies Platform Modularity

● In November 2018, we launched Eventbrite Music

● Build upon our single platform, this roll out includes 10+ new features for music creators

● Benefits include:

○ Enhanced marketing and distribution capabilities

○ Streamlined checkout experience

○ Mobile-first technology

○ Experienced team dedicated to the music industry

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eventbrite | Confidential & Proprietary 15

Solutions Tailored To Creators Needs

*Payment processing of 2.5%. Note: United States pricing as of November 2018.

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eventbrite | Confidential & Proprietary 16

Creator Success Stories

OPEN WORLD EVENTSChad Collins - Founder

Joined Eventbrite in June 2013 and has scaled to over 250K tickets on our platform, a 61% CAGR. They rely on the Eventbrite Organizer App to get real-time insights on past and future events.

SEA CREATURESNaz Kabir - Managing Director & Lead Producer

Joined Eventbrite in March 2018 after using the product in a previous role. Sea Creatures has over 75 events in 2018 in three cities. They quickly integrated with eight Spectrum partners to enhance their experience.

PIANO FIGHTDan Williams, Duncan Wold, Kevin Find, Rob Ready - Founders

Joined Eventbrite in December 2014 and has scaled to over 130K tickets on our platform, a 149% CAGR. They report saving up to 40 hours a week with our open API.

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eventbrite | Confidential & Proprietary

1. We empower creators’ success by streamlining their user experience, allowing them to easily sign themselves up and begin creating their events without training.

2. Our powerful platform has integrated the components needed to seamlessly plan, promote and produce live events, reducing friction and costs, and allowing creators to focus their energy on producing successful events.

3. Our platform offers creators compelling, real-time analytics about multiple dimensions of an event, allowing them to make decisions that directly impact attendance, revenue, profitability and attendee experience.

4. Through our quick and secure registration and payments processing capabilities, attendees have come to trust the Eventbrite purchase experience.

5. Creators benefit from our platform’s global consumer audience, global search engine prominence and deep integrations with over 50 global distribution partners.

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We Succeed When OurCreatorsSucceed

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eventbrite | Confidential & Proprietary 18

EFFICIENT CREATOR ACQUISITION

COST ADVANTAGE IN OPERATIONS

POWERFULRETENTION

LOTS OF WAYS TO GROW

Our Business Model

(1) To obtain our retention rate, we determine (i) the gross ticket fees generated by all creators in the year prior to the year of measurement (Prior Year Gross Ticket Fees) and (ii) the gross ticket fees those creators generated in the applicable year of measurement (Measurement Year Gross Ticket Fees). We calculate our retention rate for a measurement year by dividing the Measurement Year Gross Ticket Fees by the Prior Year Gross Ticket Fees. We calculate retention rate on an annual basis only.

Our seamless user experience attracts creators to our platform organically, with over 95% of creators signing themselves

up for Eventbrite in 2017.

Our highly-automated, cloud-based platform allows us to manage our

operating and support costs, freeing up capital and other resources to dedicate to enhancing our platform and growing our

business.

When creators enjoy success on Eventbrite, they continue to use our

platform. In 2017, our retention rate was 97%.(1)

We believe there are many opportunities for growth in the fragmented event management market, and we have designed our business model and

platform to take advantage of these opportunities by ensuring we can support the addition of new event categories and

countries for ticketing, as well as new revenue-generating solutions beyond

ticketing.

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eventbrite | Confidential & Proprietary

COUNTRIES CATEGORIES COMPLEMENTARY SERVICES CONSUMER

NEAR TERM INTERMEDIATE TERM LONG TERM

We plan to expand into new countries and categories.

We intend to develop complementary services for

creators, pulling new capabilities onto our technical platform.

We plan to empower our global audience of ticket buyers by

introducing relevant products and services.

Future Growth Levers

eventbrite | Confidential & Proprietary 19

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eventbrite | Confidential & Proprietary 20

Scale and Efficiency Fuels Our Growth

MORE EVENTSThese creators then grow their businesses,

adding more events over time.

MORE ATTENDEESThese creators attract attendees to their events,

creating a large, engaged global audience.

PLATFORM INTELLIGENCE AND LEARNINGWe learn from this activity, allowing us to

target new product development in a way that maximizes future growth.

EFFICIENT CREATOR ACQUISITIONWe efficiently acquire creators across our self

sign-on and sales channels.

GREATER PLATFORM AWARENESSCreators, events and attendees all increase

awareness of our platform.

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eventbrite | Confidential & Proprietary 21

Financial Highlights

Net Revenue Adjusted EBITDA(1)

(1) Calculated as net loss plus depreciation and amortization, stock-based compensation, interest expense, change in fair value of redeemable convertible preferred stock warrant liability, gain on extinguishment of promissory note, direct and indirect acquisition related costs, other income (expense), net and income tax provision (benefit), over net revenue.See appendix for reconciliation of Non-GAAP adjusted EBITDA to the most directly comparable GAAP financial measure.

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eventbrite | Confidential & Proprietary 22

Financial Highlights

Net Revenue Adjusted EBITDA(1)

(1) Calculated as net loss plus depreciation and amortization, stock-based compensation, interest expense, change in fair value of redeemable convertible preferred stock warrant liability, gain on extinguishment of promissory note, direct and indirect acquisition related costs, other income (expense), net and income tax provision (benefit), over net revenue.See appendix for reconciliation of Non-GAAP adjusted EBITDA to the most directly comparable GAAP financial measure.

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eventbrite | Confidential & Proprietary

Fueled by a Global Workforce

14global Britelings

1,000+ 5offices creative hubs

eventbrite | Confidential & Proprietary 23

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eventbrite | Confidential & Proprietary

Appendix

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eventbrite | Confidential & Proprietary

Adjusted EBITDA Reconciliation

In thousands Q3 ‘17 Q4 ‘17 Q1 ‘18 Q2 ‘18 Q3 ‘18

Net income (loss) ($11,857) ($18,344) $9,023 ($24,603) ($35,516)

Add:

Depreciation and amortization 5,090 8,367 8,202 8,580 8,830

Stock-based compensation 1,946 5,151 2,860 5,248 15,049

Interest expense 1,674 2,830 2,372 3,190 3,300

Change in fair value of redeemable convertible

preferred stock warrant liability1,404 796 1,321 4,750 3,520

Gain on extinguishment of promissory note - - (16,340) - 17,173

Direct and indirect acquisition related costs(1) 4,406 606 823 622 389

Other income (expense), net ($1,606) 1 163 3,013 (1,414)

Income tax provision (benefit) ($40) 82 370 430 (117)

Adjusted EBITDA $1,017 ($511) $8,794 $1,230 $11,214

25(1) Direct and indirect acquisition-related costs consist primarily of transaction and transition related fees and expenses, including legal, accounting, tax and other professional fees as well as personnel-related costs such as severance and retention bonuses for completed, pending and attempted acquisitions.

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eventbrite | Confidential & Proprietary

Adjusted EBITDA Reconciliation

Year Ended December 31

In thousands 2016 2017

Net income (loss) ($40,392) ($38,547)

Add:

Depreciation and amortization 7,639 19,418

Stock-based compensation 8,531 10,858

Interest expense 3,513 6,462

Change in fair value of redeemable convertible

preferred stock warrant liability- 2,200

Gain on extinguishment of promissory note - -

Direct and indirect acquisition related costs(1) 1,292 7,337

Other income (expense), net 1,695 (3,509)

Income tax provision (benefit) 131 (13)

Adjusted EBITDA ($17,591) $4,206

26(1) Direct and indirect acquisition-related costs consist primarily of transaction and transition related fees and expenses, including legal, accounting, tax and other professional fees as well as personnel-related costs such as severance and retention bonuses for completed, pending and attempted acquisitions.

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eventbrite | Confidential & Proprietary

Free Cash Flow Reconciliation

Twelve Months Ended December 31 Twelve Months Ended September 30

In thousands 2016 2017 2017 2018

Net cash provided by operating activities $2,785 $29,821 $42,794 $6,148

Less:

Purchases of property and equipment and

capitalized internal-use software development

costs

(8,466) (8,678) (8,414) (12,369)

Free cash flow ($5,681) $21,143 $34,380 ($6,221)

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