It’s always risky to read too much in to the ‘pop’ of a company’s shares on the day it goes public, although if they sink below their initial price, that’s definitely not a good sign.
Ticketing firm Eventbrite’s executives will be breathing a sigh of relief, then: its first day of trading as a public company went well. Surprisingly well, in fact: Shares opened at $36 but ended the day at $36.50 – having been originally priced at $23. That’s a 59% rise, which suggests Wall Street confidence in Eventbrite’s business. This, despite its IPO filing making clear that the business has yet to move out of the red: in 2017 its revenues were $201.6m (up 51% year-on-year) but it recorded a net loss of $40.4m. Still, investors like what they see. “I think the appetite for a platform like Eventbrite that serves the mid-market of events, ticketing 3 million events last year, is something that’s quite rare and I think the appetite is reaffirming for us that we have a strong business and decades more to go,” said CEO Julia Hartz yesterday.