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Why Square’s Investors Should Keep a Close Eye on Eventbrite

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Eventbrite is pursuing a $68 billion revenue opportunity

Square (SQ) is a corporate investor in online ticketing company Eventbrite (EB), which went public in September 2018. The online event ticketing industry was valued at $46.59 billion in 2017, and its value is expected to grow to $68 billion by 2025, according to Grand View Research. Eventbrite recorded a revenue rise of 21.1% YoY (year-over-year) to $75.9 million in the fourth quarter.

Eventbrite has stepped up its pursuit of online event ticketing dollars via its launches of localized ticket sale platforms in Singapore and Mexico in recent months. The other big name pursuing online event ticketing dollars is eBay (EBAY), whose ticket sales business, StubHub, recorded a 2.0% YoY increase in revenue to $314 million in the fourth quarter.

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Square recorded a $17 million loss courtesy of its Eventbrite stake

In the third quarter of 2018, Square reported a profit of $20 million thanks to its stake in Eventbrite. In the fourth quarter, Square booked a $17 million loss tied to its stake in Eventbrite as the ticketing company’s shares dipped, leading to a $28 million company-wide loss. PayPal (PYPL), Fiserv (FISV), and First Data Corporation (FDC) reported profits of $584 million, $286 million, and $162 million, respectively, in the fourth quarter.

According to Square, a change of $3 in Eventbrite’s share price affects its EPS by $0.01.

In 2017, Square made an investment of $25 million for a stake in Eventbrite.

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