Overview and Basis of Presentation

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

Eventbrite, Inc. (Eventbrite or the Company) connects event creators - the people who bring others together to share their passions, artistry and causes through live experiences - with their audiences. Through the Company’s highly-scalable self-service platform, Eventbrite enables event creators to plan, promote and sell tickets to their events. Eventbrite’s consumer-facing experiences enable event seekers to find experiences they love and serve as a demand generating engine for event creators. Eventbrite is focused on delivering products that enable creators to grow their audience reach and generate demand for their events, and is investing in an enhanced event discovery experience for consumers. As more creators and consumers view Eventbrite as a trusted place for live events, the Company believes it can drive more ticket sales and enhance its market position as a leading live events marketplace.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and the applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal and recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations and cash flows for the interim periods. The condensed consolidated balance sheet at December 31, 2022 has been derived from audited consolidated financial statements as of that date. All intercompany transactions and balances have been eliminated. The interim results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any other future annual or interim period.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Form 10-K).

Revision of Previously Issued Unaudited Condensed Consolidated Financial Statements

The Company identified an error within the unaudited condensed consolidated statement of cash flows for the three months ended March 31, 2022 primarily related to cash balances held on behalf of creators that are denominated in currencies other than the functional currency. The effect of exchange rate changes on these cash balances were not disclosed as a separate item in the reconciliation of beginning and ending balances of cash. Additionally, the unrealized foreign currency transaction gains and losses were not disclosed as a reconciliation item in the cash flow from operating activities. The unaudited condensed consolidated financial statements for the three months ended March 31, 2022 have been revised to correct for the error, which was immaterial. This revision had no impact on the Company's previously reported consolidated net income, financial position, net change in cash, cash equivalents, and restricted cash, or total cash, cash equivalents, and restricted cash as reported on the Company's consolidated statements of cash flows.

The following table summarizes the impact of the adjustments for the period presented:


	Three Months Ended March 31, 2022
	As Reported		Adjustments		As Revised
Net cash provided by operating activities	$	76,219	$	1,235	$	77,454
Net cash used in investing activities	(831)		—		(831)
Net cash used in financing activities	(278)		—		(278)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—		(1,235)		(1,235)
Change in cash and cash equivalents	$	75,110	$	—	$	75,110

Significant Accounting Policies

There have been no changes to our significant accounting policies described in our 2022 Form 10-K that have had a material impact on our unaudited condensed consolidated financial statements and related notes.

Use of Estimates

In order to conform with U.S. GAAP, the Company is required to make certain estimates, judgments and assumptions when preparing its consolidated financial statements. These estimates, judgments and assumptions affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods. These estimates include, but are not limited to, the recoverability of creator signing fees and creator advances, chargebacks and refunds reserve, certain assumptions used in the valuation of equity awards, assumptions used in determining the fair value of business combinations, the allowance for credit losses, and indirect tax reserves. The Company evaluates these estimates on an ongoing basis. Actual results could differ from those estimates and such differences could be material to the Company’s consolidated financial statements.

Comprehensive Loss

For all periods presented, comprehensive loss equaled net loss. Therefore, the condensed consolidated statements of comprehensive loss have been omitted from the unaudited condensed consolidated financial statements.

Segment Information

The Company’s Chief Executive Officer (CEO) is the chief operating decision maker. The Company's CEO reviews discrete financial information presented on a consolidated basis for purposes of allocating resources and evaluating the Company’s financial performance. Accordingly, the Company has determined that it operates as a single operating segment and has one reportable segment.