Eventbrite, Inc. (EB) Earnings Call Transcript & Summary

Good morning. It is now 8:00 a.m. Pacific Time, and I call this meeting to order. Welcome to the 2020 Annual Meeting of Stockholders of Eventbrite. I'm Julia Hartz, Co-Founder, CEO and a member of the Board of Directors of the company and I will be presiding as Chair of the Meeting. Samantha Harnett, who is the Chief Legal and Operations Officer of the company will act as Secretary of the Meeting. First, we will have the formal annual meeting. Please be aware that we have opened the online portal for anyone to ask questions while the meeting is in progress. We will address the questions at the end of the formal meeting. Before we dive in, I'd like to take a few minutes to recognize how dramatically different the world is since we last held this meeting. COVID-19 has affected everyone and has put many businesses on pause. This is especially true for live events where social distancing mandates have curtailed almost all in-person gatherings for the time being. Within days of observing the impact, our team mobilized quickly to address the most urgent needs of our creators. We launched COVID-19 and Small Business Resource Hub for our global community. We integrated with third-party providers so that our creators could offer gift cards as refund alternatives, collecting kind donations by fans and launch crowdfunding campaigns to support their staff. And we followed our customers' lead and made enhancements to our existing online events functionality, which resulted in over 8 million ticket transactions in April. We also moved decisively to ensure the long-term financial foundation of our business, including an expense reduction program expected to deliver at least $100 million in annualized savings and a financing deal with Francisco Partners that secures our company's access of up to $225 million in flexible financing. With bold action to assist our creators, serve attendees and strengthen our financial wherewithal, we plan to execute on a near and long-term strategy to emerge from this crisis in a position of even greater leadership. Now I would like to introduce the other directors of the company who are in attendance: Kevin Hartz, our Chairman of the Board; Katherine August-deWilde, Roelof Botha, Jane Lauder, Sean Moriarty, Lorrie Norrington; Helen Riley; and Steffan Tomlinson. And the executive officers of the company who are in attendance: Lanny Baker, our Chief Financial Officer; Samantha Harnett, our Chief Legal and Operations Officer and Corporate Secretary. Now I would like to introduce Kathleen Wells of Latham & Watkins, legal counsel to the company; and Danny Wallace of PricewaterhouseCoopers who are here today and who will be available to respond to appropriate questions following the meeting. The purposes of this meeting are to elect 3 Class II directors to hold office until the 2023 annual meeting of stockholders or until their successors are elected and qualified; to ratify and approve the appointment of PricewaterhouseCoopers as the company's independent registered public accounting firm for the fiscal year ending December 31, 2020; to approve a nonbinding advisory vote on the frequency of future stockholder advisory votes to approve the compensation of our named executive officers; and finally, to transact such other business as may properly come before the annual meeting or at any adjournments, continuations or postponements of the annual meeting. If you have already turned in a proxy and will not be changing your vote, then you do not need to vote again. The vote indicated on your proxy will be counted. If you did not turn in a proxy or want to change your previous vote, you can submit or change your vote by voting through the meeting portal during this meeting. To vote, please follow the instructions provided on the online portal for the meeting. Each of you has received a copy of the notice of annual meeting and the proxy statement for this meeting, which were made available via the Internet at www.proxyvote.com on or about April 7, 2020, to all stockholders of record at the close of business on March 23, 2020. I will ask the secretary to file a copy of the Notice of Annual Meeting with the minutes of the meeting along with an affidavit that it has been made available to all stockholders. I will also ask the Secretary to file the list of stockholders with the minutes of the meeting. In voting on the matters presented at this meeting, no one accept a stockholder of record of the company as of March 23, 2020, or a person holding a duly executed proxy of such a stockholder may vote on matters presented at the meeting. Will the Secretary please report the number of shares of Class A common stock and Class B common stock entitled to vote and represented at this meeting in attendance and by proxy.

A majority of the voting power of the shares of Class A common stock and Class B common stock issued and outstanding and entitled to vote at this meeting are present, either in attendance or by proxy. A quorum is present.

Because notice was duly given and a quorum is present, the meeting is ready for business and the polls for each matter to be voted upon at this annual meeting are now open. Kristina Veaco of the Veaco Group is in attendance and has been appointed to act as Inspector of Election. Ms. Veaco has signed an oath of office, promising to execute faithfully the duties of Inspector of Election. The oath will be filed with the minutes of this meeting. After we have voted on all matters subject to vote, Ms. Veaco will tabulate the votes and determine the results of voting. The first order of business is the election of 3 Class II directors for a 3-year term expiring in 2023. The Board of Director nominees are Katherine August-deWilde, Julia Hartz and Helen Riley. The Board recommends a vote for each of the nominees. Those who wish to change their vote and anyone voting on this meeting on the election of directors are requested to indicate the manner in which you wish to vote. If you have questions or comments on the proposals, please post them now. The second order of business is the ratification of the appointment of PricewaterhouseCoopers as the company's independent auditors for the fiscal year ending December 31, 2020. The Board of Directors of the company recommends a vote for the ratification of PricewaterhouseCoopers. If you have questions or comments on the proposals, please post them now. The third order of business is the approval of a nonbinding advisory vote on the frequency of future stockholder advisory votes to approve the compensation of our named executive officers. The Board of Directors of the company recommends a vote to hold future advisory votes on named executive officer compensation every 1 year. If you have questions or comments on the proposals, please post them now. The polls will close shortly, so if you intend to vote, please do so now. [Voting]

It is now 8:08 a.m. Pacific Time and the polls are closed. The Secretary now has the report of the Inspector of Election on the results of the voting. Would the secretary please report on the results of the voting?

Ms. Chair and stockholders, the preliminary results based on the report of the Inspector of the Election show that the 3 Class II Director Nominees, Katherine August-deWilde, Julia Hartz and Helen Riley have been elected. The appointment of PricewaterhouseCoopers as independent registered public accounting firm has been ratified. And the nonbinding advisory vote on the frequency of future stockholder advisory votes to approve the compensation of our named executive officers every 1 year has been approved. That concludes the report of preliminary voting results. The final results will be available for all stockholders on a Form 8-K to be filed with the SEC within 4 business days.

The report of the Inspector of Election will be filed as a part of the minutes of this meeting. At this point, I will pause to answer questions that may have been submitted by our stockholders via the online portal. Will the Secretary please advise if we have any questions?

We have no questions.

There being no further business to be properly brought before this annual meeting, I will entertain a motion of adjournment.

I so move.

Is there a second?

I second.

It has been moved and seconded that the meeting be adjourned. All in favor, signify by saying aye.

Aye.

Aye.

I hereby declare this meeting adjourned. Thank you.