Stubhub: “The demand for live events is girthy af…”

Analysts: “Great, so what about the guidance?”

Stubhub: 

(Source: Giphy) 

Stubhub finally went public… and immediately decided it was above accountability. Everything was going great on its first earnings call as a newly minted public company: it beat revenue expectations, bragged about “phenomenal” demand, and strutted like the overpriced ticket grifter it is. Then, mid-fist pumping, CEO Eric Baker dropped this gem: “We’re not giving guidance for the current quarter.”

(Source: Giphy) 

Aaaand just like that, the stock was yeeted into the abyss. Down nearly 23% after hours and are now being resold on eBay for emotional support LOL.Translation: “Trust us, bro” doesn’t bode well with investors. 

So with that, let’s run the numbers since Stubhub won’t. For starters, revenue came in at $468.1 million, beating expectations of $452 million, up 8% year-over-year. Gross merchandise sales (that’s total ticket value sold) hit $2.43 billion, up 11%, or 24% if you strip out last year’s Taylor Swift inflation bubble. However, below the line… absolute carnage. StubHub posted a net loss of $1.33 billion, or -$4.27 per share, thanks to a “one-time” $1.4 billion stock-based compensation charge. Which basically meant they paid their executives like it was a Saudi Oil IPO. Compare that to last year’s loss of $45.9 million and you start to wonder if the accountants were running a side hustle on the resale market. Probably.

(Source: CNBC) 

But alas, this is all apart of “Long-term focus” per Baker. He told investors that ticket sale timing makes quarterly forecasts “difficult.” Maybe, but so does having a billion-dollar hole in your P&L. StubHub promises it’ll give a 2026 outlook next quarter…  because when you’re losing billions, the best time to talk about the future is after the next earnings disaster. The only thing going for Stubhub is the legit strong demand of events. People are still shelling out stupid money to see Taylor Swift, Morgan Wallen, and anyone else who can fill a stadium. But somehow, the company that literally taxes those people at checkout can’t figure out how to project revenue three months ahead. Sus, much? 

(Source: Giphy) 

Meanwhile, Vivid Seats, SeatGeek, and Live Nation are quietly laughing, mostly because for once, they’re not the villains. So yeah… wild and catastrophic day for Stubhub. And right now, the only thing StubHub has successfully resold is its own credibility. Meaning, keep your eyes on Stubhub going forward and place your BTFD bets accordingly. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.