In this photo illustration, the StubHub logo and webpage are displayed on a cell phone and computer monitor on April 17, 2024 in Los Angeles, California.
Mario Tama | Getty Images
StubHub‘s stock plummeted 21% on Friday after the company withheld financial guidance for the current quarter, citing a “long-term” focus.
StubHub CEO Eric Baker told investors on Thursday’s conference call that the timing of when tickets go on sale can shift from quarter to quarter, making it hard to predict consumer demand.
Baker reiterated that demand for live events is “phenomenal,” and added that the company plans to offer an outlook for 2026 when it reports fourth-quarter results.
“This year, we are observing some shifts in the timing of these on-sales,” CFO Connie James told investors on the call. “Several large tours that would typically go on sale in the fourth quarter occurred earlier in late September. It remains to be seen how this concert on-sale timing dynamic plays out in November and December.”
Wedbush analysts said in an investor note on Friday that they were “surprised” by StubHub executives’ decision not to offer any guidance.
“The lack of forward guidance will pressure shares, with investor concern building around lack of visibility over the near-term,” the analysts wrote. They have an outperform rating on StubHub stock.
The lack of guidance overshadowed StubHub’s stronger-than-expected results in its first earnings report as a public company. The company held its initial public offering in September, raising $800 million.
StubHub had a lackluster start to life on the public markets, in contrast to fellow market newcomers like online lender Klarna, design software company Figma and stablecoin issuer Circle, which surged in their debuts.
StubHub’s stock has fallen nearly 37% from its IPO price of $23.50.
Third-quarter revenue grew 8% year over year to $468.1 million, topping the average analyst estimate of $452 million, according to LSEG.
Gross merchandise sales, which represent the total dollar value paid by ticket buyers, jumped 11% year over year to $2.43 billion. That surpassed Wall Street’s expected $2.36 billion, according to FactSet.
The ticket vendor posted a net loss of $1.33 billion, or a loss of $4.27 per share, due to one-time stock-based compensation charges related to its IPO.
StubHub stock one-day chart.
