StubHub, a leading ticket resale marketplace, has officially filed for an initial public offering as per an SEC filing on Friday. The company is seeking a listing on the NYSE under the symbol “STUB,” although the exact number of shares to be sold has not been disclosed. In the S-1 filing reviewed by The Hollywood Reporter, StubHub reported a net loss of $2.8 million last year on $1.77 billion in revenue, contrasting with a profit of over $405 million in 2023 on $1.37 billion in revenue.
Founded 25 years ago by CEO Eric Baker, StubHub was acquired by eBay in 2007 before being bought by Viagogo in 2019. Viagogo’s purchase of StubHub reunited Baker with his original company. StubHub, which has been rumored to launch an IPO for some time, revealed that it facilitated the sale of over 40 million tickets last year from a million unique sellers.
The core of StubHub’s business model revolves around facilitating the resale of tickets for various live events such as concerts and sporting events. The company earns revenue primarily through fees collected from transactions on its platform, which are determined based on the ticket price. StubHub’s financial performance is heavily reliant on demand, as demonstrated by the substantial increase in gross merchandise during Taylor Swift’s Eras tour in 2023.
While the market for concert tickets has faced criticism from fans regarding fees and scalpers, StubHub has faced legal challenges over pricing tactics. Despite these issues, sales for top artists’ tours have remained robust in recent years. The company anticipates that consumers will continue to prioritize live events over products, leading to sustained demand for its services.
In its filing, StubHub expressed confidence in the enduring appeal of live events and collective experiences in fostering human connections. The company expects this trend to drive ongoing demand for live event tickets in the future.
Source link
