StubHub stock drops 24% after company withholds fourth-quarter outlook
In this photo illustration, the StubHub logo and web page are viewed on a mobile phone and computer monitor on April 17, 2024 in Los Angeles, California.
Mario Tama | Getty Images
StubHubIts shares fell 24% on Friday after the company kept its financial guidance for this quarter, citing a “long-term” focus.
StubHub CEO Eric Baker told investors on Thursday’s conference call that the time tickets go on sale can vary from quarter to quarter, making it difficult to predict consumer demand.
Baker reiterated that demand for live events has been “phenomenal” and added that the company plans to provide an outlook for 2026 when announcing fourth-quarter results.
“This year, we’re seeing some changes in the timing of these sales,” CFO Connie James told investors during the call. “Several major tours that would typically go on sale in the fourth quarter occurred in early September. It remains to be seen how this concert discount timing dynamic will play out in November and December.”
Wedbush analysts said in an investor note Friday that they were “surprised” by StubHub executives’ decision not to provide any guidance.
“The lack of forward guidance will weigh on shares, increasing investors’ concerns about the lack of near-term visibility,” analysts wrote. They have outperformed StubHub shares.
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 weak start to life on the public markets, unlike other new entrants to the market such as online lenders Klarnadesign software company figma and stablecoin issuer Apartmenttook off in their debut.
StubHub’s shares are down nearly 40% from their IPO price of $23.50.
According to LSEG, third-quarter revenue rose 8% year over year to $468.1 million, beating the average analyst estimate of $452 million.
Gross merchandise sales, which represent the total dollar value paid by ticket buyers, increased 11% from last year to $2.43 billion. That exceeded the $2.36 billion Wall Street had expected, according to FactSet.
The ticket seller posted a net loss of $1.33 billion, or $4.27 per share, due to one-time stock-based compensation charges related to its IPO.
StubHub stock one day chart.
