Q1FALSE2024--12-310001475115P5DP5D00014751152024-01-012024-03-310001475115us-gaap:CommonClassAMember2024-04-25xbrli:shares0001475115us-gaap:CommonClassBMember2024-04-2500014751152024-03-31iso4217:USD00014751152023-12-31iso4217:USDxbrli:shares00014751152023-01-012023-03-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-12-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-12-310001475115us-gaap:TreasuryStockCommonMember2023-12-310001475115us-gaap:AdditionalPaidInCapitalMember2023-12-310001475115us-gaap:RetainedEarningsMember2023-12-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-01-012024-03-310001475115us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001475115us-gaap:TreasuryStockCommonMember2024-01-012024-03-310001475115us-gaap:RetainedEarningsMember2024-01-012024-03-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2024-03-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2024-03-310001475115us-gaap:TreasuryStockCommonMember2024-03-310001475115us-gaap:AdditionalPaidInCapitalMember2024-03-310001475115us-gaap:RetainedEarningsMember2024-03-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2022-12-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2022-12-310001475115us-gaap:AdditionalPaidInCapitalMember2022-12-310001475115us-gaap:RetainedEarningsMember2022-12-3100014751152022-12-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-01-012023-03-310001475115us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001475115us-gaap:RetainedEarningsMember2023-01-012023-03-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-03-310001475115us-gaap:CommonStockMemberus-gaap:CommonClassBMember2023-03-310001475115us-gaap:TreasuryStockCommonMember2023-03-310001475115us-gaap:AdditionalPaidInCapitalMember2023-03-310001475115us-gaap:RetainedEarningsMember2023-03-3100014751152023-03-31eb:segment0001475115us-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2024-01-012024-03-310001475115eb:ProductDevelopmentMemberus-gaap:EmployeeSeveranceMember2024-01-012024-03-310001475115us-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:EmployeeSeveranceMember2024-01-012024-03-310001475115us-gaap:EmployeeSeveranceMember2024-01-012024-03-310001475115us-gaap:EmployeeSeveranceMember2024-03-310001475115us-gaap:ContractTerminationMember2024-03-3100014751152023-01-012023-12-310001475115eb:CreatorCashMember2024-03-310001475115eb:CreatorCashMember2023-12-310001475115us-gaap:DepositsMemberus-gaap:CashEquivalentsMember2024-03-310001475115us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2024-03-310001475115us-gaap:DepositsMemberus-gaap:CashEquivalentsMember2023-12-310001475115us-gaap:ShortTermInvestmentsMemberus-gaap:USTreasurySecuritiesMember2023-12-310001475115eb:TicketsSoldOnBehalfOfCreatorsMember2024-03-310001475115eb:TicketsSoldOnBehalfOfCreatorsMember2023-12-310001475115us-gaap:SoftwareDevelopmentMember2024-03-310001475115us-gaap:SoftwareDevelopmentMember2023-12-310001475115us-gaap:FurnitureAndFixturesMember2024-03-310001475115us-gaap:FurnitureAndFixturesMember2023-12-310001475115us-gaap:ComputerEquipmentMember2024-03-310001475115us-gaap:ComputerEquipmentMember2023-12-310001475115us-gaap:LeaseholdImprovementsMember2024-03-310001475115us-gaap:LeaseholdImprovementsMember2023-12-31xbrli:pure0001475115us-gaap:DevelopedTechnologyRightsMember2024-03-310001475115us-gaap:DevelopedTechnologyRightsMember2023-12-310001475115us-gaap:CustomerRelationshipsMember2024-03-310001475115us-gaap:CustomerRelationshipsMember2023-12-310001475115us-gaap:TradeNamesMember2024-03-310001475115us-gaap:TradeNamesMember2023-12-310001475115us-gaap:CostOfSalesMember2024-01-012024-03-310001475115us-gaap:CostOfSalesMember2023-01-012023-03-310001475115us-gaap:SellingAndMarketingExpenseMember2024-01-012024-03-310001475115us-gaap:SellingAndMarketingExpenseMember2023-01-012023-03-310001475115us-gaap:ConvertibleDebtMembereb:A75ConvertibleSeniorNotesDue20262026NotesMember2024-03-310001475115us-gaap:ConvertibleDebtMembereb:A50ConvertibleSeniorNotesDue20252025NotesMember2024-03-310001475115us-gaap:ConvertibleDebtMembereb:A75ConvertibleSeniorNotesDue20262026NotesMember2023-12-310001475115us-gaap:ConvertibleDebtMembereb:A50ConvertibleSeniorNotesDue20252025NotesMember2023-12-310001475115us-gaap:ConvertibleDebtMembereb:A75ConvertibleSeniorNotesDue20262026NotesMember2021-03-310001475115us-gaap:ConvertibleDebtMembereb:A50ConvertibleSeniorNotesDue20252025NotesMember2020-06-300001475115us-gaap:ConvertibleDebtMembereb:A75ConvertibleSeniorNotesDue20262026NotesMember2023-03-310001475115us-gaap:ConvertibleDebtMembereb:A75ConvertibleSeniorNotesDue20262026NotesMember2024-01-012024-03-310001475115us-gaap:ConvertibleDebtMembereb:A75ConvertibleSeniorNotesDue20262026NotesMember2023-01-012023-03-310001475115us-gaap:ConvertibleDebtMembereb:A50ConvertibleSeniorNotesDue20252025NotesMember2024-01-012024-03-310001475115us-gaap:ConvertibleDebtMembereb:A50ConvertibleSeniorNotesDue20252025NotesMember2023-01-012023-03-310001475115us-gaap:ConvertibleDebtMembereb:A50ConvertibleSeniorNotesDue20252025NotesMemberus-gaap:FairValueInputsLevel2Member2024-03-310001475115eb:MRGConcertsLtdMRGAndMatthewGibbonsGibbonsMember2022-05-232022-05-230001475115eb:MRGConcertsLtdMRGAndMatthewGibbonsGibbonsMember2022-11-012022-11-010001475115eb:MRGConcertsLtdMRGAndMatthewGibbonsGibbonsMember2023-12-262023-12-260001475115us-gaap:SubsequentEventMembereb:MRGConcertsLtdMRGAndMatthewGibbonsGibbonsMember2024-04-162024-04-1600014751152024-03-1400014751152024-03-142024-03-140001475115us-gaap:SubsequentEventMember2024-04-012024-05-020001475115us-gaap:SubsequentEventMember2024-05-020001475115eb:A2018StockOptionAndIncentivePlanMember2018-08-012018-08-310001475115eb:A2010StockOptionPlanMember2024-03-310001475115eb:A2018StockOptionAndIncentivePlanMember2024-03-310001475115us-gaap:CommonClassAMembereb:A2018StockOptionAndIncentivePlanMember2024-03-310001475115eb:A2004Plan2010Planand2018PlanMemberus-gaap:EmployeeStockOptionMember2024-01-012024-03-310001475115us-gaap:EmployeeStockOptionMember2024-03-310001475115us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001475115eb:RSUsRSAsAndPSUsMember2023-12-310001475115eb:RSUsRSAsAndPSUsMember2023-01-012023-12-310001475115eb:RSUsRSAsAndPSUsMember2024-01-012024-03-310001475115eb:RSUsRSAsAndPSUsMember2024-03-310001475115us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-03-310001475115us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310001475115us-gaap:GeneralAndAdministrativeExpenseMember2024-01-012024-03-310001475115us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-03-310001475115us-gaap:ConvertibleDebtSecuritiesMember2024-01-012024-03-310001475115us-gaap:ConvertibleDebtSecuritiesMember2023-01-012023-03-310001475115us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001475115us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001475115us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-310001475115us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-310001475115us-gaap:EmployeeStockMember2024-01-012024-03-310001475115us-gaap:EmployeeStockMember2023-01-012023-03-310001475115eb:A50ConvertibleSeniorNotesDue20252025NotesMemberus-gaap:ConvertibleDebtSecuritiesMember2024-01-012024-03-310001475115us-gaap:ConvertibleDebtSecuritiesMembereb:A75ConvertibleSeniorNotesDue20262026NotesMember2024-01-012024-03-310001475115country:US2024-01-012024-03-310001475115country:US2023-01-012023-03-310001475115us-gaap:NonUsMember2024-01-012024-03-310001475115us-gaap:NonUsMember2023-01-012023-03-31

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading symbol(s)			Name of each exchange on which registered
Class A common stock, $0.00001 par value			EB			New York Stock Exchange LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer			☒			Accelerated filer			☐
Non-accelerated filer			☐			Smaller reporting company			☐
						Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of April 25, 2024, 81,453,841 shares of Registrant's Class A common stock and 15,661,433 shares of Registrant's Class B common stock were outstanding.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "appears," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements related to our future financial or operational results; our convertible senior notes, our future financial performance, including our revenue, costs of revenue and operating expenses; our anticipated growth and growth strategies, changes in our business model and our corporate strategy and expectations with respect to our restructuring plan; our advance payout program; the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; our ability to successfully defend litigation brought against us and the potential effect of any current litigation on our business, financial position, results of operations or liquidity.

The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors, including those described in the section titled "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2023 and this Quarterly Report on Form 10-Q. We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q. You should not rely upon forward-looking statements as predictions of future events.

All forward-looking statements are based on information and estimates available to the Company at the time of this Quarterly Report on Form 10-Q and are not guarantees of future performance. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.

Eventbrite, Inc. (Eventbrite or the Company) operates a two-sided marketplace that connects millions of creators and consumers every month to share their passions, artistry, and causes through live experiences. Creators use the Company's highly-scalable self-service ticketing and marketing tools to plan, promote, and sell tickets to their events and event seekers use the Company's website and mobile application to discover and purchase tickets to experiences they love.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and the applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal and recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations and cash flows for the interim periods. The condensed consolidated balance sheet at December 31, 2023 has been derived from audited consolidated financial statements as of that date. All intercompany transactions and balances have been eliminated. The interim results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future annual or interim period.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures About Market Risk" and the Consolidated Financial Statements and notes thereto included in Items 7, 7A and 8, respectively, in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (2023 Form 10-K).

Certain reclassifications may have been made to the Company's prior year’s condensed consolidated financial statements to conform to the Company's current year presentation. These reclassifications had no effect on the Company's previously reported loss before income taxes.

There have been no changes to the Company's significant accounting policies described in the 2023 Form 10-K that have had a material impact on the Company's unaudited condensed consolidated financial statements and related notes.

In order to conform with U.S. GAAP, the Company is required to make certain estimates, judgments and assumptions when preparing its condensed consolidated financial statements. These estimates, judgments and assumptions affect the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods. These estimates include, but are not limited to, the recoverability of creator signing fees and creator advances, chargebacks and refunds reserve, certain assumptions used in the valuation of equity awards, assumptions used in determining the fair value of business combinations, the allowance for credit losses, and indirect tax reserves. The Company evaluates these estimates on an ongoing basis. Actual results could differ from those estimates and such differences could be material to the Company’s condensed consolidated financial statements.

For all periods presented, comprehensive loss equaled net loss. Therefore, the condensed consolidated statements of comprehensive loss have been omitted from the unaudited condensed consolidated financial statements.

The Company’s Chief Executive Officer (CEO) is the chief operating decision maker. The Company's CEO reviews discrete financial information presented on a consolidated basis for purposes of allocating resources and evaluating the Company’s financial performance. Accordingly, the Company has determined that it operates as a single operating segment and has one reportable segment.

In February 2023, the Board of Directors of the Company approved a restructuring plan (the Plan) designed to reduce operating costs, drive efficiencies by consolidating development and support talent into regional hubs, and enable investment for potential long-term growth.

The Company incurred costs of $0.1 million in connection with the Plan during the three months ended March 31, 2024, which consisted of costs related to severance and other employee termination benefits.

A summary of the restructuring related costs for the three months ended March 31, 2024 as follows (in thousands):

The restructuring related costs incurred to date were $16.4 million, which consists of $12.0 million in costs related to severance, and other employee termination benefits, and $4.4 million primarily related to lease abandonment costs.

The following table is a summary of the changes in the restructuring related liabilities, included within accrued compensation and benefits and other accrued liabilities on the condensed consolidated balance sheets, associated with the Plan (in thousands):

The Company derives its revenues from a mix of marketplace activities. Revenue is primarily derived from ticketing fees and payment processing fees. The Company also derives a portion of revenues from organizer fees and advertising services. The Company's customers are event creators who use the Company's platform to sell tickets and market events to consumers. Revenue is recognized when or as control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.

For ticketing services, the Company's service provides a platform to the event creator and consumer to transact. The Company's performance obligation is to facilitate and process that transaction and issue the ticket, and ticketing revenue is recognized by the Company when the ticket is sold. The amount that the Company earns for its ticketing services is fixed which typically consists of a flat fee and a percentage-based fee per ticket. As a result, the Company records ticketing revenue on a net basis related to its ticketing service fees.

For payment processing services, the Company provides the event creator with the choice of whether to use Eventbrite Payment Processing (EPP) or to use a third-party payment processor, referred to as Facilitated Payment Processing (FPP).

Under the EPP option, the Company is the merchant of record and is responsible for processing the transaction and collecting the face value of the ticket and all associated fees at the time the ticket is sold. The Company is also responsible for remitting these amounts collected, less the Company's fees, to the event creator. For EPP services, the Company determined that it is the principal in providing the service as the Company is responsible for fulfilling the promise to process the payment and has discretion in establishing the price of its service. As a result, the Company records revenue on a gross basis related to its EPP service fees. Costs incurred for processing the ticketing transactions are included in cost of net revenues in the condensed consolidated statements of operations. Under the FPP option, the Company is not responsible for processing the transaction or collecting the face value of the ticket and associated fees. In this case, the Company records revenue on a net basis related to its FPP service fees.

Revenue is presented net of indirect taxes, customer refunds, payment chargebacks, estimated uncollectible amounts, creator royalties, and amortization of creator signing fees. As part of our commercial agreements, the Company offers upfront payments to qualifying creators entering into new or renewed ticketing arrangements in order to incentivize them to organize certain events on the Company's platform or obtain exclusive rights to ticket their events.

If an event is canceled by a creator, then any obligations to provide refunds to event attendees are the responsibility of that creator. If a creator is unwilling or unable to fulfill their refund obligations, the Company may, at its discretion, provide attendee refunds.

Advertising revenue represents services that enable creators to promote featured content on the Eventbrite platform or mobile application. The Company considers that it satisfies its performance obligation as it provides the services to customers and recognizes revenue as advertising impressions are displayed to consumers.

In the second quarter of 2023, the Company expanded access to its comprehensive suite of event marketing tools to all creators and introduced new pricing plans and subscription packages to creators when publishing events on the Eventbrite marketplace. Under the new pricing plans, the Company charges an organizer fee under two plan options.

The Flex plan is charged per event. The Company considers that it satisfies its performance obligation as it provides services to creators to publish their event on the Eventbrite marketplace and recognizes revenue, based on the ticket capacity selected, at that point-in-time. The Pro plan is a monthly or annual subscription to publish unlimited events. The Company considers that it satisfies its performance obligation as it provides the subscribed services under the plan and recognizes revenue ratably over the subscription period. Organizer fees are nonrefundable.

The Company considers all highly liquid financial instruments, including bank deposits, money market funds and U.S. Treasury securities with an original maturity of three months or less at the date of purchase, to be cash equivalents. Due to the short-term nature of the instruments, the carrying amounts reported in the condensed consolidated balance sheets approximate their fair value.

Cash and cash equivalents balances include the face value of tickets sold on behalf of creators and their share of service charges, which are to be remitted to the creators. Such balances were $324.8 million and $259.2 million as of March 31, 2024 and December 31, 2023, respectively. These ticketing proceeds are legally unrestricted, and the Company invests a portion of ticketing proceeds in U.S. Treasury bills with original maturities greater than three months and less than one year. These amounts due to creators are included in accounts payable, creators on the condensed consolidated balance sheets.

During 2023, the Company issued letters of credit relating to contracts entered into with other parties under lease agreements and other agreements which were collateralized with cash. This cash was classified as noncurrent restricted cash on the condensed consolidated balance sheets. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows (in thousands):

The Company invests certain of its excess cash in short-term debt instruments which consist of U.S. Treasury bills with original maturities greater than three months and less than one year. All short-term investments are classified as held-to-maturity and are recorded and held at amortized cost. Investments are considered to be impaired when a decline in fair value is deemed to be other-than-temporary. Once a decline in fair value is determined to be other-than-temporary, the carrying value of an instrument is adjusted to its fair value on a non-recurring basis. No such fair value impairment was recognized during the three months ended March 31, 2024 and year ended December 31, 2023.

The following tables summarize the Company's financial instruments that were measured at fair value on a non-recurring basis (in thousands):

Funds receivable represents cash-in-transit from third-party payment processors that is received by the Company within approximately five business days from the date of the underlying ticketing transaction. For periods ending on a weekend or a bank holiday, the funds receivable balance will typically be higher than for periods ending on a weekday, as the Company settles payment processing activity on business days. The funds receivable balance includes the face value of tickets sold on behalf of creators and their share of service charges, which amounts are to be remitted to the creators. Such amounts were $32.1 million and $44.2 million as of March 31, 2024 and December 31, 2023, respectively.

Accounts receivable, net is comprised of invoiced amounts to customers who use a third-party facilitated payment processor (FPP). In evaluating the Company’s ability to collect outstanding receivable balances, the Company considers various factors including the age of the balance, the creditworthiness of the customer and the customer’s current financial condition. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The following table summarizes the Company’s accounts receivable balance (in thousands):

Creator signing fees are incentives that are offered and paid by the Company to secure exclusive ticketing and payment processing rights with certain creators. Creator signing fees are presented net of reserves on the condensed consolidated balance sheet. The benefit the Company receives by securing exclusive ticketing and payment processing rights with certain creators from creator signing fees is inseparable from the customer relationship with the creators and accordingly the amortization of these fees is recorded as a reduction of revenue in the condensed consolidated statements of operations.

As of March 31, 2024, the balance of creator signing fees, net is being amortized over a weighted-average remaining contract life of 2.3 years on a straight-line basis. The following table summarizes the activity in creator signing fees for the periods indicated (in thousands):

Creator signing fees are classified as follows on the condensed consolidated balance sheet as of the dates indicated (in thousands):

Creator advances are incentives that are offered by the Company which provide the creator with funds in advance of the event. Creator advances are presented net of reserves on the condensed consolidated balance sheet. These are subsequently recovered by withholding amounts due to the Company from the sale of tickets for the event until the creator payment has been fully recovered.

The following table summarizes the activity in creator advances for the periods indicated (in thousands):

Accounts payable, creators consists of unremitted ticket sale proceeds, net of Eventbrite service fees and applicable taxes. Amounts are remitted to creators within five business days subsequent to the completion of the related event. Creators may apply to receive a portion of these proceeds prior to completion of their events.

For qualified creators, the Company passes ticket sales proceeds to the creator prior to the event, subject to certain limitations. Internally, the Company refers to these payments as advance payouts. When an advance payout is made, the Company reduces its cash and cash equivalents with a corresponding decrease to its accounts payable, creators. As of March 31, 2024 and December 31, 2023, advance payouts outstanding was $153.9 million and $115.3 million, respectively.

The terms of the Company's standard merchant agreement obligate creators to reimburse attendees who are entitled to refunds. The Company records estimates for refunds and chargebacks of its fees as contra-revenue. When the Company provides advance payouts, it assumes risk that the event may be canceled, fraudulent, or materially not as described, resulting in significant chargebacks and refund requests. See Note 10, “Accounts Payable, Creators.” If the creator is insolvent, has spent the proceeds of the ticket sales for event-related costs, has canceled the event, or has engaged in fraudulent activity, the Company may not be able to recover its losses from these events, and such unrecoverable amounts could equal the value of the transaction or transactions settled to the creator prior to the event that is disputed, plus any associated chargeback fees not assumed by the creator. The Company records reserves for estimated advance payout losses as an operating expense classified within sales, marketing and support.

Reserves are recorded based on the Company's assessment of various factors, including the amounts paid and outstanding to creators in conjunction with the advance payout program, macroeconomic conditions, and actual chargeback and refund activity trends. The chargebacks and refunds reserve was $8.7 million and $8.1 million, which primarily includes reserve balances for estimated advance payout losses of $5.4 million and $6.0 million, as of March 31, 2024 and December 31, 2023, respectively.

The Company will adjust reserves in the future to reflect best estimates of future outcomes. The Company cannot predict the outcome of or estimate the possible recovery or range of recovery from these matters. It is possible that the reserve amount will not be sufficient and the Company's actual losses could be materially different from its current estimates.

Property and equipment, net consisted of the following as of the dates indicated (in thousands):

The Company recorded the following amounts related to depreciation of fixed assets and capitalized internal-use software development costs during the periods indicated (in thousands):

The Company has operating leases primarily for office space. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Right-of-use assets also include adjustments related to prepaid or deferred lease payments and lease incentives. In calculating the present value of the lease payments, the Company utilizes its incremental borrowing rate, as the rates implicit in the leases were not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

The components of operating lease costs were as follows (in thousands):

As of March 31, 2024, the Company's operating leases had a weighted-average remaining lease term of 2.0 years and a weighted-average discount rate of 4.6%.

As of March 31, 2024, maturities of operating lease liabilities were as follows (in thousands):

The carrying amounts of the Company's goodwill was $174.4 million as of March 31, 2024 and December 31, 2023. The Company tests goodwill for impairment at least annually, in the fourth quarter, or whenever events or changes in circumstances would more likely than not reduce the fair value of its single reporting unit below its carrying value. The Company did not record any goodwill impairment during the three months ended March 31, 2024.

Acquired intangible assets consisted of the following (in thousands):

The following table set forth the amortization expense recorded related to acquired intangible assets during the periods indicated (in thousands):

As of March 31, 2024, the total expected future amortization expense of acquired intangible assets by year is as follows (in thousands):

The Company measures its financial assets and liabilities at fair value at each reporting date using a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – Other inputs that are directly or indirectly observable in the marketplace.

Level 3 – Unobservable inputs that are supported by little or no market activity.

The Company’s cash equivalents, funds receivable, accounts receivable, accounts payable and other current liabilities approximate their fair value. All of these financial assets and liabilities are Level 1, except for debt. See Note 16, “Debt,” for details regarding the fair value of the Company's convertible senior notes.

As of March 31, 2024 and December 31, 2023, long-term debt consisted of the following (in thousands):

The following tables set forth the total interest expense recognized related to the term loans and the convertible notes for the periods indicated (in thousands):

The following table summarizes the Company's contractual obligation to settle commitments related to the 2026 Notes and 2025 Notes as of March 31, 2024 (in thousands):

(1) The 2026 Notes and 2025 Notes bear interest at a fixed rate of 0.750% and 5.000% per year, respectively.

The effective interest rate of the 2026 Notes is 1.3%. The Company recorded cash interest of $0.4 million, and amortization of debt issuance costs of $0.3 million and $0.2 million during the three months ended March 31, 2024 and March 31, 2023 respectively.

The effective interest rate of the 2025 Notes is 5.8%. The Company recorded cash interest of $1.9 million, and amortization of debt issuance costs of $0.3 million during the three months ended March 31, 2024 and March 31, 2023.

The fair value of the 2026 Notes and 2025 Notes, which the Company has classified as a Level 2 instrument, was $183.2 million and $148.5 million respectively, as of March 31, 2024. The fair value of the Notes is determined using observable market prices on the last business day of the period.

The Company's principal commitments consist of obligations under the 2025 Notes and 2026 Notes (including principal and coupon interest), operating leases for office space, as well as non-cancellable purchase commitments. See Note 16, "Debt" for contractual obligations to settle commitments relating to the 2025 Notes, 2026 Notes and Note 13, "Leases" for operating leases for office space.

Other than as described above, there were no material changes outside the Company's normal course of business in its commitments under contractual obligations from those disclosed in the 2023 Form 10-K.

In addition to the litigation discussed below, from time to time, the Company may become a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, breach of contract claims, tax and other matters. Future litigation may be necessary to defend the Company or its creators.

The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

The Company accrues estimates for resolution of legal and other contingencies when losses are probable and reasonably estimable. The Company's assessment of losses is re-evaluated each accounting period and is based on all available information, including impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to each case. Nevertheless, it is possible that additional future legal costs including settlements, judgments, legal fees and other related defense costs could have a material adverse effect on the Company’s business, consolidated financial position, results of operations or liquidity.

The matter discussed below summarizes the Company’s current significant ongoing pending litigation.

On June 18, 2020, the Company filed a Complaint in the United States District Court for the Northern District of California against M.R.G. Concerts Ltd. (MRG) and Matthew Gibbons (Gibbons), asserting claims for breach of contract, breach of the implied covenant of good faith and fair dealing, declaratory judgment, unfair competition, and common counts under California law, arising out of MRG and Gibbons' termination of certain contracts with the Company and their refusal to make various payments to the Company required by those contracts. MRG asserted counterclaims against the Company for breach of one of the contracts in issue, as well as for breach of the implied covenant of good faith and fair dealing, unfair competition, and declaratory judgment. A jury trial commenced on May 16, 2022. On May 23, 2022, the jury issued a verdict in Eventbrite’s favor and awarded the Company $11.0 million in damages. Defendants filed a motion seeking to reduce the verdict or hold a new trial, and the Company filed a motion for pre-judgment and post-judgment interest as well as to recover its attorneys’ fees and costs of suit per the parties’ contracts. On November 1, 2022, the District Court denied defendants' motion, granted the Company’s motion, and entered an Amended Final Judgment in the Company’s favor in the amount of $14.9 million. MRG appealed on April 2023. On December 26, 2023, the Ninth Circuit Court of Appeals found in MRG’s favor, vacating the judgment as to damages, reversing the District Court’s decision denying remittitur, and remanding the case back to the District Court to enter an amended final judgment reducing damages by $6.3 million and accompanying prejudgment interest. On April 16, 2024, the District Court entered the Amended Final Judgment in favor of Eventbrite in the amount of approximately $7.6 million, with additional interest accruing per day. The Company has not recorded any gain in relation to this verdict as of March 31, 2024.

The Company is currently under audit in certain jurisdictions with regard to indirect tax matters. The Company establishes reserves for indirect tax matters when it determines that the likelihood of a loss is probable, and the loss is reasonably estimable. Accordingly, the Company has established a reserve for the potential settlement of issues related to sales and other indirect taxes in the amount of $1.1 million and $1.1 million as of March 31, 2024 and December 31, 2023, respectively. These amounts, which represent management’s best estimates of its potential liability, include potential interest and penalties of $0.2 million and $0.2 million as of March 31, 2024 and December 31, 2023, respectively.

The Company does not believe that any ultimate liability resulting from any of these matters will have a material adverse effect on its business, consolidated financial position, results of operations or liquidity. However, the outcome of these matters is inherently uncertain. Therefore, if one or more of these matters were resolved against the Company for amounts in excess of management’s expectations, the Company’s financial statements, including in a particular reporting period in which any such outcome becomes probable and estimable, could be materially adversely affected.

In the ordinary course of business, the Company enters into contractual arrangements under which the Company agrees to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from the Company’s online ticketing platform or the Company’s acts or omissions. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments. In addition, the Company has indemnification agreements with its directors and executive officers that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations vary.

On March 14, 2024 our board of directors announced that it approved a share repurchase program with authorization to purchase up to $100.0 million of the Company’s Class A common stock, which does not have an expiration date. Through March 31, 2024, we repurchased 2,652,174 shares of our Class A common stock for an aggregate amount of $15.1 million, which includes amounts accrued for the 1% excise tax as a result of the Inflation Reduction Act of 2022.

As of March 31, 2024, approximately $85.0 million remained available and authorized for future repurchases.

The volume and timing of any repurchases will be subject to general market conditions, as well as our management of capital, general business conditions, other investment opportunities and other factors. Shares may be repurchased through open market purchases, block trades, privately negotiated transactions, accelerated share repurchase transactions or by any combination of such methods, and any repurchases may be made pursuant to Rule 10b5-1 plans. The share repurchase program does not obligate us to repurchase any specific number of shares, has no time limit and may be modified, suspended or discontinued at any time at the Company’s discretion.

Subsequent to March 31, 2024, from April 1, 2024, through May 2, 2024, we repurchased 2,829,455 shares of our Class A common stock at an average price per share of $5.48 for a total purchase price of $15.6 million. As of May 2, 2024, approximately $69.4 million remained available and authorized for future repurchases.

In August 2018, the 2018 Stock Option and Incentive Plan (2018 Plan) was adopted by the Board of Directors and approved by the stockholders and became effective in connection with the IPO. The 2018 Plan replaced the 2010 Stock Plan (2010 Plan) as the Board of Directors determined not to make additional awards under the 2010 Plan. The 2010 Plan will continue to govern outstanding equity awards granted thereunder.

The 2018 Plan allows for the granting of options, stock appreciation rights, restricted stock, restricted stock units (RSUs), unrestricted stock awards, performance-based restricted stock units (PSUs), dividend equivalent rights and cash-based awards. Every January 1, the number of shares of stock reserved and available for issuance under the 2018 Plan will cumulatively increase by five percent of the number of shares of Class A and Class B common stock outstanding on the immediately preceding December 31, or a lesser number of shares as approved by the Board of Directors.

As of March 31, 2024, there were 5,537,652 and 6,757,763 options issued and outstanding under the 2010 Plan and 2018 Plan, respectively (collectively, the Plans). As of March 31, 2024, 10,570,354 shares of Class A common stock were available for grant under the 2018 Plan.

Stock options granted typically vest over a four-year period from the date of grant. Options awarded under the Plans are exercisable for up to ten years.

Stock option activity for the three months ended March 31, 2024 is presented below:

			Outstanding options						Weighted average exercise price						Weighted average remaining contractual term (years)						Aggregate intrinsic value (thousands)
Balance as of December 31, 2023			12,318,335						$	12.06					5.4						$	2,845
Canceled			(22,920)						9.50
Balance as of March 31, 2024			12,295,415						12.07						5.1						20
Vested and exercisable as of March 31, 2024			10,600,260						12.15						4.6						20
Vested and expected to vest as of March 31, 2024			12,214,598						$	12.08					5.1						$	20

The aggregate intrinsic value in the table above represents the difference between the fair value of Class A common stock and the exercise price of outstanding, in-the-money stock options at March 31, 2024.

As of March 31, 2024, the total unrecognized stock-based compensation expense related to stock options outstanding was $9.3 million, which will be recognized over a weighted-average period of 1.9 years. There were no options granted during the three months ended March 31, 2024.

Stock award activity, which includes RSUs, PSUs and restricted stock awards (RSAs), for the three months ended March 31, 2024 is presented below:

As of March 31, 2024, the total unrecognized stock-based compensation expense related to stock awards, was $68.2 million, which will be recognized over a weighted-average period of 1.8 years.

Stock-based compensation expense recognized in connection with stock options, RSUs, RSAs, PSUs and the Employee Stock Purchase Plan (ESPP) during each of the three months ended March 31, 2024 and 2023 was as follows (in thousands):

			Three Months Ended March 31,
			2024						2023
Cost of net revenue			$	152					$	197
Product development			5,974						4,324
Sales, marketing and support			2,433						2,228
General and administrative			5,403						5,345
Total			$	13,962					$	12,094

The Company capitalized $0.6 million of stock-based compensation expense related to capitalized software costs during the three months ended March 31, 2024, compared to $0.3 million during the three months ended March 31, 2023.

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period. As the Company had net losses for the three months ended March 31, 2024 and 2023, all potentially issuable shares of Class A common stock were determined to be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect (in thousands):

						March 31, 2024						March 31, 2023
Shares related to convertible senior notes						19,538						19,538
Stock options to purchase common stock						12,295						12,690
Restricted stock units						11,641						10,869
ESPP						138						150
Total shares of potentially dilutive securities						43,612						43,247

For the 2025 Notes and 2026 Notes, the conversion spread of 11.9 million shares and 7.6 million shares, respectively, will have a dilutive impact on diluted net income per share of Class A common stock when the average market price of the Company’s Class A common stock for a given period exceeds the conversion price of $12.60 per share for the 2025 Notes and $27.89 per share for the 2026 Notes.

The Company recorded an income tax expense of $0.3 million for the three months ended March 31, 2024, compared to $0.6 million for the three months ended March 31, 2023. The decrease was primarily attributable to insignificant non-routine tax expenses recorded during the prior year and changes in taxable earnings mix.

The differences in the tax provision for the periods presented and the U.S. federal statutory rate is primarily due to foreign taxes in profitable jurisdictions and the recording of a full valuation allowance on the Company's net deferred tax assets.

The computation of the provision for income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date earnings from recurring operations and adjusting for discrete tax items recorded in the period.

The following table presents the Company's total net revenue by geography based on the currency of the underlying transaction (in thousands):

			Three Months Ended March 31,
			2024						2023
United States			$	63,283					$	58,397
International			22,969						19,517
Total net revenue			$	86,252					$	77,914

No individual country included in international net revenue represents more than 10% of the total consolidated net revenue for any of the periods presented.

Substantially all of the Company's long-lived assets are located in the United States.

Eventbrite’s mission is to bring the world together through live experiences. Since inception, we have been at the center of the experience economy, helping transform the way people discover and organize events. Our two-sided marketplace connects millions of creators and consumers every month to share their passions, artistry, and causes through live experiences. Creators use our highly-scalable self-service ticketing and marketing tools to plan, promote, and sell tickets to their events and event seekers use our website and mobile application to discover and purchase tickets to experiences they love.

In 2023, Eventbrite creators hosted over 5 million free and paid events, issuing over 300 million tickets on our global marketplace which resulted in over $3.5 billion dollars in gross ticket sales for the year.

We monitor key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to revenue, net loss, and other results under generally accepted accounting principles (GAAP), the following tables set forth key business metrics and non-GAAP financial measures we use to evaluate our business. We believe these metrics and measures are useful to facilitate period-to-period comparisons of our business performance. We believe that the use of Adjusted EBITDA is helpful to our investors as this metric is used by management in assessing the health of our business and our operating performance, making operating decisions, evaluating performance and performing strategic planning and annual budgeting. This measure is not prepared in accordance with GAAP and has limitations as an analytical tool, and you should not consider this in isolation or as substitutes for analysis of our results of operations as reported under GAAP. You are encouraged to evaluate the adjustments and the reasons we consider them appropriate.

Paid ticket volume is measured by the number of tickets sold on our platform that generate ticket fees, referred to as paid ticket volume. We consider paid ticket volume an important indicator of the underlying health of the business. The table below sets forth the paid ticket volume for the periods indicated:

Our paid ticket volume for events in the United States and outside of the United States was 60% and 40%, respectively, in the three months ended March 31, 2024, compared to 62% and 38%, respectively, in the three months ended March 31, 2023.

Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes and in evaluating acquisition opportunities. We calculate Adjusted EBITDA as net loss adjusted to exclude depreciation and amortization, stock-based compensation expense, interest income, interest expense, loss on debt extinguishment, employer taxes related to employee equity transactions, other income (expense), net, and income tax provision (benefit). Adjusted EBITDA should not be considered as an alternative to net loss or any other measure of financial performance calculated and presented in accordance with GAAP.

The following table presents our Adjusted EBITDA for the periods indicated and a reconciliation of our Adjusted EBITDA to the most comparable GAAP measure, net loss, for each of the periods indicated:

(1) Restructuring related costs are included in Net Loss and Adjusted EBITDA. For further information, refer to Note 2 - Restructuring included in Part I, Item 1, "Notes to Unaudited Condensed Consolidated Financial Statements," of this Quarterly Report on Form 10-Q.

Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital spending that occurs off of the income statement or account for future contractual commitments, (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures and (iii) Adjusted EBITDA does not reflect the interest and principal required to service our indebtedness. Our Adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA in the same manner as we calculate the measure, limiting its usefulness as a comparative measure. In evaluating Adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. When evaluating our performance, you should consider Adjusted EBITDA alongside other financial performance measures, including our net loss and other GAAP results.

The following tables set forth our condensed consolidated results of operations data and such data as a percentage of net revenue for the periods presented (in thousands):

We currently generate revenues primarily from service fees and payment processing fees from the sale of paid tickets on our platform. Our ticketing fee structure typically consists of a flat per ticket fee and a percentage of the price of each ticket sold by a creator. Revenue is recognized when control of promised goods or services is transferred to the creator, which is when the ticket is sold for service fees and payment processing fees. We also derive a portion of revenues from fees associated with advertising and other marketplace services for creators to publish and promote events. In the second quarter of 2023, we launched new pricing plans and subscription packages, which may include an organizer fee to creators in order to publish an event on the Eventbrite marketplace. Net revenue excludes sales taxes and value-added taxes (VAT) and is presented net of estimated customer refunds, chargebacks and amortization of creator signing fees.

The increase in net revenue during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was primarily driven by a $9.3 million increase in our marketplace revenue, which consists of organizer fees, launched in June 2023, and advertising services. This increase was offset by a $1.0 million decrease in ticketing revenue driven by lower paid ticket volume.

Cost of net revenue consists of variable costs related to payment processing fees and fixed costs related to making our platform generally available. Our fixed costs consist primarily of expenses associated with the operation and maintenance of our platform, including website hosting fees and platform infrastructure costs, amortization of capitalized software development costs, on-site operations costs and customer support costs. Cost of net revenue also includes the amortization expense related to our acquired developed technology assets, which may be incurred in future periods related to future acquisitions.

Generally, we expect cost of net revenue to fluctuate as a percentage of net revenue in the near- to mid-term primarily driven by the fixed costs absorption relative to total net revenue and our geographical revenue mix. Our payment processing costs for credit and debit card payments are generally lower outside of the United States due to a number of factors, including lower card network fees and lower cost alternative payment networks. Consequently, if we generate more revenue internationally, we expect that our overall payment processing costs will decline as a percentage of total revenue. As our total net revenue increases or decreases and our fixed costs are unaffected, our cost of net revenue as a percentage of net revenue will similarly fluctuate.

The decrease in cost of net revenue during the three months ended March 31, 2024 compared to the three months ended March 31, 2023, was primarily due to lower payment processing costs associated with the decrease in ticket sales volume.

Our gross margin improved during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, primarily due to higher margin attributed to our marketplace revenue.

Operating expenses consist of product development, sales, marketing and support and general and administrative expenses. Direct and indirect personnel costs, including stock-based compensation expense, are the most significant recurring component of operating expenses.

As our total net revenue increases or decreases and to the extent our operating expenses are not equally affected, our operating expenses as a percentage of net revenue will similarly fluctuate.

Product development expenses consist primarily of employee-related costs including salaries, bonuses, benefits, and stock-based compensation, and third-party infrastructure expenses incurred in developing our platform including software subscription costs. Generally, we expect our product development expenses to increase in absolute dollars as we focus on enhancing and expanding the capabilities of our platform. Our product development expenses decreased year-over-year as a percentage of net revenue. We expect our revenue to grow at a faster pace compared to product development expenses as we continue to expand our development staff in lower cost markets.

Product development expenses remained relatively consistent for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Sales, marketing and support expenses consist primarily of costs associated with our employees involved in selling and marketing our products and in public relations and communication activities, in addition to marketing programs spend. For our sales teams, this also includes commissions. Sales, marketing and support expenses are driven by investments to grow and retain creators and attendees on our platform, and improve the customer experience. Additionally, we classify certain creator-related expenses, such as refunds of the ticket price paid by us on behalf of a creator and reserves for estimated advance payout losses, as sales, marketing and support expenses.

The increase in sales, marketing and support expenses during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was primarily driven by a $2.5 million increase in employee compensation related expenses, including stock-based compensation, due to headcount growth. Additionally, there was a $0.6 million increase in marketing spend associated with advertising and agency fees to support our consumer marketing campaigns.

General and administrative expenses consist of personnel costs, including stock-based compensation, and professional fees for finance, accounting, legal, risk, human resources and other corporate functions. Our general and administrative expenses also include accruals for sales and business taxes, as well as reserves and impairment charges related to creator upfront payments. Over the long-term, we anticipate general and administrative expenses to decline as a percentage of net revenue as we expect to grow our net revenues and scale our business.

General and administrative expenses remained relatively consistent for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Interest income consists primarily of interest earned on our cash, cash equivalents, marketable securities and amounts held on behalf of customers.

The increase in interest income of $2.0 million during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was primarily due to interest rate movements and higher cash and investment balances.

In March 2021, we issued the 2026 Notes, which consisted of $212.75 million aggregate principal amount of 0.750% convertible senior notes due 2026. In June 2020, we issued the 2025 Notes, which consisted of $150.0 million aggregate principal amount of 5.000% convertible senior notes due 2025.

Interest expense consists primarily of cash interest expense, amortization of debt discount, and issuance costs on our 2025 Notes and 2026 Notes.

Interest expense remained relatively consistent for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Other income (expense), net consists primarily of foreign exchange rate remeasurement gains and losses recorded from consolidating our subsidiaries each period-end. The primary driver of our other income (expense), net is fluctuation in the value of the U.S. dollar against the local currencies of our foreign subsidiaries.

The increase in other expense during the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was driven by foreign currency rate measurement fluctuations. We recognized higher foreign currency rate measurement losses during the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Income tax provision consists primarily of U.S. federal and state income taxes and income taxes in certain foreign jurisdictions in which we conduct business. The differences in the tax provision for the periods presented and the U.S. federal statutory rate is primarily due to foreign taxes in profitable jurisdictions and the recording of a full valuation allowance on our deferred tax assets in certain jurisdictions including the United States. The computation of the provision for income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date earnings from recurring operations and adjusting for discrete tax items recorded in the period.

The decrease in provision for income taxes for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was primarily attributable to non-routine tax expenses recorded in the prior year and changes in taxable earnings mix.

As of March 31, 2024, we had cash and cash equivalents of $579.9 million, short-term investments of $113.7 million and funds receivable of $35.3 million. Our cash and cash equivalents include bank deposits, U.S. Treasury bills, and money market funds held by financial institutions. Our short-term investment portfolio, which consists of U.S. Treasury bills, is designed to preserve principal and provide liquidity. Our funds receivable represents cash-in-transit from credit card processors that is received to our bank accounts within five business days of the underlying ticket transaction. As of March 31, 2024, approximately 18% of our cash was held outside of the United States. We do not expect to incur significant taxes related to these amounts. The cash was held primarily to fund our foreign operations and on behalf of, and to be remitted to, creators. Collectively, our cash and cash equivalents balances represent a mix of cash that belongs to us and cash that is due to creators.

The amounts due to creators, which were $356.9 million as of March 31, 2024, are captioned on our condensed consolidated balance sheets as accounts payable, creators. These ticketing proceeds are legally unrestricted, and we invest a portion of creator cash in U.S. Treasury bills with original maturities greater than three months and less than one year. For qualified creators, we pass ticket sales proceeds to the creator prior to the event, subject to certain limitations. Internally, we refer to these payments as advance payouts. When we provide advance payouts, we assume risk that the event may be canceled, fraudulent or materially not as described, resulting in significant chargebacks and refund requests. The terms of our standard merchant agreement obligate creators to repay us for ticket sales advanced under such circumstances. If the creator is insolvent, has spent the proceeds of the ticket sales for event-related costs, has canceled the event, or has engaged in fraudulent activity, we may not be able to recover our advance payout losses from these events. Such unrecoverable amounts could equal up to the value of the ticket sales or amounts settled to the creator prior to the event that has been postponed or canceled or is otherwise disputed. We record estimates for losses related to chargebacks and refunds based on various factors, including the amounts paid and outstanding to creators in conjunction with the advance payout program, macroeconomic conditions, and actual chargeback and refund activity trends. Due to the nature of macroeconomic events, including but not limited to shifts in consumer behavior, inflation, increased labor costs, and rising interest rates, there is a high degree of uncertainty around these reserves and our actual losses could be materially different from our current estimates. We will adjust our recorded reserves in the future to reflect our best estimates of future outcomes, and we may pay in cash a portion of, all of, or a greater amount than the $8.7 million provision recorded as of March 31, 2024.

In June 2020, we issued the 2025 Notes, and in March 2021, we issued the 2026 Notes. The 2025 Notes mature on December 1, 2025 and the 2026 Notes mature on September 15, 2026. Under certain circumstances, holders may surrender their notes of a series for conversion prior to the applicable maturity date. Upon conversion, the notes may be settled in cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock, at our election.

On March 14, 2024 our board of directors announced that it approved a share repurchase program with authorization to purchase up to $100.0 million of the Company’s Class A common stock, which does not have an expiration date. Through March 31, 2024, we repurchased 2,652,174 shares of our Class A common stock for an aggregate amount of $15.1 million. As of March 31, 2024, approximately $85.0 million remained available and authorized for future repurchases.

We believe that our existing cash, together with cash generated from operations, will be sufficient to meet our anticipated cash needs for at least the next 12 months. However, our liquidity assumptions may prove to be incorrect, and we could exhaust our available financial resources sooner than we currently expect.

Our cash flow activities were as follows for the periods presented:

The net cash provided by operating activities of $63.5 million for the three months ended March 31, 2024 was primarily due to our net loss of $4.5 million, adjusted for non-cash charges of $20.9 million primarily driven by stock-based compensation expense and changes in our operating assets and liabilities that provided $47.0 million in cash, primarily driven by timing of accounts payable to creators and funds receivable.

The net cash provided by operating activities of $75.2 million for the three months ended March 31, 2023, was primarily due to our net loss of $12.7 million, adjusted for non-cash charges of $19.8 million primarily driven by stock-based compensation expense and changes to our operating assets and liabilities that provided $68.0 million in cash, primarily driven by timing of accounts payable to creators.

Net cash provided by investing activities of $39.3 million for the three months ended March 31, 2024 primarily consisted of $84.1 million in purchases of short-term investments, offset by a $126.0 million increase in maturity of short-term investments.

Net cash used in investing activities of $96.4 million for the three months ended March 31, 2023 primarily consisted of $94.7 million in purchases of short-term investments.

Net cash used in financing activities of $14.6 million during the three months ended March 31, 2024 was primarily due to the $12.0 million repurchase of our Class A common stock and $2.6 million in taxes paid related to net share settlement of equity awards.