Not sure how many people outside of the Wall Street analysts world saw through it, but a funny fact about Eventbrite is that they generated 50% of the revenue from their own payment processing system.
They did not state this explicitly in their S-1 form but with some simple calculations we could figure that out.
First, with some simple calculation we could find that they generate about $3.00 per paid ticket.
We also know that they charge the event creators:
$0.99 flat fee for each paid ticket
Ticketing fee: 1% of the total paid ticket value
Payment processing fee: 3% of the total paid ticket value
We can therefore deduce that the average paid ticket value is $50:
This means that for each $50 paid ticket, they generate about $1.50 from payment processing
$50 × 3% = $1.50
which accounts for 50% of their $3.00 per paid ticket revenue.
In other words, as a ticketing startup Eventbrite only generates half of its revenue from ticketing. The other half is payment processing.
This is what allows them to have a 60% gross margin, since they perform about 90% of the transaction through their own processing system.
If they have use exclusively 3rd party payment processors and the 3% fee is redirected to those processors completely, their gross margin will be definitely under 50%, since half of the revenue is basically 0% margin.
Yet their margin is around 60%.
This brings us to my conclusion: Evenbrite is 50% ticketing but 50% fintech.