StubHub Moves Forward with IPO Filing, Reports Revenue Growth
Financial Overview
StubHub Holdings Inc., the well-known ticket-selling platform, has filed for an initial public offering (IPO) as it reports significant revenue growth alongside a slight annual loss for the fiscal year 2024. The company disclosed a loss of $2.8 million on revenue amounting to $1.77 billion for the last year. This marks a substantial shift from its net income of $405 million on $1.37 billion in revenue in 2023.
Moreover, StubHub announced its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2024 at $299 million, although this figure reflects a decline from the prior year’s earnings. For context, the company had recorded a loss of $57 million in 2022.
IPO Details and Timing
At this stage, StubHub has not provided specifics regarding the size or pricing structure of the upcoming share sale. Stakeholders can expect further details in subsequent filings as the company prepares to engage with potential investors.
The IPO initiative follows a previous plan that was deferred last year due to challenging market conditions, despite an uptick in sales attributed to high-profile events such as Taylor Swift’s The Eras Tour.
Leadership and Ownership Structure
Eric Baker, a co-founder of StubHub who previously helmed the company before its acquisition by eBay Inc. in 2007 for $310 million, retains significant influence. After founding Viagogo in Europe, he oversaw the acquisition of StubHub by Viagogo for $4.05 billion, completed in 2020. Baker holds 5.2% of Class A shares and maintains more than 90% of the company’s voting power through his Class B shares.
Other key stakeholders include Madrone Partners LP, which owns a 27% stake in the company yet only holds 2.8% of voting power. WestCap Management and Bessemer Venture Partners, holding 11% and 9.6% stakes respectively, also play significant roles within the company, with board representation from both Madrone and Bessemer.
Global Reach and Market Position
With combined operations across its brands, StubHub and Viagogo operate in over 200 countries, showcasing their extensive footprint in the ticket reselling market.
The IPO will be spearheaded by JPMorgan Chase & Co. and Goldman Sachs Group Inc., along with over ten additional banks, aiming for shares to be traded on the New York Stock Exchange under the ticker symbol STUB.