After a modest start to the year, the IPO market is witnessing an increase in activity led by technology and healthcare companies. StubHub Holdings, a leading online ticket marketplace for entertainment events like sports and concerts, recently filed to become a public entity.
The tech firm has applied to list its shares on the New York Stock Exchange under the symbol STUB. Meanwhile, details like the number of shares being offered and the offer price are yet to be disclosed. The group of underwriters in the offering is led by J.P. Morgan and Goldman Sachs. The management plans to use proceeds from the offering mainly to repay debt and for general corporate purposes, including working capital, operating expenses, and capital expenditures.
Key Metrics
StubHub’s revenue performance was quite impressive in the past two years. In fiscal 2024, revenues increased 30% year-over-year to $1.77 billion. Despite the strong topline growth, the company reported a net loss of $55.1 million or $0.91 per share, attributable to common stockholders, compared to a profit of $351.5 million or $5.71 per share in fiscal 2023. Net cash provided by operating activities for the year was $261.5 million.
StubHub was founded in 2000 as the first online marketplace for secondary tickets by Eric Baker, who currently serves as the chief executive officer. It was acquired by eBay in 2007, before Baker reacquired the business through his new company Viagogo. StubHub’s global presence provides its leading distribution capabilities and reach among fans around the world.
Outlook
In the SEC filing, the company said it expects a significant opportunity to leverage its data and technology to create a comprehensive platform for all event-related content. However, StubHub’s business is vulnerable to factors that affect the live events market, like the pandemic which brought the entire industry to a standstill a few years ago.