On Friday, March 21, the secondary ticketing powerhouse, StubHub, took a significant step towards becoming a publicly traded entity by filing for an initial public offering (IPO) with the SEC. The company is optimistic that this move will elevate its market valuation to an impressive $16.5 billion as it seeks to enhance its financial standing and broaden its reach within the competitive ticket resale market.
As a trailblazer in the realm of online ticket re-selling, StubHub reported remarkable “gross merchandise sales” (GMS) of $8.7 billion in 2024, marking a robust 27% increase compared to 2023 figures. Over the course of the year, StubHub successfully facilitated the sale of more than 40 million tickets, sourced from over 1 million unique sellers spanning across roughly 200 countries and territories, showcasing its extensive global presence and operational prowess.
The company saw its revenue soar to $1.77 billion in 2024, reflecting a substantial growth rate of 29.4% from the previous year. Despite this revenue surge, StubHub reported a net loss of $2.8 million. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which accounts for non-cash expenses, stood at $298.7 million, a decline of nearly 16% from $353.9 million in 2023. Furthermore, StubHub’s long-term debt has reached $2.33 billion, nearly eight times its adjusted EBITDA from the prior year, indicating significant financial obligations that the company must address moving forward.
According to the plans outlined in the IPO filing, the majority of the proceeds will be allocated towards reducing StubHub’s debt. The remaining funds are expected to support general corporate objectives, which include essential working capital, operating expenses, and capital expenditures. Additionally, StubHub has indicated that a portion of the raised capital may be directed towards strategic acquisitions or investments aimed at enhancing their product offerings and technological advancements.
In its S-1 filing, StubHub confidently asserts its position as the foremost leader in the secondary ticketing sector. The company has also ventured into the primary ticketing space, achieving over $100 million in GMS in 2024. StubHub emphasizes its value proposition, which centers around providing expanded distribution channels and superior pricing intelligence through a robust open distribution model. This strategy is designed to attract more content rights holders to utilize their direct issuance solution, further solidifying its market dominance.
When comparing financial performance to competitors, StubHub significantly outperforms many. For instance, Vivid Seats reported a gross transaction value (GTV) of $3.9 billion in 2024, while Eventbrite, primarily a ticketing platform, had a GTV of $3.2 billion. Ticketmaster, on the other hand, does not separate its primary from secondary ticketing figures but reported an impressive total GTV of $34.7 billion, underscoring the competitive nature of the ticketing landscape.
Founded in 2000 by Erik Baker, StubHub has a rich history, having been acquired by eBay in 2007. Following this acquisition, Baker launched a competing ticketing platform in Europe called Viagogo, which went on to purchase StubHub in 2020. Ahead of the IPO, Baker retains approximately 5% of Class A shares along with 100% of Class B shares, granting him more than 90% of the voting rights. Other significant stakeholders include Madrone Partners with 27.1%, WestCap Management at 11.0%, Bessemer Venture Partners holding 9.6%, PointState Capital at 5.6%, and Declaration Partners with 5.3%.
