StubHub Eyes IPO, Reports $350M EBITDA, $1.4B Revenue

Key Takeaway

• StubHub reported $350 million EBITDA, $1.4 billion revenue, and $505 million unlevered free cash flow for the year ending in March.
• The company is preparing for a potential IPO as soon as July, working with Goldman Sachs, JPMorgan Chase, and Bank of America.
• Market dynamics are shifting due to a DOJ lawsuit against Live Nation's Ticketmaster; Vivid Seats' shares have declined 60% since its 2021 listing.

StubHub's Financial Performance

StubHub, the operator of ticketing resale platforms StubHub and Viagogo, reported $350 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending in March. The company also saw $1.4 billion in revenue and $505 million in unlevered free cash flow during the same period, according to a person familiar with the matter. These figures come as StubHub prepares for a planned US initial public offering (IPO). The person, who requested anonymity as the information is not public, provided these financial details.

IPO Preparations

StubHub is in early discussions with prospective investors about its listing and is working with major financial institutions, including Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp., on the planned IPO. The IPO could potentially take place as soon as July, according to another person familiar with the matter. However, deliberations are ongoing, and no final decisions have been made. Details of the offering may still change, and representatives for StubHub, Goldman Sachs, JPMorgan, and Bank of America declined to comment on the matter.

Market Context and Competition

The ticketing business is currently experiencing significant changes, partly due to a US Department of Justice-led lawsuit against Live Nation Entertainment Inc. The lawsuit seeks to force Live Nation to sell its giant ticketing arm, Ticketmaster, which could create an independent rival to platforms like StubHub and Viagogo. StubHub had previously explored going public via a direct listing in 2022, which could have valued the company at more than $13 billion. At that time, StubHub filed confidentially with the US Securities and Exchange Commission, as reported by Bloomberg News.

Shares of Vivid Seats Inc., a competitor to StubHub that went public via a merger with a blank-check company in 2021, have declined about 60% since its listing. Vivid Seats reported $142 million in adjusted EBITDA and $712.9 million in revenue in 2023. It currently trades at a multiple of about 12.2 times earnings, according to Bloomberg calculations.

Historical Background and Operations

StubHub and Viagogo’s ticket reselling operations span more than 90 countries, according to the company's website. Eric Baker, one of StubHub’s co-founders, left the company before it was sold to eBay Inc. for $310 million in 2007. Baker later founded Viagogo in Europe, and in 2019, Viagogo acquired StubHub for $4.05 billion. This acquisition has allowed the combined entity to expand its global footprint and enhance its market presence.