Asset Manager Investing in Global Technology Sector

We're an asset manager allocating 100% of our capital into public companies and cryptocurrency assets driving disruptive innovation globally. We serve as a family office of an Asia-based HNW family whose key members have made their fortune in the technology industry and are believers in technology as the key enabler of disruptive innovation. We seek to continue the family's legacy in creating and preserving wealth through technology investing.

Our small investment team is made up of diverse professionals who researches, identifies, and executes relevant opportunities. While we are not accepting outside clients and investors at the moment, we occasionally share some of our internal investment memos, market commentaries, and analysis here.

Friday, June 26, 2020

Q2.2020 - Eventbrite: Tough Outlook Even After Financing Boost

  • Having been severely hit by COVID-19, Eventbrite should expect very little to no growth in 2020, even after the recent shift to online events.
  • The $225 million financing from Francisco Partners will allow Eventbrite to test the monetization strength of its online event program.
  • However, we remain skeptical of the overall Eventbrite's long-term growth prospect.

Towards the end of last year, we discussed how Eventbrite (EB) would need to have a more attractive risk/reward profile for investment consideration. As the COVID-19 pandemic has significantly weakened the company's fundamentals and also threatened its long-term prospects, we found it hard to justify a bullish position on the stock. Upon the pandemic, Eventbrite laid off ~45% of its employees to save $100 million for the year. As it entered a distressed situation, it also received a $225 million funding from a PE firm, Francisco Partners. The shares are currently down ~40% from December when we published our first coverage on the stock. In our view, Eventbrite will be in a distressed situation for some time, even beyond 2020. Given the tough outlook, we think the price needs to drop a lot more to justify the risk/reward. We will maintain our neutral stance, leaning more towards underweight.

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