StubHub Fails to Turn 2Q Profit as Costs Outpace Revenue Growth

Dow Jones
08/13
 

StubHub Holdings wasn't able to turn a profit in the second quarter despite surging revenue from the World Cup as costs climbed.

The company, which connects buyers with ticket resellers, posted a loss attributable to common stockholders of $40,000, or 0 cents a share, compared with a loss of $75.9 million, or 25 cents a share, in the same quarter a year earlier.

Analysts polled by FactSet had been expecting the company to report a profit of 11 cents a share.

Revenue climbed 33% to $573.1 million, well ahead of analyst forecasts for $513.3 million.

Total costs and expenses grew even faster, jumping 37% for the quarter. The company's income from operations dropped 29% year over year.

Shares fell 15% to $7.25 after hours.

Gross merchandise sales, a measure of the total value of goods sold on the platform, were up 34% year over year at $3.1 billion.

Chief Executive Eric Baker said the World Cup drove its record-high revenue performance. The company raised its outlook for gross merchandise sales this year.

 
 
 
 
 
 

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