StubHub, the giant secondary ticket market owned by eBay, made history today with its much anticipated initial public offering (IPO). The company initially listed its shares at $25.35 on the New York Stock Exchange (NYSE). The IPO was priced in the middle of its expected range and raised the company about $800 million. This accomplishment represents an important victory lap for the company, which has become one of the most influential forces in live event ticketing.
After all, StubHub was only founded in 2000. In 2020, co-founder Eric Baker was able to retake it for net $4 billion, turning it into a powerful platform for buyers and sellers alike. In fact, the use of this tool soared last year, enabling the sale of more than 40 million tickets, a testament to its value for consumers. With about one million sellers using its own platform, StubHub has cemented its brand as the top resale ticket marketplace.
The firm saw tremendous revenue increase fueled by all of these large activations, particularly Taylor Swift’s Eras Tour and Beyoncé’s Renaissance Tour. On top of that, major sporting events including the Super Bowl played a role in spiking ticket sales. Indeed, StubHub recorded gross merchandise sales of $2.08 billion for the three months ended March 31.
StubHub’s revenue growth—which jumped 10% in the first quarter of this year from a year ago—was pretty incredible. This stellar collection jump boosted their overall revenue to $397.6 million. The company at the same time announced a widening net loss of $35.9 million, up from $29.7 million in the same period a year ago. These mixed financial fortunes capture the ongoing challenges and opportunities being experienced by companies operating in the fast-paced ticketing marketplace.
StubHub’s main competitors are Vivid Seats, SeatGeek and Ticketmaster parent Live Nation Entertainment. Nevertheless, with Baker at the helm as CEO and an established customer base, StubHub aims to strengthen its market position further.
Eric Baker ringing the opening bell at the NYSE on IPO day. Regardless of how it performed on debut, this moment is a new chapter for StubHub as it starts its life as a publicly traded company trading under “STUB.” The company’s pedigree is nothing short of remarkable. eBay for $310 million in 2007, but non-profit CEO Baker was able to buy it back from eBay years later.