StubHub, a leader in the online ticket resale market, has taken a significant step toward going public by filing for an initial public offering (IPO) with the SEC on March 21. The company aims for a valuation of approximately $16.5 billion.

Growth Metrics and Financial Highlights

In 2024, StubHub reported gross merchandise sales (GMS) of $8.7 billion, reflecting a 27% increase from the previous year. The platform facilitated the sale of over 40 million tickets from more than one million sellers across 200 countries and territories.

StubHub’s revenue for 2024 reached $1.77 billion, marking a 29.4% rise from 2023. Despite the revenue growth, the company experienced a net loss of $2.8 million. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $298.7 million, which is a decline of nearly 16% from $353.9 million in 2023. Additionally, StubHub’s long-term debt is reported at $2.33 billion, nearly eight times its adjusted EBITDA from the previous year.

Use of IPO Proceeds

The proceeds from the IPO are expected to primarily address StubHub’s debt obligations. The remainder of the funds will be allocated to general corporate purposes, including operational costs and potential investments in technology and acquisitions.

Market Positioning and Competition

As articulated in its S-1 filing, StubHub asserts its position as a frontrunner in the secondary ticketing market. The company is also making strides in primary ticketing, having generated over $100 million in GMS in 2024. StubHub claims its open distribution model enhances pricing intelligence and distribution for content rights holders, making its platform an attractive option for direct ticketing solutions.

In comparison to its competitors, StubHub’s business operations stand out: Vivid Seats reported a gross transaction value (GTV) of $3.9 billion in 2024, while Eventbrite, another primary ticketing service, recorded a GTV of $3.2 billion. Ticketmaster, which does not separate its primary and secondary ticketing figures, reported an impressive $34.7 billion in GTV.

A Brief History of StubHub

Founded in 2000 by Erik Baker, StubHub was acquired by eBay in 2007. Baker subsequently launched Viagogo, a competing secondary ticket platform in Europe, which later acquired StubHub in 2020. Post-IPO, Baker is expected to hold about 5% of Class A shares and 100% of Class B shares, translating to over 90% of the voting rights. Significant Class A shareholders include Madrone Partners (27.1%), WestCap Management (11.0%), Bessemer Venture Partners (9.6%), PointState Capital (5.6%), and Declaration Partners (5.3%).