StubHub Targets IPO with $350M EBITDA and $1.4B Revenue: Cash Flow Soars

StubHub, a well-known ticket resale company, earned $350 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending in March. This comes as StubHub prepares for its upcoming initial public offering (IPO) in the US, according to a source familiar with the details. The company, which includes both StubHub and Viagogo platforms, reported $1.4 billion in revenue and $505 million in unlevered free cash flow during the same period.

IPO Plans and Collaborations

StubHub is currently discussing its IPO with potential investors and is working with major financial institutions like Goldman Sachs, JPMorgan Chase, and Bank of America to manage the listing. The IPO could be launched as early as July, although final decisions are still pending. Representatives from StubHub and the banks involved declined to comment on these plans.


Market Context and Competitors

This IPO comes at a time when the ticketing industry is under scrutiny due to a lawsuit led by the US Department of Justice against Live Nation Entertainment. The lawsuit seeks to force Live Nation to sell its ticketing division, Ticketmaster, which could lead to a new independent competitor in the market.

Previous Valuation and Market Conditions

StubHub had considered a direct listing in 2022, which might have valued the company at over $13 billion. They filed confidentially with the US Securities and Exchange Commission at that time.

In comparison, Vivid Seats, a competitor that went public through a merger with a special purpose acquisition company in 2021, has seen a 60% decline in its stock value since listing. Vivid Seats reported $142 million in adjusted EBITDA and $712.9 million in revenue for 2023, trading at about 12.2 times earnings.

Company Background

StubHub and Viagogo operate in over 90 countries, according to their website. Eric Baker, who co-founded StubHub, left before it was sold to eBay in 2007 for $310 million. Baker later established Viagogo in Europe, and in 2019, Viagogo acquired StubHub for $4.05 billion.

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