The stock of ticket reseller StubHub (STUB) is down 20% after management refused to provide any forward guidance for the company.
StubHub reported a quarterly losses of $4.27 U.S. per share, which missed the analyst consensus estimate of a loss of $3.08.
Revenue of $468.1 million U.S. surpassed the $452 million U.S. expected on Wall Street. Sales were up 8% from a year earlier.
It was the company’s first financial results since its initial public offering (IPO) in September of this year.
Unfortunately, the company’s stock is collapsing after management declined to provide a future outlook for profit and sales.
StubHub founder Eric Baker said on the company’s earnings call that the timing of when tickets go on sale can vary, making it hard to predict consumer demand.
StubHub does plan to offer guidance for 2026 when it reports fourth-quarter financial results, he added.
Management attributed the wider-than-expected loss in the third quarter to a one-time stock-based compensation charge of $1.4 billion U.S. resulting from its IPO.
The company added that it faced tough comparisons from a year earlier, when results were boosted by Taylor Swift’s hugely popular Eras Tour.
Founded in 2000, StubHub primarily generates revenue from connecting buyers with ticket resellers.
Prior to today (Nov. 14), STUB stock had declined 15% since its September IPO to trade at $18.82 U.S. per share.
Tech Insider
