Invest in PromoTix, Inc

WeFunder Investor Webinar Recorded on 11/20/24

How we create instant value

Ticketmaster's average service fee is 35%, making tickets unaffordable in some cases for attendees, and affecting attendance in many cases for event creators whose margins are rapidly shrinking.

Eventbrite is not far behind with fees averaging close to 20%.

An event organizer using PromoTix not only gets more marketing tools to increase attendance by 12-15% on average, but they can also save on service fees considerably.

An event organizer who sells 500 tickets at $40 each, and hosts one event per month, will save upwards of $19,580 in a year using PromoTix.

This value creation is why we're winning business.

👉 Check out how much an event organizer (and their attendees) can save using this nifty calculator.

Here's what people are saying...

189 ratings, 4.7 Stars ⭐️⭐️⭐️⭐️⭐️ on Source Forge (Read them)

61 ratings, 4.7 Stars ⭐️⭐️⭐️⭐️⭐️ on Capterra (Read them)

We've also won a lot of awards from software review companies:

Here's one of our first beta users, who sent us this video when we asked for a testimonial...

Highlights

The global opportunity

New markets on the horizon in 2024 (Use of Funds)

PromoTix is already operating in 46 countries and transacting in 11 currencies around the globe.

PromoTix has plans to add an additional 16 currencies in 2024, for a total of 27. Adding additional currencies allows more markets to utilize PromoTix. Part of this fundraising round will allow us to expand marketing into client acquisition in these new markets.

Feature set

Secondary Marketplace

We recently launched our self-service marketplace for secondary market ticket resales similar to StubHub and Vivid Seats.

PromoTix's unique advantage here allows primary ticketing event creators using PromoTix, to collect ongoing residual payments from tickets that are resold over and over again across the secondary marketplace.

New Features for 2024 (Use of Funds)

Recurring Events

Launched in January of 2024, Recurring events allows event creators who need ongoing daily ticketing, such as museums, botanical gardens, tour operators, and theme parks to use PromoTix effortlessly. The system will create an ongoing calendar where attendees can pick specific days, and times of arrival.

This feature is critical for onboarding "heavy users" of ticketing that will ultimately drive higher company revenues in 2024.

Since launch of this feature on January 1st, we signed one of our largest clients in January, and our number one client in February, 2024 - both of which are recurring events based customers.

Part of the funds from this round will go towards marketing and sales to acquire larger ticketing customers that will benefit from this new feature.

Layaway Plans

Layaway plans will allow attendees to automatically break up the cost of high ticket prices into smaller monthly payments automatically with PromoTix leading up to an event. This helps make festivals and expensive events more affordable for attendees driving bigger attendance numbers for event creators. PromoTix handles all the division and collection of payments before issuing a ticket, so there's no need for credit checks and no risk to the event creators of default by the attendees.

Part of our funding from this round will go towards the development of this new feature. The below video is a quick run through of the designs.

Marketing and Audiences

For 2024 we plan to release the most robust target audience creation and marketing tool set ever built inside of an event management platform. Event creators will be able to build a custom audience to advertise their event to using data sources from Meta (Facebook/Instagram), Twitter, TikTok, Spotify, PromoTix ticketing data, and through a third party data source - even our competitor's data including Ticketmaster, Eventbrite, and AXS Tickets.

Event creators will be able to target an exact audience for their event, and launch ads on Facebook, Instagram, Twitter, TikTok, Snapchat, Hulu TV, YouTube Video, Retargeting, SMS, Email and more - right from the platform. AI will automatically create and suggest ad copy and imagery using the event creator's already live and published event.

Part of our funding from this round will go towards the development of this new feature. The below video is a quick run through of the designs.

PromoTix CC Processing

PromoTix already has an enterprise level professional credit card merchant services product to help large accounts save on credit card fees. However, 95% of our customers are self-signup and currently use Stripe for payment processing - which requires them to sign up or bring their own Stripe account to use PromoTix.

Our studies have shown that 30% of those who start creating events on our platform drop and never publish their event when they get to the Stripe payment processor connection step. Our answer to this is to remove that requirement altogether.

With the new PromoTix Processing product, event organizers will be able to launch an event and start processing payments directly through PromoTix without any external merchant accounts for 2.9%. This will immediately increase the number of events published on our platform leading to higher ticket volume and ultimately more revenue for PromoTix.

We will be using some of the funding from this round to develop this new payments flow to increase customer activation on the platform and increase monthly fee revenue by 25%+

Future projections are not guaranteed.

Patented features no others can touch

These competitive advantages are winning us business from other ticketing providers who cannot offer these features:

• Ambassador program functionality
• No-code event branded mobile apps
• Secured live streaming
• Viral contests tool
• Spotify artist insights

Partnerships

Our advantages

Our team

The business metrics

Here are some YOY stats showing how much we've improved from 2022 to 2023:

•  A major well-known global sports brand (NDA) reached out to acquire us in 2023... we turned them down
• Profitability will be reached in 2024. Estimated revenue will surpass $1.5M, with more than $300k in profit.*
• Revenues in 2022 were $265,797.58 increasing in 2023 to $693,244.12.
• Losses in 2022 were -$656,566 decreasing in 2023 to -$175,330
• Gross Margins 68% ➡ 81.2%
• Payback Ratio 2.5 ➡ 5.1
• Burn Multiple 1.9 ➡ 0.01
• Event Organizer Signups in a year 7,411 ➡ 12,044
• GMV $15.9M ➡ $19.7M per year
• Take rate 1.9% ➡ 4.23%
• LTV Subscribers $25,624 ➡ $59,986.80
• CAC $65.36 ➡ $25.72

*Future projections are not guaranteed

Traction

PromoTix has skyrocketed post-pandemic after exiting it's beta launch and fully going to market in 2022. In 2023, the goal was to improve upon the metrics and initial learnings from 2022, as well as to further reinvest in new feature development.

Overall we've garnered more than 659,000 users on the platform in just 24 months!

Special tax incentives - 90% federal tax breaks!

Use of funds

DEMO: Create and sell tickets

DEMO: Create no-code event branded mobile apps

DEMO: Ambassador promotional programs

Demo: Stream your event and sell virtual tickets

Demo: Viral contest registration marketing campaigns

Demo: See who your attendees are listening to on Spotify (Talent Buying Tool)