StubHub CEO Eric Baker said Wednesday that recently introduced federal regulations around transparent ticket pricing will cause a "one-time" hit to its financial results.
Revenue is expected to dip year over year as consumers digest the new rules, Baker told CNBC, which require online ticket sellers to prominently show the total cost upfront.
"We've seen this in states like New York that have done it. You have a drop off and it hits about 10%. ... Then it's just back to normal," Baker said in an interview with CNBC's "Squawk on the Street." "You're growing off the base because you now normalized it. So it's just a one-time hit to conversion, resets the market, and then onward and upward you go."
The online ticket marketplace is expected to begin trading on the New York Stock Exchange on Wednesday under the symbol "STUB."
StubHub late Tuesday priced its IPO at $23.50, landing at the midpoint of the expected range it gave last week of $22 to $25. The share sale values the company at $8.6 billion.