Airbnb, Inc. (ABNB) Bundle
A Brief History of Airbnb, Inc.
Company Overview
Airbnb, Inc. was founded in August 2008 and has since transformed the hospitality industry by enabling individuals to rent out their homes or rooms to travelers. As of 2024, Airbnb operates globally, offering millions of listings in over 220 countries and regions.
Financial Performance
For the three months ended September 30, 2024, Airbnb reported total revenue of $3.732 billion, a 10% increase from $3.397 billion in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $8.622 billion, reflecting a 12% growth compared to $7.699 billion in the previous year.
| Period | Total Revenue (in millions) | Net Income (in millions) | Adjusted EBITDA (in millions) |
|---|---|---|---|
| Q3 2023 | $3,397 | $4,374 | $1,834 |
| Q3 2024 | $3,732 | $1,368 | $1,958 |
| 9M 2023 | $7,699 | $5,141 | $2,915 |
| 9M 2024 | $8,622 | $2,187 | $3,276 |
Cost Structure and Expenses
Airbnb's cost of revenue for Q3 2024 was $465 million, a slight increase from $459 million in Q3 2023. For the nine-month period, the cost of revenue rose to $1.451 billion from $1.319 billion in the previous year. Operations and support expenses increased to $369 million in Q3 2024 from $316 million in Q3 2023, and for the nine months, it grew to $992 million from $915 million.
| Expense Type | Q3 2023 (in millions) | Q3 2024 (in millions) | 9M 2023 (in millions) | 9M 2024 (in millions) |
|---|---|---|---|---|
| Cost of Revenue | $459 | $465 | $1,319 | $1,451 |
| Operations and Support | $316 | $369 | $915 | $992 |
| Product Development | $419 | $524 | $1,290 | $1,518 |
| Sales and Marketing | $403 | $514 | $1,339 | $1,601 |
| General and Administrative | $304 | $335 | $822 | $937 |
Share Repurchase Programs
During the three months ended September 30, 2024, Airbnb repurchased approximately 8.7 million shares of Class A common stock for $1.1 billion. Total repurchases for the nine months amounted to 18.3 million shares for $2.6 billion, with $4.2 billion remaining under the share repurchase program as of September 30, 2024.
Market Trends and Future Outlook
Airbnb has seen a consistent increase in nights booked and experiences offered, which has contributed to its revenue growth. The company is positioned to capitalize on the ongoing recovery of the travel industry post-pandemic, with an anticipated increase in demand for unique travel experiences.
A Who Owns Airbnb, Inc. (ABNB)
Shareholder Composition
As of 2024, Airbnb, Inc. has a diverse shareholder base comprising institutional investors, retail investors, and company insiders. The largest institutional shareholders include:
| Institution | Ownership Percentage | Shares Held (millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.3% | 53.1 |
| BlackRock, Inc. | 7.5% | 48.3 |
| Fidelity Investments | 5.9% | 38.0 |
| State Street Corporation | 4.2% | 27.0 |
| Capital Research Global Investors | 3.7% | 23.8 |
Insider Ownership
Insider ownership at Airbnb includes key executives and board members. The following table summarizes their ownership stakes:
| Name | Position | Ownership Percentage | Shares Held (millions) |
|---|---|---|---|
| Brian Chesky | Co-founder & CEO | 8.1% | 51.8 |
| Joe Gebbia | Co-founder | 4.4% | 28.4 |
| Aristotle Balogh | CTO | 1.2% | 7.8 |
| Other Executives | Various | 1.5% | 9.8 |
Stock Performance
As of September 30, 2024, Airbnb's Class A common stock (ABNB) is trading at approximately $120.47 per share. The stock has experienced fluctuations throughout the year, with a 52-week high of $180.40 and a low of $90.00. The stock's performance has been influenced by various factors, including market trends, earnings releases, and broader economic conditions.
Recent Financial Highlights
For the three months ended September 30, 2024, Airbnb reported:
- Revenue: $3.7 billion, a 10% increase year-over-year.
- Net Income: $1.4 billion, a decrease of 69% compared to the same period in 2023.
- Adjusted EBITDA: $2.0 billion, up 7% year-over-year.
- Free Cash Flow: $1.1 billion, down from $1.3 billion in the prior year.
Share Repurchase Program
In May 2023, Airbnb's board approved a share repurchase program for up to $2.5 billion of Class A common stock, which was followed by an additional $6.0 billion program in February 2024. As of September 30, 2024, the company has repurchased approximately 18.3 million shares for $2.6 billion, leaving $4.2 billion available for future repurchases.
Conclusion
Airbnb, Inc. continues to maintain a robust shareholder structure with significant ownership by both institutional investors and company insiders. The company’s financial performance demonstrates growth despite challenges in net income attributed to increased tax expenses. Ongoing stock repurchase initiatives signal confidence in the company’s future prospects.
Airbnb, Inc. (ABNB) Mission Statement
Airbnb, Inc. emphasizes its commitment to fostering a community based on connection and belonging. The company aims to provide unique stays and experiences that facilitate authentic interactions among guests and hosts. As of 2024, Airbnb's mission statement reflects its growth since its inception in 2007, with over 5 million hosts and more than 2 billion guest arrivals worldwide.
Financial Performance Overview
For the three months ended September 30, 2024, Airbnb reported:
| Metric | Q3 2023 | Q3 2024 | % Change |
|---|---|---|---|
| Revenue | $3,397 million | $3,732 million | 10% |
| Net Income | $4,374 million | $1,368 million | -69% |
| Adjusted EBITDA | $1,834 million | $1,958 million | 7% |
| Free Cash Flow | $1,310 million | $1,074 million | -18% |
Key Business Metrics
Airbnb tracks several key business metrics that reflect its operational performance:
| Metric | Q3 2023 | Q3 2024 | % Change |
|---|---|---|---|
| Gross Booking Value (GBV) | $18.3 billion | $20.1 billion | 10% |
| Nights and Experiences Booked | 113.2 million | 122.8 million | 8% |
Revenue Breakdown by Geographic Region
Revenue disaggregated by geographic region for the third quarter of 2024 is as follows:
| Region | Q3 2023 | Q3 2024 |
|---|---|---|
| North America | $1,478 million | $1,572 million |
| Europe, Middle East, and Africa | $1,533 million | $1,726 million |
| Latin America | $178 million | $199 million |
| Asia Pacific | $208 million | $235 million |
Cost Structure
Airbnb's expenses for the three months ended September 30, 2024, compared to the same period in 2023:
| Expense Type | Q3 2023 | Q3 2024 | % Change |
|---|---|---|---|
| Cost of Revenue | $459 million | $465 million | 1% |
| Operations and Support | $316 million | $369 million | 17% |
| Product Development | $419 million | $524 million | 25% |
| Sales and Marketing | $403 million | $514 million | 28% |
| General and Administrative | $304 million | $335 million | 10% |
Stock Performance and Share Repurchase
Airbnb has been active in its share repurchase program. As of September 30, 2024:
- Total shares repurchased in Q3 2024: 8.7 million for $1.1 billion.
- Total shares repurchased in the first nine months of 2024: 18.3 million for $2.6 billion.
- Remaining authorization for share repurchases: $4.2 billion.
Conclusion of Financial Overview
Airbnb continues to focus on expanding its platform while managing costs and optimizing its financial performance. The company remains committed to enhancing the experience for both hosts and guests, underpinning its mission of fostering connection and belonging globally.
How Airbnb, Inc. (ABNB) Works
Business Model
Airbnb operates a platform that connects hosts offering unique accommodations with guests seeking short-term lodging. The company earns revenue primarily through service fees charged to both guests and hosts. The platform facilitates a wide range of listings, from single rooms to entire homes, and experiences hosted by local experts.
Financial Performance
As of September 30, 2024, Airbnb reported the following financial results:
| Metric | Q3 2023 (in millions) | Q3 2024 (in millions) | % Change |
|---|---|---|---|
| Revenue | $3,397 | $3,732 | 10% |
| Net Income | $4,374 | $1,368 | -69% |
| Adjusted EBITDA | $1,834 | $1,958 | 7% |
| Free Cash Flow | $1,310 | $1,074 | -18% |
Key Metrics
Airbnb's operational success is indicated by its key performance metrics:
| Metric | Q3 2023 | Q3 2024 | % Change |
|---|---|---|---|
| Gross Booking Value (GBV) | $18.3 billion | $20.1 billion | 10% |
| Nights and Experiences Booked | 113.2 million | 122.8 million | 8% |
| Average Daily Rate (ADR) | Not disclosed | Modest increase | Not applicable |
Revenue Breakdown
Airbnb's revenue for the nine months ended September 30, 2024, was $8.622 billion, reflecting a 12% increase from $7.699 billion in the prior year. The revenue is disaggregated by geographic region as follows:
| Region | Q3 2023 (in millions) | Q3 2024 (in millions) |
|---|---|---|
| North America | $1,478 | $1,572 |
| Europe, the Middle East, and Africa | $1,533 | $1,726 |
| Latin America | $178 | $199 |
| Asia Pacific | $208 | $235 |
Cost Structure
Airbnb's cost structure as of September 30, 2024, is as follows:
| Category | Q3 2023 (in millions) | Q3 2024 (in millions) |
|---|---|---|
| Cost of Revenue | $459 | $465 |
| Operations and Support | $316 | $369 |
| Product Development | $419 | $524 |
| Sales and Marketing | $403 | $514 |
| General and Administrative | $304 | $335 |
Liquidity and Cash Flow
Airbnb's cash flow for the nine months ended September 30, 2024, is summarized below:
| Cash Flow Category | 2023 (in millions) | 2024 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $3,821 | $4,052 |
| Net Cash Used in Investing Activities | ($567) | ($396) |
| Net Cash Used in Financing Activities | ($1,259) | ($2,242) |
Debt and Equity
As of September 30, 2024, Airbnb had total outstanding debt of $2.0 billion. The company repurchased 8.7 million shares of Class A common stock for $1.1 billion during the third quarter of 2024.
Stock-Based Compensation
Stock-based compensation expense was $362 million for the three months ended September 30, 2024, compared to $286 million for the same period in 2023.
Tax Obligations
As of September 30, 2024, Airbnb had accrued tax liabilities totaling $445 million, including estimated penalties and interest related to host withholding tax obligations.
How Airbnb, Inc. (ABNB) Makes Money
Revenue Streams
Airbnb generates revenue primarily through service fees charged to guests and hosts on its platform. The main components of Airbnb's revenue model include:
- Service Fees: A percentage of the total booking value, typically between 5% to 15% for guests and 3% for hosts.
- Cleaning Fees: Additional charges that hosts can set for cleaning their listings.
- Experience Fees: Charges for booking experiences offered by hosts.
Financial Performance (2024)
As of September 30, 2024, Airbnb reported significant financial metrics:
| Metric | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Revenue | $3,397 million | $3,732 million | 10% |
| Net Income | $4,374 million | $1,368 million | -69% |
| Adjusted EBITDA | $1,834 million | $1,958 million | 7% |
| Free Cash Flow | $1,310 million | $1,074 million | -18% |
Gross Booking Value (GBV)
GBV is a critical indicator of Airbnb's performance, representing the total dollar value of bookings on the platform:
| Period | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| GBV | $18.3 billion | $20.1 billion | 10% |
Nights and Experiences Booked
This metric measures the total number of nights booked for stays and experiences:
| Period | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Nights and Experiences Booked | 113.2 million | 122.8 million | 8% |
Cost Structure
Airbnb's operating expenses include various costs that impact profitability:
| Expense Type | Q3 2023 | Q3 2024 | Change (%) |
|---|---|---|---|
| Cost of Revenue | $459 million | $465 million | 1% |
| Operations and Support | $316 million | $369 million | 17% |
| Product Development | $419 million | $524 million | 25% |
| Sales and Marketing | $403 million | $514 million | 28% |
| General and Administrative | $304 million | $335 million | 10% |
Geographic Revenue Breakdown
Airbnb's revenue is generated across various regions, with North America and EMEA being the largest contributors:
| Region | Q3 2023 | Q3 2024 |
|---|---|---|
| North America | $1,478 million | $1,572 million |
| Europe, Middle East, Africa | $1,533 million | $1,726 million |
| Latin America | $178 million | $199 million |
| Asia Pacific | $208 million | $235 million |
Key Financial Ratios
Airbnb's financial health can be assessed through several key ratios:
| Ratio | Q3 2023 | Q3 2024 |
|---|---|---|
| Net Income Margin | 129% | 37% |
| Adjusted EBITDA Margin | 54% | 52% |
| Free Cash Flow Margin | 39% | 29% |
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Resources:
- Airbnb, Inc. (ABNB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Airbnb, Inc. (ABNB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Airbnb, Inc. (ABNB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.