- May 16, 2021
- 5 minutes read
Earnings: Airbnb Slowly Rallies From Pandemic Lows
Lodging marketplace Airbnb has unveiled its earnings results for the first quarter of 2021. It’s the second-ever quarterly earnings reported…
Lodging marketplace Airbnb has unveiled its earnings results for the first quarter of 2021. It’s the second-ever quarterly earnings reported by the company since going public late last year.
- Airbnb’s latest fiscal results show that it’s gradually recovering from the lows of the pandemic which dragged down its business. Revenue in Q1′ 21 rose slightly year-over-year, bolstered by business in North America.
By the numbers:
- Airbnb reported $887mn in revenue in Q1, up 5% year-over-year. Its gross booking value rose 52% year-over-year to $10.3bn, with 64.4 million Nights and Experiences booked on its platform.
- Airbnb reported a net loss of $1.2bn. Of that number, $782mn came from charges not directly related to its day-to-day operations including a $113mn impairment for empty office space, $377mn for the repayment of term loans, and a $292mn mark-to-market adjustment from warrants associated with a term loan.
- Also, Airbnb took a charge of $229mn for stock-based compensation, putting the actual loss coming from its core business at much lesser than $1.2bn. The company’s reported adjusted EBITDA in Q1 was a negative $59mn.
- Airbnb’s overall business was strengthened by the Nothern American region, where widespread vaccinations have seen things gradually come back to normal after major pandemic changes. The company has also seen an uptick in European destinations such as the UK and France.
- In Q1, Airbnb spent less on marketing and operations and support while product development costs increased substantially. Its sales and marketing spend were down 28% year-over-year while product development costs rose 40% year-over-year.
- Airbnb ended the quarter with $4.5bn of cash and cash equivalents and $2.1bn of marketable securities at hand. The company raised $3.5bn from its IPO in December 2020.
- Airbnb (NASDAQ: ABNB) is trading at over double its IPO debut price of $68. It currently trades at $141.20, with a market cap of almost $86bn.