01—Abstract
Summary
Summary of the 10-K filed February 16, 2024. Cited figures are marked; the original filing is the authoritative source.
Airbnb, Inc. (ABNB) reported strong financial performance for the fiscal year ending December 31, 2023, with revenue reaching $9.9 billiona, an 18% increase over the previous year, driven by a 14% rise in Nights and Experiences Booked and higher average daily rates.
Net income surged by 153% to $4.8 billionb, significantly boosted by a $2.9 billion release of its valuation allowance on deferred tax assets, alongside revenue growth and disciplined cost management. Adjusted EBITDA also saw a healthy increase of 26% to $3.7 billion. The company continues to focus on its long-term growth strategy, emphasizing making hosting mainstream, growing its guest community, perfecting its core services through product innovation, and expanding its global network.
Airbnb's operational resilience and adaptability are highlighted, supported by significant investments in its technology platform, including AI and machine learning, to enhance user experience and operational efficiency. The company also announced a new $6.0 billionc share repurchase program in February 2024, indicating confidence in its financial position and commitment to returning value to shareholders.
02—Key points
Key Highlights
- Revenue grew 18% to $9.9 billion in 2023, reflecting strong travel demand and increased booking activity.
- Net income more than doubled to $4.8 billion, primarily due to a significant release of deferred tax asset valuation allowance and revenue growth.
- Adjusted EBITDA increased by 26% to $3.7 billion, demonstrating operational efficiency and profitability.
- Nights and Experiences Booked increased by 14% to 448.2 million, indicating continued user engagement and platform growth.
- Gross Booking Value (GBV) increased by 16% to $73.3 billion, driven by higher booking volumes and average daily rates.
- Free Cash Flow grew to $3.8 billion, showcasing strong cash generation from operations.
- The company announced a new $6.0 billion share repurchase program, signaling confidence in future performance and commitment to shareholder returns.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Airbnb, Inc. kept $0.48.
- Revenue$9.92B100.0%
- Cost of revenue−$1.70B17.2%
- Gross profit$8.21B82.8%
- Operating costs−$6.70B67.5%
- Operating income$1.52B15.3%
- Interest, other & tax$3.27B33.0%
- Net income$4.79B48.3%
Where FY2023 revenue went
$9.92B- Other operating costs: $4.97B, 50% of revenue
- R&D: $1.72B, 17% of revenue
- Cost of revenue: $1.70B, 17% of revenue
- Operating income: $1.52B, 15% of revenue
Kept 15% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 16, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $9.92B$8.40B | +18.1% |
| Cost of Revenue | $1.70B$1.50B | +13.6% |
| Gross Profit | $8.21B$6.90B | +19.0% |
| R&D Expenses | $1.72B$1.50B | +14.6% |
| Operating Expenses | $8.40B$6.60B | +27.3% |
| Operating Income | $1.52B$1.80B | −15.8% |
| Net Income | $4.79B$1.89B | +153.1% |
| Shares Outstanding (Basic) | 637.00M637.00M | 0.0% |
| Shares Outstanding (Diluted) | 662.00M680.00M | −2.6% |
05—Questions
Frequently Asked Questions
What was Airbnb's revenue and net income performance in 2023?
In 2023, Airbnb reported revenue of $9.9 billion, an 18% increase compared to 2022. Net income surged by 153% to $4.8 billion. This substantial net income growth was significantly influenced by a $2.9 billion release of its valuation allowance on deferred tax assets, in addition to strong revenue growth and effective cost management.
How is Airbnb investing in its future growth?
Airbnb's long-term growth strategy focuses on four key areas: making hosting mainstream, growing and engaging its guest community, perfecting its core service through continuous product innovation (with over 430 features launched in the last two years), and expanding its global network. The company is also heavily investing in its technology platform, including AI and machine learning, to enhance user experience and operational efficiency.
What are the key financial health indicators for Airbnb?
Key financial health indicators highlighted in the report include a 14% increase in Nights and Experiences Booked to 448.2 million, a 16% increase in Gross Booking Value (GBV) to $73.3 billion, and a 26% increase in Adjusted EBITDA to $3.7 billion. Free Cash Flow also saw a notable increase, reaching $3.8 billion, demonstrating robust cash generation.
What is Airbnb's approach to shareholder returns?
Airbnb is actively returning value to shareholders. In 2023, the company repurchased $2.3 billion of its Class A common stock. Furthermore, in February 2024, Airbnb's board of directors approved a new share repurchase program authorizing the purchase of up to $6.0 billion of its Class A common stock, signaling strong confidence in its financial position and future outlook.
06—Continue