01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Airbnb's 2024 10-K filing indicates a year of continued top-line growth, with revenue increasing by 12% to $11.1 billiona, driven by a 10% rise in Nights and Experiences Booked and a higher Average Daily Rate (ADR).
This growth reflects sustained strong travel demand. Despite revenue growth, net income saw a significant decrease of 45% to $2.6 billionb, largely due to a large one-time tax benefit recorded in the prior year. Adjusted EBITDA, however, demonstrated the company's underlying strength, increasing by 11% to $4.0 billion, showcasing effective cost management alongside revenue expansion.
The company also generated substantial Free Cash Flow of $4.5 billionc, up from $3.8 billion in the prior year, and continued its share repurchase program, buying back $3.4 billion in Class A common stock. The company faces ongoing regulatory scrutiny and potential operational challenges globally, particularly concerning short-term rental regulations in various jurisdictions, and is actively managing its tax liabilities, including significant settlements in Italy.
02—Key points
Key Highlights
- Revenue grew 12% year-over-year to $11.1 billion, fueled by a 10% increase in Nights and Experiences Booked and a higher Average Daily Rate (ADR).
- Net income decreased 45% to $2.6 billion primarily due to a significant tax benefit recorded in the prior year, impacting year-over-year comparability.
- Adjusted EBITDA increased 11% to $4.0 billion, demonstrating strong operational performance and cost management.
- Free Cash Flow reached $4.5 billion, up from $3.8 billion in the prior year, indicating robust cash generation.
- The company repurchased $3.4 billion of its Class A common stock during 2024, continuing its capital return program.
- Global operations are subject to evolving regulatory landscapes for short-term rentals, with specific challenges noted in jurisdictions like New York City.
- Significant progress was made in resolving tax disputes, notably with a settlement payment to Italian tax authorities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Airbnb, Inc. kept $0.24.
- Revenue$11.10B100.0%
- Cost of revenue−$1.88B16.9%
- Gross profit$9.22B83.1%
- Operating costs−$6.67B60.1%
- Operating income$2.55B23.0%
- Interest, other & tax$95.3M0.9%
- Net income$2.65B23.9%
Where FY2024 revenue went
$11.10B- Other operating costs: $4.62B, 42% of revenue
- Operating income: $2.55B, 23% of revenue
- R&D: $2.06B, 19% of revenue
- Cost of revenue: $1.88B, 17% of revenue
Kept 23% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $11.10B$9.92B | +11.9% |
| Cost of Revenue | $1.88B$1.70B | +10.3% |
| Gross Profit | $9.22B$8.21B | +12.3% |
| R&D Expenses | $2.06B$1.72B | +19.4% |
| Operating Expenses | $8.55B$8.40B | +1.8% |
| Operating Income | $2.55B$1.52B | +68.2% |
| Net Income | $2.65B$4.79B | −44.7% |
| Shares Outstanding (Basic) | 632.00M637.00M | −0.8% |
| Shares Outstanding (Diluted) | 645.00M662.00M | −2.6% |
05—Questions
Frequently Asked Questions
What was Airbnb's revenue performance in 2024?
In 2024, Airbnb's revenue increased by 12% to $11.1 billion. This growth was primarily driven by a 10% increase in Nights and Experiences Booked and a higher Average Daily Rate (ADR), indicating continued strong demand for travel on the platform.
How did Airbnb's profitability change in 2024 compared to 2023?
While revenue grew, Airbnb's net income decreased by 45% to $2.6 billion in 2024. This decline was mainly due to a significant one-time release of a valuation allowance on deferred tax assets recorded in 2023, which boosted prior-year net income. Adjusted EBITDA, a non-GAAP measure of operational performance, increased by 11% to $4.0 billion, suggesting underlying business strength.
What is Airbnb's approach to capital allocation and shareholder returns?
Airbnb generated $4.5 billion in Free Cash Flow in 2024 and continued its share repurchase program, buying back $3.4 billion of Class A common stock. The company has stated it intends to retain any future earnings and does not anticipate paying cash dividends in the foreseeable future.
What are the key risks or challenges facing Airbnb based on this filing?
Key risks highlighted include intense competition, reliance on host and guest activity, brand and reputation management, potential for fraudulent activities, cybersecurity threats, and significant exposure to global regulatory changes, particularly concerning short-term rental laws in various cities and countries. The company also faces ongoing tax compliance efforts and potential liabilities from legal and regulatory matters.
06—Continue