10-KPeriod: FY2024

Airbnb, Inc. Annual Report, Year Ended Dec 31, 2024

Filed February 13, 2025For Securities:ABNB

Summary

Airbnb's 2024 10-K filing indicates a year of continued top-line growth, with revenue increasing by 12% to $11.1 billion, 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 billion, 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 billion, 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.

Financial Highlights

46 data points
Beta

Revenue

$11.10B

83.1% Gross Margin

Net Income

$2.65B

23.9% Net Margin

Total Assets

$20.96B

Cash & Equivalents

$6.86B

Free Cash Flow

$4.52B

Financial Statements
Beta
Revenue$11.10B
Cost of Revenue$1.88B
Gross Profit$9.22B
R&D Expenses$2.06B
Operating Expenses$8.55B
Operating Income$2.55B
Net Income$2.65B
Shares Outstanding (Basic)632.00M
Shares Outstanding (Diluted)645.00M

Key Highlights

  • 1Revenue 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).
  • 2Net income decreased 45% to $2.6 billion primarily due to a significant tax benefit recorded in the prior year, impacting year-over-year comparability.
  • 3Adjusted EBITDA increased 11% to $4.0 billion, demonstrating strong operational performance and cost management.
  • 4Free Cash Flow reached $4.5 billion, up from $3.8 billion in the prior year, indicating robust cash generation.
  • 5The company repurchased $3.4 billion of its Class A common stock during 2024, continuing its capital return program.
  • 6Global operations are subject to evolving regulatory landscapes for short-term rentals, with specific challenges noted in jurisdictions like New York City.
  • 7Significant progress was made in resolving tax disputes, notably with a settlement payment to Italian tax authorities.

Frequently Asked Questions

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.

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.

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.

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.