01—Abstract
Summary
Summary of the 10-Q filed August 13, 2021. Cited figures are marked; the original filing is the authoritative source.
Airbnb, Inc. (ABNB) reported its second quarter 2021 financial results on August 12, 2021, showcasing a significant recovery driven by a rebound in travel.
For the three months ended June 30, 2021, Airbnb reported revenue of $1.34 billiona, a substantial increase of 299% compared to the same period in 2020. This growth was fueled by an 83% increase in Nights and Experiences Booked and a significant rise in Gross Booking Value (GBV) to $13.4 billion. The company achieved positive Adjusted EBITDA of $217.4 million, a dramatic improvement from a loss of $397.3 million in the prior year quarter, indicating operational leverage and effective cost management.
Financially, Airbnb strengthened its balance sheet by issuing $2.0 billionb in convertible senior notes and utilizing its cash reserves. The company ended the period with robust liquidity, including $5.7 billion in cash and cash equivalents and $1.7 billion in marketable securities. Despite the strong operational recovery and improved profitability metrics, the company continues to face uncertainties related to the ongoing COVID-19 pandemic and faces various legal and regulatory matters.
02—Key points
Key Highlights
- Revenue surged by 299% year-over-year to $1.34 billion for Q2 2021, demonstrating a strong travel rebound.
- Gross Booking Value (GBV) reached $13.4 billion, a 320% increase compared to Q2 2020, driven by increased travel demand.
- Adjusted EBITDA turned positive at $217.4 million, a significant turnaround from a loss of $397.3 million in Q2 2020, highlighting operational efficiency.
- Nights and Experiences Booked increased by 197% to 83.1 million in Q2 2021, indicating a substantial recovery in platform activity.
- The company successfully issued $2.0 billion in 0% convertible senior notes in March 2021, strengthening its liquidity position.
- Total assets grew significantly to $15.48 billion as of June 30, 2021, primarily due to an increase in cash and marketable securities.
- Free Cash Flow improved dramatically to $783.6 million for the three months ended June 30, 2021, compared to a negative $262.6 million in the prior year period.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2021, Airbnb, Inc. lost $0.05.
- Revenue$1.34B100.0%
- Cost of revenue−$294.4M22.1%
- Gross profit$1.04B77.9%
- Operating costs−$1.09B81.8%
- Operating income−$51.3M3.8%
- Interest, other & tax−$16.9M1.3%
- Net income−$68.2M5.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2021filed August 13, 2021Financial Statements
Q2 FY2021 against Q2 FY2020
| Line item | Q2 FY2021Q2 FY2020 | Change |
|---|---|---|
| Revenue | $1.34B$334.77M | +298.8% |
| Cost of Revenue | $294.43M$161.20M | +82.6% |
| Gross Profit | $1.04B$173.58M | +499.6% |
| R&D Expenses | $349.73M$217.94M | +60.5% |
| Operating Expenses | $1.39B$917.99M | +51.0% |
| Operating Income | -$51.28M-$583.22M | +91.2% |
| Net Income | -$68.22M-$575.59M | +88.1% |
| Shares Outstanding (Basic) | 611.74M263.52M | +132.1% |
| Shares Outstanding (Diluted) | 611.74M263.52M | +132.1% |
05—Questions
Frequently Asked Questions
What was Airbnb's revenue performance in the second quarter of 2021?
For the three months ended June 30, 2021, Airbnb reported revenue of $1.34 billion, representing a significant increase of 299% compared to the same period in 2020. This growth was driven by a substantial increase in Nights and Experiences Booked and higher Average Daily Rates (ADRs).
Did Airbnb achieve profitability in the second quarter of 2021?
Yes, Airbnb achieved positive Adjusted EBITDA of $217.4 million for the three months ended June 30, 2021, a substantial improvement from a loss of $397.3 million in the prior year quarter. This turnaround reflects the strong recovery in bookings and effective cost management.
How did Airbnb's balance sheet change during the period?
Total assets increased to $15.48 billion as of June 30, 2021, up from $10.49 billion as of December 31, 2020. This increase was primarily driven by a significant rise in cash and cash equivalents and marketable securities, reflecting the proceeds from the convertible senior notes issuance and strong operating cash flow.
What is Airbnb's outlook regarding the COVID-19 pandemic?
Airbnb acknowledges that the COVID-19 pandemic continues to pose uncertainties. While the company has seen a strong recovery in travel demand, it remains dependent on future developments such as the spread of new variants, government restrictions, and vaccine effectiveness. The company is preparing for continued travel demand as restrictions ease.
06—Continue