01—Abstract
Summary
Summary of the 10-Q filed May 9, 2022. Cited figures are marked; the original filing is the authoritative source.
Airbnb's first quarter 2022 results show a significant rebound in travel, with revenue increasing by 70% year-over-year to $1.51 billiona.
This growth was driven by a 59% increase in Nights and Experiences Booked and higher Average Daily Rates (ADRs), indicating a strong recovery from pandemic lows and exceeding pre-pandemic (Q1 2019) levels for key metrics like Gross Booking Value (GBV). The company achieved positive Adjusted EBITDA of $229 millionb, a substantial improvement from a loss of $58.6 million in the prior year, demonstrating enhanced operational efficiency and profitability. Financially, Airbnb maintained a robust liquidity position with $9.3 billion in cash, cash equivalents, and marketable securities as of March 31, 2022.
The company's Free Cash Flow also saw significant growth, reaching $1.2 billionc. While the company experienced a net loss of $18.8 million, this was largely influenced by non-operational factors and represents a considerable improvement from the prior year's net loss of $1.17 billion. Investors should note the ongoing legal and tax matters, particularly concerning lodging taxes, which, while currently deemed not materially adverse, warrant continued monitoring.
02—Key points
Key Highlights
- Revenue surged by 70% year-over-year to $1.51 billion in Q1 2022.
- Nights and Experiences Booked increased by 59% year-over-year to 102.1 million.
- Gross Booking Value (GBV) grew by 67% year-over-year to $17.2 billion.
- Achieved positive Adjusted EBITDA of $229 million, a significant improvement from a loss of $58.6 million in Q1 2021.
- Free Cash Flow more than doubled year-over-year, reaching $1.2 billion.
- The company maintained a strong liquidity position with $9.3 billion in cash, cash equivalents, and marketable securities as of March 31, 2022.
- Net loss significantly narrowed to $18.8 million from $1.17 billion in the prior year period.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2022, Airbnb, Inc. lost $0.01.
- Revenue$1.51B100.0%
- Cost of revenue−$363.0M24.1%
- Gross profit$1.15B75.9%
- Operating costs−$1.15B76.3%
- Operating income−$5.0M0.3%
- Interest, other & tax−$14.0M0.9%
- Net income−$19.0M1.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2022filed May 9, 2022Financial Statements
Q1 FY2022 against Q1 FY2021
| Line item | Q1 FY2022Q1 FY2021 | Change |
|---|---|---|
| Revenue | $1.51B$886.94M | +70.1% |
| Cost of Revenue | $363.00M$254.51M | +42.6% |
| Gross Profit | $1.15B$632.42M | +81.2% |
| R&D Expenses | $363.00M$363.06M | 0.0% |
| Operating Expenses | $1.51B$1.33B | +13.5% |
| Operating Income | -$5.00M-$446.94M | +98.9% |
| Net Income | -$19.00M-$1.17B | +98.4% |
| Shares Outstanding (Basic) | 635.00M600.96M | +5.7% |
| Shares Outstanding (Diluted) | 635.00M600.96M | +5.7% |
05—Questions
Frequently Asked Questions
What drove the significant increase in Airbnb's revenue in Q1 2022?
Airbnb's revenue increased by 70% year-over-year to $1.51 billion in the first quarter of 2022. This growth was primarily driven by a 59% increase in Nights and Experiences Booked and higher Average Daily Rates (ADRs). The strong performance reflects a robust recovery in travel demand, particularly in North America and Europe, the Middle East, and Africa (EMEA).
How did Airbnb's profitability change in Q1 2022?
Airbnb demonstrated a significant improvement in profitability by achieving a positive Adjusted EBITDA of $229.1 million in Q1 2022, a substantial increase from a negative Adjusted EBITDA of $58.6 million in the same period of 2021. This turnaround highlights the company's effective cost management and the benefits of increased revenue and operational leverage.
What is Airbnb's current liquidity position?
As of March 31, 2022, Airbnb maintained a strong liquidity position with $9.3 billion in cash, cash equivalents, and marketable securities. This provides ample resources to fund ongoing operations, capital expenditures, and strategic initiatives.
Are there any significant legal or tax matters that investors should be aware of?
Airbnb is involved in various legal and tax matters, notably concerning lodging taxes in numerous jurisdictions. While the company believes it is not primarily liable and is vigorously defending its position, there is an estimated potential exposure beyond accrued amounts for certain tax liabilities. The company also faces an IRS examination for prior tax years. While currently management believes the resolution of these matters will not have a material adverse effect, investors should monitor these situations.
06—Continue