How did Airbnb's revenue perform in Q3 2022 compared to the prior year?

Airbnb's revenue for the third quarter of 2022 increased by 29% year-over-year to $2.88 billion. This growth was primarily driven by a 25% increase in Nights and Experiences Booked and higher Average Daily Rates (ADRs).

What is the company's profitability trend based on this filing?

Profitability has significantly improved. Net income for Q3 2022 was $1.21 billion, more than double the $833.9 million reported in Q3 2021. For the first nine months of 2022, Airbnb reported a net income of $1.57 billion, a substantial turnaround from a net loss of $406.5 million in the same period of 2021. Adjusted EBITDA also showed strong growth, reaching $1.46 billion in Q3 2022.

How is Airbnb managing its capital and shareholder returns?

Airbnb ended September 30, 2022, with $9.6 billion in cash, cash equivalents, and marketable securities. The company also initiated a $2.0 billion share repurchase program in August 2022 and repurchased $1.0 billion of its stock in Q3 2022, indicating a commitment to returning capital to shareholders.

What impact are macroeconomic conditions having on Airbnb's business?

Airbnb noted that while challenging macroeconomic conditions like rising inflation and interest rates exist, they have had a modest impact on the business to date. The company continues to monitor these conditions but has seen strong travel demand that has largely offset potential negative effects.

ABNB 10-Q Quarterly Report Q3 FY2022 — Revenue, Net Income, EPS

Summary

Airbnb, Inc. reported strong financial performance for the third quarter and the first nine months of 2022, demonstrating robust recovery and growth post-pandemic. Revenue saw significant year-over-year increases, driven by a substantial rise in both Nights and Experiences Booked and higher Average Daily Rates (ADRs), indicating strong demand across all regions. The company achieved record revenue and Gross Booking Value (GBV) in Q3 2022, with GBV growing 31% year-over-year to $15.6 billion. Profitability also improved, with Net Income more than doubling year-over-year for the quarter and turning positive for the nine-month period. Adjusted EBITDA and Free Cash Flow showed impressive growth, highlighting operational efficiency and strong cash generation. The company also initiated a significant share repurchase program, signaling confidence in its financial position and commitment to shareholder returns.

Financial Highlights

48 data points

Beta

Revenue

$2.88B

0.9% Gross Margin

Net Income

$1.21B

0.4% Net Margin

Total Assets

$16.08B

Cash & Equivalents

$7.52B

Free Cash Flow

$958.00M

Financial Statements

Beta

Revenue	$2.88B
Cost of Revenue	$401.00M
Gross Profit	$2.48B
R&D Expenses	$366.00M
Operating Expenses	$1.68B
Operating Income	$1.20B
Net Income	$1.21B
Shares Outstanding (Basic)	639.00M
Shares Outstanding (Diluted)	680.00M

Key Highlights

1Revenue increased by 29% year-over-year to $2.88 billion for Q3 2022, and by 46% to $6.50 billion for the first nine months of 2022.
2Nights and Experiences Booked grew by 25% year-over-year to 99.7 million in Q3 2022, exceeding pre-pandemic (Q3 2019) levels by 16%.
3Gross Booking Value (GBV) increased by 31% year-over-year to $15.6 billion in Q3 2022.
4Net income for Q3 2022 was $1.21 billion, a significant increase from $833.9 million in Q3 2021. For the nine months ended September 30, 2022, net income was $1.57 billion, compared to a net loss of $406.5 million in the prior year period.
5Adjusted EBITDA grew by 32% year-over-year to $1.46 billion for Q3 2022, and by 89% to $2.40 billion for the first nine months of 2022.
6Free Cash Flow for Q3 2022 was $960.0 million, more than doubling from $529.2 million in Q3 2021.
7The company repurchased $1.0 billion of its Class A common stock during Q3 2022 as part of its recently approved $2.0 billion share repurchase program.

Airbnb, Inc. Quarterly Report for Q3 Ended Sep 30, 2022

Summary

Financial Highlights

Key Highlights

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