01—Abstract
Summary
Summary of the 10-Q filed November 3, 2022. Cited figures are marked; the original filing is the authoritative source.
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 billiona. 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.
02—Key points
Key Highlights
- Revenue 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.
- Nights and Experiences Booked grew by 25% year-over-year to 99.7 million in Q3 2022, exceeding pre-pandemic (Q3 2019) levels by 16%.
- Gross Booking Value (GBV) increased by 31% year-over-year to $15.6 billion in Q3 2022.
- Net 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.
- Adjusted 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.
- Free Cash Flow for Q3 2022 was $960.0 million, more than doubling from $529.2 million in Q3 2021.
- The 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2022, Airbnb, Inc. kept $0.42.
- Revenue$2.88B100.0%
- Cost of revenue−$401.0M13.9%
- Gross profit$2.48B86.1%
- Operating costs−$1.28B44.4%
- Operating income$1.20B41.7%
- Interest, other & tax$11.0M0.4%
- Net income$1.21B42.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2022filed November 3, 2022Financial Statements
Q3 FY2022 against Q3 FY2021
| Line item | Q3 FY2022Q3 FY2021 | Change |
|---|---|---|
| Revenue | $2.88B$2.24B | +28.9% |
| Cost of Revenue | $401.00M$311.58M | +28.7% |
| Gross Profit | $2.48B$1.93B | +28.9% |
| R&D Expenses | $366.00M$344.41M | +6.3% |
| Operating Expenses | $1.68B$1.39B | +21.3% |
| Operating Income | $1.20B$851.97M | +41.2% |
| Net Income | $1.21B$833.89M | +45.6% |
| Shares Outstanding (Basic) | 639.00M621.01M | +2.9% |
| Shares Outstanding (Diluted) | 680.00M681.92M | −0.3% |
05—Questions
Frequently Asked Questions
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.
06—Continue