01—Abstract
Summary
Summary of the 10-Q filed August 3, 2023. Cited figures are marked; the original filing is the authoritative source.
Airbnb, Inc. reported strong financial performance for the second quarter and first half of 2023.
Revenue grew by 18% year-over-year to $2.48 billiona for the quarter and 19% to $4.30 billion for the first half, driven by an 11% increase in Nights and Experiences Booked and stable Average Daily Rate (ADR). Net income saw a significant increase of 72% to $650 million for the quarter, attributed to revenue growth, higher interest income, and cost management, including the absence of restructuring charges incurred in the prior year. The company demonstrated robust cash flow generation, with net cash from operating activities increasing to $909 million for the quarter and Free Cash Flow reaching $900 million.
This strong performance was supported by growth in revenue and unearned fees. Airbnb also continued its capital allocation strategy, repurchasing $507 millionb of its common stock in the second quarter, with $2.0 billion remaining under its share repurchase program. The company's balance sheet remains solid, with significant cash and short-term investments totaling $10.3 billion.
02—Key points
Key Highlights
- Revenue increased by 18% to $2.48 billion in Q2 2023 and by 19% to $4.30 billion in H1 2023 compared to the prior year.
- Nights and Experiences Booked grew by 11% in Q2 and 15% in H1, indicating continued strong travel demand.
- Net income surged by 72% to $650 million in Q2 2023, benefiting from revenue growth and disciplined cost management.
- Free Cash Flow reached $900 million in Q2 2023, up from $796 million in the prior year, reflecting strong operational performance.
- The company repurchased $507 million of common stock in Q2 2023, demonstrating a commitment to returning capital to shareholders.
- Cash and cash equivalents and short-term investments totaled $10.3 billion as of June 30, 2023, providing significant liquidity.
- Interest income saw a substantial increase, rising by 855% in Q2 2023, driven by higher cash balances and interest rates.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2023, Airbnb, Inc. kept $0.26.
- Revenue$2.48B100.0%
- Cost of revenue−$432.0M17.4%
- Gross profit$2.05B82.6%
- Operating costs−$1.53B61.6%
- Operating income$523.0M21.1%
- Interest, other & tax$127.0M5.1%
- Net income$650.0M26.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2023filed August 3, 2023Financial Statements
Q2 FY2023 against Q2 FY2022
| Line item | Q2 FY2023Q2 FY2022 | Change |
|---|---|---|
| Revenue | $2.48B$2.10B | +18.1% |
| Cost of Revenue | $432.00M$390.00M | +10.8% |
| Gross Profit | $2.05B$1.71B | +19.7% |
| R&D Expenses | $451.00M$375.00M | +20.3% |
| Operating Expenses | $1.96B$1.74B | +13.0% |
| Operating Income | $523.00M$369.00M | +41.7% |
| Net Income | $650.00M$379.00M | +71.5% |
| Shares Outstanding (Basic) | 635.00M638.00M | −0.5% |
| Shares Outstanding (Diluted) | 665.00M684.00M | −2.8% |
05—Questions
Frequently Asked Questions
How did Airbnb's revenue perform in the second quarter of 2023?
Airbnb's revenue increased by 18% to $2.48 billion in the second quarter of 2023, compared to $2.10 billion in the same period of 2022. This growth was primarily driven by an 11% increase in Nights and Experiences Booked and a stable Average Daily Rate (ADR).
What is the company's net income trend?
Net income for the second quarter of 2023 significantly increased by 72% to $650 million, compared to $379 million in the prior year's quarter. This improvement was due to revenue growth, increased interest income, disciplined cost management, and the absence of restructuring charges recorded in the prior year.
How is Airbnb managing its cash and liquidity?
Airbnb maintained a strong liquidity position with $10.3 billion in cash, cash equivalents, and short-term investments as of June 30, 2023. The company generated $909 million in net cash from operating activities and $900 million in Free Cash Flow in the second quarter of 2023, indicating robust cash generation.
What is Airbnb's approach to capital allocation?
Airbnb continues to return capital to shareholders through share repurchases. In the second quarter of 2023, the company repurchased $507 million of its common stock. It also has $2.0 billion available under its recently approved share repurchase program, demonstrating confidence in its financial outlook.
06—Continue