01—Abstract
Summary
Summary of the 10-Q filed May 8, 2024. Cited figures are marked; the original filing is the authoritative source.
Airbnb, Inc. reported a strong first quarter for 2024, demonstrating robust growth and improved profitability.
Revenue increased by 18% year-over-year to $2.1 billiona, driven by a 9.5% rise in Nights and Experiences Booked and a 12% increase in Gross Booking Value (GBV). This growth was supported by continued strong travel demand and a modest increase in Average Daily Rate (ADR). The company also benefited from the earlier timing of Easter compared to the previous year.
Profitability saw a significant boost, with net income surging 126% to $264 millionb and Adjusted EBITDA growing 62% to $424 million. This was attributed to revenue growth, higher interest income, and effective cost management.
The company also generated strong operating cash flow of $1.9 billionc and Free Cash Flow of $1.9 billion, indicating healthy operational efficiency and cash generation. During the quarter, Airbnb continued its commitment to shareholder returns by repurchasing $750 million of its Class A common stock, with $6.0 billion remaining under its repurchase program.
02—Key points
Key Highlights
- Revenue increased 18% to $2.1 billion in Q1 2024, driven by a 9.5% rise in Nights and Experiences Booked and a 12% increase in Gross Booking Value (GBV).
- Net income grew significantly by 126% to $264 million, showcasing improved profitability.
- Adjusted EBITDA increased by 62% to $424 million, highlighting strong operational performance and margin expansion.
- Net cash provided by operating activities was $1.9 billion, and Free Cash Flow was also $1.9 billion, demonstrating robust cash generation.
- The company repurchased $750 million of its Class A common stock, underscoring its commitment to returning capital to shareholders.
- Operating expenses, while increasing in absolute terms, grew at a slower pace than revenue, contributing to margin expansion, with notable increases in Product Development and Sales & Marketing expenses.
- Interest income rose 38% to $202 million, benefiting from higher cash balances and increased interest rates.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Airbnb, Inc. kept $0.12.
- Revenue$2.14B100.0%
- Cost of revenue−$480.0M22.4%
- Gross profit$1.66B77.6%
- Operating costs−$1.56B72.9%
- Operating income$101.0M4.7%
- Interest, other & tax$163.0M7.6%
- Net income$264.0M12.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 8, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $2.14B$1.82B | +17.8% |
| Cost of Revenue | $480.00M$428.00M | +12.1% |
| Gross Profit | $1.66B$1.39B | +19.6% |
| R&D Expenses | $475.00M$420.00M | +13.1% |
| Operating Expenses | $2.04B$1.82B | +12.0% |
| Operating Income | $101.00M-$5.00M | +2120.0% |
| Net Income | $264.00M$117.00M | +125.6% |
| Shares Outstanding (Basic) | 638.00M634.00M | +0.6% |
| Shares Outstanding (Diluted) | 654.00M670.00M | −2.4% |
05—Questions
Frequently Asked Questions
What drove Airbnb's revenue growth in the first quarter of 2024?
Airbnb's revenue grew by 18% to $2.1 billion primarily due to a 9.5% increase in Nights and Experiences Booked, leading to a 12% increase in Gross Booking Value (GBV). A modest increase in Average Daily Rate (ADR) and the shift in the timing of Easter from Q2 2023 to Q1 2024 also contributed to the growth.
How did Airbnb's profitability change in Q1 2024?
Profitability significantly improved. Net income increased by 126% to $264 million, and Adjusted EBITDA grew by 62% to $424 million. This improvement was driven by strong revenue growth, increased interest income, and disciplined cost management.
What is Airbnb's cash flow situation, and how is it using its cash?
The company generated robust cash flow, with net cash from operations at $1.9 billion and Free Cash Flow at $1.9 billion for Q1 2024. Airbnb continued to return capital to shareholders by repurchasing $750 million of its Class A common stock, with $6.0 billion remaining under its share repurchase authorization.
Are there any significant risks or contingencies highlighted in this filing?
The filing mentions ongoing tax audits and inquiries, particularly concerning lodging taxes and withholding taxes on host payments, with potential liabilities estimated in the hundreds of millions of dollars. While the company believes it has adequately reserved for these contingencies, there remains a possibility of outcomes exceeding these reserves. Legal and regulatory matters are also ongoing, though the company currently believes their resolution will not have a material adverse effect on its financial condition.
06—Continue