10-QPeriod: Q1 FY2024

Airbnb, Inc. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 8, 2024For Securities:ABNB

Summary

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 billion, 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 million 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 billion 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.

Financial Highlights

42 data points
Beta

Revenue

$2.14B

77.6% Gross Margin

Net Income

$264.00M

12.3% Net Margin

Total Assets

$24.54B

Cash & Equivalents

$7.83B

Free Cash Flow

$1.92B

Financial Statements
Beta
Revenue$2.14B
Cost of Revenue$480.00M
Gross Profit$1.66B
R&D Expenses$475.00M
Operating Expenses$2.04B
Operating Income$101.00M
Net Income$264.00M
Shares Outstanding (Basic)638.00M
Shares Outstanding (Diluted)654.00M

Key Highlights

  • 1Revenue 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).
  • 2Net income grew significantly by 126% to $264 million, showcasing improved profitability.
  • 3Adjusted EBITDA increased by 62% to $424 million, highlighting strong operational performance and margin expansion.
  • 4Net cash provided by operating activities was $1.9 billion, and Free Cash Flow was also $1.9 billion, demonstrating robust cash generation.
  • 5The company repurchased $750 million of its Class A common stock, underscoring its commitment to returning capital to shareholders.
  • 6Operating 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.
  • 7Interest income rose 38% to $202 million, benefiting from higher cash balances and increased interest rates.

Frequently Asked Questions

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.

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.

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.

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.