Regardless of the glamor of its IPO, Airbnb reported a web lack of $ 4.6 billion in 2020 in its first report on earnings as a public firm.
The resort startup, which is banking on a rebound in journey, generated $ 3.4 billion in income final 12 months, down 30% year-over-year. Though the pandemic hit the journey trade, Airbnb’s web loss was additionally attributable to $ 2.8 billion in fairness compensation spending incurred when it went public in December.
Within the fourth quarter, these bills resulted in a staggering web lack of $ 3.9 billion. However that wasn’t the one cause: Within the final three months of the 12 months, Airbnb generated $ 859 million in income, down 22% year-over-year.
Nonetheless, issues might have been a lot worse.
With most main cities stranded final 12 months, Airbnb predicted that its 2020 income might be lower than half of its $ 4.8 billion revenue in 2019. In a single day, the corporate misplaced $ 1 billion in bookings and was compelled to put off 25% of its workers.
In August, journey began to extend and Airbnb introduced that it will go public by the top of the 12 months.
In a letter to shareholders on Thursday, Airbnb stated 2020 has demonstrated the corporate’s “resilience”. The letter had a hopeful tone that journey would proceed to open up and that Airbnb could be prepared when it did.
Throughout Airbnb’s first earnings name as a public firm, CEO Brian Chesky described the historical past of the corporate – from its early days in San Francisco to the pandemic and its IPO. “We’re nonetheless in a pandemic and lots of people are struggling,” he stated. “We all know how fortunate we’re to be within the place we discover ourselves in.”
He stated that regardless of the “greatest disaster the journey trade has ever seen”, Airbnb’s enterprise mannequin was “inherently adaptable”.
“We do not suppose we’ll ever return to the journey world in 2019,” Chesky stated. “A Zoom world is a world the place individuals can make money working from home or from any dwelling on Airbnb.” With elevated flexibility, individuals ebook prolonged weekends or journey for weeks or months at a time. “Lots of people watch the snow,” he says.
Earlier than its outcomes, Airbnb’s market cap was $ 108.8 billion, after closing at $ 200 per share on February 24. The closing worth was $ 182 per share on Thursday, after the Nasdaq Composite fell 3%. (Airbnb launched its earnings after the market closed.)
Airbnb shares soared on the primary day of buying and selling in December. Previous to the IPO, the corporate valued the shares at $ 68. The value instantly jumped to $ 146.