Airbnb formally filed for an IPO and revealed its funds for the first time on Monday.
The firm’s IPO prospectus reveals $2.5 billion in income by means of the first 9 months of 2020, down 32% year-over-year, with a net loss of almost $700 million, rising from $322 million within the year-ago interval.
Airbnb’s gross month-to-month bookings fell by 72% in April, a low for 2020, and have recovered by means of this year but are nonetheless trending down in contrast to 2019. The firm did post net income of $219 million within the third quarter.
It’s been a curler coaster year for Airbnb and others together with Seattle-based Expedia Group as the pandemic crushes the journey trade amid varied restrictions and mandates. Airbnb laid off 25% of its 7,500-person workforce, slashed advertising expenses, and raised $2 billion in debt financing to climate the COVID-19 storm.
From the prospectus:
“In early 2020, as COVID-19 disrupted travel across the world, Airbnb’s business declined significantly. But within two months, our business model started to rebound even with limited international travel, demonstrating its resilience. People wanted to get out of their homes and yearned to travel, but they did not want to go far or to be in crowded hotel lobbies. Domestic travel quickly rebounded on Airbnb around the world as millions of guests took trips closer to home. Stays of longer than a few days started increasing as work-from-home became work-from-any-home on Airbnb. We believe that the lines between travel and living are blurring, and the global pandemic has accelerated the ability to live anywhere. Our platform has proven adaptable to serve these new ways of traveling.”
Airbnb listed Expedia as a competitor in its IPO submitting. Expedia owns vrbo, a short-term rental platform that competes immediately with Airbnb.
Speaking on the GeekWire Summit last month, Expedia CEO Peter Kern noted how trip leases have been one vibrant spot for journey companies as people look for protected methods to go on trip.
“Definitely, we’ve seen strength in the alternative market for vrbo — and I’m sure our friends at Airbnb are seeing similar strengths,” Kern said.
Asked about potential partnerships with Airbnb, Kern said nothing was imminent but that Expedia is “always open to conversations about how we can help somebody and help ourselves at the same time.”
“We all have our advantages,” Kern said. “[Airbnb] has a great brand; we’ve got the ‘everything of travel’; Bookings.com is good at other things. How we participate in the market and how we expand our breadth will be an interesting question.”
Kern added that Expedia is working on bettering the way it surfaces different lodging content material by means of its varied platforms past vrbo. “That’s a big opportunity for us,” he said.
Expedia’s third quarter income sunk 58% to $1.5 billion, in contrast to $3.56 billion the year before. In addition to vrbo, different Expedia Group journey manufacturers embrace Orbitz, Hotwire, Trivago, Hotels.com, and Egencia as well as to the flagship Expedia.com.
“EXPE’s Q3 results reflect the reality that the travel industry and the world still face a prolonged and bumpy path to recovery, in our view,” RBC Capital wrote in a analysis note.
Airbnb plans to commerce under the ticker ABNB on the Nasdaq. The firm has raised $6.4 billion. Top Silicon Valley tech funding agency Silver Lake bought large stakes in Expedia, Airbnb, and Portland, Ore.-based trip rental platform Vacasa earlier this year.
Click below to see Airbnb’s monetary and bookings efficiency.