Airbnb Q2 2023 Earnings Report
Key Takeaways
Airbnb's Q2 2023 results showed significant growth, with revenue increasing by 18% year-over-year to $2.5 billion, net income rising by 72% to $650 million, and free cash flow growing by 13% to $900 million. Nights and Experiences Booked exceeded 115 million, marking a record second quarter for the company.
Revenue reached $2.5 billion, an 18% increase year-over-year (19% ex-FX), driven by growth in Nights and Experiences Booked and stable Average Daily Rate (ADR).
Net income was $650 million, a 72% increase year-over-year, with a net income margin of 26%, the highest second quarter ever.
Adjusted EBITDA increased to $819 million, up 15% year-over-year, demonstrating continued strength and cost discipline.
Free Cash Flow grew to $900 million, a 13% increase year-over-year, driven by revenue and bookings growth, as well as net margin expansion.
Airbnb
Airbnb
Forward Guidance
For Q3 2023, Airbnb expects revenue between $3.3 billion and $3.4 billion, representing year-over-year growth of 14% to 18%. They also anticipate a higher implied take rate and a modest sequential increase in the year-over-year growth rate of Nights and Experiences Booked. A record-high Adjusted EBITDA is expected, with an Adjusted EBITDA margin exceeding Q3 2022. For the full-year 2023, they expect an Adjusted EBITDA margin that is modestly higher than the full-year 2022.
Positive Outlook
- Revenue of $3.3B to $3.4B is expected
- Year-over-year growth of between 14% and 18% expected
- Implied take rate in Q3 2023 will be higher than Q3 2022
- Modest sequential increase in the year-over-year growth rate of Nights and Experiences Booked from Q2 2023 to Q3 2023 is expected
- Expect a record-high Adjusted EBITDA in Q3 2023 on a nominal basis and an Adjusted EBITDA margin that exceeds Q3 2022