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Sep 30, 2022
Airbnb Q3 2022 Earnings Report
Airbnb's Q3 2022 results demonstrated strong growth and profitability despite macroeconomic headwinds
Key Takeaways
Airbnb reported a record Q3 2022 with nearly 100 million Nights and Experiences Booked, $15.6 billion in Gross Booking Value, and $2.9 billion in revenue. The company also achieved a net income of $1.2 billion and free cash flow of $960 million, showcasing its ability to drive growth and profitability at scale.
Nights and Experiences Booked grew by 25% year-over-year to 99.7 million.
Gross Booking Value increased by 31% year-over-year to $15.6 billion (40% ex-FX).
Revenue grew by 29% year-over-year to $2.9 billion (36% ex-FX), marking the highest quarter ever.
Net income reached $1.2 billion, up 46% year-over-year, with a net income margin of 42%.
Forward Guidance
For Q4 2022, Airbnb expects revenue between $1.80 billion and $1.88 billion, representing year-over-year growth of 17% to 23%. They also anticipate Adjusted EBITDA to be up meaningfully on a nominal basis from Q4 2021, with quarterly Adjusted EBITDA margin in-line to modestly higher than last year's margin of 22%.
Positive Outlook
- Promising trends in cross-border travel are being observed.
- There is a renewed interest in urban stays.
- Cancellation rates are stabilizing.
- A strong backlog of future bookings is present.
- Adjusted EBITDA is expected to increase meaningfully.
Challenges Ahead
- Nights and Experiences Booked growth is expected to moderate slightly relative to Q3 2022.
- ADR will face some pressure from FX headwinds.
- ADR will face pressure from business mix.
- Revenue as a share of GBV is expected to decrease relative to Q3 2022, consistent with historical seasonality.
Historical Earnings Impact
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