Airbnb Q3 2023 Earnings Report
Key Takeaways
Airbnb's Q3 2023 demonstrated strong financial performance with revenue reaching $3.4 billion, a net income of $4.4 billion (including a one-time tax benefit), and adjusted EBITDA of $1.8 billion. Nights and Experiences Booked grew to 113.2 million, and Free Cash Flow was $1.3 billion. The company is closely monitoring macroeconomic trends and geopolitical conflicts that may impact travel demand.
Q3 revenue was $3.4 billion, up 18% year-over-year.
Net income was $4.4 billion, which included a $2.8 billion one-time, non-cash income tax benefit.
Adjusted EBITDA was $1.8 billion, up 26% year-over-year.
Free Cash Flow was $1.3 billion, up 37% year-over-year.
Airbnb
Airbnb
Forward Guidance
For Q4 2023, Airbnb expects revenue between $2.13 billion and $2.17 billion, representing year-over-year growth of 12% to 14%. They anticipate a slightly higher take rate compared to Q4 2022, moderating nights booked growth relative to Q3 2023, and stable to slightly up ADR. A record-high fourth quarter Adjusted EBITDA is expected, with an Adjusted EBITDA margin exceeding Q4 2022, leading to a full-year 2023 Adjusted EBITDA margin approximately 150 bps higher than full-year 2022.
Positive Outlook
- Revenue growth between 12% and 14% year-over-year is expected.
- Implied take rate is anticipated to be slightly higher than Q4 2022.
- ADR is expected to be stable to slightly up compared to the same period last year.
- A record-high fourth quarter Adjusted EBITDA is expected in 2023 on a nominal basis.
- Adjusted EBITDA margin for full-year 2023 is expected to be approximately 150 bps higher than full-year 2022.
Challenges Ahead
- Greater volatility early in Q4 is being observed.
- Macroeconomic trends may impact travel demand.
- Geopolitical conflicts may impact travel demand.
- Nights booked growth in Q4 2023 is expected to moderate relative to Q3 2023.
- The company is closely monitoring these factors.