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Sep 30, 2024
Airbnb Q3 2024 Earnings Report
Airbnb's Q3 2024 performance was marked by revenue growth and strong profitability.
Key Takeaways
Airbnb's Q3 2024 revenue increased by 10% year-over-year to $3.7 billion. Net income was $1.4 billion, representing a 37% net income margin. The company generated $1.1 billion in free cash flow during the quarter.
Revenue grew 10% year-over-year to $3.7 billion.
Net income was $1.4 billion, representing a 37% net income margin.
Adjusted EBITDA was $2.0 billion, up 7% year-over-year.
Free cash flow was $1.1 billion, representing a 29% FCF margin.
Airbnb
Airbnb
Forward Guidance
Airbnb expects Q4 2024 revenue to be between $2.39 billion and $2.44 billion, representing year-over-year growth of 8% to 10%. They anticipate the full-year 2024 Adjusted EBITDA Margin to be approximately 35.5% and expect to deliver a full-year 2024 Free Cash Flow Margin several points above Adjusted EBITDA Margin.
Positive Outlook
- Strong demand trends in Q4 2024 across core and expansion markets for both long and short lead times.
- Year-over-year growth of Nights and Experienced Booked in Q4 2024 to be higher than Q3 2024.
- ADR is expected to increase modestly on a year-over-year basis, driven by continued demand for larger and higher priced listings, as well as a small benefit from foreign exchange.
- Revenue of $2.39 billion to $2.44 billion is expected, representing year-over-year growth of 8% to 10%, inclusive of a modest foreign exchange tailwind.
- Full-year 2024 Free Cash Flow Margin is expected to be several points above Adjusted EBITDA Margin.
Challenges Ahead
- Implied take rate in Q4 2024 will be slightly lower on a year-over-year basis, primarily due to one-time benefits recognized from unused gift cards in Q4 2023.
- Excluding these one-time benefits related to gift cards in Q4 2023, revenue growth in Q4 2024 would be approximately two percentage points higher.
- Q4 2024 Adjusted EBITDA Margin is expected to decline relative to the same time period last year due to higher marketing and product development expenses.
- In Q1 2025, the year-over-year growth rate of revenue will be negatively impacted by the comparison to Q1 2024, which benefited from both the timing of Easter and inclusion of Leap Day.
- Unspecified 2025 growth and investment plans.