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Dec 31, 2020

Airbnb Q4 2020 Earnings Report

Airbnb's Q4 2020 results demonstrated resilience with revenue down only 22% year-over-year and significant improvements in Adjusted EBITDA despite the impact of COVID-19.

Key Takeaways

Airbnb's Q4 2020 revenue reached $859 million, a 22% decrease year-over-year, while net loss was $3.9 billion, impacted by IPO-related charges. Adjusted EBITDA improved significantly to $(21) million, showcasing the company's resilience and cost management.

Q4 2020 revenue was down only 22% year-over-year, demonstrating Airbnb’s resilience.

Q4 2020 net loss was impacted by charges related to our IPO, including $2.8B of stock-based compensation expense.

Q4 2020 Adjusted EBITDA was materially improved from a year ago, despite the impact of COVID-19 on our revenue.

Due to our strong financial discipline in 2020, all operating expenses (excluding stock-based compensation and stock- settlement obligations) were down from a year ago.

Total Revenue
$859M
Previous year: $1.11B
-22.4%
EPS
-$2.43
Previous year: -$0.662
+267.0%
Nights & Experiences Booked
46.3M
Previous year: 75.8M
-38.9%
Gross Booking Value
$5.9B
Previous year: $8.54B
-30.9%
Average Daily Rate
$128
Previous year: $114
+12.3%

Airbnb

Airbnb

Forward Guidance

In the near term, anticipate that year-over-year comparisons for Nights and Experiences Booked, as well as for Gross Booking Value, will be volatile and unreliable measures of the steady-state growth of our business.

Positive Outlook

  • Levels in Q1 2021 will be higher than those of Q1 2020, but lower than Q1 2019.
  • The year-over-year decline in Q1 2021 is expected to be less than that of Q4 2020.
  • Continue to see gradual improvements in guests’ willingness to book stays.
  • Will be focused on making continued progress in expanding our Adjusted EBITDA margin as we scale.
  • Plan to continue to improve our variable costs, materially increase our marketing efficiency and tightly manage our fixed expenses.

Challenges Ahead

  • Year-over-year comparisons for Nights and Experiences Booked, as well as for Gross Booking Value, will be volatile and unreliable measures of the steady-state growth of our business.
  • It is too early to predict overall recovery trends for the travel industry and their impact on our business.
  • Continue to have limited visibility for growth trends in 2021 given the difficulty in determining the pace of vaccine roll-outs and the related impact on willingness to travel.
  • Not providing an outlook for the rest of 2021 at this time.
  • Anticipate our Adjusted EBITDA margin to also be at its lowest during Q1.