Airbnb, Inc. · NASDAQ:ABNB
Airbnb — Q3 2022 Earnings Presentation
29 slides from Airbnb's earnings presentation, Nov 1, 2022
Slide 1: Q3 2022 Shareholder Letter
Shareholder Letter Amazing Pools Q airbnb
Slide 2: Q3 2022 key metrics: Nights Booked, GBV, Revenue, Net Income
Q3 2022 99.7M Nights and Experiences Booked In Q3 2022, Nights and Experiences Booked grew 25% compared to the prior year, driven by strength in all regions. 25% Y/Y $15.6B Gross Booking Value (GBV) Strong growth in Nights and Experiences Booked combined with continued higher Average Daily Rates (“A
Slide 3: Q3 2022 Shareholder Letter and Financial Results
Q3 2022 Shareholder Letter Q3 was our biggest and most profitable quarter ever despite geopolitical and macroeconomic headwinds. In Q3 2022, we had nearly 100 million Nights and Experiences Booked, up 25% year-over-year, and $15.6 billion in Gross Booking Value, up 31% year-over-year (or 40% ex-FX).
Slide 4: Business Highlights
• Q3 Free Cash Flow of $960 million was our highest Q3 ever. Q3 2022 net cash provided by operating activities was $966 million, up from $535 million in Q3 2021. The increase in cash flow was driven by revenue growth and net margin expansion. Our TTM FCF was $3.3 billion, representing a TTM FCF marg
Slide 5: November 16: Airbnb 2022 Winter Release
Airbnb Categories On May 11, we introduced a new way to search designed around Airbnb Categories. We created this product because it allows us to highlight our unique inventory and point demand to where we have supply. Ultimately, Airbnb Categories will enable us to be in the inspiration business, m
Slide 6: Meet Melissa.
Meet Melissa. Hosting since 2017 Melissa transformed a passion project—a hand-built cabin nestled on her flower farm—into a listing, Tanglebloom Tiny Cabin, on Airbnb. 6
Slide 7: Nearly 10 years ago, Melissa and her husband crafted an open-air cabin
Nearly 10 years ago, Melissa and her husband crafted an open-air cabin using a blueprint from a local architect and their own might. They intended to use the space to relax, but over the years had less time to spend there—especially after they became new parents. Melissa wanted more time to be with
Slide 8: Q3 2022 Business and Financial Performance
Q3 2022 Business and Financial Performance Q3 2022 99.7M $15.6B Nights & Experiences Booked Gross Booking Value 25% Y/Y 31% Y/Y 40% Y/Y (ex-FX) During Q3 2022, we had our highest ever third quarter of Nights and Experiences Booked of 99.7 million, representing a significant increase from a year ago
Slide 9: Cross-border travel recovery and travel corridors
has historically been reliant on cross-border travel. While still significantly down compared to pre-pandemic periods, we have seen continued sequential recovery in the region, with 65% growth in Q3 2022 compared to a year ago. • As shared in our letter last quarter, all mainland Chinese listings we
Slide 10: Q3 2022 Revenue, Net Income, Adjusted EBITDA
Q3 2022 $2.9B $1.2B $1.5B Revenue Net Income Adjusted EBITDA 29% Y/Y 46% Y/Y 32% Y/Y 36% Y/Y (ex-FX) 61% Y/Y (ex-FX) 44% Y/Y (ex-FX) $966M $960M Net Cash Provided by Free Cash Flow Operating Activities In Q3 2022, revenue was $2.9 billion, our strongest quarter ever, representing a year-over-year in
Slide 11: Adjusted EBITDA for Q3 2022 was $1.5 billion
Adjusted EBITDA for Q3 2022 was $1.5 billion, a significant improvement compared to Adjusted EBITDA in Q3 2021 of $1.1 billion.4 Our Q3 2022 Adjusted EBITDA demonstrated the continued strength of our revenue recovery and the benefit of strong ADRs, coupled with our disciplined spending. Relative to
Slide 12: Quarterly Revenue, Net Income, Adjusted EBITDA
Quarterly Revenue ($M) Q3 2022 revenue of $2.9 billion grew nearly 30% year-over-year. 29% $3,000M Y/Y Change 67% 29% $3,000M $2,884 29% Y/Y Change $3,000M Y/Y Change $2,000M 67% $2,884 $2,237 67% $2,884 $2,000M $2,000M $2,237 $1,000M $2,237 $1,000M $1,000M $0M $0M Q3 2021 Q3 2022 $0M Q3 2021 Q3 202
Slide 13: Quarterly Cash Flow, Free Cash Flow and Shares
Quarterly Net Cash Provided by Operating Activities ($M) Q3 cash provided by operating activities was $966 million. 33% $1,000M Net cash provided 33% by operating activities $1,000M Net % ofcash provided revenue $966 by operating activities $966 % of revenue 24% $500M 24% $500M $535 $535 $0M $0M Q3
Slide 14: Balance Sheet and Cash Flows, Outlook, Earnings Webcast
Balance Sheet and Cash Flows For the three months ended September 30, 2022, we reported $966 million of net cash provided by operating activities and $960 million of FCF, compared to $535 million and $529 million, respectively, for the three months ended September 31, 2021.5 The year-over-year incre
Slide 15: About Airbnb, Forward-Looking Statements
Following the call, a replay of the webcast will be available on the Airbnb Investor Relations website. A telephonic replay will be also available for three weeks following the call at (800) 770-2030 using conference ID: 24053 Investor Relations Contact ir@airbnb.com Press Contact contact.press@airb
Slide 16: Non-GAAP Financial Measures
Risks that contribute to the uncertain nature of the forward-looking statements include, among others, the effects of the COVID-19 pandemic on the Company’s business, including as a result of new strains or variants of the virus, the travel industry, travel trends, and the global economy generally;
Slide 17: Adjusted EBITDA definition
Adjusted EBITDA is defined as net income or loss adjusted for (i) provision for (benefit from) income taxes; (ii) interest income, interest expense, and other income (expense), net; (iii) depreciation and amortization; (iv) stock-based compensation expense and stock-settlement obligations related to
Slide 18: Adjusted EBITDA limitations
• Adjusted EBITDA excludes acquisition-related impacts consisting of gains (losses) recognized on changes in the fair value of contingent consideration arrangements. The contingent consideration, which was in the form of equity, was valued as of the acquisition date and is marked-to-market at each r
Slide 19: Quarterly Summary
Quarterly Summary 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Nights and Experiences Booked 64.4M 83.1M 79.7M 73.4M 102.1M 103.7M 99.7M Y/Y 13% 197% 29% 59% 59% 25% 25% Gross Booking Value $10.3B $13.4B $11.9B $11.3B $17.2B $17.0B $15.6B Y/Y 52% 320% 48% 91% 67% 27% 31% Gross Booking Value per Night and Experien
Slide 20: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations Unaudited (in thousands, except per share amounts) Three Months Ended September 30 Nine Months Ended September 30 2021 2022 2021 2022 Revenue $2,237,432 $2,884,410 $4,459,564 $6,497,454 Costs and expenses: Cost of revenue 311,580 401,149 860,522 1,153,
Slide 21: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets Unaudited (in thousands) December 31, 2021 September 30, 2022 Assets Current assets: Cash and cash equivalents $6,067,438 $7,523,688 Marketable securities 2,255,038 2,103,898 Restricted cash 14,764 1,520 Funds receivable and amounts held on behalf of customers 3
Slide 22: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows Unaudited (in thousands) Nine Months Ended September 30 20211 2022 Cash flows from operating activities: Net income (loss) $(406,535) $1,574,337 Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation and amort
Slide 23: Condensed Consolidated Statements of Cash Flows Continued
Condensed Consolidated Statements of Cash Flows Continued Unaudited (in thousands) Nine Months Ended September 30 20211 2022 Cash flows from financing activities: Taxes paid related to net share settlement of equity awards $(154,633) $(491,366) Proceeds from exercise of stock options 104,588 19,122
Slide 24: Key Business Metrics
Key Business Metrics Three Months Ended September 30 Nine Months Ended September 30 2021 2022 2021 2022 Nights and Experiences Booked 79.7M 99.7M 227.2M 305.5M Gross Booking Value $11.9B $15.6B $35.6B $49.7B We track certain key business metrics to measure our performance, identify trends, formulate
Slide 25: Adjusted EBITDA Reconciliation
Reconciliations of Non-GAAP Financial Measures The following is a reconciliation of Adjusted EBITDA to the most comparable GAAP measure, net income (loss). Adjusted EBITDA Reconciliation (in millions, except percentages) Three Months Ended Mar 31 Jun 30 Sept 30 Dec 31 Mar 31 Jun 30 Sept 30 2021 2021
Slide 26: Free Cash Flow Reconciliation
The following is a reconciliation of Free Cash Flow to the most comparable GAAP measure, net cash provided by (used in) operating activities. Free Cash Flow Reconciliation (in millions, except percentages) Three Months Ended Mar 31 Jun 30 Sept 30 Dec 31 Mar 31 Jun 30 Sept 30 2021 2021 2021 2021 2022
Slide 27: Reconciliation of Non-GAAP Operating Expenses
The following is a reconciliation of operating expense line items less stock-based compensation and acquisition-related impacts consisting of gains (losses) recognized on changes in the fair value of contingent consideration arrangements. Reconciliation of Non-GAAP Operating Expenses (in thousands)
Slide 28: Glossary
Glossary Nights and Nights and Experiences Booked on our platform in a period represents the Experiences Booked sum of the total number of nights booked for stays and the total number of seats booked for experiences, net of cancellations and alterations that occurred in that period. Gross Booking Va
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