Slide 1: Q2 2023 Shareholder Letter
Q2 2023 © 2023 MATTEL. ©2023 WBEI. Shareholder Letter
Slide 2: Key Financial Measures Q2 2023
Key Financial Measures Q2 2023 Revenue $2.5B Revenue of $2.5 billion increased 18% from Q2 2022 18% Y/Y demonstrating continued strong travel demand. 19% Y/Y (ex-FX) 105% Y/4Y Net Income $650M Q2 net income of $650 million was a $271 million improvement $662M (ex-FX) from Q2 2022. Net income margin
Slide 3: Q2 2023 Shareholder Letter and Financial Results
Q2 2023 Shareholder Letter Q2 marked another quarter of strong results for Airbnb. Nights and Experiences Booked exceeded 115 million. Revenue of $2.5 billion grew 18% year-over-year (19% ex-FX). Net income was $650 million—our most profitable Q2 on a GAAP basis. Adjusted EBITDA was $819 million, wh
Slide 4: Business Highlights
• Q2 Free Cash Flow was $900 million, up 13% year-over-year. Net cash provided by operating activities increased to $909 million in Q2 2023 from $801 million in Q2 2022. The increase in cash flow was driven by revenue and bookings growth as well as net margin expansion. Our TTM FCF was $3.9 billion,
Slide 5: Results from our 2023 Summer Release
• Supply growth continued to accelerate. In every quarter since our 2020 IPO, we’ve seen acceleration in the year-over-year growth of our total active listings (excluding China). In Q2 2023, we grew supply 19% compared to Q2 2022, up from 18% in Q1 2023, and we added more net active listings than an
Slide 6: Monthly Stays
Monthly Stays In May, we took three important steps to make longer stays more affordable for our guests. First, for stays over three months, we significantly reduced the guest service fee after the third month. Second, we introduced pay by bank allowing guests in the U.S. to save money on stays over
Slide 7: Pricing Tools
A CLOSER LOOK Pricing Tools 58% of Hosts told us it’s challenging to set the right price, and many new Hosts had difficulty finding and using our pricing tools. As part of the 2023 Summer Release, we redesigned these tools and added new features to help Hosts set competitive prices. See the total pr
Slide 8: Wishlists
A CLOSER LOOK Wishlists Over 50% of wishlisted bookings come from guests planning more complicated trips, like international travel. So we added a collection of new features to make it easier for guests to use wishlists to plan a great trip. See availability at a glance A new availability calendar a
Slide 9: The Barbie Malibu DreamHouse
ONLY ON AIRBNB The Barbie Malibu DreamHouse Airbnb is known for one-of-a-kind listings. In celebration of the premiere of Barbie™ The Movie, we partnered with Warner Bros. and Mattel to transform a home into the Barbie Malibu DreamHouse, launched under our Only On Airbnb program. The DreamHouse was
Slide 10: Meet Ken.
Meet Ken. He’s always been “Just Ken”—until now! This summer, it’s Ken’s turn to take hosting for a spin. Ken has revamped part of the Barbie Malibu DreamHouse with everything he loves (rollerblading, anyone?). And though guests can clearly see his, ahem, Ken-rgy, the Barbie signature pink remains e
Slide 11: Q2 2023 Business and Financial Performance
Q2 2023 Business and Financial Performance Q2 2023 115.1M $19.1B Nights & Experiences Booked Gross Booking Value 11% Y/Y 13% Y/Y 37% Y/4Y 13% Y/Y (ex-FX) 94% Y/4Y During Q2 2023, we had 115.1 million Nights and Experiences Booked—our highest second quarter ever. While we saw strong growth across all
Slide 12: Asia Pacific growth and International Expansion
• In Asia Pacific, Nights and Experiences Booked saw 24% year-over-year growth, the most significant growth across the regions, as travel there continues to recover. This region has historically been reliant on cross-border travel. While total nights in Asia Pacific are still down compared to pre-pa
Slide 13: Average Daily Rates and Supply
Average Daily Rates ADR was $166 in Q2 2023, representing a 1% increase from Q2 2022. Excluding the impact of FX, ADR in Q2 2023 increased 2% from Q2 2022. ADR remained stable on a year-over-year basis as increases in prices listed by Hosts were offset by guests’ willingness to pay and mix shift int
Slide 14: Q2 2023 Revenue, Net Income, Adjusted EBITDA
Q2 2023 $2.5B $650M $819M Revenue Net Income Adjusted EBITDA 18% Y/Y $662M ex-FX $831M ex-FX 19% Y/Y (ex-FX) $379M Q2 2022 $711M Q2 2022 105% Y/4Y $(297)M Q2 2019 $(42)M Q2 2019 $909M $900M Net Cash Provided by Free Cash Flow Operating Activities 13% Y/Y 13% Y/Y 644% Y/4Y 498% Y/4Y In Q2 2023, reven
Slide 15: Quarterly Revenue, Net Income and Adjusted EBITDA
Quarterly Revenue ($M) Revenue of $2.5 billion grew 18% from Q2 2022 demonstrating continued strong travel demand. $3,000M Y/Y Change 18% 58% $2,000M $2,484 34% $2,104 $1,000M $1,214 $0M Q2 2019 Q2 2022 Q2 2023 Quarterly Net Income (Loss) ($M) Q2 net income of $650 million increased 26% year-over-ye
Slide 16: Operating Cash Flow and Free Cash Flow
Quarterly Net Cash Provided by Operating Activities ($M) Q2 2023 cash provided by operating activities was $909 million. $1,800M 37% Net cash provided by 38% operating activities % of revenue $750M $909 $801 $500M $250M 13% $152 $0M Q2 2019 Q2 2022 Q2 2023 Quarterly Free Cash Flow ($M) We generated
Slide 17: Shares (M)
Shares (M) We’re effectively managing share dilution and have repurchased a total of $2.5B since announcing our share repurchase program. 800M Stock Based Awards & 702 705 686 Warrants Outstanding 83 66 52 Common Shares 600M Outstanding 400M 619 639 634 200M 0M June 2021 June 2022 June 2023 17
Slide 18: Balance Sheet and Cash Flows; Outlook
Balance Sheet and Cash Flows For the three months ended June 30, 2023, we reported $909 million of net cash provided by operating activities and $900 million of FCF, compared to $801 million and $796 million, respectively, for the three months ended June 30, 2022.6 The year-over-year increase in FCF
Slide 19: Earnings Webcast; About Airbnb; Forward-Looking Statements
Earnings Webcast Airbnb will host an audio webcast to discuss its second quarter results at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, August 3, 2023. The link to the webcast will be made available on the Investor Relations website at https://investors.airbnb.com. Interested parties can register for t
Slide 20: Forward-Looking Statements and Non-GAAP Financial Measures
as tax assets on the Company’s balance sheet; and the Company’s business strategy, plans, and objectives for future operations. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “appears,” “should,” “expects,” “plans,” “anticipates,” “could,” “outlook,” “int
Slide 21: Non-GAAP Financial Measures
companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and m
Slide 22: Limitations of Adjusted EBITDA
non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect all cash requirements for such replacements or for new capital expenditure requirements; • Adjusted EBITDA excludes stock-based compensation expense, which has bee
Slide 23: Share Repurchases
net income (loss), Adjusted EBITDA, and ADR for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe the presentation of results on a constant currency basis in addition to the U.S. GAAP presentation helps improve the ability to understand our
Slide 24: Quarterly Summary
Quarterly Summary 2019 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Nights and Experiences Booked 81.3M 83.9M 85.9M 75.8M 102.1M 103.7M 99.7M 88.2M 121.1M 115.1M Y/Y 59% 25% 25% 20% 19% 11% Y/2019 26% 24% 16% 16% 49% 37% Gross Booking Value $10.0B $9.8B $9.7B $8.5B $17.2B $17.0B $15.6B $13.5B $20.4B $19.
Slide 25: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations Unaudited (in millions, except per share amounts) Three Months Ended June 30 Six Months Ended June 30 2022 2023 2022 2023 Revenue $2,104 $2,484 $3,613 $4,302 Costs and expenses: Cost of revenue 390 432 753 860 Operations and support (1) 258 317 491 599
Slide 26: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets Unaudited (in millions) December 31, 2022 June 30, 2023 Assets Current assets: Cash and cash equivalents $7,378 $7,905 Short-term investments 2,244 2,435 Funds receivable and amounts held on behalf 4,783 9,144 of customers Prepaids and other current assets 456 5
Slide 27: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows Unaudited (in millions) Six Months Ended June 30 2022 2023 Cash flows from operating activities: Net income $360 $767 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 55 20 Stock-based compensa
Slide 28: Key Business Metrics
Key Business Metrics Three Months Ended June 30 Six Months Ended June 30 2022 2023 2022 2023 Nights and Experiences Booked 103.7M 115.1M 205.8M 236.2M Gross Booking Value $17.0B $19.1B $34.1B $39.5B We track certain key business metrics to measure our performance, identify trends, formulate financia
Slide 29: 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 Dec 31 Ma
Slide 30: 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 Dec 31 Mar 31 Jun 30 201
Slide 31: 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 millions) T
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