Slide 1: Q4 2023 Shareholder Letter
Q4 2023 Shareholder Letter
Slide 2: Key Financial Measures Q4 2023 and FY 2023
Key Financial Measures Q4 2023 FY 2023 $2.2B $9.9B Revenue Q4 revenue of $2.2 billion increased 17% from Q4 2022 driven by continued strength in travel demand as well 17% Y/Y 18% Y/Y as a foreign exchange rate (“FX”) tailwind. 14% Y/Y (ex-FX) 17% Y/Y (ex-FX) 100% Y/4Y 106% Y/4Y $(349)M $4.8B Net Inc
Slide 3: Q4 2023 Shareholder Letter
Q4 2023 Shareholder Letter Airbnb ended 2023 with another strong quarter. In Q4, Nights and Experiences Booked totaled 99 million, growing 12% year-over-year, and marking our highest fourth quarter ever. Revenue of $2.2 billion grew 17% year-over-year (14% ex-FX). Q4 net loss was $349 million and ex
Slide 4: Business Highlights
interest income. Adjusted Net Income Margin was 22% in Q4 2023, up significantly compared to net income margin of 17% in Q4 2022. • Q4 Adjusted EBITDA was $738 million, up 46% year-over-year. Adjusted EBITDA increased to $738 million in Q4 2023 from $506 million in Q4 2022, which demonstrates the co
Slide 5: Results from our 2023 Winter Release
• We’re driving affordability for guests. Throughout 2023, we introduced several features to help provide more affordable options for guests, from new pricing tools for Hosts to increased price transparency for guests. We’re encouraged by the results. Since launching these features, 1.4 million Host
Slide 6: Host tools in the Listings tab
their listings. These tools include a redesigned interface making it easy for Hosts to add listing details, an AI-powered photo tour, and smart lock integration, which enables Hosts with listings in the U.S. and Canada to connect compatible smart locks to their Airbnb account and automatically gener
Slide 7: Guest Favorites
A CLOSER LOOK Guest Favorites The best way to find a great home is to find the homes guests love most. As part of the 2023 Winter Release, we introduced Guest Favorites—a collection of the 2 million most loved homes on Airbnb, based on ratings, reviews, and reliability from over half a billion trips
Slide 8: The Listings tab
The Listings tab Managing a listing is one of the most essential parts of being a Host. With the launch of the redesigned Listings tab, we’ve given Hosts powerful new tools to easily manage their listings and showcase what makes their homes special. AI-powered photo tour All-new listing editor Smart
Slide 9: Q4 and FY 2023 Business and Financial Performance
Q4 and FY 2023 Business and Financial Performance Q4 2023 98.8M $15.5B Nights & Experiences Booked Gross Booking Value 12% Y/Y 15% Y/Y 30% Y/4Y 13% Y/Y (ex-FX) 81% Y/4Y FY 2023 448.2M $73.3B Nights & Experiences Booked Gross Booking Value 14% Y/Y 16% Y/Y 37% Y/4Y 16% Y/Y (ex-FX) 93% Y/4Y During Q4 2
Slide 10: Regional highlights: Latin America and Asia Pacific
• Continued strength of Nights and Experiences Booked in Latin America. In Latin America, Nights and Experiences Booked were 22% higher than Q4 2022, with continued strength in Mexico and Brazil. In addition, we saw gross nights booked on an origin basis in Chile, Ecuador and Peru more than double i
Slide 11: Trip length, average daily rates and supply
Trip length During Q4 2023, long-term stays of 28 days accounted for 19% of gross nights booked, up slightly from the 18% level seen in Q3 2023. During our 2023 Summer Release, we announced that we would make a number of improvements to help make monthly stays more affordable. As of Q4 2023, roughly
Slide 12: New York City short-term rental rules update
its implementation, we’ve seen some more Hosts offering their homes for stays of 30 days or longer and an acceleration of year-over-year growth in nights booked for long-term stays. We have also seen greater year-over-year nights booked in surrounding areas. Since the law went into effect, New York
Slide 13: Q4 2023 and FY 2023 financial results
Q4 2023 $2.2B $(349)M $738M Revenue Net Income (Loss) Adjusted EBITDA 17% Y/Y $489M Adjusted Net Income $707M (ex-FX) 14% Y/Y (ex-FX) $(316)M (ex-FX) $506M Q4 2022 100% Y/4Y $319M Q4 2022 $(276)M Q4 2019 $(351)M Q4 2019 $63M $46M Net Cash Provided by (Used In) Free Cash Flow Operating Activities $45
Slide 14: Operating expenses and net income
Operating expenses in Q4 2023 included the impact of $290 million of stock-based compensation expense, which is excluded from Adjusted EBITDA. All operating expense line-items (excluding the impact of stock-based compensation expense), with the exception of general and administrative, increased more
Slide 15: Stock-based compensation and taxes
due to the accounting for our restricted stock unit (“RSU”) awards, which has changed over time. We anticipate a similar year-over-year growth rate for SBC expense in 2024. Beyond 2024, after the last of the double-trigger RSUs (which we stopped issuing after our IPO in December 2020) have vested or
Slide 16: Quarterly Revenue and Net Income
Quarterly Revenue ($M) Revenue increased 17% from Q4 2022 to $2.2 billion, driven by continued strength in demand and an FX tailwind. $3,000M Y/Y Change $3,000M Y/Y Change $3,000M 17% Y/Y Change 17% $2,250M 24% 17% $2,250M 24% $2,250M 24% $2,218 $2,218 $1,500M 32% $1,902 $2,218 $1,500M 32% $1,902 $1
Slide 17: Quarterly Operating Cash Flow and Free Cash Flow
Quarterly Net Cash Provided by (Used in) Operating Activities ($M) Q4 2023 net cash provided by operating activities was $63 million, primarily lower year-over-year due to non-recurring tax items. $600M $600M Net 24% Net cash cash provided provided by by (used (used in) in) operating operating activ
Slide 18: Shares (M)
Shares (M) We repurchased $2.25 billion of our shares during 2023, reducing our fully diluted share count to 676 million as of year-end. 800M Stock Based Awards & 702 694 676 Warrants Outstanding 68 63 38 Common Shares 600M Outstanding 634 631 638 400M 200M 0M Dec 2021 Dec 2022 Dec 2023 18
Slide 19: Balance Sheet and Cash Flows, Capital Allocation
Balance Sheet and Cash Flows For the three months ended December 31, 2023, we reported $63 million of net cash provided by operating activities and $46 million of FCF, compared to $463 million and $455 million, respectively, for the three months ended December 31, 2022.6 The year-over-year decrease
Slide 20: Outlook
Due to particularly strong growth in Q1 2023 (19%), impacting year-over-year comparisons, we expect the growth rate of nights booked in Q1 2024 to moderate relative to Q4 2023. We expect ADR for the quarter to be flat to slightly up compared to Q1 2023. Since our IPO in 2020, we have generated over
Slide 21: Forward-Looking Statements
expectations regarding travel trends and the travel industry generally; the Company’s strategic priorities and investments, including marketing spend; the Company's expectations with respect to the use of AI; the Company’s expectations with respect to the demand for bookings, and expectations with r
Slide 22: Non-GAAP Financial Measures
The information that can be accessed through hyperlinks or website addresses included herein is deemed not to be incorporated in or part of this letter. Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the United States
Slide 23: Adjusted EBITDA limitations
operating decisions, including those related to operating expenses, evaluating performance, and performing strategic planning and annual budgeting. Adjusted EBITDA has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related
Slide 24: Free Cash Flow and constant currency
the time of booking. Free Cash Flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by (used in) operating activities. Free Cash Flow does not reflect our ability to meet futur
Slide 25: Quarterly Summary
Quarterly Summary 2019 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Nights and 81.3M 83.9M 85.9M 75.8M 102.1M 103.7M 99.7M 88.2M 121.1M 115.1M 113.2M 98.8M Experiences Booked Y/Y 59% 25% 25% 20% 19% 11% 14% 12% Y/2019 26% 24% 16% 16% 49% 37% 32% 30% Gross Booking Value $9.9B $9.9B $9.6B $8.6B $17.2
Slide 26: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations Unaudited (in millions, except per share amounts) Three Months Ended Year Ended December 31 December 31 2022 2023 2022 2023 Revenue $1,902 $2,218 $8,399 $9,917 Costs and expenses: Cost of revenue 345 384 1,499 1,703 Operations and support (1) 260 271 1
Slide 27: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets Unaudited (in millions) December 31 2022 2023 Assets Current assets: Cash and cash equivalents $7,378 $6,874 Short-term investments 2,244 3,197 Funds receivable and amounts held on behalf of customers 4,783 5,869 Prepaids and other current assets 456 569 Total c
Slide 28: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows Unaudited (in millions) Year Ended December 31 2022 2023 Cash flows from operating activities: Net income $1,893 $4,792 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 81 44 Stock-based compen
Slide 29: Key Business Metrics
Key Business Metrics Three Months Ended Year Ended December 31 December 31 2022 2023 2022 2023 Nights and Experiences Booked 88.2M 98.8M 393.7M 448.2M Gross Booking Value $13.5B $15.5B $63.2B $73.3B We track certain key business metrics to measure our performance, identify trends, formulate financia
Slide 30: 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 31: 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 Sep
Slide 32: 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
Slide 33: Tiny details. Big difference.
Tiny details. Big difference. A list of rooms and spaces could have easily been… a list. But to us, it was an opportunity— to illustrate that whether it’s in your home or in our app, when you care about every part of the experience, it shows. Here’s to big (and small) things in 2024.
Slide 34: Slide 34