Airbnb, Inc. · NASDAQ:ABNB
Airbnb — Q3 2023 Earnings Presentation
31 slides from Airbnb's earnings presentation, Nov 1, 2023
Slide 1: Q3 2023 Shareholder Letter
Q3 2023 Shareholder Letter
Slide 2: Key Financial Measures Q3 2023
Key Financial Measures Q3 2023 $3.4B Revenue Revenue of $3.4 billion increased 18% from Q3 2022 driven by strength in travel demand as well as a foreign exchange rate (“FX”) tailwind. 18% Y/Y 14% Y/Y (ex-FX) 107% Y/4Y $4.4B Net Income Q3 net income of $4.4 billion included a one-time income tax bene
Slide 3: Q3 2023 Shareholder Letter
Q3 2023 Shareholder Letter Q3 marked another quarter of strong results for Airbnb. Nights and Experiences Booked exceeded 113 million, growing 14% year-over-year and accelerating from Q2 2023. Revenue of $3.4 billion grew 18% year-over-year (14% ex-FX). Net income of $4.4 billion, or $1.6 billion ex
Slide 4: Business Highlights
• Q3 Adjusted EBITDA was $1.8 billion, up 26% year-over-year. Adjusted EBITDA increased to $1.8 billion in Q3 2023 from $1.5 billion in Q3 2022, which demonstrates the continued strength of our business and discipline in managing our cost structure. Adjusted EBITDA margin was 54% compared to a Q3 20
Slide 5: Results from our 2023 Summer Release
non-urban supply grew at similar rates year-over-year. With over 7 million active listings, we saw relatively similar growth among individual and professional Hosts and believe the majority of new listings are exclusive to Airbnb. Results from our 2023 Summer Release As part of our May 2023 Summer R
Slide 6: November 8: Airbnb 2023 Winter Release
listings in the US, Canada, Australia, UK and France this year, with verified icons appearing on listings starting in February. Next fall, we’ll begin verifying listings in 30 more countries. • Customer service improvements - We want to provide guests with timely and seamless support when they need
Slide 7: Filters
A CLOSER LOOK Filters Many guests have asked for specific filters that they wish were part of the search experience. As part of the fall update, we added our community’s two most popular requests—a filter for pet-friendly stays and another for king beds. Filter for pet-friendly stays Guests can now
Slide 8: Search
A CLOSER LOOK Search About 30% of guests felt that finding the right home was difficult with our search tools. So we introduced a new feature and a design improvement that makes it easier to find the perfect stay.* Redesigned filter button We updated the filter button and icon, moving the button out
Slide 9: Q3 2023 Business and Financial Performance
Q3 2023 Business and Financial Performance Q3 2023 113.2M $18.3B Nights & Experiences Booked Gross Booking Value 14% Y/Y 17% Y/Y 32% Y/4Y 14% Y/Y (ex-FX) 89% Y/4Y During Q3 2023, we had 113.2 million Nights and Experiences Booked—our highest third quarter ever. We saw strong growth across all region
Slide 10: Airbnb's International Expansion
Airbnb’s International Expansion Airbnb is a global brand, and yet there remain many under-penetrated markets across the world. In order to continue scaling Airbnb, we have implemented a playbook consisting of product market fit, raising awareness and driving traffic in several countries. And in the
Slide 11: Regulation
Regulation In September 2023, Local Law 18 went into effect in New York City resulting in a de facto ban on short-term rentals. We believe the city’s short-term rental rules are a blow to its tourism economy and the thousands of New Yorkers and small businesses in the outer boroughs who rely on home
Slide 12: Q3 2023 Financial Performance
Q3 2023 $3.4B $4.4B $1.8B Revenue Net Income Adjusted EBITDA 18% Y/Y $1.6B ex-VA 26% Y/Y 14% Y/Y (ex-FX) $4.3B ex-FX 20% Y/Y (ex-FX) 107% Y/4Y $1.2B Q3 2022 486% Y/4Y $266M Q3 2019 $1.3B $1.3B Net Cash Provided by (Used Free Cash Flow in) Operating Activities $958M Q3 2022 $964M Q3 2022 $(75)M Q3 20
Slide 13: Outlook: Adjusted EBITDA margin, marketing and stock-based compensation
3 percentage points (from 51% in Q3 2022 to 54% in Q3 2023), consistent with our expectations for Q3 2023 Adjusted EBITDA margin to exceed the prior year. In 2023, we pulled forward the timing of marketing spend to be more heavily weighted in the first half of the year as compared to 2022. We contin
Slide 14: Quarterly Revenue and Net Income
Quarterly Revenue ($M) Revenue of $3.4 billion grew 18% from Q3 2022 driven by strength in travel demand and an FX tailwind. $4,000M Y/Y Change 18% $4,000M Y/Y Change $4,000M 29% 18% 18% Y/Y Change $3,000M $3,397 29% $3,000M 29% $3,000M $2,884 $3,397 $2,000M 156% $3,397 $2,884 $2,000M 30% $2,884 $2,
Slide 15: Quarterly Operating Cash Flow and Free Cash Flow
Quarterly Net Cash Provided by (Used in) Operating Activities ($M) Q3 2023 cash provided by operating activities was $1.3 billion. $1,500M 39% $1,500M 39% Net cash provided by Net cash provided by $1,500M 33% 39% (used (used in) operating in) operating Net cash activities provided by % of revenue 33
Slide 16: Shares (M)
Shares (M) We repurchased $500M of Class A common stock during Q3 2023 to help manage the impact of share dilution. 800M Stock Based Awards & 702 698 681 Warrants Outstanding 76 65 42 Common Shares 600M Outstanding 626 633 639 400M 200M 0M Sept 2021 Sept 2022 Sept 2023 16
Slide 17: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows For the three months ended September 30, 2023, we reported $1.3 billion of net cash provided by operating activities and $1.3 billion of FCF, compared to $964 million and $958 million, respectively, for the three months ended September 30, 2022.7 The year-over-year incre
Slide 18: About Airbnb
Investor Relations Contact: ir@airbnb.com Press Contact: contact.press@airbnb.com About Airbnb Airbnb was born in 2007 when two Hosts welcomed three guests to their San Francisco home, and has since grown to over 4 million Hosts who have welcomed over 1.5 billion guest arrivals in almost every count
Slide 19: Forward-Looking Statements and 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 20: Non-GAAP Financial Measures definitions
Free Cash Flow, TTM Free Cash Flow Margin, revenue change excluding the effect of changes in foreign exchange rates (“ex-FX”), net income ex-FX, and Adjusted EBITDA ex-FX. Adjusted Net Income is defined as net income adjusted for a one-time income tax benefit from the release of a VA on certain defe
Slide 21: 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 22: Share Repurchases
Share Repurchases Share repurchases under our share repurchase program may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades or accelerated share repurchase transactions, or by any combination of such methods. Any such repu
Slide 23: Quarterly Summary
Quarterly Summary 2019 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Nights and 81.3M 83.9M 85.9M 75.8M 102.1M 103.7M 99.7M 88.2M 121.1M 115.1M 113.2M Experiences Booked Y/Y 59% 25% 25% 20% 19% 11% 14% Y/2019 26% 24% 16% 16% 49% 37% 32% Gross Booking Value $9.9B $9.9B $9.6B $8.6B $17.2B $17.0B $15.6B $
Slide 24: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations Unaudited (in millions, except per share amounts) Three Months Ended Nine Months Ended September 30 September 30 2022 2023 2022 2023 Revenue $2,884 $3,397 $6,497 $7,699 Costs and expenses: Cost of revenue 401 459 1,154 1,319 Operations and support (1)
Slide 25: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets Unaudited (in millions) December 31, 2022 September 30, 2023 Assets Current assets: Cash and cash equivalents $7,378 $8,175 Short-term investments 2,244 2,787 Funds receivable and amounts held on behalf of customers 4,783 5,986 Prepaids and other current assets
Slide 26: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows Unaudited (in millions) Nine Months Ended September 30 2022 2023 Cash flows from operating activities: Net income $1,574 $5,141 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 68 28 Stock-base
Slide 27: Key Business Metrics
Key Business Metrics Three Months Ended Nine Months Ended September 30 September 30 2022 2023 2022 2023 Nights and Experiences Booked 99.7M 113.2M 305.5M 349.4M Gross Booking Value $15.6B $18.3B $49.7B $57.8B We track certain key business metrics to measure our performance, identify trends, formulat
Slide 28: 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 29: 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 30: 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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