Slide 1: Shareholder Letter Q4 2020
Shareholder Letter Q4 2020 airbnb
Slide 2: Q4 2020 and FY 2020 Highlights
Q4 2020 FY 2020 46.3M 193.2M Nights and Experiences Booked Net of cancellations and alterations • Despite the pandemic in 2020, Airbnb’s business proved (39)% Y/Y (41)% Y/Y highly resilient, with strength in North America, domestic travel, nearby travel, and long-term stays. $5.9B $23.9B Gross Booki
Slide 3: Q4 2020 Shareholder Letter
Q4 2020 Shareholder Letter 2020 was a year when nearly everything changed—the way we live, the way we work, and the way we travel. Airbnb changed as well. We started the year preparing for our IPO, only to put it on hold as the world went into lockdown and global travel came to a standstill. In the
Slide 4: What makes Airbnb, Airbnb
• Due to our strong financial discipline in 2020, all operating expense line items (excluding stock-based compensation and stock-settlement obligations) were down from a year ago. Excluding the impact of stock-based compensation and stock-settlement obligations, which represent employer and related
Slide 5: 2020: Resiliency and Focus
Responsibility to our Stakeholders Airbnb has always existed as a balance between our five stakeholders—our Hosts, our guests, the communities in which we operate, our employees, and our shareholders. In 2018, we set out to institutionalize our responsibility by defining a series of principles to se
Slide 6: 2021: Preparing for the Recovery
With a billboard above Airbnb HQ in San Francisco, we let our community know we’re with them—and that we’ll be there for them when they’re ready to travel again. of performance marketing, and a reduction in our workforce. These are just a few of the changes we made. Going forward, we expect to conti
Slide 7: Our 2021 Plan
• People plan to travel this year. More than half of those surveyed (54%) said they either already booked, are currently planning to travel, or expect to travel in 2021. This includes 57% of 18- to 29-year-olds, and 60% of 30- to 49-year-olds. • When travel returns, it will be about connection. Thos
Slide 8: Made possible by Hosts
Made possible by Hosts Recently, we launched our first large-scale marketing campaign in five years—Made possible by Hosts. Even though the Airbnb brand is mainstream, the idea of hosting is not. Our goal with the campaign is to make a long-term investment in educating the world about what makes Air
Slide 9: Serving our Stakeholders
Serving our Stakeholders As noted above, Airbnb has five stakeholders: Hosts, guests, the communities in which we operate, employees, and shareholders. In Q4 2020 and as we entered 2021, we took many steps and initiatives to support our stakeholders. Here are some of the highlights: Serving our Host
Slide 10: Host Spotlight: Merrydith Callegari—Tasmania, Australia
H O ST S P OT L I G H T Merrydith Callegari—Tasmania, Australia SuperHost Merrydith, now a retired grandmother of four, had a lot more space in her Tasmanian home once her daughters moved out. She’d find herself inviting family, friends, and sometimes even complete strangers into her home to stay wi
Slide 11: Host Spotlight (continued)
H O ST S P OT L I G H T After realizing they loved hosting people from across the world, the couple listed the apartment on Airbnb in 2016. “We just love to meet people, we love to talk… hear stories,” said Merrydith, who is a firm believer in the pay it forward movement. “I want my guests to feel i
Slide 12: Serving our Guests
Serving our Guests Flexible Dates The lines between traveling and living are blurring. More people working from home means more flexibility around when and where they travel. Because of this, we are seeing a shift in how people search on Airbnb. In 2021 to date, almost 40% of people searching on Air
Slide 13: Serving our Communities, Employees and Shareholders
Serving our Communities Airbnb.org Communities around the world have grappled with the devastating impacts of natural disasters in recent years and, more recently, the COVID-19 pandemic. To support those temporarily displaced and in need of housing because of such events, in December we launched Air
Slide 14: Q4 2020 and FY 2020 Business and Financial Performance
Q4 2020 and FY 2020 Business and Financial Performance Q4 2020 46.3M $5.9B Nights & Experiences Booked* Gross Booking Value* (39)% Y/Y (31)% Y/Y (31)% Y/Y ex-FX FY 2020 193.2M $23.9B Nights & Experiences Booked* Gross Booking Value* (41)% Y/Y (37)% Y/Y (37)% Y/Y ex-FX Q4 2020 In Q4 2020, Airbnb deli
Slide 15: Regional recovery and domestic travel
such as Brazil and Mexico. The recovery in Asia Pacific continues to take time, as many countries in the region have historically been reliant on cross-border travel, which remains well below 2019 levels. In North America and across our global regions, domestic travel continues to be a strength for
Slide 16: Q4 2020 and FY 2020 Revenue, Net Loss, Adjusted EBITDA
Q4 2020 $859M $(3,888)M $(21)M Revenue Net Income/(Loss) Adjusted EBITDA (22)% Y/Y (452)% of revenue (2)% of revenue (22)% Y/Y ex-FX FY 2020 $3,378M $(4,585)M $(251)M Revenue Net Income/(Loss) Adjusted EBITDA (30)% Y/Y (136)% of revenue (7)% of revenue (30)% Y/Y ex-FX Q4 2020 In Q4 2020, revenue was
Slide 17: Quarterly Revenue, Net Income/(Loss) and Adjusted EBITDA
Quarterly Revenue ($M) Q4 2020 revenue was down only 22% year-over-year, demonstrating Airbnb’s resilience. $2,000M 2019 $1,600M 2020 $1,646 (18%) $1,200M $1,342 Y/Y Change 0% $1,214 (22%) $1,106 $800M $859 $839 $842 (72%) $400M $335 $0M Q1 Q2 Q3 Q4 Quarterly GAAP Net Income/(Loss) ($M) Q4 2020 net
Slide 18: Operating expenses in Q4 2020
Operating expenses in Q4 2020 included the impact of $2.8 billion of stock-based compensation expense, as well as $103 million of stock-settlement obligations related to the IPO. Both of these items are excluded from Adjusted EBITDA. The increase in these costs was related to restricted stock units
Slide 19: Outlook
Unearned fees were $408 million at the end of Q4 2020, compared with $460 million at the end of Q3 2020. The sequential decrease was primarily a result of lower GBV due to seasonally lower travel during the quarter, coming off the peak summer months of Q3. FY 2020 In FY 2020, revenue was $3.4 billio
Slide 20: 2021 expense expectations and earnings webcast
We expect that sales and marketing expenses as a percentage of revenue in the first half of 2021 will be higher than that of the second half. This is partially due to the marketing campaign that we are running in the first half of 2021 in advance of the summer travel season. Similarly, we expect tha
Slide 21: Forward-looking statements
of its model; the Company’s plans and goals with respect to serving all of its stakeholders; 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,” “
Slide 22: Non-GAAP financial measures
Our non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow. Adjusted EBITDA is defined as net income or loss adjusted for (i) provision for income taxes; (ii) interest income, interest expense, and other income (expense), net; (iii) depreciation and amortizati
Slide 23: Non-GAAP measures limitations
mark-to-market at each reporting period based on factors including our stock price. The changes in fair value of contingent consideration was insignificant prior to the fourth quarter of 2020; • Adjusted EBITDA does not reflect net changes to the reserves for lodging taxes for which management belie
Slide 24: Quarterly and Annual Summary
Quarterly and Annual Summary 2020 Q1 Q2 Q3 Q4 FY Nights and Experiences Booked, 57.1M 28.0M 61.8M 46.3M 193.2M net of cancellations and alterations Y/Y (30)% (67)% (28)% (39)% (41)% Gross Booking Value, net of cancellations $6.8B $3.2B $8.0B $5.9B $23.9B and alterations Y/Y (32)% (67)% (17)% (31)% (
Slide 25: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations Unaudited (in thousands, except per share amounts) Three Months Ended Year Ended December 31 December 31 2019 2020 2019 2020 Revenue $1,106,796 $859,264 $4,805,239 $3,378,199 Costs and expenses: Cost of revenue 293,618 209,747 1,196,313 876,042 Operati
Slide 26: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets Unaudited (in thousands) December 31 December 31 2019 2020 Assets Current assets: Cash and cash equivalents $2,013,547 $5,480,557 Marketable securities 1,060,726 910,700 Restricted cash 115 33,846 Funds receivable and amounts held on behalf of customers 3,145,45
Slide 27: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows Unaudited (in thousands) Year Ended December 31 2019 2020 Cash flows from operating activities: Net loss $(674,339) $(4,584,716) Adjustments to reconcile net loss to cash provided by (used in) operating activities: Depreciation and amortization 114,162
Slide 28: Statements of Cash Flows Continued; Key Business Metrics
Condensed Consolidated Statements of Cash Flows Continued Unaudited (in thousands) Year Ended December 31 2019 2020 Cash flows from financing activities: Proceeds from issuance of common stock upon initial public $- $3,650,870 offering, net of underwriting discounts and offering costs Taxes paid rel
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 loss. Adjusted EBITDA Reconciliation (in thousands) Three Months Ended Year Ended Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 2019 2020 2019 2019 2
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 thousands) Three Months Ended Year Ended Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 2019 2020 2019 2019 2019 20
Slide 31: Operating expense reconciliation
The following is a reconciliation of operating expense line items less stock-based compensation, stock- settlement obligations related to the IPO, and acquisition-related impacts consisting of gains (losses) recognized on changes in the fair value of contingent consideration arrangements (in thousan
Slide 32: 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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