On August 6, 2024, Airbnb Inc (ABNB, Financial) released its 8-K filing for the second quarter of 2024. Founded in 2008, Airbnb is the world's largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences. As of December 31, 2023, Airbnb's platform boasted 7.7 million active accommodation listings from over 5 million hosts worldwide, with 50% of its revenue generated from North America. The company earns all its revenue from transaction fees for online bookings.
Performance Overview
Airbnb Inc (ABNB, Financial) reported Q2 2024 revenue of $2.75 billion, an 11% increase compared to Q2 2023, driven by growth in nights stayed on the platform. This figure surpassed the analyst estimate of $2.06 billion. The company also reported a net income of $555 million, representing a 20% net income margin, although this was a decrease from $650 million in Q2 2023 due to higher income taxes. Adjusted EBITDA for the quarter was $894 million, up 9% year-over-year, with a stable Adjusted EBITDA Margin of 33%.
Key Financial Achievements
Airbnb Inc (ABNB, Financial) achieved significant financial milestones in Q2 2024:
- Generated $1.1 billion in net cash from operating activities and $1.0 billion in Free Cash Flow (FCF), marking a 16% year-over-year increase.
- Reported a trailing twelve months (TTM) FCF of $4.3 billion, representing a TTM FCF Margin of 41%.
- Repurchased $749 million of Class A common stock, reducing the fully diluted share count from 686 million to 673 million year-over-year.
Income Statement Highlights
Key details from the Income Statement include:
| Metric | Q2 2023 | Q2 2024 | Change |
|---|---|---|---|
| Revenue | $2.48 billion | $2.75 billion | +11% |
| Net Income | $650 million | $555 million | -15% |
| Adjusted EBITDA | $819 million | $894 million | +9% |
Balance Sheet and Cash Flow
As of June 30, 2024, Airbnb Inc (ABNB, Financial) reported $11.3 billion in cash and cash equivalents, short-term investments, and restricted cash. The company also held $10.3 billion in funds on behalf of guests. For the three months ended June 30, 2024, net cash provided by operating activities was $1.1 billion, compared to $909 million in the same period last year.
Key Business Metrics
Airbnb Inc (ABNB, Financial) reported strong growth in key business metrics:
- Gross Booking Value (GBV) of $21.2 billion, up 11% year-over-year.
- 125.1 million Nights and Experiences Booked, a 9% increase compared to Q2 2023.
- Average Daily Rate (ADR) of $170, a 2% increase year-over-year.
Analysis and Commentary
Airbnb Inc (ABNB, Financial) continues to demonstrate robust financial performance, driven by increased bookings and strategic initiatives to enhance the quality of listings and expand into new markets. The company's ability to generate significant free cash flow and maintain a strong balance sheet positions it well for future growth. However, the decrease in net income due to higher income taxes highlights the importance of managing tax liabilities effectively.
Overall, Airbnb Inc (ABNB, Financial)'s Q2 2024 earnings report reflects a solid performance, with revenue surpassing analyst estimates, reinforcing its position as a leader in the travel and leisure industry.
Explore the complete 8-K earnings release (here) from Airbnb Inc for further details.
