We issued our third quarter 2024 monetary outcomes. You possibly can learn the main points here. Airbnb Co-Founder and CEO Brian Chesky stated:
“We had one other robust quarter at Airbnb, with bookings development accelerating all through Q3 and into This autumn. I’m particularly happy with the expansion throughout our growth markets, app bookings, and Visitor Favourite listings, and I’m wanting ahead to a different robust vacation journey season.”
Overview of Q3 outcomes
Airbnb had a powerful Q3. Nights and Experiences Booked accelerated all through the quarter and into This autumn, regardless of a softer begin as a consequence of shorter reserving lead occasions in comparison with 2023. Income grew 10% year-over-year to $3.7 billion. Internet revenue was $1.4 billion, representing a web revenue margin of 37%. Adjusted EBITDA of $2.0 billion elevated 7% year-over-year and represented an Adjusted EBITDA Margin of 52%. We generated $1.1 billion of FCF throughout Q3 and $4.1 billion of FCF over the trailing twelve months, highlighting the energy of our cash-generating enterprise mannequin.
Through the quarter, we made vital progress throughout our three strategic priorities:
- Making internet hosting mainstream: We’re centered on making internet hosting simply as fashionable as touring on Airbnb. Right now, now we have over 8 million energetic listings, with development seen throughout all areas and market varieties throughout Q3 2024. To retain and entice new hosts, we’ve prioritized making internet hosting simpler. Final month, we launched Co-Host Community, a straightforward strategy to discover the perfect native hosts to handle your Airbnb. Co-hosts are skilled hosts who present personalised assist based mostly on the hosts’ wants, from itemizing setup to managing bookings and speaking with company.
- Perfecting the core service: Over the previous three years, we’ve launched greater than 535 new options and upgrades to make Airbnb an general higher service for hosts and company. Our 2024 Winter Launch included over 50 upgrades for company that make the app extra personalised, together with really helpful locations, recommended search filters, and personalised itemizing highlights. We’re additionally addressing one of many prime points for company: itemizing high quality. Since final yr, we’ve eliminated over 300,000 listings that failed to fulfill visitor expectations.
- Increasing past the core: Outdoors of our core markets, there are a lot of international locations and areas that stay under-penetrated. We’re centered on these growth markets as a part of our international markets technique, and we imagine our strategy is working. In Q3, the typical development charge of nights booked on an origin foundation in our growth markets was greater than double that of our core markets. We’ll stay centered on accelerating development whereas getting ready for Airbnb’s subsequent chapter, which is able to take us past lodging. You’ll see extra on this subsequent yr.
Q3 2024 monetary outcomes
Right here’s a snapshot of our Q3 2024 outcomes:
- Q3 income was $3.7 billion, up 10% year-over-year. Income elevated to $3.7 billion in Q3 2024 from $3.4 billion in Q3 2023, primarily pushed by strong development in nights stayed and a modest improve in Common Each day Price (“ADR”).
- Q3 web revenue was $1.4 billion, representing a 37% web revenue margin. Internet revenue decreased to $1.4 billion in Q3 2024 from $4.4 billion in Q3 2023, primarily because of the prior yr’s valuation allowance launch of our U.S. deferred tax property of $2.8 billion, and the popularity of non-cash tax expense associated to the utilization of a few of these property within the present yr.
- Q3 Adjusted EBITDA was $2.0 billion, up 7% year-over-year. Adjusted EBITDA elevated to $2.0 billion in Q3 2024 from $1.8 billion in Q3 2023, which demonstrates the continued energy of our enterprise and self-discipline in managing our price construction. Adjusted EBITDA Margin was 52% in Q3 2024, down from 54% in Q3 2023.1
- Q3 Free Money Movement was $1.1 billion, representing a FCF Margin of 29%. In Q3 2024, web money supplied by working actions was $1.1 billion in comparison with $1.3 billion in Q3 2023. The year-over-year decline in money move was pushed primarily by a $163 million fee to the IRS associated to an impressive matter. Our TTM FCF was $4.1 billion, representing a FCF Margin of 38%.2
- Q3 share repurchases of $1.1 billion. Our robust money move enabled us to repurchase $1.1 billion of our Class A standard inventory in Q3 2024. Share repurchases for the trailing twelve months totaled $3.3 billion and helped us to scale back our totally diluted share rely from 681 million on the finish of Q3 2023 to 665 million on the finish of Q3 2024. As of September 30, 2024, we had the power to buy as much as $4.2 billion of our Class A standard inventory underneath our present share repurchase authorization.
Enterprise highlights
Our robust quarter was pushed by a variety of constructive enterprise highlights:
- Visitor demand accelerated throughout the quarter. In Q3, Nights and Experiences Booked elevated 8% year-over-year. After a slower begin to the quarter, bookings accelerated steadily every month, returning to double-digit development by the tip of Q3. World lead occasions additionally normalized all through the quarter. Progress has been partly pushed by our app technique with nights booked on our app rising 18% year-over-year in Q3. App bookings now account for 58% of whole nights booked—up from 53% in the identical interval final yr. We additionally noticed continued development of first-time bookers, significantly with our youngest vacationers.
- Our international markets technique is working. In Q3, the typical development charge of gross nights booked on an origin foundation in our growth markets was greater than twice the speed of our core markets. Whereas our timing and funding stage fluctuate by market, our technique is constant: make Airbnb native and related. In every market, we give attention to discovering product-market match, rising consciousness, and driving visitors. Japan is one instance. Airbnb continues to be comparatively new to Japanese vacationers. As a way to elevate consciousness, we launched a model marketing campaign final month centered on home journey. Past Japan, we’re additionally introducing extra native fee choices in international locations like Vietnam, Denmark, and Poland. By Spring 2025, we anticipate to supply almost 40 native fee strategies throughout 5 continents.
- Provide high quality is bettering on Airbnb. We’re centered on eradicating low-quality provide and making it simpler for company to seek out the perfect locations to remain. Since final yr, we’ve eliminated over 300,000 listings. Consequently, customer support problem charges have decreased, and visitor web promoter scores have improved. We’ve additionally made it simpler for company to seek out the perfect locations to stick with Visitor Favorites and prime itemizing highlights, which present percentile rating for the highest 1%, 5%, and 10% of eligible properties. Since launching a yr in the past, over 200 million nights have been booked at Visitor Favourite listings, and nights booked with Superhosts have elevated by 21%. Lastly, we’re decreasing host cancellations, which, although uncommon, are a major ache level for company. In Q3, host cancellation charges decreased almost 30% in comparison with final yr.
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