Airbnb(US:ABNB)2024-11-07 21:08Financial Performance - For the three months ended September 30, 2024, revenue grew by 10% to $3.7 billion compared to the same period in the prior year[115]. - Net income for the same period decreased by 69% to $1.4 billion, primarily due to an increase in income tax expense of $3.1 billion[116]. - Adjusted EBITDA increased by 7% to $2.0 billion for the three months ended September 30, 2024[117]. - Nights and Experiences Booked reached 122.8 million, an 8% increase from 113.2 million for the same period in the prior year[121]. - Gross Booking Value (GBV) was $20.1 billion, a 10% increase from $18.3 billion for the same period in the prior year[123]. - Revenue for the three months ended September 30, 2024, increased by $335 million, or 10%, to $3.732 billion compared to the same period in the prior year[139]. - Adjusted EBITDA for the nine months ended September 30, 2024, increased by $361 million to $3.3 billion, with a consistent margin of 38%[130]. - Revenue for the nine months ended September 30, 2024, increased by $923 million, or 12%, to $8.622 billion compared to the same period in the prior year[139]. Cash Flow and Liquidity - Free Cash Flow for the three months ended September 30, 2024, was $1.1 billion, compared to $1.3 billion in the same period in the prior year[117]. - Net cash provided by operating activities was $1.1 billion, a decrease from $1.3 billion in the same period in the prior year[126]. - Free Cash Flow for the three months ended September 30, 2024, decreased to $1.074 billion, representing 29% of revenue, down from 39% in the same period last year[132]. - Net cash provided by operating activities for the nine months ended September 30, 2024 was $4.1 billion, primarily due to net income of $2.2 billion[163]. - Net cash used in investing activities for the nine months ended September 30, 2024 was $396 million, primarily due to purchases of short-term investments[164]. - As of September 30, 2024, the company had cash and cash equivalents totaling $7.7 billion, including $2.2 billion held by foreign subsidiaries[158]. - The company anticipates that cash flows generated from operating activities will meet its short-term cash requirements, which include share repurchases and new product introductions[168]. Expenses and Costs - Cost of revenue increased by $6 million, or 1%, for the three months ended September 30, 2024, totaling $465 million[140]. - Operations and support expenses rose by $53 million, or 17%, for the three months ended September 30, 2024, totaling $369 million[142]. - Product development expense increased by $105 million, or 25%, for the three months ended September 30, 2024, primarily due to a $93 million increase in payroll-related expenses[145]. - Sales and marketing expense increased by $111 million, or 28%, for the three months ended September 30, 2024, primarily due to a $83 million increase in marketing activities[148]. - General and administrative expense increased by $31 million, or 10%, for the three months ended September 30, 2024, primarily due to higher non-income taxes and payroll-related expenses[151]. - Cost of revenue for the nine months ended September 30, 2024, increased by $132 million, or 10%, totaling $1.451 billion[141]. Share Repurchase and Capital Management - The company repurchased 8.7 million shares of Class A common stock for $1.1 billion, leaving $4.2 billion available for future repurchases[117]. - The company repurchased an aggregate of 18.3 million shares of Class A common stock for $2.6 billion during the nine months ended September 30, 2024[162]. Tax and Income - The provision for income taxes increased to $367 million for the three months ended September 30, 2024, compared to a tax benefit of $2.7 billion in the same period of the prior year[155]. - The company released $2.8 billion of its valuation allowance related to U.S. deferred tax assets during the three months ended September 30, 2023[131]. - Interest income increased by $15 million, or 8%, for the three months ended September 30, 2024, primarily due to higher cash and investment balances[152]. - Other income (expense), net increased by $12 million, or 133%, for the three months ended September 30, 2024, primarily due to foreign exchange gains[153]. - Net income for the three months ended September 30, 2024, was $1.368 billion, down from $4.374 billion in the same period last year[135]. Risks and Future Outlook - Future capital requirements will depend on factors such as growth, headcount, and customer retention on the platform[168]. - The company may seek to raise additional funds through equity or debt if needed, which may not be available on favorable terms[168]. - The liquidity of the company is subject to various risks, including those identified in the "Quantitative and Qualitative Disclosures about Market Risk" section[168]. - The financial condition and results of operations are based on unaudited condensed consolidated financial statements prepared in accordance with U.S. GAAP[169]. - The preparation of financial statements requires estimates and assumptions that may differ from actual results under different conditions[169]. - Recent accounting pronouncements and their implications are detailed in the company's quarterly report[170].