Airbnb(ABNB) - 2024 Q4 - Annual Results

Q4 & FY 2024 Performance Overview Financial Highlights Airbnb reported strong financial results for Q4 and the full year 2024, driven by accelerated growth in nights booked, with Q4 revenue reaching $2.5 billion and full-year revenue surpassing $11.1 billion, underscoring robust profitability and cash generation Q4 2024 Key Financial Metrics | Metric | Value | YoY Growth (Reported) | YoY Growth (ex-FX) | | :--- | :--- | :--- | :--- | | Revenue | $2.5 billion | 12% | 12% | | Net Income | $461 million | N/A | N/A | | Net Income Margin | 19% | N/A | N/A | | Adjusted EBITDA | $765 million | 4% | 3% | | Adjusted EBITDA Margin | 31% | N/A | N/A | | Free Cash Flow | $458 million | N/A | N/A | Full Year 2024 Key Financial Metrics | Metric | Value | YoY Growth (Reported) | YoY Growth (ex-FX) | | :--- | :--- | :--- | :--- | | Revenue | $11.1 billion | 12% | 12% | | Net Income | $2.6 billion | N/A | N/A | | Net Income Margin | 24% | N/A | N/A | | Adjusted EBITDA | $4.0 billion | 11% | 11% | | Adjusted EBITDA Margin | 36% | N/A | N/A | | Free Cash Flow | $4.5 billion | N/A | N/A | - Q4 2024 net income of $461 million marked a significant improvement from a $349 million net loss in Q4 2023. The prior-year loss was primarily due to approximately $1 billion in non-recurring tax withholding expenses and lodging tax reserves[16] Business Highlights Business momentum accelerated in Q4 2024, with Nights and Experiences Booked growing 12% year-over-year to 111.0 million, driving Gross Booking Value (GBV) to $17.6 billion in Q4 and nearly $82 billion for the full year Q4 & FY 2024 Key Business Metrics | Metric | Q4 2024 | Q4 YoY Growth | FY 2024 | FY YoY Growth | | :--- | :--- | :--- | :--- | :--- | | Nights & Experiences Booked | 111.0 million | 12% | 491.5 million | 10% | | Gross Booking Value (GBV) | $17.6 billion | 13% | $81.8 billion | 12% | - The company has been preparing for its next chapter by rebuilding its platform on a new technology stack and introducing over 535 features and upgrades, improving the user experience and setting the stage for new offerings in the May 2025 Summer Release[12] - Since its 2020 IPO, Airbnb's revenue and GBV have tripled, and the company outpaced the travel industry's growth in 2024[14] Business and Operational Review Strategic Initiatives and Product Development Airbnb is focused on perfecting its core service through continuous product optimizations and a rebuilt technology platform, with initiatives like the Co-Host Network designed to unlock high-quality supply and enable faster innovation - The Co-Host Network, launched to help hosts manage their listings, has grown to support almost 100,000 listings in 10 countries within four months. These listings earn approximately twice as much as comparable listings[18] - Product optimizations, including enhanced search, better merchandising, and new local payment methods in nearly two dozen countries, have contributed to higher conversion rates, with full benefits expected in 2025[19] - A complete overhaul of the technology stack, including the app experience and messaging system, has improved usability and created an extensible platform ready for a range of new offerings[20] Detailed Business Performance In Q4 2024, Nights and Experiences Booked accelerated to 111 million, up 12% YoY, with growth across all regions, driving Gross Booking Value (GBV) to $17.6 billion supported by a modest 1% increase in Average Daily Rate (ADR) - Growth in nights booked was driven by the app strategy, with app bookings increasing 22% YoY in Q4 and accounting for 60% of total nights booked[48] - Expansion markets showed strong performance, with the average growth rate of gross nights booked being more than twice the rate of core markets in Q4 2024[50] Q4 2024 Regional Nights & Experiences Booked Growth (YoY) | Region | Growth Rate | Key Drivers | | :--- | :--- | :--- | | North America | Mid-single digits | Acceleration from Q3, broad strength in travel trends | | EMEA | Low-double digits | Acceleration across domestic, cross-border, urban, and non-urban travel | | Latin America | Low-20s | Highest growth in domestic travel (+30%), success of local payment methods | | Asia Pacific | Low-20s | Strong domestic and cross-border travel (+27%), China outbound recovery (+25%) | - Q4 2024 Average Daily Rate (ADR) was $158, a 1% YoY increase (2% ex-FX), driven primarily by price appreciation across all regions[53] Supply Growth Strategy Airbnb ended Q4 2024 with over 5 million hosts and 8 million active listings, with its supply growth strategy focused on targeted acquisition, increasing calendar availability from existing hosts, and improving overall listing quality - The company ended Q4 2024 with over 8 million active listings from more than 5 million hosts, with the most growth in high-demand regions like Latin America and Asia Pacific[54] - The supply growth strategy focuses on: 1) Targeted acquisition in constrained markets, 2) Helping existing hosts host more often (e.g., via Co-Host Network), and 3) Removing low-quality supply to improve the guest experience[55] - Since launching an updated hosting quality system in 2023, Airbnb has removed over 400,000 listings, leading to lower customer service issues and improved guest net promoter scores[55] Spotlight: Community and International Efforts The report highlights Airbnb.org's response to the Los Angeles wildfires, housing over 19,000 displaced people, and a localized marketing and product strategy in Japan to increase relevance and capture the domestic travel market - In response to the LA wildfires, Airbnb.org housed over 19,000 people and 2,300 pets, with support from $27 million in donations, including $18 million from Airbnb and its founders[22] - To prevent price gouging during the LA crisis, Airbnb deployed a feature to block hosts in the area from raising prices by more than 10%[29] - To grow in Japan, Airbnb localized its product by highlighting amenities preferred by locals, surfacing reviews from Japanese travelers, and featuring homes suitable for popular domestic weekend travel[37][39] Financial Performance Analysis Detailed Financial Results Q4 2024 revenue grew 12% YoY to $2.5 billion, with net income of $461 million and Adjusted EBITDA of $765 million, while full-year 2024 stock-based compensation expense increased 26% - Q4 2024 revenue growth was supported by monetization efforts, including expanded guest travel insurance and an additional service fee for cross-currency bookings[56][61] - The Q4 2024 Adjusted EBITDA Margin of 31% was down from 33% in Q4 2023, attributed to increased investments in sales and marketing and product development[59] - Full-year 2024 stock-based compensation (SBC) expense grew 26% due to headcount and the full vesting of pre-IPO RSUs. In 2025, SBC growth is expected to approximate headcount growth[62] Balance Sheet, Cash Flow, and Capital Allocation Airbnb maintains a strong balance sheet, ending 2024 with $10.6 billion in cash and liquid assets, generating $458 million of Free Cash Flow in Q4, and repurchasing $838 million of its stock as part of its capital allocation strategy - As of December 31, 2024, the company held $10.6 billion in cash and liquid assets, alongside $5.9 billion in funds held on behalf of guests[83] - The company repurchased $838 million of its Class A common stock in Q4 2024, for a total of $3.4 billion in FY 2024. This helped reduce the fully diluted share count from 676 million to 658 million YoY[17][84] - The capital allocation strategy prioritizes organic growth, then strategic acquisitions, and finally shareholder returns. The company has $3.3 billion remaining under its current share repurchase authorization[84][85] Outlook Q1 2025 Outlook For Q1 2025, Airbnb anticipates revenue between $2.23 billion and $2.27 billion, representing 4% to 6% YoY growth, unfavorably impacted by the timing of Easter and the absence of a Leap Day, leading to an expected decline in Adjusted EBITDA margin Q1 2025 Guidance | Metric | Guidance | Notes | | :--- | :--- | :--- | | Revenue | $2.23 billion - $2.27 billion | 4-6% YoY growth (7-9% ex-FX) | | Nights & Experiences Booked | Stable YoY growth | After excluding ~1 ppt benefit from Leap Day in Q1 2024 | | ADR | Slight YoY decline | Largely driven by FX headwinds | | Adjusted EBITDA Margin | YoY decline | Primarily due to calendar factors and FX headwinds | - Q1 2025 revenue growth is negatively impacted by ~3 percentage points due to the timing of Easter and the Leap Day in 2024. Excluding these factors and FX, revenue growth would be 10-12%[88] Full-Year 2025 Outlook For the full year 2025, Airbnb plans to invest $200 million to $250 million in launching and scaling new businesses, while still expecting to maintain strong profitability with an Adjusted EBITDA Margin of at least 34.5% - The company plans to invest $200 million to $250 million in launching and scaling new businesses to be introduced later in 2025[92] - Inclusive of these new investments, the company expects to deliver a full-year 2025 Adjusted EBITDA Margin of at least 34.5%[92] Appendix Condensed Consolidated Financial Statements This section provides the unaudited condensed consolidated financial statements for the three months and year ended December 31, 2024, compared to the prior year. It includes the Statements of Operations, Balance Sheets, and Statements of Cash Flows - The report includes detailed, unaudited financial statements: Condensed Consolidated Statements of Operations, Balance Sheets, and Statements of Cash Flows[112][113][115] Reconciliation of Non-GAAP Measures This section defines non-GAAP financial measures used in the report, such as Adjusted EBITDA and Free Cash Flow. It also includes detailed reconciliation tables that bridge these non-GAAP measures to their most directly comparable GAAP counterparts, such as net income and net cash provided by operating activities - The report provides detailed quarterly reconciliations of Net Income to Adjusted EBITDA from Q1 2022 through Q4 2024[120] - The report provides detailed quarterly reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow from Q1 2022 through Q4 2024[123]