Airbnb(US:ABNB)2025-05-01 20:02Revenue and Income - Revenue for Q1 2025 increased by 6% to $2.3 billion compared to Q1 2024, driven by a rise in check-ins for Nights and Experiences Booked [143]. - Net income for Q1 2025 decreased by 42% to $154 million, primarily due to higher payroll-related expenses and impairment losses [144]. - Revenue for the three months ended March 31, 2025, increased by $130 million, or 6%, to $2,272 million compared to $2,142 million in the same period in 2024 [167]. - On a constant-currency basis, revenue increased by 8% compared to the same period in the prior year [167]. - Net income decreased by $110 million, or 42%, to $154 million for the three months ended March 31, 2025 [164]. Cash Flow and Financial Position - Cash provided by operating activities was $1.8 billion in Q1 2025, down from $1.9 billion in Q1 2024 [145]. - Free Cash Flow for Q1 2025 was $1.8 billion, down from $1.9 billion in Q1 2024, with a Free Cash Flow Margin of 78% [160]. - As of March 31, 2025, the company had cash, cash equivalents, and short-term investments totaling $11.5 billion [178]. - Net cash provided by operating activities for the three months ended March 31, 2025 was $1.8 billion, driven by net income of $154 million and unearned fees of $1.1 billion [183]. - The net increase in cash, cash equivalents, and restricted cash for the three months ended March 31, 2025 was $3.99 billion [183]. Expenses and Costs - Cost of revenue increased by $26 million, or 5%, to $506 million, primarily due to an increase in merchant fees of $17 million and amortization costs of $12 million [168]. - Product development expenses rose by $93 million, or 20%, to $568 million, driven by an 11% increase in average headcount [170]. - Sales and marketing expenses increased by $49 million, or 10%, to $563 million, primarily due to higher payroll-related expenses and increased marketing activities [171]. - Interest income decreased by $29 million, or 14%, to $173 million, primarily due to lower interest rates [174]. - Other expense, net increased by $28 million, or 280%, to $(38) million, primarily due to impairment charges on investments [175]. Share Repurchase and Capital Management - The company repurchased 6.1 million shares of Class A common stock for $807 million, with $2.5 billion remaining under the share repurchase program [145]. - The company repurchased 6.1 million shares of Class A common stock for $807 million during the three months ended March 31, 2025 [182]. - The company anticipates future capital requirements will include share repurchases, new product introductions, and expansion of sales and marketing activities [187]. - The company may seek additional capital or incur debt to fund strategic initiatives, with liquidity subject to various risks [187]. Growth and Market Conditions - Nights and Experiences Booked rose by 8% from 133 million in Q4 2024 to 143 million in Q1 2025 [151]. - Gross Booking Value (GBV) increased by 7% from $22.9 billion in Q1 2024 to $24.5 billion in Q1 2025 [151]. - The strongest growth in Nights and Experiences Booked occurred in Latin America and Asia Pacific, reflecting the company's focus on international expansion [153]. - Macroeconomic conditions, including inflation and interest rates, have not materially impacted the company's financial condition to date, but future impacts remain uncertain [146]. Other Financial Information - Adjusted EBITDA for Q1 2025 was $417 million, a slight decrease from $424 million in Q1 2024 [158]. - The effect of exchange rate changes resulted in an increase of $207 million in cash, cash equivalents, and restricted cash, attributed to the weakening of the U.S. dollar [186]. - The company recorded non-cash charges of $358 million, primarily from stock-based compensation expense [183]. - The company’s financial condition is based on estimates and assumptions that may differ under varying conditions [188].