Airbnb said on Tuesday that it is launching its “Reserve Now, Pay Later” feature — which lets users secure bookings without immediate payment — globally. This allows users to cancel their bookings if there is a change of plans without losing money upfront.The company launched the feature in the U.S. last year for domestic travel. Airbnb said that properties with a “flexible” or “moderate” cancellation policy are eligible for the upfront reservation. With this option, users get charged closer to their check- ...

Airbnb Inc posted strong fourth-quarter bookings and issued an upbeat revenue outlook, citing strong travel demand and growing adoption of its new flexible payment and booking options.Revenue for the quarter ending on March 31 will be $2.59 billion to $2.63 billion, the home-rental giant said in a shareholder letter on Thursday. Wall Street was expecting $2.54 billion. For the full year, the company projected revenue growth to accelerate to “at least low double digits” from the 10 per cent it saw in 2025, i ...

Valued at a market cap of $79.6 billion, Airbnb, Inc. (ABNB) is a platform that enables hosts to offer stays and experiences to guests. The San Francisco, California-based company enables individuals to rent homes, apartments, and alternative lodging across more than 190 countries. This travel services company has lagged behind the broader market over the past 52 weeks. Shares of Airbnb have gained marginally over this time frame, while the broader S&P 500 Index ($SPX) has surged 15.5%. Moreover, on a YTD ...

Core Insights - Airbnb's Q3 CY2025 revenue reached $4.10 billion, reflecting a 9.7% year-on-year growth, meeting Wall Street's expectations [1][5] - The company reported a GAAP profit of $2.21 per share, which was 4.8% below analysts' consensus estimates of $2.32 [1][5] - For Q4 CY2025, Airbnb anticipates revenue of approximately $2.69 billion, slightly exceeding analysts' expectations [1][5] Revenue and Financial Performance - Revenue of $4.10 billion compared to analyst estimates of $4.08 billion, indicating a 9.7% year-on-year growth [5] - GAAP EPS of $2.21 versus analyst expectations of $2.32, marking a 4.8% miss [5] - Adjusted EBITDA was $2.05 billion, slightly above analyst estimates, with a margin of 50.1% [5] - Operating margin decreased to 39.7% from 40.9% in the same quarter last year [5] - Nights and experiences booked totaled 133.6 million, an increase of 10.8 million year-on-year [5] - Market capitalization stands at $73.08 billion [5] Management Insights and Strategic Focus - Management highlighted product improvements, payment innovations, and global expansion as key drivers of revenue growth [3][4] - The introduction of 'Reserve Now, Pay Later' in the U.S. significantly boosted bookings [3] - Over 65 product updates were implemented to enhance user experience for both guests and hosts [3] - Future growth is expected to be fueled by investments in artificial intelligence, international market expansion, and new business lines such as experiences and hotel listings [3][4]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $4.1 billion, representing a 10% year-over-year increase [18] - Adjusted EBITDA reached $2.1 billion, with a 50% EBITDA margin, marking the highest quarterly EBITDA ever [17][18] - Gross booking value (GBV) grew 14% year-over-year to $22.9 billion, driven by strong growth in both bookings and pricing [17][18] - Net income was $1.4 billion, with earnings per share (EPS) of $2.21, reflecting a 4% year-over-year growth [18] Business Line Data and Key Metrics Changes - Nights and seats booked increased by 9% year-over-year, showing a two-point sequential acceleration from Q2 [17] - The introduction of the Reserve Now, Pay Later payment option significantly contributed to the growth in the U.S. market [17][25] - Service and experiences launched in May received an average rating of 4.3 out of 5 stars, indicating strong customer satisfaction [9] Market Data and Key Metrics Changes - Average nights booked in expansion markets grew at double the rate of core markets over the past 12 months [8] - First-time bookers increased by over 20% in Japan and nearly 50% in India year-over-year [8] - Nights growth across major regions remained steady or accelerated, with Latin America growing in the low 20s and Asia-Pacific in the mid-teens [17] Company Strategy and Development Direction - The company is focusing on four key growth areas: improving service quality, expanding globally, diversifying offerings, and integrating AI into the app [4][8] - The launch of hotels on the platform aims to fill gaps in supply-constrained markets, with a focus on boutique and independent hotels [11][44] - The integration of AI is expected to enhance personalization and user experience, with plans for AI-powered search and customer support [12][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued momentum in bookings, particularly due to the Reserve Now, Pay Later offering [20] - The company anticipates revenue growth of 7%-10% in Q4 2025, despite tougher year-over-year comparisons [20] - Management highlighted the importance of maintaining strong margins while investing in growth initiatives for 2026 [21] Other Important Information - The company repurchased $857 million of common stock during the quarter, with a total of over $3.5 billion repurchased in the trailing 12 months [19] - A one-time $213 million valuation allowance impacted net income due to changes in tax legislation [18] Q&A Session Summary Question: What percentage of the acceleration in the U.S. has come from the Reserve Now, Pay Later offering? - Approximately 70% of users offered the Reserve Now, Pay Later option have utilized it, contributing to increased bookings despite some rise in cancellations [25][26] Question: How should investors think about the duration of execution and investment needed for international market expansion? - The company has been selective in market expansion, with different timelines for each market, and is seeing success in targeted regions like Latin America and Japan [28][30] Question: What is the contribution of experiences and services, and are they helping with overall platform velocity? - Experiences are attracting new users, with about half of those booking experiences not having an associated home stay, indicating potential for future growth [33][34] Question: How does the company view the long-term scope of hotel offerings? - Hotels are seen as a promising opportunity, with the potential to complement the existing home rental business without significant cannibalization [39][43] Question: What are the incremental investment plans for 2026? - The company plans to continue investing in new business initiatives, including hotels and AI integration, while maintaining a focus on profitability [52][56]

Core Viewpoint - Airbnb's Q3 results showed a mixed performance with revenue exceeding expectations but earnings per share falling short, indicating challenges in profitability despite strong operational metrics [3][4][5]. Financial Performance - Revenue for Q3 reached $4.10 billion, slightly above the consensus estimate of $4.08 billion, marking a year-over-year increase of 9.86% from $3.73 billion [4][11]. - Adjusted earnings per share (EPS) were $2.21, missing the estimate of $2.32 by $0.11, representing a 4.7% miss [4][11]. - Net income was $1.37 billion, a marginal increase of 0.44% year-over-year [4][11]. Operational Metrics - Gross Booking Value surged 14% year-over-year to $22.9 billion, with nights and seats booked increasing by 9% to 133.6 million [7][11]. - Operating cash flow rose by 25.79% to $1.36 billion, while free cash flow was reported at $1.35 billion, indicating strong operational performance despite profit growth stagnation [7][11]. Strategic Investments - Management is focusing on international expansion, AI integration, and flexible payment options, which are expected to drive long-term growth at the expense of near-term profitability [6][12]. - The "Reserve Now, Pay Later" feature is contributing to increased U.S. bookings, and expansion into markets like Japan and India is gaining traction [12][13]. Forward Guidance - Q4 2025 guidance projects revenue between $2.66 billion and $2.72 billion, reflecting a growth deceleration compared to Q3 [9][10]. - Management anticipates continued margin pressure, with adjusted EBITDA expected to be flat to slightly down year-over-year [9][10].

Group 1: Berkshire Hathaway Investments - Berkshire Hathaway acquired a new stake in UnitedHealth (UNH) during Q2 2025, purchasing 5.04 million shares valued at $1.57 billion [3] - The company also took new stakes in Nucor (NUE) and D.R. Horton (DHI), while reducing its holdings in Apple (AAPL) and Bank of America (BAC) [3] Group 2: Other Investment Moves - Eminence Capital exited its positions in Bank of America (BAC), Uber (UBER), GE Healthcare (GEHC), Capital One (COF), and Primo Brands (PRMB), while acquiring 0.57 million shares of UnitedHealth (UNH) [4] - Renaissance Technologies also invested in UnitedHealth Group (UNH), taking a new stake of 1.35 million shares [5] Group 3: Intel Developments - Intel (INTC) shares rose 7.38% following reports that the U.S. government is considering taking a financial stake in the company to support the development of a factory hub in Ohio [6] - The plan for Intel could potentially make the site the largest chip foundry globally, although details on the investment amount and legality remain unclear [7] Group 4: Airbnb Payment Options - Airbnb (ABNB) introduced a "Reserve Now, Pay Later" option for U.S. guests, allowing reservations without upfront payment for listings with moderate or flexible cancellation policies [8][10] - A survey indicated that 60% of respondents find flexible payment options important, and 55% utilize them when available [10]

Core Insights - Airbnb Inc. has launched a "Reserve Now, Pay Later" feature for U.S. customers, allowing travelers to book certain domestic stays without upfront payment [1][2] - The feature is designed for listings with moderate or flexible cancellation policies, enabling guests to delay full payment until just before the property's free cancellation window closes [2][3] - This new option aims to provide more flexibility for travelers, particularly for groups coordinating payments, and complements existing payment options like "Pay Part Now, Part Later" and "Pay Over Time" [3][4] Industry Trends - The introduction of the "Reserve Now, Pay Later" feature aligns with a growing consumer preference for installment and deferred payment products, as evidenced by an estimated $175 billion in BNPL transactions in the U.S. in 2024 [6] - The demand for flexible payment options is increasing, with consumers seeking greater financial management and convenience in uncertain economic conditions [6] - Airbnb's expansion of payment flexibility tools is expected to lower the barrier to commitment for cost-conscious travelers, potentially driving more bookings [4][5]