No bad stock

Airbnb, Inc.
CEO : Mr. Brian Chesky

Quarterly earnings growth(YoY,%)

Brian Chesky says,

Revenue and Income

• Airbnb had a record year in 2022, with revenue of $8.4 billion, which marks a 40% YoY growth and 46% YoY growth when excluding foreign exchange.
• The company also reported a net income of $1.9 billion, marking the first profitable year on a GAAP basis.
• Free cash flow was $3.4 billion, representing a free cash flow margin of over 40%, which enabled the company to begin buying back stock.
• Q4 net income was $319 million, which is $264 million higher than a year ago, and adjusted EBITDA was $506 million, 52% higher YoY.

Business Trends

• Guest demand at Airbnb remains strong, with nights and experiences booked increasing by 20% in Q4.
• Guests are increasingly returning to cities and crossing borders, and cross-border growth nights booked increased by 49%.
• Guests continue to book longer stays on Airbnb, with long-term stays remaining stable at 21% of total gross nights booked.
• Airbnb ended 2022 with 6.6 million active listings, representing an acceleration in growth in listings relative to Q3.

Strategic Priorities for 2023

• Airbnb wants to make posting mainstream by raising awareness around hosting, making it easier to get started, and providing better tools for hosts.
• The company is perfecting its core service by obsessing over every single detail and making a large number of upgrades to its service this year, including improving customer service and delivering greater value.
• Airbnb is also expanding beyond its core by building the foundation for future products and services that will provide incremental growth.

David Stephenson says,

New Guest Growth

• Exact number of new guest growth is not disclosed.
• Airbnb has introduced itself to millions of new guests since COVID.
• New guests are performing similarly, if not stronger than historic guests.
• Brand marketing has played a significant role in increasing awareness of Airbnb.

Flexible Feature

• Airbnb has a strong adoption of the Flexible feature.
• Flexible features help distribute demand to where supply is available.
• This feature helps in matching the right guest to the right host.

Q & A sessions,

Impact of Urban Supply Growth on ABNB Stock Movement

• 36% of hosts in Q4 2022 were prior guests, indicating a self-growing effect within the Airbnb network.
• Airbnb set up and Airbnb campaign have driven twice the amount of traffic to their host landing page for people who want to learn about hosting.
• Airbnb from the apartment initiative can unlock a significant amount of inventory in multifamily homes in urban areas and has received a positive response from landlords.

Impact of ADRs on ABNB Stock Movement

• ADR was up by 5% YoY in Q4 2022, excluding the foreign exchange impact.
• A modest decline year-over-year in ADRs is expected as cities accelerate and cross-border travel mix towards lower ADR regions.
• Providing great value to guests is a priority, and tools are being built to ensure hosts understand the prices guests are paying and can provide great value to them.
• Efficiencies are being driven internally to offset the headwinds from lower ADR rates, and EBITDA margins for the full year are anticipated to be roughly the same as 2022.