In its first earnings report as a publicly traded firm, Airbnb delivered a hopeful forecast for the coronavirus-battered journey business, expressing optimism that individuals’s urge for food for brand new locations will develop this yr as vaccines start to lastly make a dent in the pandemic.
“Journey is coming again and we’re laser-focused on making ready for the journey rebound,” the corporate mentioned in its opening assertion.
Regardless of journey grinding to a halt final yr, Airbnb says its income for the fourth quarter was down solely 22% in comparison with the identical interval in 2019, an indication of each its “resilience” as an organization and its “robust monetary self-discipline,” in keeping with the agency. Airbnb considerably scaled again its enterprise in the center of the yr, shedding about 25% of its workers, doubling down on its core platform, and capitalizing on stir-crazy clients in search of native journey and experiences.
Income for the quarter was $859 million, far larger than a Bloomberg consensus estimate of $739.7 million. Income for the total yr was $3.4 billion, down 30% from the earlier yr.
Declines in the variety of nights booked on Airbnb’s platform had been considerably extra dramatic, falling 39% in the fourth quarter to 46.3 million. Maybe much more dramatic was Airbnb’s fourth-quarter internet lack of $3.89 billion, a part of which Airbnb attributed to expenses associated to its IPO in December.
At the same time as Airbnb proclaimed its give attention to the business’s rebound, it famous that journey in the months forward won’t appear to be it did earlier than COVID-19 unfold all through the world. “We’ll see a shift from mass journey to significant journey,” the corporate wrote in a letter to shareholders. “And with extra folks working from residence, there can be extra flexibility round the place and after they journey.”
It additionally cautioned that restoration developments for its enterprise are nonetheless unimaginable to foretell, given the uncertainty round how and when the pandemic will play out. “[We] proceed to have restricted visibility for development developments in 2021 given the issue in figuring out the tempo of vaccine roll-outs and the associated impression on willingness to journey,” the corporate mentioned. “We aren’t offering an outlook for the remainder of 2021 right now.”
Shares of Airbnb had been largely flat in after-hours buying and selling. You possibly can learn its full report and letter to shareholders here.