Airbnb announces the most profitable quarter in its history in the third quarter of 2022

The third trimester was Airbnbthe most profitable quarter ever, the company reports.

Revenue for the period ending September 30, 2022 was $2.9 billion, up 29% year-over-year, while Adjusted EBITDA was 1.5 billion, an increase of 32% compared to the third quarter of 2021.

Net income for the third quarter of 2022 reached $1.2 billion, up 46% compared to the same period last year, representing a net income margin of 42%. The gross value of reservations soared 31% to $15.6 billion.

Year-over-year, room nights and experiences booked increased 25% in Q3 2022 to nearly 100 million. The third quarter of 2022 was Airbnb’s highest-ever third quarter in terms of room nights and experiences booked, the company reports.

The Asia-Pacific region saw the strongest growth in room nights and experiences booked due to the easing of COVID-19 related restrictions that were in place in 2021.

Long-term stays and non-urban travel are still important thanks to remote and hybrid working, says Airbnb. Nights booked for long-term stays remained stable compared to a year ago at 20% of total gross nights booked, with the majority occurring in EMEA (Europe, Middle East and Africa) and North America .

City and cross-border travel, which accounted for the vast majority of the company’s business before the pandemic, showed an upturn. Cross-border travel to all regions is up 58% year-on-year, while high-density city nights booked are up 27% over the same period – but none have returned to normal levels. before the pandemic.

Sales and marketing expenses for the three months ending September 30, 2022 totaled $380 million, compared to $290 million year-over-year.

On a call with analysts, Airbnb co-founder and CEO Brian Chesky said he expects more long-term and cross-border stays as people travel domestically and internationally for work at home. distance and hybrid.

“Flexibility is here to stay,” says Chesky. “I think more people will be working remotely or in a hybrid way five years from now than they are today.”

Airbnb is seeing a growing number of hosts due to a slowing economy. Much like during the Great Recession, people have turned to Airbnb as a form of supplemental income, Chesky says.

“The third quarter was another record quarter despite macro headwinds,” he says.

The third quarter 2022 results “demonstrated that Airbnb continues to drive growth and profitability at scale, and even with the macroeconomic certainty, we believe we are well positioned for the path forward.”

The company adds that it is updating its host pricing tools and search algorithm to make the platform more competitive.

In June, Airbnb launched the “$10,000,000 OMG!” Funds” to fund 100 unique property ideas – the goal being to help designers, architects and do-it-yourselfers bring their ideas to life and eventually host the properties on Airbnb.

Airbnb announced in May that it was activation of “split stays” as part of a larger platform update.

Correction: Sales and marketing figures have been updated