Airbnb files long-awaited IPO

Airbnb on Monday deposit for a $ 1 billion initial public offering, expected to be priced in December.

Financial: Airbnb Reports Net Loss of Nearly $ 700 Million on $ 2.5 Billion in Revenue for First Nine Months of 2020, vs. Net Loss of $ 322 Million on $ 3.7 Billion in Revenue for the period of the previous year. But it is also reporting $ 219 million in profit for the third quarter of 2020, as bookings rebounded.

What Airbnb says:

“In early 2020, as COVID-19 disrupted travel around the world, Airbnb’s business declined dramatically. But within two months, our business model started to rebound even with limited international travel, demonstrating its resilience. People wanted to get out of their homes and yearned to travel, but they didn’t want to go far or be in crowded hotel lobbies. Domestic travel quickly rebounded on Airbnb around the world as millions of customers traveled closer to home. Stays longer than a few days started to increase as work-from-home became work-from-home on Airbnb. We believe the lines between travel and living are blurring, and the global pandemic has accelerated the ability to live anywhere.

The company also provided more granular details of what he says is the impact of the pandemic on his business:

Source: Airbnb S-1 repository

Investors: Airbnb has raised about $ 6.4 billion from venture capital and private equity firms. It was valued at $ 31 billion in a round in late 2017, but only $ 18 billion when it got an emergency equity and debt roundtable at the start of the pandemic.

  • The main shareholders are Silver Lake, Sequoia Capital, Sixth Street, Founders Fund, Accel, DST Global and Greystar Real Estate.
  • The company had about $ 4.5 billion in cash on its balance sheet, albeit at the end of September.

Details of the IPO: Airbnb plans to list on Nasdaq under the symbol ABNB, with Morgan Stanley and Goldman Sachs as the lead.

  • It is not known if Airbnb plans to raise around $ 1 billion, or if this is just a fictitious figure that will be fleshed out further in a modified case.

Upcoming attractions: Affirm, Roblox and Wish are other big tech companies that are expected to file their IPO application this week.

Go further: Airbnb IPO to crown resilient rebound

Comments are closed.