Airbnb revenue jumps 300% in Q2 2021

Airbnb revenue grew 300% year-over-year for the second quarter of 2021 and topped the second quarter of 2019 by 10%.

Reporting its second quarter 2021 financial results, the colocation giant reported revenue of $1.3 billion for the quarter, significantly outpacing second quarter 2020 revenue of $335 million.

Two-year revenue growth increased from 5% in the first quarter of 2021 to 10% in the second quarter of 2021. The company attributes the sequential improvement to continued strength in North America, improvement in EMEA and increase in average daily rates.

Based on Adjusted EBITDA, Airbnb was profitable: Adjusted EBITDA in Q2 2021 was $217 million, compared to a loss of $397 million in Q2 2020 and a loss of $43 million in Q2 2019 .

Adjusted EBITDA margin was 16%, an increase of 20% compared to Q2 2019. Airbnb attributes this improvement to the strength of its revenue recovery as well as an improved cost structure.

“Our business has improved significantly with the rollout of vaccines and the easing of some travel restrictions. Although conditions are not yet normal, they are improving. People’s desire to travel, combined with our spending closely managed, has resulted in a return to positive revenue growth with significant improvement in adjusted EBITDA,” Airbnb co-founder and CEO Brian Chesky said in a call with analysts.

“But here is the most important fact: our business has improved without the recovery of two of our strongest historical segments, urban travel and cross-border travel. We expect the return of city and cross-border travel to be a significant tailwind in the coming quarters. »

Net loss for the quarter was $68 million, an improvement of $507 million from Q2 2020 and $229 million from Q2 2019.

Room nights and experiences booked for the quarter were 83.1 million, up 197% year-over-year and recovering around the same time in 2019.

Gross booking value — defined as nights booked before cancellations and changes — was more than $13 billion for the second quarter of 2021, up 320% year-over-year and 37% year-over-year. compared to the second quarter of 2019.

Airbnb says its number of active listings on the platform increased in the second quarter, with the largest increases in supply in areas where customer demand is highest. Open listings in non-urban destinations in Europe and North America increased by 8% between the first quarter of 2021 and the second quarter of 2021.

The company attributes the growth to its platform refresh in May this year, which simplified the sign-up process for hosts, as well as a marketing campaign touting the benefits of hosting.

Sales and marketing expenses for the second quarter of 2021 increased 175% year over year to $315 million. Excluding the impact of stock-based compensation and acquisition-related impacts, sales and marketing expenses for the quarter increased 164% year-over-year to $292 million.

Airbnb says extended stays, defined as stays of 28 days or more, remained its fastest growing category based on trip length. Overall, nearly 50% of gross nights booked were for stays of at least seven nights in Q2 2021. Short-term stays for the quarter were up nearly 40% from Q1 2021.

Chesky noted that Airbnb’s flexible date feature, which was introduced with more than 100 other platform updates, has had more than 90 million searches for flexible dates since February. He said customers using the feature converted at a higher rate than those who didn’t.

Outlook

Although the pandemic is creating ongoing uncertainty, Airbnb expects third quarter 2021 revenue to be its strongest quarterly revenue and record and to generate the highest dollars and adjusted EBITDA margins of all. weather.

“The world will never go back to the way it was. And that means travel will never go back to the way it was, either,” Chesky said.

“Our only priority in 2021 is to prepare for the next rebound in travel. To do this, we are perfecting the end-to-end experience of our core service. This includes educating the world about hosting, recruiting more hosts, simplifying the guest experience, and providing world-class service.”

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