Airbnb Posts First Quarter 2024 Results

According to the Airbnb website, Airbnb experienced a robust beginning to 2024. In Q1, Nights and Experiences Booked increased to 133 million. Revenue grew by 18 percent year-over-year to reach $2.1 billion. The net income for Q1 was $264 million, marking the most profitable first quarter in the company’s history. Adjusted EBITDA was $424 million, reflecting a 20 percent Adjusted EBITDA Margin, up by 6 percentage points from the previous year.

The company made notable strides in its strategic priorities during Q1 and plans to continue investing in these areas:

Making Hosting Mainstream: Airbnb’s focus remains on making hosting as prevalent as traveling on its platform. This involves raising awareness about the benefits of hosting, providing enhanced tools for hosts, and assisting them in delivering higher quality stays. To ensure quality, Airbnb removed thousands of listings in Q1 that did not meet guest expectations. Excluding these removals, active listings (excluding experiences) increased by 17% year-over-year, with double-digit supply growth across all regions. The company aims to continue raising awareness about hosting and improving the host experience throughout the year.

Perfecting the Core Service: Over the past few years, Airbnb has implemented hundreds of improvements to enhance reliability, affordability, and overall service for hosts and guests. In November, the introduction of Guest Favorites, a collection of highly-rated homes based on ratings, reviews, and reliability data, marked a significant advancement in reliability. This initiative has already shown positive results, with over 100 million nights booked at Guest Favorite listings. Airbnb will continue efforts to make it easier for guests to find high-quality and affordable stays.

Expanding Beyond the Core: Airbnb continued to invest in less mature markets to unlock more growth. In Q1, gross nights booked in expansion markets grew more than double the rate of core markets on average, although they still represent a minority of total nights booked. The company remains focused on accelerating global growth and building towards the future of Airbnb. Expanding beyond the core business is a multi-year journey, with significant groundwork already laid. Last week, Airbnb introduced Icons—a new category featuring extraordinary experiences hosted by prominent figures in various fields. This marks an important step in showcasing that Airbnb offers more than just accommodations, which will be crucial as the company expands its offerings in the coming years.

Q1 2024 Financial Results

A snapshot of Q1 2024 results:

  • Q1 Revenue: $2.1 billion, up 18% year-over-year. The increase in revenue from $1.8 billion in Q1 2023 to $2.1 billion in Q1 2024 was primarily driven by strong growth in Nights and Experiences Booked, a modest rise in Average Daily Rate (ADR), and the shift of Easter from the second quarter of 2023 to the first quarter of 2024.
  • Q1 Net Income: $264 million, up 126% year-over-year. Net income rose to $264 million in Q1 2024 from $117 million in Q1 2023, mainly due to revenue growth, interest income, and cost management. The net income margin for Q1 2024 was 12%, the highest for a first quarter, compared to 6% in Q1 2023.
  • Q1 Adjusted EBITDA: $424 million, up 62% year-over-year. Adjusted EBITDA grew to $424 million in Q1 2024 from $262 million in Q1 2023, demonstrating the continued strength of the business and disciplined cost management. Adjusted EBITDA Margin was 20% in Q1 2024, compared to 14% in Q1 2023.
  • Q1 Free Cash Flow: $1.9 billion. Net cash provided by operating activities in Q1 2024 was $1.9 billion, up from $1.6 billion in Q1 2023, primarily due to the increase in net income. The trailing twelve-month (TTM) Free Cash Flow was $4.2 billion, representing a Free Cash Flow Margin of 41%.
  • Q1 Share Repurchases: $750 million. Strong cash flow enabled Airbnb to repurchase $750 million of its Class A common stock in Q1 2024. Over the trailing twelve months, share repurchases totaled $2.5 billion, reducing the fully diluted share count from 697 million at the end of Q1 2023 to 677 million at the end of Q1 2024. There is remaining authorization to purchase up to $6 billion of Class A common stock.

Business Highlights

Several positive business highlights contributed to Airbnb’s strong start in 2024:

  • Acceleration in Mobile Downloads: Nights and Experiences Booked in Q1 2024 increased by 9.5% year-over-year, despite a challenging comparison with Q1 2023. Growth in app downloads and usage was particularly encouraging. In the U.S., Airbnb app downloads increased by 60% in Q1 compared to the same period the previous year. Globally, nights booked through the mobile app increased by 21% year-over-year, representing 54% of total nights booked during the quarter, up from 49% in Q1 2023.
  • Unique Positioning for Special Events: In April, over 500,000 guests stayed on Airbnb during the total solar eclipse in North America. Nights stayed on Airbnb along the eclipse’s direct path more than doubled compared to the previous year, with many locations in rural areas without hotels. For the Summer Olympic Games Paris 2024, nights booked for stays during the Olympics dates are over five times higher than they were in Paris the same time the previous year. Germany is experiencing a similar trend for the Euro Cup this summer, with nearly double the number of nights booked compared to the same period the previous year. The increase in supply is helping meet higher demand, with nearly 40% more active listings in Paris in Q1 compared to a year ago. These events demonstrate how Airbnb disperses travel and spreads economic benefits by allowing guests to stay in local neighborhoods where there are no hotels.
  • Strong Supply Growth: In Q1 2024, active listings grew by 15% compared to Q1 2023. Efforts to ensure quality led to the removal of thousands of low-quality listings in Q1. Excluding these quality-driven removals, active listings (excluding experiences) increased by 17% year-over-year. Double-digit supply increases were observed across all regions, with the highest growth in Asia Pacific and Latin America, which also saw the most year-over-year growth in Nights and Experiences Booked. Urban and non-urban supply grew at similar rates year-over-year. The growth in individual and professional hosts remained consistent, with the majority of new listings being exclusive to Airbnb.

Barb is the president of NASTRA and has spent her professional career in hospitality and real estate. After acquiring her first short-term rental in 2018, Barb moved her focus to legal advocacy after she sued the city of Nashville over a permit issue. Over the last three years, she has mentored more than 2,800 new STR hosts and is the Community Leader for Airbnb in Nashville, as well as an Airbnb “Ask a Superhost” Ambassador. Barb has appeared on numerous radio broadcasts, television shows, and podcasts to talk about her love of hosting. She also manages and co-hosts a number of short term rentals across Tennessee and Arkansas. Barb and her husband Pat own a hotel brokerage, development and consulting company. Look for her upcoming podcast series, “Women of Airbnb.”

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