The US-based rental giant Airbnb posted third quarter (Q3) earnings results on Thursday. It reported a revenue of USD 2.24 Billion, a significant increase of 70% in revenue year-over-year (YoY). The company also mentioned that it has generated 36% more revenue than Q3 2019.
Airbnb also delivered USD 834 Million in revenue, its most profitable quarter due to the travel peak across the globe. Since Q3 2020, its profit has surged 280% while its profit has improved 213% since Q3 2019. The vacation online marketplace posted an adjusted EBITDA of USD 1.1 Billion, surpassing the USD 1 billion milestone for the first time ever. It has more than doubled its EBIDTA since the last year same quarter while tripling the number from USD 319 Million in Q3 2020.
The company delivered 79.7 million night stays, an increase of 29% YoY. However, it was lower than the last quarter. Airbnb’s CFO Dave Stephenson said on a call with analysts that even though the situation has not reached the pre-COVID level, the company has witnessed the highest-ever revenue and net income in Q3 2021. For the next quarter, Airbnb expects its revenue between USD 1.39 Billion and USD 1.48 Billion.
In a letter to shareholders, Airbnb said the “world is undergoing a revolution in how we live and work. Technologies like Zoom make it possible to work from home. Airbnb makes it possible to work from any home. This newfound flexibility is bringing about a revolution in how we travel. Millions of people can now take more frequent trips, take longer trips, travel to more locations, and even live anywhere on Airbnb.” It mentioned in the letter that in May 2021 it had released 100 upgrades to improve the Airbnb experience. The company also said it will be adding over 50 upgrades to make hosting easier for its customers.
The COVID-19 pandemic disrupted the hotel industry across the globe. Various hotel chains including rental platforms were slumped with millions of dollars in loss. However, the beginning of 2021 did spread the positive sentiment in the market owing to acceleration in vaccination drive and decreasing COVID-19 cases. The recovery from the pandemic encouraged various people to book the longing travel plans.
Airbnb said that its long-term stay accounted for 20% of the gross nights booked in this quarter. Its cross-border travel surged 33% in Q3 2021. The company’s largest revenue share came from North America, while Asia Pacific’s night and experiences bookings were comparatively less than Q3 2019 due to cross-border travel restrictions. In Latin America, Airbnb’s bookings were up 20% than Q3 2019 while its EMEA’s nights and experiences bookings have reached pre-COVID level booking.
The 13-years old company’s Average Daily Rate (ADR) dropped to USD 149 from USD 161 since the last quarter. However, it’s a considerable increase of 15% since Q3 2020. “Looking to 2022, vaccination progress and the recovery of international travel in Q4 2021 will be key themes for growth heading into the new year,” Airbnb wrote.
Helping Afghans
In August 2021, Airbnb provided temporary housing to 20,000 Afghans worldwide. This was done by providing them discounts or free stays. The company says this was not possible without Airbnb Hosts and its non-profit resettlement partner organizations. The Taliban took over Afghanistan this year in August after the US troops left the country. This forced the citizens to leave the country. Until now, hundreds of 500,000 Afghans have fled the country.
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