Airbnb releases second quarter 2024 financial results: strong momentum in the second quarter, with the number of active listings worldwide exceeding 8 million
2024-08-07
한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina
Airbnb releases second quarter 2024 financial results: strong momentum in the second quarter, with the number of active listings worldwide exceeding 8 million
Airbnb's revenue in the second quarter of 2024 reached US$2.75 billion, an increase of 11% year-on-year.In the second quarter of 2024, Airbnb's global active listings exceeded 8 million, thanks to synchronized growth in different regions and market types around the world.Airbnb has become the accommodation choice for global travelers during major events. During the 2024 Paris Summer Olympics, the number of booked room nights in the Paris region in the second quarter more than doubled compared to the same period last year.The number of "first-time bookers" on Airbnb's platform continues to increase, and young user groups have become the main growth driver.Airbnb generated $4.3 billion in free cash flow over the past 12 months, a record high.
“Airbnb had a strong second quarter, ending the quarter with more than $1 billion in free cash flow and more than 8 million active listings worldwide. I’m proud of the results our platform continues to deliver for our global community of hosts and users.”
Edit Search Image
2024 Second Quarter Results Overview
Airbnb has strong momentum in the second quarter of 2024. Revenue in the second quarter increased 11% year-on-year to $2.75 billion. Net income in the second quarter reached $555 million, with a net profit margin of 20%. Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") were $894 million, up 9% year-on-year, and the adjusted EBITDA margin reached 33%. Free cash flow in the second quarter was $1 billion. In the past 12 months, Airbnb generated $4.3 billion in free cash flow, a record high.
In the second quarter of 2024, we made significant progress on the following strategic priorities:
Making being an Airbnb host mainstream: Last year, Airbnb stated that it would strive to make being an Airbnb host as mainstream as using Airbnb to travel. To achieve this goal, Airbnb continues to work hard to help the public understand the benefits and rewards of being an Airbnb host, and provide hosts with a variety of tools to make this process smoother. In the second quarter of 2024, Airbnb had more than 8 million active listings worldwide, thanks to the simultaneous growth of different regions and market types around the world. While the supply of Airbnb's platform continues to grow, Airbnb is committed to ensuring the quality of listings. Since the comprehensive update of the listing quality certification system in April 2023, Airbnb has removed more than 200,000 listings that failed to meet guests' expectations in order to continue to provide guests with a high-quality accommodation experience.
Striving for excellence and improving core services: Airbnb continues to be committed to providing hosts and guests with a more reliable, secure and value-for-money experience. In recent years, Airbnb has launched hundreds of new features and product upgrades. In terms of improving reliability, Airbnb has launched blockbuster features such as "Guest Recommendations" to allow guests to easily find reputable listings. Since its launch, the number of room nights booked for "Guest Recommendations" listings has exceeded 150 million. In addition, a series of product feature upgrades launched by Airbnb have effectively improved product availability and booking conversion rates.
Innovation never stops, and efforts are focused on writing a new chapter: Airbnb continues to invest in markets with low penetration rates to drive growth. In the second quarter, Airbnb's room night bookings in emerging markets grew significantly faster than the average level of Airbnb's core markets, calculated by source country. Airbnb will continue to build a global development blueprint, including investing in more localized products and marketing strategies, and continue to focus on accelerating growth in more markets around the world throughout 2024 and in the future. In May of this year, Airbnb launched a new feature category "Ace" to bring extraordinary experiences to travelers. "Ace" marks an important step for Airbnb in opening a new chapter, helping people understand that Airbnb is not just a platform for providing travel accommodation, and it has become an important step in Airbnb's future product and service innovation and expansion.
Financial performance in the second quarter of 2024
Revenue in the second quarter of 2024 was $2.75 billion, up 11% year-over-year. Thanks to Airbnb's solid growth in accommodation and experience bookings and a small increase in average room rate ("ADR"), the company's revenue increased from $2.5 billion in the second quarter of 2023 to $2.75 billion in the second quarter of 2024.
Net profit in the second quarter of 2024 reached $555 million, with a net profit margin of 20%. Net profit in the second quarter of 2024 fell to $555 million from $650 million in the same period of 2023, mainly due to the company's adjustment of the valuation of deferred tax assets in 2023 and the partial use of these assets in 2024, which led to an increase in income taxes. In the second quarter of 2024, Airbnb's net profit margin reached 20%, down from 26% in the second quarter of 2023.
Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") for the second quarter of 2024 were $894 million, up 9% year-over-year. Adjusted EBITDA for the second quarter of 2024 was $894 million, compared to $819 million in the second quarter of 2023, demonstrating Airbnb's long-term strength in strong business performance and disciplined cost structure management. Adjusted EBITDA margin for the second quarter of 2024 was 33%, the same as the same period in 2023.
Free cash flow reached $1 billion in the second quarter of 2024, a year-on-year increase of 16%. Net cash flow from operating activities in the second quarter of 2024 increased from $909 million in the same period of 2023 to $1.1 billion. The year-on-year increase in free cash flow was mainly due to Airbnb's continued strong business performance. Airbnb's free cash flow ("TTM FCF") in the past 12 months reached $4.3 billion, and the 12-month free cash flow margin ("FCF Margin") reached 41%.
$749 million in share repurchases in the second quarter of 2024. Airbnb's strong cash flow enabled the company to repurchase $749 million of Class A common stock in the second quarter of 2024. Share repurchases totaled $2.75 billion over the past 12 months, which enabled Airbnb to reduce its fully diluted share count from 686 million shares at the end of the second quarter of 2023 to 673 million shares at the end of the second quarter of 2024. Airbnb currently has remaining authorization to purchase up to $5.25 billion of Class A common stock.
Second Quarter 2024 Business Highlights
The strong business performance in the second quarter of 2024 was driven by the following:
Airbnb's mobile app bookings continue to grow. In the second quarter of 2024, Airbnb's accommodation and experience bookings increased by 9% year-on-year, maintaining steady growth on the basis of the first quarter of 2024. As more and more travelers plan their trips and book accommodations on their smartphones, we continue to optimize our mobile website pages to encourage users to download and use our mobile app. This initiative has shown results. In the second quarter of 2024, global downloads of Airbnb's mobile app increased by 25% year-on-year, with particularly significant growth in the United States. In addition, in the second quarter of 2024, the number of room nights booked through Airbnb's mobile app increased by 19% year-on-year, accounting for 55% of the total room nights booked in this quarter, an increase from 50% in the second quarter of 2023. In addition to the good performance of mobile app downloads and bookings, the number of "first-time bookers" on the Airbnb platform is also continuing to increase, and the younger user group has become the main growth driver.
Airbnb has become a traveler's choice of accommodation during major events. The week of July 4th became Airbnb's highest-grossing week in North America ever. More and more guests are choosing to stay in Airbnb homes during major holidays and major events. In Europe, major sporting events have driven significant growth in bookings. During the 2024 Paris Summer Olympics, the number of nights booked in the Paris region in the second quarter increased by more than two times compared to the same period last year. To meet the growth in demand from guests, we continue to increase our investment in the supply side of listings. As of the second quarter of 2024, the number of active listings in the Paris region increased by 37% year-on-year. Throughout the Olympic cycle, more than 400,000 guests chose to stay in Airbnb listings in the Paris region. At the same time, during the German European Cup, the number of nights booked in cities hosting the competition increased by an average of more than 20% compared to the same period last year, and the growth in some cities even exceeded 50%.
The quality of listings on Airbnb is constantly improving. While the supply of listings on Airbnb has grown significantly, we have maintained our demand for listing quality. We believe that higher quality listings will lead more travelers to choose Airbnb, thereby driving greater growth in the platform's supply. To achieve this goal, we are advancing two important initiatives. First, we are removing listings from Airbnb that do not meet guests' expectations. Our updated listing quality certification system better evaluates listing quality in a more targeted and holistic way. Since April 2023, Airbnb has removed more than 200,000 listings that did not meet guests' expectations. Second, we have launched a series of product features such as "Guest Recommendation" to show users the top 1%, 5%, and 10% of listings that meet the filter criteria. These new product features help guests more easily find the highest quality listings on Airbnb. Since the product launch, "Guest Recommendation" listings have booked more than 150 million room nights. In the second quarter of 2024, the number of active listings operated by "Superhosts" on Airbnb's platform increased by 26% year-on-year.
